<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 September 30, 1997.
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
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 23-2610414
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(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
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Indicate the number of units of limited partnership interest outstanding as of
the latest practicable date.
Units of Limited Partnership Interest 100,000 units
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(Class) (Outstanding at November 12, 1997)
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NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
INDEX
<TABLE>
<CAPTION>
Page No.
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<S> <C>
PART I. FINANCIAL INFORMATION
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Item 1. Financial Statements
Combined Balance Sheets
September 30, 1997 and December 31, 1996 3
Combined Statements of Operations and Changes in
Partners' Deficit
Three and Nine Months ended September 30, 1997 and 1996 4
Combined Statements of Cash Flows
Nine Months ended September 30, 1997 and 1996 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
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Item 6. Reports on Form 8-K 9
SIGNATURES 10
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2
<PAGE> 3
NATIONAL PROPERTY ANALYSTS MASTER LIMITED PARTNERSHIP
(A LIMITED PARTNERSHIP)
COMBINED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
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SEPTEMBER 30, DECEMBER 31,
1997 1996
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(UNAUDITED)
ASSETS
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<S> <C> <C>
Rental property, at cost:
Land $17,970 $18,663
Buildings 256,642 258,922
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274,612 277,585
Less accumulated depreciation 120,276 115,711
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Rental property, net 154,336 161,874
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Cash and cash equivalents 955 867
Restricted cash 1,854 2,030
Tenant accounts receivable, net of allowance
of $20 - 1997 and 1996 595 853
Unbilled rent receivable 1,241 1,440
Tenant leasing costs 216 323
Accounts receivable and other assets 822 910
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Total assets $160,019 $168,297
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LIABILITIES AND PARTNERS' DEFICIT
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Wraparound mortgages payable $454,038 $460,856
Less unamortized discount based on imputed
interest rate of 12% 257,300 263,928
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Wraparound mortgages payable less
unamortized discount 196,738 196,928
Due to the Pension Group 3,698 1,170
Other borrowings 593 235
Deferred revenue 219 248
Accounts payable and other liabilities 2,929 2,997
Finance lease obligation 2,650 2,650
Deposit on sale of property 2,440 2,440
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Total liabilities 209,267 206,668
Partners' deficit (49,248) (38,371)
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Total liabilities and partners' deficit $160,019 $168,297
===================================================================================================================================
</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>
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THREE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
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1997 1996 1997 1996
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<S> <C> <C> <C> <C>
Income:
Rental income $5,955 $5,640 $17,696 $17,736
Other charges to tenants 1,909 1,676 5,754 4,920
Interest income 31 43 105 140
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Total income 7,895 7,359 23,555 22,796
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Operating expenses:
Interest expense 6,101 5,726 17,864 17,169
Real estate taxes 1,660 1,665 4,679 4,817
Management fees and leasing commissions 335 334 1,044 1,062
Common area maintenance expenses 500 561 1,871 1,965
Ground rent 155 142 479 466
Repairs and maintenance 299 177 543 451
General and administrative 193 118 452 641
Depreciation and amortization 2,172 2,217 6,634 6,620
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Total operating expenses 11,415 10,940 33,566 33,191
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Operating loss (3,520) (3,581) (10,011) (10,395)
Other expenses:
Net gain (loss) on disposition of properties (1,452) 613 (866) 454
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Loss before extraordinary items (4,972) (2,968) (10,877) (9,941)
Extraordinary items:
Forgiveness of wraparound mortgages payable
on dispositions and foreclosures
of properties 0 492 0 492
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Net loss (4,972) (2,476) (10,877) (9,449)
Partners' deficit:
Beginning of period (44,276) (31,865) (38,371) (24,892)
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End of period ($49,248) ($34,341) ($49,248) ($34,341)
==================================================================================================================================
Per Unit data:
Operating loss ($35.20) ($35.81) ($100.11) ($103.95)
==================================================================================================================================
Net loss ($49.72) ($24.76) ($108.77) ($94.49)
==================================================================================================================================
</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>
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NINE MONTHS
ENDED
SEPTEMBER 30,
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1997 1996
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<S> <C> <C>
Cash flows from operating activities:
Net loss ($10,877) ($9,449)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 6,433 6,469
Amortization of discount 6,628 7,002
Net loss (gain) on disposition of properties
including forgiveness of wraparound
mortgages payable 866 (946)
Decrease in tenant accounts receivable 258 244
Decrease in unbilled rent receivable, net 199 240
Decrease (increase) in tenant leasing costs 107 (30)
Decrease (increase) in accounts receivable
and other assets 88 (376)
(Decrease) increase in accounts payable
and other liabilities (68) 4,774
Decrease in deferred revenue (29) 0
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Net cash provided by operating activities 3,605 7,928
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Cash flows provided by (used in) financing activities:
Payments on wraparound mortgages (7,367) (7,659)
Advances to the Pension Group 0 1,642
Increase in due to the Pension Group 2,528 (0)
Proceeds from other borrowings 358 0
Proceeds from additional debt 549 0
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Net cash used in financing activities (3,932) (6,017)
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Cash flows provided by (used in)
investing activities:
Disposition of properties 1,652 2,941
Improvements to rental property (1,413) (5,013)
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Net cash provided by (used in) investing activities 239 (2,072)
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Decrease in cash (88) (161)
Cash:
Beginning of period 2,897 1,900
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End of period $2,809 $1,739
===============================================================================================================================
</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)
September 30, 1997
(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 10-K for the years ended December 31, 1996 and
1995.
