<PAGE> 1
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, 1997
Commission file number 1-12428
OASIS RESIDENTIAL, INC.
(Exact name of Registrant as specified in its Charter)
NEVADA 88-0297457
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) Number)
4041 East Sunset Road, Henderson, Nevada 89014
(Address of Principal Executive Offices)
(702) 435-9800
(Registrant's Telephone Number, Including Area Code)
Indicate by a check mark whether the registrant: (1) has filed all reports 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:
<TABLE>
<CAPTION>
Class Shares Outstanding Date
----- ------------------ ----
<S> <C> <C>
Common Stock, $0. 01 par value 16,237,646 May 12, 1997
</TABLE>
<PAGE> 2
OASIS RESIDENTIAL, INC.
QUARTERLY REPORT ON FORM 10-Q
CONTENTS
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I - FINANCIAL INFORMATION:
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets as of March 31, 1997
and December 31, 1996 2
Consolidated Statements of Operations for the Three
Months Ended March 31, 1997 and 1996 3
Consolidated Statements of Cash Flows for the Three
Months Ended March 31, 1997 and 1996 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-12
PART II - OTHER INFORMATION 13
Signatures 14
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
OASIS RESIDENTIAL, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
--------- ---------
(Unaudited)
<S> <C> <C>
Assets:
Real estate assets:
Land $ 93,484 $ 93,484
Buildings and improvements 553,335 552,500
Furniture and fixtures 40,126 39,515
--------- ---------
686,945 685,499
Less accumulated depreciation 57,575 53,049
--------- ---------
629,370 632,450
Land held for development 3,866 3,766
Construction in progress 121,804 109,202
--------- ---------
Net real estate assets 755,040 745,418
Cash and cash equivalents 3,275 3,397
Restricted cash 3,293 2,976
Investment in and advances to joint venture 8,471 9,574
Deposits on real estate assets 2,716 2,000
Deferred costs and other assets (net of accumulated
amortization of $2,073 and $1,802 at March 31, 1997
and December 31, 1996, respectively) 12,079 11,408
--------- ---------
Total assets $ 784,874 $ 774,773
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Debt $ 406,341 $ 394,274
Resident deposits and prepaid rent 2,174 2,066
Accounts payable and accrued expenses 6,712 6,221
--------- ---------
Total liabilities 415,227 402,561
--------- ---------
Commitments (Note 2)
Stockholders' equity:
Preferred stock, $2.25 Series A Cumulative Convertible, 42 42
$.01 par value, liquidation preference $25 per share,
15,000,000 shares authorized, 4,165,000 shares issued
and outstanding at March 31, 1997 and
December 31, 1996
Common stock, $.01 par value, 100,000,000 shares 162 162
authorized, 16,237,646 shares issued and outstanding at
March 31, 1997 and December 31, 1996
Paid-in capital 386,910 386,910
Distributions in excess of net income (17,467) (14,902)
--------- ---------
Total stockholders' equity 369,647 372,212
--------- ---------
Total liabilities and stockholders' equity $ 784,874 $ 774,773
========= =========
</TABLE>
See notes to consolidated financial statements
<PAGE> 4
OASIS RESIDENTIAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
---------------------------
1997 1996
----------- -----------
<S> <C> <C>
Revenue:
Rental income $ 25,899 $ 21,059
Other income 925 693
----------- -----------
Total revenue 26,824 21,752
----------- -----------
Expenses:
Property operating and maintenance 7,245 6,129
General and administrative 939 832
Real estate taxes 1,429 1,150
Interest 5,288 2,872
Interest, non-cash (loan fees and costs) 268 294
Depreciation and amortization 4,530 3,520
----------- -----------
Total expenses 19,699 14,797
----------- -----------
Net income 7,125 6,955
Less preferred dividend requirement 2,343 2,343
----------- -----------
Earnings available for common stockholders $ 4,782 $ 4,612
=========== ===========
Per share amounts:
Earnings available for common stockholders $ 0.29 $ 0.28
=========== ===========
Dividends declared per common share $ 0.4525 $ 0.435
=========== ===========
Weighted average number of common
shares outstanding 16,237,646 16,237,646
=========== ===========
</TABLE>
See notes to consolidated financial statements
<PAGE> 5
OASIS RESIDENTIAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
----------------------
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 7,125 $ 6,955
