SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
___________
FORM 10Q
(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 0-17689
CLOVER INCOME PROPERTIES II, L.P.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
22-2811188
(IRS employer identification no.)
23 WEST PARK AVENUE, MERCHANTVILLE, NEW JERSEY 08109
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (609) 662-1116
________________________________________________________________
Former name, address and former fiscal year, if changed since
last report
Indicate by check 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
<TABLE>
CLOVER INCOME PROPERTIES II, L.P.
BALANCE SHEETS
(Unaudited)
ASSETS
<CAPTION>
September 30, December 31,
1995 1994
<S> <C> <C>
CURRENT ASSETS
Cash $ 206,782 $ 209,407
State tax refund receivable - 6,772
Total current assets 206,782 216,179
INVESTMENT IN THE WILLOWBROOK JOINT
VENTURE, at equity 4,061,949 4,192,427
OTHER DEFERRED COSTS, less amortization
of $185,297 and $166,971, respectively 299,326 317,652
TOTAL ASSETS $ 4,568,057 $ 4,726,258
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable $ 14,625 $ 18,250
Due to General Partner and affiliates - 2,000
Total current liabilities 14,625 20,250
PARTNERS' CAPITAL
General partner (deficit) (25,708) (24,181)
Limited partners 4,579,140 4,730,189
Total partners' capital 4,553,432 4,706,008
TOTAL LIABILITIES AND PARTNERS'
CAPITAL $ 4,568,057 $ 4,726,258
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
CLOVER INCOME PROPERTIES II, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
REVENUES
Rental income $ - $ 448,515
Interest income 2,849 6,983
Other income - 40,226
Forgiveness of debt - 120,043
Total revenues 2,849 615,767
EXPENSES
Depreciation and amortization 18,326 128,454
Operating expenses - 436,951
Professional services 57,393 19,792
Cost of legal proceedings - 98,065
General and administrative 12,991 6,816
Total expenses (Including affiliate
transactions of $7,660 and $36,922
for the nine months ended 09/30/95
and 09/30/94, respectively) 88,710 690,078
SHARE OF INCOME FROM THE
WILLOWBROOK JOINT VENTURE 110,893 97,754
INCOME BEFORE LOSS ON
SALE OF PROPERTY 25,032 23,443
LOSS ON SALE OF PROPERTY - (2,418,097)
NET INCOME (LOSS) $ 25,032 $ (2,394,654)
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT $ 1.42 $ (135.63)
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
CLOVER INCOME PROPERTIES II, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Three Months Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
REVENUES
Rental income $ - $ -
Interest income 869 4,858
Other income - 2,728
Forgiveness of debt - 120,043
Total revenues 869 127,629
EXPENSES
Depreciation and amortization 6,108 13,186
Operating expenses - 3,279
Professional services 43,695 5,588
Cost of legal proceedings - 2,151
General and administrative 377 2,235
Total expenses (Including
affiliate transactions of -0-
and $4,201 for the three months
ended 09/30/95 and 09/30/94,
respectively) 50,180 26,439
SHARE OF INCOME FROM THE
WILLOWBROOK JOINT VENTURE 16,603 19,398
INCOME (LOSS) BEFORE LOSS ON
SALE OF PROPERTY (32,708) 120,588
LOSS OF SALE OF PROPERTY - (2,418,097)
NET (LOSS) $ (32,708) $ (2,297,509)
NET (LOSS) PER LIMITED
PARTNERSHIP UNIT $ (1.85) $ (130.14)
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
CLOVER INCOME PROPERTIES II, L.P.
