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 September 30, 1995 Commission file number 0-14510
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 November
13, 1995 was 2,245,411.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements.
CEDAR INCOME FUND, Ltd.
Balance Sheets
(unaudited)
September 30 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 depreciation (3,209,210) (2,772,856) (2,881,997)
Total net real estate 15,117,373 15,553,727 15,444,586
Mortgage loan receivable 584,849 592,745 590,834
Total real estate and mortgage participation 15,702,222 16,146,472 16,035,420
Cash and cash equivalents 754,957 438,504 447,015
Rent and other receivables 86,503 95,212 62,543
Interest receivable 4,021 5,708 6,103
Prepaid expenses 34,722 45,620 53,583
Deferred lease commissions 134,353 184,753 171,264
Taxes held in escrow 50,933 48,243 10,304
TOTAL ASSETS 16,767,711 16,964,512 16,786,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage loan payable 1,449,643 1,468,473 1,463,929
Accounts payable and accrued expenses 206,553 206,200 86,059
Due to affiliates 34,588 51,236 29,062
Security deposits 67,870 66,999 68,127
Advance rents 30,270 52,311 48,884
TOTAL LIABILITIES 1,788,924 1,845,219 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 12,733,376 12,873,882 12,844,760
TOTAL SHAREHOLDERS' EQUITY 14,978,787 15,119,293 15,090,171
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 16,767,711 16,964,512 16,786,232
CEDAR INCOME FUND, Ltd.
Statements of Operations
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
REVENUE
Rents 607,355 600,079 1,807,266 1,739,566
Interest 22,125 17,641 63,363 48,908
Total revenue 629,480 617,720 1,870,629 1,788,474
EXPENSES
Property expenses:
Real estate taxes 63,857 61,111 179,760 193,384
Wages and salaries 5,320 10,814 15,179 32,597
Repairs and maintenance 59,743 98,140 257,506 243,484
Utilities 43,644 41,638 99,894 97,986
Management fee 30,367 30,005 90,362 86,979
Insurance 5,093 2,571 12,407 11,742
Other 22,205 25,705 67,700 67,566
Total property expenses, excluding depreciation 230,229 269,984 722,808 733,738
depreciation
Depreciation 109,062 109,140 327,213 327,421
Total property expenses 339,291 379,124 1,050,021 1,061,159
Interest 34,969 35,404 105,242 106,516
Administrative fees 24,912 24,735 74,542 74,099
Directors' fees and expenses 10,044 12,359 32,524 38,073
Other administrative 14,554 12,390 46,061 44,493
Total expenses 423,770 464,012 1,308,390 1,324,340
Net earnings 205,710 153,708 562,239 464,134
Net earnings per share .09 .07 .25 .21
Dividends to shareholders 224,541 224,541 673,623 673,623
Dividends to shareholders per share .10 .10 .30 .30
Average number of shares outstanding 2,245,411 2,245,411 2,245,411 2,245,411
CEDAR INCOME FUND, Ltd.
Statements of Cash Flows
(unaudited)
Nine Months Ended
September 30,
1995 1994
Cash flows from operating activities:
Rents collected 1,750,592 1,695,715
Interest received 65,445 48,037
Payments for operating expenses (723,422) (744,723)
Interest paid (102,492) (103,766)
Net cash provided by operating activities 990,123 895,263
Cash flows from investing activities:
Principal portion of scheduled
mortgage loan collections 5,985 5,499
Security deposits collected, net (257) 2,670
Net cash provided by investing activities 5,728 8,169
Cash flows from financing activities:
Principal portion of scheduled
mortgage loan payments (14,286) (13,013)
Dividends paid to shareholders (673,623) (673,623)
Net cash used by financing activities (687,909) (686,636)
Net increase in cash and cash equivalents. 307,942 216,796
Cash and cash equivalents at beginning of period 447,015 221,708
Cash and cash equivalents at end of period 754,957 438,504
Reconciliation of net earnings to net
cash provided by operating activities:
Net earnings 562,239 464,134
Add (deduct) reconciling adjustments:
Depreciation 327,213 327,421
Amortization 2,750 2,750
Increase in rent and other receivables (64,589) (70,770)
Decrease (increase) in interest receivable 2,082 (871)
Decrease in prepaid expenses 16,111 12,485
Decrease in deferred lease commissions 36,911 2,702
Increase in operating accounts payable,
accrued expenses and due to affiliates 126,020 147,306
Increase (decrease) in advance rents (18,614) 10,106
Net cash provided by operating activities 990,123 895,263
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
conjuction
with the audited financial statements and related notes included in the
1994 Annual Report.
Note 2: Shareholders' equity, December 31, 1994 15,090,171
Net earnings 562,239
Dividends to shareholders (673,623)
Shareholders' equity, September 30, 1995 14,978,787
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
We are pleased to present the third quarter report for Cedar
Income Fund, Ltd. Net earnings for the three months ended
September 30, 1995 were $205,710 ($.09 per share) compared
to $153,708 ($.07 per share) for the same period in 1994,
representing a 34% increase. Net earnings for the nine
months ended September 30, 1995 were $562,239 ($.25 per
share) compared to $464,134 ($.21 per share) for the same
period in 1994, representing a 21% increase. Funds from
operations (earning from operations plus depreciation) were
$889,452 for the nine months ended September 30, 1995
compared to $791,555 for the same period in 1994.
The increases in net earnings and funds from operations were
primarily the result of higher revenues. Rental income for
the nine months ended September 30, 1995 increased to
$1,807,266 from $1,739,566 during the same period in 1994, a
gain of 4%. Rents increased at Southpoint Parkway Center in
Jacksonville, Florida and Broadbent Business Park in Salt
Lake City, Utah due primarily to higher rental rates. As of
September 30, 1995, the Company's real estate portfolio had
an overall occupancy rate of 98%. Interest income for the
nine months ended September 30, 1995 increased $14,455 over
the same period in 1994 due to increased funds available for
investment and higher interest rates on investable funds.
Total property expenses, excluding depreciation, decreased
from $733,738 for the first nine months of 1994 to $722,808
for the same period in 1995, representing 42% and 40% of
rental income, respectively. Property expenses declined due
primarily to lower real estate taxes resulting from a
partial refund of 1994 taxes on Germantown Square Shopping
Center in Louisville, Kentucky. Wages and salaries were
also reduced due to a reduction in property management
personnel at Broadbent.
Hewlett Packard Corporation did not renew its lease for
20,400 square feet of space at Corporate Center East when it
expired on September 30, 1995, but has exercised an option
to extend the current lease until November 30, 1995. This
lease represented 11% of the Company's revenue for the nine
months ended September 30, 1995. The Company has begun
marketing efforts to secure one or more replacement tenants
for this space.
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 September 30, 1995, is represented by cash and
cash equivalents of $754,957, a mortgage loan participation
of $584,849, and cash flow from operating activities. This
liquidity is considered sufficient to meet current
obligations.
On October 25, 1995, the Board of Directors declared a
dividend of $.10 per share payable November 20, 1995 to
shareholders of record on November 7, 1995. The Board of
Directors will continue to consider leasing activity,
operating results and financial condition of the Company in
determining future dividends.
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: November 13, 1995