SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 1994
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OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934.
For the transition period from to
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Commission file number 0-16797
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IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
Delaware 36-3497345
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Balcor Plaza
4849 Golf Road, Skokie, Illinois 60077-9894
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 677-2900
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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
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IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
BALANCE SHEETS
September 30, 1994 and December 31, 1993
(Unaudited)
ASSETS
1994 1993
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Cash and cash equivalents $ 543,810 $ 606,842
Accounts and accrued interest receivable 76,612 59,264
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620,422 666,106
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Investment in real estate, at cost:
Land 1,340,324 1,340,324
Buildings and improvements 13,629,807 13,561,212
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14,970,131 14,901,536
Less accumulated depreciation 4,589,069 4,128,574
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Investment in real estate, net of
accumulated depreciation 10,381,062 10,772,962
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$ 11,001,484 $ 11,439,068
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LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 30,827 $ 41,427
Due to affiliates 35,561 11,477
Accrued liabilities, principally
real estate taxes 179,637 133,473
Security deposits 45,879 50,030
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Total liabilities 291,904 236,407
Partners' capital (73,994 Limited Partnership
Interests issued and outstanding) 10,709,580 11,202,661
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$ 11,001,484 $ 11,439,068
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The accompanying notes are an integral part of the financial statements.
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
For the nine months ended September 30, 1994 and 1993
(Unaudited)
1994 1993
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Income:
Rental and service $ 1,908,233 $ 1,805,515
Interest on short-term investments 14,796 13,769
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Total income 1,923,029 1,819,284
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Expenses:
Depreciation 460,495 560,498
Property operating 681,182 633,931
Real estate taxes 174,474 195,514
Property management fees 95,162 89,873
Administrative 144,616 114,111
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Total expenses 1,555,929 1,593,927
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Net income $ 367,100 $ 225,357
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Net income allocated to General Partners $ 3,671 $ 2,254
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Net income allocated to Limited Partners $ 363,429 $ 223,103
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Net income per Limited Partnership Interest
(73,994 issued and outstanding) $ 4.91 $ 3.02
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Distributions to Limited Partners $ 860,181 $ 860,181
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Distributions per Limited Partnership
Interest $ 11.63 $ 11.63
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The accompanying notes are an integral part of the financial statements.
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
For the quarters ended September 30, 1994 and 1993
(Unaudited)
1994 1993
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Income:
Rental and service $ 636,774 $ 616,649
Interest on short-term investments 5,039 4,219
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Total income 641,813 620,868
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Expenses:
Depreciation 153,498 186,833
Property operating 245,396 242,273
Real estate taxes 58,722 59,944
Property management fees 31,469 30,612
Administrative 44,094 31,483
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Total expenses 533,179 551,145
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Net income $ 108,634 $ 69,723
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Net income allocated to General Partners $ 1,086 $ 697
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Net income allocated to Limited Partners $ 107,548 $ 69,026
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Net income per Limited Partnership Interest
(73,994 issued and outstanding) $ 1.45 $ 0.93
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Distribution to Limited Partners $ 286,727 $ 286,727
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Distribution per Limited Partnership Interest $ 3.88 $ 3.88
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The accompanying notes are an integral part of the financial statements.
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1994 and 1993
(Unaudited)
1994 1993
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Operating activities:
Net income $ 367,100 $ 225,357
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of properties 460,495 560,498
Net change in:
Accounts and accrued interest
receivable (17,348) 59,737
Accounts payable (10,600) (7,268)
Due to affiliates 24,084 2,139
Security deposits (4,151) (2,271)
Accrued liabilities 46,164 42,457
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Net cash provided by operating activities 865,744 880,649
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Investing activity:
Addition to property (68,595)
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Net cash used in investing activity (68,595)
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Financing activity:
Distributions to Limited Partners (860,181) (860,181)
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Net cash used in financing activity (860,181) (860,181)
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Net change in cash and cash equivalents (63,032) 20,468
Cash and cash equivalents at January 1 606,842 670,486
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Cash and cash equivalents at September 30 $ 543,810 $ 690,954
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The accompanying notes are an integral part of the financial statements.
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policy:
In the opinion of management, all adjustments necessary for a fair presentation
have been made to the accompanying statements for the nine months and quarter
ended September 30, 1994, and all such adjustments are of a normal and
recurring nature.