STATEMENT OF PARTNERS' CAPITAL (DEFICIT)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<CAPTION>
General Limited
Partner Partners Total
<S> <C> <C> <C>
Balances (Deficit) at
January 1, 1995 $ (24,181) $ 4,730,189 $ 4,706,008
Partners' distributions, $10.05
per limited partnership unit (1,777) (175,831) (177,608)
Net Income 250 24,782 25,032
Balance (Deficit) at
September 30, 1995 $ (25,708) $ 4,579,140 $ 4,553,432
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
CLOVER INCOME PROPERTIES II, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
OPERATING ACTIVITIES
Cash received from rentals $ - $ 452,161
Interest income received 2,849 6,983
Other income received - 27,015
Distributions received from The
Willowbrook Joint Venture 241,371 241,371
Cash paid for expenses (69,237) (768,965)
Net cash provided by (used in)
operating activities 174,983 (41,435)
INVESTING ACTIVITIES
Proceeds from sale of Property - 3,750,000
Settlement costs paid from sale of
Property - (46,556) Investment in the Willowbrook Joint
Venture - (4,115)
Net Cash provided by investing activities - 3,699,329
FINANCING ACTIVITIES
Partners' distributions (177,608) (3,759,323)
NET (DECREASE) IN CASH (2,625) (101,429)
CASH, beginning of period 209,407 302,108
CASH, end of period $ 206,782 $ 200,679
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
CLOVER INCOME PROPERTIES II, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
RECONCILIATION OF NET INCOME (LOSS)
TO CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net Income (Loss) $ 25,032 $ (2,394,654)
ADJUSTMENTS
Depreciation and amortization 18,326 128,454
Income from investment in The
Willowbrook Joint Venture (110,893) (97,754)
Loss on sale of property - 2,418,097
Forgiveness of debt - (120,043)
Distributions received from The
Willowbrook Joint Venture 241,371 241,371
(Decrease) increase in accounts payable (3,625) 302
(Decrease) in accrued land rent - (65,987)
(Decrease) in accrued expenses - (25,080)
(Decrease) in prepaid rents - (2,275)
Decrease in prepaid expenses - 2,861
Decrease (increase) in other receivables 6,772 (13,211)
Decrease in rents receivable - 5,921
(Decrease) in tenant security deposits - (15,804)
(Decrease) in due to affiliates (2,000) (103,633)
Total adjustments 149,951 2,353,219
Net cash provided by (used in)
operating activities $ 174,983 $ (41,435)
</TABLE>
The accompanying notes are an integral part of these statements.
CLOVER INCOME PROPERTIES II, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
Readers of this quarterly report should refer to the
Partnership's audited financial statements as of December 31,
1994, as certain footnote disclosures which would
substantially duplicate those contained in such audited
financial statements have been omitted from this report.
1. INVESTMENT IN THE WILLOWBROOK JOINT VENTURE:
On December 17, 1987, the Partnership acquired a 50% interest
in The Willowbrook Joint Venture (the Joint Venture) for
$6,450,000. The Joint Venture owns the Willowbrook
Apartments, a 299-unit mid-rise apartment complex located in
Baltimore, Maryland.
On April 8, 1992, the Partnership and Clover Income
Properties II, L.P., an affiliated partnership, consummated
an agreement which was effective April 1, 1992, with Clover
Income Properties III, L.P., (CIP III), an affiliated
partnership, pursuant to which CIP III acquired an interest
in The Willowbrook Joint Venture. The Partnership reduced
its interest from 50% to 42.91% and received a distribution
of $1,100,000 from the Joint Venture, of which $1,000,000 was
distributed to the limited partners in April 1992. A summary
of the Joint Venture's financial statements is as follows:
<TABLE>
<CAPTION>
For the Nine
Months Ended
September 30, 1995
<C> <S>
Current Assets $ 350,538
Investment property, net of accumulated depreciation 9,515,004
Other noncurrent assets 1,100
Total assets $ 9,866,642
Current liabilities $ 400,429
Capital -
Clover Income Properties, L.P. 3,736,160
Clover Income Properties II, L.P. 3,736,160
Clover Income Properties III, L.P. 1,993,893
</TABLE>
CLOVER INCOME PROPERTIES II, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
1. INVESTMENT IN THE WILLOWBROOK JOINT VENTURE (continued):
<TABLE>
<CAPTION>
For the Nine
Months Ended
September 30, 1995
<S> <C>
Total liabilities and capital $ 9,866,642
Revenues $ 1,523,808
Expenses 1,265,376
Net income $ 258,432
</TABLE>
The Joint Venture made distributions from operations to the
Partnership in the amount of $241,371 during the first nine
months of 1995. (Also see Note 3).
The investment in the Willowbrook Joint Venture, at equity of
$4,061,949 includes the Partnership's gain ($325,788) on the
sale of 14.18% of its interest in the Joint Venture before
the deduction of $10,758 in expenses relating to the sale and
the write-off of 14.18% of the unamortized deferred costs
$63,587 related to the initial acquisition of the Joint
Venture interest by the Partnership. Therefore, the amount
of the investment, at equity, reflected here does not
correspond to the Partnership's capital account balance in
the Joint Venture.
