<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended MARCH 31, 1999
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 0-24594
WEST COAST REALTY INVESTORS, INC.
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 95-4246740
--------------------------------- ---------------------
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5933 W. CENTURY BLVD., 9TH, FLOOR
LOS ANGELES, CALIFORNIA 90045
------------------------------------------
(Address of principal executive offices)
(Zip Code)
(310) 670-0800
------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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
------- -------
APPLICABLE ONLY TO CORPORATE ISSUERS:
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S
CLASSES OF COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE. 2,927,967 SHARES
OUTSTANDING AS OF MAY 14, 1999.
<PAGE> 2
PART 1. FINANCIAL INFORMATION
WEST COAST REALTY INVESTORS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
==============================================================================================
MARCH 31, 1999 December 31, 1998
(UNAUDITED) (Audited)
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Rental real estate, less accumulated
depreciation (Note 2) $ 40,322,044 $ 35,870,984
Cash and cash equivalents 4,537,430 4,594,587
Deferred rent 462,881 426,878
Loan origination fees, net of accumulated
amortization of $78,601 and $71,084 248,023 217,316
Other assets (Note 3) 138,115 145,907
- ----------------------------------------------------------------------------------------------
TOTAL ASSETS $ 45,708,493 $ 41,255,672
==============================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable $ 28,747 $ 34,542
Due to related party (Note 5(e)) 70,179 56,349
Dividends payable (Note 8) 469,242 --
Security deposits and prepaid rent 367,242 324,041
Other liabilities 143,061 119,792
Notes payable (Note 6) 20,846,593 16,686,668
- ----------------------------------------------------------------------------------------------
TOTAL LIABILITIES 21,925,064 17,221,392
COMMITMENTS AND CONTINGENCIES (NOTE 9)
STOCKHOLDERS' EQUITY
Common stock, $.01 par-shares authorized,
5,000,000 shares issued, 2,932,762 outstanding
in 1999 and 1998 29,328 29,328
Additional paid-in capital 26,568,450 26,495,731
Dividend in excess of retained earnings (2,814,349) (2,490,779)
- ----------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 23,783,429 24,034,280
- ----------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 45,708,493 $ 41,255,672
==============================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 3
WEST COAST REALTY INVESTORS, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
DIVIDENDS IN
EXCESS OF
COMMON STOCK ADDITIONAL PAID RETAINED
SHARES AMOUNT CAPITAL EARNINGS
--------- ------- --------------- ------------
<S> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1998 2,932,762 $29,328 $26,495,731 $(2,490,779)
Equity contribution by Affiliates through
expense reimbursements (Note 5 (f)) -- -- 72,719 --
Net income -- -- -- 145,672
Dividends declared (Note 8) -- -- -- (469,242)
--------- ------- ----------- -----------
BALANCE AT MARCH 31, 1999 2,932,762 $29,328 $26,568,450 $(2,814,349)
========== ======= =========== ===========
</TABLE>
THREE MONTHS ENDED MARCH 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DIVIDENDS IN
EXCESS OF
COMMON STOCK ADDITIONAL PAID RETAINED
SHARES AMOUNT CAPITAL EARNINGS
--------- ------- --------------- ------------
<S> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1997 2,163,561 $21,635 $19,313,678 $(1,482,350)
Issuance of stock, net 188,264 1,883 1,589,906 --
Equity contribution by Affiliates through
expense reimbursements (Note 5 (f)) -- -- 42,115 --
Net income -- -- -- 258,474
Dividends declared (Note 8) -- -- -- (455,614)
--------- ------- ----------- -----------
BALANCE AT MARCH 31, 1998 2,351,825 $23,518 $20,945,699 $(1,679,490)
========== ======= =========== ===========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 4
WEST COAST REALTY INVESTORS, INC.
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
==================================================================================
THREE MONTHS Three Months
ENDED Ended
MARCH 31, 1999 March 31, 1998
(UNAUDITED) (Unaudited)
- -----------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Rental (Notes 2 and 4) $1,136,944 $794,557
Interest 17,788 31,835
- -----------------------------------------------------------------------------------
1,154,732 826,392
- -----------------------------------------------------------------------------------
Costs and expenses
Operating 53,755 28,850
Property taxes 31,001 23,776
Property management fees (Note 5 (e)) 41,930 29,094
Interest expense 342,737 233,744
General and administrative 368,216 83,186
Depreciation and amortization 171,421 169,268
- -----------------------------------------------------------------------------------
1,009,060 567,918
- -----------------------------------------------------------------------------------
Net income $ 145,672 $258,474
==================================================================================
Net income per share (Note 8) $ .05 $ .12
==================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 5
WEST COAST REALTY INVESTORS, INC.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
==================================================================================================
THREE MONTHS Three Months
ENDED Ended
MARCH 31,1999 March 31,1998
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (UNAUDITED) (Unaudited)
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 145,672 $ 258,474
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 163,904 166,088
Interest expense on amortization of loan origination fees 7,517 3,180
Increase (decrease) from changes in: (36,003) (28,676)
Deferred rent 7,792 (109,398)
Other assets (5,795) (58,959)
Accounts payable 13,830 142,873
Due to related party 43,201 (119,104)
Security deposits and prepaid rent 23,269 (44,692)
Other liabilities
- --------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 363,387 209,786
- --------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to rental real estate (4,614,964) (2,243,152)
- --------------------------------------------------------------------------------------------------
NET CASH (USED IN) INVESTING ACTIVITIES (4,614,964) (2,243,152)
- --------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net -- 2,141,854
Equity contribution by Affiliates through expense
reimbursements 72,719 42,115
Dividends declared and paid -- (455,614)
Increase in notes payable 4,250,000 --
Payments on notes payable (90,075) (63,247)
(Increase) in loan origination fees (38,224) (65,000)
- --------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,194,420 1,600,108
- --------------------------------------------------------------------------------------------------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (57,157) (433,258)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,594,587 2,099,857
- --------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,537,430 $ 1,666,599
==================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 6
WEST COAST REALTY INVESTORS, INC.
