UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly year ended June 30, 1995
or
[ ] 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 0-19219
Brauvin Income Plus L.P. III
(Exact name of registrant as specified in its charter)
Delaware 36-3639043
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago,Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
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 theregistrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No .
<PAGE>
BRAUVIN INCOME PLUS L.P. III
Index
Page
PART I Financial Information
Item 1. Consolidated Financial Statements. . . . . . . . . 3
Consolidated Balance Sheets at June 30, 1995 and
December 31, 1994. . . 4
Consolidated Statements of Operations for the six
months ended June 30, 1995 and June 30, 1994. . . . . 5
Consolidated Statements of Operations for the three
months ended June 30, 1995 and June 30, 1994. . . . . 6
Consolidated Statements of Partners' Capital for
the periods January 1,1992 to June 30, 1995 . . 7
Consolidated Statements of Cash Flows for the
six months ended June 30, 1995 and June 30, 1994. . . 8
Notes to Consolidated Financial Statements . . . . 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . .14
PART II
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . 16
Item 2. Changes in Securities. . . . . . . . . . . . . . . 16
Item 3. Defaults Upon Senior Securities. . . . . . . . . . 16
Item 4. Submissions of Matters to a Vote of Security Holders 16
Item 5. Other Information. . . . . . . . . . . . . . . . . 16
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 16
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . 17
PART I - FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
Except for the December 31, 1994 Consolidated Balance Sheet,
the following Consolidated Balance Sheet as of June 30, 1995,
Consolidated Statements of Operations for the six months ended
June 30, 1995 and 1994, Consolidated Statements of Operations for
the three months ended June 30, 1995 and 1994, Consolidated
Statements of Partners' Capital for the periods January 1, 1992
to June 30, 1995 and Consolidated Statements of Cash Flows for
the six months ended June 30, 1995 and 1994 for Brauvin Income
Plus L.P. III (the "Partnership") are unaudited and have not been
examined by independent public accountants but reflect, in the
opinion of the management, all adjustments necessary to present
fairly the information required. All such adjustments are of a
normal recurring nature.
These consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Partnership's 1994 Annual Report on Form
10-K.
<PAGE>
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1995 1994
ASSETS
Investment in real estate, at cost:
Land $ 7,845,528 $ 7,845,528
Buildings and improvements 10,463,264 10,463,264
18,308,792 18,308,792
Less: accumulated depreciation (1,680,866) (1,486,513)
Net investment in real estate 16,627,926 16,822,279
Investment in Brauvin Gwinnett County
Venture (Note 4) 154,830 157,014
Cash and cash equivalents 855,165 925,719
Rent receivable -- 13,755
Deferred rent receivable 32,258 27,943
Due from affiliates 3,107 2,352
Prepaid offering costs 75,208 78,078
Total Assets $17,748,494 $18,027,140
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and accrued expenses $ 279,521 $ 298,738
Rent received in advance 82,477 144,944
Due to affiliates 3,519 10,421
Total Liabilities 365,517 454,103
MINORITY INTEREST IN BRAUVIN CHILI'S
LIMITED PARTNERSHIP (361) (382)
PARTNERS' CAPITAL:
General Partners 73,272 79,872
Limited Partners 17,310,066 17,493,547
Total Partners' Capital 17,383,338 17,573,419
Total Liabilities and
Partners' Capital $17,748,494 $18,027,140
See accompanying notes to consolidated financial statements.
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended June 30,
1995 1994
INCOME:
Rental $1,089,811 $1,072,057
Interest 15,674 7,484
Other 3,200 15,718
Total Income 1,108,685 1,095,259
EXPENSES:
Management fees 17,953 --
General and administrative 66,293 87,929
Amortization of organization costs -- 3,000
Depreciation 194,353 194,352
Total expenses 278,599 285,281
Income before minority interest and
equity interest in joint ventures 830,086 809,978
Minority interest share in Brauvin Chili's
Limited Partnership's net income (321) (279)
Equity interest in Brauvin Gwinnett
County Venture's net income 6,456 6,499
Net income $ 836,221 $ 816,198
Net income allocated to the General Partners$ 16,724 $ 16,324
Net income allocated to the Limited Partners$ 819,497 $ 799,874
Net income per Unit outstanding (a) $ 0.37 $ 0.37
(a) Net income per Unit was based on the average Units
outstanding during the period since they were of varying dollar
amounts and percentages based upon the dates Limited Partners
were admitted to the Partnership and additional Units were
purchased through the Plan.