2. TRANSACTIONS WITH AFFILIATES:
The Knolls, which was sold July 1, 1994, was managed by an
affiliate of the General Partner pursuant to a management
agreement which provided for an annual fee not to exceed 5%
of the gross revenues from the Property. The General Partner
and its affiliates were entitled to reimbursement for
administrative services rendered to the Partnership, direct
expenses of Partnership operations and goods and services
used by and for the Partnership.
CLOVER INCOME PROPERTIES II, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
2. TRANSACTIONS WITH AFFILIATES (continued):
Transactions with affiliates are summarized below:
<TABLE>
<CAPTION>
Management Reimbursable
__Fees Costs
<S> <C> <C>
Amount payable at
January 1, 1995 $ - $ 2,000
Incurred during the nine months
ended September 30, 1995 - 7,660
Payments made in 1995 - (9,660)
Amount payable at
September 30, 1995 $ - $ -
</TABLE>
3. SUBSEQUENT DISTRIBUTION:
In October 1995, the partnership received a $26,819
distribution from the Willowbrook Joint Venture.
Additionally in October 1995, the Partnership made a cash
distribution of $55,103 to the limited partners and $557 to
the general partner.
4. GENERAL:
The financial statements reflect all adjustments which are,
in the opinion of the General Partner, necessary for a fair
statement of the results for the interim period presented.
Such adjustments are of a normal recurring nature.
<TABLE>
THE WILLOWBROOK JOINT VENTURE
BALANCE SHEETS
(Unaudited)
ASSETS
<CAPTION>
September 30, December 31,
1995 1994
<S> <C> <C>
CURRENT ASSETS
Cash $ 134,911 $ 193,081
Prepaid expenses 208,770 136,682
Rents receivable 6,857 868
Total current assets 350,538 330,631
INVESTMENT PROPERTY, at cost 13,420,164 13,378,885
Less - accumulated depreciation (3,905,160) (3,520,401)
Net investment property 9,515,004 9,858,484
OTHER ASSETS
Utility deposit 1,100 1,100
TOTAL ASSETS $ 9,866,642 $ 10,190,215
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Accounts payable $ - $ 17,447
Accrued expenses 30,778 26,563
Tenants' security deposits 33,342 40,748
Prepaid rents 10,030 8,936
Due to affiliate 326,279 326,240
Total current liabilities 400,429 419,934
PARTNERS' CAPITAL
Clover Income Properties, L.P. 3,736,160 3,866,638
Clover Income Properties II, L.P. 3,736,160 3,866,638
Clover Income Properties III, L.P. 1,993,893 2,037,005
Total partners' capital 9,466,213 9,770,281
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 9,866,642 $ 10,190,215
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
THE WILLOWBROOK JOINT VENTURE
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Nine Months Ended
September 30,1995 September 30, 1994
<S> <C> <C>
REVENUES
Rental income $ 1,500,565 $ 1,514,541
Other income 22,395 41,542
Interest income 848 2,645
Total revenues 1,523,808 1,558,728
EXPENSES
Depreciation 384,759 383,988
Operating expenses (Including
affiliate transactions of $16,977 and
$89,057 for the nine months
ended 9/30/95 and 9/30/94,
respectively) 873,438 931,413
Professional services 7,179 7,128
General & administrative - 8,388
Total expenses 1,265,376 1,330,917
NET INCOME $ 258,432 $ 227,811
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
THE WILLOWBROOK JOINT VENTURE
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
For the Three Months Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
REVENUES
Rental income $ 503,225 $ 500,366
Other income 8,778 8,010
Interest income 318 833
Total revenues 512,321 509,209
EXPENSES
Depreciation 128,253 128,206
Operating expenses (Including
affiliate transactions of $114 and
$29,163 for the three months
ended 9/30/95 and 9/30/94,
respectively) 343,144 327,668
Professional services 2,231 2,662
General & administrative - 5,467
Total expenses 473,628 464,003
NET INCOME $ 38,693 $ 45,206
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
THE WILLOWBROOK JOINT VENTURE
STATEMENTS OF PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<CAPTION>
Clover Clover Clover
Income Income Income
Properties, Properties Properties
L.P. II, L.P. III, L.P. Total
<S> <C> <C> <C> <C>