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 4,530 3,520
Amortization of discount on notes payable 5 -
Interest, non-cash (loan fees and costs) 268 294
Changes in assets and liabilities:
Restricted cash (317) (357)
Deferred costs and other assets (942) 387
Resident deposits and prepaid rent 108 110
Accounts payable and accrued expenses 491 (4,774)
-------- --------
Net cash provided by operating activities 11,268 6,135
-------- --------
Cash flows from investing activities:
Purchase of real estate assets (1,446) (4,734)
Construction of real estate assets (12,702) (35,436)
Investment in and advances to joint venture 1,103 -
Deposits on real estate assets (716) -
-------- --------
Net cash used in investing activities (13,761) (40,170)
-------- --------
Cash flows from financing activities:
Proceeds from debt 12,500 38,000
Principal payments on debt (438) (447)
Cash dividends paid - preferred stock (2,343) (2,343)
Cash dividends paid - common stock (7,348) (7,062)
-------- --------
Net cash provided by financing activities 2,371 28,148
-------- --------
Net decrease in cash and cash equivalents (122) (5,887)
Cash and cash equivalents, beginning 3,397 5,970
-------- --------
Cash and cash equivalents, ending $ 3,275 $ 83
======== ========
Supplemental information:
Cash paid for interest $ 4,571 $ 4,722
======== ========
</TABLE>
See notes to consolidated financial statements
<PAGE> 6
OASIS RESIDENTIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles applicable to
interim financial information and pursuant to the rules and regulations of
the Securities and Exchange Commission. Accordingly, certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed
or omitted pursuant to such rules and regulations. However, in the opinion of
management, all adjustments, consisting only of normal recurring adjustments,
necessary for a fair presentation have been included. The Company presumes
that users of the interim financial information herein have read or have
access to the audited financial statements for the preceding fiscal year and
that the adequacy of additional disclosure needed for a fair presentation may
be determined in that context. Accordingly, footnote disclosure which would
substantially duplicate the disclosure contained in the Company's 1996 Annual
Report on Form 10-K has been omitted.
The Company capitalizes all direct costs of developing its properties.
Interest is capitalized during development and construction until a property
is completed and ready for occupancy. In computing the amount of interest to
be capitalized for each period, the Company computes the average amount of
development and construction costs incurred on each project and allocates
interest costs associated with loans incurred for the purpose of furthering
the Company's development and construction activities. To the extent that
the total development and construction costs exceed the amount of the
construction related loans, the Company applies its average borrowing
rate on other than construction-related loans to such excess construction
costs to derive the amount of additional capitalized interest. General and
administrative costs are expensed, except for the costs incurred in support
of the Company's construction-focused executives.
2. COMMITMENTS
As of March 31, 1997, the Company was under construction or grading on seven
additional multifamily apartment communities totaling 2,559 units in three
markets, Las Vegas, Reno and Denver. The Company anticipates completing 1,897
of these units in 1997. The estimated total investment upon completion of the
1,897 units scheduled to be completed in 1997 is $149,800. The estimated
total investment for the remaining 662 units will be finalized prior to the
commencement of construction. As of March 31, 1997, the Company had expended
approximately $121,804 in land acquisition and development costs on these
projects.
3. SUBSEQUENT EVENTS
On April 28, 1997, the Company declared a quarterly dividend for its common
stock of $0.4525 per share. The dividend is to be paid on June 3, 1997 to
stockholders of record on May 23, 1997. The Company announced on April 18,
1997, the declaration of its quarterly dividend of $0.5625 per share on its
Series A Cumulative Convertible Preferred Stock. This preferred stock
dividend is to be paid on May 15, 1997 to stockholders of record on May 1,
1997.
