FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(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, 2000
[ ] 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 0-17646
UNITED INVESTORS INCOME PROPERTIES
(Exact name of small business issuer as specified in its charter)
Missouri 43-1483942
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Beattie Place, PO Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
UNITED INVESTORS INCOME PROPERTIES
BALANCE SHEET
(Unaudited)
(in thousands, except unit data)
June 30, 2000
<TABLE>
<CAPTION>
Assets
<S> <C>
Cash and cash equivalents $ 295
Receivables and deposits 55
Other assets 18
Investment properties:
Land $ 1,522
Buildings and related personal property 9,390
10,912
Less accumulated depreciation (3,546) 7,366
Investment in joint venture 9
$ 7,743
Liabilities and Partners' (Deficit) Capital
Liabilities
Accounts payable $ 7
Tenant security deposit liabilities 48
Accrued property taxes 24
Other liabilities 68
Partners' (Deficit) Capital
General partner $ (55)
Limited partners (61,063 units
issued and outstanding) 7,651 7,596
$ 7,743
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
b)
UNITED INVESTORS INCOME PROPERTIES
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues (Restated) (Restated)
<S> <C> <C> <C> <C>
Rental income $ 431 $ 415 $ 854 $ 830
Other income 45 37 73 72
Total revenues 476 452 927 902
Expenses:
Operating 167 165 331 301
General and administrative 41 48 72 86
Depreciation 98 88 195 172
Property taxes 40 37 77 68
Total expenses 346 338 675 627
Income before equity in income of
joint venture and discontinued
operation 130 114 252 275
Equity in income of joint venture -- 6 11 15
Income from continuing operations 130 120 263 290
(Loss) income from discontinued
operation -- -- (11) 11
Net income $ 130 $ 120 $ 252 $ 301
Net income allocated to general
partner (1%) 1 1 3 3
Net income allocated to limited
partners (99%) 129 119 249 298
$ 130 $ 120 $ 252 $ 301
Per limited partnership unit:
Income from continuing operations 2.11 1.95 4.26 4.70
(Loss) income from discontinued
operation -- -- (0.18) 0.18
Net income $ 2.11 $ 1.95 $ 4.08 $ 4.88
Distributions per limited
partnership unit $ 7.70 $ 2.49 $ 27.30 $ 4.99
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
c)
UNITED INVESTORS INCOME PROPERTIES
STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Limited
Partnership General Limited
Units Partner Partners Total
<S> <C> <C> <C> <C>
Original capital contributions 61,063 $ -- $15,266 $15,266
Partners' (deficit) capital at
December 31, 1999 61,063 $ (41) $ 9,069 $ 9,028
Distributions to partners -- (17) (1,667) (1,684)
Net income for the six months
ended June 30, 2000 -- 3 249 252
Partners' (deficit) capital
at June 30, 2000 61,063 $ (55) $ 7,651 $ 7,596
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
d)
UNITED INVESTORS INCOME PROPERTIES
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
2000 1999
Cash flows from operating activities:
<S> <C> <C>
Net income $ 252 $ 301
Adjustments to reconcile net income to net cash
provided by operating activities:
Equity in net income of joint venture (11) (15)
Depreciation 195 204
Amortization of lease commissions -- 3
Change in accounts:
Receivables and deposits 99 (28)
Other assets 20 14
Accounts payable (71) (21)
Tenant security deposit liabilities 5 2
Accrued property taxes 24 38
Other liabilities (35) (5)
Net cash provided by operating activities 478 493
Cash flows from investing activities:
Property improvements and replacements (77) (77)
Distributions from joint venture 11 19
Proceeds from sale of joint venture property 400 --
Net cash provided by (used in) investing
activities 334 (58)
Cash flows used in financing activities:
Distributions to partners (1,684) (308)
Net (decrease) increase in cash and cash equivalents (872) 127
Cash and cash equivalents at beginning of period 1,167 928
Cash and cash equivalents at end of period $ 295 $ 1,055
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
e)
UNITED INVESTORS INCOME PROPERTIES
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited financial statements of United Investors Income
Properties (the "Partnership" or "Registrant") have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of United Investors Real Estate, Inc. (the "General Partner"), a
Delaware corporation, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three and six month periods ended June 30, 2000, are not
necessarily indicative of the results that may be expected for the fiscal year
ending December 31, 2000. For further information, refer to the financial
statements and footnotes thereto included in the Partnership's Annual Report on
Form 10-KSB for the fiscal year ended December 31, 1999.
