<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 10-Q/A
AMENDMENT NO. 1 TO:
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1995
___ 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 1-9639
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-2565432
(State or other jurisdiction of (I.R.S. Employer I.D. Number)
incorporation or organization)
12011 SAN VICENTE BLVD., SUITE 707
LOS ANGELES, CALIFORNIA 90049
(Address of principal executive offices) Zip Code
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (310) 476-7793
NOT APPLICABLE
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 ___.
Shares of Beneficial Interest outstanding
as of March 31, 1995 - 9,324,317
<PAGE>
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
PART I - FINANCIAL INFORMATION
Item 1: Consolidated Balance Sheets (Unaudited) (Note 1)
<TABLE>
<CAPTION>
Mar. 31, Dec. 31,
1995 1994
--------------------
($ in thousands)
<S> <C> <C>
ASSETS
Investments in Rental Properties.................
Land........................................... $ 44,220 $ 44,213
Buildings and improvements..................... 164,114 162,015
--------- ---------
208,334 206,228
Less accumulated depreciation................ ( 20,103) ( 18,889)
--------- ---------
188,231 187,339
Investment in Unconsolidated Partnership......... 1,416 1,524
Notes Receivable Secured by Real Properties...... 5,384 7,437
Cash............................................. 1,362 867
Other Assets..................................... 1,023 1,798
--------- ---------
$197,416 $198,965
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes Payable.................................... $ 87,261 $ 88,675
Accounts Payable and Accrued Expenses............ 2,053 1,901
Distributions Payable to Shareholders............ 3,310 3,299
-------- --------
92,624 93,875
-------- --------
SHAREHOLDERS' EQUITY
Shares of Beneficial Interest - no par value -
unlimited shares authorized; 9,324,317 shares
in 1995 and 9,294,251 shares in 1994 issued
and outstanding................................ 104,792 105,090
-------- --------
$197,416 $198,965
======== ========
</TABLE>
See accompanying Notes to Financial Information
<PAGE>
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
PART I - FINANCIAL INFORMATION
Item 1: Consolidated Statements of Income (Unaudited) (Note 1)
<TABLE>
<CAPTION>
For the Three Months Ended
March 31, March 31,
1995 1994
--------------------------
($ in thousands, except
per-share data)
<S> <C> <C>
REVENUES
Rental.............................................. $8,066 $5,719
Interest/Other...................................... 351 290
------ ------
8,417 6,009
------ ------
REAL ESTATE EXPENSES
Depreciation........................................ 1,322 851
Interest............................................ 1,733 605
Property Taxes...................................... 469 252
Repairs and Maintenance............................. 435 285
Insurance........................................... 59 31
Leasing Commissions and Payroll..................... 519 320
Utilities........................................... 520 350
Other............................................... 428 260
------ ------
5,485 2,954
------ ------
ADMINISTRATIVE EXPENSES
Trustees Fees....................................... 30 21
Professional Services............................... 37 36
Salaries and Overhead............................... 252 231
------ ------
319 288
------ ------
Net income............................................ $2,613 $2,767
====== ======
Weighted Average Shares Outstanding (in thousands).... 9,306 9,246
Per Share Data
Net Income.......................................... $ .28 $ .30
====== ======
Cash Distributions.................................. $ .355 $ .330
====== ======
</TABLE>
See accompanying Notes to Financial Information
<PAGE>
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
PART I - FINANCIAL INFORMATION
Item 1: Consolidated Statements of Cash Flows (Unaudited) (Note 1)
<TABLE>
<CAPTION>
For the Three Months Ended
March 31, March 31,
1995 1994
--------------------------
($ in thousands)
<S> <C> <C>
Cash flow from operating activities:
Net income.......................................... $2,613 $ 2,767
Adjustment to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization....................... 1,345 871
Decrease (increase) other assets.................... 884 ( 259)
Increase in accounts payable........................ 153 254
