<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR
15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-13136
HOME PROPERTIES OF NEW YORK, INC.
(Exact name of registrant as specified in its charter)
MARYLAND 16-1455126
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
850 Clinton Square, Rochester, New York 14604
(Address of principal executive offices) (Zip Code)
(716) 546-4900
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former
year, if changed since last report)
Indicate by check mark whether 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 practicable date:
Class of Common Stock Outstanding at July 31, 1997
$.01 par value 7,167,326
Page 1
<PAGE>
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
HOME PROPERTIES OF NEW YORK, INC.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1997 AND DECEMBER 31, 1996
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
1997 1996
---- ----
(Unaudited) (Note 1)
<S> <C> <C>
ASSETS
Real estate:
Land $ 28,480 $ 15,080
Buildings, improvements and equipment 282,879 246,693
-------- --------
311,359 261,773
Less: accumulated depreciation ( 44,948) ( 40,237)
-------- --------
Real estate, net 266,411 221,536
Cash and cash equivalents 1,210 1,523
Cash in escrows 7,018 5,637
Accounts receivable 2,728 2,185
Prepaid expenses 2,790 2,496
Deposit - 1,900
Advances to affiliates 14,748 5,898
Deferred financing costs 1,267 1,616
Other assets 6,543 5,840
-------- --------
Total assets $302,715 $248,631
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable $114,026 $104,915
Notes payable 151 261
Line of credit 12,905 -
Accounts payable 1,816 2,024
Accrued interest payable 579 601
Accrued expenses and other liabilities 1,954 2,525
Security deposits 3,679 2,545
-------- --------
Total liabilities 135,110 112,871
-------- --------
Minority interest 65,132 52,730
-------- --------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 10,000,000
shares authorized; no shares issued - -
Common stock, $.01 par value; 30,000,000
shares authorized; 7,102,927 and 6,144,498 shares
issued and outstanding at June 30, 1997 and
December 31, 1996, respectively 71 61
Excess stock, $.01 par value; 10,000,000
shares authorized; no shares issued - -
Additional paid-in capital 120,590 98,092
Distributions in excess of accumulated earnings ( 15,628) ( 13,062)
Treasury stock, at cost, 20,000 shares ( 426) -
Officer and director notes for stock purchases ( 2,134) ( 2,061)
-------- --------
Total stockholders' equity 102,473 83,030
-------- --------
Total liabilities and stockholders' equity $302,715 $248,631
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
Page 2
<PAGE>
<TABLE>
<CAPTION>
HOME PROPERTIES OF NEW YORK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
1997 1996
---- ----
<S> <C> <C>
Revenues:
Rental income $ 26,107 $ 19,735
Property other income 795 516
Other income 1,404 995
---------- ----------
Total revenues 28,306 21,246
---------- ----------
Expenses:
Operating and maintenance 13,513 10,554
General and administrative 792 709
Interest 4,725 4,245
Depreciation and amortization 4,757 3,806
---------- ----------
Total expenses 23,787 19,314
---------- ----------
Income before minority interest 4,519 1,932
Minority interest 1,374 341
---------- ----------
Net income $ 3,145 $ 1,591
========== ==========
Per share data:
Net income $.47 $.29
==== ====
Weighted average number of
shares outstanding 6,708,489 5,412,184
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
Page 3
<PAGE>
<TABLE>
<CAPTION>
HOME PROPERTIES OF NEW YORK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
1997 1996
---- ----
<S> <C> <C>
Revenues:
Rental income $ 13,528 $ 10,049
Property other income 359 263
Other income 577 394
---------- ----------
Total revenues 14,464 10,706
---------- ----------
Expenses:
Operating and maintenance 6,583 5,133
General and administrative 413 349
Interest 2,371 2,199
Depreciation and amortization 2,419 1,903
---------- ----------
Total expenses 11,786 9,584
---------- ----------
Income before minority interest 2,678 1,122
Minority interest 802 194
---------- ----------
Net income $ 1,876 $ 928
========== ==========
Per share data:
Net income $.27 $.17
==== ====
Weighted average number of
shares outstanding 7,034,910 5,414,574
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
Page 4
<PAGE>
<TABLE>
<CAPTION>
