<PAGE>
PAGE 1
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 June 30, 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 33-13375
IDS LIFE ACCOUNT RE
OF
IDS LIFE INSURANCE COMPANY
(Exact name of registrant as specified in its charter)
MINNESOTA 41-0823832
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
IDS TOWER 10, MINNEAPOLIS, MINNESOTA 55440-0010
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612) 671-3309
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 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>
PAGE 2
The Registrant is a separate account of IDS Life Insurance Company
(IDS Life) established pursuant to the insurance laws of the State
of Minnesota for the purposes of funding real estate variable
annuity contracts. Unless otherwise specifically noted, the
information set forth herein only relates to the operations of the
Registrant (the "Account") and not to the operations of IDS Life.
PART 1 - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
<PAGE>
PAGE 3
IDS LIFE ACCOUNT RE
of
IDS LIFE INSURANCE COMPANY
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
(unaudited)
<S> <C> <C>
Assets:
Cash $ 473,762 $ 204,859
Receivable from IDS Life for contracts sold 199,973 5,225
Investments in unconsolidated joint ventures,
at fair value (cost of $35,289,775 and
$34,753,104 at June 30, 1995 and
December 31, 1994, respectively) 27,645,370 27,044,876
Participation in mortgage loan, at fair
value (cost of $3,047,188 at June 30, 1995
and December 31, 1994) 2,988,792 2,994,023
Accrued interest on participation in mortgage loan 729 --
Investment in wholly-owned real estate
property:
Building, at fair value (cost of $14,074,199
and $14,010,548 at June 30, 1995 and
December 31, 1994, respectively) 12,186,334 12,077,794
Land, at fair value (cost of $3,915,263
at June 30, 1995 and December 31, 1994) 3,915,263 3,915,263
Deferred borrowing costs, net of accumulated
amortization of $144,651 and $131,726 at
June 30, 1995 and December 31, 1994, respectively 36,804 49,730
Other assets 24,120 34,507
Total assets $47,471,147 $46,326,277
Liabilities:
Payable to IDS Life for:
Operating expenses $ 68,476 $ 58,400
Contract terminations 137,308 10,139
Revolving loan-principal -- 2,100,000
Revolving loan-interest 1,578 9,224
Accrued mortality and expense risk fee 40,715 40,136
Accrued asset management fee 50,893 50,171
Liabilities related to wholly-owned
real estate property:
Accounts payable and other liabilities 195,375 212,197
Accrued real estate taxes 99,060 --
Mortgage payable 7,812,278 7,852,279
Total liabilities 8,405,683 10,332,546
Contract Owners' Equity:
Net assets applicable to Variable Annuity
contracts in accumulation period $39,065,464 $35,993,731
Accumulation units outstanding 36,298,240 34,238,180
Net asset value per accumulation unit $ 1.07 $ 1.05
See accompanying notes to financial statements.
<PAGE>
PAGE 4
IDS LIFE ACCOUNT RE
of
IDS LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(unaudited)
For the six months ended
June 30, June 30,
1995 1994
Income:
Interest income $ 132,643 $ 152,067
Account's equity in earnings of
unconsolidated joint ventures 964,461 953,508
Rental income 1,197,496 1,114,711
Unrealized (depreciation) appreciation of
participation in mortgage loan (5,231) 892
Unrealized appreciation of investment in
wholly-owned real estate property 44,889 --
Unrealized appreciation (depreciation) of
investments in unconsolidated joint ventures 63,824 (497,997)
Total income 2,398,082 1,723,181
Expenses:
Asset management fee 287,847 317,533
Mortality and expense risk fee 230,277 254,027
Amortization of deferred organizational
and borrowing costs 12,926 12,855
Revolving loan interest 100,736 --
Other operating expenses 31,941 52,289
Operating expenses related to wholly-owned
real estate property:
Interest 371,882 375,522
Utilities 104,175 105,154
Repairs and maintenance 105,222 91,635
Property and other taxes 96,660 101,320
Salaries 80,218 97,295
Management fees 58,439 56,272
Other 83,000 94,242
Total expenses 1,563,323 1,558,144
Net income $ 834,759 $ 165,037
See accompanying notes to financial statements.