<PAGE> 7
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE LITIGATION REFORM ACT OF 1995. Statements contained or incorporated by
reference in this document that are not based on historical fact are "forward
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements may be identified by the use of
the forward-looking terminology such as "may", "will", "expect", "estimate",
"anticipate", "continue" or similar terms, variations of those terms or the
negative of those terms. The "Risk Factors" set forth in the Company's Annual
Report on Form 10-K constitute cautionary statements identifying important
factors that could cause actual results to differ materially from those in the
forward-looking statements.
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the consolidated
financial statements and notes thereto appearing elsewhere in this Form 10-Q.
RESULTS OF OPERATIONS
Increases in the operating results for the periods discussed below are
primarily the result of increases from period to period in the number of
properties owned and operated. Where applicable, comparisons have been made on
a weighted average per unit basis in order to adjust for such changes in the
number of units owned and operated. In computing the weighted average per unit
amounts, income and expenses of the commercial properties have been
eliminated.
Comparison of the three months ended March 31, 1997 to the three months ended
March 31, 1996.
The weighted average number of apartment units increased by 1,545 units for
the three months ended March 31, 1997, as compared to the same period in 1996.
This increase was the result of the development of 1,130 units since the end
of March 1996. The total number of units operated as of March 31, 1997 and
1996 were 13,428 and 12,298, respectively. The weighted average number of
apartment units for each of the periods was as follows:
<TABLE>
<S> <C>
Three months ended March 31, 1997 13,428
Three months ended March 31, 1996 11,883
</TABLE>
For the three months ended March 31, 1997, net income increased by $170,000
over the three months ended March 31, 1996. This increase was due to increased
rental and other income of $5,072,000, as well as a decrease in interest
expense (non-cash), which represents amortization of loan fees and costs, of
$26,000. Offsetting these factors were increases in property operating and
maintenance expenses of $1,116,000, general and administrative expenses of
$107,000, real estate taxes of $279,000, interest expense of $2,416,000, and
depreciation and amortization of $1,010,000. The increase in revenue and
expenses was primarily the result of operating a greater number of apartment
units in 1997 as compared to 1996.
<PAGE> 8
PROPERTY OPERATIONS: The following table presents the Company's results of
operations for its multifamily apartment communities (excluding commercial
property and corporate general and administrative expenses) for the three
months ended March 31, 1997 and 1996:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------------
1997 1996 % CHANGE
------- ------- --------
(Dollars in thousands)
<S> <C> <C> <C>
Rental income $25,283 $20,902 21%
Other income 793 622 27%
------- ------- --
Total income 26,076 21,524 21%
------- ------- --
Property operating and maintenance 7,016 6,093 15%
Real estate taxes 1,467 1,137 29%
------- ------- --
Total property operating expenses 8,483 7,230 17%
------- ------- --
Property net operating income,
before interest expense,
depreciation and amortization $17,593 $14,294 23%
======= ======= ==
</TABLE>
Rental income for the three months ended March 31, 1997 increased over the
same period of 1996 by $4,381,000, or 21%, primarily due to the development of
additional apartment communities. The weighted average monthly rental income
per apartment unit was approximately $628 for the three months ended March 31,
1997, as compared to $586 for the same three month period in 1996.
Other income (consisting primarily of nonrefundable security deposits,
application and cleaning fees, laundry and vending income) increased by
$171,000, or 27%, for the three months ended March 31, 1997, as compared to
the same period in 1996. This increase is primarily due to the operation of
additional apartment communities in 1997 as compared to 1996.
Property operating and maintenance expenses increased by $923,000, or 15%. On
a weighted average per unit, per month basis, these expenses increased by $3,
to $174 for the three months ended March 31, 1997, as compared to $171 for the
same period in 1996. This increase is primarily attributable to general
increases in utility rates during 1997 and in the last nine months of 1996.
Real estate taxes increased by $330,000, or 29%, primarily due to the
development of additional apartment communities in the last three quarters of
1996. On a weighted average per unit, per month basis, real estate taxes
increased by $4, to $36 for the three months ended March 31, 1997 as compared
to $32 for the same period in 1996. This increase is primarily due to
increases in property taxes at certain properties for the tax year commencing
July 1, 1996. In Nevada, properties are assessed at their value as of July 1
of each year and, therefore, properties that are under development as of that
date are not assessed on their full value until July 1 of the following year.