See accompanying notes to consolidated financial statements.
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30,
1995 1994
INCOME:
Rental $552,993 $536,407
Interest 5,479 4,285
Other 694 10,658
Total Income 559,166 551,350
EXPENSES:
Management fees 11,260 --
General and administrative 30,281 51,978
Amortization of organization costs -- 1,500
Depreciation 96,246 98,109
Total expenses 137,787 151,587
Income before minority interest and
equity interest in joint ventures 421,379 399,763
Minority interest's share in Brauvin Chili's
Limited Partnership's net income (151) (143)
Equity interest in Brauvin Gwinnett County
Venture's net income 3,302 3,962
Net income $424,530 $403,582
Net income allocated to the General Partners $ 8,490 $ 8,072
Net income allocated to the Limited Partners $416,041 $395,510
Net income per Unit outstanding (a) $ 0.19 $ 0.19
(a) Net income per Unit was based on the average Units
outstanding during the period since they were of varying dollar
amounts and percentages based upon the dates Limited Partners
were admitted to the Partnership and additional Units were
purchased through the Plan.
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
For the period January 1, 1992 to June 30, 1995
General Interest
Partners Holders* Total
Balance, January 1, 1992 $24,300 $18,320,204 $18,344,504
Contributions, net -- 150,611 150,611
Selling commissions and other
offering costs -- (30,542) (30,542)
Net income 28,783 1,410,366 1,439,149
Cash distributions -- (1,958,231) (1,958,231)
Balance, December 31, 1992 53,083 17,892,408 17,945,491
Contributions, net -- 249,281 249,281
Selling commissions and other
offering costs -- (30,564) (30,564)
Net income 32,289 1,582,139 1,614,428
Cash distributions -- (1,973,921) (1,973,921)
Balance, December 31, 1993 85,372 17,719,343 17,804,715
Contributions, net -- 145,507 145,507
Selling commissions and
other offering costs (Note 1) -- (31,848) (31,848)
Net income -- 1,668,247 1,668,247
Cash distributions (5,500) (2,007,702) (2,013,202)
Balance, December 31, 1994 79,872 17,493,547 17,573,419
Contributions, net -- 49,601 49,601
Selling commissions and
other offering costs (Note 1) -- (16,513) (16,513)
Net income 16,724 819,497 836,221
Cash distribution (23,324) (1,036,066) (1,059,390)
Balance, June 30, 1995 $ 73,272 $17,310,066 $17,383,338
* Total Units sold at June 30, 1995, December 31, 1994, 1993 and
1992 were 2,212,693, 2,208,472, 2,193,182 and 2,168,254,
respectively. Cash distributions to Limited Partners per Unit
were $0.47, $0.91,$0.91 and $0.91 for the six months ended June
30, 1995 and the years ended December 31, 1994, 1993 and 1992,
respectively. Cash distributions to Limited Partners per Unit
are based on the average Units outstanding during the period
since they were of varying dollar amounts and percentages based
upon the dates Limited Partners were admitted to the Partnership
and additional Units were purchased through the distribution
reinvestment plan.
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30,
1995 1994
Cash flows from operating activities:
Net income $836,221 $816,198
Adjustments to reconcile net income to
net cash provided by operating activities:
Equity interest in Brauvin Gwinnett County
Venture 6,456) (6,499)
Minority interest's share of income from
Brauvin Chili's Limited Partnership 321 279
Depreciation and amortization 194,353 197,352
Decrease in rent receivables 13,755 8,792
Increase in deferred rent receivable (4,315) (5,064)
Increase in due from affiliates (755) (688)
Decrease in rent received in advance (62,467) (44,143)
Decrease in due to affiliates (6,902) (6,173)
Increase in tenant security deposits -- 198,448
Decrease in accounts payable
and accrued expenses (19,217) (25,412)
Decrease in prepaid offering costs 2,870 --
Total adjustments 111,187 316,892
Net cash provided by operating activities 947,408 1,133,090
Cash flows from investing activities:
Cash distribution to minority interest -
Brauvin Chili's Limited Partnership (300) (390)
Cash distribution from Brauvin Gwinnett
County Venture 8,640 7,681
Net cash provided by investing activities 8,340 7,291
Cash flows from financing activities:
Sale of Units, net of liquidations and
selling commissions 33,088 26,978
Cash distributions to General Partners (23,324) --
Cash distributions to Limited Partners (1,036,066)(1,003,809)
Net cash used in financing activities (1,026,302) (976,831)
Net decrease in cash and cash equivalents (70,554) 163,550
Cash and cash equivalents at beginning of
period 925,719 579,340
Cash and cash equivalents at end of period $855,165 $742,890
See accompanying notes to consolidated financial statements.
