FORM 10-QSB--QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
(As last amended by 34-32231, eff. 6/3/93.)
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 March 31, 1996
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period.........to.........
Commission file number 33-23463
CLOVER APPRECIATION PROPERTIES I, L.P.
(Exact name of small business issuer as specified in its charter)
Delaware 22-2898428
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
23 West Park Avenue
Merchantville, New Jersey 08109
(Address of principal executive offices)
(609) 662-1116
Issuer's phone 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 .
BALANCE SHEET
CLOVER APPRECIATION PROPERTIES I, L.P.
(Unaudited)
March 31,
1996
CURRENT ASSETS
Cash $ 178,942
Prepaid expenses 9,504
Accounts receivable 7,427
Real estate tax escrow 48,413
Total current assets 244,286
INVESTMENT PROPERTY, at cost 10,126,652
Less - accumulated depreciation 1,876,809
Net investment property 8,249,843
OTHER ASSETS
Utilities deposits 770
TOTAL ASSETS $ 8,494,899
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Current maturities of mortgage payable $ 72,019
Accounts payable 63,031
Accrued interest --
Accrued expenses 54,960
Tenants' security deposits 42,486
Prepaid rents 1,213
Total current liabilities 233,709
MORTGAGE PAYABLE,
Less current maturities 7,300,648
DUE TO AFFILIATES 808,896
Total liabilities 8,343,253
PARTNERS' CAPITAL
General partner (34,941)
Limited partners (3,591 units
outstanding) 186,587
Total partners' capital 151,646
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 8,494,899
The accompanying notes are an integral part of these financial statements.
CLOVER APPRECIATION PROPERTIES I, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1995
<S> <C> <C>
REVENUES
Rental income $ 408,507 $ 361,546
Interest income -- 286
Total revenues 408,507 361,832
EXPENSES
Professional services 2,297 4,134
Interest 166,141 167,639
Operating expenses
(Including affiliate transactions of
$9,122 for the three months ended 03/31/95) 142,719 159,432
Depreciation 67,754 67,347
Total expenses 378,911 398,552
NET INCOME (LOSS) $ 29,596 $ (36,720)
NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT $ 8.24 $ (10.12)
<FN>
The accompanying notes are an integral part of these financial statements.
</TABLE>
CLOVER APPRECIATION PROPERTIES I, L.P.
STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)
FOR THE THREE MONTHS ENDED MARCH 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
<S> <C> <C> <C>
Balances (deficit) at
January 1, 1996 $ (35,237) $ 157,287 $ 122,050
Net income for the three months
months ended March 31, 1996 296 29,300 29,596
Balances (Deficit) at
March 31, 1996 $ (34,941) $ 186,587 $ 151,646
<FN>
The accompanying notes are an integral part of these financial statements
</TABLE>
CLOVER APPRECIATION PROPERTIES I, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1995
<S> <C> <C>
OPERATING ACTIVITIES
Cash received from rentals $ 408,086 $ 352,385
Cash paid for operating expenses (120,114) (166,691)
Interest received -- 286
Interest paid (221,606) (167,716)
Net cash provided by operating activities 66,366 18,264
Investing Activities
Expenditures for property (6,598) --
FINANCING ACTIVITIES
Repayment of mortgage payable (22,607) (15,442)
Net increase in cash 37,161 2,822
Cash, beginning of period 141,781 118,590
Cash, end of period $ 178,942 $ 121,412
RECONCILIATION OF NET INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
NET INCOME (LOSS) $ 29,596 $ (36,720)
Adjustments
Depreciation 67,754 67,347
(Increase) decrease in prepaid expenses 494 (1,631)
(Increase) decrease in accounts receivable 3,159 (4,623)
(Increase) in real estate tax escrow (34,984) (26,238)
(Decrease) increase in accounts payable 25,418 (24,452)
Increase in security deposits 2,071 2,284
(Decrease) in prepaid rents (3,580) (4,538)
Increase in accrued expenses 31,903 37,790
Increase in due to affiliate -- 9,122
(Decrease) in accrued interest (55,465) (77)
Total adjustments 36,770 54,984
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 66,366 $ 18,264
<FN>
The accompanying notes are an integral part of these financial statements
</TABLE>
CLOVER APPRECIATION PROPERTIES I, L.P.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
Readers of this quarterly report should refer to the Partnership's audited
financial statements as of December 31, 1995, 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 January 25, 1989, the Partnership acquired the Royal Wood Apartments, a 256-
unit residential complex located in Stone Mountain, Georgia.
The Investment property at March 31, 1996 consists of:
Land $ 1,171,749
Apartment buildings 8,167,125
Furniture and fixtures 787,778
10,126,652
Less: accumulated depreciation 1,876,809
$ 8,249,843
2. Transactions with Affiliates:
Effective February 21, 1995, NPI-CL Management, L.P. ("NPI") which is
unaffiliated with the General Partner, replaced an affiliate of the General
Partner as Property Manager. Until this time, as compensation for property
management services performed by an affiliate of the General Partner with
respect to the Property, the affiliate was entitled to a management fee in an
amount not to exceed 5% of gross revenues. These fees were accrued but cannot
be paid until the mortgage payable is satisfied.
Per the loan modification agreement, only approved expenses, which are expenses
that relate to the operation, management or ownership of the property, are
permitted to be paid.
Approved expenses did not include management fees and payments to reimburse the
General Partner and its affiliates except for health insurance costs and
computer fees. Certain reimbursable costs due to the affiliate have also been
accrued.
