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
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EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 1995
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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.)
2355 Waukegan Road,
Bannockburn, Illinois 60015
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (708) 267-1600
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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, 1995 and December 31, 1994
Unaudited)
ASSETS
1995 1994
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Cash and cash equivalents $ 500,401 $ 539,880
Accounts and accrued interest receivable 62,173 59,579
Prepaid expenses, principally insurance
and real estate taxes 56,271
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618,845 599,459
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Investment in real estate, at cost:
Land 1,340,324 1,340,324
Buildings and improvements 13,681,315 13,681,315
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15,021,639 15,021,639
Less accumulated depreciation 5,210,188 4,743,548
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Investment in real estate, net of
accumulated depreciation 9,811,451 10,278,091
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$ 10,430,296 $ 10,877,550
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LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 31,587 $ 47,504
Due to affiliates 9,567 22,208
Accrued liabilities, principally
real estate taxes 156,030 144,730
Security deposits 47,699 44,853
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Total liabilities 244,883 259,295
Partners' capital (73,994 Limited
Partnership Interests issued
and outstanding) 10,185,413 10,618,255
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$ 10,430,296 $ 10,877,550
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The accompanying notes are an integral part of the financial statements.
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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, 1995 and 1994
(Unaudited)
1995 1994
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Income:
Rental and service $ 2,040,846 $ 1,908,233
Interest on short-term investments 21,668 14,796
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Total income 2,062,514 1,923,029
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Expenses:
Depreciation 466,640 460,495
Property operating 780,604 681,182
Real estate taxes 142,549 174,474
Property management fees 101,510 95,162
Administrative 143,872 144,616
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Total expenses 1,635,175 1,555,929
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Net income $ 427,339 $ 367,100
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Net income allocated to General Partners $ 4,273 $ 3,671
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Net income allocated to Limited Partners $ 423,066 $ 363,429
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Net income per Limited Partnership Interest
(73,994 issued and outstanding) $ 5.72 $ 4.91
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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.
<PAGE>
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended September 30, 1995 and 1994
(Unaudited)
1995 1994
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Income:
Rental and service $ 683,549 $ 636,774
Interest on short-term investments 5,413 5,039
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Total income 688,962 641,813
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Expenses:
Depreciation 155,547 153,498
Property operating 361,273 245,396
Real estate taxes 54,119 58,722
Property management fees 33,945 31,469
Administrative 42,694 44,094
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Total expenses 647,578 533,179
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Net income $ 41,384 $ 108,634
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Net income allocated to General Partners $ 414 $ 1,086
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Net income allocated to Limited Partners $ 40,970 $ 107,548
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Net income per Limited Partnership Interest
(73,994 issued and outstanding) $ 0.56 $ 1.45
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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.
<PAGE>
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 1995 and 1994
(Unaudited)
1995 1994
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Operating activities:
Net income $ 427,339 $ 367,100
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation of properties 466,640 460,495
Net change in:
Accounts and accrued interest
receivable (2,594) (17,348)
Prepaid expenses (56,271)
Accounts payable (15,917) (10,600)
Due to affiliates (12,641) 24,084
Accrued liabilities 11,300 46,164
Security deposits 2,846 (4,151)
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Net cash provided by operating activities 820,702 865,744
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Investing activities:
Improvements to properties (68,595)
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Net cash used in investing activities (68,595)
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Financing activities:
Distributions to Limited Partners (860,181) (860,181)
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Net cash used in financing activities (860,181) (860,181)
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Net change in cash and cash equivalents (39,479) (63,032)
Cash and cash equivalents at beginning
of period 539,880 606,842
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Cash and cash equivalents at end of period $ 500,401 $ 543,810
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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 nine months and quarter
ended September 30, 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
nine months and quarter ended September 30, 1995 are:
Paid
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Nine Months Quarter Payable
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Reimbursement of expenses to
the General Partner, at cost $ 58,335 $ 8,128 $ 9,567
3. Subsequent Event:
In October 1995, the Partnership made a distribution of $314,475 ($4.25 per
Interest) to the holders of Limited Partnership Interests for the third 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
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Summary of Operations
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As a result of an increase in rental income at the Partnership's properties,
the Partnership recognized an increase in net income for the nine months ended
September 30, 1995 as compared to the same period in 1994. However, exterior
painting of the Partnership's properties resulted in a decrease in net income
for the quarter ended September 30, 1995 as compared to the same period in
1994.
1995 Compared to 1994
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Unless otherwise noted, discussions of fluctuations between 1995 and 1994 refer
to the quarter and nine months ended September 30, 1995 and 1994.
Rental income increased during 1995 as compared to 1994 due to increased rental
rates at Post Place and Salem Courthouse Apartments.
Interest income on short-term investments increased during 1995 as compared to
1994 as a result of higher average interest rates.
Property operating expense increased in 1995 as compared to 1994 as a result of
exterior painting at Post Place and Salem Courthouse Apartments.
Real estate tax expense decreased during the nine months ended 1995 as compared
to 1994 due to a decrease in the tax rate from the taxing authorities of the
Salem Courthouse Apartments. This decrease was partially offset by a refund of
1992 real estate taxes received in 1994, due to a reduction in the assessed
value of the Post Place Apartments.
Liquidity and Capital Resources
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The cash position of the Partnership decreased as of September 30, 1995 as
compared to December 31, 1994. The Partnership's cash flow generated from
<PAGE>
property operations, net of administrative expenses, was used along with cash
reserves to fund quarterly distributions to the Limited Partners.
The Salem Courthouse and Post Place apartment complexes generated positive cash
flow during the nine months ended September 30, 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 September
30, 1995, the occupancy rates of the Salem Courthouse and Post Place apartment
complexes were 97% and 99%, respectively.
In October 1995, the Partnership made a distribution of $314,475 ($4.25 per
Interest) to the holders of Limited Partnership Interests for the third quarter
of 1995. The quarterly distribution level increased compared to the second
quarter of 1995 due to improved operations at the Partnership's properties.
Including the October 1995 distribution, investors have received distributions
of Net Cash Receipts of $107.74 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 future quarterly
distributions to Limited Partners at the current level 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
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(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 nine month period ending
September 30, 1995 is attached hereto.
(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended September 30, 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
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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/Brian D. Parker
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Brian D. Parker
Senior Vice President, and Chief Financial
Officer (Principal Accounting and Financial
Officer) of Balcor Affiliated Partners-87,
Inc., the Managing General Partner
Date: November 8, 1995
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<PAGE>
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<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 500
<SECURITIES> 0
<RECEIVABLES> 62
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 619
<PP&E> 15022
<DEPRECIATION> 5210
<TOTAL-ASSETS> 10430
<CURRENT-LIABILITIES> 245
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 10185
<TOTAL-LIABILITY-AND-EQUITY> 10430
<SALES> 0
<TOTAL-REVENUES> 2063
<CGS> 0
<TOTAL-COSTS> 1025
<OTHER-EXPENSES> 611
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 427
<INCOME-TAX> 0
<INCOME-CONTINUING> 427
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 427
<EPS-PRIMARY> 5.72
<EPS-DILUTED> 5.72
</TABLE>