SUMMARY OF ACCOUNTING POLICIES
BUSINESS
West Coast Realty Investors, Inc. (the "Company"), is a corporation formed on
October 26, 1989 under the laws of the State of Delaware. The Company exists as
a Real Estate Investment Trust ("REIT") under Sections 856 to 860 of the
Internal Revenue Code. The Company has complied with all requirements imposed on
REIT's for the 1998, 1997 and 1996 tax years; however qualification as a REIT
for future years is dependent upon future operations of the Company. The Company
was organized to acquire interests in income-producing residential, industrial,
retail or commercial properties located primarily in California and the west
coast of the United States. The Company intends to acquire property for cash or
on a moderately leveraged basis with aggregate mortgage indebtedness not to
exceed fifty percent of the purchase price of all properties on a combined
basis, or eighty percent individually and intends to own and operate such
properties for investment purposes, over an anticipated holding period of five
to ten years.
RENTAL REAL ESTATE AND DEPRECIATION
Assets are stated at lower of cost or net realizable value. Depreciation is
computed using the straight-line method over their estimated useful lives of
31.5 to 39 years for financial and income tax reporting purposes.
In the event that facts and circumstances indicate that the cost of an asset may
be impaired, an evaluation of recoverability would be performed. If an
evaluation is required, the estimated future undiscounted cash flows associated
with the asset would be compared to the carrying amount to determine if a
write-down to market value is required.
RENTAL INCOME
Rental revenue is recognized on a straight-line basis to the extent that rental
revenue is deemed collectible. Where there is uncertainty of collecting higher
scheduled rental amounts, due to the tendency of tenants to renegotiate their
leases at lower amounts, rental income is recognized as the amounts are
collected.
ACQUISITION COSTS
The Company began expensing internal acquisition costs in accordance with
Emerging Issues Task Force 97-11, "Accounting for Internal Costs Relating to
Real Estate Property Acquisitions" which was issued in March 1998. Acquisition
costs are paid to an affiliate, West Coast Realty Advisors, "WCRA" who incurs
such internal acquisition costs. Prior to this, the Company capitalized internal
acquisition costs and included it as part of the cost of the property.
<PAGE> 7
WEST COAST REALTY INVESTORS, INC.
SUMMARY OF ACCOUNTING POLICIES
LOAN ORIGINATION FEES
Loan origination fees are capitalized and amortized over the life of the loan.
CASH AND CASH EQUIVALENTS
The Company considers cash in the bank, liquid money market funds, and all
highly liquid certificates of deposit, with original maturities of three months
of less, to be cash and cash equivalents.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NET INCOME PER SHARE
Net income per share is calculated by dividing the net income by the weighted
average number of shares outstanding for the period.
<PAGE> 8
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 1 - PRESENTATION OF INTERIM INFORMATION
In the opinion of the Advisor of West Coast Realty Investors, Inc. (the
"Company"), the accompanying unaudited financial statements include all normal
adjustments considered necessary to present fairly the financial position as of
March 31, 1999, and the results of operations and cash flows for the three
months ended March 31, 1999 and 1998. Interim results are not necessarily
indicative of results for a full year.
The financial statements and notes are presented as permitted by Form 10Q, and
do not contain certain information included in the Company's audited financial
statements and notes for the fiscal year ended December 31, 1998.
NOTE 2 - RENTAL PROPERTIES
The Company owns the following income-producing properties:
<TABLE>
<CAPTION>
Original
Acquisition
Location (Property Name) Date Purchased Cost
==============================================================================================
<S> <C> <C>
Huntington Beach, California (Blockbuster) February 26, 1991 $ 1,676,210
Fresno, California May 14, 1993 1,414,893
Huntington Beach, California (OPTO-22) September 15, 1993 2,628,985
Riverside, California November 29, 1994 3,655,500
Tustin, California (Safeguard) May 22, 1995 4,862,094
Fremont, California (Technology Drive) October 31, 1995 3,747,610
Sacramento, California (Java City) August 2, 1996 1,828,500
Irvine, California (Tycom) January 17, 1997 4,907,440
Roseville, California (Applebee's) October 31, 1997 1,976,484
Corona, California December 31, 1997 1,904,452
Sacramento, California (Horn Road) January 15, 1998 2,141,200
Chino, California April 19, 1998 1,859,338
Vacaville, California May 20, 1998 2,735,308
Cerritos, California December 23, 1998 2,314,569
Ontario, California January 12, 1999 4,614,964
</TABLE>
<PAGE> 9
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 2 - RENTAL PROPERTIES (CONTINUED)
The major categories of property are:
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
- ---------------------------------------------------------------------------------
<S> <C> <C>
Land $15,212,859 $12,576,130
Buildings and improvements 27,054,689 25,076,453
- ---------------------------------------------------------------------------------
42,267,548 37,652,583
Less accumulated depreciation 1,945,504 1,781,599
- ---------------------------------------------------------------------------------
Net rental properties $40,322,044 $35,870,984
=================================================================================
</TABLE>
A significant portion of the Company's rental revenue was earned from tenants
whose individual rents represented more than 10% of total rental revenue.