HOME PROPERTIES OF NEW YORK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(UNAUDITED, IN THOUSANDS)
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 3,145 $ 1,591
------- -------
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity in income of HP Management and Conifer 115 306
Realty
Income allocated to minority interest 1,374 341
Depreciation and amortization 5,187 4,087
Changes in assets and liabilities:
Other assets ( 1,137) ( 1,680)
Accounts payable and accrued liabilities 333 557
------- -------
Total adjustments 5,872 3,611
------- -------
Net cash provided by operating activities 9,017 5,202
------- -------
Cash flows used in investing activities:
Purchase of properties, net of mortgage notes assumed ( 18,233) ( 2,130)
Additions to properties ( 6,465) ( 2,703)
Advances to affiliates ( 14,369) ( 9,279)
Payments on advances to affiliates 5,519 10,158
Other ( 96) ( 35)
------- -------
Net cash used in investing activities ( 33,644) ( 3,989)
------- -------
Cash flows from financing activities:
Proceeds from sale of common stock 22,406 181
Purchase of Treasury Stock ( 426) -
Payments of mortgage and other notes payable ( 1,529) ( 660)
Proceeds from line of credit 36,100 13,630
Payments on line of credit ( 23,195) ( 8,300)
Additions to deferred loan costs ( 80) ( 74)
Additions to cash escrows ( 1,381) ( 675)
Dividends and distributions paid ( 7,581) ( 5,538)
Capital contribution to minority interest - 206
------- -------
Net cash provided by financing activities 24,314 ( 1,230)
------- -------
Net increase (decrease) in cash ( 313) ( 17)
Cash and cash equivalents:
Beginning of period 1,523 812
------- -------
End of period $ 1,210 $ 795
======= =======
Supplemental disclosure of cash flow information:
Cash paid for interest $ 4,447 $ 3,834
======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.
Page 5
<PAGE>
HOME PROPERTIES OF NEW YORK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
1. Unaudited Interim Financial Statements
The interim consolidated financial statements of Home
Properties of New York, Inc. (the "Company") are prepared
pursuant to the requirements for reporting on Form 10-Q.
Accordingly, certain disclosures accompanying annual
financial statements prepared in accordance with generally
accepted accounting principles are omitted. The year-end
balance sheet data was derived from audited financial
statements, but does not include all disclosures required by
generally accepted accounting principles. In the opinion of
management, all adjustments, consisting solely of normal
recurring adjustments, necessary for the fair presentation
of the consolidated financial statements for the interim
periods have been included. The current period's results of
operations are not necessarily indicative of results which
ultimately may be achieved for the year. The interim
consolidated financial statements and notes thereto should
be read in conjunction with the financial statements and
notes thereto included in the Company's Form 10-K, as filed
with the Securities and Exchange Commission on March 25,
1997.
2. Organization and Basis of Presentation
Organization
Home Properties of New York, Inc. (the " Company " ) was
formed in November 1993, as a Maryland corporation and is
engaged primarily in the ownership, management, acquisition
and development of residential apartment communities. On
August 4, 1994, the Company completed an initial public
offering ( " IPO " ) of 5,408,000 shares of common stock.
Net proceeds from the IPO of approximately $94,000 were
contributed to Home Properties of New York, L.P. (the "
Operating Partnership " ) in exchange for units representing
a 90.4% general partnership interest in the Operating
Partnership. The Operating Partnership acquired all of the
assets and assumed all of the liabilities of the Original
Properties (the predecessor to the Company) and in
connection therewith, (i) issued 575,375 units, representing
a 9.6% minority interest in the Operating Partnership, to
insiders of Home Leasing Corporation ( " HLC " ); (ii) paid
$30,600 in cash to the partners of the Original Properties;
(iii) prepaid approximately $29,600 of the approximately
$58,000 of mortgage indebtedness on the Original Properties;
and (iv) acquired four residential properties from
unaffiliated sellers for approximately $32,400 in cash and
the assumption of approximately $3,300 in existing mortgage
indebtedness.
