MICHIGAN (State or other jurisdiction of incorporation or organization) |
38-2702802 (I.R.S. employer identification number) |
Securities registered pursuant to Section 12(g) of the Act:
units of beneficial assignments of limited partnership interest
Part 1.
Item 1.
| BALANCE SHEETS | |||
| ASSETS | March 31, 2000 | December 31, 1999 | |
| (Unaudited) | |||
| Properties: | |||
| Land | $11,644,103 | $11,644,103 | |
| Buildings And Improvements | 50,022,420 | 49,776,786 | |
| Furniture And Fixtures | 489,503 | 453,437 | |
| Manufactured Homes | 1,810,069 | 1,875,567 | |
| 63,966,095 | 63,749,893 | ||
| Less Accumulated Depreciation | 21,042,308 | 20,587,823 | |
| 42,923,787 | 43,162,070 | ||
| Cash And Cash Equivalents | 3,046,878 | 2,821,681 | |
| Unamortized Finance Costs | 610,335 | 597,528 | |
| Other Assets | 1,143,810 | 944,378 | |
| Total Assets | $47,724,810 | $47,525,657 | |
| LIABILITIES | March 31, 2000 | December 31, 1999 | |
| (Unaudited) | |||
| Accounts Payable | $304,994 | $235,098 | |
| Other Liabilities | 1,003,381 | 769,853 | |
| Notes Payable | 29,480,491 | 29,572,116 | |
| Total Liabilities | $30,788,866 | $30,577,067 | |
| Partners' Equity: | |||
| General Partner | 264,570 | 258,420 | |
| Unit Holders | 16,671,374 | 16,690,170 | |
| Total Partners' Equity | 16,935,944 | 16,948,590 | |
| Total Liabilities And | |||
| Partners' Equity | $47,724,810 | $47,525,657 | |
|
|
|||||
| STATEMENTS OF INCOME | THREE MONTHS ENDED | ||||
| (unaudited) | March 31, 2000 | March 31, 1999 | |||
| Income: | |||||
| Rental Income | $3,057,971 | $2,970,199 | |||
| Other | 185,634 | 227,772 | |||
| Total Income | $3,243,605 | $3,197,971 | |||
| Operating Expenses: | |||||
| Administrative Expenses | |||||
| (Including $160,975 and $156,641, in Property Management | |||||
| Fees Paid to an Affiliate for the Three Month Period Ending | |||||
| March 31, 2000 and 1999 Respectively) | 777,114 | 812,070 | |||
| Property Taxes | 251,067 | 238,728 | |||
| Utilities | 243,161 | 256,116 | |||
| Property Operations | 421,455 | 466,884 | |||
| Depreciation And Amortization | 460,803 | 462,500 | |||
| Interest | 475,008 | 477,675 | |||
| Total Operating Expenses | $2,628,608 | $2,713,973 | |||
| Net Income | $614,997 | $483,998 | |||
| Income Per Unit: | $0.19 | $0.15 | |||
| Distribution Per Unit: | $0.19 | $0.18 | |||
| Weighted Average Number Of Units | |||||
| Of Beneficial Assignment Of Limited Partnership | |||||
| Interest Outstanding During The Period Ending | |||||
| March 31, 2000 and 1999 | 3,303,387 | 3,303,387 | |||
| STATEMENTS OF CASH FLOWS | ||
| (unaudited) | ||
| THREE MONTHS ENDED | ||
| March 31, 2000 | March 31, 1999 | |
| Cash Flows From Operating Activities: | ||
| Net Income (Loss) | $614,997 | $483,998 |
| Adjustments To Reconcile Net Income | ||
| (Loss) To Net Cash Provided By | ||
| Operating Activities: | ||
| Depreciation | 454,485 | 455,000 |
| Amortization | 6,318 | 7,500 |
| (Increase) Decrease In Other Assets From Operations | (218,557) | (144,381) |
| Increase (Decrease) In Accounts Payables | 69,896 | (32,482) |
| Increase (Decrease) Other Liabilities From Operations | 233,528 | (101,186) |
| Total Adjustments | 545,670 | 184,451 |
| Net Cash Provided By (Used In) | ||
| Operating Activities | 1,160,667 | 668,449 |
| Cash Flows From Investing Activities: | ||
| Redemption of Marketable Securities | 0 | 0 |
| Capital Expenditures | (216,202) | (182,308) |
| Sale of Fixed Assets | 0 | 0 |
| Payment On Mortgage | (91,625) | (88,958) |
| Net Cash Provided By (Used In) | ||
| Investing Activities | (307,827) | (271,266) |
| Cash Flows From Financing Activities: | ||
| Distributions To Partners | (627,643) | (578,096) |
| Net Cash Provided By (Used In) | ||
| Financing Activities | (627,643) | (578,096) |
| Increase (Decrease) In Cash | 225,197 | (180,913) |
| Cash, Beginning | 2,821,681 | 2,482,314 |
| Cash, Ending | $3,046,878 | $2,301,401 |
1.
The accompanying unaudited 2000 financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date. Operating results for the three months ended March 31, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000, or for any other interim period. For further information, refer to the consolidated financial statements and footnotes thereto included in the Partnership's Form 10-K for the year ending December 31, 1999.
ITEM 2.
Capital Resources
The Partnership's capital resources consist primarily of its nine manufactured home communities. On August 20, 1998, the Partnership refinanced seven of its nine properties with GMAC Commercial Mortgage Corporation (the "Refinancing").