Specifically:
Three tenants accounted for 14%, 13% and 10%, respectively, for the three months
ended March 31, 1999;
Four tenants accounted for 19%, 14%, 14% and 12%, respectively, for the three
months ended March 31, 1998;
NOTE 3 - OTHER ASSETS
Other assets consists of the following:
<TABLE>
<CAPTION>
MARCH 31, 1999 DECEMBER 31, 1998
-------------- -----------------
<S> <C> <C>
Deposits and prepaid expenses $138,115 $145,907
Organization costs 14,330 14,330
-------- --------
152,445 160,237
Less accumulated amortization 14,330 14,330
-------- --------
Net other assets $138,115 $145,907
======== ========
</TABLE>
<PAGE> 10
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 4 - FUTURE MINIMUM RENTAL INCOME
As of March 31, 1999 and December 31, 1998, future minimum rental income under
the existing leases that have remaining noncancelable terms in excess of one
year are as follows:
<TABLE>
<CAPTION>
MARCH 31, 1999 DECEMBER 31,1998
-------------- ----------------
<S> <C> <C>
1999 .................................. $ 3,623,957 $ 4,331,729
2000 .................................. 5,020,425 4,359,497
2001 .................................. 4,755,052 4,080,478
2002 .................................. 4,209,103 3,625,884
2003 .................................. 3,591,498 3,007,277
Thereafter ............................ 16,287,487 14,537,356
----------- -----------
Total $37,487,522 $33,942,221
=========== ===========
</TABLE>
Future minimum rental income does not include lease renewals or new leases that
may result after a noncancelable-lease expires.
NOTE 5 - RELATED PARTY TRANSACTIONS
Sales commissions and wholesaling fees, representing 7% of the gross proceeds
from the sale of common shares, were paid to Associated Securities Corp.
("ASC"), a member of the National Association of Securities Dealers, Inc.
("NASD") and an affiliate of the Advisor.
The Advisor has an agreement with the Company to provide advice on investments
and to administer the day-to-day operations of the Company. At March 31, 1999,
the Advisor owned 22,556 shares of the Company. Property management services for
the Company's properties are provided by West Coast Realty Management, Inc.
("WCRM"), an affiliate of the Advisor.
Certain officers and directors of the Company are also officers and directors of
the Advisor and its affiliates.
<PAGE> 11
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 5 - RELATED PARTY TRANSACTIONS (CONTINUED)
During the periods presented, the Company had the following related party
transactions:
(a) In accordance with the advisory agreement, compensation earned by,
or services reimbursed or reimbursable to the advisor, consisted of the
following:
<TABLE>
<CAPTION>
THREE MONTHS ENDED FOR THE YEAR ENDED
MARCH 31, 1999 DECEMBER 31, 1998
------------------ ------------------
<S> <C> <C>
Syndication fees $ -- $225,176
Acquisition fees and refinancing fees 285,508 639,398
Overhead expenses 6,000 24,000
-------- --------
$291,508 $888,574
======== ========
</TABLE>
(b) At March 31, 1999 and December 31, 1998, the Advisor owned 22,556
shares of the issued and outstanding shares of the Company.
(c) Sales commissions paid in accordance with the selling agreement to
ASC totaled $0 for the three months ended March 31, 1999 and $185,903 for the
three months ended March 31, 1998.
(d) Property management fees earned by WCRM totaled $41,930 and $29,094
for the three months ended March 31, 1999 and 1998, respectively.
(e) The Corporation had related party accounts payable as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED FOR THE YEAR ENDED
MARCH 31, 1999 DECEMBER 31, 1998
------------------ ------------------
<S> <C> <C>
Associated Securities Corp. $22,249 $ 16,697
West Coast Realty Management 41,930 33,652
West Coast Realty Advisors 6,000 6,000
------- -------
$70,179 $56,349
======= =======
</TABLE>
(f) Advisory fees earned by WCRA totaled $72,719 and $57,115 for the
three months ended March 31, 1999 and 1998, respectively. WCRA waived collection
of $72,719, (or 100%) and $42,115, (or 74%) respectively, of these fees which
are included in additional paid-in capital.
