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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
No. 1
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For The Fiscal Year Ended December 31, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission file #0-18456
Inland Mortgage Investors Fund III, L.P.
(Exact name of registrant as specified in its charter)
Delaware 36-3604866
(State of organization) (I.R.S. Employer Identification Number)
2901 Butterfield Road, Oak Brook, Illinois 60521
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: 708-218-8000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: Name of each exchange on which registered:
None None
Securities registered pursuant to Section 12(g) of the Act:
LIMITED PARTNERSHIP UNITS
(Title of class)
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
----- -----
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [X]
State the aggregate market value of the voting stock held by nonaffiliates of
the registrant. Not applicable.
The Prospectus of the Registrant dated January 9, 1989, as supplemented and
filed pursuant to Rule 424(b) and 424(c) under the Securities Act of 1933 is
incorporated by reference in Parts I, II and III of this Annual Report on Form
10-K.
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Item 8. Financial Statements and Supplementary Data
Reports not filed with Form 10-K: financial statements of the underlying
operating properties for each mortgage which exceed 20% of total assets.
INDEX PAGE
5540 W. 103rd St., Oak Lawn, Illinois:
Independent Auditor's Report................................... 3
Statement of Operating Income and Expenses for the year ended
December 31, 1995............................................ 4
Notes to Statement of Operating Income and Expenses for the
year ended December 31, 1995................................. 5
5009 & 5013 Florence Avenue, Downers Grove, Illinois:
Independent Auditor's Report................................... 6
Statement of Operating Income and Expenses for the year ended
December 31, 1995............................................ 7
Notes to Statement of Operating Income and Expenses for the
year ended December 31, 1995................................. 8
7432 Washington, Forest Park, Illinois:
Independent Auditor's Report................................... 9
Statement of Operating Income and Expenses for the year ended
December 31, 1995............................................ 10
Notes to Statement of Operating Income and Expenses for the
year ended December 31, 1995................................. 11
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[LETTERHEAD OF WOLF & COMPANY LLP]
INDEPENDENT AUDITOR'S REPORT
----------------------------
Mr. and Mrs. Mark A. Hynes
5540 W. 103rd Street
Oak Lawn, Illinois
We have audited the accompanying statement of operating income and expenses of
5540 W. 103RD STREET, OAK LAWN, ILLINOIS for the year ended December 31, 1995.
The financial statement is the responsibility of the Property's management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statement referred to above presents fairly, in all
material respects, the results of operations of 5540 W. 103rd Street, Oak Lawn,
Illinois for the year ended December 31, 1995 in conformity with generally
accepted accounting principles.
Wolf & Company LLP
Oak Brook, Illinois
May 10, 1996
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5540 W. 103RD STREET
STATEMENT OF OPERATING INCOME AND EXPENSES
------------------------------------------
For the Year Ended December 31, 1995
<TABLE>
<S> <C>
Operating revenues:
Rental income $ 76,759
--------
Operating expenses:
Real estate taxes 23,767
Depreciation 18,705
Painting and decorating 2,046
Repairs and replacements 4,946
Insurance 1,900
Advertising 160
Supplies 1,296
Utilities 4,080
Scavenger service 899
Cleaning and maintenance 1,075
Telephone 314
Legal 719
Miscellaneous 176
--------
60,083
--------
Operating income 16,676
Other income (expense):
Interest expense (Note 2) (44,193)
--------
Net loss $(27,517)
========
</TABLE>
The accompanying notes are an integral part of this financial statements.
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5540 W. 103RD STREET
OAK LAWN, ILLINOIS
NOTES TO FINANCIAL STATEMENT
----------------------------
1. Summary of Significant Accounting Policies
------------------------------------------
Description of Property - The property consists of rental apartments in Oak
Lawn, Illinois. At December 31, 1995, there were a total of 10 rentable
units.
Description of Reporting Entity - The property is owned by an individual.
As the income or loss from the property's operations is included in the
individual's income tax return, no provision for income taxes is included
herein. Only income and expenses directly arising from the property's
operations are included in this financial statement.
Property and Depreciation - Building and improvements have been capitalized
at cost and are being depreciated on a straight-line basis over a useful
life of 27 1/2 years. Fixtures and equipment have been capitalized at cost
and are being depreciated on an accelerated basis over the useful lives of
5-10 years.
Accounting Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2. Interest Expense
----------------
The property secures two mortgages with a total outstanding balance of
$396,850 at December 31, 1995. Interest payments totaling $44,193 were
made for 1995. The notes bear interest at 10.875% and 10% per annum,
respectively.
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[LETTERHEAD OF WOLF & COMPANY LLP]
INDEPENDENT AUDITOR'S REPORT
----------------------------
Gerald and Cecile Cigler
5009-5013 Florence Avenue
Downers Grove, Illinois
We have audited the accompanying statement of operating income and expenses of
5009-5013 FLORENCE AVENUE DOWNERS GROVE, ILLINOIS for the year ended December
31, 1995. The financial statement is the responsibility of the Property's
management. Our responsibility is to express an opinion on this financial
statement based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the results of operations of the Apartment Building 5009-
5013 Florence Avenue Downers Grove, Illinois for the year ended December 31,
1995 in conformity with generally accepted accounting principles.
