<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ____________ to ____________
Commission File Number 0-17557
Brauvin High Yield Fund L.P.
(Exact name of registrant as specified in its charter)
Delaware 36-3569428
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No .
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
INDEX
Page
PART I Financial Information
Item 1. Financial Statements . . . . . . . . . . . . . . . . . . 3
Balance Sheets at March 31, 1996 and
December 31, 1995. . . . . . . . . . . . . . . . . . . . 4
Statements of Operations for the three months
ended March 31, 1996 and 1995. . . . . . . . . . . . . . 5
Statements of Partners' Capital for the period
January 1, 1995 to March 31, 1996. . . . . . . . . . . . 6
Statements of Cash Flows for the three months
ended March 31, 1996 and 1995. . . . . . . . . . . . . . 7
Notes to Financial Statements. . . . . . . . . . . . . . 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations. . . . . . 18
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . 21
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . 21
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . 21
Item 4. Submissions of Matters to a Vote of
Security Holders . . . . . . . . . . . . . . . . . . . . 21
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . 21
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . 22
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
Except for the December 31, 1995 Balance Sheet, the following Balance
Sheet as of March 31, 1996, Statements of Operations for the three months
ended March 31, 1996 and 1995, Statements of Partners' Capital for the period
January 1, 1995 to March 31, 1996 and Statements of Cash Flows for the three
months ended March 31, 1996 and 1995 for Brauvin High Yield Fund L.P. (the
"Partnership") are unaudited and have not been examined by independent public
accountants but reflect, in the opinion of the management, all adjustments
necessary to present fairly the information required. All such adjustments
are of a normal recurring nature.
These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Partnership's 1995
Annual Report on Form 10-K.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
BALANCE SHEETS
March 31, December 31,
1996 1995
ASSETS
Investment in real estate, at cost:
Land $ 5,768,768 $ 5,768,768
Buildings 13,554,207 13,554,207
19,322,975 19,322,975
Less: accumulated depreciation (2,948,781) (2,852,122)
Net investment in real estate 16,374,194 16,470,853
Investment in Joint Ventures (Note 5):
Brauvin High Yield Venture 33,365 33,746
Brauvin Funds Joint Venture 2,467,238 2,472,647
Brauvin Gwinnett County Venture 555,789 557,389
Cash and cash equivalents 1,358,899 1,363,085
Due from affiliates -- 358
Prepaid offering costs 15,703 16,763
Other assets 18,568 17,759
Total Assets $20,823,756 $20,932,600
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and accrued expenses $ 10,990 $ 10,443
Rent received in advance 82,336 86,903
Total Liabilities 93,326 97,346
PARTNERS' CAPITAL:
General Partners 121,077 124,295
Interest Holders 20,609,353 20,710,959
Total Partners' Capital 20,730,430 20,835,254
Total Liabilities and Partners' Capital $20,823,756 $20,932,600
See accompanying notes to financial statements.
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BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
For the Three Months Ended March 31,
1996 1995
INCOME:
Rental $584,877 $600,423
Interest 19,453 8,666
Other 97 224
Total income 604,427 609,313
EXPENSES:
General and administrative 76,653 26,030
Management fees 6,133 6,028
Depreciation 96,659 96,658
Total expenses 179,445 128,716
Income before equity interest in
joint ventures 424,982 480,597
Equity Interest in Joint Venture's
Net Income:
Brauvin High Yield Venture 1,419 1,414
Brauvin Funds Joint Venture 72,991 72,970
Brauvin Gwinnett County Venture 12,440 11,533
Net income $511,832 $566,514
Net income allocated to the General
Partners $ 10,237 $ 11,330
Net income allocated to the Interest
Holders $501,595 $555,184
Net income per Unit outstanding (a) $0.19 $0.21
(a) Net income per Unit was based on the average Units outstanding during
the period since they were of varying dollar amounts and percentages based
upon the dates Interest Holders were admitted to the Partnership and
additional Units were purchased through the distribution reinvestment plan
(the "Plan").