Balance January 1, 1995 $ 3,866,638 $ 3,866,638 $ 2,037,005 $ 9,770,281
Net income 110,893 110,893 36,646 258,432
Partners' distributions (241,371) (241,371) (79,758) (562,500)
Balance September 30, 1995 $ 3,736,160 $ 3,736,160 $ 1,993,893 $ 9,466,213
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
THE WILLOWBROOK JOINT VENTURE
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended
September 30, September 30,
1995 1994
<S> <C> <C>
OPERATING ACTIVITIES
Cash received from rentals $ 1,495,670 $ 1,517,689
Other income received 22,395 41,542
Interest income received 848 2,645
Cash paid for operating expenses (973,304) (1,002,733)
Net cash provided by operating activities 545,609 559,143
INVESTING ACTIVITIES
Cash paid for investment property (41,279) (62,266)
FINANCING ACTIVITIES
Partners' distributions (562,500) (562,500)
Partners' contributions - 9,592
Net cash (used in) financing activities (562,000) (552,908)
NET (DECREASE) IN CASH (58,170) (56,031)
Cash, beginning of period 193,081 178,813
Cash, end of period $ 134,911 $ 122,782
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
THE WILLOWBROOK JOINT VENTURE
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
For the Nine Months Ended
September 30, September 30,
1995 1994
<S> <C> <C>
RECONCILIATION OF NET INCOME
TO CASH PROVIDED BY OPERATING ACTIVITIES
NET INCOME $ 258,432 $ 227,811
Adjustments
Depreciation 384,759 383,988
(Increase) in prepaid expenses (72,088) (51,034)
(Increase) in rents receivable (5,989) (3,154)
(Decrease) increase in accounts payable (17,447) 11,770
Increase (decrease) in accrued expenses 4,215 (74)
(Decrease) in security deposits (7,406) (4,847)
Increase in prepaid rents 1,094 6,302
Increase (decrease) in due to affiliates 39 (11,619)
Total adjustments 287,177 331,332
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 545,609 $ 559,143
</TABLE>
The accompanying notes are an integral part of these statements.
THE WILLOWBROOK JOINT VENTURE
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
Readers of this quarterly report should refer to the Joint
Venture's audited financial statements as of December 31,
1994, as certain footnote disclosures which would
substantially duplicate those contained in such audited
financial statements have been omitted from this report.
1. INVESTMENT PROPERTY:
On December 17, 1987, the Joint Venture acquired the
Willowbrook Apartments, a mid-rise apartment complex
comprising 299 apartment units contained in eight five-story
buildings. The complex is located in Baltimore, Maryland.
The following is a summary of investment property as of
September 30, 1995.
<TABLE>
<S> <C>
Land $ 1,421,205
Building 11,003,748
Furniture and fixtures 995,211
13,420,164
Less: Accumulated depreciation (3,905,160)
$ 9,515,004
</TABLE>
2. TRANSACTIONS WITH AFFILIATES:
Effective February 21, 1995, NPI-CL Management, L.P. ("NPI")
which is unaffiliated with the Partners, replaced an
affiliate of the Partners as Property Manager. Until this
time, as compensation for property management services
performed by an affiliate of the Partners with respect to the
Property, the affiliate was entitled to a management fee in
an amount not to exceed 5% of gross revenues.
The general partners of CIP, CIP II and CIP III and their
affiliates were entitled to reimbursement for administrative
services rendered to the Joint Venture and direct expenses of
operations and goods and services used by and for the Joint
Venture. For the nine months ended September 30, 1995,
$4,227 of such costs were incurred by the Joint Venture.
THE WILLOWBROOK JOINT VENTURE
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
2. TRANSACTIONS WITH AFFILIATES (continued):
Transactions with affiliates are summarized below:
<TABLE>
<CAPTION>
Management Reimbursable
Fees Costs
<S> <C> <C>
Amount payable at January 1, 1995 $ 319,132 $ 7,108
Incurred during nine months
ended September 30, 1995 $ 12,750 $ 4,227
Payments made during 1995 (12,750) (4,188)
Amount payable at
September 30, 1995 $ 319,132 $ 7,147
</TABLE>
3. SUBSEQUENT DISTRIBUTIONS:
In October, 1995, the Joint Venture paid total distributions
of $62,500 to its partners.
