SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K/A
Amendment No. 1 to
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Original Report: June 14, 1996
CORNERSTONE REALTY INCOME TRUST, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 0-23954 54-1589139
(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
306 East Main Street
Richmond, Virginia 23219
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code:
(804) 643-1761
<PAGE>
CORNERSTONE REALTY INCOME TRUST, INC.
FORM 8-K/A
Index
Page No.
Item 2. Acquisition or Disposition of Assets
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
a. Longmeadow Apartments
Independent Auditors' Report
(Longmeadow Apartments)
Historical (audited) and Three months
ended March 31, 1996 (unaudited)
Statements of Income and
Direct Operating Expenses
(Longmeadow Apartments)
Notes to Historical (audited) and
Three months ended March 31, 1996
(unaudited) Statements of
Income and Direct Operating
Expenses (Longmeadow Apartments)
b. Trophy Chase Apartments (formerly
Westfield Club)
Independent Auditors' Report
(Trophy Chase Apartments)
Historical Statement of Income and
Direct Operating Expenses
(Trophy Chase Apartments)
Note to Historical Statement of
Income and Direct Operating
Expenses (Trophy Chase Apartments)
<PAGE>
c. Beacon Hill Apartments
Independent Auditors' Report
(Beacon Hill Apartments)
Historical Statement of Income and
Direct Operating Expenses
(Beacon Hill Apartments)
Note to Historical Statement of
Income and Direct Operating
Expenses (Beacon Hill Apartments)
d. Meadow Creek Apartments
Independent Auditors' Report
(Meadow Creek Apartments)
Historical Statement of Income and
Direct Operating Expenses
(Meadow Creek Apartments)
Note to Historical Statement of
Income and Direct Operating
Expenses (Meadow Creek Apartments)
e. Summerwalk Apartments (formerly
Lakewood)
Independent Auditors' Report
(Summerwalk Apartments)
Historical (audited) and Three
months ended March 31, 1996
(unaudited) Statements of Income
and Direct Operating Expenses
(Summerwalk Apartments)
Notes to Historical (audited) and
Three months ended March 31, 1996
(unaudited) Statements of Income
and Direct Operating Expenses
(Summerwalk Apartments)
f. Willow Creek Apartments
Independent Auditors' Report
(Willow Creek Apartments)
<PAGE>
Historical (audited) and Three months
ended March 31, 1996 (unaudited)
Statements of Income and
Direct Operating Expenses
(Willow Creek Apartments)
Notes to Historical (audited) and
Three months ended March 31, 1996
(unaudited) Statement of
Income and Direct Operating
Expenses (Willow Creek Apartments)
g. Pro Forma Statement of Operating for
the Three Months ended March 31, 1996
(unaudited)
Pro Forma Balance Sheet as of
March 31, 1996 (unaudited)
Pro Forma Statement of Operations
for the Year ended December 31, 1995
(unaudited)
h. Exhibits
10.1 Purchase Contract for Longmeadow
Apartments*
10.2 Property Management Agreement for
Longmeadow Apartments*
10.3 Purchase Contract for Trophy Chase
Apartments*
10.4 Property Management Agreement for Trophy
Chase Apartments*
10.5 Purchase Contract for Beacon Hill
Apartments*
10.6 Property Management Agreement for Beacon
Hill Apartments*
10.7 Purchase Contract for Meadow Creek
Apartments*
10.8 Property Management Agreement for Meadow
Creek Apartments*
<PAGE>
10.9 Purchase Agreement for Summerwalk
Apartments*
10.10 Property Management Agreement for
Summerwalk Apartments*
10.11 Purchase Contract for Willow Creek
Apartments*
10.12 Property Management Agreement for Willow
Creek Apartments*
23.1 Consent of Independent Auditors
23.2 Consent of Independent Auditors
23.3 Consent of Independent Auditors
23.4 Consent of Independent Auditors
23.5 Consent of Independent Auditors
23.6 Consent of Independent Auditors
- -----------------------
*Previously Filed.
<PAGE>
The Company hereby amends and restates Item 7.a., 7.b., 7.c., 7.d.,
7.e., 7.f. and 7.g. of its Current Report on Form 8-K dated June 14, 1996 as
follows:
<PAGE>
ITEM 7.a.
<PAGE>
[LOGO]
DIXON, ODOM & CO., L.L.P.
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statement of income and direct operating
expenses exclusive of items not comparable to the proposed future operations of
the property Longmeadow Apartments located in Charlotte, North Carolina for the
year ended December 31, 1995. This statement is the responsibility of the
management of Longmeadow Apartments. Our responsibility is to express an opinion
on this 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 statement is free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the statement. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the statement. We believe that our audit
provides a reasonable basis for our opinion.
The accompanying statement was prepared for the purpose of complying with the
rules and regulations of the Securities and Exchange Commission (for inclusion
in a filing by Cornerstone Realty Income Trust, Inc.) and excludes material
expenses, described in Note 1 to the statement, that would not be comparable to
those resulting from the proposed future operations of the property.
In our opinion, the statement referred to above presents fairly, in all material
respects, the income and direct operating expenses of Longmeadow Apartments (as
defined above) for the year ended December 31, 1995, in conformity with
generally accepted accounting principles.
/s/ DIXON, ODOM & CO., L.L.P.
