SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- - -----
EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 1995
--------------
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 0-16797
-------
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 36-3497345
- - ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Balcor Plaza
4849 Golf Road, Skokie, Illinois 60077-9894
- - ---------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 677-2900
--------------
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>
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
BALANCE SHEETS
March 31, 1995 and December 31, 1994
(Unaudited)
ASSETS
1995 1994
------------- --------------
Cash and cash equivalents $ 679,658 $ 539,880
Accounts and accrued interest receivable 45,086 59,579
------------- --------------
724,744 599,459
------------- --------------
Investment in real estate, at cost:
Land 1,340,324 1,340,324
Buildings and improvements 13,681,315 13,681,315
------------- --------------
15,021,639 15,021,639
Less accumulated depreciation 4,897,291 4,743,548
------------- --------------
Investment in real estate, net of
accumulated depreciation 10,124,348 10,278,091
------------- --------------
$ 10,849,092 $ 10,877,550
============= ==============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 27,866 $ 47,504
Due to affiliates 30,725 22,208
Accrued liabilities, principally
real estate taxes 179,538 144,730
Security deposits 46,374 44,853
------------- --------------
Total liabilities 284,503 259,295
Partners' capital (73,994 Limited Partnership
Interests issued and outstanding) 10,564,589 10,618,255
------------- --------------
$ 10,849,092 $ 10,877,550
============= ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended March 31, 1995 and 1994
(Unaudited)
1995 1994
------------- --------------
Income:
Rental and service $ 681,837 $ 628,844
Interest on short-term investments 8,155 4,677
------------- --------------
Total income 689,992 633,521
------------- --------------
Expenses:
Depreciation 153,743 153,498
Property operating 172,576 205,734
Real estate taxes 63,140 51,257
Property management fees 33,762 31,490
Administrative 33,710 46,769
------------- --------------
Total expenses 456,931 488,748
------------- --------------
Net income $ 233,061 $ 144,773
============= ==============
Net income allocated to General Partners $ 2,331 $ 1,448
============= ==============
Net income allocated to Limited Partners $ 230,730 $ 143,325
============= ==============
Net income per Limited Partnership Interest
(73,994 issued and outstanding) $ 3.12 $ 1.94
============= ==============
Distribution to Limited Partners $ 286,727 $ 286,727
============= ==============
Distribution per Limited Partnership Interest $ 3.88 $ 3.88
============= ==============
The accompanying notes are an integral part of the financial statements.
<PAGE>
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
for the quarters ended March 31, 1995 and 1994
(Unaudited)
1995 1994
-------------- --------------
Operating activities:
Net income $ 233,061 $ 144,773
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation of properties 153,743 153,498
Net change in:
Accounts and accrued interest
receivable 14,493 51,567
Accounts payable (19,638) (15,426)
Due to affiliates 8,517 23,220
Accrued liabilities 34,808 33,333
Security deposits 1,521 (1,281)
-------------- --------------
Net cash provided by operating activities 426,505 389,684
-------------- --------------
Investing activities:
Improvements to properties (34,437)
-------------
Net cash used in investing activities (34,437)
-------------
Financing activities:
Distribution to Limited Partners (286,727) (286,727)
--------------- -------------
Net cash used in financing activities (286,727) (286,727)
--------------- -------------
Net change in cash and cash equivalents 139,778 68,520
Cash and cash equivalents at January 1 539,880 606,842
--------------- -------------
Cash and cash equivalents at March 31 $ 679,658 $ 675,362
=============== =============
The accompanying notes are an integral part of the financial statements.
<PAGE>
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 quarter ended March 31,
1995, 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
quarter ended March 31, 1995 are:
Paid Payable
----------- --------
Reimbursement of expenses to
the Managing General Partner,
at cost None $30,725
3. Subsequent Event:
In April 1995, the Partnership made a distribution of $286,727 ($3.875 per
Interest) to the holders of Limited Partnership Interests for the first quarter
of 1995.
<PAGE>
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 management's discussion and analysis
contained in the annual report for 1994 for a more complete understanding of
the Partnership's financial position.