<PAGE> 12
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 6 - NOTES PAYABLE
<TABLE>
<CAPTION>
MARCH 31, December 31,
1999 1998
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
8.25% promissory note secured by a Deed of Trust on the Fresno
Property, monthly principal and interest payments are $5,244 due
August 1, 2003 $ 600,191 $ 603,662
Variable rate promissory note secured by a Deed of Trust on the
OPTO-22 property, interest rate adjustments are monthly and are
based on the 11th District cost of funds rate plus 3% (7.963% at
December 31, 1998), and may never go below 6.5% or above
11.0%, monthly principal and interest payments are $12,794, due
October 1, 2003 1,662,158 1,668,449
8.25% promissory note secured by a Deed of Trust on the
Blockbuster property, interest rate adjusts to the 5-year Treasury
rate plus 350 basis points on February 1, 1999, monthly principal
and interest payments are $4,934, due February 1, 2004 538,948 542,584
8.25% promissory note secured by a Deed of Trust on the Riverside
property, monthly principal and interest payments are $9,988, due
November 8, 2004 1,153,015 1,156,264
9.625% promissory note secured by a Deed of Trust on the
Safeguard property, monthly principal and interest payments are
$24,190, due February 1, 2005 1,948,442 1,973,724
</TABLE>
<PAGE> 13
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 6 - NOTES PAYABLE (CONTINUED)
<TABLE>
<CAPTION>
MARCH 31, December 31,
1999 1998
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
8.24% promissory note secured by a Deed of Trust on the
Fremont property, interest rate equaled the 20-year Treasury
rate plus 1.65% at loan closing, monthly principal and interest
payments are currently $18,898, due August 1, 2015 2,021,438 2,036,273
10% promissory note secured by a Deed of Trust on the Java City
property, monthly principal and interest payments are $3,413,
due November 1, 2001 318,897 321,124
8%promissory note secured by a Deed of Trust on the Java City
property, monthly principal and interest payments are $3,126,
due June 1, 2018 365,380 367,440
Variable rate promissory note secured by a Deed of Trust on the
Tycom property, interest rate margin is 1.9% over the 3 month
LIBOR with right of conversion after the first year (7.65% at
December 31, 1998), monthly payments of principal and
interest are $16,693, due June 30, 2007 2,258,330 2,267,479
7.5% promissory note secured by a Deed of Trust on the Chino
property, monthly principal and interest payments are $6,836,
due October 1, 2010 (rate is adjustable on the fourth and eighth
anniversary years of the loan, to the weekly average of the five-
year Treasury Note yield for the seventh week prior to the
Adjustment Date plus 200 basis points, but no less than the
existing rate) 919,660 922,884
7.5% promissory note secured by a Deed of Trust on the
Vacaville property, monthly principal and interest payments are
$10,346, due October 1, 2010 (rate is adjustable on the fourth
and eighth anniversary years of the loan, to the weekly average
of the five-year Treasury Note yield for the seventh week prior
to the Adjustment Date plus 200 basis points, but no less than
the existing rate) 1,391,920 1,396,798
</TABLE>
<PAGE> 14
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 6 - NOTES PAYABLE (CONTINUED)
<TABLE>
<CAPTION>
1998 1997
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
7.375% promissory note secured by a Deed of Trust on the Horn
Road property, monthly principal and interest payments are
$7,309, due June 1, 2011 (rate is adjustable on the fourth and
eighth anniversary years of the loan, to the weekly average of
the five-year Treasury Note yield for the seventh week prior to
the Adjustment Date plus 195 basis points, but no less than
the existing rate) 989,270 992,913
8.33% promissory note secured by a Deed of Trust on the
Roseville property, monthly principal and interest payments are
$11,510 due July 1, 2008 1,439,674 1,444,161
7.375% promissory note secured by a Deed of Trust on the
Corona property, monthly principal and interest payments are
$7,309 due June 1, 2011 (rate is adjustable on the fourth and
eighth anniversary years of the loan, to the weekly average of
the five-year Treasury Note yield for the seventh week prior to
the Adjustment Date plus 195 basis points, but no less than the
existing rate) 989,270 992,913
7.50% promissory note secured by a Deed of Trust on the Ontario
property, monthly principal and interest payments are $22,390
due March 1, 2004 3,000,000 --
7.50% promissory note secured by a Deed of Trust on the Cerritos
property, monthly principal and interest payments are $9,238
due April 1, 2011 1,250,000 --
- --------------------------------------------------------------------------------------------------
$20,846,593 $16,686,668
==================================================================================================
</TABLE>
<PAGE> 15
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 6 - NOTES PAYABLE (CONTINUED)
The aggregate annual future maturities at March 31, 1999 and December 31, 1998
are as follows:
<TABLE>
<CAPTION>
YEAR ENDING MARCH 31, 1999 DECEMBER 31, 1998
------------------------------------------------------------------------------
<S> <C> <C>
1999 .................................. $ 309,010 $ 357,041
2000 .................................. 455,986 393,630
2001 .................................. 503,047 435,147
2002 .................................. 837,769 764,545
2003 .................................. 2,605,291 2,526,325
Thereafter ............................ 16,135,490 12,209,980
----------- -----------
Total $20,846,593 $16,686,668
=========== ===========
</TABLE>
NOTE 7 - DIVIDEND REINVESTMENT PLAN
The Company had a Dividend Reinvestment Plan (the "Plan") where cash dividends
were at the election of the shareholders, used to purchase additional shares of
the Company. The dividend reinvestment plan was terminated in April 1998.
NOTE 8 - NET INCOME AND DIVIDENDS PER SHARE
Dividends are declared and accrued based approximately upon the previous
quarter's income from operations before depreciation and amortization.