High Point, North Carolina
May 21, 1996
A Member of 1829 Eastchester Drive
Moores P.O. Box 2646
Rowland High Point, NC 27261-2646
INTERNATIONAL 910-889-5156, Fax 910-889-6168
A Worldwide Association
of Independent Accounting Firms
<PAGE>
LONGMEADOW APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED
FUTURE OPERATIONS OF THE PROPERTY
Year Ended December 31, 1995
INCOME
Rental and other income $ 744,456
DIRECT OPERATING EXPENSES
Administrative and other 87,287
Insurance 8,168
Repairs and maintenance 102,168
Taxes, property 48,879
Utilities 37,759
TOTAL DIRECT OPERATING EXPENSES 284,261
Operating income exclusive of items not comparable
to the proposed future operations of the property $ 460,195
See accompanying note.
<PAGE>
LONG MEADOW APARTMENTS
NOTE TO STATEMENT OF INCOME AND DIRECT OPERATING
EXPENSES EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE
PROPOSED FUTURE OPERATIONS OF THE PROPERTY
Year Ended December 31, 1995
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Longmeadow Apartments is a 120 unit residential apartment complex located on
7.12 acres in Charlotte, North Carolina. Living space totals 104,178 square
feet.
The assets comprising the property were owned by Longmeadow Associates, Ltd.
throughout 1995. Cornerstone Realty Income Trust, Inc. purchased the property in
April 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non-rent-related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are mortgage interest, property depreciation, legal fees, accounting
fees, management fees and amortization of deferred loan costs and construction
period interest.
<PAGE>
LONGMEADOW APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED
FUTURE OPERATIONS OF THE PROPERTY
Three Months Ended March 31, 1996
INCOME
Rental and other income $195,451
DIRECT OPERATING EXPENSES
Administrative and other 15,393
Insurance 1,898
Repairs and maintenance 18,095
Taxes, property 12,336
Utilities 10,482
TOTAL DIRECT OPERATING EXPENSES 58,204
Operating income exclusive of items not
comparable to the proposed future operations
of the property $137,247
<PAGE>
LONGMEADOW APARTMENTS
NOTE TO STATEMENT OF INCOME AND DIRECT OPERATING
EXPENSES EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE
PROPOSED FUTURE OPERATIONS OF THE PROPERTY
Three Months Ended March 31, 1996
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Longmeadow Apartments is a 120 unit residential apartment complex located on
7.12 acres in Charlotte, North Carolina. Living space totals 104,178 square
feet.
The assets comprising the property were owned by Longmeadow Associates, Ltd.
through March 31, 1996. Cornerstone Realty Income Trust, Inc. purchased
the property in April 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non-rent-related income and expenses not considered comparable
to those resulting from the proposed future operations of the property.
Excluded expenses are mortgage interest, property depreciation, legal fees,
accounting fees, management fees and amortization of deferred loan costs and
construction period interest.
<PAGE>
ITEM 7.b.
<PAGE>
[L.P. MARTIN & COMPANY LETTERHEAD]
Independent Auditors' Report
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statements of income and direct operating
expenses exclusive of items not comparable to the proposed future operations of
the property Westfield Club Apartments located in Charlottesville, Virginia for
the twelve month periods ended December 31, 1995, 1994 and 1993. These
statements are the responsibility of the management of Westfield Club
Apartments; Cornerstone Realty Group, Inc. Our responsibility is to express an
opinion on the statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the statement. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall presentation of the statement. We believe that
our audits provide a reasonable basis for our opinion.
The accompanying statements were prepared for the purpose of complying with the
rules and regulations of the Securities and Exchange Commission (for inclusion
in a filing by Cornerstone Realty Income Trust, Inc.), and exclude material
expenses described in Note 1 to the statements, that would not be comparable to
those resulting from the proposed future operations of the property.
In our opinion, the statements referred to above present fairly, in all material
respects, the operating income of Westfield Club Apartments (as defined above)
for the twelve month periods ended December 31, 1995, 1994 and 1993 in
conformity with generally accepted accounting principles.
/s/ L.P. MARTIN & COMPANY
Richmond, Virginia
July 18, 1996
<PAGE>
WESTFIELD CLUB APARTMENTS
STATEMENTS OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
<TABLE>
<CAPTION>
Twelve Months Ended
12/31/95 12/31/94 12/31/93
<S> <C>
INCOME
Rental and Other Income $ 868,732 $ 850,809 $ 813,688
DIRECT OPERATING EXPENSES
Administrative and Other 93,108 78,021 105,286
Insurance 18,443 19,516 21,799
Repairs and Maintenance 156,719 160,404 185,009
Taxes - Property 36,878 35,109 35,227
Utilities 87,594 69,092 68,339
TOTAL DIRECT OPERATING
EXPENSES 392,742 362,142 415,660
Operating income exclusive of items
not comparable to the proposed future
operations of the property $ 475,990 $488,667 $398,028
</TABLE>
<PAGE>
WESTFIELD CLUB APARTMENTS
NOTE TO THE STATEMENTS OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTH PERIODS ENDED DECEMBER 31, 1995, 1994 AND 1993
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Westfield Club Apartments is a 185 unit residential garden style apartment
complex located on 7.457 acres in Charlottesville, Virginia. Living space totals
148,584 square feet.
The assets comprising the property were owned by Westfield Club Associates, a
related party in which Glade Knight, a director and president of Cornerstone
Realty Income Trust, Inc., was a general partner, during the audit period. The
Company purchased the assets comprising the property at a price approximating
fair market value, based on an independent appraisal, in April, 1996. All
partnership distributions as a result of the sale were made to limited partners.
In accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non rent related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are property depreciation, amortization, legal fees, accounting fees,
management fees, interest expense and partnership expenses which are not
attributable to the operation of the property.
<PAGE>
ITEM 7.c.
