Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - Behringer Harvard Short-Term Liquidating Trust | v319916_8k.htm |
I
| BEHRINGER HARVARD |
| SHORT - TERM |
| OPPORTUNITY FUND I LP |
First Quarter Report
Quarter ended March 31, 2012
Hotel Palomar in Dallas, Texas, (left and center) and 1221 Coit Road in Plano (Dallas), Texas
First Quarter Overview
As of June 14, 2012
| • | The Fund continues its disposition phase. We are focused on selling assets and returning as much capital as possible to investors over the next two to three years. |
| • | 1221 Coit in Plano (Dallas), Texas, has been attracting significant buyer interest and we are currently negotiating with several potential buyers to optimize the sales price and maximize the ultimate value. |
| • | We are hopeful that we can complete the sale of 250/290 John Carpenter Freeway in Irving, Texas, during 2012. We plan to use the net proceeds to pay down debt in the Fund. |
| • | Hotel Palomar is continuing its trend of improving performance, as demonstrated by the increases in monthly Average Daily Rate and Revenue per Available Room thus far in 2012. The $41.1 million loan on this asset matures on December 21, 2012. |
| • | On May 17 and June 8, 2012, the Fund entered into deed-in-lieu of foreclosure agreements with the lenders on the Cassidy Ridge Condominiums in Telluride, Colorado, and the Palomar Residences in Dallas, Texas, respectively. Ownership of the properties was transferred to the lenders in full settlement of the outstanding debt, subject to certain contingencies. Because these loans were in default at year-end 2011 and were recourse to the Fund, the loan deficiencies negatively impacted the Fund’s year-end 2011 estimated unit valuation. |
Financial Highlights
| 3 mos. ended | 3 mos. ended | |||||||||
| (in thousands) | Mar. 31, 2012 | Mar. 31, 2011 | ||||||||
| Some numbers | Total revenues | $ | 5,015 | $ | 5,181 | |||||
| have been | Net operating income1 | $ | 813 | $ | 1,007 | |||||
| rounded for | (in thousands) | As of Mar. 31, 2012 | As of Dec. 31, 2011 | |||||||
| presentation | Total assets | $ | 112,451 | $ | 116,026 | |||||
| purposes. | Total liabilities | $ | 135,776 | $ | 136,806 | |||||
Investor Information
A copy of the Partnership’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission, is available without charge at sec.gov or by written request to the Partnership at its corporate headquarters. For additional information about Behringer Harvard and its investment programs, please contact us at 866.655.3650.
| Consolidated Balance Sheets |
| (in thousands, except unit amounts) | As of | As of | ||||||
| Mar. 31, 2012 | Dec. 31, 2011 | |||||||
| Assets | ||||||||
| Real estate | ||||||||
| Land | $ | 13,459 | $ | 13,459 | ||||
| Buildings and improvements, net | 59,401 | 60,946 | ||||||
| Total real estate | 72,860 | 74,405 | ||||||
| Real estate inventory, net | 28,861 | 28,849 | ||||||
| Cash and cash equivalents | 2,830 | 3,296 | ||||||
| Restricted cash | 877 | 2,731 | ||||||
| Accounts receivable, net | 3,310 | 2,912 | ||||||
| Prepaid expenses and other assets | 823 | 828 | ||||||
| Furniture, fixtures, and equipment, net | 310 | 330 | ||||||
| Deferred financing fees, net | 536 | 591 | ||||||
| Lease intangibles, net | 2,044 | 2,084 | ||||||
| Total assets | $ | 112,451 | $ | 116,026 | ||||
| Liabilities and Equity (deficit) | ||||||||
| Liabilities | ||||||||
| Notes payable | $ | 110,824 | $ | 111,724 | ||||
| Note payable to related party | 12,018 | 12,018 | ||||||
| Accounts payable | 756 | 692 | ||||||
| Payables to related parties | 3,789 | 3,424 | ||||||
| Accrued liabilities | 8,389 | 8,948 | ||||||
| Total liabilities | 135,776 | 136,806 | ||||||
| Commitments and contingencies | ||||||||
| Equity (deficit) | ||||||||
| Partners’ capital (deficit) | ||||||||
| Limited partners–11,000,000 units authorized, 10,803,839 units issued and outstanding at March 31, 2012, and December 31, 2011 | $ | (54,894 | ) | $ | (52,909 | ) | ||
| General partners | 38,437 | 38,437 | ||||||
