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EX-31 - CERTIFICATION PURSUANT TO RULE 13A-14(A), AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002. - REALMARK PROPERTY INVESTORS LTD PARTNERSHIP IIex31.htm
EX-32 - CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002. - REALMARK PROPERTY INVESTORS LTD PARTNERSHIP IIex32.htm
EXCEL - IDEA: XBRL DOCUMENT - REALMARK PROPERTY INVESTORS LTD PARTNERSHIP IIFinancial_Report.xls
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

FORM 10-Q


[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2012

or

[     ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission File Number: 0-11909


REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - II
(Exact name of registrant as specified in its charter)



           Delaware                                                                                                             16-1212761
(State of organization)                                                                                     (IRS Employer Identification No.)


2350 North Forest Road, Getzville, New York 14068
(Address of principal executive offices)

(716) 636-9090
(Registrant’s telephone number)

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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files)  Yes o   No x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer o  Accelerated filer o Non-accelerated filer (Do not check if a smaller reporting company) o Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes oNo x

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.Yes  oNo  x



 
 

 
Part 1 - FINANCIAL INFORMATION

Item 1 - Financial Statements


Condensed Balance Sheets
                 
           
(Unaudited)
   
           
September 30,
 
December 31,
       
2012
 
2011
    Assets              
Property and equipment, at cost
   
 $   4,870,606
 
      4,870,606
Less accumulated depreciation
   
     (3,868,413)
 
     (3,846,657)
           
      1,002,193
 
      1,023,949
Equity interest in unconsolidated joint
       
   ventures
       
      1,149,373
 
      1,129,791
Cash and equivalents
     
         377,087
 
         272,461
Accounts receivable
     
            2,597
 
            3,038
Receivable from affiliates
     
               108
 
         218,911
Other assets
       
           63,838
 
           30,906
                 
    Total assets
       
 $   2,595,196
 
      2,679,056
                 
Liabilities and Partners' Equity
         
                 
Accounts payable and accrued expenses
 
            9,017
 
           15,460
Security deposits and prepaid rent
   
           57,504
 
           64,727
Partners' equity
       
      2,528,675
 
      2,598,869
                 
Total liabilities and partners' equity
   
 $   2,595,196
 
      2,679,056
                 
                 
                 
See accompanying notes to the financial statements.
     


 






 
2

 
 
 
Condensed Statements of Operations
(Unaudited)
                     
           
       
Three months ended September 30,
 
Nine months ended September 30,
       
2012
 
2011
 
2012
 
2011
                     
Rental income
 
 $       126,703
 
 $              143,079
 
                423,833
 
          452,513
Other income
   
                791
 
                     1,183
 
                    3,179
 
             2,884
                     
    Total income
   
          127,494
 
                 144,262
 
                427,012
 
          455,397
                     
Property operating costs
          141,231
 
                 118,543
 
                383,911
 
          348,351
Administrative expense - affiliates
            22,050
 
                   21,621
 
                  63,160
 
            66,068
Other administrative expenses
            13,793
 
                     8,511
 
                  47,961
 
          122,118
Depreciation
   
             7,222
 
                     7,221
 
                  21,756
 
            21,665
                     
    Total expenses
 
          184,296
 
                 155,896
 
                516,788
 
          558,202
                     
Loss before equity in earnings of
           
  unconsolidated joint ventures
          (56,802)
 
                 (11,634)
 
                (89,776)
 
        (102,805)
                     
Equity in earnings of unconsolidated
           
  joint ventures
   
            (1,427)
 
                   10,556
 
                  19,582
 
            31,581
                     
    Net income (loss)
 
 $       (58,229)
 
                   (1,078)
 
                (70,194)
 
          (71,224)
                     
Net income (loss) per limited partnership unit
 $           (5.65)
 
                     (0.11)
 
                    (6.81)
 
              (6.91)
                     
Weighted average limited partnership
           
  units outstanding
 
            10,000
 
                   10,000
 
                  10,000
 
            10,000
                     
                     
                     
See accompanying notes top the financial Statements


 
3

 
 
Condensed Statements of Cash Flows
(Unaudited)
   
Nine months ended  September 30,
     2012    2011
         
         
Cash used in:
       
     Operating activities:        
            Net loss  $  (70,194)  $  (71,224)
    Adjustments:        
               Depreciation    21,756    21,665
               Equity in earnings of joint ventures    (19,582)    (31,581)
               Other, principally changes in other assets        
                   and liabilities    172,646    27,780
          Net cash provided by (used in ) operating activities    104,626    (53,360)
         
Cash and equivalents at beginning of period
   272,461    324,006
Cash and equivalents at end of period  $  377,087  $  270,646
         
         
         
         
         
See accompanying notes to the financial statements.
 