<PAGE>
[L.P. MARTIN & COMPANY LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statement of income and direct operating
expenses exclusive of items not comparable to the proposed future operations of
the property Beacon Hill Apartments located in Charlotte, North Carolina for the
twelve month period ended April 30, 1996. This statement is the responsibility
of the management of Beacon Hill Apartments. Our responsibility is to express an
opinion on this 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 statement is free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the statement. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the statement. We believe that our audit
provides a reasonable basis for our opinion.
The accompanying statement was prepared for the purpose of complying with the
rules and regulations of the Securities and Exchange Commission (for inclusion
in a filing by Cornerstone Realty Income Trust, Inc.) and excludes material
expenses, described in Note 1 to the statement, that would not be comparable to
those resulting from the proposed future operations of the property.
In our opinion, the statement referred to above presents fairly, in all material
respects, the income and direct operating expenses of Beacon Hill Apartments (as
defined above) for the twelve month period ended April 30, 1996, in conformity
with generally accepted accounting principles.
/s/ L.P. MARTIN & COMPANY
Richmond, Virginia
July 19, 1996
<PAGE>
BEACON HILL APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED APRIL 30, 1996
INCOME
Rental and Other Income $ 2,053,866
DIRECT OPERATING EXPENSES
Administrative and Other 155,690
Insurance 27,052
Repairs and Maintenance 204,519
Taxes, Property 148,277
Utilities 145,120
TOTAL DIRECT OPERATING EXPENSES 680,658
Operating income exclusive of items not
comparable to the proposed future
operations of the property $ 1,373,208
<PAGE>
BEACON HILL APARTMENTS
NOTE TO THE STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED APRIL 30, 1996
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Beacon Hill Apartments is a 349 unit residential garden style apartment complex
located on 14.17 acres in Charlotte, North Carolina. Living space totals 256,075
square feet.
During the financial statement period, the assets comprising the property were
owned by the Jagger Company. Cornerstone Realty Income Trust, Inc. purchased
the property on May 30, 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non rent related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are mortgage interest, property depreciation, legal fees, accounting
fees and management fees.
<PAGE>
ITEM 7.d.
<PAGE>
[L.P MARTIN & COMPANY LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statement of income and direct operating
expenses exclusive of items not comparable to the proposed future operations of
the property Meadow Creek Apartments located in Pineville, North Carolina for
the twelve month period ended April 30, 1996. This statement is the
responsibility of the management of Meadow Creek Apartments. Our responsibility
is to express an opinion on this 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 statement is free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the statement. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the statement. We believe that our audit
provides a reasonable basis for our opinion.
<PAGE>
The accompanying statement was prepared for the purpose of complying with the
rules and regulations of the Securities and Exchange Commission (for inclusion
in a filing by Cornerstone Realty Income Trust, Inc.) and excludes material
expenses, described in Note 1 to the statement, that would not be comparable to
those resulting from the proposed future operations of the property.
In our opinion, the statement referred to above presents fairly, in all material
respects, the income and direct operating expenses of Meadow Creek Apartments
(as defined above) for the twelve month period ended April 30, 1996, in
conformity with generally accepted accounting principles.
/s/ L.L.P MARTIN & COMPANY
Richmond, Virginia
August 9, 1996
<PAGE>
MEADOW CREEK APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED APRIL 30, 1996
INCOME
Rental and Other Income $ 1,610,504
DIRECT OPERATING EXPENSES
Administrative and Other 117,099
Insurance 42,500
Repairs and Maintenance 216,198
Taxes, Property 79,734
Utilities 77,592
TOTAL DIRECT OPERATING EXPENSES 533,123
Operating income exclusive of items not
comparable to the proposed future operations
of the property $1,077,381
See accompanying note to the financial statement.
<PAGE>
MEADOW CREEK APARTMENTS
NOTE TO THE STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED APRIL 30, 1996
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Meadow Creek Apartments is a 250 unit residential garden style apartment complex
located on 21.83 acres in Pineville, North Carolina. Living space totals 214,920
square feet.
During the financial statement period, the assets comprising the property were
owned by Meadow Creek Partners Limited Partnership. Cornerstone Realty Income
Trust, Inc. purchased the property on May 31, 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non rent related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are mortgage interest, property depreciation, legal fees and management
fees.
<PAGE>
ITEM 7.e.
<PAGE>
[LOGO]
DIXON, ODOM & CO., L.L.P.
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statement of income and direct operating
expenses exclusive of items not comparable to the proposed future operations
of the property Lakewood Apartments located in Concord, North Carolina for
the year ended December 31, 1995. This statement is the responsibility of the
management of Lakewood Apartments. Our responsibility is to express an
opinion on this 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 statement is free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the statement. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the
statement. We believe that our audit provides a reasonable basis for our
opinion.
The accompanying statement was prepared for the purpose of complying with the
rules and regulations of the Securities and Exchange Commission (for
inclusion in a filing by Cornerstone Realty Income Trust, Inc.) and excludes
material expenses, described in Note 1 to the statement, that would not be
comparable to those resulting from the proposed future operations of the
property.
In our opinion, the statement referred to above presents fairly, in all
material respects, the income and direct operating expenses of Lakewood
Apartments (as defined above) for the year ended December 31, 1995, in
conformity with generally accepted accounting principles.
/s/ DIXON, ODOM & CO., L.L.P.
High Point, North Carolina
June 20, 1996
A Member of 1829 Eastchester Drive
Moores P.O. Box 2646
Rowland High Point, NC 27261-2646
International 910-889-5156, Fax 910-889-6168
A Worldwide Association
of Independent Accounting Firms
<PAGE>
LAKEWOOD APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED
FUTURE OPERATIONS OF THE PROPERTY
Year Ended December 31, 1995
INCOME
Rental and other income $ 891,345
DIRECT OPERATING EXPENSES
Administrative and other 90,705
Insurance 12,681
Repairs and maintenance 179,920
Taxes, property 34,307
Utilities 69,113
TOTAL DIRECT OPERATING EXPENSES 386,726
Operating income exclusive of items not comparable
to the proposed future operations of the property $ 504,619
See accompanying note.
