6
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarter ended March 31, Commission file number 0-14510
1995
CEDAR INCOME FUND, LTD.
(Exact name of registrant as specified in its charter)
Iowa 42-1241468
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4333 Edgewood Road N.E., Cedar 52499
Rapids, IA (Zip Code)
(Address of principal executive
offices)
Registrant's telephone number, including area code: (319) 398-8975
N/A
(Former name, address and fiscal year, if changed since last
report)
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
The number of shares of common stock outstanding at May 10, 1995
was 2,245,411.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements.
CEDAR INCOME FUND, Ltd.
Balance Sheets
(unaudited)
March 31 December 31,
1995 1994 1994
ASSETS
Real estate
Land 4,126,044 4,126,044 4,126,044
Buildings and improvements 14,200,539 14,200,539 14,200,539
Total real estate 18,326,583 18,326,583 18,326,583
Less accumulated (2,991,085) (2,554,575) (2,881,997)
depreciation
Total net real estate 15,335,498 15,772,008 15,444,586
Mortgage loan receivable 588,881 596,450 590,834
Total real estate and mortgage 15,924,379 16,368,458 16,035,420
participation
Cash and cash equivalents 453,478 329,171 447,015
Rent and other receivables 127,416 104,634 62,543
Interest receivable 6,676 4,973 6,103
Prepaid expenses 39,199 44,573 53,583
Deferred lease commissions 158,396 180,796 171,264
Taxes held in escrow 23,847 21,415 10,304
Due from affiliates 42,440
-- --
TOTAL ASSETS 16,775,831 17,054,020 16,786,232
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Mortgage loan payable 1,459,278 1,477,249 1,463,929
Accounts payable and accrued 139,892 137,756 86,059
expenses
Due to affiliates -- 46,531 29,062
Security deposits 69,224 65,548 68,127
Advance rents 56,937 59,322 48,884
TOTAL LIABILITIES 1,725,331 1,786,406 1,696,061
Shareholders' equity
Common stock, $1 par value,
5,020,000 shares authorized 2,245,411 2,245,411 2,245,411
Additional paid-in capital 12,805,089 13,022,203 12,844,760
TOTAL SHAREHOLDERS' EQUITY 15,050,500 15,267,614 15,090,171
TOTAL LIABILITIES AND 16,775,831 17,054,020 16,786,232
SHAREHOLDERS' EQUITY
CEDAR INCOME FUND, Ltd.
Statements of Operations
(unaudited)
March 31,
1995 1994
REVENUE
Rents 600,187 560,110
Interest 19,706 15,041
Total revenue 619,893 575,151
EXPENSES
Property expenses:
Real estate taxes 53,540 63,822
Wages and salaries 4,622 11,600
Repairs and maintenance 94,374 56,647
Utilities 26,640 29,399
Management fee 30,010 28,005
Insurance 3,691 4,494
Other 22,132 17,670
Total property expenses, 235,009 211,637
excluding depreciation
Depreciation 109,088 109,140
Total property expenses 344,097 320,777
Interest 35,192 35,606
Administrative fees 24,805 24,656
Directors' fees and expenses 11,247 13,246
Other administrative 19,682 17,493
Total expenses 435,023 411,778
Net earnings 184,870 163,373
Net earnings per share .08 .07
Dividends to shareholders 224,541 224,541
Dividends to shareholders per .10 .10
share
Average number of shares 2,245,411 2,245,411
outstanding
CEDAR INCOME FUND, Ltd.
Statements of Cash Flows
(unaudited)
Three Months Ended
March 31,
1995 1994
CASH FLOWS FROM OPERATING
ACTIVITIES:
Rents collected 529,267 513,848
Interest received 19,133 14,905
Payments for operating expenses (281,520) (160,836)
Interest paid (34,275) (34,689)
Net cash provided by operating 232,605 333,228
activities
CASH FLOWS FROM INVESTING
ACTIVITIES:
Principal portion of scheduled
mortgage loan collections 1,953 1,794
Security deposits collected, net 1,097 1,219
Net cash provided by investing 3,050 3,013
activities
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal portion of scheduled
mortgage loan payments (4,651) (4,237)
Dividends paid to shareholders (224,541) (224,541)
Net cash used by financing (229,192) (228,778)
activities
Net increase in cash and cash 6,463 107,463
equivalents.
