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 June 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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<PAGE>
IDS/BALCOR INCOME PARTNERS
A REAL ESTATE LIMITED PARTNERSHIP
(A Delaware Limited Partnership)
BALANCE SHEETS
June 30, 1995 and December 31, 1994
(Unaudited)
ASSETS
1995 1994
-------------- --------------
Cash and cash equivalents $ 540,008 $ 539,880
Accounts and accrued
interest receivable 54,522 59,579
Prepaid expenses, principally insurance
and real estate taxes 68,141
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662,671 599,459
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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 5,054,641 4,743,548
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Investment in real estate, net
of accumulated depreciation 9,966,998 10,278,091
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$ 10,629,669 $ 10,877,550
============== ==============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 26,135 $ 47,504
Due to affiliates 2,816 22,208
Accrued liabilities, principally
real estate taxes 124,824 144,730
Security deposits 45,139 44,853
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Total liabilities 198,914 259,295
Partners' capital (73,994 Limited
Partnership Interests issued
and outstanding) 10,430,755 10,618,255
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$ 10,629,669 $ 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 six months ended June 30, 1995 and 1994
(Unaudited)
1995 1994
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Income:
Rental and service $ 1,357,297 $ 1,271,459
Interest on short-term investments 16,255 9,757
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Total income 1,373,552 1,281,216
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Expenses:
Depreciation 311,093 306,997
Property operating 419,331 441,512
Real estate taxes 88,430 115,752
Property management fees 67,565 63,693
Administrative 101,179 94,796
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Total expenses 987,598 1,022,750
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Net income $ 385,954 $ 258,466
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Net income allocated to General
Partners $ 3,860 $ 2,585
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Net income allocated to Limited
Partners $ 382,094 $ 255,881
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Net income per Limited Partnership
Interest (73,994 issued and
outstanding) $ 5.16 $ 3.46
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Distributions to Limited Partners $ 573,454 $ 573,454
============== ==============
Distributions per Limited Partnership
Interest $ 7.75 $ 7.75
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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 June 30, 1995 and 1994
(Unaudited)
1995 1994
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Income:
Rental and service $ 675,460 $ 642,615
Interest on short-term investments 8,100 5,080
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Total income 683,560 647,695
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Expenses:
Depreciation 157,350 153,499
Property operating 246,755 235,778
Real estate taxes 25,290 64,495
Property management fees 33,803 32,203
Administrative 67,469 48,027
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Total expenses 530,667 534,002
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Net income $ 152,893 $ 113,693
============== ==============
Net income allocated to General
Partners $ 1,529 $ 1,137
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Net income allocated to Limited
Partners $ 151,364 $ 112,556
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Net income per Limited Partnership
Interest (73,994 issued and
outstanding) $ 2.04 $ 1.52
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Distribution to Limited Partners $ 286,727 $ 286,727
============== ==============
Distribution per Limited Partnership
Interest $ 3.87 $ 3.87
============== ==============
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 six months ended June 30, 1995 and 1994
(Unaudited)
1995 1994
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Operating activities:
Net income $ 385,954 $ 258,466
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation of properties 311,093 306,997
Net change in:
Accounts and accrued interest
receivable 5,057 (5,790)
Prepaid expenses (68,141)
Accounts payable (21,369) (21,500)
Due to affiliates (19,392) 28,824
Accrued liabilities (19,906) 10,257
Security deposits 286 (624)
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Net cash provided by operating
activities 573,582 576,630
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Investing activities:
Improvements to properties (60,611)
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Net cash used in investing
activities (60,611)
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Financing activities:
Distributions to Limited Partners (573,454) (573,454)
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Net cash used in financing
activities (573,454) (573,454)
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Net change in cash and cash
equivalents 128 (57,435)
Cash and cash equivalents at
beginning of period 539,880 606,842
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Cash and cash equivalents at
end of period $ 540,008 $ 549,407
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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:
A reclassification has been made to the previously reported 1994 statements in
order to provide comparability with the 1995 statements. This reclassification
has not changed the 1994 results. In the opinion of management, all
adjustments necessary for a fair presentation have been made to the
accompanying statements for the six months and quarter ended June 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
six months and quarter ended June 30, 1995 are:
Paid
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Six Months Quarter Payable
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Reimbursement of expenses to
the General Partner, at cost $ 50,207 $50,207 $ 2,816
3. Subsequent Event:
In July 1995, the Partnership made a distribution of $286,727 ($3.875 per
Interest) to the holders of Limited Partnership Interests for the second
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 both of the Partnership's
properties and decreases in exterior wood trim repair and real estate tax
expense at Salem Courthouse Apartments, the Partnership recognized an increase
in net income for the six months and quarter ended June 30, 1995 as compared to
the same periods in 1994.
1995 Compared to 1994
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Rental income increased during the six months and quarter ended June 30, 1995
as compared to the same periods in 1994 due to increased rental rates at Post
Place and Salem Courthouse Apartments.
Interest income on short-term investments increased during the six months and
quarter ended June 30, 1995 as compared to the same periods in 1994 as a result
of higher average interest rates.
Property operating expense decreased during the six months ended June 30, 1995
as compared to the same period in 1994 as a result of exterior wood trim repair
at Salem Courthouse which was completed during 1994. This decrease was
partially offset for the six months and fully offset for the quarter ended June
30, 1995 by an increase in roof repairs and parking lot repaving expenses at
Post Place Apartments.
Real estate tax expense decreased during the six months and quarter ended June
30, 1995 as compared to the same periods in 1994 due to a decrease in the tax
rate from the taxing authorities of the Salem Courthouse Apartments. This
decrease was partially offset by an increase in real estate tax expense at the
Post Place Apartments as a result of a refund of 1992 real estate taxes
received in 1994, due to a reduction in the assessed value of the property.
<PAGE>
Administrative expenses increased during the quarter ended June 30, 1995 as
compared to the same period in 1994 as a result of increases in accounting and
legal fees.
Liquidity and Capital Resources
-------------------------------
The cash position of the Partnership remained relatively unchanged from
December 31, 1994 to June 30, 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.
The Salem Courthouse and Post Place apartment complexes generated positive cash
flow during the quarters ended June 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 June 30, 1995, the
occupancy rates of the Salem Courthouse and Post Place apartment complexes were
87% and 97%, respectively.
In July 1995, the Partnership made a distribution of $286,727 ($3.875 per
Interest) to the holders of Limited Partnership Interests for the second
quarter of 1995. The quarterly distribution level remained constant compared to
the first quarter of 1995. Including the July 1995 distribution, investors have
received distributions of Net Cash Receipts of $103.49 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 six month period ending
June 30, 1995 is attached hereto.
(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended June 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
-----------------------------
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
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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: August 7, 1995
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<PAGE>
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<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 540
<SECURITIES> 0
<RECEIVABLES> 55
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 663
<PP&E> 15022
<DEPRECIATION> 5055
<TOTAL-ASSETS> 10630
<CURRENT-LIABILITIES> 199
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 10431
<TOTAL-LIABILITY-AND-EQUITY> 10630
<SALES> 0
<TOTAL-REVENUES> 1374
<CGS> 0
<TOTAL-COSTS> 576
<OTHER-EXPENSES> 412
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 386
<INCOME-TAX> 0
<INCOME-CONTINUING> 386
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 386
<EPS-PRIMARY> 5.16
<EPS-DILUTED> 5.16
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