<PAGE>
LAKEWOOD APARTMENTS
NOTE TO STATEMENT OF INCOME AND DIRECT OPERATING
EXPENSES EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE
PROPOSED FUTURE OPERATIONS OF THE PROPERTY
Year Ended December 31, 1995
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Lakewood Apartments is a 160 unit residential apartment complex located on 26.67
acres in Concord, North Carolina. Living space totals 154,000 square feet.
The assets comprising the property were owned by Lakewood Apartments, Ltd.
throughout 1995. Cornerstone Realty Income Trust, Inc. purchased the property in
May 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non-rent-related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are mortgage interest and related financial expenses, mortgage
insurance premiums, property depreciation, legal fees, accounting fees,
management fees, bookkeeping fees and amortization of deferred loan costs and
construction period interest.
<PAGE>
LAKEWOOD APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED
FUTURE OPERATIONS OF THE PROPERTY
Three Months Ended March 31, 1996
INCOME
Rental and other income $231,960
DIRECT OPERATING EXPENSES
Administrative and other 17,028
Insurance 3,041
Repairs and maintenance 33,860
Taxes, property 8,560
Utilities 19,074
TOTAL DIRECT OPERATING EXPENSES 81,563
Operating income exclusive of items not
comparable to the proposed future
operations of the property $150,397
<PAGE>
LAKEWOOD APARTMENTS
NOTE TO STATEMENT OF INCOME AND DIRECT OPERATING
EXPENSES EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE
PROPOSED FUTURE OPERATIONS OF THE PROPERTY
Three Months Ended March 31, 1996
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Lakewood Apartments is a 160 unit residential apartment complex located on
26.67 acres in Concord, North Carolina. Living space totals 154,000 square
feet.
The assets comprising the property were owned by Lakewood, Ltd. through
April 1996. Cornerstone Realty Income Trust, Inc. purchased the property
in May 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and
Exchange Commission, the statement of income and direct operating
expenses excludes interest and non-rent-related income and expenses not
considered comparable to those resulting from the proposed future
operations of the property. Excluded expenses are mortgage interest and
related financial expenses, mortgage insurance premiums, property depreciation,
legal fees, accounting fees, management fees, bookkeeping fees and amortization
of deferred loan costs and construction period interest.
<PAGE>
ITEM 7.f.
<PAGE>
[LOGO]
DIXON, ODOM & CO., L.L.P.
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statement of income and direct operating
expenses exclusive of items not comparable to the proposed future
operations of the property Willow Creek Apartments located in Durham,
North Carolina for the year ended December 31, 1995. This statement is the
responsibility of the management of Willow Creek Apartments. Our
responsibility is to express an opinion on this 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 statement is free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the statement. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
presentation of the statement. We believe that our audit provides a
reasonable basis for our opinion.
The accompanying statement was prepared for the purpose of complying with
the rules and regulations of the Securities and Exchange Commission (for
inclusion in a filing by Cornerstone Realty Income Trust, Inc.) and
excludes material expenses, described in Note 1 to the statement, that
would not be comparable to those resulting from the proposed future
operations of the property.
In our opinion, the statement referred to above presents fairly, in all
material respects, the income and direct operating expenses of Willow
Creek Apartments (as defined above) for the year ended December 31, 1995,
in conformity with generally accepted accounting principles.
/s/ DIXON, ODOM & CO., L.L.P.
High Point, North Carolina
June 20, 1996
A Member of 1829 Eastchester Drive
Moores P.O. Box 2646
Rowland High Point, NC 27261-2646
International 910-889-5156, Fax 910-889-6168
A Worldwide Association
of Independent Accounting Firms
<PAGE>
WILLOW CREEK APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED
FUTURE OPERATIONS OF THE PROPERTY
Year Ended December 31, 1995
INCOME
Rental and other income $ 1,254,741
DIRECT OPERATING EXPENSES
Administrative and other 120,487
Insurance 16,339
Repairs and maintenance 206,755
Taxes, property 99,520
Utilities 91,419
TOTAL DIRECT OPERATING EXPENSES 534,520
Operating income exclusive of items not comparable
to the proposed future operations of the properly $ 720,221
See accompanying note.
<PAGE>
WILLOW CREEK APARTMENTS
NOTE TO STATEMENT OF INCOME AND DIRECT OPERATING
EXPENSES EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE
PROPOSED FUTURE OPERATIONS OF THE PROPERTY
Year Ended December 31, 1995
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Willow Creek Apartments is a 200 unit residential apartment complex located on
20.91 acres in Concord, North Carolina. Living space totals 192,000 square feet.
The assets comprising the property were owned by Willow Creek Apartments, Ltd.
throughout 1995. Cornerstone Realty Income Trust, Inc. purchased the property in
May 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non-rent-related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are mortgage interest, mortgage insurance premiums, property
depreciation, legal fees, accounting fees, management fees, bookkeeping fees and
amortization of deferred loan costs and construction period interest.
