November 13, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Re: Boston Financial Apartment Properties Limited Partnership
Report on Form 10-Q for Quarter Ended September 30, 1996
File No. 33-78152
Dear Sir/Madam:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Very truly yours,
/s/Marie D. Reynolds
Marie D. Reynolds
Assistant Controller
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1996 Commission file number 33-78152
Boston Financial Apartment Properties Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts 04-3228655
- ---------------------------------------------- ----------------------
State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization
101 Arch Street, Boston, Massachusetts 02110-1106
- -------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-3911
-------------------
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 .
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
TABLE OF CONTENTS
PART I FINANCIAL STATEMENTS Page No.
Item 1. Financial Statements
Balance Sheets - September 30, 1996 (Unaudited)
and December 31, 1995 1
Statements of Operations (Unaudited) - For the Three
and Nine Months Ended September 30, 1996 and 1995 2
Statements of Changes in Partners' Equity
(Unaudited) - For the Nine Months Ended September 30, 1996 3
Statements of Cash Flows (Unaudited) - For the Nine
Months Ended September 30, 1996 and 1995 4
Notes to the Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II - OTHER INFORMATION
Items 1-6 7
SIGNATURE 8
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
(Unaudited)
Assets
<S> <C> <C>
Fixed assets, at cost:
Land $2,810,958 $2,810,958
Buildings and improvements 8,447,473 8,446,775
Office equipment 2,540 2,540
------------ ------------
11,260,971 11,260,273
Less accumulated depreciation (638,302) (410,974)
------------ ------------
10,622,669 10,849,299
------------ ------------
Other assets:
Cash and cash equivalents 126,845 209,851
Tenant security deposits (restricted) 54,595 52,521
Escrow deposits 220,617 292,356
Reserve for replacement 250,000 250,000
Other assets 20,129 8,325
Organizational costs, net of accumulated amortization
of $13,774 and $9,006 in 1996 and 1995, respectively 18,012 22,780
------------ ------------
690,198 835,833
------------ ------------
Total Assets $ 11,312,867 $ 11,685,132
============ ============
Liabilities and Partners' Equity
Liabilities:
Accounts payable and accrued expenses $ 235,793 $ 310,783
Deferred rental revenue 2,162 4,926
Due to affiliates - 5,636
Tenant security deposits 43,298 51,878
------------ ------------
Total Liabilities 281,253 373,223
------------ ------------
Partners' Equity
General Partner 6,241 2,723
Limited Partners 11,025,373 11,309,186
------------ ------------
Total Partners' Equity 11,031,614 11,311,909
------------ ------------
Total Liabilities and Partners' Equity $ 11,312,867 $ 11,685,132
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Nine Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------------------ ----------------- ------------------ -----------------
<S> <C> <C> <C> <C>
Revenue:
Rental $ 372,878 $ 379,118 $ 1,146,466 $ 1,147,801
Interest and other 5,298 8,173 21,100 20,246
------------- ------------- ------------- --------------
Total Revenue 378,176 387,291 1,167,566 1,168,047
------------- ------------- ------------- -------------
Expenses:
Property operating 132,071 96,679 304,904 247,416
Depreciation and amortization 77,364 139,557 232,096 412,312
Real estate taxes 73,538 73,035 221,356 219,255
Interest - affiliate - - - 27,216
Management fee - affiliate 18,808 19,347 57,445 57,961
Interest and financing fees - - - 13,950
------------- ------------- ------------- --------------
Total Expenses 301,781 328,618 815,801 978,110
------------- ------------- ------------- --------------
Net Income $ 76,395 $ 58,673 $ 351,765 $ 189,937
============= ============= ============= ==============
Net Income allocated:
General Partner $ 764 $ 587 $ 3,518 $ 1,899
Limited Partners 75,631 58,086 348,247 188,038
------------- ------------- ------------- --------------
$ 76,395 $ 58,673 $ 351,765 $ 189,937
============= ============= ============= ==============
Net income per Limited
Partnership Unit
(260 Units for the three and nine months ended September 30, 1996 and for the
three months ended September 30, 1995. Weighted average of 245 Units for the
nine months ended
September 30, 1995.) $ 291 $ 223 $ 1,339 $ 768
====== ====== ======= ======
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' EQUITY
(Unaudited)
For the Nine Months Ended September 30, 1996
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
<S> <C> <C> <C>
Balance at December 31, 1995 $ 2,723 $ 11,309,186 $ 11,311,909
Cash distributions - (632,060) (632,060)
Net Income 3,518 348,247 351,765
---------- ------------- -------------
Balance at September 30, 1996 $ 6,241 $ 11,025,373 $ 11,031,614
========== ============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
------------- ---------
<S> <C> <C>
Net cash provided by operating activities $ 478,013 $ 59,186