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
BRAUVIN INCOME PLUS L.P. III (the "Partnership") is a Delaware
limited partnership organized for the purpose of acquiring
debt-free ownership of existing, free-standing, income-producing
retail, office or industrial real estate properties predominantly
subject to "triple-net" leases. The General Partners of the
Partnership are Brauvin Realty Advisors III, Inc., Jerome J.
Brault and Cezar M. Froelich. Brauvin Realty Advisors III, Inc.
is owned by Messrs. Brault (50%) and Froelich (50%). Brauvin
Securities, Inc., an affiliate of the General Partners, was the
selling agent for the Partnership. The Partnership is managed by
an affiliate of the General Partners.
The Partnership was formed on July 31, 1989 and filed a
Registration Statement on Form S-11 with the Securities and
Exchange Commission which was declared effective on October 30,
1989. The sale of the minimum of $1,200,000 of limited
partnership interests of the Partnership (the "Units") necessary
for the Partnership to commence operations was achieved on
January 15, 1990. The Partnership's offering was originally
expected to close on October 29, 1990 but the Partnership, with
the receipt of the necessary regulatory approval, extended the
offering until it closed on October 29, 1991. Through June 30,
1995, the Partnership has sold $22,126,928 of Units. This total
includes $1,212,838 of Units purchased by Limited Partners who
utilized their distributions of Operating Cash Flow to purchase
additional Units through the distribution reinvestment plan (the
"Plan") and are net of Units purchased by the Partnership from
Limited Partners liquidating their investments in the Partnership
which Units were retired. As of June 30, 1995, the Plan
participants have acquired Units under the Plan which approximate
5.5% of the total Units outstanding.
The Partnership has acquired the land and buildings underlying
five Ponderosa restaurants, two Chi-Chi's restaurants, one
International House of Pancakes restaurant, one Applebee's
restaurant, two Sports Unlimited stores, and three Steak n Shake
restaurants. The Partnership also acquired a 99.5% and 6.4%
equity interests in two joint ventures with entities affiliated
with the Partnership. These ventures own the land underlying a
Chili's restaurant and a CompUSA store, respectively.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Method
The accompanying financial statements have been prepared using
the accrual method of accounting.
Rental Income
Rental income is recognized on a straight-line basis over the
life of the related leases. Differences between rental income
earned and amounts due per the respective lease agreements are
credited or charged as applicable to deferred rent receivable.
Federal Income Taxes
Under the provisions of the Internal Revenue Code, the
Partnership's income and losses are reportable by the partners on
their respective income tax returns. Accordingly, no provision
is made for Federal income taxes in the Consolidated Financial
Statements. However, in certain instances, the Partnership has
been required under applicable state law to remit directly to the
tax authorities amounts representing withholding from
distributions paid to partners.
Consolidation of Joint Venture
The Partnership owns a 99.5% equity interest in a joint
venture, Brauvin Chili's Limited Partnership, which owns one
Chili's restaurant. The accompanying financial statements have
consolidated 100% of the assets, liabilities, operations and
partners' capital of Brauvin Chili's Limited Partnership. All
significant intercompany accounts have been eliminated.
Investment in Joint Venture
The Partnership owns a 6.4% equity interest in a joint venture,
Brauvin Gwinnett County Venture, which owns one CompUSA store.
The accompanying financial statements include the investment in
Brauvin Gwinnett County Venture using the equity method of
accounting.
Investment in Real Estate
The operating properties acquired by the Partnership are stated
at cost including acquisition costs, net of accumulated
depreciation. Depreciation expense is computed on a
straight-line basis over approximately 35 years.
Organization and Offering Costs
Organization costs represent costs incurred in connection with
the organization and formation of the Partnership. Organization
costs are amortized over a period of five years using the
straight-line method. Offering costs represent costs incurred in
selling Units, such as the printing of the Prospectus and
marketing materials. Offering costs have been recorded as a
reduction of Limited Partners' Capital.
