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Previous: ENEX INCOME & RETIREMENT FUND SERIES 1 LP, 10KSB/A, 1996-11-12 |
Next: IEA INCOME FUND VIII, 10-Q, 1996-11-12 |
UNITED STATES
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, 1996
--------------------------------------
[ ] 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
0-18504
PARTICIPATING INCOME PROPERTIES II, L.P.
and
FFCA INVESTOR SERVICES CORPORATION 88-C
- --------------------------------------------------------------------------------
(Exact Name of Co-Registrants as Specified in Their
Organizational Documents)
Delaware 86-0588505
- --------------------------------------------------------------------------------
(Partnership State of Organization) (Partnership I.R.S. Employer
Identification Number)
Delaware 86-0588507
- --------------------------------------------------------------------------------
(Corporation State of Incorporation) (Corporation I.R.S. Employer
Identification Number)
The Perimeter Center
17207 North Perimeter Drive
Scottsdale, Arizona 85255
- --------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
Co-Registrants' telephone number including area code (602) 585-4500
-------------------------
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>
PART 1 - FINANCIAL INFORMATION
Item l. Financial Statements.
------- ---------------------
PARTICIPATING INCOME PROPERTIES II, L.P.
BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
------
CASH AND CASH EQUIVALENTS $ 3,710,221 $ 3,818,927
RECEIVABLES FROM LESSEES 187,000 181,433
PROPERTY SUBJECT TO OPERATING LEASES, at cost
Land 11,709,570 11,709,570
Buildings 54,004,577 54,004,577
Equipment 5,906,921 5,906,921
------------ ------------
Total 71,621,068 71,621,068
Less-Accumulated depreciation 18,881,900 16,689,197
------------ ------------
52,739,168 54,931,871
------------ ------------
Total assets $ 56,636,389 $ 58,932,231
============ ============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
DISTRIBUTION PAYABLE TO LIMITED PARTNERS $ 2,115,034 $ 2,101,344
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 64,236 62,696
DEFERRED INCOME 937,026 1,261,059
------------ ------------
Total liabilities 3,116,296 3,425,099
------------ ------------
PARTNERS' CAPITAL (DEFICIT):
General partners (183,378) (163,507)
Limited partners 53,703,471 55,670,639
------------ ------------
Total partners' capital 53,520,093 55,507,132
------------ ------------
Total liabilities and partners' capital $ 56,636,389 $ 58,932,231
============ ============
</TABLE>
<PAGE>
PARTICIPATING INCOME PROPERTIES II, L.P.
STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
9/30/96 9/30/95 9/30/96 9/30/95
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Rental $1,865,905 $1,865,905 $5,597,715 $5,597,715
Participating rentals 553,874 629,751 1,726,072 1,797,359
Interest and other 39,023 38,819 116,803 124,145
---------- ---------- ---------- ----------
2,458,802 2,534,475 7,440,590 7,519,219
---------- ---------- ---------- ----------
EXPENSES:
General partner and
affiliate fees 211,229 220,067 642,583 650,067
Depreciation 745,063 723,821 2,192,703 2,171,472
Operating 43,254 44,936 142,564 162,103
---------- ---------- ---------- ----------
999,546 988,824 2,977,850 2,983,642
---------- ---------- ---------- ----------
NET INCOME $1,459,256 $1,545,651 $4,462,740 $4,535,577
========== ========== ========== ==========
NET INCOME ALLOCATED TO:
General partners $ 14,593 $ 15,457 $ 44,627 $ 45,356
Limited partners 1,444,663 1,530,194 4,418,113 4,490,221
---------- ---------- ---------- ----------
$1,459,256 $1,545,651 $4,462,740 $4,535,577
========== ========== ========== ==========
NET INCOME PER LIMITED
PARTNERSHIP UNIT (based on
82,834 units held by limited partners) $ 17.44 $ 18.47 $ 53.34 $ 54.21
========== ========== ========== ==========
</TABLE>
<PAGE>
PARTICIPATING INCOME PROPERTIES II, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners
General -----------------------------
Partners Number Total
Amount of Units Amount Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
BALANCE, December 31, 1995 $ (163,507) 82,834 $ 55,670,639 $ 55,507,132
Net income 44,627 -- 4,418,113 4,462,740
Distributions to partners (64,498) -- (6,385,281) (6,449,779)
------------ ------------ ------------ ------------
BALANCE, September 30, 1996 $ (183,378) 82,834 $ 53,703,471 $ 53,520,093
============ ============ ============ ============
</TABLE>
<PAGE>
PARTICIPATING INCOME PROPERTIES II, L.P.