Operations
- - ----------
Summary of Operations
- - ---------------------
The increase in net income for the quarter ended March 31, 1995 as compared to
the same period in 1994 is primarily due to improved rental collections at Post
Place Apartments and Salem Courthouse Apartments and lower painting costs at
Salem Courthouse. Further discussion of the Partnership's operations is
summarized below.
1995 Compared to 1994
- - ---------------------
Rental income increased during the quarter ended March 31, 1995 as compared to
the same period in 1994 due to increased rental rates at Salem Courthouse and
Post Place Apartments.
Property operating expenses decreased during the quarter ended March 31, 1995
as compared to the same period in 1994 primarily due to a decrease in painting
costs at Salem Courthouse.
A refund of 1992 taxes was received during the first quarter of 1994 from the
local taxing authorities due to a decrease in the assessed value of the Post
Place Apartments. This refund reduced the first quarter 1994 real estate tax
expense, and as a result, real estate tax expense increased for the quarter
ended March 31, 1995 as compared to the same period in 1994.
Administrative expenses decreased during the quarter ended March 31, 1995 as
compared to the same period in 1994, primarily as a result of lower accounting
and portfolio management fees.
Liquidity and Capital Resources
- - -------------------------------
The cash position of the Partnership increased from December 31, 1994 to March
31, 1995. The Partnership's operating activities consisted of cash flow
generated from property operations, net of administrative expenses. Cash flow
from operating activities was used to fund financing activities consisting of
the quarterly distribution to Limited Partners.
<PAGE>
The Salem Courthouse and Post Place apartment complexes generated positive cash
flow during the quarters ended March 31, 1995 and 1994. The Partnership defines
cash flow generated from its properties as an amount equal to the property's
revenue receipts less property related expenditures. As of March 31, 1995, the
occupancy rates of the Salem Courthouse and Post Place apartment complexes were
94% and 98%, respectively.
In April 1995, the Partnership made a distribution of $286,727 ($3.875 per
Interest) to the holders of Limited Partnership Interests for the first quarter
of 1995. The quarterly distribution level remained constant compared to the
fourth quarter of 1994. Including the April 1995 distribution, investors have
received distributions of Net Cash Receipts of $99.62 per $250 Interest, as
well as certain tax benefits. The General Partners anticipate that the cash
flow from property operations should enable the Partnership to continue making
quarterly distributions to Limited Partners at the current level during 1995
although there can be no assurances in this regard.
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.
<PAGE>
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- - -----------------------------------------
(a) Exhibits:
(4) Form of Subscription Agreement set forth as Exhibit 4.1 to the Registrant's
Registration Statement on Form S-11 dated July 2, 1987 (Registration
No. 33-12617) and Form of Confirmation regarding Interests in the Registrant
set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q for the
quarter ended June 30, 1992 (Commission File No. 0-16797) are hereby
incorporated herein by reference.
(27) Financial Data Schedule of the Registrant for the three month period
ending March 31, 1995 is attached hereto.
(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended March 31, 1995.
<PAGE>
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
-----------------------------
Thomas E. Meador
President and Chief Executive Officer
(Principal Executive Officer) of Balcor
Affiliated Partners-87, Inc., the Managing
General Partner
By: /s/ Brian Parker
------------------------------
Brian Parker
Senior Vice President, and Chief Financial
Officer (Principal Accounting and Financial
Officer) of Balcor Affiliated Partners-87,
Inc., the Managing General Partner
Date: May 12, 1995
----------------------------
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 680
<SECURITIES> 0
<RECEIVABLES> 45
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 725
<PP&E> 15022
<DEPRECIATION> 4897
<TOTAL-ASSETS> 10849
<CURRENT-LIABILITIES> 285
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 10565
<TOTAL-LIABILITY-AND-EQUITY> 10849
<SALES> 0
<TOTAL-REVENUES> 690
<CGS> 0
<TOTAL-COSTS> 270
<OTHER-EXPENSES> 187
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 233
<INCOME-TAX> 0
<INCOME-CONTINUING> 233
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 233
<EPS-PRIMARY> 3.12
<EPS-DILUTED> 3.12
</TABLE>