------ -------
Net cash provided by operating activities............. 4,995 3,633
------ -------
Cash flows from investing activities:
Additions to buildings and improvements............. (2,106) ( 306)
Purchases of rental properties...................... -0- (20,142)
Collections on notes receivable..................... 2,054 6
------ -------
Net Cash (used in) provided by
investing activities................................ ( 52) (20,442)
------ -------
Cash flow from financing activities:
Principal payments on notes payable and lines of
credit............................................. (1,414) (32,750)
Distributions to Shareholders....................... (3,102) ( 2,909)
Proceeds from long-term unsecured borrowings........ -0- 55,000
Cash proceeds from sale of Shares of Beneficial
Interest........................................... 68 32
------ -------
Net cash provided by (used in) financing
activities........................................... (4,448) 19,373
------ -------
Net increase in cash.................................. 495 2,564
Cash at beginning of period........................... 867 218
------ -------
Cash at end of period................................. $1,362 $ 2,782
====== =======
</TABLE>
See accompanying Notes to Financial Information
<PAGE>
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
PART I - FINANCIAL INFORMATION (Unaudited)
Item 1: Notes to Financial Information
Note 1: Reference is made to Notes to Audited Consolidated Financial
Statements appearing in the Trust's Annual Report on Form 10-K, as amended,
for the year ended December 31, 1994.
Note 2: The accompanying unaudited consolidated financial statements
are prepared in accordance with instructions to Form 10-Q and in the opinion
of management, include all material adjustments (consisting only of normal
recurring accruals) which are necessary for a fair presentation of the
results for the interim periods shown. The results for the three month
period ended March 31, 1995 are not necessarily indicative of the results to
be expected for the full year.
Note 3: The consolidated financial statements include the accounts of
REIT-Santa Maria Properties, Ltd., a limited partnership in which the Trust
is general partner and has significantly all the partnership capital. The
accounts of the limited partnership have been consolidated with those of the
Trust as of April 15, 1981, the date when the partnership interest was
acquired.
Note 4: No provision has been made for income taxes as the Trust
believes that it qualifies as a real estate investment trust under Sections
856-860 of the Internal Revenue Code and under similar state statutes.
<PAGE>
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
PART I - FINANCIAL INFORMATION (Unaudited)
Item 2: Management's Discussion and Analysis of Financial Condition and
Results of Operations
OVERVIEW
Real Estate Investment Trust of California is a regionally focused,
self-administered equity real estate investment trust which owns a
diversified portfolio of real estate investments. The Trust currently
invests primarily in apartment communities which offer attractive current
returns, solid potential for long-term appreciation and earnings growth. The
continuing policy of the Trust is to emphasizecurrent returns rather than the
realization of capital gains through property dispositions, although in
furtherance of the strategy emphasizing apartment investments, the Trust is
contemplating the possible disposition of certain shopping center
investments. Revenues of the Trust consist primarily of rental income
derived from its portfolio of income-producing properties and to a much
lesser extent interest income from secured notes receivable.
The Trust continues to focus on equity investments in apartment
communities in various diversified markets, including Northern and Southern
California, Arizona and Nevada. Market conditions have adjusted investment
yields of apartment communities more in line with the general real estate
market for investment grade real estate. In furtherance of this strategic
focus, during 1994 the Trust acquired nine apartment communities totaling
1,381 units. These and prior acquisitions are the basis of a major impact on
the financial operations of the Trust. No apartment communities were
acquired in the first quarter of 1995, as the Trust focused its activities on
the management of its core portfolio of assets.