See accompanying notes to financial statements
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
STATEMENTS OF PARTNERS' CAPITAL
For the Period January 1, 1995 to March 31, 1996
General Interest
Partners Holders* Total
Balance, January 1, 1995 $129,815 $20,631,058 $20,760,873
Contributions, net -- 399,001 399,001
Selling commissions and
other offering costs (Note 1) -- (39,045) (39,045)
Net income 47,349 2,320,094 2,367,443
Cash distributions (52,869) (2,600,149) (2,653,018)
Balance, December 31, 1995 124,295 20,710,959 20,835,254
Contributions, net -- 65,998 65,998
Selling commissions and
other offering costs (Note 1) -- (10,070) (10,070)
Net income 10,237 501,595 511,832
Cash distributions (13,455) (659,129) (672,584)
Balance, March 31, 1996 $121,077 $20,609,353 $20,730,430
* Total Units outstanding at March 31, 1996 and December 31, 1995 were
2,627,503 and 2,620,903, respectively. Cash distributions to Interest
Holders per Unit were $0.25 and $1.00 for the three months ended March 31,
1996 and the year ended December 31, 1995, respectively. Cash distributions
to Interest Holders per Unit are based on the average Units outstanding
during the year since they were of varying dollar amounts and percentages
based upon the dates Interest Holders were admitted to the Partnership and
additional Units were purchased through the Plan.
See accompanying notes to financial statements.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31,
1996 1995
Cash flows from operating activities:
Net income $ 511,832 $ 566,514
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 96,659 96,658
Equity interest in Brauvin High Yield
Venture's net income (1,419) (1,414)
Equity interest in Brauvin Funds Joint
Venture's net income (72,991) (72,970)
Equity interest in Brauvin Gwinnett County
Venture's net income (12,440) (11,533)
Repayment from affiliates 358 10,959
(Increase) decrease in other assets (809) 5,293
Increase in accounts payable
and accrued expenses 547 25,444
Decrease in due to affiliates -- (2,859)
Decrease in rent received in advance (4,567) (191,727)
Net cash provided by operating activities 517,170 424,365
Cash flows from investing activities:
Distributions from Brauvin High Yield Venture 1,800 1,150
Distributions from Brauvin Funds Joint Venture 78,400 80,850
Distributions from Brauvin Gwinnett
County Venture 14,040 18,720
Cash provided by investing activities 94,240 100,720
Cash flows from financing activities:
Sale of Units, net of liquidations, selling
commissions and other offering costs 56,988 92,514
Cash distributions to General Partners (13,455) (13,249)
Cash distributions to Interest Holders (659,129) (649,222)
Net cash used in financing activities (615,596) (569,957)
Net decrease in cash and cash
equivalents (4,186) (44,872)
Cash and cash equivalents at beginning
of period 1,363,085 1,016,066
Cash and cash equivalents at end of period $1,358,899 $ 971,194
See accompanying notes to financial statements.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
BRAUVIN HIGH YIELD FUND L.P. (the "Partnership") is a Delaware
limited partnership organized for the purpose of acquiring debt-free
ownership of existing, free-standing, income-producing retail, office and
industrial real estate properties predominantly subject to "triple-net"
leases. The General Partners of the Partnership are Brauvin Realty Advisors,
Inc., Jerome J. Brault, Cezar M. Froelich and David M. Strosberg. Brauvin
Realty Advisors, Inc. is owned primarily by Messrs. Brault (beneficially)
(44%) and Froelich (44%). Brauvin Securities, Inc., an affiliate of the
General Partners, was the selling agent of the Partnership. The Partnership
is managed by an affiliate of the General Partners. The Partnership was
formed on January 6, 1987 and filed a Registration Statement on Form S-11
with the Securities and Exchange Commission which became effective on
September 4, 1987. The sale of the minimum of $1,200,000 of depository units
representing beneficial assignments of limited partnership interests of the
Partnership (the "Units") necessary for the Partnership to commence
operations was achieved on November 18, 1987. The Partnership's offering
closed on May 19, 1988. A total of $25,000,000 of Units were subscribed for
and issued between September 4, 1987 and May 19, 1988, pursuant to the
Partnership's public offering. Through March 31, 1996 and December 31, 1995,
the Partnership had sold $27,922,102 and $27,816,104, of Units, respectively.