4. GENERAL:
The financial statements reflect all adjustments which are,
in the opinion of the joint venture partners, necessary for a fair
statement of results for the interim periods presented. Such
adjustments are of a normal recurring nature.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Financial Condition, Liquidity and Capital Resources
The Partnership's only remaining interest in real estate is a
42.91% interest in The Willowbrook Joint Venture, a joint venture
which owns the Willowbrook Apartments. Consequently, the
Partnership's primary remaining source of operating cash flow will
be distributions from The Willowbrook Joint Venture.
On September 30, 1995, the Partnership had cash on hand of
$206,782, as compared to $209,407 on December 31, 1994. These
funds, along with future operating cash flow, will be utilized for
working capital needs and for distributions to the Limited
Partners.
The Partnership's net cash flow from operations was $174,983
for the nine months ended September 30, 1995 as compared to net
cash used in operations of $41,435 for the same period in 1994.
The increase in cash flow is primarily the result of a decrease in
cash paid for expenses, partially offset by a decrease in cash
received from rentals as a result of the sale of the Knolls on
July 1, 1994.
The Willowbrook Joint Venture's net cash flow from operations
was $545,609 for the nine months ended September 30, 1995 as
compared to $559,143 for the same period in 1994. The decrease in
cash flow from operations over the period was due to a decrease in
cash received from rentals, interest and other income, partially
offset by a decrease in cash paid for operating expenses.
The General Partner believes that the Partnership's current
and future cash flows will be sufficient to meet the Partnership's
liquidity requirements, absent unanticipated operating cost
increases or adverse market conditions.
As of September 30, 1995, the Partnership had paid all
outstanding amounts owed to Clover and its affiliates. As of
September 30, 1995, The Willowbrook Joint Venture, however, owed a
total of $326,279 to Clover and its affiliates, including $7,147
for reimbursable costs and $319,132 for accrued property
management fees. The payment of such amounts will be made from
The Willowbrook Joint Venture's cash flow when available and from
the proceeds of any sales or refinancing of the assets of The
Willowbrook Joint Venture.
During the second quarter of 1995, one elevator at
Willowbrook Apartments was replaced for a total cost of $22,857.
During the third quarter of 1995, air conditioning equipment was
purchased at a cost of $18,422. These amounts are reflected in
cash paid for investing activities. One common area hallway has
been recarpeted and painted and additional common areas are
scheduled to be recarpeted and painted during the last quarter of
1995. A roof replacement and plans to resurface and restripe the
parking lot originally planned for 1995 have been indefinitely
postponed.
Effective February 21, 1995, the General Partner and certain
of its affiliates entered into an agreement with NPI-CL
Management L.P. ("NPI"), an entity unaffiliated with the
Partnership or its General Partner, pursuant to which NPI began
providing day-to-day asset management services for the
Partnership as well as property management services for the Joint
Venture. NPI is an affiliate of National Property Investors,
Inc., a diversified real estate management company with offices
in Jericho, New York and Atlanta, Georgia.
On August 17, 1995, the partners of NPI agreed to sell their
interest in NPI to an affiliate of Insignia Financial Group, Inc.
("Insignia"). According to Commercial Property News and the
National Multi-Housing Council, Insignia is the largest property
manager in the United States. The sale of the partnership
interests in NPI is subject to certain conditions and is expected
to close in January 1996. The General Partner does not believe
this transaction will have a significant impact on the
Partnership.
Results of Operations
Three and Nine Months Ended September 30, 1995 vs.
September 30, 1994
Until the sale of the Knolls at Newgate Apartments, the
Partnership earned revenues primarily from rental income from the
Knolls. Revenues from the Willowbrook Apartments are not included
in Partnership revenues.
There was no other income for the three and nine months ended
September 30, 1995 as compared to $2,728 and $40,226 for the same
periods in 1994. The decrease in other income for the three and
nine month periods ended September 30, 1995 was primarily due to
refunds of state income tax overpayments received in the first
quarter of 1994 and other income received by the Knolls in 1994.
