<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(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 33-13983
ASSOCIATED PLANNERS REALTY GROWTH FUND
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-4119808
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5933 W. CENTURY BLVD., SUITE 900
LOS ANGELES, CALIFORNIA 90045
(Address of principal executive offices)
(Zip Code)
(310) 670-0800
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes X No
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
ITEM 1. FINANCIAL STATEMENTS
In the opinion of the General Partner of Associated Planners Realty
Growth Fund (the "Partnership"), all adjustments necessary for a fair
presentation of the Partnership's results for the three and six months ended
June 30, 1995 and 1994 have been made in the following financial statements.
However, such financial statements are unaudited and are subject to any
year-end adjustments that may be necessary.
<TABLE>
BALANCE SHEETS
June 30, 1995 (Unaudited) and December 31, 1994
<CAPTION>
June 30, December 31,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
RENTAL REAL ESTATE, net of
accumulated depreciation (Notes 2 & 3) $3,221,853 $3,255,051
CASH AND CASH EQUIVALENTS 2,601 5,657
OTHER ASSETS 18,117 35,726
$3,242,571 $3,296,434
LIABILITIES AND PARTNERS' EQUITY
PAYABLE TO AFFILIATES $ 164,821 $ 187,807
OTHER ACCRUED LIABILITIES 61,639 16,725
NOTE PAYABLE - RELATED PARTY (Note 4) 150,000 150,000
SECURITY DEPOSITS AND PREPAID RENT 25,977 25,181
NOTE PAYABLE (Note 3) 1,607,108 1,614,884
TOTAL LIABILITIES 2,009,545 1,994,597
COMMITMENTS AND CONTINGENCIES
PARTNERS' EQUITY:
Limited Partner:
$1,000 stated value per unit;
authorized 10,000 units;
issued - 2,061 1,228,662 1,296,785
General Partner: 4,364 5,052
TOTAL PARTNERS EQUITY 1,233,026 1,301,837
$3,242,571 $3,296,434
</TABLE>
[FN]
See accompanying notes to financial statements.<PAGE>
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
Six Months Ended June 30, 1995
(Unaudited)
<CAPTION>
Limited Partners General
Total Units Amount Partner
<S> <C> <C> <C> <C>
BALANCE, December 31, 1994 $1,301,837 2,061 $1,296,785 $5,052
Net loss (68,811) --- (68,123) (688)
BALANCE, June 30, 1995 $1,233,026 2,061 $1,228,662 $4,364
Six Months Ended June 30, 1994
(Unaudited)
<CAPTION>
Limited Partners General
Total Units Amount Partner
<S> <C> <C> <C> <C>
BALANCE, December 31, 1993 $1,416,980 2,061 $1,410,777 $6,203
Net loss (38,448) --- (38,063) (385)
BALANCE, June 30, 1994 $1,378,532 2,061 $1,372,714 $5,818
</TABLE>
[FN]
See accompanying notes to financial statements.<PAGE>
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
Three and Six Months Ended June 30, 1995 and 1994
(unaudited)
<CAPTION>
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1995 1994 1995 1994
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
REVENUES:
Rental $65,438 $75,877 $121,315 $153,587
Interest 41 140 91 287
65,479 76,017 121,406 153,874
COSTS AND EXPENSES:
Operating 19,248 18,507 38,662 36,226
Property taxes 4,495 4,496 8,990 8,992
Property management fees 2,678 3,414 4,977 6,924
Interest 42,360 42,674 83,975 85,483
General and administrative 10,199 9,924 20,415 21,480
Depreciation and amortization 16,599 16,606 33,198 33,217
95,579 95,621 190,217 192,322
NET LOSS $(30,100) $(19,604) $(68,811) $(38,448)
NET LOSS PER
LIMITED PARTNERSHIP UNIT $(14.46) $(9.41) $(33.05) $(18.46)
</TABLE>
[FN]
See accompanying notes to financial statements.<PAGE>
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 1995 and 1994
(Unaudited)
<CAPTION>
Six Months Six Months
Ended Ended
June 30, June 30,
1995 1994
(Unaudited) (Unaudited)
<S> <C> <C>
Cash flow from operating activities:
Net Loss $(68,811) $(38,448)
Adjustments to reconcile net (loss) to
net cash (used in) provided by operating activities:
Depreciation and amortization 33,198 33,217
Increase (decrease) from changes in:
Other assets 17,609 (2,660)
Accounts payable 21,928 (4,594)
Security deposits and prepaid rent 796 415
Net cash (used in) provided by operating activites 4,720 (12,070)
Cash flows from financing actvities:
Repayments on note payable (7,776) (7,057)
Net cash (used in) financing activities (7,776) (7,057)
Net (decrease) in cash & cash equivalents (3,056) (19,127)
Cash and cash equivalents at beginning of period 5,657 29,564
Cash and cash equivalents at end of period $2,601 $10,437
</TABLE>
[FN]
See accompanying notes to financial statements. <PAGE>
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
Summary of Accounting Policies
Business
Associated Planners Realty Growth Fund (the "Partnership), a
California limited partnership, was formed on March 9, 1987 under
the Revised Limited Partnership Act of the State of California for the
purpose of developing or acquiring, managing and operating leveraged
income producing real estate. The Partnership met its minimum
funding of $1,200,000 on August 29, 1988 and terminated its offering
on September 5, 1989.