Wolf & Company LLP
Oak Brook, Illinois
April 26, 1996
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5009-5013 FLORENCE AVENUE
STATEMENT OF OPERATING INCOME AND EXPENSES
------------------------------------------
For the Year Ended December 31, 1995
<TABLE>
<S> <C>
Operating revenues:
Rental income $ 83,545
--------
Operating expenses:
Real estate taxes 8,342
Depreciation 18,600
Supplies 3,543
Repairs 1,262
Insurance 1,265
Advertising 82
Utilities 8,045
Scavenger service 987
Snow removal 390
Trust fees 123
--------
42,639
--------
Operating income 40,906
--------
Other income (expense):
Laundry income 276
Interest expense (Note 2) (39,542)
--------
(39,266)
--------
Net income $ 1,640
========
</TABLE>
The accompanying notes are an integral part of this financial statements.
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5009-5013 FLORENCE AVENUE
DOWNERS GROVE, ILLINOIS
NOTES TO FINANCIAL STATEMENT
----------------------------
1. Summary of Significant Accounting Policies
------------------------------------------
Description of Property - The property consists of rental apartments in
Downers Grove, Illinois. At December 31, 1995, there were a total of 14
rentable units.
Description of Reporting Entity - The property is owned by an individual.
As the income or loss from the property's operations is included in the
individual's income tax return, no provision for income taxes is included
herein. Only income and expenses directly arising from the property's
operations are included in this financial statement.
Property and Depreciation - Building and improvements and furniture,
fixtures and equipment have been capitalized at cost and are being
depreciated on a straight-line and accelerated methods over a useful life
of 27-1/2 years and 5 years, respectively.
Accounting Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of revenues and expenses and disclosure of contingent assets and
liabilities during the reporting period. Actual results could differ from
those estimates.
2. Interest Expense
----------------
The property secures a mortgage with total outstanding balance of $403,833
at December 31, 1995. Interest payments totaling $39,542 were made for
1995. The note bears interest at 9.75% per annum.
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[LETTERHEAD OF WOLF & COMPANY LLP]
INDEPENDENT AUDITOR'S REPORT
----------------------------
Edmund and Joyce Dwyer
Clare Properties
7432 W. Washington
Forest Park, Illinois
We have audited the accompanying statement of operating income and expenses of
CLARE PROPERTIES (7432 W. WASHINGTON) for the year ended December 31, 1995. The
financial statement is the responsibility of the Property's management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statement referred to above presents fairly, in all
material respects, the results of operations of the Clare Properties (7432 W.
Washington) for the year ended December 31, 1995 in conformity with generally
accepted accounting principles.
Wolf & Company LLP
Oak Brook, Illinois
May 10, 1996
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CLARE PROPERTIES
7432 W. WASHINGTON
STATEMENT OF OPERATING INCOME AND EXPENSES
------------------------------------------
For the Year Ended December 31, 1995
<TABLE>
<S> <C>
Operating revenues:
Rental income $ 130,019
---------
Operating expenses:
Real estate taxes 28,659
Depreciation 25,487
Assessments 33,979
Repairs and replacements 730
Insurance 1,242
Painting and decorating 248
Carpet cleaning 127
---------
90,472
---------
Operating income 39,547
---------
Other income (expense):
Gain on sale of property (Note 3) 26,947
Interest expense (Note 2) (72,000)
---------
(45,053)
---------
Net loss $ (5,506)
=========
</TABLE>
The accompanying notes are an integral part of this financial statements.
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<PAGE>
CLARE PROPERTIES
7432 W. WASHINGTON
NOTES TO FINANCIAL STATEMENT
----------------------------
1. Summary of Significant Accounting Policies
------------------------------------------
Description of Property - The property consists of rental apartments in
Forest Park, Illinois. At December 31, 1995, there were a total of 24
rentable units.
Description of Reporting Entity - The property is owned by an individual.
As the income or loss from the property's operations is included in the
individual's income tax return, no provision for income taxes is included
herein. Only income and expenses directly arising from the property's
operations are included in this financial statement.
Property and Depreciation - Building and improvements have been capitalized
at cost and are being depreciated on a straight-line basis over a useful
life of 27 1/2 years. Furniture and equipment have been capitalized at
cost and are being depreciated on a straight-line basis over a useful life
of 7 years.
Accounting Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2. Interest Expense
----------------
The property secures two mortgages with total outstanding balances of
$704,490 at December 31, 1995. Interest payments totaling $72,000 were
made for 1995. The notes bear interest at 8% and 10% per annum,
respectively.
3. Gain on Sale of Property
------------------------
During the year ended December 31, 1995, Units #407 and #205 were sold for
a total of $89,800 resulting in a total net gain of $26,947.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) 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.
INLAND MORTGAGE INVESTORS FUND III, L.P.
Inland Real Estate Investment Corporation
General Partner
/S/ ROBERT D. PARKS
By: Robert D. Parks
Chairman of the Board
and Chief Executive Officer
Date: May 13, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated:
By: Inland Real Estate Investment Corporation
General Partner
/S/ ROBERT D. PARKS
By: Robert D. Parks
Chairman of the Board
and Chief Executive Officer
Date: May 13, 1996
/S/ MARK ZALATORIS
By: Mark Zalatoris
Vice President
Date: May 13, 1996
/S/ CYNTHIA M. HASSETT
By: Cynthia M. Hassett
Principal Financial Officer
and Principal Accounting Officer
Date: May 13, 1996
/S/ DANIEL L. GOODWIN
By: Daniel L. Goodwin
Director
Date: May 13, 1996
/S/ ROBERT H. BAUM
By: Robert H. Baum
Director
Date: May 13, 1996
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