2. Transactions with Affiliates (continued) :
The General Partner and its affiliates have made certain advances to enable the
Partnership to avoid incurring late charges on the mortgage payable which is due
on the first day of each month, prior to the receipt of monthly rents from
residents. As of March 31, 1996, advances due to the General Partner and its
affiliates were $321,293.
Reimbursable
Management Costs and
Fees Advances
Due to affiliates balance at
January 1, 1996 $ 385,049 $ 423,847
Incurred/received during the three
months ended March 31, 1996 -- --
Paid during the three months ended
March 31, 1996 -- --
Due to affiliates balance at
March 31, 1996 $ 385,049 $ 423,847
3. General:
The financial statements reflect all adjustments which are, in the opinion of
the General Partner, necessary for a fair statement of results for the interim
period 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 owns one residential apartment complex located in DeKalb
County, Georgia. The Partnership acquired Royal Woods Apartments on January 25,
1989 from an unaffiliated third party. The Partnership derives its revenues
from rental income from its property and is responsible for operating expenses,
administrative expenses, capital improvements and debt service payments.
On March 31, 1996, the Partnership had cash on hand of $178,942 including
cash reserves of $141,943 and $36,999 in security deposits. Total cash on hand
on December 31, 1995 of $141,781, including cash reserves of $104,782 and
$36,999 in security deposits. While the Partnership is currently able to
satisfy its current obligations with cash flows from operations, the General
Partner believes that if there should be a reversal of the real estate market in
the locality where the Royal Wood Apartments are located, then it would be
likely that the Partnership's current funds, together with cash flows from
operations, would not be sufficient to meet the Partnership's liquidity
requirements. The Partnership's working capital was $10,576 on March 31, 1996
as compared to a working capital deficit of $55,448 on December 31, 1995. The
increase in the working capital is primarily attributable to an increase in
cash, real estate tax escrows and a decrease in accrued interest, partially
offset by an increase in accounts payable and accrued expenses.
The Partnership's net cash flow from operations was $66,366 for the three
months ended March 31, 1996 as compared to $18,264 for the same period in 1995.
The increase in net cash flow from operations during the three months ended
March 31, 1996 is primarily attributable to an increase in cash received from
rentals and a decrease in cash paid for operating expenses, partially offset by
interest paid. Interest paid increased due to the April mortgage payment being
made in March. No distributions to partners were made during the three months
ended March 31, 1996, and it is unlikely that distributions will be made in the
foreseeable future.
As of March 31, 1996, the Partnership owed a total of $808,896 to Clover and
its affiliates, including $385,049 in accrued property management fees and
$423,847 in reimbursable costs and advances made to or on behalf of the
Partnership. The payment of such costs will be made from the Partnership's cash
flow when available (subject to the restrictions imposed by the Partnership's
mortgage loan) and from the proceeds of any sales or refinancing of Partnership
assets.
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 Partnership. NPI is
an affiliate of National Property Investors, Inc. On January 19, 1996, the
stockholders of National Property Investors, Inc. sold all of the issued and
outstanding stock to IFGP Corporation, an affiliate of Insignia Financial Group,
Inc.
Results of Operations
Three Months Ended March 31, 1996 vs. March 31, 1995
Total revenues for the three months ended March 31, 1996 were $408,507 as
compared to $361,832 for the same period in 1995. The increase in total
revenues for the three months ended March 31, 1996 is primarily attributable to
an increase in rental revenues. The increase in rental revenue is primarily
attributable to an increase in average occupancy and rental rate increases.
The average effective rentals per unit for the three months ended March 31,
1996 were $1,558 as compared to $1,487 for the same period in 1995. The average
occupancy for the three months ended March 31, 1996 was 96.4% as compared to
95.0% for the same period in 1995. The increase in the average occupancy for
the three month period ended March 31, 1996 is primarily due to the general
improvement in the residential real estate market in the surrounding area.
Operating expenses for the three months ended March 31, 1996 were $142,719 as
compared to $159,432 for the same period in 1995. The decrease in operating
expenses is attributable to a decrease in administrative and maintenance
expenses.
The Partnership had net income after depreciation of $29,596 for the three
months ended March 31, 1996 as compared to a net loss of $36,720 for the same
period in 1995. The change in net income versus a net loss after depreciation
for the three months ended March 31, 1996 is primarily attributable to an
increase in rental income and a decrease in operating expenses.
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.
SIGNATURE
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.
CLOVER APPRECIATION PROPERTIES I, L.P.
By: CROWN MANAGEMENT CORPORATION,
/s/Donald N. Love
Donald N. Love
President
/s/Stanley Borucki
Stanley Borucki
Treasurer
Date: May 14, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Clover
Appreciation Properties I, L.P. 1996 First Quarter 10-QSB and is qualified in
its entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000837103
<NAME> CLOVER APPRECIATION PROPERTIES I, L.P.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 178,942
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 244,286
<PP&E> 10,126,652
<DEPRECIATION> 1,876,809
<TOTAL-ASSETS> 8,494,899
<CURRENT-LIABILITIES> 233,709
<BONDS> 7,300,648
0
0
<COMMON> 0
<OTHER-SE> 151,646
<TOTAL-LIABILITY-AND-EQUITY> 8,494,899
<SALES> 0
<TOTAL-REVENUES> 408,507
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 378,911
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 166,141
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,596
<EPS-PRIMARY> 8.24
<EPS-DILUTED> 0
</TABLE>