On January 1, 1996, the Operating Partnership acquired the
operations of Conifer Realty, Inc. and Conifer Development,
Inc. ("Conifer") and purchased certain of Conifer's assets
for a total acquisition price of $15,434. The acquisition
was funded by issuing 486,864 Operating Partnership units
(UPREIT units, valued at $17.25 per unit), the assumption of
$6,801 of existing mortgage debt and $235 in cash paid to
outside partners. Additional consideration will be paid in
UPREIT units if development fee income exceeds target levels
over the five year period starting January 1, 1996. In
March 1997, the Company issued 19,153 UPREIT units valued at
$464 accounted for as additional goodwill. Conifer was
involved in the development and management of government-
assisted housing throughout New York State.
Page 6
<PAGE>
HOME PROPERTIES OF NEW YORK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
2. Organization and Basis of Presentation (Continued)
The acquisition has been accounted for using the purchase
method of accounting and, accordingly, the results of
operations are included from the date of acquisition
forward. The purchase price was allocated to three
communities containing 358 units valued at $10,173, general
partnership interests in 2,804 apartment units that Home
Properties will manage valued at $1,757, goodwill valued at
$3,348 and other assets valued at $156.
Basis of Presentation
The accompanying consolidated financial statements include
the accounts of the Company and its 69.2% (81.8% at June 30,
1996) general partnership interest in the Operating
Partnership.
All significant intercompany balances and transactions have
been eliminated in these consolidated financial statements.
3. Earnings Per Common Share
Earnings per common share amounts are based on the weighted
average number of common shares and common equivalent shares
(stock options) outstanding during the period. The
conversion of an Operating Partnership unit to common stock
will have no effect on earnings per common share as unit
holders and stockholders effectively share equally in the
net income of the Operating Partnership.
In February 1997, the Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards
No. 128 - Earnings per Share (SFAS No. 128), which will be
effective for the Company's fiscal year ended December 31,
1997. SFAS No. 128 is intended to simplify the earnings per
share computations and make them more comparable from
company to company. The adoption of SFAS No. 128 is not
expected to have a significant impact on the Company's
earnings per share as currently determined.
Page 7
<PAGE>
HOME PROPERTIES OF NEW YORK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
4. Pro Forma Financial Information
<TABLE>
<CAPTION>
Pro Forma Combined Statement of Operations
For the Six Months Ended June 30, 1997
------------------------------------------
Home
Properties Pro Forma Company
Historical Adjustment Pro Forma
---------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Rental income $26,107 $2,108 $ 28,215
Property other income 795 33 828
Other income 1,404 - 1,404
------- ------ ----------
Total Revenues 28,306 2,141 30,447
------- ------ ----------
Expenses:
Operating and Maintenance 13,513 1,076 14,589
General and administrative 792 25 817
Interest 4,725 341 5,066
Depreciation and amortization 4,757 202 4,959
------- ------ ----------
Total Expenses 23,787 1,644 25,431
------- ------ ----------
Income before minority interest $ 4,519 $ 497 5,016
======= ======
Minority Interest 1,703
----------
Net income $ 3,313
==========
Net income per common share $0.49
=====
Weighted average number of
shares outstanding 6,708,489
=========
</TABLE>
The pro forma information was prepared as if the
transactions related to the acquisition of Lake Grove
Apartments (on February 3, 1997) and Royal Gardens
Apartments (on May 28, 1997) had occurred on January 1,
1997.
Adjustments to the pro forma combined statements of
operations for the six months ended June 30, 1997, consist
principally of providing property net operating activity and
recording interest, depreciation and amortization from
January 1, 1997 to the acquisition date.