<PAGE>
PAGE 5
IDS LIFE ACCOUNT RE
of
IDS LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS
(unaudited)
For the three months ended
June 30, June 30,
1995 1994
Income:
Interest income $ 66,321 $ 71,250
Account's equity in earnings of
unconsolidated joint ventures 423,914 483,456
Rental income 622,818 550,841
Unrealized appreciation (depreciation) of
investments in unconsolidated joint ventures 63,824 (497,997)
Total income 1,176,877 607,550
Expenses:
Asset management fee 143,212 157,466
Mortality and expense risk fee 114,569 125,973
Amortization of deferred organizational
and borrowing costs 6,463 6,463
Revolving loan interest 57,541 --
Other operating expenses 13,048 23,440
Operating expenses related to wholly-owned
real estate property:
Interest 185,703 187,544
Utilities 29,393 32,085
Repairs and maintenance 63,710 63,044
Property and other taxes 47,130 51,789
Salaries 43,512 46,149
Management fees 29,347 28,301
Other 37,624 39,534
Total expenses 771,252 761,788
Net income (loss) $ 405,625 $ (154,238)
See accompanying notes to financial statements.
<PAGE>
PAGE 6
IDS LIFE ACCOUNT RE
of
IDS LIFE INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
(unaudited)
For the six months ended
June 30, June 30,
1995 1994
Cash flows from operating activities:
Net Income $ 834,759 $ 165,037
Adjustments to reconcile net income to net cash
used in operating activities:
Account's equity in earnings of unconsolidated
joint ventures (964,461) (953,508)
Change in accrued interest on participation
in mortgage loan (729) --
Amortization of organizational and borrowing costs 12,926 12,855
Change in unrealized (appreciation) depreciation of
investments in unconsolidated joint ventures (63,824) 497,997
Change in unrealized depreciation (appreciation) of
participation in mortgage loan 5,231 (892)
Change in unrealized appreciation of investment
in wholly-owned real estate property (44,889) --
Change in other assets 10,387 10,722
Change in payable to IDS Life for operating expenses 10,076 2,014
Change in accrued mortality and expense risk fees 579 (3,305)
Change in accrued asset management fees 722 (4,132)
Change in payables and other liabilities related
to wholly-owned real estate property 82,238 132,913
Change in payable to IDS Life for revolving loan interest (7,646) --
Total adjustments to net income (959,390) (305,336)
Net cash provided by (used in) operating activities (124,631) (140,299)
Cash flows from investing activities:
Net sales of short-term securities -- 2,296,051
Capital improvements to wholly-owned real estate (63,651) (24,422)
Distributions received from joint ventures 781,867 780,870
Net cash provided by investing activities 718,216 3,052,499
Cash flows from financing activities:
Proceeds from sales of contracts 13,270,097 901,650
Payments for contract terminations (11,100,702) (3,503,720)
Decrease in mortgage payable (40,001) (36,390)
Change in payable to IDS Life for revolving loan (2,100,000) --
Contributions to Monmouth renovation-joint venture (354,076) --
Net cash used in financing activities (324,682) (2,638,460)
Net increase in cash 268,903 273,740
Balance of cash at beginning of year 204,859 171,242
Balance of cash at end of period $ 473,762 $ 444,982
Supplemental cash flow disclosure:
Cash paid for mortgage interest & revolving
loan interest $ 472,618 $ 375,522
See accompanying notes to financial statements.
</TABLE> <PAGE>
PAGE 7
IDS LIFE ACCOUNT RE
of
IDS LIFE INSURANCE COMPANY
June 30, 1995
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. GENERAL
In the opinion of the management of IDS Life, the
accompanying unaudited financial statements for IDS Life
Account RE (the "Account") contain all adjustments
(consisting of only normal recurring adjustments) necessary
to present fairly its balance sheets as of June 30, 1995 and
December 31, 1994; statements of operations for the three and
six months ended June 30, 1995 and 1994; and the statements
of cash flows for the six months ended June 30, 1995 and
1994. These statements are condensed and therefore do not
include all of the information and footnotes required by
generally accepted accounting principles for complete
financial statement disclosure. The statements should be read
in conjunction with the Account's financial statements as of
and for the year ended December 31, 1994 and the notes
thereto contained in the Account's prospectus dated April 28,
1995. The results of operations for the six months ended
June 30, 1995 are not necessarily indicative of the results
expected for the full year.
2. INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES
Unconsolidated Joint Ventures - Summary Information
Summary information for the Account of its investments in
unconsolidated joint ventures for the six months ended
June 30, 1995 and 1994 is as follows:
For the six months ended
June 30
1995 1994
Account's share of net
investment income from
unconsolidated joint ventures $ 964,461 $ 953,508
Total net investment income of
unconsolidated joint ventures $12,180,848 $11,843,444
Total income of unconsolidated
joint ventures $22,550,000 $22,852,384
<PAGE>
PAGE 8
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Condition and Results of Operations
For the Six Months Ended June 30, 1995 Compared to the Six Months
Ended June 30, 1994 -
Net assets increased from $35,993,731 at December 31, 1994 to
$39,065,464 at June 30, 1995. During this same time period, the
accumulation unit value increased from $1.05 to $1.07. The Account
experienced net sales amounting to $2,169,395 for the six months
ended June 30, 1995 compared to net terminations of $2,602,070 for
the six months ended June 30, 1994. The net sales for the six
months ended June 30, 1995 include approximately $13,300,000 for
accumulation units purchased by IDS Life, which has been used in
part to repay principal and accrued interest on the Account's
revolving loan payable to IDS Life, as discussed more fully below.
Recorded net income for the six months ended June 30, 1995 was
$834,759 compared to $165,037 for the six months ended June 30,
1994.
Interest income for the six months ended June 30, 1995 primarily
represents income earned on the Account's investment in the
participation in a mortgage loan. Income generated from
participation in the mortgage loan remained relatively unchanged
compared to the corresponding period in 1994. Interest income for
the six months ended June 30, 1994 also includes interest earned on
short-term investments of approximately $20,607.
For the six months ended June 30, 1995, the Account's recorded
equity in earnings of its unconsolidated joint ventures (N/S
Associates, Monmouth Associates and 1225 Connecticut) was $964,461,
compared to $953,508 for the six months ended June 30, 1994.
However, after eliminating the effect of the timing of certain
adjustments in the income and expense of the unconsolidated joint
ventures, including the recognition in the first quarter of 1995 of
income attributable to certain lease termination fees received by
N/S Associates in the prior quarter, the equity in earnings of
unconsolidated joint ventures showed a decline for the six months
of 1995 of approximately 5 percent compared to the recorded equity
in earnings for the six months of 1994. The amounts attributable
to these adjustments more than offset the decline in the Account's
equity in earnings of 1225 Connecticut and N/S Associates. In the
case of 1225 Connecticut, earnings for the first six months of 1995
declined primarily due to the rent credit allowed to Ernst & Young
for its fourth floor space commencing with the beginning of this
year for a twenty-one month period, as well as higher interest
expense as a result of the refinancing of its mortgage loan in 1994
with a greater principal balance. In the case of N/S Associates,
reduced earnings reflected lower rental income achieved at
Northridge Mall due to lower occupancy and higher interest expense
attributable to prepayment charges incurred in the first quarter of
1995 in connection with the repayment and refinancing of the
mortgage loans on Northridge and Southridge Malls.
<PAGE>
PAGE 9
In addition, the Account recorded rental income of $1,197,496 for
the six months ended June 30, 1995 from its wholly-owned real
estate investment, West Springfield Terrace Apartments, compared to
$1,114,711 for the six months ended June 30, 1994. However, actual
rental income was up only about 1 percent for the six months ended
June 30, 1995 compared to the same period of 1994. The difference
in recorded rental income for the two periods is primarily due to
accounting adjustments. Expenses related to the wholly-owned real
estate investment totaled $899,596 for the six months ended June
30, 1995 compared to $921,440 for the corresponding period in 1994.
For the six months ended June 30, 1995, the Account recognized net
unrealized depreciation of participation in mortgage loan of
$5,231, and net unrealized appreciation on its investment
in wholly-owned real estate property of $44,889 due to a reduction
in estimated capital expenditures to be required in future years at
the property, and net unrealized appreciation on its investment in
unconsolidated joint ventures of $63,824. The net unrealized
appreciation in investments in unconsolidated joint ventures
reflects a modest increase in the Account's share of the estimated
value of 1225 Connecticut, partially offset by a decrease in the
Account's investment in N/S Associates related to a write down in
the estimated value of Southridge Mall. Subsequent to the end of
the second quarter, the Account has recognized additional
unrealized depreciation in its investment in N/S Associates related
to Southridge Mall discussed below.
