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: September 26, 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 7. Financial Statements, Pro Forma Financial
Information and Exhibits
a. Independent Auditors' Report
(Sterling Chase Apartments)
Historical Statement of Income and
Direct Operating Expenses
(Sterling Chase Apartments)
Note to Historical Statement of
Income and Direct Operating
Expenses (Sterling Chase Apartments)
b. Independent Auditors' Report
(Parkside at Woodlake Apartments)
Historical Statement of Income and
Direct Operating Expenses
(Parkside at Woodlake Apartments)
Note to Historical Statement of
Income and Direct Operating
Expenses (Parkside at Woodlake Apartments)
c. Pro Forma Statement of Operations for
the Nine Months ended September 30, 1996
(unaudited)
Pro Forma Statement of Operations
for the Year ended December 31, 1995
(unaudited)
d. Exhibits
23.1 Consent of Independent Auditors
23.2 Consent of Independent Auditors
-2-
<PAGE>
The Company hereby amends and restates Item 7.a., 7.b. and
7.c. of its Current Report on Form 8-K dated September 26, 1996
as follows:
-4-
<PAGE>
ITEM 7.a.
-5-
<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 Sterling Chase Apartments located in Charlotte, North Carolina for
the twelve month period ended August 31, 1996. This statement is the
responsibility of the management of Sterling Chase 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 Sterling Chase Apartments
(as defined above) for the twelve month period ended August 31, 1996, in
conformity with generally accepted accounting principles.
/s/ L.P. Martin & Co., P.C.
Richmond, Virginia
October 24, 1996
<PAGE>
STERLING CHASE APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED AUGUST 31, 1996
INCOME
- ------
Rental and Other Income $1,615,746
---------
DIRECT OPERATING EXPENSES
- -------------------------
Administrative and Other 131,259
Insurance 13,556
Repairs and Maintenance 233,123
Taxes, Property 108,250
Utilities 68,086
---------
TOTAL DIRECT OPERATING EXPENSES 554,274
---------
Operating income exclusive of items not
comparable to the proposed future operations
of the property $1,061,472
=========
See accompanying note to the financial statement.
<PAGE>
STERLING CHASE 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 AUGUST 31, 1996
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
- -----------------------------------------------
Sterling Chase Apartments is a 272 unit residential garden style apartment
complex located on 25.85 acres in Charlotte, North Carolina. Living space totals
190,256 square feet.
During the financial statement period, the assets comprising the property were
owned by Sterling Apartments, LLC. Cornerstone Realty Income Trust, Inc.
purchased the property in September 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, amortization and
management fees.
<PAGE>
ITEM 7.b.
-8-
<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 Parkside at Woodlake Apartments located in Durham, North Carolina
for the twelve month period ended September 30, 1996. This statement is the
responsibility of the management of Parkside at Woodlake 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 Parkside at Woodlake
Apartments (as defined above) for the twelve month period ended September 30,
1996, in conformity with generally accepted accounting principles.
/s/L.P. Martin & Co., P.C.
Richmond, Virginia
December 10, 1996
<PAGE>
PARKSIDE AT WOODLAKE APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED SEPTEMBER 30, 1996
INCOME
- ------
Rental and Other Income $ 653,152
---------
DIRECT OPERATING EXPENSES
- -------------------------
Administrative and Other 258,746
Insurance 23,053
Repairs and Maintenance 94,280
Taxes, Property 43,820
Utilities 34,669
---------
TOTAL DIRECT OPERATING EXPENSES 454,568
---------
Operating income exclusive of items not
comparable to the proposed future operations
of the property $ 198,584
=========
See accompanying notes to the financial statement.
<PAGE>
PARKSIDE AT WOODLAKE 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 SEPTEMBER 30, 1996
NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION
- -----------------------------------------------
Parkside At Woodlake Apartments is a 266 unit residential garden style apartment
complex located on 22.75 acres in Durham, North Carolina. Living space totals
230,172 square feet.
During the financial statement period, the assets comprising the property were
owned by an entity nonaffiliated with Cornerstone Realty Income Trust, Inc.
Cornerstone Realty Income Trust, Inc. purchased the property effective September
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.c.