Note B - Transfer of Control
Pursuant to a series of transactions which closed on October 1, 1998 and
February 26, 1999, Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment Investment and Management Company ("AIMCO"), a publicly
traded real estate investment trust, with AIMCO being the surviving corporation
(the "Insignia Merger"). As a result, AIMCO acquired 100% ownership interest in
the General Partner. The General Partner does not believe that this transaction
has had or will have a material effect on the affairs and operations of the
Partnership.
Note C - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership activities.
The Partnership Agreement provides for payments to affiliates for services and
for reimbursement of certain expenses incurred by affiliates on behalf of the
Partnership. The following payments were made to affiliates of the General
Partner during the six month periods ended June 30, 2000 and 1999:
2000 1999
(in thousands)
Property management fees (included in operating expenses) $ 46 $ 45
Reimbursement for services of affiliates (included in
general and administrative expenses) 26 19
During the six months ended June 30, 2000 and 1999, affiliates of the General
Partner were entitled to receive 5% of gross receipts from all of the
Partnership's residential properties as compensation for providing property
management services. The Partnership paid to such affiliates approximately
$46,000 and $45,000 for the six months ended June 30, 2000 and 1999,
respectively.
An affiliate of the General Partner received reimbursement of accountable
administrative expenses amounting to approximately $26,000 and $19,000 for the
six months ended June 30, 2000 and 1999, respectively.
<PAGE>
For acting as real estate broker in connection with the 1999 sale of Peachtree
Corners Medical Building, the General Partner earned a real estate commission of
approximately $21,000. The commission was accrued at June 30, 2000 and is
included in other liabilities. However, this amount is not payable until the
limited partners receive an amount equal to their adjusted capital investment
and a cumulative distribution equal to an 8% annual return from the last
additional closing date or, if greater, a 6% cumulative annual return from his
date of admission to the Partnership.
AIMCO and its affiliates currently own 11,785 limited partnership units in the
Partnership representing 19.3% of the outstanding units. A number of these units
were acquired pursuant to tender offers made by AIMCO or its affiliates. It is
possible that AIMCO or its affiliates will make one or more additional offers to
acquire additional limited partnership interests in the Partnership for cash or
in exchange for units in the operating partnership of AIMCO. Under the
Partnership Agreement, unitholders holding a majority of the Units are entitled
to take action with respect to a variety of matters. When voting on matters,
AIMCO would in all likelihood vote the Units it acquired in a manner favorable
to the interest of the General Partner because of their affiliation with the
General Partner.
Note D - Investment in Corinth Square Joint Venture
The Partnership had a 35% investment in Corinth Square Joint Venture ("Joint
Venture") with United Investors Income Properties II, an affiliated partnership
in which the General Partner is also the sole general partner. The Partnership
reflects its interest in the Joint Venture utilizing the equity method, whereby
the original investment is increased by advances to the Joint Venture and by the
Partnership's share of the earnings of the Joint Venture. The investment is
decreased by distributions from the Joint Venture and by the Partnership's share
of losses of the Joint Venture.
On December 30, 1999, the Joint Venture sold its only investment property,
Corinth Square, to an unaffiliated third party. The net proceeds were received
by United Investors Income Properties II, of which approximately $400,000 was
the Partnership's pro-rata share. This amount was received by the Partnership in
January 2000.
Condensed balance sheet information of the Joint Venture at June 30, 2000, is as
follows (in thousands):
Assets
Cash $ 6
Other assets --
Total $ 6
Liabilities and Partners' Deficit
Other liabilities $ --
Partners' deficit 6
Total $ 6
<PAGE>
The condensed profit and loss statement of the Joint Venture for the six months
ended June 30, 2000 and 1999, is summarized as follows (in thousands):
2000 1999
Revenue $ 12 $ 205
Costs and expenses -- 162
Income before gain on
sale of property 12 43
Gain on sale of property 20 --
Net income $ 32 $ 43
Note E - Distributions
During the six months ended June 30, 2000, the Partnership paid distributions of
cash generated from the sale of Peachtree Corners Medical Building and Corinth
Square Joint Venture of approximately $1,003,000 (approximately $993,000 to the
limited partners or $16.26 per limited partnership unit) and approximately
$681,000 of cash generated from operations (approximately $674,000 to the
limited partners or $11.04 per limited partnership unit). During the six months
ended June 30, 1999, the Partnership paid distributions of cash generated from
operations of approximately $308,000 (approximately $305,000 to the limited
partners or $4.99 per limited partnership unit).