The Company completed an acquisition of Woodgate Place
Apartments, a 120 -unit apartment community in Rochester,
New York on June 30, 1997. The pro forma results for the
six months ended June 30, 1997 would not have been
materially different if the property had been acquired on
January 1, 1997. Therefore, no pro forma presentation has
been prepared reflecting this acquisition.
Page 8
<PAGE>
HOME PROPERTIES OF NEW YORK, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following discussion is based primarily on the consolidated
financial statements of Home Properties of New York, Inc. as of
June 30, 1997 and 1996 and for the six-month and three-month
periods then ended. This information should be read in
conjunction with the accompanying consolidated financial
statements and notes thereto.
Forward-Looking Statements
This discussion contains forward-looking statments. Although the
Company believes expectations reflected in such forward-looking
statements are based on reasonable assumptions, it can give no
assurance that its expectations will be achieved. Factors that
may cause actual results to differ include general economic and
local real estate conditions, other conditions that might affect
operating expenses, the timely completion of repositioning and
current development activities within anticipated budgets, the
actual pace of future acquisitions and developments, and continued
access to capital to fund growth.
Liquidity and Capital Resources
The Company's principal liquidity demands are expected to be
distributions to stockholders, capital improvements and repairs
and maintenance for the properties, acquisition of additional
properties, property development and debt repayment.
The Company intends to meet its short-term liquidity requirements
through net cash flows provided by operating activities and its
line of credit. The Company considers its ability to generate
cash to continue to be adequate to meet all operating
requirements and make distributions to its stockholders in
accordance with the provisions of the Internal Revenue Code, as
amended, applicable to REITs.
To the extent that the Company does not satisfy its long-term
liquidity requirements through net cash flows provided by
operating activities and the line of credit, it intends to
satisfy such requirements through the issuance of UPREIT units,
proceeds from the Dividend Reinvestment Plan, property debt
financing, or issuing additional common shares or shares of the
Company's preferred stock. As of February 28, 1997, the
Company's Form S-3 Registration Statement was declared effective
relating to the issuance of up to $100 million of shares of
common stock or other securities.
The Company's Board of Directors approved a stock repurchase
program under which the Company may repurchase up to one million
shares of its outstanding common stock. The Board's action did
not establish a target price or a specific timetable for
repurchase. During the three months ended June 30, 1997, the
Company repurchased 20,000 shares at a cost of $.426 million.
The Company has an unsecured line of credit of $35 million with
an available balance of $22.1 million at June 30, 1997.
Borrowings under the line of credit bear interest at 1.75% over
the one-month LIBOR rate. Accordingly, increases in interest
rates will increase the Company's interest expense and as a
result will effect the Company's results of operations and
financial condition. The line of credit expires on August 22,
1997. The Company is pursuing increasing the size of the line of
credit as well as having the interest rate reduced.
As of June 30, 1997, the weighted average rate of interest on
mortgage debt is 7.7% and the weighted average maturity is 6.5
years. Most of the debt is fixed rate, with only 13% variable
rate debt. This limits the exposure to changes in interest
rates, minimizing the effect on results of operations and
financial condition.
Page 9
<PAGE>
Management believes that net cash flows provided by operating
activities and the line of credit will be sufficient to satisfy
the Company's cash requirements for the next one to two years.
The following table sets forth information regarding the mortgage
indebtedness at June 30, 1997.