The General Partners have guaranteed payment of any
organization and offering costs that exceed defined percentages
of the gross proceeds of the offering. Prepaid offering costs
represent amounts in excess of the defined percentages of the
gross proceeds. Subsequently, gross proceeds are expected to
increase due to the purchase of additional Units through the
distribution reinvestment plan (the "Plan") and the prepaid
offering costs will be transferred to offering costs and treated
as a reduction in Partners' Capital.
<PAGE>
Cash and Cash Equivalents
Cash equivalents include all highly liquid debt instruments
with an original maturity within three months of purchase.
(2) PARTNERSHIP AGREEMENT
Distributions
All Operating Cash Flow, as defined in the Partnership
Agreement (the "Agreement") shall be distributed:(a) first, to
the Limited Partners until the Limited Partners receive an amount
equal to a 9-1/4% non-cumulative, non-compounded, annual return
on Adjusted Investment, as such term is defined in the Agreement,
commencing on the last day of the calendar quarter in which the
Unit was purchased (the "Current Preferred Return"); and (b)
thereafter, any remaining amounts will be distributed 98% to the
Limited Partners (on a pro rata basis) and 2% to the General
Partners.
The net proceeds of a sale or refinancing of a Partnership
property shall be distributed as follows:
. first, pro rata to the Limited Partners until each Limited
Partner has received an amount equal to a 10.5%
cumulative, non-compounded, annual return of Adjusted
Investment (the "Cumulative Preferred Return");
. second, to the Limited Partners until each Limited Partner
has been paid an amount equal to his Adjusted Investment,
as defined in the Agreement, apportioned pro rata among
the Limited Partners based on the amount of the Adjusted
Investment;
. thereafter, 95% to the Limited Partners (apportioned pro
rata based on Units) and 5% to the General Partners.
Distributions to Limited Partners for the second quarter of
1995 will be made to investors receiving quarterly distributions
on August 15, 1995 and to investors receiving monthly
distributions on approximately July, August and September 15,
1995, in the aggregate amount of $509,937.
Profits and Losses
Net profits and losses from operations of the Partnership
[computed without regard to any allowance for depreciation or
cost recovery deductions under the Internal Revenue Code of 1986,
as amended (the "Code")] for each taxable year of the Partnership
shall be allocated to each Partner in the same ratio as the cash
distributions received by such Partner attributable to that
period bears to the total cash distributed by the Partnership.
In the event that there are no cash distributions, net profits
and losses from operations of the Partnership (computed without
regard to any allowance for depreciation or cost recovery
deductions under the Code) shall be allocated 99% to the Limited
Partners and 1% to the General Partners. Notwithstanding the
foregoing, all depreciation and cost recovery deductions allowed
under the Code shall be allocated 2% to the General Partners and
98% to the Taxable Class Limited Partners, as defined in the
Agreement.
The net profit of the Partnership from any sale or other
disposition of a Partnership property shall be allocated (with
ordinary income being allocated first) as follows: (a) first, an
amount equal to the aggregate deficit balances of the Partners'
Capital Accounts, as such term is defined in the Agreement, shall
be allocated to each Partner who or which has a deficit Capital
Account balance in the same ratio as the deficit balance of such
Partner's Capital Account bears to the aggregate of the deficit
balances of all Partners' Capital Accounts; (b) second, to the
Limited Partners until the Capital Account balances of the
Limited Partners are equal to any unpaid Cumulative Preferred
Return, as of such date; (c) third, to the Limited Partners
until the Capital Account balances of the Limited Partners are
equal to the sum of the amount of their Adjusted Investment
plus any unpaid Cumulative Preferred Return; (d) fourth, to the
General Partners until their Capital Account balances are
equal to any previously subordinated fees; and (e) thereafter,
95% to the Limited Partners and 5% to the General Partners. The
net loss of the Partnership from any sale or other disposition of
a Partnership property shall be allocated as follows: (a) first,
an amount equal to the aggregate positive balances in the
Partners' Capital Accounts, to each Partner in the same ratio as
the positive balance in such Partner's Capital Account bears to
the aggregate of all Partners' positive Capital Accounts
balances; and (b) thereafter, 95% to the Limited Partners and 5%
to the General Partners.