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 4,462,740 $ 4,535,577
Adjustments to net income:
Depreciation 2,192,703 2,171,472
Change in assets and liabilities:
Increase in receivables from lessees (5,567) (20,000)
Increase (decrease) in accounts payable
and accrued expenses 1,540 (70,633)
Decrease in deferred income (324,033) (205,665)
----------- -----------
Net cash provided by operating activities 6,327,383 6,410,751
CASH FLOWS FOR FINANCING ACTIVITIES:
Distributions to partners (6,436,089) (6,392,704)
----------- -----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (108,706) 18,047
CASH AND CASH EQUIVALENTS, beginning of period 3,818,927 3,742,030
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 3,710,221 $ 3,760,077
=========== ===========
</TABLE>
<PAGE>
PART I.- FINANCIAL INFORMATION
- ------------------------------
Item 2. Management's Discussion and Analysis of
- ------- Financial Condition and Results of Operations
---------------------------------------------
As of September 30, 1996, Participating Income Properties II, L.P., a
Delaware limited partnership, (the Registrant), had received $82,834,000
in gross proceeds from its offering of Units. Net funds available for
investment, after payment of sales commissions, organizational costs and
acquisition costs, amounted to $71,956,541. The offering of Units is the
Registrant's sole source of capital, and since the final closing of
limited partnership units was held on December 11, 1989, the Registrant
will not receive additional funds from the offering. The Registrant was
fully invested in thirteen travel plaza properties by June 1991.
The Registrant declared a cash distribution to the limited partners of
$2,114,406 for the quarter ended September 30, 1996 (the period), which
combined with the first and second quarterly distributions of $4,270,875
amounts to $6,385,281 year to date. During the period, all net proceeds
not invested in real estate were invested in Government Agency discount
notes and bank repurchase agreements (which are secured by United States
Treasury and Government obligations).
During the period, the Registrant received base rental revenue pursuant to
its lease arrangements in the amount of $1,865,905, unchanged from the
same period of the prior year. Base rental revenue for the period includes
the recognition of approximately $69,000 of income previously deferred. In
addition, the Registrant received or accrued participating rentals of
$553,874 for the period which were comparable to the previous three
quarters. Participating rentals for the quarter ended September 30, 1995
of $629,751 were especially high compared to the four quarters that
followed. Total expenses remained relatively constant between quarters.
The decrease in total assets reflected in the Registrant's financial
statements filed with this Report is mainly attributable to the
depreciation allowance, which is deducted for accounting purposes from the
cost of the assets on the Registrant's books.
In the opinion of management, the financial information included in this
report reflects all adjustments necessary for fair presentation. All such
adjustments are of a normal recurring nature.
<PAGE>
FFCA INVESTOR SERVICES CORPORATION 88-C
---------------------------------------
BALANCE SHEET - SEPTEMBER 30, 1996
----------------------------------
ASSETS
Cash $100
Investment in Participating Income Properties II, L.P., at cost 100
----
Total Assets $200
====
LIABILITY
Payable to Parent $100
STOCKHOLDER'S EQUITY
Common Stock; $l par value; 100 shares authorized,
issued and outstanding 100
----
Liability and Stockholder's Equity $200
====
Note: FFCA Investor Services Corporation 88-C (88-C) was organized on August 11,
1987 to act as the assignor limited partner in Participating Income Properties
II, L.P. (PIP-II).
The assignor limited partner is the owner of record of the limited
partnership units of PIP-II. All rights and powers of 88-C have been assigned to
the holders, who are the registered and beneficial owners of the units. Other
than to serve as assignor limited partner, 88-C has no other business purpose
and will not engage in any other activity or incur any debt.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by
the undersigned thereunto duly authorized.
PARTICIPATING INCOME PROPERTIES II, L.P.
By FRANCHISE FINANCE CORPORATION OF AMERICA II
Corporate General Partner
Date: October 7, 1996 By /s/ John R. Barravecchia
----------------------------------------------
John R. Barravecchia, Chief Financial Officer
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
co-registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
FFCA INVESTOR SERVICES CORPORATION 88-C
Date: October 7, 1996 By /s/ John R. Barravecchia
---------------------------------------
John R. Barravecchia, President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AS OF SEPTEMBER 30, 1996 AND
THE STATEMENT OF INCOME FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000820806
<NAME> PARTICIPATING INCOME PROPERTIES II, L.P.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<CASH> 3,710,221
<SECURITIES> 0
<RECEIVABLES> 187,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 71,621,068
<DEPRECIATION> 18,881,900
<TOTAL-ASSETS> 56,636,389
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 53,520,093
<TOTAL-LIABILITY-AND-EQUITY> 56,636,389
<SALES> 0
<TOTAL-REVENUES> 7,440,590
<CGS> 0
<TOTAL-COSTS> 2,977,850
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 4,462,740
<INCOME-TAX> 0
<INCOME-CONTINUING> 4,462,740
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,462,740
<EPS-PRIMARY> 53.34
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AS OF SEPTEMBER 30 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
BALANCE SHEET.
</LEGEND>
<CIK> 0000820807
<NAME> FFCA INVESTOR SERVICES CORPORATION 88-C
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<CASH> 100
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 200
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 100
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 200
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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