<PAGE> 1
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, 1996.
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _____________ to
____________.
0-24816
(Commission File Number)
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 23-2610414
(State of other jurisdiction (IRS Employer Identification No.)
incorporated or organization)
230 S. Broad Street, Mezzanine
Philadelphia, Pennsylvania 19102
(Address of principal executive offices)
Registrant's telephone number: 215-790-4700
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 units of limited partnership interest outstanding as of
the latest practicable date.
Units of Limited Partnership Interest 100,000 units
(Class) (Outstanding at August 9, 1996)
1
<PAGE> 2
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
INDEX
<TABLE>
<CAPTION>
Page No.
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Combined Balance Sheets
June 30, 1996 and December 31, 1995 3
Combined Statements of Operations and Changes in
Partners' Deficit
Three and Six Months ended June 30, 1996 and 1995 4
Combined Statements of Cash Flows
Six Months ended June 30, 1996 and 1995 5
Notes to Combined Financial Statements 6
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition 7
PART II. OTHER INFORMATION
Item 6. Reports on Form 8-K 9
SIGNATURES 10
</TABLE>
2
<PAGE> 3
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(a limited partnership)
Combined Balance Sheets
(in thousands)
<TABLE>
<CAPTION>
===============================================================================
June 30, December 31,
1996 1995
----------------------------
(Unaudited)
<S> <C> <C>
Assets
- -------------------------------------------------------------------------------
Rental property, at cost:
Land $ 18,749 $ 18,794
Buildings 260,568 259,904
- -------------------------------------------------------------------------------
279,317 278,698
Less accumulated depreciation 113,871 109,753
- -------------------------------------------------------------------------------
Rental property, net 165,446 168,945
- -------------------------------------------------------------------------------
Cash and cash equivalents 537 678
Restricted cash 1,234 1,222
Tenant accounts receivable, net of allowance
of $20 - 1996 and 1995 630 682
Unbilled rent receivable 1,532 1,714
Tenant leasing costs 374 345
Accounts receivable and other assets 538 454
Advances to the Pension Group 1,109 2,199
===============================================================================
Total assets $ 171,400 $ 176,239
===============================================================================
Liabilities and Partners' Deficit
- -------------------------------------------------------------------------------
Wraparound mortgages payable $ 463,920 $ 467,621
Less unamortized discount based on imputed
interest rate of 12% 269,257 273,786
- -------------------------------------------------------------------------------
Wraparound mortgages payable less
unamortized discount 194,663 193,835
Accounts payable and other liabilities 3,512 2,206
Finance lease obligation 2,650 2,650
Deposit on sale of property 2,440 2,440
- -------------------------------------------------------------------------------
Total liabilities 203,265 201,131
Partners' deficit (31,865) (24,892)
- -------------------------------------------------------------------------------
Total liabilities and partners' deficit $ 171,400 $ 176,239
===============================================================================
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
3
<PAGE> 4
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(a limited partnership)
Combined Statements of Operations and Changes in Partners' Deficit
(unaudited) (in thousands, except per unit data)
<TABLE>
<CAPTION>
===================================================================================================================================
Three months Six months
ended ended
June 30, June 30,
----------------------------------------------------------------------
1996 1995 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Income:
Rental income $6,269 $6,027 $12,096 $12,490
Other charges to tenants 1,510 1,882 3,244 3,470
Interest income 40 83 97 180
- -----------------------------------------------------------------------------------------------------------------------------------
Total income 7,819 7,992 15,437 16,140
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Interest expense 5,730 6,010 11,443 12,026
Real estate taxes 1,595 1,135 3,152 2,339
Management fees and leasing commissions 362 353 728 713
Common area maintenance expenses 644 565 1,404 1,215
Ground rent 137 112 324 273
Repairs and maintenance 108 93 274 240
General and administrative 287 135 523 332
Depreciation and amortization 2,205 2,219 4,403 4,453
- -----------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 11,068 10,622 22,251 21,591
- -----------------------------------------------------------------------------------------------------------------------------------
Operating loss (3,249) (2,630) (6,814) (5,451)
Other expenses:
Net loss on disposition of properties 0 (66) (159) (78)