Net Income Per Share for the three months ended March 31, 1999 and 1998 was
computed using the weighted average number of outstanding shares of 2,932,762
and 2,247,145, respectively.
Dividends declared during the first quarter 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
OUTSTANDING AMOUNT TOTAL
RECORD DATE SHARES PER SHARE DIVIDEND
- ----------- ----------- --------- ----------
<S> <C> <C> <C>
March 31, 1999 2,932,762 $ 0.1600 $ 469,242
----------
TOTAL $ 469,242
==========
January 1, 1998 2,149,404 $ 0.0666 $ 143,150
February 1, 1998 2,345,825 0.0666 156,232
March 1, 1998 2,345,825 0.0666 156,232
----------
TOTAL $ 455,614
==========
</TABLE>
<PAGE> 16
WEST COAST REALTY INVESTORS, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1999 AND 1998 (UNAUDITED) AND DECEMBER 31, 1998
NOTE 9 - LITIGATION
The Company is, from time to time, involved in legal proceedings, claims and
litigation arising in the ordinary course of business. While the amounts claimed
may be substantial, the ultimate liability cannot presently be determined
because of considerable uncertainties that exist. Therefore, it is possible the
outcome of such legal proceedings, claim and litigation could have a material
effect on quarterly or annual operating results or cash flows when resolved in a
future period. However, based on facts currently available, management believes
such matters will not have a material adverse affect on the Company's financial
position, results of operations or cash flows.
NOTE 10 - SUBSEQUENT EVENTS
(a) On April 19, 1999, the Company paid dividends totaling $469,242 ($0.160 per
share), payable to shareholders of record as of March 31, 1999 (Note 8).
(b) On April 30, 1999, the Company acquired an industrial building located in
Folsom, California. The total consideration paid by the Company for the property
was $6,000,000. Long-term financing of $4,125,870 in the form of a variable rate
(6.73% per annum until May 11, 1999, thereafter may be adjusted to 1.75% per
annum in excess of Bank's LIBOR Rate for a selected Interest Period) promissory
note secured by a first deed of trust was provided by a bank in connection with
the acquisition. The promissory note is due on September 1, 2001 and the first
interest and principal payment due on June 1, 1999.
<PAGE> 17
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Certain statements in the Management Discussion and Analysis constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking
statements involve known and unknown risks, uncertainties, and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievements,
expressed or implied by such forward-looking statements.
INTRODUCTION
West Coast Realty Investors, Inc. (the "Company"), was organized in October 1989
under the laws of the State of Delaware. The Company qualifies as a Real Estate
Investment Trust ("REIT") for federal and state income tax purposes. The Company
is advised by West Coast Realty Advisors, Inc. (the "Advisor"), a wholly-owned
subsidiary of Associated Financial Group, Inc. The Advisor will oversee the
investments of the Company, subject to the direction of the Company's Board of
Directors.
The Company is organized for the purpose of investing in, holding, and managing
income-producing retail or commercial properties located primarily in California
and on the west coast of the United States. Properties have been and will be
acquired for cash or on a moderately leveraged basis with aggregate mortgage
indebtedness not to exceed fifty percent of the purchase price of all properties
on a combined basis, or eighty percent individually. The Company intended on
holding each property for approximately seven to ten years.
The Company's principal goals are to:
1. Invest in properties which will preserve and protect capital;
2. Provide shareholders with cash dividends, a portion of which will not
constitute taxable income;
3. Provide capital gains through potential appreciation of properties; and
The ownership and operation of any income-producing real estate is subject to
those risks inherent in all real estate investments, including national and
local economic conditions, the supply and demand for similar types of real
property, competitive marketing conditions, zoning changes, possible casualty
losses, and increases in real estate taxes, assessments, and operating expenses,
as well as others.
<PAGE> 18
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
INTRODUCTION (CONTINUED)
In addition, the Company is subject to the usual competitive factors that are
common in real estate including new construction, changes in the economy, and
vacancy factors at other rental real estate locations.
The Company is operated by the Advisor, subject to the terms of the Amended
Advisory Agreement dated January 1, 1992, which was renewed until June 30, 1999
by a majority vote of the shareholders, and will thereafter be renewable
annually with the approval of a majority of the shareholders. The Company has no
employees, and all administrative services are provided by the Advisor.
RESULTS OF OPERATIONS - MARCH 31, 1999 VS. MARCH 31, 1998
Operations for the quarter ended March 31, 1999 represented a full quarter of
rental operations for all properties except the Ontario property which was owned
for two and one-half months.
The net income for the quarter ended March 31, 1999 of $145,672 decreased
significantly from the quarter ending March 31, 1998 of $258,474.
Rental revenue increased $342,387 (43%) due to a full quarter ownership of the
Chino, Vacaville, Cerritos and two and one-half months ownership for the Ontario
property (as compared to no ownership of these properties during the quarter
ended March 31, 1998). Interest income decreased $14,047 (44%) due to lower cash
balances maintained during the quarter ended March 31, 1999 as compared to the
quarter ended March 31, 1998.