Northridge Mall continues to be adversely affected by the
perception that it is an unsafe place to shop. This perception has
resulted in declining sales and occupancy over the past three
years. Compounding the problem of declining sales are the high
operating costs for tenants at the mall due to high real estate
taxes. Occupancy has also been affected by tenant bankruptcies
during 1993 and 1994. As of June 30, 1995, occupancy of the mall
shops was approximately 78%, including temporary tenants under
short term leases.
To counter the negative perception of Northridge Mall, N/S
Associates has implemented certain capital improvements and
operational programs to improve the shopping center's safety and
appearance, as well as instituted certain marketing efforts to
enhance its image. However, elimination of the negative perception
is expected to take some time. In addition, N/S Associates is
seeking to increase occupancy at the shopping center by
aggressively marketing space for new and renewal tenants through
leasing incentives, as well as continuing to cooperate with
existing tenants who need short-term rent reductions in order to
retain occupancy of their space. Part of the leasing strategy
includes targeting certain well-recognized retailers as a group
that would become tenants at the shopping center. It is expected
that the draw of this group of tenants would help the shopping
center gain leasing momentum and aid in future leasing efforts.
Kohl's Department Store, a successful tenant occupying
approximately 66,000 square feet of space at Southridge Mall, has
approached N/S Associates regarding an expansion of its tenant
space and a reduction in its overall leasing costs. Although the<PAGE>
PAGE 10
current lease for Kohl's Department Store does not expire until
2001, N/S Associates believes that Kohl's continued occupancy on a
long-term basis is important for the shopping center. It is
expected that the proposed lease amendment with Kohl's Department
Store, if executed, would cause a decline in the current value of
Southridge Mall due to the loss of rental income but should help to
stabilize the shopping center on a long-term basis by ensuring the
occupancy of Kohl's Department Store and therefore its continued
contribution to customer traffic. Subsequent to the end of the
second quarter of 1995, the Account recognized unrealized
depreciation on its investment in N/S Associates in the amount of
approximately $354,000. This amount corresponds to the Account's
additional share (not recognized in the second quarter of 1995) of
the unrealized depreciation in the estimated value of Southridge
Mall, attributable to the proposed lease amendment with Kohl's
Department Store. As of June 30, 1995, occupancy of the portion of
Southridge Mall owned by N/S Associates was approximately 92
percent, including temporary tenants under short-term leases.
The Account paid asset management and mortality expense risk fees
of $518,124 and $571,560 for the six months ended June 30, 1995 and
1994, respectively. The decrease in fees reflects a decrease in
the assets of the Account through May 1995. The assets increased
in June due to IDS Life's investment in the Account.
For the Three Months Ended June 30, 1995 Compared to the Three
Months Ended June 30, 1994 -
Recorded net income (loss) for the three months ended June 30, 1995
was $405,625 compared to $(154,238) for the three months ended
June 30, 1994.
During the three months ended June 30, 1995, $423,914 of income was
attributable to the Account's recorded equity in earnings of its
unconsolidated joint ventures (N/S Associates, Monmouth Associates,
and 1225 Connecticut) compared to $483,456 for the corresponding
three months in 1994. After eliminating the effect of certain
accounting adjustments, a decrease of approximately $43,000 was
primarily attributable to the rent credit allowed Ernst & Young for
certain of its space at 1225 Connecticut, higher mortgage interest
expense at that property, and reduced rental income achieved at
Northridge Mall as a result of a decline in occupancy.
The Account recorded rental income of $622,818 for the three months
ended June 30, 1995 from its wholly-owned real estate investment,
West Springfield Terrace Apartments, compared to $550,841 for the
three months ended June 30, 1994. The increase was primarily
attributable to accounting adjustments made in the second quarter
or 1995, as discussed above. Expenses related to the wholly-owned
real estate investment totaled $436,419 for the three months ended
June 30, 1995 compared to $448,446 for the corresponding period in
1994.
The Account paid total asset management and mortality expense risk
fees for the three months ended June 30, 1995 of $257,781 compared
to $283,439 for the corresponding period in 1994. The decrease in
<PAGE>
PAGE 11
fees reflects a decrease in the average daily amount of assets of
the Account during the second quarter of 1995 compared to the same
period in 1994.