Note F - Discontinued Operation
Peachtree Corners Medical Building was the last commercial property in the
commercial segment of the Partnership. Due to the sale of this property in
December 1999, the statement of operations for the three and six month periods
ended June 30, 1999 has been restated and the (loss) income of this property has
been classified as "(Loss) income from discontinued operation" for the three and
six month periods ended June 30, 2000 and 1999. There were no revenues for this
property and the Partnership realized a loss from discontinued operation of
approximately $11,000 during the six month period ended June 30, 2000. Revenues
of this property were approximately $74,000 and the Partnership realized income
from discontinued operation of approximately $11,000 for the six month period
ended June 30, 1999. Revenues of this property were approximately $29,000 and
the Partnership did not recognize any income from discontinued operations during
the three month period ended June 30, 1999.
Note G - Segment Reporting
Description of the types of products and services from which the reportable
segment derives its revenues: The Partnership had two reportable segments:
residential properties and commercial property. The Partnership's residential
segment consists of three apartment complexes one each located in Mountlake
Terrace, Washington; Atlanta, Georgia; and Medford, Oregon. The Partnership
rents apartment units to tenants for terms that are typically twelve months or
less. The commercial property segment consisted of a medical building located in
Atlanta, Georgia. On December 30, 1999, the commercial property held by the
Partnership was sold to an unrelated party. Therefore, the commercial segment is
reflected as discontinued operations (see "Note F - Discontinued Operation" for
further information regarding the commercial property sale).
<PAGE>
Measurement of segment profit or loss: The Partnership evaluates performance
based on segment profit (loss) before depreciation. The accounting policies of
the reportable segments are the same as those of the Partnership as described in
the Partnership's Annual Report on Form 10-KSB for the year ended December 31,
1999.
Factors management used to identify the enterprise's reportable segment: The
Partnership's reportable segments are investment properties that offer different
products and services. The reportable segments are each managed separately
because they provide distinct services with different types of products and
customers.
Segment information for the three and six month periods ended June 30, 2000 and
1999, is shown in the tables below (in thousands). The "Other" column includes
Partnership administration related items and income and expense not allocated to
the reportable segments.
<TABLE>
<CAPTION>
Three Months Ended
June 30, 2000 Residential Commercial Other Totals
(discontinued)
<S> <C> <C> <C> <C>
Rental income $ 431 $ -- $ -- $ 431
Other income 44 -- 1 45
Depreciation 98 -- -- 98
General and administrative
expense -- -- 41 41
Segment profit (loss) 170 -- (40) 130
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 2000 Residential Commercial Other Totals
(discontinued)
<S> <C> <C> <C> <C>
Rental income $ 854 $ -- $ -- $ 854
Other income 67 -- 6 73
Depreciation 195 -- -- 195
General and administrative
expense -- -- 72 72
Loss from discontinued
operation -- (11) -- (11)
Equity in income of joint
venture -- -- 11 11
Segment profit (loss) 318 (11) (55) 252
Total assets 7,640 -- 103 7,743
Capital expenditures for
investment properties 77 -- -- 77
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended
June 30, 1999 Residential Commercial Other Totals
(discontinued)
<S> <C> <C> <C> <C>
Rental income $ 415 $ -- $ -- $ 415
Other income 30 -- 7 37
Depreciation 88 -- -- 88
General and administrative
expense -- -- 48 48
Equity in income of joint
venture -- -- 6 6
Segment profit (loss) 155 -- (35) 120
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 Residential Commercial Other Totals
(discontinued)
<S> <C> <C> <C> <C>
Rental income $ 830 $ -- $ -- $ 830
Other income 57 -- 15 72
Depreciation 172 -- -- 172
General and administrative
expense -- -- 86 86
Income from discontinued
operation -- 11 -- 11
Equity in income of joint
venture -- -- 15 15
Segment profit (loss) 346 11 (56) 301
Total assets 8,142 1,591 1,218 10,951
Capital expenditures for
investment properties 77 -- -- 77
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The matters discussed in this Form 10-QSB contain certain forward-looking
statements and involve risks and uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the
disclosures contained in this Form 10-QSB and the other filings with the
Securities and Exchange Commission made by the Partnership from time to time.
The discussion of the Partnership's business and results of operations,
including forward-looking statements pertaining to such matters, does not take
into account the effects of any changes to the Partnership's business and
results of operations. Accordingly, actual results could differ materially from
those projected in the forward-looking statements as a result of a number of
factors, including those identified herein.
The Partnership's investment properties consist of three apartment complexes.