(3) TRANSACTIONS WITH RELATED PARTIES
The Partnership paid an affiliate of the General Partners an
acquisition fee of 5% of the gross proceeds of the Partnership's
offering for their services in connection with the acquisition of
properties. An allocation of acquisition fees related to the
properties not ultimately purchased by the Partnership were
expensed as incurred.
The Partnership paid the selling agent a non-accountable
expense allowance in an amount equal to 2% of the gross proceeds
of the Partnership's offering, a portion of which was reallowed
to Participating Dealers.
The Partnership pays an affiliate of the General Partners an
annual property management fee equal to up to 1% of gross
revenues derived from Partnership properties managed by such
affiliate. The property management fee is subordinated to receipt
by the Limited Partners of distributions of Operating Cash Flow
in an amount equal to the Current Preferred Return.
An affiliate of one of the General Partners provides securities
and real estate counsel to the Partnership.
<PAGE>
Fees, commissions and other expenses paid or payable to the
General Partners or its affiliates for the six months ended June
30, 1995 and 1994 were as follows:
1995 1994
Selling commissions $ 13,641 $ 12,966
Management fees 11,260 --
Reimbursable operating
expenses 36,000 37,800
Legal fees -- 1,800
(4) EQUITY INVESTMENT
The Partnership owns an equity interest in the Brauvin Gwinnett
County Venture and reports its investment on the equity method.
The following are condensed financial statements for the Brauvin
Gwinnett County Venture:
BRAUVIN GWINNETT COUNTY VENTURE
June 30, 1995 December 31, 1994
Land and buildings, net $2,399,386 $2,422,262
Other assets 14,157 45,198
Total Assets $2,413,543 $2,467,460
Liabilities $ -- $ 19,792
Partners' capital 2,413,543 2,447,668
Total Liabilities and
Partners Capital $2,413,543 $2,467,460
For the six months ended June 30,
1995 1994
Rental income $ 124,978 $ 132,354
Expenses:
Depreciation 22,876 22,876
Management fees 1,229 1,135
Operating and administrative --
6,800
Net income $100,874 $101,543
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Liquidity and Capital Resources
The Partnership commenced an offering to the public on
October 30, 1989 of 2,500,000 Units. The offering was
anticipated to close on October 29, 1990 but was extended by the
General Partners with the necessary regulatory approval to
October 29, 1991. The Offering was conditioned upon the sale
of $1,200,000,which was achieved on January 15, 1990. The
Offering closed on October 29, 1991 with the Partnership raising
a cumulative total of $21,307,600. The Partnership continues to
raise additional funds through the Plan. The Plan raised
$1,212,838 through June 30, 1995 from Limited Partners investing
their distributions of Operating Cash Flow in additional Units.
As of December 31, 1994, Units valued at $231,274 have been
purchased by the Partnership from Limited Partners liquidating
their investment in the Partnership and have been retired.
The General Partners will be adopting an enhancement to the
Partnership's Distribution Reinvestment Plan effective August,
1995. This enhancement will permit unit holders to reinvest at a
unit price that will be adjusted to reflect any return of
investor capital generated through property sales. In addition,
any unit liquidations will also occur at the adjusted unit price.
The Partnership purchased the land, buildings and
improvements underlying five Ponderosa restaurants on January 19,
1990, February 16, 1990, March 19, 1990, April 24, 1990 and June
4, 1990,respectively. In addition, the Partnership closed on the
land, buildings and improvements underlying two Chi-Chi's
restaurants; the first closed on March 12, 1991 and the second
closed on March 27, 1991. The land, buildings and improvements
underlying an IHOP restaurant were purchased on April 26, 1991,
an Applebee's restaurant on June 5, 1991 (which was expanded in
1992), two Sports Unlimited sporting goods stores on September
17, 1991, a Chili's restaurant on February 7, 1992 and three
Steak n Shake restaurants on April 16, 1992.
The Partnership is fully invested in properties with the
exception of funds raised through the Plan. These operating
properties are expected to generate cash flow for the Partnership
after deducting certain operating and general and administrative
expenses from their rental income. The Partnership has no funds
available to purchase additional property, excluding those raised
through the Plan.