Liquidity and Capital Resources
For the Six Months Ended June 30, 1995 Compared to the Six Months
Ended June 30, 1994 -
At June 30, 1995, the Account had cash of approximately $474,000 as
compared to approximately $205,000 at December 31, 1994. The
Account financed a portion of the contract terminations during the
second quarter of 1995 through borrowings under its line of credit
from IDS Life and through an investment made by IDS Life, both
discussed below. The Account had experienced net contract
terminations in each of the last 14 quarters with net sales
(including accumulation units purchased by IDS Life) in the current
quarter.
The liquidity requirements of the Account have generally been met
by funds provided from the Account's short-term investments, cash
distributions from unconsolidated joint ventures, operating cash
flow, interest income, proceeds from sales of contracts, and
borrowings under the line of credit from IDS Life discussed below.
The primary uses of funds currently are expected to be for property
operating expenses, asset management and mortality and expense risk
fees, payments for contract terminations and contributions to pay
the Account's share of the financing of the Monmouth Mall
renovation discussed below.
In March 1994, the Account obtained a revolving line of credit for
up to $10 million from IDS Life to pay for contract surrenders and
other obligations under the contracts. The line of credit was for
a one-year term with automatic renewal at each anniversary for an
additional one-year term, subject to termination by one party
giving 30 days' prior written notice of termination to the other
party. Borrowings under the line of credit were to
be made in increments (or multiples) of $100,000. Outstanding
borrowings under the line of credit bore interest at a floating
rate equal to the 30-day London Interbank Offered Rate (LIBOR),
adjusted on a monthly basis. The line of credit required monthly
payments of interest only until the earlier of maturity or
termination of the line of credit, when the entire outstanding
principal plus any accrued and unpaid interest on the line of
credit was due and payable. Outstanding principal could have been
repaid in whole or in part in increments (or multiples) of
$100,000, together with any accrued and unpaid interest thereon, at
any time without premium or penalty. Borrowings under the line of
credit were generally unsecured, although IDS Life had a right to
set off against any deposits or credits of the Account held by IDS
Life for outstanding borrowings. In June 1995, the revolving
credit loan balance of $9,500,000 and accrued interest was repaid
as discussed below.
Effective May 1, 1995, new contract sales of the Account were
discontinued. Additional purchase payments will continue to be
accepted for existing contracts in amounts specified in the<PAGE>
PAGE 12
Account's prospectus, whether by means of the previously
established bank authorizations or otherwise. Existing contracts
will also continue to be serviced and surrender requests will be
honored.
IDS Life Insurance Company (IDS Life) will continue to purchase
accumulation units in order to maintain the Account and its
liquidity. IDS Life will make these payments so that no contract
holder is disadvantaged because sales of new contracts have been
discontinued. The initial payments for accumulation units that IDS
Life made into the Account were used to pay off the amount that the
Account had borrowed under its revolving line of credit. IDS Life
will make additional payments into the Account for accumulation
units as needed in order to fund all of the Account's obligations
under the contracts such as paying death benefits and contract
terminations.
By purchasing accumulation units, IDS Life will have an ownership
interest in the Account. Since IDS Life will not actually purchase
a contract, it will not be subject to surrender charges. However,
IDS Life, as holder of accumulation units, will participate in the
increase or decrease in the value of the Account's investments just
as other owners of accumulation units do. IDS Life may realize a
gain or loss on its accumulation units when redeemed.
IDS Life currently expects to hold the accumulation units it
purchases until the surrender of all outstanding contracts or until
the Account's liquidity improves (through, for example, one or more
sales of real estate related investments) thereby permitting the
Account to satisfy its anticipated contract obligations. Because
IDS Life may purchase a significant amount of accumulation units,
IDS Life may be subject to certain conflicts of interest it would
not otherwise have if it had not purchased such accumulation units,
including, among other things, a conflict in approving periodic
valuations of real estate investments made by the Investment
Adviser.
Since the Account has experienced substantial net contract
terminations over the past several years, the Account does not
intend to acquire additional real estate related investments.
Further, the Account intends to liquidate the real estate related
investments that it currently holds when it becomes advantageous or
necessary to do so. To the extent funds of the Account are not
used to pay obligations of the Account, including those under
existing contracts, or the redemption of accumulation units
purchased by IDS Life, such funds will be invested in short-term
debt instruments and possibly intermediate-term bonds with
maturities of up to five years.
