<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 September 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>
September 30, December 31,
1995 1994
(unaudited)
<S> <C> <C>
Assets:
Cash $ 554,628 $ 204,859
Receivable from IDS Life for contracts sold -- 5,225
Investments in unconsolidated joint ventures,
at fair value (cost of $35,748,241 and
$34,753,104 at September 30, 1995
and December 31, 1994, respectively) 28,103,837 27,044,876
Participation in mortgage loan, at fair
value (cost of $3,047,188 at September 30, 1995
and December 31, 1994) 2,962,242 2,994,023
Investment in wholly-owned real estate
property:
Building, at fair value (cost of $14,128,296
and $14,010,548 at September 30, 1995 and
December 31, 1994, respectively) 12,334,306 12,077,794
Land, at fair value (cost of $3,915,263
at September 30, 1995 and December 31, 1994) 3,915,263 3,915,263
Deferred borrowing costs, net of accumulated
amortization of $151,114 and $131,726 at
September 30, 1995 and December 31, 1994, respectively 30,342 49,730
Other assets 44,992 34,507
Total assets $47,945,610 $46,326,277
Liabilities:
Payable to IDS Life for:
Operating expenses $ 60,234 $ 58,400
Contract terminations 34,223 10,139
Revolving loan-principal -- 2,100,000
Revolving loan-interest -- 9,224
Accrued mortality and expense risk fee 40,142 40,136
Accrued asset management fee 50,178 50,171
Liabilities related to wholly-owned
real estate property:
Accounts payable and other liabilities 197,255 212,197
Accrued real estate taxes 49,530 --
Mortgage payable 7,791,556 7,852,279
Total liabilities 8,223,118 10,332,546
Contract Owners' Equity:
Net assets applicable to Variable Annuity
contracts in accumulation period $39,722,492 $35,993,731
Accumulation units outstanding 36,491,463 34,238,180
Net asset value per accumulation unit $ 1.09 $ 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 nine months ended
September 30, September 30,
1995 1994
Income:
Interest income $ 198,966 $ 219,335
Account's equity in earnings of
unconsolidated joint ventures 1,453,176 1,472,882
Rental income 1,794,031 1,724,954
Unrealized (depreciation) of participation
in mortgage loan (27,817) (848)
Unrealized appreciation (depreciation) of
investments in unconsolidated joint ventures 63,824 (497,997)
Unrealized appreciation of investment in
wholly-owned real estate property 138,764 --
Total income 3,620,944 2,918,326
Expenses:
Asset management fee 445,113 612,652
Mortality and expense risk fee 356,091 380,282
Amortization of deferred organizational
and borrowing costs 19,389 19,388
Revolving loan interest 100,736 4,190
Other operating expenses 56,734 63,815
Operating expenses related to wholly-owned
real estate property:
Interest 557,096 562,623
Utilities 121,731 137,156
Repairs and maintenance 172,432 138,915
Property and other taxes 141,352 150,775
Salaries 125,871 159,068
Management fees 88,786 85,356
Other 117,413 153,454
Total expenses 2,302,744 2,467,674
Net income $ 1,318,200 $ 450,652
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
September 30, September 30,
1995 1994
Income:
Interest income $ 66,323 $ 67,268
Account's equity in earnings of
unconsolidated joint ventures 488,715 519,374
Rental income 596,535 610,243
Unrealized (depreciation) of participation
in mortgage loan (22,586) (1,740)
Unrealized appreciation of investment in wholly-owned
real estate property 93,875 --
Total income 1,222,862 1,195,145
Expenses:
Asset management fee 157,266 295,119
Mortality and expense risk fee 125,814 126,255
Amortization of deferred organizational
and borrowing costs 6,462 6,533
Revolving loan interest -- 4,190
Other operating expenses 24,793 11,526
Operating expenses related to wholly-owned
real estate property:
Interest 185,214 187,101
Utilities 17,556 32,002
Repairs and maintenance 67,210 47,279
Property and other taxes 44,692 49,455
Salaries 45,653 61,773
Management fees 30,347 29,084
Other 34,413 59,212
Total expenses 739,420 909,529
Net income $ 483,442 $ 285,616
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 nine months ended
September 30, September 30,
1995 1994
Cash flows from operating activities:
Net Income $ 1,318,200 $ 450,652
Adjustments to reconcile net income to net cash
used in operating activities:
Account's equity in earnings of unconsolidated
joint ventures (1,453,176) (1,472,882)
Change in accrued interest on participation
in mortgage loan 3,965 --
Amortization of organizational and borrowing costs 19,388 19,389
Change in unrealized (appreciation) depreciation of