<PAGE> 9
"SAME STORE" PORTFOLIO: The following table presents a comparison of the
operating results for the three months ended March 31, 1997 as compared to the
three months ended March 31, 1996 for the properties that the Company owned as
of December 31, 1995, consisting of 40 apartment communities, containing
10,959 apartment units:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-----------------------------
1997 1996 % CHANGE
------- ------- --------
(Dollars in thousands)
<S> <C> <C> <C>
Rental income $19,801 $19,039 4%
Other income 668 526 27%
------- ------- ---
Total income 20,469 19,565 5%
------- ------- ---
Property operating and maintenance 5,609 5,531 1%
Real estate taxes 1,148 1,100 4%
------- ------- ---
Total property operating expense 6,757 6,631 2%
------- ------- ---
Property net operating income,
before interest expense,
depreciation and amortization $13,712 $12,934 6%
======= ======= ===
</TABLE>
The increase in rental income of $762,000, or 4%, was primarily due to an
increase in average rental rates.
Other income increased by $142,000, or 27%, as a result of an increase in fees
unrelated to rent such as nonrefundable security deposits, application and
cleaning fees and late fees.
The increase in property operating and maintenance expenses of $78,000, or 1%,
was due primarily to increased utility costs of $106,000, which were partially
offset by decreases in other operating expenses of $28,000.
Real estate taxes increased by $48,000, or 4%, primarily due to the
re-assessment of certain communities by the taxing authorities.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased by $5,133,000 from
$6,135,000 in the three months ended March 31, 1996 to $11,268,000 in the
three months ended March 31, 1997, primarily due to increases in rental income
from additional properties developed subsequent to March 31, 1996, and as a
result of an increase in accounts payable and accrued expenses, partially
offset by an increase in deferred costs and other assets.
Net cash used in investing activities decreased by $26,409,000 from
$40,170,000 in the three months ended March 31, 1996 to $13,761,000 in the
three months ended March 31, 1997. During the three months ended March 31,
1996, the Company had 13 properties under construction, containing 3,778
apartment units, of which 272 units were completed during the period. During
the three months ended March 31, 1997, the Company had seven communities under
construction (including a 321 unit apartment community being developed as part
of a joint venture agreement), comprising 2,559 units in three markets, Las
Vegas, Reno and Denver. The estimated total investment upon completion of the
<PAGE> 10
1,897 units scheduled to be completed in 1997 is $149,800,000. The estimated
total investment for the remaining 662 apartment units will be finalized prior
to the commencement of construction.
The Company funds its development activities through a combination of working
capital, construction loans and credit facility debt. At March 31, 1997, the
Company had available borrowing capacity under the credit facility of
$101,764,000.
Net cash provided by financing activities decreased by $25,777,000 from
$28,148,000 in the three months ended March 31, 1996 to $2,371,000 in the
three months ended March 31, 1997, primarily as a result of lower proceeds
from the issuance of debt in 1997 as compared to 1996.
The Company anticipates meeting its short-term liquidity requirements through
a combination of cash flow retained for investment purposes, cash available
from its credit facility and construction loans plus additional long-term
borrowings. The Company believes that its net cash provided by operations will
be adequate to meet its operating requirements and to pay dividends in
accordance with Real Estate Investment Trust ("REIT") requirements.
The Company expects to meet its long-term liquidity requirements, such as
funds for property acquisition and development activity and the repayment of
debt, through new long-term borrowings and the issuance of additional debt
securities or equity securities. In addition, the Company has a shelf
registration statement with the Securities and Exchange Commission which
covers up to an aggregate of $250,000,000 of debt securities, preferred stock,
depositary stock, common stock and warrants to purchase common stock and
preferred stock which the Company may issue from time to time.