Basis of Presentation
The financial statements do not give effect to any assets that the
partners may have outside of their interest in the partnership, nor to
any personal obligations, including income taxes, of the partners.
Rental Real Estate & Depreciation
Assets are stated at cost. Depreciation is computed using the
straight-line method over estimated useful lives ranging from 31.5
to 40 years for financial reporting and income tax reporting purposes.
Organizational Costs and Loan Origination Fees
Organizational costs and loan origination fees are capitalized
and amortized over five and ten years, respectively.
Lease Commissions
Lease commissions which are paid to real estate brokers for locating
tenants are capitalized and amortized over the life of the lease.
Rental Revenue
Rental revenue is recognized on a straight-line basis to the extent
that rental revenue is deemed collectible.
Statements of Cash Flow
For purposes of the statements of cash flows, the Partnership
considers cash in the bank and all highly liquid investments purchased
with original maturities of three months or less to be cash and cash
equivalents.
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Three and Six Months Ended June 30, 1995 and 1994 (Unaudited)
and December 31, 1994
Note 1 - Nature of Partnership Business
Associated Planners Realty Growth Fund, a California limited partnership
(the "Fund"), was formed on December 23, 1986 under the Revised Limited
Partnership Act of the State of California for the purpose of acquiring,
managing, and operating leveraged income-producing real estate.
Under the terms of the partnership agreement, the General Partner (West
Coast Realty Advisors, Inc. and W. Thomas Maudlin Jr.) is entitled to cash
distributions and net income allocations varying from 1% for depreciation
allocations to 15% of cash and income after the limited partners have
received cash distributions equal to their initial cash investment plus a
cumulative 8% return. The General Partner is also entitled to cash
distributions and net income allocations of 10% from ongoing partnership
operations. Further, the General Partner receives acquisition fees for
locating and negotiating the purchase of rental real estate and management
fees for operating the Partnership (Note 4).
Note 2 - Rental Real Estate
As of June 30, 1995 and December 31, 1994, the Fund's net real estate
investments in the Parkcenter Office Building and PROCARE Industrial Building
are as follows:
June 30, December 31,
1995 1994
Land $1,349,900 $1,349,900
Buildings and Improvements 2,241,600 2,241,600
3,591,500 3,591,500
Less Accumulated Depreciation 369,647 336,449
Net Real Estate Investment $3,221,853 $3,255,051
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Three and Six Months Ended June 30, 1995 and 1994 (Unaudited)
and Year Ended December 31, 1994
(continued)
Note 3 - Note Payable
The Partnership has a 9.75% promissory note secured by a Deed of
Trust totaling $1,607,108 at June 30, 1995 and $1,614,884 at December 31, 1994,
with a life insurance company. This note is due January 1, 2000, and
provides significant prepayment penalties. Payments are made in monthly
installments of $14,390 including principal and interest.
Note 4 - Related Party Transactions
(a) Property management fees incurred in accordance with the partnership
agreement with West Coast Realty Management, Inc., an affiliate of the
corporate General Partner, totaled $2,299 for the six months ended June 30,
1995, $6,924 for the six months ended June 30, 1994, $2,678 for the three
months ended June 30, 1995, and $3,414 for the three months ended
June 30, 1994.
(b) During the year ended December 31, 1990, the Partnership, in a joint
venture with Associated Planners Realty Income Fund (an affiliate), purchased
a one-story office building located in San Marcos, California (Note 2). The
acquisition was paid for entirely in cash totaling $3,119,000 of which
$311,900 was provided by the Partnership and $2,807,100 by Associated Planners
Realty Income Fund. The Partnership owns a 10% interest in this joint venture.
(c) The Partnership has a note payable to a General Partner of $150,000
at June 30, 1995 and December 31, 1994. The note outstanding bears interest
of 7.5% and is payable in equal installments of principal and interest
amortized over a 10 year period, with all remaining unpaid interest and
principal due on May 1, 1997.
Note 5 - Net Loss and Cash Distributions Per Limited Partnership Unit
The Net Loss per Limited Partnership Unit was computed in accordance
with the Partnership Agreement on the basis of the number of outstanding
Limited Partnership Units. No distributions were made during the three or
six months ended June 30, 1995 and June 30, 1994.<PAGE>
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Introduction
Associated Planners Realty Growth Fund (the "Partnership") was
organized in December 1986, under the California Revised Limited Partnership
Act. The Partnership began offering units for sale on October 20, 1987. As
of December 31, 1989, the Partnership had raised $2,061,000 in gross capital
contributions. The Partnership netted approximately $1,820,000 after sales
commissions and syndication costs.