-12-
<PAGE>
Pro Forma Statement of Operations for the nine months ended September 30, 1996
(unaudited)
The accompanying unaudited Pro Forma Statement of Operations for the nine months
ended September 30, 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 Adjustment Adjustments Adjustment 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 $26,714,877 $90,006 $127,302 $284,403 $138,795 186,114
Rental expenses:
Utilities 2,429,910 7,903 7,327 16,769 14,849 9,440
Repairs and maintenance 3,119,215 14,553 22,819 39,027 19,702 25,542
Taxes and insurance 2,351,444 5,273 9,776 27,496 10,819 14,262
Property management 1,226,873 - - - - -
Advertising 766,021 1,484 3,066 3,213 3,215 5,455
General and administrative 825,992 - - - - -
Amortization 22,923 - - - - -
Depreciation of rental property 5,155,108 - - - - -
Other 2,272,863 4,452 9,198 18,542 9,645 16,367
-----------------------------------------------------------------------------------
18,170,349 33,665 52,186 105,047 58,230 71,066
Income before interest income (expense) 8,544,528 56,341 75,116 179,356 80,565 115,048
Interest income 237,651 - - - - -
Interest expense (554,648) - - - - -
-----------------------------------------------------------------------------------
Net Income $8,227,531 $56,341 $75,116 $179,356 $80,565 $115,048
Net income per share $0.46
-----
Wgt. avg. number of shares outstanding 17,696,096
----------
</TABLE>
<TABLE>
<CAPTION>
Trophy Chase Beacon Hill Summerwalk Willow Creek Meadowcreek Lexington
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustment Adjustments Adjustments
---------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions 4/1/96 5/1/96 5/1/96 5/1/96 5/31/96 6/26/96
Revenues from rental properties 217,183 684,622 297,115 418,247 671,043 345,237
Rental expenses:
Utilities 21,899 48,373 23,038 30,473 32,330 62,247
Repairs and maintenance 39,180 68,173 59,973 68,918 90,083 97,819
Taxes and insurance 13,830 58,443 15,663 38,620 50,931 41,086
Property management - - - - - -
Advertising 5,819 12,974 7,559 10,041 12,198 10,293
General and administrative - - - - - -
Amortization - - - - - -
Depreciation of rental property - - - - - -
Other 17,458 38,922 22,676 30,122 36,593 30,878
---------------------------------------------------------------------------------------
98,186 226,885 128,909 178,174 222,135 242,323
Income before interest income (expense) 118,997 457,737 168,206 240,073 448,908 102,914
Interest income - - - - - -
Interest expense - - - - - -
---------------------------------------------------------------------------------------
Net Income $118,997 $457,737 $168,206 $240,073 $448,908 $102,914
Net income per share
Wgt. avg. number of shares outstanding
</TABLE>
<TABLE>
<CAPTION>
Oak Park Paces Glen Doctors Park Hampton Glen Sterling Chase
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustment Adjustments Adjuents Adjustments
--------------------------------------------------------------------------
<S> <C>
Date of Acquisitions 7/1/96 7/19/96 8/1/96 8/1/96 9/1/96
Revenues from rental properties 1,038,285 628,639 509,713 970,246 1,077,164
Rental expenses:
Utilities 102,411 39,060 25,951 56,883 45,391
Repairs and maintenance 221,613 92,090 122,995 130,430 155,415
Taxes and insurance 49,192 46,834 47,162 62,436 81,204
Property management - - - - -
Advertising 23,992 14,827 9,500 24,998 21,877
General and administrative - - - - -
Amortization - - - - -
Depreciation of rental property - - - - -
Other 71,976 44,481 28,499 74,993 65,629
--------------------------------------------------------------------------
469,184 237,292 234,107 349,740 369,516
Income before interest income (expense) 569,101 391,347 275,606 620,506 707,648
Interest income - - - - -
Interest expense - - - - -
--------------------------------------------------------------------------
Net Income $569,101 $391,347 $275,606 $620,506 $707,648
Net income per share
Wgt. avg. number of shares outstanding
</TABLE>
<TABLE>
<CAPTION>
Parkside 1996
Pro Forma Pro Forma Total
Adjustments Adjustments Pro Forma
-----------------------------------------
<S> <C>
Date of Acquisitions 9/30/96 - -
Revenues from rental properties 653,152 - 35,052,143
Rental expenses:
Utilities 34,669 - 3,008,923
Repairs and maintenance 94,280 - 4,481,827
Taxes and insurance 66,873 - 2,991,344
Property management - 462,536 1,689,409
Advertising 64,687 - 1,001,219
General and administrative - 97,860 923,852
Amortization - - 22,923
Depreciation of rental property - 1,615,228 6,770,336
Other 194,059 - 2,987,353