<PAGE> 19
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS - MARCH 31, 1999 VS. MARCH 31, 1998 (CONTINUED)
Operating expenses increased $24,905 (86%) primarily due to increases in common
area maintenance, consulting services, advertising and legal expenses, offset by
lower utilities and property insurance expenses during the quarter ended March
31, 1999 compared to March 31, 1998. Interest expense increased $108,993 (47%)
due to the additional debt incurred in connection with property acquisitions and
refinancing activities. Despite the large debt amounts, the Company is still
below the maximum 50% debt a maximum that is allowed by the Company's by-laws
(debt was approximately 49% of property cost (as defined in the by-laws) at
March 31, 1999). General and administrative costs increased $285,030 (343%) due
to acquisition fees of $261,036 expended in connection with property
acquisitions. General and administrative costs as a percentage of revenue
increased from 10.1% for the quarter ended March 31, 1998 to 31.9% for the
quarter ended March 31, 1999. Much of this increase is due to $261,036 of
acquisition fees expensed in connection with the property acquisitions.
Depreciation and amortization expense increased $2,153 (1%) as a result of the
ownership of additional properties during the quarter ended March 31, 1999
compared to the quarter ended March 31, 1998, offset by a change in asset
allocations relating to the Roseville property. Net income of $145,672 for the
quarter ended March 31, 1999 was $112,802 (44%) lower than the three months
ended March 31, 1998.
The average number of shares outstanding during 1999 was 2,932,762 vs. 2,247,145
in 1998. Net income per share decreased from $.12 in 1998 to $.05 in 1999.
During the quarter ended March 31, 1999, the Company declared dividends totaling
$469,242, compared to dividends of $455,614 declared for the quarter ended March
31, 1998. Cash basis net income for the quarter ended March 31, 1999 was
$317,093. This was derived by adding depreciation and amortization expense to
net income. Thus, cash distributions this quarter were $152,149 greater than
cash basis net income. In comparison, distributions in the first quarter 1998
were $27,872 greater than cash basis income of $427,742. In either event, the
Company continued to qualify as a REIT in 1999, and liquidity of the Company
continues to be strong.
<PAGE> 20
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS - MARCH 31, 1998 VS. MARCH 31, 1997
Operations for the quarter ended March 31, 1998 represented a full quarter of
rental operations for all properties except the Corona property which was owned
for two and one-half months
The net income for the quarter ended March 31, 1998 ($258,474) was significantly
larger than the quarter ending March 31, 1997 ($204,738) due to the raising of
additional funds and investment of such funds in additional income producing
properties. The Company did not have any adverse events that significantly
impacted net income during the quarter ended March 31, 1998, except the OPTO-22
property which had been unleased since October 15, 1997. The Company was
attempting to locate a tenant to enter into a long-term lease for the property.
All tenants were current on their lease obligations.
Rental revenue increased $64,671 (9%) due to a full quarter ownership of the
Tycom and two and one-half months ownership for the Sacramento property (as
compared to no ownership of the Roseville, Corona, and Sacramento properties
during the quarter ended March 31, 1997). Interest income increased $21,460
(207%) due to higher cash balances maintained during the quarter ended March 31,
1998 as compared to the quarter ended March 31, 1997.
On October 31, 1997, the Company ("Seller") sold the North Palm Street Property
to a unrelated buyer. The total sales price was $2,515,860 in cash. The Seller
paid the existing first deed of trust, which as of October 31, 1997 totaled
$971,305. During 1997, the Company recognized a $262,168 gain on the sale of the
North Palm Street property in Brea, California.
Operating expenses increased $7,406 (20%) due to lower common area maintenance
and consulting services during the quarter. Interest expense decreased $10,403
(4%) as a reflection of the Company acquiring the Sacramento property for cash
during 1998. No additional debt was taken on in connection with this additional
property acquisition. Despite the large debt amounts, the Company is still below
the maximum 50% debt a maximum that is allowed by the Company's by-laws (debt
was approximately 36% of property cost (as defined in the by-laws) at March 31,
1998). General and administrative costs increased $4,742 (6%) due to higher
advisory and monitoring fees related to the Company. General and administrative
costs decreased as a percentage of revenue going from 11% in 1997 to 10% in
1998. Depreciation and amortization expense increased $49,803 (42%) as the
result of the ownership of additional properties during 1998 as compared to
1997. Net income of $258,474 for the quarter ended March 31, 1998 was $53,736
(26%) higher than the three months ended March 31, 1997.
<PAGE> 21
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS - MARCH 31, 1998 VS. MARCH 31, 1997 (CONTINUED)
The average number of shares outstanding during 1998 was 2,247,145 vs. 1,641,233
in 1997. Partly because of the greater number of shares outstanding, the net
income per share decreased from $.13 in 1997 to $.12 in 1998. If this figure is
analyzed using flow of funds - that is net income plus depreciation expense -
then the amount in 1998 was $.19 per share vs. $.20 per share in 1997.
During the quarter ended March 31, 1998, the Company declared dividends totaling
$455,614, compared to dividends of $325,906 declared for the quarter ended March
31, 1997. Cash basis income for the quarter ended March 31, 1997 was $427,742.
This was derived by adding depreciation and amortization expense to net income.
Thus, cash distributions this quarter were $27,872 greater than cash basis net
income. In comparison, distributions in the first quarter 1997 were $1,703
greater than cash basis income of $324,203. In either event, the Company
continued to qualify as a REIT in 1998, and liquidity of the Company continues
to be strong.
In summary then, the operating performance of the Company continued to improve
as additional funds were raised, additional property was acquired, and all
properties were operated profitably.