The estimated cost of the renovation of Monmouth Mall is
$28,500,000, including any accrued interest on the renovation loan
added to principal. Through June 30, 1995, Monmouth Associates had
funded approximately $17,600,000, with approximately $1,100,000 of
accrued and deferred interest added to the loan for an outstanding
balance of approximately $18,700,000. Fundings of principal on the
loan have been made from cash reserves held by Monmouth Associates,
cash flow from interest and ground rent payments received from the<PAGE>
PAGE 13
borrower/lessee and capital contributions made to Monmouth
Associates by its partners. Some of the remaining draw downs under
the renovation loan are to be funded by additional capital
contributions. The aggregate amount of these capital
contributions, including one made in July 1995, is approximately
$9,830,000, made to Monmouth Associates by its joint venture
partners pro rata based upon their respective interests. The
Account's share of these capital contributions is approximately
$685,000. Monmouth Associates may also be required to make certain
additional loans to pay a portion of the costs of certain tenant
improvements or other ordinary capital expenditures. In addition,
Monmouth Associates may provide additional financing to the
borrower/lessee in order to pay costs to be incurred in connection
with the replacement of a department store tenant at Monmouth Mall.
However, it is not currently expected that this would occur during
1995.
Until the Monmouth renovation is finished, currently anticipated to
be in the fourth quarter of 1995, it is expected that there will be
lower than normal occupancy at the shopping center. The occupancy
of mall shops and outparcel space at the shopping center as of
June 30, 1995 was approximately 66 percent. However, the mall
shops and outparcel space are approximately 82 percent leased,
including leases whose terms will commence after renovation of the
tenant space permits occupancy.
The Account has a loan outstanding in the principal amount of
approximately $7,812,000 as of June 30, 1995, secured by its
wholly-owned real estate investment, West Springfield Terrace
Apartments. The loan has an original term of seven years and bears
interest at a rate of 9.5 percent per annum. The loan requires
monthly payments of principal and interest aggregating $824,000 per
annum until November of 1996 when the remaining principal balance
of approximately $7,704,000 and any accrued and unpaid interest
will be due and payable. The current budget for capital
expenditures during 1995 reflects an increase of about $27,000 to
approximately $146,000 due to certain previously unexpected
repairs. In addition, certain other capital items previously
planned for 1995 will be deferred.
N/S Associates undertakes asbestos removal from time to time at
portions of the Northridge and Southridge Malls as tenant spaces
are vacated and prior to occupancy by new tenants. The cost of
such asbestos removal generally will be provided out of cash flows
from the properties.
In February 1995, N/S Associates obtained a loan from an
institutional lender in the principal amount of $35 million to
refinance the previous mortgage loan secured by Southridge Mall.
Proceeds from the new loan were also used to repay the two mortgage
loans secured by Northridge Mall. The remaining net refinancing
proceeds are expected to be used to pay approximately $2.9 million
of the tenant improvement and other capital costs currently
expected to be incurred for Northridge and Southridge Malls during
1995. The new loan has a term of seven years, bears interest at
8.35 percent per annum and requires monthly payments of interest
only prior to maturity. The new loan is expected to result in a
cash flow savings since the current constants on the previous
mortgage loans averaged approximately 12 percent.<PAGE>
PAGE 14
At June 30, 1995, real property investments (through two
unconsolidated joint ventures, N/S Associates and 1225 Connecticut
and a wholly-owned property, West Springfield Terrace Apartments),
mortgage loan and land sale-leaseback investments (through an
unconsolidated joint venture, Monmouth Associates, and a
participation in the loan for Riverpoint Center) and short-term
investments represented 71 percent, 28 percent and 1 percent
of total assets, respectively. At June 30, 1994, real property
investments, mortgage loan and land sale-leaseback investments and
short-term investments represented 72 percent, 27 percent and 1
percent of total assets, respectively.
<PAGE>
PAGE 15
PART II. OTHER INFORMATION
---------------------------
Item 1. LEGAL PROCEEDINGS
There are no material current or pending legal proceedings
which the Registrant is a party to, or to which the
Registrant's assets are subject.
Item 2. CHANGES IN SECURITIES
Not applicable
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
4.1 Form of Deferred Variable Annuity Contract is
hereby incorporated herein by reference to Exhibit
4 to the Account's Form S-1 (as amended), File
Number 33-13375, filed July 17, 1987.