----------- ------------
Cash flows from investing activities:
Purchases of real estate assets (698) (225,353)
Escrow deposits - 1,740,000
Real estate tax escrow 71,739 -
Replacement reserves deposits - (250,000)
----------- ------------
Net cash provided by investing activities 71,041 1,264,647
----------- ------------
Cash flows from financing activities:
Proceeds from sale of partnership interests - 5,400,000
Syndication costs - (464,138)
Repayment of note payable - (3,370,801)
Repayment of note payable to affiliate - (2,140,000)
Distributions (632,060) (495,355)
----------- ------------
Net cash used for financing activities (632,060) (1,070,294)
----------- ------------
Net increase (decrease) in cash and cash equivalents (83,006) 253,539
Cash, beginning of period 209,851 158,108
----------- ------------
Cash, end of period $ 126,845 $ 411,647
=========== ============
Supplemental disclosure to cash flow activity:
Cash paid for interest $ - $ 129,157
=========== ============
The accompanying notes are an integral part of these financial statements
</TABLE>
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
Notes to the Financial Statements (Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Partnership's 10-K for the year
ended December 31, 1995. In the opinion of management, these financial
statements include all adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the Partnership's financial position
and results of operations. The results of operations for the periods may not be
indicative of the results to be expected for the year. Certain reclassifications
have been made to prior period financial statements to conform to current period
classifications.
No significant events have occurred subsequent to fiscal year 1995, and no
material contingencies exist which require disclosure in this interim report per
Regulation S-X, Rule 10-01, Paragraph (a)(5).
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Liquidity and Capital Resources
At September 30, 1996, the Partnership had cash and cash equivalents of
$126,845, compared with $209,851 at December 31, 1995. The decrease in cash and
cash equivalents is primarily attributable to cash distributions paid to Limited
Partners, partially offset by cash provided by operating activities.
As of September 30, 1996, the Partnership had accounts payable and accrued
expenses of $235,793 compared to $310,783 at December 31, 1995. This decrease is
primarily attributable to the payment of 1995 real estate taxes during the first
quarter of 1996.
As of September 30, 1996, the Partnership has paid distributions to Limited
Partners totalling $632,060. Of this amount $234,780 is related to the quarter
ending December 31, 1995. Limited Partners will potentially receive an 8% return
on their investment during 1996.
Results of Operations
For the three and nine months ended September 30, 1996, Partnership operations
resulted in net income of $76,395 and $351,765, respectively, compared to net
income of $58,673 and $189,937, for the respective periods in 1995. At September
30, 1996 and 1995, the property's occupancy rates were 93% and 95%,
respectively. The increase in net income for the 1996 periods is due primarily
to interest and amortization expense incurred in 1995 related to syndication
activity.
During the 1995 periods, the Partnership incurred interest and amortization
expenses in order to finance a portion of the purchase price of the property.
The loans were repaid in 1995 from the proceeds of Unit sales.
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended September 30, 1996.
<PAGE>
BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
SIGNATURE
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.
DATED November 13, 1996 BOSTON FINANCIAL APARTMENT PROPERTIES
Limited Partnership
By: BF Growth Properties Limited Partnership,
its General Partner
By: BF Growth Properties, Inc.
its General Partner
/s/Vincent J. Costantini
Vincent J. Costantini
Vice President and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 126,845
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 20,129
<PP&E> 11,260,971
<DEPRECIATION> 638,302
<TOTAL-ASSETS> 11,312,867<F1>
<CURRENT-LIABILITIES> 281,253<F2>
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 11,031,614
<TOTAL-LIABILITY-AND-EQUITY> 11,312,867
<SALES> 0
<TOTAL-REVENUES> 1,167,566<F3>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 815,801<F4>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 351,765
<EPS-PRIMARY> 1,339
<EPS-DILUTED> 0
<FN>
<F1> Includes tenant security deposits of $54,595, Escrow deposits of $220,617,
Replacement reserves of $250,000, and Organizational costs, net of $18,012.
<F2>Includes Accounts payable and accrued expenses $235,793, Deferred rental
revenue $2,162, and Tenant security deposits of $43,298. <F3>Represents Rental
revenue of $1,146,466 and Interest and other revenue of $21,100. <F4>Includes
$232,906 of Depreciation and amortization expense, $221,356 of Real estate
taxes, $304,904 of Property operating and $57,445 of Management fees.
</FN>
</TABLE>
