UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended: June 30, 1996
Commission file Number: 0-6103
WATERMARK INVESTORS REALTY TRUST
(Exact name of registrant as specified in its charter.)
Texas 75-1372785
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
227 West Trade Street, Suite 2320, Charlotte, NC 28202
(Address of principal executive offices) (Zip Code)
(704)343-9334
(Registrant's telephone number, including area code)
Arlington Realty Investors
10670 N. Central Expressway, Ste. 640, Dallas, TX 75231
(Former Name, Former Address and Former Fiscal Year, if changed)
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 [ ]
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practical
date:
As of August 7, 1996, there were outstanding 542,413 shares
of beneficial interest of the registrant.
PART I. - FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
The accompanying Financial Statements have not been audited
by independent accountants, but in the opinion of management, all
adjustments (which consist of normal recurring accruals)
necessary for a fair presentation of results of operations,
financial position and cash flows at the dates and for the
periods indicated have been included.
WATERMARK INVESTORS REALTY TRUST
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS AND SIX MONTHS
ENDED JUNE 30, 1996 AND 1995
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1996 1995 1996 1995
Gain on sale of land ---- $3,765 ---- $3,765
______________________________________
Professional fees $15,765 $1,006 $16,752 $12,908
Property taxes 2,147 2,147
Other Expenses 87 750 87 1,500
______________________________________
Total Expense 15,852 3,903 16,839 16,555
______________________________________
Net earnings (loss) ($15,852) ($138) ($16,839) ($12,790)
======================================
Earnings (loss per
share of beneficial
interest ($0.03) ($0.00) ($0.03) ($0.02)
======================================
Shares of
beneficial interest
used in computing
per share amounts 542,413 542,413 542,413 542,413
======================================
The accompanying notes are an integral part of these Financial
Statements.
WATERMARK INVESTORS REALTY TRUST
CONSOLIDATED BALANCE SHEETS
JUNE 30 DECEMBER 31
1996 1995
(Unaudited)
ASSETS
Real Estate $168,588 $168,588
Less allowance for
estimated losses (168,588) (168,588)
____________________________
0 0
____________________________
Cash 793 880
____________________________
TOTAL ASSETS $793 $880
============================
LIABILITIES AND SHAREHOLDER'S DEFICIT
LIABILITIES
Accrued
Liabilities $53,425 $36,673
Unclaimed dividends 20,174 20,174
____________________________
73,599 56,847
____________________________
SHAREHOLDERS' DEFICIT
Shares of beneficial
interest, $1.00
par value, authorized
10,000,000 shares
with 542,413 issued
and outstanding 196,235 196,235
Additional paid-in
capital 44,205 44,205
Accumulated deficit (313,246) (296,407)
____________________________
(72,806) (55,967)
____________________________
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT $793 $880
============================
The accompanying notes are an integral part of these Financial
Statements.
WATERMARK INVESTORS REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
SIX MONTHS ENDED
JUNE 30,
1996 1995
Cash flow from
operating activities:
Net earnings (loss) ($16,839) ($12,790)
Adjustment to reconcile
net cash provided by
(used in) operating
activities
Net change in
accrued liabilities 16,752 (7,387)
___________________________
Net cash used in Operations ($87) ($20,177)
___________________________
Decrease in cash (87) (20,177)
___________________________
Cash
At beginning of period 880 33,087
___________________________
At end of period $793 $12,910
___________________________
The accompanying notes are an integral part of these financial
statements.
WATERMARK INVESTORS REALTY TRUST
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
June 30, 1996
Note A - Basis of Presentation
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and with
the instructions to Form 10-Q and Rule 10-01 of Rule S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management,
all adjustments considered necessary for a fair presentation have
been included. All such adjustments were of a normal recurring
nature. For further information refer to the financial
statements and footnotes thereto included as Exhibit 13 to
Corporation's annual report on Form 10-K for the year ended
December 31, 1995.
ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources - At June 30, 1996, existing
current liabilities exceed available cash by $73,000.
Balance Sheet Changes - Assets decreased by $90 for the quarter.
Accrued liabilities increased by $15,800 as a result of
professional expenses incurred.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
None.
b. Reports on Form 8-K
None.
WATERMARK INVESTORS REALTY TRUST
SIGNATURES
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.
WATERMARK INVESTORS REALTY TRUST
Date: August 13, 1996 By: /s/ David S. Givner
_________________________
David S. Givner
Trustee, President and
Treasurer
(Principal Executive
Officer and Principal
Financial and Accounting
Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the Company's
financial statements contained in its 10-Q for the quarter ending June 30, 1996
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 793
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 793
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 793
<CURRENT-LIABILITIES> 73,599
<BONDS> 0
0
0
<COMMON> 196,235
<OTHER-SE> (269,041)
<TOTAL-LIABILITY-AND-EQUITY> 793
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 15,852
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (15,852)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (15,852)
<EPS-PRIMARY> (0.03)
<EPS-DILUTED> (0.03)
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