These totals include $2,922,102, and $2,816,104 of Units, respectively,
purchased by Interest Holders who utilized their distributions of Operating
Cash Flow to purchase additional Units through the distribution reinvestment
plan (the "Plan"). Units valued at $1,647,070 and $1,607,070 have been
purchased by the Partnership from Interest Holders liquidating their
investment in the Partnership and have been retired as of March 31, 1996 and
December 31, 1995, respectively. As of March 31, 1996 the Participants have
acquired Units under the Plan which approximate 10% of total Units
outstanding.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
The Partnership has acquired the land and buildings underlying 20
Taco Bell restaurants, 11 Ponderosa restaurants and two Children's
World Learning Centers. The Partnership also acquired 1%, 49% and
23.4% equity interests in three joint ventures with three entities
affiliated with the Partnership. These ventures own the land and
buildings underlying six Ponderosa restaurants, a Scandinavian
Health Spa and a CompUSA store, respectively.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Management's Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from these estimates.
Accounting Method
The accompanying financial statements have been prepared using
the accrual method of accounting.
Federal Income Taxes
Under the provisions of the Internal Revenue Code, the
Partnership's income and losses are reportable by the partners on
their respective income tax returns. Accordingly, no provision is
made for Federal income taxes in the financial statements.
However, in certain instances, the Partnership has been required
under applicable state law to remit directly to the tax authorities
amounts representing withholding from distributions paid to
partners.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Investment in Real Estate
The operating properties acquired by the Partnership are stated
at cost including acquisition costs. Depreciation expense is
computed on a straight-line basis over approximately 35 years.
In 1995, the Partnership adopted Statement of Financial
Accounting Standards No. 121, "Accounting for the Impairment of
Long-Lived Assets" (SFAS 121). In conjunction with the adoption of
SFAS 121, the Partnership performed an analysis of its long-lived
assets, and the Partnership's management determined that there were
no events or changes in circumstances that indicated that the
carrying amount of the assets may not be recoverable. Accordingly,
no impairment loss has been recorded in the accompanying financial
statements.
Investment in Joint Ventures
The Partnership owns a 1% equity interest in Brauvin High Yield
Venture, which owns the land and building underlying six Ponderosa
restaurants; a 49% equity interest in Brauvin Funds Joint Venture,
which owns the land and building underlying a Scandinavian Health
Spa; and a 23.4% equity interest in Brauvin Gwinnett County
Venture, which owns the land and building underlying a CompUSA
store. The accompanying financial statements include the
investments in Brauvin High Yield Venture, Brauvin Funds Joint
Venture and Brauvin Gwinnett County Venture using the equity method
of accounting.
Organization Costs and Prepaid Offering Costs
Organization costs represent costs incurred in connection with
the organization and formation of the Partnership. Organization
costs were amortized over a period of five years using the
straight-line method.
The General Partners have guaranteed payment of any organization
and offering costs that exceed defined percentages of the gross
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
proceeds. Subsequently, gross proceeds of the offering are
expected to increase due to the purchase of additional Units
through the Plan and the prepaid offering costs will be transferred
to offering costs and treated as a reduction in Partners' Capital.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid debt
instruments with an original maturity within three months of
purchase.
Estimated Fair Value of Financial Instruments
Disclosure of the estimated fair value of financial instruments
is made in accordance with the requirements of Statement of
Financial Accounting Standards No. 107, "Disclosures About Fair
Value of Financial Instruments." The estimated fair value amounts
have been determined by using available market information and
appropriate valuation methodologies. However, considerable
judgement is necessarily required in interpreting market data to
develop estimates of fair value.
The fair value estimates presented herein are based on
information available to management as of March 31, 1996 and
December 31, 1995, but may not necessarily be indicative of the
amounts that the Partnership could realize in a current market
exchange. The use of different assumptions and/or estimation
methodologies may have a material effect on the estimated fair
value amounts. Although management is not aware of any factors
that would significantly affect the estimated fair value amounts,
such amounts have not been comprehensively revalued for purposes of
these financial statements since that date, and current estimates
of fair value may differ significantly from amounts presented
herein.