Cash and cash equivalents at 447,015 221,708
beginning of period
Cash and cash equivalents at end 453,478 329,171
of period
RECONCILIATION OF NET EARNINGS TO
NET
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net earnings 184,870 163,373
Add (deduct) reconciling
adjustments:
Depreciation 109,088 109,140
Amortization 917 917
Increase in rent and other (78,416) (53,364)
receivables
Increase in interest receivable (573) (136)
Decrease in prepaid expenses 13,467 15,365
Decrease in deferred lease 12,868 6,659
commissions
Increase in due from affiliates (42,440)
-
Increase in operating accounts
payable,
accrued expenses and due to 24,771 74,157
affiliates
Increase in advance rents 8,053 17,117
Net cash provided by operating 232,605 333,228
activities
NOTES TO FINANCIAL STATEMENTS
Note 1: Interim financial statements are prepared in accordance
with generally accepted accounting principles and include all adjustments
of a normal recurring nature necessary for a fair presentation of the
financial position and quarterly results. Interim reports should be read in
conjunction with the audited financial statements and related notes
included in the 1994 Annual Report.
Note 2: Shareholders' equity, 15,090,171
December 31, 1994
Net earnings 184,870
Dividends to shareholders (224,541)
Shareholders' equity, March 31, 15,050,500
1995
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
We are pleased to present the first quarter report for Cedar
Income Fund, Ltd. Net earnings for the three months ended March
31, 1995 were $184,870 ($.08 per share) compared to $163,373
($.07 per share) for the same period in 1994. Funds from
operations (earnings from operations plus depreciation) were
$293,958 ($.13 per share) for the first three months of 1995
compared to $272,513 ($.12 per share) for the same period a year
ago. Net earnings and funds from operations were higher in 1995
primarily due to increased rents at Southpoint Parkway Center in
Jacksonville, Florida and Broadbent Business Center in Salt Lake
City, Utah. Rental income for the first quarter was $600,187
compared to $560,110 for the first quarter in 1994. As of March
31, 1995, the Company's real estate portfolio had an overall
occupancy rate of 99%.
Total property expenses, excluding depreciation, as a percentage
of rental income, increased slightly from 38% in 1994 to 39% in
1995 primarily due to scheduled maintenance services at
Southpoint which resulted in a $38,000 increase in repairs and
maintenance expense . Real estate taxes decreased $10,000 as a
result of a partial refund of 1994 taxes on Germantown Square
Shopping Center in Louisville, Kentucky. Wages and salaries
were reduced $7,000 due to a reduction in property management
personnel at Broadbent.
Hewlett Packard Corporation has notified the Company that it
does not intend to renew its lease for 20,400 square feet of
space at Corporate Center East in Bloomington, Illinois when it
expires on September 30, 1995. This lease represented 11% of
the Company's revenue in 1994. The Company has begun marketing
efforts to secure one or more replacement tenants for this
space.
The Board of Directors declared a dividend of $.10 per share
payable May 22, 1995 to shareholders of record May 9, 1995. The
Board of Directors will continue to consider leasing activity,
operating results and the financial condition of the Company in
determining future dividends.
The Company's capital resources consist of its current equity in
real estate investments (current value less mortgage
indebtedness) and a mortgage loan receivable. The company
maintains its real estate in good condition and provides
adequate insurance coverage. The Company's liquidity at March
31, 1995 is represented by cash and cash equivalents of
$453,478, a mortgage loan participation of $588,881 and cash
flow from operating activities. This liquidity is considered
sufficient to meet current obligations.
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
At the Company's annual meeting of shareholders on May 4, 1995,
71% of the Company's outstanding shares were represented either
in person or by proxy. All five incumbent Directors were re-
elected to the Board of Directors, with each receiving at least
97% of the vote for the shares represented. The vote tabulation
for each Director was as follows:
Director Votes For Votes Withheld
Patrick E. 1,556,052 35,569
Falconio
Edwin L. Ingraham 1,554,852 36,769
James C. Kafes 1,556,441 35,180
Edwin B. Lancaster 1,556,141 35,480
Alex A. Meyer 1,555,241 36,380
SIGNATURE
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.
CEDAR INCOME FUND, LTD.
/s/ Alan F. Fletcher
Alan F. Fletcher
Vice President and Treasurer
(principal financial officer)
/s/ Edward J. Kittleson
Edward J. Kittleson
Controller
(principal accounting officer)
Dated: May 10, 1995