<PAGE>
WILLOW CREEK APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED
FUTURE OPERATIONS OF THE PROPERTY
Three Months Ended March 31, 1996
INCOME
Rental and other income $304,892
DIRECT OPERATING EXPENSES
Administrative and other 25,096
Insurance 3,300
Repairs and maintenance 45,854
Taxes, property 24,019
Utilities 21,930
TOTAL DIRECT OPERATING EXPENSES 120,199
Operating income exclusive of items not
comparable to the proposed future operations
of the property $184,693
<PAGE>
WILLOW CREEK APARTMENTS
NOTE TO STATEMENT OF INCOME AND DIRECT OPERATING
EXPENSES EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE
PROPOSED FUTURE OPERATIONS OF THE PROPERTY
Three Months Ended March 31, 1996
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
Willow Creek Apartments is a 200 unit residential apartment complex located
on 20.91 acres in Durham, North Carolina. Living space totals 192,200
square feet.
The assets comprising the property were owned by Willow Creek Apartments, Ltd.
through March 31, 1996. Cornerstone Realty Income Trust, Inc. purchased
the property in April 1996.
In accordance with Rule 3-14 of Regulation S-X of the Securities and
Exchange Commission, the statement of income and direct operating expenses
excludes interest and non-rent-related income and expenses not considered
comparable to those resulting from the proposed future operations of the
property. Excluded expenses are mortgage interest, mortgage insurance premiums,
property depreciation, legal fees, accounting fees, management fees,
bookkeeping fees and amortization of deferred loan costs and construction
period interest.
<PAGE>
ITEM 7.g.
<PAGE>
Pro Forma Statement of Operations for the quarter ended March 31, 1996
(unaudited)
The accompanying unaudited Pro Forma Statement of Operations for the quarter
ended March 31, 1996 is presented as if (a) the Company had owned the acquired
properties shown below on January 1, 1996, (b) the Company had qualified as a
REIT, distributed all of its taxable income and, therefore, incurred no federal
income tax expense during the year, and (c) the Company had used proceeds from
its offering to acquire the properties. The unadjusted Pro Forma Statement of
Operations does not purport to represent what the Company's results of
operations would actually have been if such transactions, in fact, had occurred
on January 1, 1996, nor does it purport to represent the results of operations
for future periods.
<TABLE>
<CAPTION>
Historical Meadows West Eagle Ashley Park Arbor Trace Longmeadow
Statement of Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Operations Adjustments Adjustments Adjustments Adjustments Adjustments
-------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions - 1/31/96 3/1/96 3/1/96 3/1/96 4/1/96
Revenues from rental properties $6,552,688 $90,006 $127,302 $284,403 $138,795 186,114
Rental expenses:
Utilities 610,146 7,903 7,327 16,769 14,849 9,440
Repairs and maintenance 720,876 14,553 22,819 39,027 19,702 25,542
Taxes and insurance 580,250 5,273 9,776 27,496 10,819 14,262
Property management 349,665 - - - - -
Advertising 144,819 1,484 3,066 3,213 3,215 5,455
General and administrative 217,912 - - - - -
Amortization 7,641 - - - - -
Depreciation of rental property 1,238,249 - - - - -
Other 540,701 4,452 9,198 18,542 9,645 16,367
------------------------------------------------------------------------------------------
4,410,259 33,665 52,186 105,047 58,230 71,066
Income before interest income (expense) 2,142,429 56,341 75,116 179,356 80,565 115,048
Interest income 76,338 - - - - -
Interest expense (46,880) - - - - -
------------------------------------------------------------------------------------------
Net Income $2,171,887 $56,341 $75,116 $179,356 $80,565 $115,048
Net income per share $0.16
Wgt. avg. number of shares outstanding 13,944,419
==========
</TABLE>
<TABLE>
<CAPTION>
Trophy Chase Beacon Hill Summerwalk Willow Creek Meadowcreek 1996
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Total
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Pro Forma
------------------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions 4/1/96 5/1/96 5/1/96 5/1/96 5/31/96 - -
Revenues from rental properties 217,183 513,466 222,836 313,685 402,626 - 9,049,104
Rental expenses:
Utilities 21,899 36,280 17,278 22,855 19,398 - 784,144
Repairs and maintenance 39,180 51,130 44,980 51,689 54,050 - 1,083,548
Taxes and insurance 13,830 43,832 11,747 28,965 30,559 - 776,809
Property management - - - - - 137,667 487,332
Advertising 5,819 9,731 5,669 7,530 7,318 - 197,319
General and administrative - - - - - 39,659 257,571
Amortization - - - - - - 7,641
Depreciation of rental
property - - - - - 460,623 1,698,872
Other 17,458 29,192 17,007 22,592 21,956 - 707,110
-------------------------------------------------------------------------------------------------
98,186 170,165 96,681 133,631 133,281 637,949 6,000,346
Income before interest income
(expense) 118,997 343,301 126,155 180,054 269,345 (637,949) 3,048,758
Interest income - - - - - - 76,338
Interest expense - - - - - - (46,880)
-------------------------------------------------------------------------------------------
Net Income $118,997 $343,301 $126,155 $180,054 $269,345 ($637,949) $3,078,216
Net income per share $0.15
-----
Wgt. avg. number of shares outstanding 20,425,576
==========
</TABLE>
The pro forma adjustments give effect to the actual rental income and expenses
for the properties for the period in 1996 prior to their acquisition by the
Company. Notes to the Pro Forma Statement of Operations are as follows: (1)
property management expense has been adjusted based on the Company's contractual
arrangement, and (2) depreciation has been adjusted based on the Company's
depreciable basis of the acquired properties of $63,426,716, a 27.5 year life
and the respective periods prior to their acquisition. The pro forma rental
income and expenses of each property are based on the annual financial results
of each respective property as obtained in an audit by an independent auditor.
Management believes these results are representative of the actual results of
operations for the periods in which the Company did not own the properties. The
Company financed part of the purchase price of certain acquisitions with short
term borrowings, which were subsequently retired with proceeds of the Company's
on-going best efforts offering within approximately 60 days of acquisition. The
pro forma weighted average number of shares includes the number of shares
necessary to provide proceeds adequate to finance the purchase price.