The carrying amounts of the following items are a reasonable
estimate of fair value: cash and cash equivalents; due from
affiliates; accounts payable and accrued expenses; and rent
received in advance.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(2) PARTNERSHIP AGREEMENT
Distributions
All Operating Cash Flow, as defined in the Partnership Agreement
(the "Agreement"), shall be distributed: (a) first, to the
Interest Holders until the Interest Holders receive an amount equal
to their 10% Current Preferred Return, as such term is defined in
the Agreement; and (b) thereafter, any remaining amounts will be
distributed 98% to the Interest Holders and 2% to the General
Partners.
The net proceeds of a sale or refinancing of a Partnership
property shall be distributed as follows:
first, to the Interest Holders until each Interest Holder has
been paid an amount equal to the 10% Cumulative Preferred
Return, as defined in the Agreement;
second, to the Interest Holders until each Interest Holder has
been paid an amount equal to his Adjusted Investment, as
defined in the Agreement;
third, to the General Partners until they have been paid an
amount equal to a 2% preferred return; and
fourth, 95% of any remaining Net Sale or Refinancing Proceeds,
as such term is defined in the Agreement, to the Interest
Holders and the remaining 5% to the General Partners.
Profits and Losses
Net profits and losses from operations of the Partnership
[computed without regard to any allowance for depreciation or cost
recovery deductions under the Internal Revenue Code of 1986, as
amended (the "Code")] for each taxable year of the Partnership
shall be allocated 98% to the Interest Holders and 2% to the
General Partners. Notwithstanding the foregoing, all depreciation
and cost recovery deductions allowed under the Code shall be
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
allocated 2% to the General Partners and 98% to the Taxable
Interest Holders, as defined in the Agreement.
The net profit of the Partnership from any sale or other
disposition of a Partnership property shall be allocated (with
ordinary income being allocated first) as follows: (a) first, an
amount equal to the aggregate deficit balances of the Partners'
Capital Accounts, as such term is defined in the Agreement, shall
be allocated to each Partner who or which has a deficit Capital
Account balance in the same ratio as the deficit balance of such
Partner's Capital Account bears to the aggregate of the deficit
balances of all Partners' Capital Accounts; (b) second, to the
Interest Holders until the Interest Holders have been allocated
profits equal to their 10% Cumulative Preferred Return; (c) third,
to the Interest Holders until the Interest Holders have been
allocated an amount of profit equal to the amount of their Adjusted
Investment; (d) fourth, to the General Partners until such time as
they have been allocated profits equal to a 2% preferred return;
and (e) thereafter, 95% to the Interest Holders and 5% to the
General Partners. The net loss of the Partnership from any sale or
other disposition of a Partnership property shall be allocated as
follows: (a) first, an amount equal to the aggregate positive
balances in the Partners' Capital Accounts, to each Partner in the
same ratio as the positive balance in such Partner's Capital
Account bears to the aggregate of all Partners' positive Capital
Accounts balances; and(b) thereafter, 98% to the Interest Holders
and 2% to the General Partners.
(3) TRANSACTIONS WITH RELATED PARTIES
An affiliate of the General Partners manages the Partnership's
real estate properties for an annual management fee equal to up to
1% of gross revenues derived from the properties. The property
management fee is subordinated, annually, to receipt by the
Interest Holders of an annual 10% non-cumulative, non-compounded
return on Adjusted Investment (as defined).
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
The Partnership pays affiliates of the General Partners selling
commissions of 8-1/2% of the capital contributions received for
Units sold by the affiliates.
An affiliate of one of the General Partners provides securities
and real estate counsel to the Partnership.