There were no operating expenses for the three and nine
months ended September 30, 1995 due to the sale of the Knolls
Apartments in 1994.
The Partnership's loss before depreciation and amortization
for the three months ended September 30, 1995 was $26,600 as
compared to $2,284,323 for the same period in 1994. For the nine
months ended September 30, 1995, the Partnership had income before
depreciation and amortization of $43,358 as compared to a loss
before depreciation and amortization of $2,266,200 for the same
period in 1994. The decreased loss is primarily due to the loss
on the sale of The Knolls, which was recorded in the third quarter
of 1994, somewhat offset by forgiveness of debt, also recorded in
the third quarter of 1994, and by increased legal and accounting
fees incurred in the third quarter of 1995 in connection with
efforts to sell the Willowbrook Apartments. Income before
depreciation and amortization for the nine months ended September
30, 1995 also improved due to the sale of The Knolls and to
$80,860 of legal costs incurred in 1994 which were not recurring.
Rental income for the Willowbrook Apartments, as operated by
The Willowbrook Joint Venture, for the three and nine months ended
September 30, 1995 was $503,225 and $1,500,565 as compared to
$500,366 and $1,514,541 for the same periods in 1994. Other
income for the three and nine months ended September 30, 1995 was
$8,778 and $22,395 as compared to $8,010 and $41,542 for the same
periods in 1994. Interest income for the three and nine months
ended September 30, 1995 was $318 and $848 as compared to $833 and
$2,645 for the same periods in 1994. The decrease in rental
income for the nine months ended September 30, 1995, as compared
to the same period in 1994, is primarily the result of a decrease
in average rental rates over the period.
The average effective rental rates for the Willowbrook
Apartments for the three and nine months ended September 30, 1995
were $1,786 and $5,360 as compared to $1,787 and $5,409 for the
same periods in 1994. The average occupancy for the Willowbrook
Apartments for the three and nine months ended September 30, 1995
was 94.2% and 93.6% as compared to 93.5% and 93.5% for the same
periods in 1994.
Operating expenses for the Willowbrook Apartments for the
three and nine months ended September 30, 1995 were $343,144 and
$873,438 as compared to $327,668 and $931,413 for the same periods
in 1994. The increase in operating expenses for the three months
ended September 30, 1995, as compared to the same period in 1994,
is primarily due to increased costs of painting, wallcovering,
carpet replacement and advertising incurred during the third
quarter of 1995, partially offset by lower utility costs. The
decrease in operating expenses for the nine months ended September
30, 1995, as compared to the same period in 1994, is primarily the
result of decreased utility expense due to the very mild winter in
the first quarter of 1995 as well as decreased salaries and wages.
Additionally, snow removal was $860 in the first quarter of 1995,
compared to $9,380 in the same period of 1994.
The Joint Venture's income before depreciation and
amortization for the three and nine months ended September 30,
1995 was $166,946 and $643,191 as compared to $173,412 and
$611,799 for the same periods in 1994. The decrease in income
before depreciation and amortization for the three months ended
September 30, 1995, as compared to the same period in 1994, is
primarily due to increased operating expenses, partially offset by
slightly higher rental income. The increase in income before
depreciation and amortization for the nine months ended September
30, 1995, as compared to the same period in 1994, is primarily due
to decreased operating expenses, partially offset by decreases in
rental, other and interest incomes.
PART II-OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No report on Form 8-K was required to be filed during
the period.
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 hereunto duly authorized.
CLOVER INCOME PROPERTIES II, L.P.
(Registrant)
By: C.I.P. II Management Corp.
By: /S/ Donald N. Love
Donald N. Love, President
By: /S/ Stanley E. Borucki
Stanley E. Borucki, Treasurer
Date: November 13, 1995
??
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
Quarterly Report on Form 10-Q for the quarter ended September 30, 1995 for
Clover Income Properties II, L.P. and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 206,782
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 206,782
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,568,057
<CURRENT-LIABILITIES> 14,625
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 4,553,432
<TOTAL-LIABILITY-AND-EQUITY> 4,568,057
<SALES> 0
<TOTAL-REVENUES> 2,849
<CGS> 0
<TOTAL-COSTS> 88,710
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 25,032
<INCOME-TAX> 0
<INCOME-CONTINUING> 25,032
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 25,032
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
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