2. Transactions with Affiliates:
Fees and expenses paid and payable by the Partnership to affiliates during the
nine months and quarter ended September 30, 1994 are:
Paid
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Nine Months Quarter Payable
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Property management fees $52,473 $17,274 $ 6,095
Reimbursement of expenses to
the Managing General Partner,
at cost:
Accounting 20,822 12,320 10,927
Data processing 8,475 4,513 11,324
Investor communications 867 513 411
Legal 639 378 586
Other 2,497 1,477 990
Portfolio 7,775 4,600 5,228
3. Subsequent Event:
In October 1994, the Partnership made a distribution of $286,727 ($3.875 per
Interest) to the holders of Limited Partnership Interests for the third quarter
of 1994.
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS
IDS/Balcor Income Partners (the "Partnership") was formed in 1987 to invest in
and operate income-producing real property. The Partnership raised $18,498,500
through the sale of Limited Partnership Interests and utilized the net proceeds
to acquire the Post Place and Salem Courthouse apartment complexes. The
Partnership continues to operate these two properties.
Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1993 for a more complete understanding of
the Partnership's financial position.
Operations
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Summary of Operations
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The increase in net income for the nine months and quarter ended September 30,
1994 as compared to the same periods in 1993 is primarily due to improved
operations at Post Place Apartments and decreased depreciation expense at Salem
Courthouse. Further discussion of the Partnership's operations is summarized
below.
1994 Compared to 1993
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Rental and service income increased during the nine months and quarter ended
September 30, 1994 as compared to the same periods in 1993 due to increased
rental rates and/or occupancy at Salem Courthouse and Post Place Apartments.
Depreciation expense decreased during the nine months and quarter ended
September 30, 1994 as compared to the same periods in 1993 as personal property
at the Salem Courthouse apartment complex became fully depreciated in 1993.
Property operating expenses increased during the nine months ended September
30, 1994 as compared to the same period in 1993 primarily due to exterior wood
trim repair at Salem Courthouse. This increase was partially offset by a
decrease in landscaping expenses and swimming pool maintenance at Post Place
Apartments.
Due to a decrease in the tax assessment and a refund of 1992 property taxes for
Post Place Apartments received in 1994, real estate tax expense decreased
during the nine months and quarter ended September 30, 1994 as compared to the
same periods in 1993.
Administrative expenses increased during the nine months and quarter ended
September 30, 1994 as compared to the same periods in 1993, primarily as a
result of higher accounting, portfolio management and data processing fees.
Liquidity and Capital Resources
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The cash or near cash position of the Partnership decreased by approximately
$63,000 from December 31, 1993 to September 30, 1994. The Partnership's
operating activities consisted of cash flow generated from property operations,
net of administrative expenses. Cash flow from operating activities along with
Partnership reserves were used to fund an investing activity consisting of the
purchase and installation of a security gate at the Post Place apartment
complex and to fund a financing activity which consisted of distributions to
Limited Partners. The cash or near cash position of the Partnership fluctuates
during each quarter, initially decreasing with the payment of Partnership
distributions to Limited Partners for the previous quarter and then gradually
increasing each month as cash flow is generated from property operations.
In October 1994, the Partnership paid $286,727 ($3.875 per Interest) to Limited
Partners, representing the quarterly distribution for the third quarter of
1994. The quarterly distribution level remained constant compared to the first
and second quarters of 1994, and the General Partners anticipate that this
level will be maintained during the remainder of 1994, although there can be no
assurance in this regard.
On November 4, 1994, The Balcor Company completed the sale of the assets of
Allegiance Realty Group, Inc. to an unaffiliated company, Insignia Allegiance
Management, Inc. ("Insignia"), which is based in Greenville, South Carolina. As
a result of this transaction, Insignia has assumed the management of the
Partnership's properties. This transaction is not expected to result in any
material change to the property management fees paid by the Partnership.
Inflation has several types of potentially conflicting impacts on real estate
investments. Short-term inflation can increase real estate operating costs
which may or may not be recovered through increased rents and/or sales prices,
depending on general or local economic conditions. In the long-term, inflation
can be expected to increase operating costs and replacement costs and may lead
to increased rental revenues and real estate values.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
By: /s/Thomas E. Meador
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Thomas E. Meador
President and Chief Executive Officer
(Principal Executive Officer) of Balcor
Affiliated Partners-87, Inc., the Managing
General Partner
By: /s/Allan Wood
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Allan Wood
Executive Vice President, and Chief
Accounting and Financial Officer (Principal
Accounting and Financial Officer) of Balcor
Affiliated Partners-87, Inc., the Managing
General Partner
Date: November 17, 1994
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