Fees, commissions and other expenses paid or payable to the
General Partners or its affiliates for the three months ended March
31, 1996 and 1995 were as follows:
1996 1995
Selling commissions $9,010 $ 8,594
Management fees 6,133 6,028
Reimbursable operating
expenses 21,600 18,000
Legal fees 326 --
(4) WORKING CAPITAL RESERVES
The Partnership set aside 1% of the gross proceeds of its
Offering as a working capital reserve. At any time two years
subsequent to the termination of the Partnership's offering (May
19, 1990), it became permissible to reduce the working capital
reserve to an amount equal to not less than 1/2% of the proceeds of
the Offering ($125,000) if the General Partners believed such
reduction to be in the best interests of the Partnership and the
Interest Holders. As a result thereof, $125,000 was paid to an
affiliate of the General Partners in the fourth quarter of 1990 as
an additional Acquisition Fee and $125,000 remains in reserve.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
(5) EQUITY INVESTMENTS
The Partnership owns equity interests in the Brauvin High Yield
Venture, Brauvin Funds Joint Venture and Brauvin Gwinnett County
Venture and reports its investments on the equity method. The
following are condensed financial statements for the Brauvin High
Yield Venture, Brauvin Funds Joint Venture and Brauvin Gwinnett
County Venture:
BRAUVIN HIGH YIELD VENTURE
March 31, December 31,
1996 1995
Land and buildings, net $5,133,021 $5,163,083
Other assets 13,826 21,792
$5,146,847 $5,184,875
Liabilities $ 5,213 $ 5,126
Partners' capital 5,141,634 5,179,749
$5,146,847 $5,184,875
For the Three Months Ended March 31,
1996 1995
Rental and other income $175,907 $174,607
Expenses:
Depreciation 30,063 30,063
Management fees 1,874 1,723
Operating and
Administrative 2,086 1,400
34,023 33,186
Net income $141,884 $141,421
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
BRAUVIN FUNDS JOINT VENTURE
March 31, December 31,
1996 1995
Land and buildings, net $4,788,976 $4,816,500
Other assets 299,742 284,969
$5,088,718 $5,101,469
Liabilities $ 292 $ 2,004
Partners' capital 5,088,426 5,099,465
$5,088,718 $5,101,469
For the Three Months Ended March 31,
1996 1995
Rental and other income $178,679 $179,019
Expenses:
Depreciation 27,524 27,524
Management fees 1,693 1,704
Operating and
Administrative 501 873
29,718 30,101
Net income $148,961 $148,918
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINUED
BRAUVIN GWINNETT COUNTY VENTURE
March 31, December 31,
1996 1995
Land and buildings, net $2,365,072 $2,376,510
Other assets 46,170 41,567
$2,411,242 $2,418,077
Liabilities $ 22,702 $ 22,702
Partners' capital 2,388,540 2,395,375
$2,411,242 $2,418,077
For the Three Months Ended March 31,
1996 1995
Rental and other income $65,225 $61,327
Expenses:
Depreciation 11,438 11,438
Management fees 622 602
12,060 12,040
Net income $53,165 $49,287
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Liquidity and Capital Resources
The Partnership commenced an offering to the public on September
4, 1987 of 1,500,000 Units which was subsequently increased to
2,500,000 Units. The offering closed on May 19, 1988 after 2,500,000
Units were sold. The Partnership purchased the land and buildings
underlying seven Taco Bell restaurants in 1987. In 1988, the
Partnership purchased 13 Taco Bell restaurants, nine Ponderosa
restaurants and an interest in a joint venture which purchased nine
Ponderosa restaurants. In 1989, the Partnership purchased the land
and building underlying a Ponderosa restaurant, an interest in a
joint venture which purchased a Scandinavian Health Spa, the land and
buildings underlying two Children's World Learning Centers and the
land and building underlying an additional Ponderosa restaurant. In
1993, the Partnership purchased a 23.4% interest in a joint venture
which purchased a CompUSA store.
The Partnership raised $25,000,000 through its initial offering
and an additional $2,922,102 as of March 31, 1996, through Units
purchased by certain Interest Holders investing their distributions
of Operating Cash Flow in additional Units through the distribution
reinvestment plan (the "Plan"). As of March 31, 1996, Units valued at
$1,647,070 have been purchased by the Partnership from Interest
Holders liquidating their original investment and retired. The
Partnership has no funds available to purchase additional property,
excluding those raised through the Plan.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
Below is a table summarizing the historical data for distribution
rates per annum:
Distribution
Date 1996 1995 1994 1993 1992 1991
February 15 10.00% 10.00% 10.00% 10.00% 10.00% 9.50%
May 15 10.00 10.00 10.00 10.00 10.00 9.625
August 15 10.00 10.00 10.00 10.25 9.75
November 15(a) 10.00 10.50 10.50 10.25 9.75
(a) The November 15, 1992, 1993 and 1994 quarterly distributions
were made at a rate of 10% per annum and a second bonus
distribution was made at a rate of 0.25%, 0.50% and 0.50%,
respectively, per annum.