CAPITAL EXPENDITURES
The Company capitalizes the direct and indirect cost of expenditures for the
acquisition or development of apartment communities and replacements and
improvements. Non-revenue generating capital expenditures are those
replacements which recur on a regular basis, but which have estimated useful
lives of more than one year, such as roofing, heating, ventilation and air
conditioning and exterior repainting. Revenue-generating expenditures are
those improvements which enhance the communities net operating income
generating capabilities either through increased rental rates or reduced
operating expenses.
During 1995, the Company implemented its customer focused brand name operating
strategy. The process required many on-site improvements, including the
changing of property signage (which includes the Oasis name and logo) and was
completed in 1996. These costs are considered revenue-generating capital
expenditures in that the Company believes that the Oasis brand name enhances
the Company's ability to attract new residents, retain existing residents,
gain additional resident referrals, and retain more residents transferring
from one Oasis community to another.
At newly acquired communities, the Company often finds it necessary to upgrade
the physical appearance of the properties and to complete maintenance and
repair work which had been deferred by prior owners. These activities often
result in heavier capital expenditures in the early years of Company
ownership. Some of these expenditures which would normally be considered
non-revenue generating capital expenditures or expensed items are classified
as revenue-generating expenditures when carpet and appliances are replaced and
the community is substantially upgraded to meet the image and quality
standards represented by the Oasis brand name. Upon completion of the
rehabilitation process, normal recurring capital expenditures such as carpet
and appliances are expensed as incurred.
Interest, real estate taxes, and other carrying costs incurred during the
development period of communities under construction are capitalized and, upon
completion of the project, depreciated over the lives of the project.
<PAGE> 11
INFLATION
The Company leases apartments to its residents under lease terms generally
ranging from six to twelve months. Management believes that the short-term
lease contracts lessen the impact of inflation by giving the Company the
ability to adjust rental rates to market levels as leases expire. The impact
of recent low rates of inflation have not been significant to the Company's
operations, except for the positive effects that low inflation has had on
reducing the Company's interest cost. Inflation, inflationary expectations and
their effects on interest rates may affect the Company in the future by
changing the underlying value of the Company's real estate assets or by
affecting the Company's costs of financing operations.
IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS
In 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, "Earnings Per Share". This statement
is effective for financial statements for both interim and annual periods
ending after December 15, 1997. Management believes that the adoption of
Standard No. 128 will not have a material effect on its earnings per share
amounts.
<PAGE> 12
The following table sets forth certain information with respect to debt at
March 31, 1997. As of that date, 8,632 of the Company's operating apartment
units and the commercial properties were unencumbered:
<TABLE>
<CAPTION>
ENCUMBERED NUMBER OF INTEREST BALANCE AT
LENDER COMMUNITIES UNITS MATURITY RATE MARCH 31, 1997
------------------ ------------------------- ---------- ----------- -------------- ----------------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
CREDIT FACILITY DEBT
Wells Fargo Bank Unsecured 09/97(1) LIBOR + 1.25% $ 98,236
---------------
NOTES PAYABLE
5 year notes payable Unsecured 11/01 6.75% 50,000
7 year notes payable Unsecured 11/03 7.00% 50,000
10 year notes payable Unsecured 11/06 7.25% 50,000
---------------
150,000(2)
---------------
MORTGAGE NOTES PAYABLE
Lutheran Brotherhood Oasis Club 320 10/98 6.90% 9,031
Teachers Insurance Oasis Del Mar 560 12/02 8.46% 21,665
FNMA-MBS Oasis Greens 432 08/01 8.63% 12,000
FNMA Oasis Hills 184 10/03 7.50% 2,623
FNMA Oasis Landing 144 10/03 7.50% 3,956
Allstate Oasis Paradise I 368 04/08 7.10% 15,762
FNMA-MBS Oasis Plaza 300 08/01 8.63% 6,000
FNMA Oasis Rainbow 232 10/03 7.50% 6,366
FNMA Oasis Topaz 270 12/01 9.50% 6,520
FNMA Oasis Vintage I 336 10/03 7.50% 10,916
Teachers Insurance Various (3) 1,068 12/05 8.13% 39,850
--------- ---------------
4,214 134,689
--------- ---------------
TAX-EXEMPT BONDS
Bonds Oasis Park 224 01/26 7.29%(4) 7,651
Bonds Oasis Wexford 358 11/25 6.45% 15,974
--------- ---------------
582 23,625
--------- ---------------
Subtotal $ 4,796 $ 406,550
========= ===============
Unamortized discount on
notes payable (209)
--------- ---------------
Total 4,796 406,341
========= ===============
</TABLE>
(1) The Company has the option to extend the maturity of the credit
facility for one additional year.