4.2 Copy of mortgage loan documents relating to West
Springfield Terrace Apartments is hereby
incorporated herein by reference to Exhibit 4.2 to
the Account's Form S-1 (as amended), File Number
33-13375, filed April 12, 1990.
4.3 Copy of the line of credit agreement, dated
March 30, 1994 between IDS Life and the Account
(including a copy of the executed promissory note,
dated March 30, 1994) is hereby incorporated by
reference to Exhibit 4.3 to the Account's Form 10-K
Report for the year ended December 31, 1993, File
Number 33-13375, filed April 5, 1994.
10.1 Copy of Investment Advisory Agreement between IDS
Life and JMB Annuity Advisors is hereby
incorporated herein by reference to Exhibit 10.1 to
the Account's Form S-1 (as amended), File Number
33-13375, filed April 29, 1988.
10.2 Copy of N/S Associates Joint Venture Agreement
together with certain documents relating to the
purchase of an interest in Northridge Mall is
hereby incorporated herein by reference to Exhibit
10.2 to the Account's Form S-1 (as amended), File
Number 33-13375, filed April 29, 1988.
<PAGE>
PAGE 16
10.2.1 Copy of Second Amended and Restated Articles of
Partnership of N/S Associates hereby incorporated
herein by reference to Exhibit 10.2.1 to the
Account's Form S-1 (as amended), File Number
33-13375, filed April 20, 1989.
10.3 Copy of N/S Associates Joint Venture Agreement
together with certain documents relating to the
purchase of an interest in Southridge Mall is
hereby incorporated herein by reference to
Exhibit 10.3 to Form S-1 (as amended), File
Number 33-13375, filed April 29, 1988.
10.4 Copy of Commitment Letter relating to the funding
of a participating mortgage loan secured by
Riverpoint Center is hereby incorporated herein by
reference to Exhibit 10.4 to Form S-1 (as amended),
File Number 33-13375, filed October 11, 1988.
10.5 Copy of Amended and Restated Articles of
Partnership of Monmouth Associates are hereby
incorporated herein by reference to Exhibit 10.5 to
the Account's Form S-1 (as amended), File Number
33-13375, filed April 12, 1990.
10.6 Copy of Agreement together with certain other
documents relating to the purchase of West
Springfield Terrace Apartments is hereby
incorporated herein by reference to Exhibit 10.6 to
Form S-1 (as amended), File Number 33-13375, filed
October 16, 1989.
10.7 Copy of Agreement together with certain documents
relating to the purchase of an interest in 1225
Connecticut Avenue is hereby incorporated herein by
reference to the Account's Form S-1 (as amended),
File Number 33-13375, filed June 29, 1990.
27.1 Financial Data Schedule of the Account for the
period ended June 30, 1995 is filed herewith.
(B) Report on Form 8-K
No reports on Form 8-K were required to be filed by the
Registrant for the six months ended June 30, 1995.
<PAGE>
PAGE 17
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 LIFE ACCOUNT RE
of
IDS LIFE INSURANCE COMPANY
(Registrant)
Date: August 14, 1995 /S/ Melinda Urion
Melinda S. Urion
Executive Vice President
and Controller
<PAGE>
<PAGE>
PAGE 1
IDS Life Account RE
File No. 33-13375
EXHIBIT INDEX
Exhibit 27.1: Financial Data Schedule.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
PAGE 1
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE REGISTRANT'S FORM 10-Q FOR THE
SIX MONTHS ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS INCLUDED IN
SUCH REPORT.
<RESTATED>
<CIK>
<NAME>
<MULTIPLIER>
<CURRENCY>
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START>
<PERIOD-END> JUN-30-1995
<PERIOD-TYPE> 6-MOS
<EXCHANGE-RATE>
<CASH> 473762
<SECURITIES> 0
<RECEIVABLES> 199973
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 673735
<PP&E> 0
<APPRECIATION> 44889
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<CURRENT-LIABILITIES> 591827
<BONDS> 7813856
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0
0
<OTHER-SE> 39065464
<TOTAL-LIABILITY-AND-EQUITY> 47471147
<SALES> 1197496
<TOTAL-REVENUES> 2398082
<CGS> 0
<TOTAL-COSTS> 860428
<OTHER-EXPENSES> 230277
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<INTEREST-EXPENSE> 472618
<INCOME-PRETAX> 834759
<INCOME-TAX> 834759
<INCOME-CONTINUING> 834759
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<NET-INCOME> 834759
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