| MICHIGAN | 38-2702802 | |
| (State or other jurisdiction of | (I.R.S. employer | |
| incorporation or organization) | identification number) |
Securities registered pursuant to Section 12(g) of the Act: units of beneficial assignments of limited partnership interest 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.
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
| Balance Sheets | |
| March 31, 2001 (Unaudited) and | |
| December 31, 2000 | 3
|
| Statements of Income | |
| Three months ended March 31, 2001 | |
| and 2000 (Unaudited) | 4
|
| Statement of Partners Equity | |
| Three months ended March 31, 2001(Unaudited) | 4
|
| Statements of Cash Flows | |
| Three months ended March 31, 2001 | |
| and 2000 (Unaudited) | 5
|
| Notes to Financial Statements | |
| March 31, 2000 (Unaudited) | 6
|
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS 7
ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK 10
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 10
1. Basis of Presentation:
The accompanying unaudited 2001 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, 2000 has been derived from the audited financial statements at that date. Operating results for the three months ended March 31, 2001 are not necessarily indicative of the results that may be expected for the year ending December 31, 2001, 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, 2000.
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 $1,106,905 and $1,075,800 for the quarters ended March 31, 2001 and 2000, respectively. 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 $693,711, or $.21 per unit, to the unit holders during the quarter ending June 30, 2001. 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, 2001, the Partnership's cash reserves amounted to $3,659,463.
Once the distribution is paid to unit holders, the cash reserve amount will be approximately $2,965,752. 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 91% (3,018/3,330 sites) at the end of March 2001, versus 92% (3,065/3,330) for March 2000. The average monthly homesite rent as of March 31, 2001 was approximately $363, versus $356, an increase of 2% from March 2000.
| Total Capacity | Occupied Sites | Occupancy Rate | Average* Rent Ardmor Village | 339 | 336 | 99% | $345
| Camelot Manor | 335 | 311 | 93% | 342
| Country Roads | 312 | 274 | 88% | 241
| Dutch Hills | 278 | 274 | 99% | 341
| El Adobe | 371 | 323 | 88% | 419
| Paradise Village | 611 | 481 | 78% | 303
| Stonegate Manor | 308 | 293 | 95% | 348
| Sunshine Village | 356 | 325 | 91% | 447
| West Valley | 420 | 401 | 95% | 479
| Total on 3/31/01: | 3,330 | 3,018 | 91% | $363
| Total on 3/31/00: | 3,330 | 3,065 | 92% | $356
| |
Gross Revenues Net Income
3/31/01 3/31/00 3/31/01 3/31/00
Ardmor Village $ 357,865 $ 375,167 $ 209,690 $ 232,745
Camelot Manor 309,820 295,662 171,331 145,103
Country Roads 190,045 185,971 43,197 38,720
Dutch Hills 263,593 250,611 132,831 121,462
El Adobe 407,354 426,537 258,559 278,760
Paradise Village 434,786 406,278 137,000 97,882
Stonegate Manor 289,386 289,884 160,849 156,148
Sunshine Village 420,256 404,880 237,941 232,435
West Valley 581,780 578,341 391,834 356,143
3,254,885 3,213,331 1,743,232 1,659,399
Partnership Management: 37,162 30,274 (66,215) (29,632)
Other Non Recurring expenses: ----- ---- (103,302) (78,958)
Debt Service (466,810) (475,008)
Depreciation and Amortization ----- ---- (450,237) (460,803)
$ 3,292,047 $ 3,243,605 $656,668 $614,997
Comparison of Quarter Ended March 31, 2001 to Quarter Ended March 31, 2000
Gross revenues increased $48,442 to $3,292,047 in 2001, as compared to $3,243,605 in 2000. The increase was the result of the increase in average monthly rents. (See table on previous page.)
As described in the Statements of Income, total operating expenses increased only $6,771, or 0.26%, to $2,635,379 in 2001, as compared to $2,628,608 in 2000.
As a result of the aforementioned factors, Net Income increased to $656,668 for the first quarter of 2001 compared to $614,997 for the first quarter of 2000, a 7% increase.
ITEM 3.
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.
Note Payable: At March 31, 2001 the Partnership had a note payable outstanding in the amount of $29,107,422. Interest on this note is at a fixed annual rate of 6.37% through March 2009.
The Partnership does not enter into financial instruments transactions for trading or other speculative purposes or to manage its interest rate exposure
ITEM 6. Reports on Form 8-K
(a) Reports on Form 8-K
There were no reports filed on Form 8-K during
the three months ended March 31, 2001.
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.
Uniprop Manufactured Housing Communities
Income Fund II, a Michigan Limited Partnership
BY: Genesis Associates Limited Partnership,
General Partner
BY: Uniprop, Inc.,
its Managing General Partner
By: /s/ Paul M. Zlotoff
Paul M. Zlotoff, President
By: /s/ Gloria A. Koster
Gloria A. Koster, Principal Financial Officer
Dated: May 15, 2001