The Trust acquired the following apartment properties in 1991, 1992,
1993 and 1994:
<TABLE>
<CAPTION>
MONTH # OF PROPERTY PURCHASE PER
ACQUIRED UNITS LOCATION PRICE UNIT
- -------------------------------------------------------------------------------
FOR YEAR 1991
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
WindRush Village
Apartments March 366 Colton, CA $15,450,000 $42,200
- -------------------------------------------------------------------------------
Los Senderos
Apartments April 120 Phoenix, AZ 3,200,000 26,700
- -------------------------------------------------------------------------------
Brentwood
Apartments December 224 Phoenix, AZ 3,950,000 17,600
- -------------------------------------------------------------------------------
Shadow Bend
Apartments December 108 Scottsdale, AZ 3,200,000 29,600
- -------------------------------------------------------------------------------
FOR YEAR 1992
- -------------------------------------------------------------------------------
Park Scottsdale
Apartments September 128 Scottsdale, AZ $4,175,000 32,600
- -------------------------------------------------------------------------------
Monte Vista
Apartments December 60 Phoenix, AZ 900,000 15,000
- -------------------------------------------------------------------------------
Ocotillo
Apartments December 173 Phoenix, AZ 2,400,000 13,900
- -------------------------------------------------------------------------------
FOR YEAR 1993
- -------------------------------------------------------------------------------
Telegraph Canyon
Villas Apartments February 183 Chula Vista , CA $11,200,000 61,200
- -------------------------------------------------------------------------------
Posada del Este
Apartments April 148 Phoenix, AZ 3,400,000 23,000
- -------------------------------------------------------------------------------
Lakeview
Apartments August 300 San Diego, CA 15,300,000 51,000
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
MONTH # OF PROPERTY PURCHASE PER
ACQUIRED UNITS LOCATION PRICE UNIT
- -------------------------------------------------------------------------------
FOR YEAR 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Hazel Ranch
Apartments February 208 Fair Oaks, CA $8,900,000 42,800
- -------------------------------------------------------------------------------
The Summit
Apartments February 125 Chino Hills, CA 7,495,000 60,000
- -------------------------------------------------------------------------------
Countryside Village
Apartments February 96 El Cajon, CA 3,700,000 38,500
- -------------------------------------------------------------------------------
Stonegate
Apartments June 310 Phoenix, AZ 13,550,000 43,700
- -------------------------------------------------------------------------------
Cypress Springs II
Apartments June 144 Las Vegas, NV 7,500,000 52,100
- -------------------------------------------------------------------------------
Tango
Apartments July 136 Las Vegas, NV 7,700,000 56,600
- -------------------------------------------------------------------------------
Shaliko
Apartments October 151 Rocklin, CA 8,550,000 56,600
- -------------------------------------------------------------------------------
Rocklin Gold
Apartments November 121 Rocklin, CA 6,300,000 52,000
- -------------------------------------------------------------------------------
Quail Chase
Apartments December 90 Folsom, CA 5,500,000 61,100
- -------------------------------------------------------------------------------
Total 3,191 $132,370,000 $41,500
- -------------------------------------------------------------------------------
</TABLE>
ACQUISITION RECAP BY STATE
<TABLE>
<CAPTION>
- --------------------------------------------------------------
# OF TOTAL AVERAGE % INVESTMENT
STATE UNITS INVESTMENT UNIT COST BY STATE
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
CALIFORNIA 1,640 $82,395,000 $50,200 62%
- --------------------------------------------------------------
ARIZONA 1,271 34,775,000 $27,400 26%
- --------------------------------------------------------------
NEVADA 280 15,200,000 $54,300 12%
- --------------------------------------------------------------
TOTAL 3,191 $132,370,000 $41,000 100%
- --------------------------------------------------------------
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES
The Trust has lines of credit with Sanwa Bank ($29,000,000) and Union
Bank ($7,500,000) for use in the acquisition of income producing properties
and general operating purposes, including the payment of distributions to
shareholders. Reference is made to the Notes to the Trust's 1994 Annual
Report on Form 10-K, as amended, for full details of the terms of these lines
of credit. As of March 31, 1995, the Trust had outstanding balances on the
lines of credit of $28,000,000.
On November 1, 1994, the Trust sold the La Verne Towne Center, La Verne,
California, for a net sales price of $13,300,000. The funds were used to
reduce outstanding borrowings under the Trust's lines of credit and for
property acquisitions.
The following table quantifies cash flows from operating, investing and
financing activities using information from the Consolidated Statements of
Cash Flows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
March 31, March 31,
For the Three Months Ended 1995 1994
- -----------------------------------------------------------------------------
<S> <C> <C>
Net cash provided by operating activities........ $ 4,995 $ 3,633
- -----------------------------------------------------------------------------
Net cash used in investing activities............ ( 52) (20,442)
- -----------------------------------------------------------------------------
Net cash provided by (used in) financing activities... (4,448) 19,373
- -----------------------------------------------------------------------------
Net increase in cash.................................. $ 495 $ 2,564
- -----------------------------------------------------------------------------
Cash at end of period................................. $ 1,362 $ 2,782
- -----------------------------------------------------------------------------
</TABLE>
As the owner of real estate, the Trust is subject to risks arising in
connection with the underlying real estate such as defaults or nonrenewal of
the leases, increased operating costs, environmental problems, financing
availability, changes in real estate and zoning laws and increases in real
property tax rates. The success of the Trust
<PAGE>
also depends upon trends of the economy, including interest rates, income tax
laws, governmental regulation and legislation, and population changes.
As a real estate investment trust, the Trust is required under the
Internal Revenue Code to distribute to its Shareholders at least 95% of its
taxable income.
CHANGES IN RESULTS OF OPERATIONS - FOR THE THREE MONTHS ENDED MARCH 31,1995
AND MARCH 31, 1994
The following table summarizes the financial comparison of the three
months ended March 31, 1995 and March 31, 1994 ($ in thousands, except per
share data).
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
MARCH 31, MARCH 31, PERCENTAGE
FOR THE THREE MONTHS ENDED 1995 1994 CHANGE
- ----------------------------------------------------------------------
<S> <C> <C> <C>
Total revenues $8,417 $6,009 40.1%
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Depreciation 1,322 851 55.3
- ----------------------------------------------------------------------
Interest 1,733 605 186.4
- ----------------------------------------------------------------------
Property operating costs 2,430 1,498 62.2
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Administrative expenses 319 288 10.8
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Net Income $2,613 $2,767 (5.6%)
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Weighted Average Shares
Outstanding (000's) 9,306 9,246
- ----------------------------------------------------------------------
</TABLE>
Revenues and real estate expenses have increased from March 31, 1994 to
March 31, 1995 primarily due to 1994 property acquisitions and improvements
in occupancies and operating performances of existing apartment investments.
As new investments were acquired, depreciation expense has increased. In
March 1994, the Trust funded the Prudential Insurance Company of America
$55,000,000 unsecured note payable. The interest on this borrowing is the
major portion of the increase in interest expense between the periods. These
funds were used to fund 1994 property acquisitions. The operating costs
increased due to the 1994 property acquisitions totaling 1,381 apartment
units, as shown in the table above.
Expenses related to apartment operations, which include payroll of
on-site personnel (such as resident managers, leasing staff, maintenance and
janitorial staff), utilities, advertising, direct office expenses and
management fees, have increased in direct relation to acquisitions of those
properties. All operating expenses for apartment complexes, including real
property taxes and insurance, but excluding depreciation, range from
approximately 35% to 40% of gross scheduled income. This compares to retail
and commercial properties, which are generally leased on a "net" basis with
the tenant paying operating expenses.
The retail portfolio continues to experience weakness in rental rates
and occupancy due to the effects of the Southern California economy.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to report to be signed on its
behalf by the undersigned duly authorized.
REAL ESTATE INVESTMENT TRUST OF CALIFORNIA
Date:__________________ By:_______________________________________
LEROY E. CARLSON
Vice President, Secretary and Treasurer
(for the Registrant and as Chief
Accounting Officer)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 1362
<SECURITIES> 0
<RECEIVABLES> 5384
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 208334
<DEPRECIATION> 20103
<TOTAL-ASSETS> 197416
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 104792
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 197416
<SALES> 8417
<TOTAL-REVENUES> 8417
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3752
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1733
<INCOME-PRETAX> 2613
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2613
<EPS-PRIMARY> .281
<EPS-DILUTED> .281
</TABLE>