LIQUIDITY AND CAPITAL RESOURCES
During the quarter ended March 31, 1999, the Company declared dividends totaling
$469,242. Dividends are determined by management based on cash flows and the
liquidity position of the Company. It is the intention of management to declare
quarterly dividends, subject to the maintenance of reasonable reserves.
The Company has used the net proceeds from its offerings to purchase additional
income-producing properties and to add to the cash reserve balances of the
Company. Since the fourth and latest offering expired on April 22, 1998, the
Company did not raise additional net proceeds as the result of the sale of
shares for the quarter ended March 31, 1999. In contrast, during the quarter
ended March 31, 1998, the Company raised $2,141,854 in net proceeds as the
result of the sale of shares from its fourth offering.
Management uses cash as its primary measure of the Company's liquidity. The
amount of cash that represents adequate liquidity for a real estate investment
company, is dependent on several factors. Among them are:
<PAGE> 22
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
1. Relative risk of the Company's operations;
2. Condition of the Company's properties;
3. Stage in the Company's operating cycle (e.g., money-raising, acquisition,
operating or disposition phase); and
4. Shareholders dividends.
The Company is adequately liquid and management believes it has the ability to
generate sufficient cash to meet both short-term and long-term liquidity needs,
based upon the above four factors.
The first factor refers to the risk of the Company's investments. At March 31,
1999, the Company's excess funds were invested in a short-term money market
funds. The Company acquires rental property either entirely for cash or with
moderate financing. During the quarter ended March 31, 1999, notes payable
pertaining to property acquisitions by the Company increased by $4,250,000,
while cash used in principal repayments of notes totaled $90,075. Although the
notes are set up on an amortization schedule allowing for the repayment of
principal over time, most of the principal on the notes is due in balloon
payments that come due in the years 2001 through 2011. The Company is aware that
the balloon payments must be avoided through refinancing of the loans or the
sale of the property(ies) in order to protect the interests of the Company's
shareholders. Furthermore, most of the properties' tenants are nationally known
retailers or well-established businesses under long-term leases.
The second factor refers to the condition of the Company's properties. The
Company's properties are in good condition without significant deferred
maintenance obligations and are leased under "triple-net" leases, which reduces
the Company's risk pertaining to excessive maintenance and operating costs.
<PAGE> 23
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
The third factor refers to operating cycle. The Company was liquid at March 31,
1999 since the Company is still in the "operating" stage. Virtually all funds
raised were invested in short-term money market funds. At quarter-end, the
Company has allocated approximately $450,000 towards a "reserve" fund (3% of
gross funds raised, as disclosed in the Company's latest prospectus), $469,000
of cash held pending dividend distribution to the investors, $242,000 of cash to
be paid for current mortgage and accounts payable commitments, $367,000 in
tenant security deposits and prepaid rents, and the balance - approximately
$3,009,000 - expected to be invested in future property acquisitions. The
Company's operations generated $309,576 in net operating cash flow during the
quarter ended March 31, 1999 (net income plus depreciation and amortization
expense). Thus, the Company is generating significant amounts of cash flow and
could withhold payment of all or a portion of dividends, if necessary, in order
to rebuild cash balances.
The fourth factor refers to distribution of dividends to shareholders. Dividends
to shareholders were made at a level consistent with the amount of net income
available after application of expenses. The Advisor is careful not to make
distributions in excess of the available income.
Inflation and changing prices have not had a material effect on the Company's
operations. Operations in the near future may be materially affected as and when
the Company acquires additional property.
On April 30, 1999, the Company acquired an industrial building located in
Folsom, California. The total consideration paid by the Company for the property
was $6,000,000. Long-term financing of $4,125,870 in the form of a variable rate
promissory note secured by a first deed of trust was provided by a bank in
connection with the acquisition. The promissory note is due on September 1, 2001
and the first interest and principal payment due on June 1, 1999.
<PAGE> 24
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
CASH FLOWS - MARCH 31, 1999 VS. MARCH 31, 1998
Cash resources decreased $57,157 during the three months ended March 31, 1999
compared to a $433,258 decrease in cash resources for the three months ended
March 31, 1998. Cash provided by operating activities increased by $363,387 with
the largest contributor being $317,093 in cash basis net income for the three
months ended March 31, 1999. In contrast, the three months ended March 31, 1998
provided $209,786 in cash from operating activities due primarily to $427,742 in
cash basis net income. The sole use of cash in investing activities for the
three months ended March 31, 1999 was $4,614,964 expended for the acquisition of
an additional property located in Ontario, California. In contrast, the three
months ended March 31, 1998 used $2,243,152 in cash for investing activities in
connection with the acquisition of an additional property located in Corona,
California. For the three months ended March 31, 1999, financing activities
provided an additional $4,194,420 due to $4,250,000 in financing obtained in
connection with the acquisition of the Cerritos and Ontario, California
properties, offset by repayments on notes payable of $90,075 and increase in
loan origination fees of $38,224. In contrast, for the three months ended March
31, 1998, financing activities provided an additional $1,600,108 via the sale of
additional shares in the Company ($2,141,854 in net proceeds), less dividends
paid and payable of $455,614, less an increase in loan origination fees of
$65,000 and repayments of notes payable principal of $63,247.