| Partners’ capital | (16,457 | ) | (14,472 | ) | ||||
| Noncontrolling interest (deficit) | (6,868 | ) | (6,308 | ) | ||||
| Total equity (deficit) | (23,325 | ) | (20,780 | ) | ||||
| Total liabilities and equity (deficit) | 112,451 | 116,026 | ||||||
| Consolidated Statements of Cash Flows |
| (in thousands, except per unit amounts) | 3 mos. ended Mar. 31, 2012 | 3 mos. ended Mar. 31, 2011 | ||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (2,545 | ) | $ | (5,258 | ) | ||
| Adjustments
to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 829 | 1,812 | ||||||
| Asset impairment loss | - | 2,700 | ||||||
| Gain on sale of assets | (44 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Real estate inventory | (12 | ) | (1,275 | ) | ||||
| Accounts receivable | (398 | ) | 24 | |||||
| Prepaid expenses and other assets | 5 | 16 | ||||||
| Lease intangibles | - | (682 | ) | |||||
| Accounts payable | 64 | 12 | ||||||
| Accrued liabilities | (30 | ) | (196 | ) | ||||
| Payables or receivables with related parties | 365 | 326 | ||||||
| Cash used in operating activities | (1,766 | ) | (2,521 | ) | ||||
| Cash flows from investing activities | ||||||||
| Proceeds from sale of assets | 906 | - | ||||||
| Capital expenditures for real estate | (561 | ) | 80 | |||||
| Change in restricted cash | 1,854 | (461 | ) | |||||
| Cash provided by (used in) investing activities | 2,199 | (381 | ) | |||||
| Cash flows from financing activities | ||||||||
| Proceeds from notes payable | 612 | 1,403 | ||||||
| Proceeds from note payable to related party | - | 325 | ||||||
| Payments on notes payable | (1,511 | ) | (30 | ) | ||||
| Payments on capital lease obligations | - | (17 | ) | |||||
| Financing costs | - | (2 | ) | |||||
| Contributions from general partners | - | 2,062 | ||||||
| Cash provided by (used in) financing activities | (899 | ) | 3,741 | |||||
| Net change in cash and cash equivalents | (466 | ) | 839 | |||||
| Cash and cash equivalents at beginning of period | 3,296 | 2,040 | ||||||
| Cash and cash equivalents at end of period | $ | 2,830 | $ | 2,879 | ||||
| Supplemental disclosure | ||||||||
| Interest paid, net of amounts capitalized | $ | 716 | $ | 1,107 | ||||
| Non-cash investing activities | ||||||||
| Notes receivable from noncontrolling interest holder | $ | 21 | $ | 195 | ||||
| Capital expenditures for real estate in accrued liabilities | $ | 452 | $ | 43 | ||||
| Non-cash financing activities | ||||||||
| Contributions from noncontrolling interest holder | $ | 21 | $ | 195 | ||||
Consolidated Statements of Operations
| Consolidated Statements of Operations |
| (in thousands, except per unit amounts) | 3 mos. ended | 3 mos. ended | ||||||
| March. 31, 2012 | March. 31, 2011 | |||||||
| Revenues | ||||||||
| Rental revenue | $ | 1,542 | $ | 1,104 | ||||
| Hotel revenue | 3,473 | 4,077 | ||||||
| Total revenues | 5,015 | 5,181 | ||||||
| Expenses | ||||||||
| Property operating expenses | 3,506 | 3,553 | ||||||
| Asset impairment loss | - | 2,700 | ||||||
| Interest expense, net | 2,275 | 917 | ||||||
| Real estate taxes, net | 540 | 442 | ||||||
| Property and asset management fees | 359 | 327 | ||||||
| General and administrative | 176 | 207 | ||||||
| Depreciation and amortization | 767 | 1,194 | ||||||
| Total expenses | 7,623 | 9,340 | ||||||
| Interest income | 51 | 60 | ||||||
| Loss from operations before income taxes | (2,557 | ) | (4,099 | ) | ||||
| Provision for income taxes | (32 | ) | (48 | ) | ||||
| Loss from continuing operations | (2,589 | ) | (4,147 | ) | ||||
| Income (loss) from discontinued operations | 44 | (1,111 | ) | |||||
| Net loss | (2,545 | ) | (5,258 | ) | ||||
| Noncontrolling interest in continuing operations | 573 | 283 | ||||||
| Noncontrolling interest in discontinued operations | (13 | ) | 1 | |||||
| Net loss attributable to noncontrolling interest | 560 | 284 | ||||||
| Net loss attributable to the Partnership | $ | (1,985 | ) | $ | (4,974 | ) | ||
| Amounts attributable to the Partnership | ||||||||