Pro Forma Balance Sheet as of March 31, 1996 (unaudited)
The accompanying unaudited Pro Forma Balance Sheet as of March 31, 1996 is
presented as if the Company had owned the following properties held on December
31, 1995. The unaudited Pro Forma Balance Sheet does not purport to represent
what the Company's financial position would actually have been if the
transactions, in fact, had occurred on December 31, 1995. The Pro Forma column
assumes the Company used the proceeds from its offerings to acquire the
properties.
<TABLE>
<CAPTION>
As of March 31, 1996
---------------------------------------------------------------------------
Historical Longmeadows Trophy Chase Beacon Hill Summerwalk
Balance Pro Forma Pro Forma Pro Forma Pro Forma
Sheet Adjustments Adjustments Adjustments Adjustments
---------------------------------------------------------------------------
<S> <C>
ASSETS
Investment in Rental Property
Land $23,094,078 $603,000 $853,300 $2,949,584 $1,528,200
Building 134,233,341 4,422,000 2,856,700 10,457,616 4,131,800
Furniture 2,543,688 - - - -
---------------------------------------------------------------------------
159,871,107 5,025,000 3,710,000 13,407,200 5,660,000
Less accumulated depreciation (5,490,668) - - - -
---------------------------------------------------------------------------
154,380,439 5,025,000 3,710,000 13,407,200 5,660,000
Cash and cash equivalents 8,694,171 - - - -
Prepaid expenses 382,221 - - - -
Other assets 620,995 - - - -
---------------------------------------------------------------------------
9,697,387 0 0 0 0
---------------------------------------------------------------------------
$164,077,826 $5,025,000 $3,710,000 $13,407,200 $5,660,000
===========================================================================
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Notes payable $12,205,000 - - - -
Accounts payable 403,072 - - - -
Accrued expenses 1,063,026 - - - -
Rents received in advance 98,659 - - - -
Tenant security deposits 856,794 - - - -
----------------------------------------------------------------------------
14,626,551 - - - -
Shareholders' equity
Common stock 151,615,748 $5,025,000 $3,710,000 $13,407,200 5,660,000
Deferred compensation (67,833) - - - -
Distributions in excess of net income (2,096,640) - - - -
---------------------------------------------------------------------------
149,451,275 5,025,000 3,710,000 13,407,200 5,660,000
---------------------------------------------------------------------------
$164,077,826 $5,025,000 $3,710,000 $13,407,200 $5,660,000
===========================================================================
</TABLE>
<TABLE>
<CAPTION>
As of March 31, 1996
-----------------------------------------------
Willow Creek Meadowcreek
Pro Forma Pro Forma Total
Adjustments Adjustments Pro Forma
-----------------------------------------------
<S> <C>
ASSETS
Investment in Rental Property
Land $1,001,400 $1,110,000 $31,139,562
Building 7,343,600 9,990,000 173,435,057
Furniture - - 2,543,688
-----------------------------------------------
8,345,000 11,100,000 207,118,307
Less accumulated depreciation - - (5,490,668)
-----------------------------------------------
8,345,000 11,100,000 201,627,639
Cash and cash equivalents - - 8,694,171
Prepaid expenses - - 382,221
Other assets - - 620,995
-----------------------------------------------
0 0 9,697,387
-----------------------------------------------
$8,345,000 $11,100,000 $211,325,026
===============================================
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Notes payable - - $12,205,000
Accounts payable - - 403,072
Accrued expenses - - 1,063,026
Rents received in advance - - 98,659
Tenant security deposits - - 856,794
----------------------------------------------- -
- - 14,626,551
Shareholders' equity
Common stock 8,345,000 11,100,000 198,862,948
Deferred compensation - - (67,833)
Distributions in excess of net income - - (2,096,640)
-----------------------------------------------
8,345,000 11,100,000 196,698,475
-----------------------------------------------
$8,345,000 $11,100,000 $211,325,026
===============================================
</TABLE>
Pro Forma Statement of Operations for the year ended December 31, 1995
(unaudited)
The accompanying unaudited Pro Forma Statement of Operations for the year ended
December 31, 1995 is presented as if (a) the Company had owned the acquired
properties shown below on January 1, 1995, (b) the Company had qualified as a
REIT, distributed all of its taxable income and, therefore, incurred no federal
income tax expense during the year, and (c) the Company had used proceeds from
its offering to acquire the properties. The unadjusted Pro Forma Statement of
Operations does not purport to represent what the Company's results of
operations would actually have been if such transactions, in fact, had occurred
on January 1, 1995, nor does it purport to represent the results of operations
for future periods.