<PAGE> 25
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
CASH FLOWS - MARCH 31, 1998 VS. MARCH 31, 1997
Cash resources decreased $433,258 during the three months ended March 31, 1998
compared to a $1,495,133 decrease in cash resources for the three months ended
March 31, 1997. Cash provided by operating activities increased by $209,786 with
the largest contributor being $427,742 in cash basis net income for the three
months ended March 31, 1998. In contrast, the three months ended March 31, 1997
provided $374,602 in cash from operating activities due primarily to $327,248 in
cash basis net income. The sole use of cash in investing activities for the
three months ended March 31, 1998 was $2,243,152 expended for the acquisition of
an additional property located in Corona, California. In contrast, the three
months ended March 31, 1997 used $4,907,441 in cash for investing activities in
connection with the acquisition of an additional property located in Irvine,
California. For the three months ended March 31, 1998, financing activities
provided an additional $1,600,108 via the sale of additional shares in the
Company ($2,141,854 in net proceeds), less dividends paid and payable of
$455,614, less an increase in loan origination fees of $65,000 and repayments on
notes payable of $63,247. In contrast, for the three months ended March 31,
1997, financing activities provided an additional $3,037,706 via the sale of
additional shares in the Company ($1,045,305 in net proceeds), and $2,300,000 in
financing obtained in connection with the acquisition of the additional
property, less dividends paid and payable of $280,088 and repayments of notes
payable principal of $53,554.
<PAGE> 26
WEST COAST REALTY INVESTORS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
IMPACT OF YEAR 2000
Many existing computer systems and applications, and other control devices, use
only two digits to identify a year in the date field, without considering the
impact of the upcoming change in the century. As a result, such systems and
applications could fail or create erroneous results unless corrected so that
they can process data related to the year 2000. The Company relies on its
systems, applications and devices in operating and monitoring all major aspects
of its business, including financial systems (such as general ledger, accounts
receivable, accounts payable and shareholder servicing), and embedded computer
chips, networks and telecommunications equipment and end products. The Company
also relies, directly and indirectly, on external systems of business
enterprises such as its advisor, lessees, suppliers, creditors, financial
organizations, and of governmental entities for accurate exchange of data. The
Company's current estimate is that the costs associated with the year 2000 issue
will not have a material adverse effect on the results of operations or
financial position of the Company. However, despite the Company's efforts to
address the year 2000 impact on its internal systems, the Company may not have
fully identified such impact or whether it can resolve it without disruption of
its business and without incurring significant expense. In addition, even if the
internal systems of the Company are not materially affected by the year 2000
issue, the Company could be affected through disruption in the operations of the
enterprises with which the Company interacts.
<PAGE> 27
WEST COAST REALTY INVESTORS, INC.
PART II
O T H E R I N F O R M A T I O N
ITEM 1. LEGAL PROCEEDINGS
The Company is a defendant in a lawsuit entitled JOHN LONBERG; RUTHEE
GOLDKORN V. SANBORN THEATERS, INC.; SALTS, TROUTMAN AND KANESHIRO, INC.; WEST
COAST REALTY INVESTORS, INC., in the U.S. District Court for the Central
District of California. (Case #CV-97-6598AHM(JGx)
The Company was added as a defendant in the plaintiff's First Amended Complaint
filed May 7, 1998, apparently due to the Company's status as landlord for a
movie theater known as the Riverside Market Place Cinema.
The plaintiffs alleged violations of the federal Americans with Disabilities Act
and the California Unruh Civil Rights Act with respect to their movie-going
experiences, including inadequate physical accommodations for wheelchair-bound
guests and insensitive theater personnel. Sanborn is the tenant and theater
operator. Troutman is the architect who designed the theater and its interiors.
The plaintiffs seek actual damages of $1,000 for each violation of law; three
times actual damages; and attorneys fees, expenses and costs. The plaintiffs
also seek mandatory injunctive relief requiring the defendants to make the
theater accessible to and useable by disabled individuals.
The plaintiffs have agreed to dismiss their claim under the Unruh Civil Rights
Act.
The U.S. Department of Justice, Civil Rights Division ("DOJ") filed a Motion to
Invervene in the case on March 1, 1999. DOJ has sued Sanborn Theaters only and
preliminary discussions have been held between the DOJ and Sanborn. Sanborn
intends to vigorously defend the allegations contained in the lawsuit. The
Company believes that the lawsuit will have no material impact on the Company's
continuing operations or overall financial condition.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
<PAGE> 28
WEST COAST REALTY INVESTORS, INC.
PART II
O T H E R I N F O R M A T I O N (CONTINUED)
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K
(a) Information required under this section has been included in the
financial statements.
(b) Reports on Form 8-K
None
<PAGE> 29
WEST COAST REALTY INVESTORS, INC.
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WEST COAST REALTY INVESTORS, INC.
(Registrant)
Date: May 17, 1999 /s/ W. THOMAS MAUDLIN JR.
-----------------------------------------------------
W. THOMAS MAUDLIN JR.
(Director, President and Principal Executive Officer)
Date: May 17, 1999 /s/ JOHN R. LINDSEY
-------------------------------------------
JOHN R. LINDSEY
(Vice President/Treasurer,
Principal Financial Officer, and
Principal Accounting Officer)
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