investments in unconsolidated joint ventures (63,824) 497,997
Change in unrealized depreciation of participation
in mortgage loan 27,817 848
Change in unrealized (appreciation) of investment
in wholly-owned real estate property (138,764) --
Change in other assets (10,485) 26,400
Change in payable to IDS Life for operating expenses 1,834 (20,095)
Change in accrued mortality and expense risk fee 6 (3,872)
Change in accrued asset management fee 7 (4,840)
Change in payables and other liabilities related
to wholly-owned real estate property 34,588 10,532
Change in payable to IDS Life for revolving loan interest (9,224) 2,986
Total adjustments to net income (1,587,868) (943,537)
Net cash provided by (used in) operating activities (269,668) (492,885)
Cash flows from investing activities:
Net sales of short-term securities -- 2,493,649
Capital improvements to wholly-owned real estate property (117,748) (51,471)
Distributions received from joint ventures 1,143,190 1,119,030
Net cash provided by investing activities 1,025,442 3,561,208
Cash flows from financing activities:
Proceeds from sales of contracts 19,501,099 1,177,291
Payments for contract terminations (17,061,230) (5,267,871)
Decrease in mortgage payable (60,723) (55,240)
Change in payable to IDS Life for revolving loan (2,100,000) 1,100,000
Contributions to Monmouth renovation-joint venture (685,151) --
Net cash used in financing activities (406,005) (3,045,820)
Net increase in cash 349,769 22,503
Balance of cash at beginning of year 204,859 171,242
Balance of cash at end of period $ 554,628 $ 193,745
Supplemental cash flow disclosure:
Cash paid for mortgage interest & revolving
loan interest $ 657,832 $ 562,623
See accompanying notes to financial statements.
</TABLE> <PAGE>
PAGE 7
IDS LIFE ACCOUNT RE
of
IDS LIFE INSURANCE COMPANY
September 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 September 30, 1995
and December 31, 1994; statements of operations for the three
and nine months ended September 30, 1995 and 1994; and the
statements of cash flows for the nine months ended
September 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 nine months ended September 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 nine months ended
September 30, 1995 and 1994 is as follows:
For the nine months ended
September 30
1995 1994
Account's share of net
investment income from
unconsolidated joint ventures $ 1,453,176 $ 1,472,882
Total net investment income of
unconsolidated joint ventures $18,284,571 $18,358,035
Total income of unconsolidated
joint ventures $34,014,000 $34,936,162
<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 Nine Months Ended September 30, 1995 Compared to the Nine
Months Ended September 30, 1994 -
Net assets increased from $35,993,731 at December 31, 1994 to
$39,722,492 at September 30, 1995. During this same time period,
the accumulation unit value increased from $1.05 to $1.09. The
Account experienced net sales amounting to $2,439,870 for the nine
months ended September 30, 1995 compared to net terminations of
$4,090,580 for the nine months ended September 30, 1994. The net
sales for the nine months ended September 30, 1995 include
approximately $19,300,000 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 nine months ended September 30, 1995
was $1,318,200 compared to $450,652 for the nine months ended
September 30, 1994.
Interest income for the nine months ended September 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. The Silo Electronic
store (12,100 sq. ft.) at Riverpoint Shopping Center vacated its
space in the third quarter 1995, and the borrower is pursuing its
legal remedies regarding such unpaid amounts. The borrower has
re-leased the space to a book store for three months at a
substantially lower rent. The borrower has a letter of intent from
a prospective tenant to lease the space for five years with rent
commencing on July 1, 1996. As a result of this vacancy, the
borrower has notified the lenders that it is experiencing financial
difficulties and has approached the lenders regarding a loan
modification. The lenders are considering the borrower's request.
As of the date of this report, certain escrow payments and
participation interest are due to the lenders; however, the
borrower is current in its monthly debt service payments. Interest
income for the nine months ended September 30, 1994 also includes
interest earned on short-term investments of approximately $20,847.