Future increases in the Partnership's distributions will largely
depend on increased sales at the Partnership's properties resulting
in additional percentage rent and, to a lesser extent on rental
increases, which will occur due to increases in receipts from certain
leases based upon increases in the Consumer Price Index or scheduled
increases of base rent.
Since the distribution to Limited Partners had been at least 10%
per annum during the three months ended March 31, 1996 and the year
ended December 31, 1995 the General Partners and its affiliates
collected a management fee of $6,133 and $18,643, respectively and
received $13,455 and $39,467 in Operating Cash Flow distributions for
the three months ended March 31, 1996 and the year ended December 31,
1995, respectively. This is anticipated to continue throughout 1996.
Results of Operations - Three Months Ended March 31, 1996 and 1995
Results of operations for the Partnership for the three months
ended March 31, 1996 reflected net income of $511,832 as compared to
$566,514 for the three months ended March 31, 1995 a decrease of
approximately $54,700. The decrease in net income is a result of an
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
increase in expenses and a decrease in the percentage rents.
Total income for the three months ended March 31, 1996 was
$604,427 as compared to $609,313 for the three months ended March 31,
1995, a decrease of approximately $5,000. The decrease in total
income was due to a decrease in rental income of approximately
$15,500 which was a result of a decline in percentage rentals
received from the Partnership's properties. The decrease in rental
income was partially offset by an increase in interest income of
approximately $10,800 as a result of more funds invested during 1996.
Total expenses for the three months ended March 31, 1996 were
$179,445 as compared to $128,716 for the three months ended March 31,
1995, an increase of approximately $50,700. The increase in expenses
was due to an increase in general and administrative expense related
to the Partnership hiring an independent real estate company to
conduct property valuations.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
None.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission Of Matters To a Vote of Security Holders.
None.
ITEM 5. Other Information.
As previously reported, the Partnership has engaged a
nationally known real estate firm to perform a
valuation of the Partnership's properties. The stated
unit value used for both liquidations and the purchase
of new units through the dividend reinvestment program
will change as a result of this valuation. At the time
of the distribution, the valuation had not been
completed. Once the valuation has been completed, the
new stated unit value will be communicated to all
partners.
The General Partners have determined that, for the
current distribution, all investors, including those
who had selected the dividend reinvestment option, will
receive their distributions in the form of a check.
When the unit valuation process has been completed and
the new stated unit value communicated to all partners,
each partner will be able to determine if they wish to
enter or continue in the dividend reinvestment program.
Similarly, the General Partners have determined that
unit liquidations will be temporarily suspended until
the valuation has been completed. At that time,
<PAGE>
pending liquidation requests will be processed
according to the terms of the prospectus and liquidated
at the then current stated unit value.
ITEM 6. Exhibits and Reports On Form 8-K.
Exhibit 27. Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
BY: Brauvin Realty Advisors, Inc.
Corporate General Partner of
Brauvin High Yield Fund L.P.
BY: /s/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of Directors,
President and Chief Executive Officer
DATE: May 15, 1996
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer and Treasurer
DATE: May 15, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,358,899
<SECURITIES> 3,056,392 <F1>
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 19,322,975 <F2>
<DEPRECIATION> 2,948,781
<TOTAL-ASSETS> 20,823,756
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 20,730,430 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,823,756
<SALES> 0
<TOTAL-REVENUES> 604,427 <F4>
<CGS> 0
<TOTAL-COSTS> 179,445 <F5>
<OTHER-EXPENSES> (86,850)<F6>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 511,832
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "SECURITIES" REPRESENTS INVESTMENTS IN JOINT VENTURE
<F2> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<F3> "COMMON" REPRESENTS TOTAL PARTNERS CAPITAL
<F4> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F5> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
<F6> "OTHER EXPENSES" REPRESENTS EQUITY INTEREST IN JOINT
VENTURES' NET INCOME
</FN>
</TABLE>