<TABLE>
<CAPTION>
Principal
Interest Balance as of
Rate as of Maturity June 30, 1997
Communities Location June 30, 1997 Date (000's)
- ----------- -------- ------------- -------- -------------
<S> <C> <C> <C> <C>
Fixed Rate
Royal Gardens Piscataway, NJ 8.00% 01/01/98 $ 5,094
Conifer Court Syracuse, NY 10.53% 11/01/99 408
Valley Park South Bethlehem, PA 8.50% 01/01/00 9,650
Perinton, Riverton and Rochester and
Waterfalls Buffalo, NY 6.75% (1) 08/01/00 12,036
Wedgewood Village Columbus, OH 6.00% (2) 07/31/01 6,250
Williamstowne Village Buffalo, NY 7.37% (3) 10/27/02 9,925
Brook Hill Rochester, NY 7.75% 11/01/02 4,981
Garden Village Buffalo, NY 7.75% 11/01/02 4,688
1600 Elmwood Rochester, NY 7.75% 11/01/02 5,470
Village Green Syracuse, NY 7.75% 11/01/02 4,884
Hamlet Court Rochester, NY 8.25% 05/01/03 1,822
Fairview Heights Ithaca, NY 7.71% (4) 11/30/03 4,025
Finger Lakes Manor Rochester, NY 7.71% (4) 11/30/03 4,025
Springcreek/Meadows Rochester, NY 6.75% (5) 08/01/04 3,223
Idylwood Buffalo, NY 8.625% 11/01/05 9,430
Royal Gardens Piscataway, NJ 7.50% 11/02/05 1,932
Raintree Island Buffalo, NY 8.50% 11/01/06 6,540
Woodgate Place Rochester, NY 7.865% 11/01/07 3,485
Conifer Village Syracuse, NY 7.20% 06/01/10 2,910
Village Green
(Fairways) Syracuse, NY 8.23% 10/01/19 4,549
Raintree Island Buffalo, NY 8.50% 05/01/20 1,209
Harborside Manor Syracuse, NY 8.92% 07/01/27 4,260
--------
110,796
Floating Rate
Westminster Syracuse, NY 30 day LIBOR+1.75% 12/31/97 3,230
--------
Subtotal 114,026
Line of Credit
Unsecured N/A 30 day LIBOR+1.75% On Demand 12,905
--------
$126,931
========
</TABLE>
(1) Fixed through August 4, 1999, then prime +.5% until maturity.
(2) Fixed through August 4, 1999, then 5-year T-bill +2% until maturity.
(3) Fixed through November 1, 2000, then prime +.5% until maturity.
(4) Fixed through April 30, 2000, then prime +.5% until maturity.
(5) Fixed through July 31, 1997, then 175 basis points above three year
treasuries.
Page 10
<PAGE>
Results of Operations
Comparison of six months ended June 30, 1997 to the same period
in 1996
The Company had 23 apartment communities with 6,008 units, one
small ancillary convenience shopping area and a 202 site
manufactured home community which were owned during both the six
and three-month periods being presented (the "Core Properties").
The Company has acquired nine apartment communities with 2,206
units from March 6, 1996 through June 30, 1997 (the "Acquired
Communities"). The inclusion of these Acquired Communities
generally accounted for the significant changes in operating
results for the six and three months ended June 30, 1997.
Of the $6,372,000 increase in rental income, $5,591,000 is
attributable to the Acquired Communities. The balance of this
increase, which is from the Core Properties, was the result of an
increase of 3.4% in weighted average rental rates, plus an
increase in occupancy from 94.1% to 94.6%.
Of the $279,000 increase in property other income, $119,000 is
attributable to the Acquired Communities. Most of the balance of
this increase is from the Company's share of income/loss from
various general partnership interests.
Other income increased by $409,000, the majority from an increase
in interest income from advances to affiliates (see detail
presented on page 13).
Of the $2,959,000 increase in operating and maintenance expenses,
$2,761,000 is attributable to the Acquired Communities. The
balance for the Core Properties represents a 1.9% increase over
1996. Increased utility costs, 5.9% higher than the previous
year, accounted for most of this increase. Areas where the
Company experienced reduced costs included advertising, insurance
and snow removal costs.
Comparison of three months ended June 30, 1997 to the same period
in 1996
Of the $3,479,000 increase in rental income, $3,084,000 is
attributable to the Acquired communities. The balance of this
increase, which is from the Core Properties, was the result of an
increase of 3.1% in weighted average rental rates, plus an
increase in occupancy from 94.7% to 95.4%.
Of the $96,000 increase in property other income, $62,000 is
attributable to the Acquired Communities. The balance of this
increase is from the Company's share of income/loss from various
general partnership interests.