The following table sets forth the average occupancy of the properties for each
of the six months ended June 30, 2000 and 1999:
Average Occupancy
Property 2000 1999
Bronson Place Apartments 93% 95%
Mountlake Terrace, Washington
Meadow Wood Apartments 97% 93%
Medford, Oregon
Defoors Crossing Apartments 96% 94%
Atlanta, Georgia
The General Partner attributes the increased occupancy at Meadow Wood Apartments
to increased advertising and exterior improvements completed to increase the
curb appeal of the property.
Results of Operations
The Partnership realized net income of approximately $252,000 for the six months
ended June 30, 2000, compared to net income of approximately $301,000 for the
six months ended June 30, 1999. The Partnership's net income for the three
months ended June 30, 2000, was approximately $130,000 compared to net income of
approximately $120,000 for the three months ended June 30, 1999. The decrease in
net income for the six months ended June 30, 2000, is primarily due to an
increase in total expenses at the Partnership's residential properties and, to a
lesser extent, a decrease in income from the discontinued operation of Peachtree
Corners Medical Building, as discussed below, which was partially offset by an
increase in total revenues. The increase in net income for the three months
ended June 30, 2000 is due to an increase in total revenues, offset by an
increase in total expenses.
Excluding the discontinued operation and the equity in income of the joint
venture, the Partnership had income of approximately $252,000 for the six months
ended June 30, 2000, compared to income of approximately $275,000 for the six
months ended June 30, 1999. Excluding the discontinued operation and the equity
in income of the joint venture, the Partnership had income of approximately
$130,000 for the three months ended June 30, 2000, compared to income of
approximately $114,000 for the three months ended June 30, 1999. Income
decreased for the six months ended June 30, 2000 due to an increase in total
expenses offset by an increase in total revenues. Income increased for the three
months ended June 30, 2000, due to an increase in total revenues offset by an
increase in total expenses.
Total expenses increased for the three and six month periods ended June 30, 2000
primarily due to increased operating expenses and depreciation expense which was
partially offset by decreased general and administrative expenses. Operating
expenses increased due to an increase in advertising expense, manager salaries,
contract services, and sewer expenses primarily at Bronson Place Apartments.
Depreciation expense increased due to capital improvements completed during the
past twelve months that are now being depreciated. General and administrative
expense decreased primarily due to a decrease in professional fees related to
the oversight of the Partnership. Included in general and administrative
expenses are reimbursements to the General Partner allowed under the Partnership
Agreement associated with its management of the Partnership. Costs associated
with the quarterly and annual communications with investors and regulatory
agencies and the annual audit required by the Partnership Agreement are also
included.
The increase in total revenues for the six month periods ended June 30, 2000 and
1999, was due to increased rental income. The increase in total revenues for the
three month periods ended June 30, 2000 and 1999 was due to increased rental
income and increased other income. Rental income increased for the three and six
month periods primarily due to increased average rental rates at all of the
Partnership's properties and improved occupancy at Meadow Wood and Defoors
Crossing Apartments which more than offset the decrease in occupancy at Bronson
Place Apartments. The increase in other income for the three month period is
primarily due to increased utility services income at Bronson Place and Meadow
Wood Apartments.
The Partnership has a 35% investment in Corinth Square Joint Venture ("Joint
Venture"). For the six months ended June 30, 2000, the Partnership realized
equity in the income of the Joint Venture property of approximately $11,000, and
for the six months ended June 30, 1999, the Partnership realized equity in the
income of the Joint Venture property of approximately $15,000. For the three
month period ended June 30, 2000, the Partnership did not recognize any equity
in the income of the Joint Venture property, and for the three month period
ended June 30, 1999, the Partnership realized equity in the income of the Joint
Venture property of approximately $6,000. On December 30, 1999, the Joint
Venture sold its only investment property, Corinth Square, to an unaffiliated
third party.
Peachtree Corners Medical Building was the last commercial property in the
commercial segment of the Partnership. Due to the sale of this property in
December 1999, the (loss) income of this property has been classified as "(Loss)
income from discontinued operation" for the three and six month periods ended
June 30, 2000 and 1999. There were no revenues for this property and the
Partnership realized a loss from discontinued operation of approximately $11,000
during the six month period ended June 30, 2000. Revenues of this property were
approximately $74,000 and the Partnership realized income from discontinued
operation of approximately $11,000 for the six month period ended June 30, 1999.
Revenues of this property were approximately $29,000 and the Partnership did not
recognize any income from discontinued operation during the three month period
ended June 30, 1999.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of its investment properties to assess
the feasibility of increasing rents, maintaining or increasing occupancy levels
and protecting the Partnership from increases in expense. As part of this plan,
the General Partner attempts to protect the Partnership from the burden of
inflation-related increases in expenses by increasing rents and maintaining a
high overall occupancy level. Due to changing market conditions, which can
result in the use of rental concessions and rental reductions to offset
softening market conditions, there is no guarantee that the General Partner will
be able to sustain such a plan.