(2) $149,791 net after discount.
(3) Communities collateralized are Oasis Bel Air, Oasis Canyon, Oasis Rose,
and Oasis Trails.
(4) $1,090 of the outstanding balance is taxable.
<PAGE> 13
CALCULATION OF FUNDS FROM OPERATIONS AND FUNDS AVAILABLE FOR DISTRIBUTION:
The Company considers Funds from Operations ("FFO") to be an appropriate
measure of performance of an equity REIT. FFO, as defined by the National
Association of Real Estate Investment Trusts ("NAREIT"), is defined as income
before gains (losses) on investments and extraordinary items (computed in
accordance with generally accepted accounting principles), plus real estate
depreciation and after adjustments for significant non-recurring items, if
any. Funds Available for Distribution ("FAD") is defined as FFO less
non-revenue generating capital expenditures and includes an "addback" to net
income for the amortization of deferred financing costs and depreciation of
non-real estate assets and other amortization. The Company believes that to
facilitate a clear understanding of the Company's operating results, FFO and
FAD should be examined in conjunction with net income and should not be
considered as alternatives to net income as an indication of the Company's
operating performance or as alternatives to cash flow as a measure of
liquidity.
The following table presents the calculation of FFO and FAD:
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
MARCH 31, 1997
---------------------
(Dollars in thousands)
<S> <C>
CALCULATION OF FUNDS FROM OPERATIONS
Net income $ 7,125
Depreciation on real estate assets 4,452
--------
FUNDS FROM OPERATIONS $ 11,577
========
COMPUTATION OF FUNDS AVAILABLE FOR DISTRIBUTION
Funds from Operations $ 11,577
Add:
Amortization of deferred financing costs 268
Depreciation of non-real estate assets 75
Other amortization 3
Less:
Non-revenue generating capital expenditures (781)
--------
FUNDS AVAILABLE FOR DISTRIBUTION $ 11,142
========
</TABLE>
NOTES TO CALCULATION OF FFO AND FAD
1 The Company generally expenses most recurring non-revenue generating
property expenditures, including carpet and appliance replacements,
except for certain expenditures on acquisition properties where major
improvements are required to bring the property up to the operating
standards of the Oasis portfolio.
2 Non-revenue generating capital expenditures at the communities consist
of replacements and equipment additions that do not enhance the revenue
generating capabilities of the communities.
3 Non-revenue generating capital expenditures at the corporate office
consist primarily of computer and office equipment additions.
<PAGE> 14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
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
None
<PAGE> 15
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.
OASIS RESIDENTIAL, INC.
/s/ Scott S. Ingraham
----------------------------------- 5-13-97
Scott S. Ingraham
President and Chief Operating Officer
/s/ John M. Clayton
----------------------------------- 5-13-97
John M. Clayton
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
/s/ Marianne K. Aguiar
----------------------------------- 5-13-97
Marianne K. Aguiar
Vice President and Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 3,275
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 812,615
<DEPRECIATION> 57,575
<TOTAL-ASSETS> 784,874
<CURRENT-LIABILITIES> 0
<BONDS> 149,791
0
42
<COMMON> 162
<OTHER-SE> 369,443
<TOTAL-LIABILITY-AND-EQUITY> 784,874
<SALES> 25,899
<TOTAL-REVENUES> 26,824
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 14,143
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,556
<INCOME-PRETAX> 7,125
<INCOME-TAX> 0
<INCOME-CONTINUING> 7,125
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,125
<EPS-PRIMARY> .29
<EPS-DILUTED> .29
</TABLE>