Other income increased by $183,000, the majority from an increase
in interest income from advances to affiliates (see detail
presented on page 13).
Of the $1,450,000 increase in operating and maintenance expenses,
$1,396,000 is attributable to the Acquired Communities. The
balance for the Core Properties represents a 1.1% increase over
1996. The major areas of increase in the Core Properties
occurred in personnel and office/telephone. Helping offset this
was a 60% reduction to insurance and a 4% reduction to repairs
and maintenance.
Page 11
<PAGE>
Funds From Operations
Management considers funds from operations to be an appropriate
measure of performance of an equity REIT. The National
Association of Real Estate Investment Trusts ("NAREIT") revised
White Paper definition of funds from operations is income (loss)
before gains (losses) from the sale of property and extraordinary
items, before minority interest in the Operating Partnership,
plus real estate depreciation. Management believes that in order
to facilitate a clear understanding of the combined historical
operating results of the Company, funds from operations should be
considered in conjunction with net income as presented in the
consolidated financial statements included elsewhere herein.
Funds from operations does not represent cash generated from
operating activities in accordance with generally accepted
accounting principles and is not necessarily indicative of cash
available to fund cash needs. Funds from operations should not
be considered as an alternative to net income as an indication of
the Company's performance or to cash flow as a measure of
liquidity.
The calculation of funds from operations for the previous six
quarters are presented below:
<TABLE>
<CAPTION>
June 30 March 31 Dec. 31 Sept. 30 June 30 March 31
1997 1997 1996 1996 1996 1996
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net income $ 1,876 $ 1,269 $ 1,215 $ 1,341 $ 928 $ 663
Minority interest 802 572 271 285 194 147
Extraordinary item - - - - - -
Depreciation from real property 2,389 2,305 2,241 1,955 1,876 1,870
Depreciation from real property
from unconsolidated entities 76 4 183 69 69 69
(Gain) Loss from sale of property - - - ( 3) 11 -
-------- ------- ------- ------- ------- -------
FFO $ 5,143 $ 4,150 $ 3,910 $ 3,647 $ 3,078 $ 2,749
======== ======= ======= ======= ======= =======
Weighted average common shares/
units outstanding 10,139.1 9,254.7 7,168.4 6,849.4 6,617.6 6,612.8
======== ======= ======= ======= ======= =======
</TABLE>
All REITs may not be using the strict White Paper definition for
new FFO. Accordingly, the above presentation may not be
comparable to other similarly titled measures of FFO of other
REITs.
Inflation
Substantially all of the leases at the communities are for a term
of one year or less, which enables the Company to seek increased
rents upon renewal of existing leases or commencement of new
leases. These short-term leases minimize the potential adverse
effect of inflation on rental income, although residents may
leave without penalty at the end of their lease terms and may do
so if rents are increased significantly.
Declaration of Dividend
On August 5, 1997, the Board of Directors approved a dividend of
$.43 per share for the period from April 1, 1997 to June 30,
1997. This is the equivalent of an annual distribution of $1.72
per share. The dividend is payable August 26, 1997 to
shareholders of record on August 15, 1997.
Page 12
<PAGE>
Subsequent Event
On July 1, 1997, the Company purchased Mid-Island Estates, a 232-
unit community located in Bay Shore, Long Island, New York. The
purchase price of $10.7 million included assumption of a $6.7
million first mortgage with interest fixed at rates ranging from
7.25% to 7.75% over the next ten years, with the balance paid
with proceeds from the line of credit. In addition, on July
31,1997, the Company announced that it had entered into a
contract to purchase a portfolio of 1,750 apartment units in
twelve communities located in suburban markets on the west side
of Philadelphia, Pennsylvania. The total purchase price of $63
million plus closing costs will be paid in the form of assumed
debt, cash and UPREIT units. The transaction is subject to
certain conditions and approvals.