Liquidity and Capital Resources
At June 30, 2000, the Partnership had cash and cash equivalents of approximately
$295,000 compared to approximately $1,055,000 at June 30, 1999. Cash and cash
equivalents decreased by approximately $872,000 from the Partnership's year
ended December 31, 1999, due to approximately $1,684,000 of cash used in
financing activities, which was partially offset by approximately $478,000 of
cash provided by operating activities and approximately $334,000 of cash
provided by investing activities. Cash used in financing activities consisted of
distributions paid to the partners. Cash provided by investing activities
consisted primarily of proceeds from the sale of the Corinth Square Joint
Venture property and, to a lesser extent, distributions received from the Joint
Venture, which were partially offset by property improvements and replacements.
The Partnership invests its working capital reserves in money market accounts.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the various properties to adequately maintain the
physical assets and other operating needs of the Partnership and to comply with
Federal, state and local legal and regulatory requirements. Capital improvements
planned for each of the Partnership's properties are detailed below.
Bronson Place
During the six months ended June 30, 2000, the Partnership spent approximately
$16,000 on capital improvements at Bronson Place Apartments, consisting
primarily of building improvements, appliances, carpet and vinyl replacements,
and clubhouse renovations. These improvements were funded from cash flow from
operations. The Partnership has evaluated the capital improvement needs of the
property for the year 2000. The amount budgeted is approximately $38,000,
consisting primarily of carpet and vinyl replacements and plumbing upgrades.
Additional improvements may be considered and will depend on the physical
condition of the property as well as anticipated cash flow generated by the
property.
Meadow Wood
During the six months ended June 30, 2000, the Partnership spent approximately
$51,000 on capital improvements at Meadow Wood Apartments, consisting primarily
of appliances, carpet and vinyl replacements, and parking lot improvements.
These improvements were funded from cash flow from operations. The Partnership
has evaluated the capital improvement needs of the property for the year 2000.
The amount budgeted is approximately $63,000, consisting primarily of air
conditioning unit replacement, appliances, and carpet and vinyl replacements.
Additional improvements may be considered and will depend on the physical
condition of the property as well as anticipated cash flow generated by the
property.
Defoors Crossing
During the six months ended June 30, 2000, the Partnership spent approximately
$10,000 on capital improvements at Defoors Crossing Apartments, consisting
primarily of carpet and vinyl replacements, appliances, swimming pool
improvements, and major landscaping. These improvements were funded from cash
flow from operations. The Partnership has evaluated the capital improvement
needs of the property for the year 2000. The amount budgeted is approximately
$31,000, consisting primarily of appliances and carpet and vinyl replacements.
Additional improvements may be considered and will depend on the physical
condition of the property as well as anticipated cash flow generated by the
property.
The additional capital expenditures will be incurred only if cash is available
from operations or from Partnership reserves. To the extent that such budgeted
capital improvements are completed, the Partnership's distributable cash flow,
if any, may be adversely affected at least in the short term.
During the six months ended June 30, 2000, the Partnership paid distributions of
cash generated from the sale of Peachtree Corners Medical Building and Corinth
Square Joint Venture of approximately $1,003,000 (approximately $993,000 to the
limited partners or $16.26 per limited partnership unit) and approximately
$681,000 of cash generated from operations (approximately $674,000 to the
limited partners or $11.04 per limited partnership unit). During the six months
ended June 30, 1999, the Partnership paid distributions of cash generated from
operations of approximately $308,000 (approximately $305,000 to the limited
partners or $4.99 per limited partnership unit). Future cash distributions will
depend on the levels of net cash generated from operations, the availability of
cash reserves, and the timing of financings and/or property sales. The
Partnership's distribution policy is reviewed on a quarterly basis. There can be
no assurance, however, that the Partnership will generate sufficient funds from
operations after required capital improvements to permit any additional
distributions to its partners during the remainder of 2000 or subsequent
periods.
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to
this report.
b) Reports on Form 8-K filed during the quarter ended June 30, 2000:
None.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
UNITED INVESTORS INCOME PROPERTIES
By: United Investors Real Estate, Inc.
Its General Partner
By: /s/Patrick J. Foye
Patrick J. Foye
Executive Vice President
By: /s/Martha L. Long
Martha L. Long
Senior Vice President
and Controller
Date:
