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 September 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 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>
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
INDEX
Page
PART I Financial Information
Item 1. Consolidated Financial Statements. . . . . . . . . . . . . 3
Consolidated Balance Sheets at September 30, 1995 and
December 31, 1994. . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Operations for the nine months
ended September 30, 1995 and September 30, 1994. . . . . . 5
Consolidated Statements of Operations for the three
months ended September 30, 1995 and September 30, 1994 . . 6
Consolidated Statements of Partners' Capital for
the periods January 1, 1992 to September 30, 1995. . . . . 7
Consolidated Statements of Cash Flows for the nine months
ended September 30, 1995 and September 30, 1994. . . . . . 8
Notes to Consolidated Financial Statements . . . . . . . . 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . 16
PART II
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . 19
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . 19
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . 19
Item 4. Submissions of Matters to a Vote of Security Holders . . . 19
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . 19
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 19
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
<PAGE>
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 September 30, 1995, Consolidated
Statements of Operations for the nine months ended September 30, 1995 and
1994, Consolidated Statements of Operations for the three months ended
September 30, 1995 and 1994, Consolidated Statements of Partners' Capital for
the periods January 1, 1992 to September 30, 1995 and Consolidated Statements
of Cash Flows for the nine months ended September 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
September 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 (1,777,111) (1,486,513)
Net investment in real estate 16,531,681 16,822,279
Investment in Brauvin Gwinnett
County Venture (Note 4) 154,064 157,014
Cash and cash equivalents 939,775 925,719
Rent receivable -- 13,755
Deferred rent receivable 34,415 27,943
Due from affiliates -- 2,352
Prepaid offering costs 73,751 78,078
Total Assets $17,733,686 $18,027,140
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and accrued expenses $ 298,773 $ 298,738
Rent received in advance 47,440 144,944
Due to affiliates 3,538 10,421
Total Liabilities 349,751 454,103
MINORITY INTEREST IN BRAUVIN CHILI'S
LIMITED PARTNERSHIP (325) (382)
PARTNERS' CAPITAL:
General Partners 71,989 79,872
Limited Partners 17,312,271 17,493,547
Total Partners' Capital 17,384,260 17,573,419
Total Liabilities and Partners'
Capital $17,733,686 $18,027,140
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN INCOME PLUS L.P. III
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30,
1995 1994
INCOME:
Rental $1,676,721 $1,636,721
Interest 20,232 17,461
Other 2,979 18,782
Total Income 1,699,932 1,672,964
EXPENSES:
Management fees 23,590 --
General and administrative 102,310 120,208
Amortization of organization costs -- 4,500
Depreciation 290,598 296,190
Total expenses 416,498 420,898
Income before minority interest and
equity interest in joint ventures 1,283,434 1,252,066
Minority interest share in Brauvin Chili's
Limited Partnership's net income (482) (381)
Equity interest in Brauvin Gwinnett
County Venture's net income 9,530 9,407
Net income $1,292,482 $1,261,092
Net income allocated to the
General Partners $ 25,850 $ 25,222
Net income allocated to the
Limited Partners $1,266,632 $1,235,870
Net income per Unit outstanding (a) $ .57 $ 0.56
(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 OPERATIONS
For the Three Months Ended September 30,
1995 1994
INCOME:
Rental $ 586,910 $564,664
Interest 4,558 9,977
Other (221) 3,064
Total Income 591,247 577,705
EXPENSES:
Management fees 5,637 --
General and administrative 36,017 32,279
Amortization of organization costs -- 1,500
Depreciation 96,245 101,838
Total expenses 137,899 135,617
Income before minority interest and
equity interest in joint ventures 453,348 442,088
Minority interest's share in Brauvin
Chili's Limited Partnership's net income (161) (102)
Equity interest in Brauvin Gwinnett
County Venture's net income 3,074 2,908
Net income $ 456,261 $444,894
Net income allocated to the
General Partners $ 9,125 $ 8,898
Net income allocated to the
Limited Partners $ 447,136 $435,996
Net income per Unit outstanding (a) $ .20 $ 0.20
(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 September 30, 1995
General Limited
Partners Partners* 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 (Note 1) -- (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 (Note 1) -- (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 -- 122,388 122,388
Selling commissions and other
offering costs (Note 1) -- (24,885) (24,885)
Net income 25,850 1,266,632 1,292,482
Cash distribution (33,733) (1,545,411) (1,579,144)
Balance, September 30, 1995 $ 71,989 $17,312,271 $17,384,260
* Total Units sold at September 30, 1995, December 31, 1994, 1993 and 1992
were 2,219,972, 2,208,472, 2,193,182 and 2,168,254, respectively. Cash
distributions to Limited Partners per Unit were $0.70, $0.91, $0.91 and $0.91
for the nine months ended September 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 Nine Months Ended September 30,
1995 1994
Cash flows from operating activities:
Net income $1,292,482 $1,261,092
Adjustments to reconcile net income to
net cash provided by operating activities:
Equity interest in Brauvin Gwinnett
County Venture (9,530) (9,407)
Minority interest's share of income from
Brauvin Chili's Limited Partnership 482 381
Depreciation and amortization 290,598 300,690
Decrease in rent receivables 13,755 8,792
Increase in deferred rent receivable (6,472) (7,596)
Decrease (increase) in due from affiliates 2,352 (688)
Decrease in rent received in advance (97,504) (79,717)
Decrease in due to affiliates (6,883) (5,745)
Increase in tenant security deposits -- 198,448
Increase (decrease) in accounts payable
and accrued expenses 35 (9,320)
Total adjustments 186,833 395,838
Net cash provided by operating activities 1,483,642 1,656,930
Cash flows from investing activities:
Cash distribution to minority interest -
Brauvin Chili's Limited Partnership (425) (515)
Cash distribution from Brauvin Gwinnett
County Venture 12,480 11,521
Net cash provided by investing activities 12,055 11,006
Cash flows from financing activities:
Sale of Units, net of selling commissions
and other offering costs 101,830 67,338
Cash distributions to General Partners -- --
Cash distributions to Limited Partners (1,545,411) (1,497,575)
Net cash used in financing activities (1,477,314) (1,430,237)
Net increase in cash and cash equivalents 14,056 237,699
Cash and cash equivalents at beginning
of period 925,719 579,340
Cash and cash equivalents at end of period $ 939,775 $ 817,039
See accompanying notes to consolidated financial statements.
<PAGE>
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
September 30, 1995, the Partnership has sold $22,199,715 of Units. This
total includes $1,285,625 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 September 30, 1995, the Plan participants have acquired
Units under the Plan which approximate 5.8% 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.
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 third quarter of 1995
will be made to investors receiving quarterly distributions on November
15, 1995 and to investors receiving monthly distributions on
approximately October, November and December 15, 1995, in the aggregate
amount of $515,417.
A distribution to the General Partners for the third quarter of
1995 will be made on November 15, 1995 in the amount of $10,519.
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.
Fees, commissions and other expenses paid or payable to the General
Partners or its affiliates for the nine months ended September 30, 1995
and 1994 were as follows:
1995 1994
Selling commissions $22,743 $21,643
Management fees 23,590 --
Reimbursable operating expenses 54,000 56,251
Legal fees 4,356 2,700
(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
September 30, 1995 December 31, 1994
Land and buildings, net $2,387,949 $2,422,262
Other assets 13,625 45,198
Total Assets $2,401,574 $2,467,460
Liabilities $ -- $ 19,792
Partners' capital 2,401,574 2,447,668
Total Liabilities and
Partners Capital $2,401,574 $2,467,460
<PAGE>
For the Nine Months Ended September 30,
1995 1994
Rental income $190,751 $191,729
Expenses:
Depreciation 34,314 34,314
Management fees 1,870 1,926
Operating and administrative 5,663 8,510
Net income $148,904 $146,979
<PAGE>
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 $1,285,625
through September 30, 1995 from Limited Partners investing their
distributions of Operating Cash Flow in additional Units. As of
September 30, 1995, Units valued at $393,510 have been purchased by the
Partnership from Limited Partners liquidating their original investment
in the Partnership and have been retired.
The General Partners have adopted 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.
<PAGE>
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 9.25 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 early 1996. 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.
The Chi Chi's located in Hickory, North Carolina closed October 2,
1995. However, the property is leased to Foodmaker, Inc. whom has made
complete payments under the lease. Foodmaker, Inc. is actively seeking
a subtenant for the property.
Since the distribution to Limited Partners had been at least 9.25%
per annum during the nine months ended September 30, 1995, the General
Partners and its affiliates collected a management fee of $23,590 and
received $22,743 in Operating Cash Flow distributions. This is
anticipated to continue throughout 1995.
Results of Operations - Nine Months ended September 30, 1995 and 1994
Results of operations for the nine months ended September 30, 1995
reflected net income of $1,292,482 compared to $1,261,092 for the nine
months ended September 30, 1994, an increase of approximately $31,000.
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
nine months ended September 30, 1995 was $1,699,932 as compared to
$1,672,964 for the nine months ended September 30, 1994, an increase of
approximately $27,000. 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 nine months ended September 30, 1995 were
$416,498 as compared to $420,898 for the nine months ended September 30,
1994, a decrease of approximately $4,000. 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 September 30, 1995 and 1994
Results of operations for the three months ended September 30, 1995
reflected net income of $456,261 as compared to $444,894 for the three
months ended September 30, 1994, an increase of approximately $11,000.
Total income for the three months ended September 30, 1995 was $591,247
as compared to $577,705 for the three months ended September 30, 1994,
an increase of approximately $14,000. Total expenses for the three
months ended September 30, 1995 were $137,899 as compared to $135,617
for the three months ended September 30,1994, an increase of
approximately $2,000. The increase in net income was mainly due to an
increase in rental income as a result of increased percentage rents.
<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: November 14, 1995
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer and Treasurer
DATE: November 14, 1995
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 939,775
<SECURITIES> 154,064 <F1>
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 18,308,792 <F2>
<DEPRECIATION> 1,777,111
<TOTAL-ASSETS> 17,733,686
<CURRENT-LIABILITIES> 0
0
0
<COMMON> 17,384,260 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 17,733,686
<SALES> 0
<TOTAL-REVENUES> 1,699,932 <F4>
<CGS> 0
<TOTAL-COSTS> 416,498 <F5>
<OTHER EXPENSES> (9,048) <F6>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
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<NET-INCOME> 1,292,482
<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
<F6> "OTHER EXPENSES" REPRESENTS MINORITY INTEREST AND JOINT
VENTURES' NET INCOME/LOSS
</FN>
</TABLE>
