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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 30, 1999
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Net 1 L.P.
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(Exact name of registrant as specified in its charter)
Delaware 33-16973 13-3421566
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(State or other jurisdiction of) (Commission File Number) (IRS Employer
Identification No.)
c/o Lexington Corporate Properties Trust
355 Lexington Avenue
New York, New York 10017
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(Address of principal Executive offices) (Zip code)
Registrant's telephone number, including area code (212) 672-7200
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N/A
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(Former name or former address, if changed since last report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On June 30, 1999, Net 1 L.P. (the "Partnership") sold for cash, sixteen
properties (the "Properties") to AutoZone, Inc., ("Autozone") for approximately
$8.75 million. The Properties, aggregating 104,600 square feet net leased to
Autozone, consist of retail stores located in Alabama (2), Florida (2), Georgia
(1), New Mexico (5) and Texas (6).
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
Autozone is a publicly held company listed on the New York Stock Exchange.
As of the year ended August 31, 1998, Autozone reported total consolidated
assets, liabilities and stockholders' equity of approximately $2.7 billion,
$1.4 billion and $1.3 billion, respectively. For the year ended August 31,
1998, Autozone reported total consolidated revenues and net income of
approximately $3.2 billion and $227 million, respectively.
(b) Pro Forma Financial Information
Pro Forma Consolidated Balance Sheet at March 31, 1999
Pro Forma Consolidated Statements of Income for the year ended December 31,
1998 and the quarter ended March 31, 1999
Notes to Pro Forma Consolidated Financial Statements
(c) Exhibits
None.
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NET 1 L.P.
PRO FORMA CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENTS OF INCOME
The accompanying Pro Forma Consolidated Balance Sheet of Net 1 L.P. as of March
31, 1999, gives effect to the sale of the Properties as if such occurred on
March 31, 1999.
The accompanying Pro Forma Consolidated Statements of Income for the year ended
December 31, 1998 and the quarter ended March 31, 1999, give effect to the sale
of the Properties, as if such occurred as of January 1, 1998.
The management of the Partnership prepared the Pro Forma Consolidated Balance
Sheet and Consolidated Statements of Income. These pro forma consolidated
statements may not be indicative of the results that would have actually
occurred if such sale had been in effect on the dates indicated. Also, they may
not be indicative of the results that may be achieved in the future. The Pro
Forma Consolidated Balance Sheet and Consolidated Statements of Income should
be read in conjunction with the Partnership's audited financial statements as
of December 31, 1998 (which are contained in the Partnership's Form 10-K), and
the accompanying notes thereto.
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NET 1 L.P.
PRO FORMA CONSOLIDATED BALANCE SHEET
(In thousands, except Units and per Unit amounts)
March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
ASSETS Historical Adjustments Pro Forma
------ ---------- ----------- ---------
<S> <C> <C> <C>
Real estate, net $ 17,191 $ -- $ 17,191
Properties held for sale 5,920 (5,920) --
Cash and cash equivalents 1,596 (118) 1,478
Restricted cash -- 8,708 8,708
Rent receivable 879 -- 879
Other assets 161 -- 161
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Total assets $ 25,747 $ 2,670 $ 28,417
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LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
Mortgage notes payable $ 5,255 $ -- $ 5,255
Accrued interest payable 28 -- 28
Accounts payable and other liabilities 36 -- 36
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5,319 -- 5,319
-------- -------- --------
Partners' capital (deficit):
General Partner (162) 53 (109)
Limited Partners ($1,000 per Unit, 50,000 Units
authorized, 30,772 Units issued
and outstanding) 20,590 2,617 23,207
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20,428 2,670 23,098
-------- -------- --------
Total liabilities and partners' capital $ 25,747 $ 2,670 $ 28,417
======== ======== ========
</TABLE>
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NET 1 L.P.
NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET
(Unaudited)
1. Pro Forma Adjustments
The adjustment in cash and cash equivalents represent the related expenses
incurred from the sale of the Properties.
The adjustment to restricted cash represents the receipt of the sale
proceeds.
The adjustment to partners' capital (deficit) and properties held for sale
reflect the sale of the Properties.
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NET 1 L.P.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per Unit amounts)
Quarter ended March 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
---------- ----------- ---------
Revenue:
<S> <C> <C> <C>
Rental $ 1,127 $ (184) $ 943
Interest and other 20 -- 20
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1,147 (184) 963
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Expenses:
Interest expense 122 -- 122
Depreciation 118 (25) 93
General and administrative 119 -- 119
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359 (25) 334
------- ------- -------
Net Income $ 788 $ (159) $ 629
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Net income per Unit
of limited partnership interest $ 25.10 $ 20.03
======= =======
</TABLE>
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NET 1 L.P.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per Unit amounts)
Year ended December 31, 1998
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
---------- ----------- ---------
Revenue:
<S> <C> <C> <C>
Rental $ 3,265 $ (798) $ 2,467
Interest and other 82 -- 82
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3,347 (798) 2,549
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Expenses:
Interest expense 510 510
Depreciation 476 (100) 376
General and administrative 548 -- 548
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1,534 (100) 1,434
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Net Income $ 1,813 $ (698) $ 1,115
======= ======= =======
Net income per Unit
of limited partnership interest (*) $54.82 to $59.50 $33.71 to $36.59
================ ================
</TABLE>
(*) Amounts allocated to unit holders vary depending on the dates they became
unit holders.
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NET 1 L.P.
NOTES TO PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
1. Pro Forma Adjustments
The adjustment to rental revenue relates to the revenue earned from the
Properties.
The adjustment to depreciation relates to the depreciation recognized
for the Properties.
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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.
Net 1 L.P.
By: Lepercq Net 1 L.P.
its general partner
By: Lepercq Net 1 Inc.
its general partner
Date: July 15, 1999 By: \s\ E. Robert Roskind
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E. Robert Roskind
President