| Continuing operations | $ | (2,016 | ) | $ | (3,864 | ) | ||
| Discontinued operations | 31 | (1,110 | ) | |||||
| Net loss attributable to the Partnership | $ | (1,985 | ) | $ | (4,974 | ) | ||
| Basic and diluted weighted average limited partnership units outstanding | 10,804 | 10,804 | ||||||
| Net loss per limited partnership unit-basic and diluted | ||||||||
| Loss from continuing operations attributable to Partnership | $ | (0.19 | ) | $ | (0.36 | ) | ||
| Loss from discontinued operations attributable to Partnership | - | $ | (0.10 | ) | ||||
| Basic and diluted net loss per limited partnership unit | $ | (0.19 | ) | $ | (0.46 | ) | ||
This quarterly report summary contains forward-looking statements, including discussion and analysis of the financial condition of Behringer Harvard Short-Term Opportunity Fund I LP (which may be referred to as the “Fund,” the “Partnership,” “we,” “us,” or “our”) and our subsidiaries, our anticipated improvements to, and disposition of, properties, amounts of anticipated cash distributions to our investors in the future and other matters. These forward-looking statements are not historical facts but are the intent, belief, or current expectations of management based on their knowledge of the business and industry. Words such as “may,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Such factors include those described in the Risk Factors section of the Fund’s filings with the Securities and Exchange Commission. We do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future event or otherwise.
The accompanying unaudited, consolidated financial statements do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (GAAP). The financial statements include all adjustments (of a normal recurring nature) necessary to present fairly our consolidated financial position as of March 31, 2012, and December 31, 2011, and our unaudited, consolidated results of operations and cash flows for the periods ended March 31, 2012, and 2011.
| Net Operating Income (NOI)1 |
| (in thousands) | 3 mos. ended Mar. 31, 2012 | 3 mos. ended Mar. 31, 2011 | ||||||
| Total revenues | $ | 5,015 | $ | 5,181 | ||||
| Operating expenses | ||||||||
| Property operating expenses | 3,506 | 3,553 | ||||||
| Real estate taxes, net | 540 | 442 | ||||||
| Property and asset management fees | 359 | 327 | ||||||
| Cost of real estate inventory sales | - | - | ||||||
| Less: Asset management fees | (203 | ) | (148 | ) | ||||
| Total operating expenses | 4,202 | 4,174 | ||||||
| Net operating income | $ | 813 | $ | 1,007 | ||||
| Reconciliation to Net Loss |
| Net operating income | $ | 813 | $ | 1,007 | ||||
| Less: Depreciation and amortization | (767 | ) | (1,194 | ) | ||||
| General and administrative expenses | (176 | ) | (207 | ) | ||||
| Interest expense, net | (2,275 | ) | (917 | ) | ||||
| Asset management fees | (203 | ) | (148 | ) | ||||
| Asset impairment loss | - | (2,700 | ) | |||||
| Provision for income taxes | (32 | ) | (48 | ) | ||||
| Add: Interest income | 51 | 60 | ||||||
| Income (loss) from discontinued operations | 44 | (1,111 | ) | |||||
| Net loss | $ | (2,545 | ) | $ | (5,258 | ) |
| 1 | Net operating income (NOI), a non-GAAP financial measure, is defined as total revenue less property operating expenses, real estate taxes, property management fees, advertising costs, and cost of real estate inventory sales. Management believes that NOI provides an accurate measure of the Partnership’s operating performance because NOI excludes certain items that are not associated with management of our properties. NOI should not be considered as an alternative to net income (loss) or an indication of our liquidity. NOI is not indicative of funds available to fund our cash needs or our ability to make distributions and should be reviewed in connection with other GAAP measurements. To facilitate understanding of this financial measure, a reconciliation of NOI to GAAP net loss has been provided. |
Date Published 07/12 © 2012 Behringer Harvard |
1411-1 ST Q1 Report 2012 |