For the nine months ended September 30, 1995, the Account's
recorded equity in earnings of its unconsolidated joint ventures
(N/S Associates, Monmouth Associates and 1225 Connecticut) was
$1,453,176, compared to $1,472,882 for the nine months ended
September 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 nine months of 1995 of approximately 12 percent<PAGE>
PAGE 9
compared to the recorded equity in earnings for the six months of
1994. Earnings of 1225 Connecticut for the first nine 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. Earnings of N/S
Associates for the nine months of 1995 declined primarily due to
lower rental revenues. In addition, Monmouth Associates ceased
accruing interest on loans made to the borrower/lessee for certain
tenant improvement and other capital expenditures due to the
uncertainty of collecting such amounts in future periods.
In addition, the Account recorded rental income of $1,794,031 for
the nine months ended September 30, 1995 from its wholly-owned real
estate investment, West Springfield Terrace Apartments, compared to
$1,724,954 for the nine months ended September 30, 1994, primarily
due to a modest increase in effective rental rates. Expenses
related to the wholly-owned real estate investment totaled
$1,324,681 for the nine months ended September 30, 1995 compared to
$1,387,347 for the corresponding period in 1994.
For the nine months ended September 30, 1995, the Account
recognized net unrealized depreciation of participation in mortgage
loan of $27,817, and net unrealized appreciation on its investment
in wholly-owned real estate property of $138,764 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.
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 September 30, 1995, occupancy of the
mall shops was approximately 87%, 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.<PAGE>
PAGE 10
Kohl's Department Store, a successful tenant occupying
approximately 66,000 square feet of space at Southridge Mall,
approached N/S Associates regarding an expansion of its tenant
space and a reduction in its overall leasing costs. During the
third quarter of 1995, N/S Associates and Kohl's entered into an
amendment of its lease. Pursuant to the lease amendment, the term
of Kohl's lease has been extended from 2001 until 2015 and the
tenant space has been increased by approximately 19,000 square feet
to approximately 85,000 square feet, exclusive of storage space.
Kohl's is required to pay annual base rent of $9.25 per square
foot, as well as one-half of its pro rata share for real estate
taxes and a fixed amount for common area maintenance expense.
Kohl's is also obligated to pay as additional rent a percentage of
its gross receipts in excess of a minimum amount of annual sales to
be determined after the tenant has occupancy of the entire leased
space. N/S Associates is responsible for paying the costs of
asbestos removal for the tenant space, which is estimated to be
approximately $1,250,000. Kohl's is obligated to pay other costs
associated with the leased space, including tenant improvements and
lease buy-out and relocation costs, if any, of other tenants (one
of whose lease continues until 2001) that currently occupy a
portion of the expansion space. The lease amendment also contains
an operating covenant pursuant to which Kohl's is obligated to
operate its retail store at Southridge Mall until 2005, subject to
earlier termination under certain circumstances. Although the
lease amendment reduces Kohl's overall rent, the expansion of its
space and the extension of its lease term is expected to stabilize
the shopping center on a long-term basis by ensuring Kohl's
continued occupancy and therefore its continued contribution to
customer traffic. The Account expects to recognize unrealized
depreciation in the estimated value of Southridge Mall during the
fourth quarter relating to the lease amendment with Kohl's. As of
September 30, 1995, occupancy of the portion of Southridge Mall
owned by N/S Associates was approximately 93 percent, including
temporary tenants under short-term leases.
The Account paid asset management and mortality expense risk fees
of $801,204 and $992,934 for the nine months ended September 30,
1995 and 1994, respectively. The decrease in fees is primarily due
to the payment of the incentive asset management fees of $137,299
paid in 1994 to the Investment Adviser based upon the performance
of the Account's real property investments relative to the FRC
Property Index. No incentive asset management fee was payable in
1995.
For the Three Months Ended September 30, 1995 Compared to the Three
Months Ended September 30, 1994 -
Recorded net income for the three months ended September 30, 1995
was $483,442 compared to $285,616 for the three months ended
September 30, 1994.
During the three months ended September 30, 1995, $488,715 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 $519,374 for<PAGE>
PAGE 11
the corresponding three months in 1994. The decrease of
approximately $31,000 was attributable in part to the rent credit
allowed Ernst & Young for certain of its space at 1225 Connecticut.