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.
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 56 properties at September 30, 1997 versus 57 at September 30,
1996. The Maplewood, Missouri property was sold in July 1997. Income increased
for the three and nine month periods ended September 30, 1997 versus September
30, 1996 by $536,000 and $759,000, respectively. The increase for the three and
nine month periods ended September 30, 1997 versus September 30, 1996 was
primarily due to increased rental income arising from leasing activities and
percentage rents, and income from tenant terminations.
Operating expenses increased for the three and nine month periods ended
September 30, 1997 versus September 30, 1996 by $475,000 and $375,000,
respectively. The increase for the three and nine month periods ended September
30, 1997 versus September 30, 1996 was primarily due to increased interest
expense.
Net loss on disposition of properties for the three and nine month periods ended
September 30, 1997 versus September 30, 1996 increased by $2,065,000 and
$1,320,000, respectively. The variance was due to the disposition of the
Maplewood, Missouri property in the third quarter of 1997, which produced a net
loss of $1,452,000, the disposition of two out parcels of the Cottage Grove,
Minnesota property in the second quarter of 1997, which produced a net gain of
$586,000, the dispositions of the El Paso, Texas and Red Wing, Minnesota
properties and an out parcel of the Fond du Lac, Wisconsin property in the third
quarter of 1996, which produced an aggregate net gain of $613,000, and the
disposition of the Boone, Iowa property in the first quarter of 1996, which
produced a net loss of $159,000. Forgiveness of wraparound mortgages payable on
dispositions and foreclosures of properties resulted from the disposition of the
El Paso, Texas property in the third quarter of 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 nine month period ended September 30,
1997 was $3,605,000. Payments on mortgages and other financing activities used
$3,932,000. Disposition of properties, net of improvements to rental property
provided $239,000. As a result of the above, there was a $88,000 decrease in
cash for the nine months ended September 30, 1997.
As of September 30, 1997, the underlying mortgages were current for all the
properties except for the properties located in Ardmore, Oklahoma, East Meadow,
New York, Temple Terrace, Florida and Wheelersburg, Ohio. The second mortgage
loan on the Ardmore, Oklahoma property is significantly past due and there are
no plans to bring this loan current. NPAMLP has not received any notice from the
holder of this loan in six years. The mortgage loan on the East Meadow, New York
property matured in July 1995. The East Meadow, New York property is owned by
East Meadow Associates (East Meadow), which in May 1997 filed for protection
under Chapter 11 of the U.S. Bankruptcy Code. East Meadow has been operating as
a Debtor-In-Possession since the filing date and intends to file a Plan of
Reorganization during the fourth quarter of this year. In October 1997, East
Meadow entered into a court approved agreement whereby the East Meadow, New York
property will be conveyed to the underlying mortgagee in January 1998. NPAMLP
does not anticipate a loss on the disposition of the East Meadow, New York
property. As of September 30, 1997, the mortgage loan on the Temple Terrace
property was delinquent approximately twenty months. The lender has declared a
default with respect to this mortgage. The Temple Terrace, Florida property is
owned by Ocala Realty Associates (Ocala), which in October 1996 filed for
protection under Chapter 11 of the U.S. Bankruptcy Code. Ocala has been
operating as a Debtor-In-Possession since the filing date and intends to file a
Plan of Reorganization during the fourth quarter of this year. Ocala entered
into a contract for sale of the Temple Terrace, Florida property, which is
expected to be consummated during the fourth quarter of this year. NPAMLP
intends to utilize proceeds from the sale to satisfy the delinquent amount. The
underlying mortgage loan on the Wheelersburg, Ohio property matured in November
1995. NPAMLP negotiated an extension and forbearance agreement that will expire
on December 31, 1997.
In September 1996, NPAMLP obtained a $1,000,000 line of credit from Firtrust
Bank. Proceeds from the line of credit are utilized for capital and tenant
improvements to the properties. At September 30, 1997, $593,000 has been
advanced under this line of credit.
As of September 30, 1997, NPAMLP was obligated for approximately $345,000 of
capital commitments which are primarily for roof repairs and replacement and
tenant improvement costs.
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 September 30,
1997.
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
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(Registrant)
Date: November 12, 1997
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By: EBL&S, Inc., its sole general partner
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By: /s/ Edward B. Lipkin
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Name: Edward B. Lipkin
Title: President and Principal Financial Officer
10
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,809
<SECURITIES> 0
<RECEIVABLES> 615
<ALLOWANCES> 20
<INVENTORY> 0
<CURRENT-ASSETS> 3,404
<PP&E> 274,612
<DEPRECIATION> 120,276
<TOTAL-ASSETS> 160,019
<CURRENT-LIABILITIES> 3,148
<BONDS> 196,738
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 160,019
<SALES> 0
<TOTAL-REVENUES> 8,030
<CGS> 0
<TOTAL-COSTS> 4,729
<OTHER-EXPENSES> 2,172
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,101
<INCOME-PRETAX> (4,972)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,972)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,972)
<EPS-PRIMARY> (49.72)
<EPS-DILUTED> (49.72)
</TABLE>