-----------------------------------------
454,568 2,175,624 23,877,186
Income before interest income (expense) 198,584 (2,175,624) 11,174,957
Interest income - - 237,651
Interest expense - (1,001,821) (1,556,469)
-----------------------------------------
Net Income $198,584 (3,177,445) 9,856,139
Net income per share .47
---
Wgt. avg. number of shares outstanding 20,766,771
----------
</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 $116 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. Since Parkside apartments
was under construction in 1995 and 1996 and full operations did not commence
until the second quarter of 1996, the pro forma adjustments reflect this time
period. 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 pro forma weighted average number of shares includes the
number of shares necessary of provide proceeds adequate to finance the purchase
price of most properties. The Company financed the purchase price of Sterling
Chase and Parkside apartments with proceeds from the line of credit. Interest
expense associated with the line of credit financing was calculated with the
interest rate available at the time of acquisition and based on the number on
months the property had been in operation in the year of acquisition. The
Company executed a $5,500,000 unsecured note in conjunction with the purchase of
Lexington Towers. The payment terms were more favorable than the line of
credit. The principal balance is due on January 1, 1999 and is prepayable at
any time.
<PAGE>
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
Statement of 1995 Pro Forma Pro Forma Pro Forma Pro Forma
Operations Acquisitions Adjustments Adjustments Adjustments Adjustments
<S> <C>
Date of Acquisitions - - - 1/31/96 3/1/96 3/1/96
Revenues from rental properties $16,300,821 $7,778,024 - $1,080,070 $763,810 $1,706,415
Rental expenses:
Utilities 1,676,938 577,495 - 94,834 43,960 100,612
Repairs and maintenance 2,042,819 1,442,619 - 174,632 136,915 234,163
Taxes and insurance 1,342,427 677,381 - 63,281 58,657 164,974
Property management 896,521 - $451,856 - - -
Advertising 378,089 180,896 - 17,808 18,397 19,275
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
-----------------------------------------------------------------------------
11,049,541 3,421,077 1,881,497 403,980 313,118 630,278
Income before interest income (expense) 5,251,280 4,356,947 ( 1,881,497) 676,090 450,692 1,076,137
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
Net income per share $0.64
------------
Wgt. avg. number of shares outstanding 8,176,803
------------
</TABLE>
<TABLE>
<CAPTION>
Arbor Trace Longmeadow Trophy Chase Beacon Hill Summerwalk Willow Creek
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustment Adjustments Adjustments
<S> <C>
Date of Acquisitions 3/1/96 4/1/96 4/1/96 5/1/96 5/1/96 5/1/96
Revenues from rental properties $832,771 744,456 868,732 2,053,866 891,345 1,254,741
Rental expenses:
Utilities 89,092 37,759 87,594 145,120 69,113 91,419
Repairs and maintenance 118,212 102,168 156,719 204,519 179,920 206,755
Taxes and insurance 64,914 57,047 55,321 175,329 46,988 115,859
Property management - - - - - -
Advertising 19,290 21,822 23,277 38,923 22,676 30,122
General and administrative - - - - - -
Amortization - - - - - -
Depreciation of rental property - - - - - -
Other 57,869 65,465 69,831 116,767 68,029 90,365
---------------------------------------------------------------------------------------
349,377 284,261 392,742 680,658 386,726 534,520
Income before interest income (expense) 483,394 460,195 475,990 1,373,208 504,619 720,221
Interest income - - - - - -
Interest expense - - - - - -
---------------------------------------------------------------------------------------
Net Income $483,394 $460,195 $475,990 $1,373,208 $504,619 $720,221
Net income per share
Wgt. avg. number of shares outstanding
</TABLE>
<TABLE>
<CAPTION>
Meadowcreek Lexington Oak Park Paces Glen Doctors Park Hampton Glen
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustment Adjustments Adjustments Adjustments Adjustments
<S> <C>
Date of Acquisitions 5/31/96 6/26/96 7/1/96 7/19/96 8/1/96 8/1/96
Revenues from rental properties 1,610,504 690,473 2,076,569 1,160,564 873,794 1,663,279
Rental expenses:
Utilities 77,592 124,494 204,822 72,111 44,488 97,514
Repairs and maintenance 216,198 195,638 443,226 170,012 210,849 223,594
Taxes and insurance 122,234 82,172 98,383 86,463 80,849 107,033
Property management - - - - - -
Advertising 29,275 20,585 47,984 27,373 16,286 42,853