The Partnership was organized for the purpose of investing in,
holding, and managing improved, leveraged income-producing property, such as
residential property, office buildings, commercial buildings, industrial
properties, and shopping centers. The Partnership intends to own and operate
such properties for investment over an anticipated holding period of
approximately five to ten years.
The Partnership's principal investment objectives are to invest in
rental real estate properties which will:
(1) Preserve and protect the Partnership's invested capital;
(2) Provide for cash distributions from operations;
(3) Provide gains through potential appreciation; and
(4) Generate Federal income tax deductions so that during the early
years of property operations, a portion of cash distributions may be treated
as a return of capital for tax purposes and, therefore, may not represent
taxable income to the limited partners.
The ownership and operation of any income-producing real estate is
subject to those risks inherent in all real estate investments, including
national and local economic conditions, the supply and demand for similar
types of properties, competitive marketing conditions, zoning changes,
possible casualty losses, and increases in real estate taxes, assessments,
and operating expenses, as well as others.
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
The Partnership is operated by West Coast Realty Advisors, Inc. ("WCRA")
(the corporate General Partner) and Mr. W. Thomas Maudlin Jr. (an individual
General Partner), collectively the "General Partner," subject to the terms of
the Amended and Restated Agreement of Limited Partnership. The Partnership
has no employees, and all administrative services are provided by WCRA, the
corporate General Partner.
Results of Operations
Operations for the quarter ended June 30, 1995, reflect an entire period
of operations for the Partnership's properties. Rental revenue for the three
and six months ended June 30, 1995, decreased from the three and six months
ended June 30, 1994 by approximately $16,374 and $38,207, respectively, as a
result of a vacancy at the San Marcos building from January 8, 1995 to February
13, 1995. In addition, the new tenant (No Fear Inc.) entered into a lease at
a rate that was 30% less than the rate on the lease of the prior tenant
(Professional Care Products). Costs and expenses related to the properties'
operation were similar for the quarter ended June 30, 1995 and the quarter
ended June 30, 1994. These same costs were $4,783 lower for the six months
ended June 30, 1995 vs. the six months ended June 30, 1994, as a result of
lower interest expense and property management fees expenditures. General
and administrative expenses were approximately equal for both the three and
six months ended June 30, 1995 and June 30, 1994.
At June 30, 1995, the Parkcenter Building was 98% occupied by nine
tenants.
In an effort to secure a debt reduction and/or restructure from the
holder of the first deed of trust on the Parkcenter Office Building property
("Parkcenter Property"), the Partnership elected to pay real estate taxes due
April 10, 1995 on the Parkcenter Property on June 30, 1995. Despite the
70% to 80% occupancy level at the property, it has been unable to generate a
positive cash flow. As a result the Partnership's General Partner has been
paying certain administrative costs of the Partnership, i.e., property
management fees, legal and accounting costs, general and administrative
fees, as well as certain leasehold improvement costs. As of June 30, 1995,
the amount of cash advanced to the Partnership by the General Partner was
$150,000. In addition, the General Partner and its affiliates have deferred
collection of fees and expenses totaling $177,971. The General Partner
is also pursing alternative solutions to improve the cash flow of the
Parkcenter Property and the Partnership.
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
Liquidity and Capital Resources
During the quarter ended June 30, 1995, the Partnership's cash reserves
decreased by $7,836 primarily due to the payment of property taxes and the
30% lower rate on the new tenant lease at the San Marcos property.
The Partnership had a net loss of $30,100, or $14.46 per limited
partnership unit, after depreciation expense of $16,599 for the quarter ended
June 30, 1995.
The Partnership's small cash reserve is invested primarily in a bank
money market account. This reserve is invested to provide stability and
safety of principal, competitive interest rates, and quick availability of
funds, in that order of importance.
The Partnership completed its acquisition program in 1990.
The Partnership continues to have its operations funded partially from
cash advances and deferral of fee collections from the General Partner and
its affiliates. The Partnership would not have sufficient liquidity to
operate as a going concern if this support from the General Partner was not
available.
The General Partner is actively seeking solutions to resolve the
Partnership's liquidity and probability problems. Failure to resolve these
problems could result in a forced sale or foreclosure of the Parkcenter
property, with possible negative tax consequences for the limited partners.
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
PART II
O T H E R I N F O R M A T I O N
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K
(a) Information required under this section has been included in the
financial statements.
(b) Reports on Form 8-K
None
<PAGE>
ASSOCIATED PLANNERS REALTY GROWTH FUND
(A California Limited Partnership)
S I G N A T U R E S
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.
ASSOCIATED PLANNERS REALTY GROWTH FUND
A California Limited Partnership
(Registrant)
By: WEST COAST REALTY ADVISORS, INC.
A California Corporation,
A General Partner
August 11, 1995
Date William T. Haas
William T. Haas
Director and Executive Vice President / Secretary
August 11, 1995
Date Michael G. Clark
Michael G. Clark
Vice President / Treasurer