- -----------------------------------------------------------------------------------------------------------------------------------
Loss before extraordinary items (3,249) (2,696) (6,973) (5,529)
Extraordinary items:
Forgiveness of wraparound mortgages payable
on dispositions and foreclosures
of properties 0 0 0 0
- -----------------------------------------------------------------------------------------------------------------------------------
Net loss (3,249) (2,696) (6,973) (5,529)
Partners' deficit:
Beginning of period (28,616) (17,112) (24,892) (14,279)
- -----------------------------------------------------------------------------------------------------------------------------------
End of period ($31,865) ($19,808) ($31,865) ($19,808)
===================================================================================================================================
Per Unit data:
Operating loss ($32.49) ($26.30) ($68.14) ($54.51)
===================================================================================================================================
Net loss ($32.49) ($26.96) ($69.73) ($55.29)
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
4
<PAGE> 5
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(a limited partnership)
Combined Statements of Cash Flows (unaudited)
(in thousands)
<TABLE>
<CAPTION>
======================================================================================================================
Six months
ended
June 30,
--------------------------------------
1996 1995
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net loss ($6,973) ($5,529)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 4,301 4,385
Amortization of discount 4,528 4,175
Net loss on disposition of properties
including forgiveness of wraparound
mortgages payable 159 0
Decrease (increase) in tenant accounts
receivable 52 (213)
Decrease in unbilled rent receivable, net 182 111
Increase in tenant leasing costs (29) (119)
Decrease (increase) in accounts receivable
and other assets (84) 39
Increase (decrease) in accounts payable
and other liabilities 1,306 (19)
- ----------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 3,442 2,830
- ----------------------------------------------------------------------------------------------------------------------
Cash flows provided by (used in) financing activities:
Payments on wraparound mortgages (3,701) (3,597)
Advances to the Pension Group 1,090 1,037
- ----------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (2,611) (2,560)
- ----------------------------------------------------------------------------------------------------------------------
Cash flows provided by (used in) investing activities:
Disposition of properties 167 0
Improvements to rental property (1,127) (193)
- ----------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (960) (193)
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash (129) 77
Cash:
Beginning of period 1,900 2,385
======================================================================================================================
End of period $1,771 $2,462
======================================================================================================================
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
5
<PAGE> 6
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(A LIMITED PARTNERSHIP)
Notes to Combined Financial Statements (Unaudited)
June 30, 1996
(in thousands)
Note 1: Basis of Presentation
The accompanying unaudited combined financial statements have been prepared in
accordance with the instructions to Form 10-Q and therefore do not include all
information and footnotes necessary for presentation of financial position,
results of operations, and cash flows required by generally accepted accounting
principles for complete financial statements. The information furnished reflects
all adjustments (consisting of normal recurring adjustments) which are, in the
opinion of management, necessary for a fair summary of the financial position,
results of operations and cash flows for the interim periods presented. The
financial statements should be read in conjunction with the financial statements
and notes thereto filed with Form 10K for the years ended December 31, 1995 and
1994.
Note 2: Formation and Description of Business
National Property Analysts Master Limited Partnership (NPAMLP), a limited
partnership, was formed effective January 1, 1990. NPAMLP is owned 99% by the
limited partners and 1% by the general partner, EBL&S, Inc.
The properties included in NPAMLP consist primarily of regional shopping centers
or malls with national retailers as anchor tenants. The ownership and operations
of these properties have been combined in NPAMLP.
The combined financial statements include the accounts of partnerships that
contributed their interests to NPAMLP and certain partnerships whose partnership
interests were not contributed as of the effective date of NPAMLP's formation on
January 1, 1990, but were allocated their interests in NPAMLP as if they were
contributed on January 1, 1990 (the sharing partnerships).
