UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended: September 30, 2000
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: 0-6103
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 Identification No.)
incorporation or organization)
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)
(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 September 30, 2000, there were outstanding 542,413 shares of
beneficial interest of the registrant.
<PAGE>
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)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues --- --- --- ---
----------------------------------------------------------------------
Professional fees $1,525 $1,471 $10,619 $9,749
Interest expense 3,675 1,694 10,702 8,012
Other expenses 0 2,168 2,897 5,105
----------------------------------------------------------------------
Total expense 5,200 5,333 24,218 22,866
----------------------------------------------------------------------
Net earnings (loss)
($5,200) ($5,333) ($24,218) ($22,866)
======================================================================
Earnings (loss) per share of
beneficial interest
($0.01) ($0.01) ($0.04) ($0.04)
======================================================================
Shares of beneficial interest
used in computing per share
amounts 542,413 542,413 542,413 542,413
======================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WATERMARK INVESTORS REALTY TRUST
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
------------------------------------
(Unaudited)
<S> <C> <C>
ASSETS
Real estate $168,588 $168,588
Less allowance for
estimated losses (168,588) (168,588)
------------------------------------
Cash 10,946 831
------------------------------------
TOTAL ASSETS $10,946 $831
====================================
LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES
Note payable-related party $140,100 $115,100
Accrued liabilities 14,423 15,792
Accrued interest payable - related party 42,430 31,728
Unclaimed dividends 20,174 20,174
------------------------------------
$217,127 $182,794
------------------------------------
SHAREHOLDERS' DEFICIT
Common 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 (446,621) (422,403)
------------------------------------
($206,181) ($181,963)
------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
$10,946 $831
====================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WATERMARK INVESTORS REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
2000 1999
-----------------------------------------------------
(unaudited)
<S> <C> <C>
Cash flow from operating activities:
Net earnings (loss) ($24,218) ($22,866)
Adjustment to reconcile net cash
provided by (used in) operating activities
Net change in accrued
liabilities 9,333 9,659
-----------------------------------------------------
Net cash used in operations ($14,885) ($13,207)
-----------------------------------------------------
Cash flow from financing: 25,000 10,000
Proceeds from note payable
-----------------------------------------------------
Increase (decrease) in cash 10,115 (3,207)
Cash
At beginning of period 831 10,714
-----------------------------------------------------
At end of period $10,946 $7,507
======================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
WATERMARK INVESTORS REALTY TRUST
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
SEPTEMBER 30, 2000
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 Item 14 to Corporation's annual
report on Form 10-K for the year ended December 31, 1999.
ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources - At September 30, 2000, existing current
liabilities exceed available cash by $206,181.
Balance Sheet Changes - Assets decreased by $1,525 for the quarter. Accrued
liabilities increased by $3,675 for the quarter. Assets increased by $10,115 for
the nine months ended September 30, 2000. Accrued liabilities increased by
$9,333 for the nine months ended September 30, 2000.
ITEM III. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Management does not believe the Company has any exposure to market risk other
than the risks commonly associated with ownership of real property.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
(27) Financial Data Schedule
b. Reports on Form 8-K
None.
<PAGE>
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: November 14, 2000 By: /s/ Michael S. Verruto
----------------------
Michael S. Verruto
Trustee, Vice President
and Secretary
(An Authorized Officer and
Chief Accounting Officer)
