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: March 31, 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 May 13, 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 ENDED
MARCH 31, 1996 AND 1995
Three months ended
March 31
__________________
1996 1995
______ ______
Total Revenue $ --- $ ---
______ ______
Professional fees 987 11,902
Other expenses --- 750
______ ______
Total Expenses 987 12,652
______ ______
Net earnings (loss) $ (987)$(12,652)
====== ======
Earnings (loss) per share
of beneficial interest $ (.00) $ (.02)
====== ======
Shares of beneficial
interest used in computing
per share amounts 542,413 542,413
======= =======
See accompanying notes to Financial Statements.
WATERMARK INVESTORS REALTY TRUST
CONSOLIDATED BALANCE SHEETS
March 31, 1996 December 31, 1995
(Unaudited)
______________ ______________
ASSETS
Real estate $ 168,588 $ 168,588
Less allowance for estimated
losses (168,588) (168,588)
___________ ___________
0 0
___________ ___________
Cash and cash equivalents 880 880
___________ ___________
TOTAL ASSETS $ 880 $ 880
=========== ===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accrued liabilities $ 37,660 $ 36,673
Unclaimed dividends 20,174 20,174
___________ ___________
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 (297,394) (296,407)
___________ ___________
$ (56,954) $ (55,967)
___________ ___________
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT $ 880 $ 880
=========== ===========
See accompanying notes to Financial Statements.
WATERMARK INVESTORS REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
_______ _______
Cash flow from operating activities:
Net earnings (loss) $ (987) $ (12,652)
Adjustments to reconcile net
earnings to net cash provided by
(used in) operating activities
Net change in accrued
liabilities 987 (7,387)
_______ _______
Net cash used in operations $ 0 $(20,039)
_______ _______
Decrease in cash 0 (20,039)
Cash and cash equivalents
At beginning of period $ 880 $ 33,087
_______ _______
At end of period 880 13,048
======= =======
See accompanying notes to financial statements.
WATERMARK INVESTORS REALTY TRUST
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
March 31, 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 March 31, 1996, existing
current liabilities exceed available cash by $57,000.
Balance Sheet Changes - Assets remained unchanged for the
quarter. Accrued liabilities increased by $1,000 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 requirement 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: May 15, 1996 By: /s/ David S. Givner
David S. Givner
Trustee, President and
Treasurer
(Principal Executive
Officer and Principal
Financial and Accounting
Officer)
By: /s/ Michael S. Verruto
Michael S. Verruto
Trustee, Vice President
and Secretary
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 880
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 880
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 880
<CURRENT-LIABILITIES> 57834
<BONDS> 0
0
0
<COMMON> 196235
<OTHER-SE> (253189)
<TOTAL-LIABILITY-AND-EQUITY> 880
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 987
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (987)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (987)
<EPS-PRIMARY> (.00)
<EPS-DILUTED> (.00)
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