<TABLE>
<CAPTION>
Historical 1995 Meadows West Eagle Ashley Park Arbor Trace
Statement of 1995 Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Operations Acquisitions Adjustments Adjustments Adjustments Adjustments Adjustments
------------------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions - - - 1/31/96 3/1/96 3/1/96 3/1/96
Revenues from rental properties $16,300,821 $7,778,024 - $1,080,070 $763,810 $1,706,415 $832,771
Rental expenses:
Utilities 1,676,938 577,495 - 94,834 43,960 100,612 89,092
Repairs and maintenance 2,042,819 1,442,619 - 174,632 136,915 234,163 118,212
Taxes and insurance 1,342,427 677,381 - 63,281 58,657 164,974 64,914
Property management 896,521 - $451,856 - - - -
Advertising 378,089 180,896 - 17,808 18,397 19,275 19,290
General and administrative 609,969 - 112,858 - - - -
Amortization 30,564 - - - - - -
Depreciation of rental
property 2,788,818 - 1,316,783 - - - -
Other 1,283,396 542,686 - 53,425 55,189 111,254 57,869
--------------------------------------------------------------------------------------------------
11,049,541 3,421,077 1,881,497 403,980 313,118 630,278 349,377
Income before interest income
(expense) 5,251,280 4,356,947 (1,881,497) 676,090 450,692 1,076,137 483,394
Interest income 226,555 - - - - - -
Interest expense (248,120) - - - - - -
--------------------------------------------------------------------------------------------------
Net Income $5,229,715 $4,356,947 ($1,881,497) $676,090 $450,692 $1,076,137 $483,394
Net income per share $0.64
Wgt. avg. number of shares
outstanding 8,176,803
=========
</TABLE>
<TABLE>
<CAPTION>
Longmeadow Trophy Chase Beacon Hill Summerwalk Willow Creek Meadowcreek 1996
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Total
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Pro Forma
----------------------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions 4/1/96 4/1/96 5/1/96 5/1/96 5/1/96 5/31/96 - -
Revenues from rental
properties 744,456 868,732 2,053,866 891,345 1,254,741 1,610,504 - $35,885,555
Rental expenses:
Utilities 37,759 87,594 145,120 69,113 91,419 77,592 - 3,091,528
Repairs and maintenance 102,168 156,719 204,519 179,920 206,755 216,198 - 5,215,639
Taxes and insurance 57,047 55,321 175,329 46,988 115,859 122,234 - 2,944,412
Property management - - - - - - $651,086 1,999,463
Advertising 21,822 23,277 38,923 22,676 30,122 29,275 - 799,850
General and
administrative - - - - - - 186,632 909,459
Amortization - - - - - - - 30,564
Depreciation of rental
property - - - - - - 2,306,461 6,412,062
Other 65,465 69,831 116,767 68,029 90,365 87,824 - 2,602,100
---------------------------------------------------------------------------------------------------
284,261 392,742 680,658 386,726 534,520 533,123 3,144,179 24,005,077
Income before interest income
(expense) 460,195 475,990 1,373,208 504,619 720,221 1,077,381 (3,144,179) 11,880,478
Interest income - - - - - - - 226,555
Interest expense - - - - - - - (248,120)
---------------------------------------------------------------------------------------------------
Net Income $460,195 $475,990 $1,373,208 $504,619 $720,221 $1,077,381 ($3,144,178) $11,858,913
Net income per share $0.58
-----
Wgt. avg. number of shares outstanding 20,293,453
==========
</TABLE>
The pro forma adjustments give effect to the actual rental income and expenses
for the properties for the period in 1996 prior to their acquisition by the
Company. Notes to the Pro Forma Statement of Operations are as follows: (1)
property management expense has been adjusted based on the Company's contractual
arrangement, and (2) depreciation has been adjusted based on the Company's
depreciable basis of the acquired properties of $120,988,061, a 27.5 year life
and the respective periods prior to their acquisition. The pro forma rental
income and expenses of each property are based on the annual financial results
of each respective property as obtained in an audit by an independent auditor.
Management believes these results are representative of the actual results of
operations for the periods in which the Company did not own the properties. The
Company financed part of the purchase price of certain acquisitions with short
term borrowings, which were subsequently retired with proceeds of the Company's
on-going best efforts offering within approximately 60 days of acquisition. The
pro forma weighted average number of shares includes the number of shares
necessary to provide proceeds adequate to finance the purchase price. (3) See
for detail of 1995 acquistions.
Pro Forma Statement of Operations for the year ended December 31, 1995
(unaudited)
The following schedule provides detail of 1995 acquisitions by property included
in the Pro Forma Statement of Operations for the year ended December 31, 1995.
<TABLE>
<CAPTION>
Sterling Pointe Breckinridge Magnolia Bay Watch Hanover
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- -----------
Date of Acquisition 4/1/95 6/21/95 6/1/95 7/18/95 8/22/95
<S> <C>
Property operations
Revenues from rental properties $374,940 $487,168 $429,620 $563,622 $636,160
Rental expenses:
Utilities 17,682 35,962 30,289 83,187 44,983
Repairs and maintenance 56,047 112,044 97,415 99,880 118,199
Taxes and insurance 38,868 45,426 46,920 32,555 47,354
Property management - - - - -
Advertising 11,857 13,508 8,733 18,415 14,269
General and administrative - - - - -
Amortization - - - - -
Depreciation of rental property - - - - -
Other 35,570 40,526 26,198 55,244 42,808
------ ------ ------ ------ ------
160,024 247,466 209,555 289,281 267,613
------- ------- ------- ------- -------
Income before interest income (expense) 214,916 239,702 220,065 274,341 368,547
Interest income - - - - -
Interest expense - - - - -
----------- ----------- ----------- ----------- -----------
Net Income $214,916 $239,702 $220,065 $274,341 $368,547
======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Mill Creek Glen Eagles Sailboat Tradewinds Osprey 1995
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Acquisition
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- ----------- -----------
Date of Acquisition 9/22/95 10/26/95 11/1/95 11/9/95 11/16/95
<S> <C>
Property operations
Revenues from rental properties $906,560 $804,873 $1,486,737 $1,350,803 $737,541 $7,778,024
Rental expenses: -
Utilities 34,986 31,564 116,080 102,607 80,155 577,495
Repairs and maintenance 131,318 137,482 322,516 189,926 177,792 1,442,619
Taxes and insurance 92,438 75,170 119,629 119,817 59,204 677,381
Property management - - - - - -
Advertising 18,112 16,163 36,868 32,962 10,009 180,896
General and administrative - - - - - -
Amortization - - - - - -
Depreciation of rental property - - - - - -
Other 54,335 48,490 110,604 98,888 30,023 542,686
------ ------ ------- ------ ------ -------
331,189 308,869 705,697 544,200 357,183 3,421,077
------- ------- ------- ------- ------- ---------
Income before interest income (expense) 575,371 496,004 781,040 806,603 380,358 4,356,947
Interest income - - - - - -
Interest expense - - - - - -
----------- ----------- ----------- ----------- ----------- ----------
Net Income $575,371 $496,004 $781,040 $806,603 $380,358 $4,356,947
======== ======== ======== ======== ======== ==========
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report on Form 8-K/A to be signed on its behalf
by the undersigned hereunto duly authorized.