Below is a table summarizing the historical data for distribution
rates per annum:
Distribution
Date 1995 1994 1993 1992 1991
February 15 9.25% 9.00% 9.00% 9.25% 9.25%
May 15 9.25 9.00 9.00 9.25 9.25
August 15 9.25 9.00 9.00 9.00 9.25
November 15 9.25 9.00 9.00 9.25
Future increases in the Partnership's distribution will
largely depend on increased sales at the Partnership's properties
resulting in additional percentage rent and, to a lesser extent
rental increases, which will occur due to increases in receipts
from certain leases based upon increases in the Consumer Price
Index or scheduled increases of base rent.
In order to enhance the Partnership's diversity and overall
financial performance, the General Partners have recently agreed
to the following two changes within the Partnership's Ponderosa
portfolio. First, Unit #856 in Dayton, Ohio is being converted
into a Bennigan's. Bennigan's is an affiliate of Ponderosa.
Metromedia Steakhouses Company L.P., the current lease obligor,
will remain liable on the existing lease. However, the General
Partners believe the conversion will ultimately generate
additional percentage rent to the Partnership and enhance the
overall security of the lease. The conversion is anticipated to
be completed in October, 1995. Second, on July 13, 1995, Unit
#173 in Elmhurst, Illinois was subleased to a local operator.
This sublease will cause base rent to increase by 10% to the
Partnership. Metromedia Steakhouses remains fully liable under
the terms of the original lease. The General Partners believe
these changes within the Partnership's Ponderosa portfolio will
add to both diversity and the underlying quality of the
Partnership's assets.
Since the distribution to Limited Partners had been at least
9.25% per annum during the six months ended June 30, 1995, the
General Partners and its affiliates collected a management fee of
$11,260 and received $10,325 in Operating Cash Flow
distributions. This is anticipated to continue throughout 1995.
Results of Operations - Six Months ended June 30, 1995 and 1994
Results of operations for the six months ended June 30, 1995
reflected net income of $836,221 compared to $816,198 for the six
months ended June 30, 1994, an increase of approximately $20,000.
The increase in net income was due to an increase in rental
income and interest income and a decrease in total expenses.
Total income for the six months ended June 30, 1995 was
$1,108,685 as compared to $1,095,259 for the six months ended
June 30, 1994, an increase of approximately $13,000. The
increase in total income is mainly due to an increase in rental
income as a result of increased percentage rents. Total expenses
for the six months ended June 30, 1995 were $278,599 as compared
to $285,281 for the six months ended June 30, 1994, a decrease of
approximately $7,000. The decrease in expenses was due to a
decrease in general and administrative expenses as a result of a
decrease in legal expense which was mostly offset by the
Partnership incurring management fees during 1995 as a result of
the limited partners receiving a 9.25% distribution on their
invested capital.
Results of Operations - Three Months ended June 30, 1995 and 1994
Results of operations for the three months ended June 30, 1995
reflected net income of $424,530 as compared to $403,582 for the
three months ended June 30, 1994, an increase of approximately
$21,000. Total income for the three months ended June 30, 1995
was $559,166 as compared to $551,350 for the three months ended
June 30, 1994, an increase of approximately $8,000. Total
expenses for the three months ended June 30, 1995 were $137,787
as compared to $151,587 for the three months ended June 30, 1994,
a decrease of approximately $14,000.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
None.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission of Matters to a Vote of Security Holders.
None.
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports On Form 8-K.
Exhibit 27. Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
l934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
BY: Brauvin Realty Advisors III, Inc.
Corporate General Partner of
Brauvin Income Plus L.P. III
BY: /s/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of Directors,
President and Chief Executive Officer
DATE: August 14, 1995
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer and Treasurer
DATE: August 14, 1995
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 855,165
<SECURITIES> 154,830 <F1>
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 18,308,792 <F2>
<DEPRECIATION> 1,680,866
<TOTAL-ASSETS> 17,748,494
<CURRENT-LIABILITIES> 0
0
0
<COMMON> 17,383,338 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 17,748,494
<SALES> 0
<TOTAL-REVENUES> 1,108,685 <F4>
<CGS> 0
<TOTAL-COSTS> 278,599 <F5>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 836,221
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "SECURITIES" REPRESENTS INVESTMENT IN JOINT VENTURE
<F2> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<F3> "COMMON" REPRESENTS TOTAL PARTNERS CAPITAL
<F4> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F5> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
VENTURES' NET INCOME/LOSS
</FN>
</TABLE>