The Account recorded rental income of $596,535 for the three months
ended September 30, 1995 from its wholly-owned real estate
investment, West Springfield Terrace Apartments, compared to
$610,243 for the three months ended September 30, 1994. Expenses
related to the wholly-owned real estate investment totaled $425,085
for the three months ended September 30, 1995 compared to $465,906
for the corresponding period in 1994.
The Account paid total asset management and mortality expense risk
fees for the three months ended September 30, 1995 of $283,080
compared to $421,374 for the corresponding period in 1994. The
decrease in fees reflects the payment of the incentive asset
management fee in 1994, as discussed above.
Liquidity and Capital Resources
For the Nine Months Ended September 30, 1995 Compared to the Nine
Months Ended September 30, 1994 -
At September 30, 1995, the Account had cash of approximately
$555,000 as compared to approximately $205,000 at December 31,
1994. The Account financed a portion of the contract terminations
during the third quarter of 1995 through additional investments
made by IDS Life Insurance Company (IDS Life). The Account had
experienced net contract terminations in 14 consecutive quarters
with net sales (including accumulation units purchased by IDS Life)
in the last two quarters.
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 and purchases of
accumulation units by 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. In June 1995, the revolving
credit loan balance of $9,500,000 and accrued interest were repaid
as discussed below.
Effective May 1, 1995, new contract sales of the Account were
discontinued. Additional purchase payments continue to be accepted
for existing contracts in amounts specified in the
Account's prospectus, whether by means of the previously
established bank authorizations or otherwise. Existing contracts
also continue to be serviced and surrender requests will be
honored. <PAGE>
PAGE 12
IDS Life continues to purchase accumulation units in order to
maintain the Account and its liquidity. IDS Life makes 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 has an ownership
interest in the Account. Since IDS Life does not purchase a
contract, it is not subject to surrender charges. However, IDS
Life, as holder of accumulation units, participates 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.
Through September 30, 1995, Monmouth Associates had funded
approximately $20,800,000 of the renovation loan for Monmouth Mall,
with approximately $1,600,000 of accrued and deferred interest
added to the loan for an outstanding balance of approximately
$22,400,000. 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 borrower/lessee and
capital contributions made to Monmouth Associates by its partners
pro rata based upon their respective interests. The aggregate
amount of capital contributions to finance the loan, including one
made in July 1995, is approximately $9,830,000. The Account's
share of these capital contributions is approximately $685,000.
The aggregate amount of the renovation loan, including accrued and<PAGE>
PAGE 13
deferred interest, is currently expected to be approximately
$26,600,000. Remaining fundings for the renovation loan are
expected to be made from cash flow and funds currently held by
Monmouth Associates. 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.
The renovation is nearing completion with tenant improvement work
for one of the larger tenants and retainage work remaining. The
occupancy of mall shops and outparcel space at the shopping center
as of September 30, 1995 was approximately 67 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 $7,792,000 as of September 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 currently expects that it will incur approximately
$2,000,000 in 1995 for tenant improvement and other capital items
at Northridge and Southridge Malls. An additional approximately
$1,700,000 that had previously been budgeted for tenant improvement
costs in 1995 is now expected to be incurred during 1996. 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.
At September 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 70 percent, 29 percent and 1 percent
of total assets, respectively. At September 30, 1994, real
property investments, mortgage loan and land sale-leaseback
investments and short-term investments represented 72 percent,
27.5 percent and .5 percent of total assets, respectively.
<PAGE>
PAGE 14
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 15
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 September 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 nine months ended September 30,
1995.
<PAGE>
PAGE 16
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: November 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
NINE MONTHS ENDED SEPTEMBER 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> SEP-30-1995
<PERIOD-TYPE> 9-MOS
<EXCHANGE-RATE>
<CASH> 554628
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 554628
<PP&E> 0
<APPRECIATION> 138764
<TOTAL-ASSETS> 47945610
<CURRENT-LIABILITIES> 431562
<BONDS> 7791556
<COMMON> 0
0
0
<OTHER-SE> 39722492
<TOTAL-LIABILITY-AND-EQUITY> 47945610
<SALES> 1794031
<TOTAL-REVENUES> 3620944
<CGS> 0
<TOTAL-COSTS> 1288821
<OTHER-EXPENSES> 356091
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 657832
<INCOME-PRETAX> 1318200
<INCOME-TAX> 1318200
<INCOME-CONTINUING> 1318200
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1318200
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