6
<PAGE> 7
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(A LIMITED PARTNERSHIP)
Management's Discussion and Analysis of Results of Operations and Financial
Condition
Results of Operations
NPAMLP owned 59 properties at June 30, 1996 versus 61 at June 30, 1995. In
January 1996 the Boone, Iowa property was sold. In July 1995, the Twin Oaks,
Missouri property was exchanged for the property in Lake Mary, Florida in a
transaction structured to be a non-taxable event under Section 1031 of the
Internal Revenue Code. Income decreased for the three and six month periods
ended June 30, 1996 versus June 30, 1995 by $173,000 and $703,000, respectively.
The decrease for the three and six month periods ended June 30, 1996 versus June
30, 1995 was primarily due to decreased rental income arising from property
dispositions and tenant terminations.
Operating expenses increased for the three and six month periods ended June 30,
1996 versus June 30, 1995 by $446,000 and $660,000, respectively. The increase
in operating expenses was primarily due to increased real estate taxes, common
area maintenance expenses, and general and administrative expenses for the six
month period ended June 30, 1996 versus June 30, 1995. The increase in common
area maintenance expenses was primarily due to higher snow removal expenses. The
increase in general and administrative expenses was primarily due to an increase
in legal fees.
Net loss on disposition of properties for the three and six month periods ended
June 30, 1996 versus June 30, 1995 decreased by $66,000 and increased by
$81,000, respectively. The variance was primarily due to the disposition of the
Boone, Iowa property in January 1996, which produced a net loss on disposition
of properties of $159,000 for the three and six months ended June 30, 1996.
7
<PAGE> 8
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(A LIMITED PARTNERSHIP)
Management's Discussion and Analysis of Results of Operations and Financial
Condition
Liquidity and Capital Resources
Net cash provided by operations for the three and six month periods ended June
30, 1996 was $3,442,000. Payments on mortgages and other financing activities
and improvements to rental property used $2,611,000 and $960,000, respectively.
As a result of the above, there was a $129,000 decrease in cash for the six
months ended June 30, 1996.
As of June 30, 1996, the underlying mortgages were current for all the
Properties except for the properties located in Ardmore, Oklahoma, Temple
Terrace, Florida and Fond du Lac, Wisconsin. The second mortgage loan on the
Ardmore property is significantly past due and there are no plans to bring this
loan current. The MLP has not received any notice from the holder of this loan
in five years. As of June 30, 1996, the mortgage loan on the Temple Terrace
property is delinquent seven months. The lender has declared a default with
respect to this mortgage and has commenced a foreclosure action. In February
1996 the MLP entered into a contract for sale of the Temple Terrace property.
The MLP intends to utilize proceeds from the sale to satisfy the delinquent
amount. The underlying second mortgage on the Fond du Lac property matured in
March 1996. The MLP is currently engaged in negotiations with this lender for an
extension.
In February 1996 the MLP negotiated a commitment from a bank for a $1,000,000
line of credit. Proceeds from the line of credit will be utilized for capital
and tenant improvements to the Properties.
As of June 30, 1996, NPAMLP was obligated for approximately $338,000 of capital
commitments which are primarily for roof replacement.
8
<PAGE> 9
PART II
Item 6(B). Reports on Form 8-K
The registrant was not required to file any current reports on
Form 8-K during the three months ended June 30, 1996.
9
<PAGE> 10
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
National Property Analysts Master Limited
Partnership
------------------------------------------------------
(Registrant)
Date: August 9, 1996
------------------------------------------------------
By: EBL&S, Inc., its sole general partner
--------------------------------------------------
By: /s/ Edward B. Lipkin
--------------------------------------------------
Name: Edward B. Lipkin
Title: President and Principal Financial Officer
10
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1771
<SECURITIES> 0
<RECEIVABLES> 650
<ALLOWANCES> 20
<INVENTORY> 0
<CURRENT-ASSETS> 2401
<PP&E> 279317
<DEPRECIATION> 113871
<TOTAL-ASSETS> 171400
<CURRENT-LIABILITIES> 3512
<BONDS> 194663
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 171400
<SALES> 0
<TOTAL-REVENUES> 7819
<CGS> 0
<TOTAL-COSTS> 3133
<OTHER-EXPENSES> 2205
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5730
<INCOME-PRETAX> (3249)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3249)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3249)
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