Other Income
Other income for the six and three-months ended June 30, 1997 and
1996 is summarized as follows:
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30 June 30
------------------ ------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Management fees $ 248 $261 $132 $ 74
Development fees 606 566 253 151
Interest income 595 303 330 171
Other 70 29 54 11
Management Companies ( 115) (164) (192) ( 13)
------ ---- ---- ----
$1,404 $995 $577 $394
====== ==== ==== ====
</TABLE>
Certain property management, leasing and development activities
are performed by Home Properties Management, Inc. and Conifer
Realty Corporation (the "Management Companies"). The Operating
Partnership owns non-voting common stock in the Management
Companies which entitles the Operating Partnership to receive 99%
of the economic interest in the Management Companies. The
Company's share of income from the Management Companies for the
six and three months ended June 30, 1997 and 1996 is summarized
as follows:
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30 June 30
-------------------- --------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Management fees $ 1,432 $ 1,476 $ 694 $ 764
Development fees 924 657 405 400
Miscellaneous 45 47 20 24
General and administrative ( 2,329) ( 2,248) ( 1,211) ( 1,139)
Other expenses ( 188) ( 98) ( 102) ( 62)
------- ------- ------- -------
Net income ($ 116) ($ 166) ($ 194) ($ 13)
======= ======= ======= =======
Company's share ($ 115) ($ 164) ($ 192) ($ 13)
======= ======= ======= =======
</TABLE>
Page 13
<PAGE>
PART II - OTHER INFORMATION
HOME PROPERTIES OF NEW YORK, INC.
Item 6. Exhibits and Reports or Form 8-K
(a) Exhibits: There are no exhibits which are filed
with, or incorporated by reference, to this
report.
(b) Reports or Form 8-K:
* Form 8-K was filed on June 6, 1997, date of report
February 3, 1997, with respect to an item 2 disclosure
concerning the acquisition of two multifamily
residential properties. In addition, there was an item
5 disclosure concerning shareholder approval at the
May 6, 1997 annual meeting of an amendment to the
Company's Stock Benefit Plan increasing the number of
shares issuable to non-employee directors; the awarding
of non-employee directors options to purchase 3,500
shares; and approval of the issuance of up to 5,000,000
shares of the Company's common stock in one or more
private placements or public offerings. The Company
has no current arrangements for the sale of the
additional shares.
* Form 8-K was filed on July 7, 1997, date of report
August 6,1996 relative to increasing the number of
shares of the Company's common stock available for cash
purchases under the Company's Dividend Reinvestment,
Stock Purchase, Resident Stock Purchase and Employee
Stock Purchase Plan.
* Form 8-K was filed on August 11, 1997, date of
report February 3, 1997, with respect to providing
financial statements relative to the acquisition of
Lake Grove Apartments and Royal Gardens Apartments.
Page 14
<PAGE>
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.
HOME PROPERTIES OF NEW YORK, INC.
(Registrant)
Date: August 13, 1997
--------------------------------------
By: /s/ David P. Gardner
--------------------------------------
David P. Gardner
Vice President
Chief Financial Officer and Treasurer
Date: August 13, 1997
--------------------------------------
By: /s/ Norman Leenhouts
--------------------------------------
Norman Leenhouts
Chairman and Co-Chief
Executive Officer
Page 15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
HOME PROPERTIES OF NEW YORK, INC.'S FINANCIAL STATEMENTS CONTAINED IN ITS
JUNE 30, 1997 FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 1,210
<SECURITIES> 0
<RECEIVABLES> 2,728
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 311,359
<DEPRECIATION> 44,948
<TOTAL-ASSETS> 302,715
<CURRENT-LIABILITIES> 0
<BONDS> 114,026
0
0
<COMMON> 71
<OTHER-SE> 102,402
<TOTAL-LIABILITY-AND-EQUITY> 302,715
<SALES> 0
<TOTAL-REVENUES> 28,306
<CGS> 0
<TOTAL-COSTS> 19,062
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,725
<INCOME-PRETAX> 4,519
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,145
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,145
<EPS-PRIMARY> .47
<EPS-DILUTED> .47
</TABLE>