Cornerstone Realty Income Trust, Inc.
Date: August 13, 1996 By: /s/ Stanley J. Olander, Jr.
___________________________________
Stanley J. Olander, Jr.
Vice President of Cornerstone Realty
Income Trust, Inc.
<PAGE>
EXHIBIT INDEX
Cornerstone Realty Income Trust
Form 8-K/A for Form 8-K dated April 30, 1996
Exhibit Number Exhibit Page Number
23.1 Consent of Independent Auditors
23.2 Consent of Independent Auditors
23.3 Consent of Independent Auditors
23.4 Consent of Independent Auditors
23.5 Consent of Independent Auditors
23.6 Consent of Independent Auditors
EXHIBIT 23.1
[LOGO]
DIXON, ODOM & CO., L.L.P.
Certified Public Accountants
CONSENT OF INDEPENDENT AUDITORS
To the Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated May 21, 1996 with respect to the
statement of income and direct operating expenses exclusive of items not
comparable to the proposed future operations of the property Longmeadow
Apartments for the year ended December 31, 1995, for inclusion in a form 8K
filing with the Securities and Exchange Commission by Cornerstone Realty
Income Trust, Inc., and to the reference to our firm under the heading
"Expert" therein.
/s/ DIXON, ODOM & CO., L.L.P.
High Point, North Carolina
May 21, 1996
A Member of 1829 Eastchester Drive
Moores P.O. Box 2646
Rowland High Point, NC 27261-2646
International 910-889-5156, Fax 910-889-6168
A Worldwide Association
of Independent Accounting Firms
EXHIBIT 23.2
[L.P. Martin & Company Letterhead]
Consent of Independent Auditors'
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated July 18, 1996 with respect to the
statements of income and direct operating expenses exclusive of items not
comparable to the proposed future operations of the property Westfield Club
Apartments for the twelve month periods ended December 31, 1995, 1994 and 1993
for inclusion in a form 8K filing with the Securities and Exchange Commission by
Cornerstone Realty Income Trust, Inc., and to the reference to our firm under
the heading "Expert" therein.
/s/ L.P. Martin & Company
Richmond, Virginia
July 18, 1996
EXHIBIT 23.3
[L.P. Martin & Company Letterhead]
Consent of Independent Auditors'
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated July 19, 1996 with respect to the
statement of income and direct operating expenses exclusive of items not
comparable to the proposed future operations of the property Beacon Hill
Apartments for the twelve month period ended April 30, 1996, for inclusion in a
form 8K filing with the Securities and Exchange Commission by Cornerstone Realty
Income Trust, Inc., and to the reference to our firm under the heading "Expert"
therein.
/s/ L.P. Martin & Company
Richmond, Virginia
July 19, 1996
EXHIBIT 23.4
Consent of Independent Auditors'
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated August 9, 1996 with respect to the
statement of income and direct operating expenses exclusive of items not
comparable to the proposed future operations of the property Meadow Creek
Apartments for the twelve month period ended April 30, 1996, for inclusion in a
form 8K filing with the Securities and Exchange Commission by Cornerstone Realty
Income Trust, Inc., and to the reference to our firm under the heading "Expert"
therein.
Richmond, Virginia
August 9, 1996
EXHIBIT 23.5
[LOGO]
DIXON, ODOM & CO., L.L.P.
CERTIFIED PUBLIC ACCOUNTANTS
CONSENT OF INDEPENDENT AUDITORS
To the Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated June 20, 1996 with respect to
the statement of income and direct operating expenses of items not
comparable to the proposed future operations of the property Lakewood
Apartments for the year ended December 31, 1995, for inclusion in a
form 8k filing with the Securities and Exchange Commission by
Cornerstone Realty Income Trust, Inc., and to the reference to our
firm under the heading "Expert" therein.
/s/ DIXON, ODOM & CO., L.L.P.
High Point, North Carolina
June 20, 1996
A Member of 1829 Eastchester Drive
Moores P.O. Box 2646
Rowland High Point, NC 27261-2646
International 910-889-5156, Fax 910-889-6168
A Worldwide Association
of Independent Accounting Firms
EXHIBIT 23.6
[LOGO]
DIXON, ODOM & CO., L.L.P.
Certified Public Accountants
CONSENT OF INDEPENDENT AUDITORS
To the Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated June 20, 1996 with respect to the
statement of income and direct operating expenses exclusive of items not
comparable to the proposed future operations of the property Willow Creek
Apartments for the year ended December 31, 1995, for inclusion in a form 8K
flling with the Securities and Exchange Commission by Comerstone Realty Income
Trust, Inc., and to the reference to our firm under the heading "Expert"
herein.
/s/ DIXON, ODOM & CO., L.L.P.
High Point, North Carolina
June 20, 1996
A Member of 1829 Eastchester Drive
Moores P.O. Box 2646
Rowland High Point, NC 27261-2646
INTERNATIONAL 910-889-5156, Fax 910-889-6168
A Worldwide Association
of Independent Accounting Firms