Liquidity
As a result of the Refinancing, seven of the Partnership's nine properties are mortgaged. At the time of the Refinancing, the aggregate principal amount due under the seven mortgage notes was $30,000,000 and the aggregate fair market value of the Partnership's mortgaged properties was $66,000,000. The Partnership expects to meet its short-term liquidity needs generally through its working capital provided by operating activities.
Partnership liquidity is based, in part, upon its investment strategy. Upon acquisition, the Partnership anticipated owning the properties for seven to ten years. All of the properties have been owned by the Partnership for more than ten years. The General Partner may elect to have the Partnership own the properties for as long as, in the opinion of the General Partner, it is in the best interest of the Partnership to do so.
Distributable Cash from Operations totaled $1,075,800 for the quarter ending March 31, 2000. Distributable Cash from Operations is defined as net income computed in accordance with generally accepted accounting principals ("GAAP"), plus real estate related depreciation and amortization. Distributable Cash from Operations does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs. Distributable Cash from Operations should not be considered as an alternative to net income as the primary indicator of the Partnership's operating performance nor as an alternative to cash flow as a measure of liquidity. From Distributable Cash from Operations the General Partner has decided to distribute $627,644, or $.19 per unit, to the unit holders. The General Partner will continue to monitor cash flow generated by the Partnership's nine properties during the coming quarters. If cash flow generated is greater or lesser than the amount needed to maintain the current distribution level, the General Partner may elect to reduce or increase the level of future distributions paid to Unit Holders.
While the Partnership is not required to maintain a
working capital reserve, the Partnership has not distributed all the
Distributable Cash from Operations in order to build reserves. As of March
31, 2000, the Partnership's cash reserves amounted to $3,046,878.
Once the first quarter distribution is paid to unit
holders, the cash reserve amount will be approximately $2,419,234. The
level of cash reserves maintained is at the discretion of the General
Partner.
Results of Operations
Overall, as illustrated in the following table, the Partnership's nine properties reported combined occupancy of 92.0% (3,065/3,330 sites) at the end of March 2000, versus 93.5% (3,115/3,330) for March 1999. The average monthly homesite rent as of March 31, 2000 was approximately $359, versus $348, an increase of 3.2% from March 1999.
Comparison of Quarter Ended March 31, 2000 to Quarter Ended March 31, 1999
Gross revenues increased $45,634, or 1.4%, to $3,243,605 in 2000, as compared to $3,197,971 in 1999. The increase was the result of the increase in average monthly rents.
(See previous table.)
As described in the Statements of Income, total operating expenses decreased $85,365, or 3.1%, to $2,628,608 in 2000, as compared to $2,713,973 in 1999. The decrease was the result of lower administrative expenses and lower expenses associated with property operations.
As a result of the foregoing factors, net operating income increased to $614,997 as of March 31, 2000 from $483,998 as of March 31, 1999.
ITEM 3.
DISCLOSURES ABOUT MARKET RISK
The Partnership is exposed to interest rate rise primarily through its borrowing activities.
There is inherent roll over risk for borrowings as they mature and are renewed at
current market rates. The extent of this risk is not quantifiable or predictable because of the variability of future interest rates and the Partnership's future financing requirements.
The Partnership does not enter into financial instruments transactions for trading or other speculative purposes or to manage its interest rate exposure
ITEM 6.
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: May 15, 2000
EXHIBIT INDEX
Exhibit Number
Total
Capacity
Occupied Sites
Occupancy Rate
Average Rent Ardmor Village
339
333
98.2%
$335 Camelot Manor
335
316
94.3%
$332 Country Roads
312
282
90.4%
$253 Dutch Hills
278
270
97.1%
$334 El Adobe
371
337
91.8%
$404 Paradise Village
611
504
82.1%
$291 Stonegate Manor
308
299
97.1%
$340 Sunshine Village
356
322
90.4%
$447 West Valley
420
402
95.5%
$467 Total on 3/31/00:
3,330
3,065
92.0%
$359 Total on 3/31/99:
3,330
3,115
93.5%
$348
Gross
Revenues
Net Operating Income 3/31/00
3/31/99
3/31/00
3/31/99 Ardmor Village
$ 375,167
$328,589
$ 232,745
$ 173,047 Camelot Manor
295,662
289,349
145,103
140,113 Country Roads
185,971
215,714
38,720
61,870 Dutch Hills
250,611
244,957
121,462
116,963 El Adobe
426,537
435,675
278,760
283,153 Paradise Village
406,278
371,945
97,882
79,287 Stonegate Manor
289,884
294,594
156,148
159,457 Sunshine Village
404,880
424,802
232,435
219,331 West Valley
578,341
572,680
356,143
380,807 3,213,331
3,178,305
1,659,399
1,614,028 Partnership Management:
30,274
19,666
(29,632)
(51,418) Other Non Recurring expenses:
---- ----
(78,958)
(138,437) Debt Service
(475,008)
(477,675) Depreciation and Amortization
---- ----
(460,803)
(462,500) $3,243,605
$3,197,971
$614,997
$483,998 QUANTITATIVE AND QUALITATIVE
PART II - OTHER INFORMATION
(a) Exhibits
27
(b) Reports on Form 8-K
There were no reports filed on Form 8-K during
SIGNATURES
Uniprop Manufactured Housing Communities
Income Fund II, a Michigan Limited Partnership
BY:
General Partner
BY:
its Managing General Partner
By: /s/ Paul M. Zlotoff
By: /s/ Gloria A. Koster