General and administrative - - - - - -
Amortization - - - - - -
Depreciation of rental property - - - - - -
Other 87,824 61,756 143,951 82,119 48,856 128,560
---------------------------------------------------------------------------------------
533,123 484,645 938,366 438,078 401,328 599,554
Income before interest income (expense) 1,077,381 205,828 1,138,203 722,486 472,466 1,063,725
Interest income - - - - - -
Interest expense - - - - - -
---------------------------------------------------------------------------------------
Net Income $1,077,381 $205,828 $1,138,203 $722,486 $472,466 $1,063,725
Net income per share
Wgt. avg. number of shares outstanding
</TABLE>
<TABLE>
<CAPTION>
Sterling Chase 1996
Pro Forma Pro Forma Total
Adjustments Adjustments Pro Forma
<S> <C>
Date of Acquisitions 9/1/96 - -
Revenues from rental properties 1,615,746 - $43,965,980
Rental expenses:
Utilities 68,086 - 3,703,043
Repairs and maintenance 233,123 - 6,692,081
Taxes and insurance 121,806 - 3,521,118
Property management - 1,100,107 2,446,484
Advertising 32,815 - 987,746
General and administrative - 273,709 996,536
Amortization - - 30,564
Depreciation of rental property - 3,826,565 7,932,166
Other 98,444 - 3,165,786
------------------------------------------
554,274 5,200,381 29,477,524
Income before interest income (expense) 1,061,472 (5,200,381) 14,488,456
Interest income - - 226,555
Interest expense - (1,076,259) (1,324,379)
------------------------------------------
Net Income $1,061,472 (6,276,640) 13,390,632
Net income per share .56
-----------
Wgt. avg. number of shares outstanding 23,924,097
-----------
</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 $162,790,940, 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.
Since Parkside apartments was under construction in 1995 and 1996 and full
operations did not commence until the second quarter of 1996, no pro forma
adjustments were made. 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 pro forma weighted average number of shares includes
the number of shares necessary of provide proceeds adequate to finance the
purchase price of most properties. The Company financed the purchase price of
Sterling Chase apartments with proceeds from the line of credit. Interest
expense associated with the line of credit financing was calculated with the
interest rate available at the time of acquisition and based on the number on
months the property had been in operation in the year of acquisition. The
Company executed a $5,500,000 unsecured note in conjunction with the purchase of
Lexington Towers. The payment terms were more favorable than the line of
credit. The principal balance is due on January 1, 1999 and is prepayable at
any time.
<PAGE>
Pro Forma Statement of Operations for the year ended December 31, 1995
(unaudited)
The following schedule provides detail of 1995 acquisitions by properly 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
--------------- ------------ ----------- ----------- -----------
<S> <C>
Date of Acquisition 4/1/95 6/21/95 6/1/95 7/18/95 8/22/95
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
--------------- ------------ ----------- ----------- ----------- ------------
<S> <C>
Date of Acquisition 9/22/95 10/26/95 11/1/95 11/9/95 11/16/95
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 39,868 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: December __, 1996 By:_______________________________
Stanley J. Olander, Jr.
Chief Financial Officer of
Cornerstone Realty Income
Trust, Inc.
-16-
<PAGE>
EXHIBIT INDEX
Cornerstone Realty Income Trust, Inc.
Form 8-K/A for Form 8-K dated September 26, 1996
Exhibit Number Exhibit Page Number
23.1 Consent of Independent Auditors
23.2 Consent of Independent Auditors
-17-
Exhibit 23.1
[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 October 24, 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 Sterling Chase
Apartments for the twelve month period ended August 31, 1996, for inclusion in a
form 8K filing with the Securities and Exchange Commission by Cornerstone Realty
Income Trust, Inc.
/s/ L.P. Martin & Co., P.C.
Richmond, Virginia
December 10, 1996
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 December 10, 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 Parkside at
Woodlake Apartments for the twelve month period ended September 30, 1996, for
inclusion in a form 8K filing with the Securities and Exchange Commission by
Cornerstone Realty Income Trust, Inc.
/s/ L.P. Martin & Co., P.C.
Richmond, Virginia
December 10, 1996