       
 






 
4

 
Notes to Financial Statements
Nine months ended September 30, 2012 and 2011
 
(Unaudited)

Organization

Realmark Property Investors Limited Partnership - II (the Partnership), a Delaware Limited Partnership was formed on March 25, 1982, to invest in a diversified portfolio of income producing real estate investments.  The general partners are Realmark Properties, Inc. (the corporate general partner) and Joseph M. Jayson (the individual general partner). Joseph M. Jayson is the sole stockholder of J.M. Jayson & Company Inc. Realmark Properties, Inc. is a wholly-owned subsidiary of J.M. Jayson & Company, Inc. Under the partnership agreement, the general partners and their affiliates receive compensation for services rendered and reimbursement for expenses incurred on behalf of the Partnership.

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation, have been included. The Partnership’s significant accounting policies are set forth in its December 31, 2011 Form 10-K. The interim financial statements should be read in conjunction with the financial statements included therein. The interim results should not be considered indicative of the annual results.

Property and Equipment

At September 30, 2012, the Partnership owned and operated an office complex in Michigan (Northwind Office Park), and was a partner in two joint ventures. It has a 50% interest in Research Triangle Industrial Park Joint Venture with the other 50% owned by Realmark Property Investors Limited Partnership - VI A (RPILP - VI A), an entity affiliated through common general partners.

Reclassifications

Certain amounts in the interim condensed financial statements have been reclassified to reflect a consistent presentation. This change had no effect on previously reported net loss.

Investment in Other Joint Ventures

At September 30, 2012, the Partnership also held an interest in a land joint venture with affiliated entities through common general partners.  The investment in this joint ventures relates solely to land and its value has remained at $21,181 as of September 30, 2012 and December 31, 2011.

Investment in Research Triangle Industrial Park Joint Venture

The Partnership has a 50% interest in Research Triangle Industrial Park Joint Venture (the Venture).  The joint venture owned and operated the Research Triangle Industrial Park West, an office/warehouse facility in Durham, North Carolina, which was sold in December 2006.  The joint venture agreement provides that any income, loss, gain, cash flow, or sale proceeds be allocated 50% to the Partnership and 50% to RPILP – VI A.   Summary financial information of the Venture follows:




 
5

 
 
Balance Sheet Information
                 
           
(Unaudited)
   
           
September 30,
 
December 31,
           
2012
 
2011
Assets:
               
    Cash and equivalents
     
 $        11,419
 
         488,152
    Receivable from affiliates
     
      1,780,386
 
      1,525,347
    Accrued interest receivable from affiliates
 
         464,773
 
         422,521
                 
       Total assets
       
 $   2,256,578
 
      2,436,020
                 
Liabilities:
             
    Payable to affiliates
     
                 194
 
         218,800
                 
       Total liabilities
       
                 194
 
         218,800
                 
Partners' equity:
             
    The Partnership
       
      1,128,192
 
      1,108,610
    RPILP - VI A
       
      1,128,192
 
      1,108,610
                 
       Total partners' equity
     
      2,256,384
 
      2,217,220
                 
       Total liabilities and partners' equity
   
 $   2,256,578
 
      2,436,020
                 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6

 
 
 

Operating Information
(Unaudited)
 
 
         
Three months ended September 30,
 
Nine months ended September 30,
                       
         
2012
 
2011
 
2012
 
2011
Income:
                     
    Interest income
     
 $                     10
 
 $        21,129
 
                  42,301
 
           63,381
                       
Expenses:
                     
    Interest
       
                          4
 
                 12
 
                        24
 
                 18
    Administrative
     
                    2,860
 
                  3
 
                    3,113
 
               199
         
 .
           
       Total expenses
   
                    2,864
 
                 15
 
                    3,137
 
               217
                       
       Net income
   
 $                (2,854)
 
           21,114
 
                  39,164
 
           63,164
                       
Allocation of net income:
                 
    The Partnership
     
                  (1,427)
 
           10,557
 
                  19,582
 
           31,582
    RPILP - VI A
     
                  (1,427)
 
           10,557
 
                  19,582
 
           31,582
                       
         
 $                (2,854)
 
           21,114
 
                  39,164
 
           63,164























 
7

 
 
PART I - Item 2.
Management’s Discussion and Analysis of Financial Condition and Result of Operations

Liquidity and Capital Resources

The Partnership continues to maintain a cash position adequate to fund capital improvements. Cash increased approximately $105,000 and decreased $53,000 during the nine month periods ended September 30, 2012 and 2011, respectively. The Partnership made no distributions to limited partners in the first nine months of 2012 and 2011. In accordance with the settlement of the lawsuit (Part II, Item 1), it is anticipated that with the sale of the remaining property and joint ventures, the Partnership may be in a position to make distributions to the limited partners.

Results of Operations

As compared to the same three and nine months of 2011, the Partnership's net income, excluding equity in earnings from joint ventures, decreased approximately $45,000 and increased approximately $13,000 from a net loss of $11,000 and  $103,000 in 2011 to net loss of $56,000 and net loss of  $90,000 in 2012.

Total income for the three and nine months ended September 30, 2012 decreased approximately $17,000 and $28,000 when compared to the same periods in 2011.  Total expenses increased approximately $28,000 and decreased approximately $41,000.  Property operations increased approximately $23,000 and $35,000 due to an increase in contracted services.  Other administrative expenses increased approximately $5,000 and decreased approximately $74,000 due to a decrease in legal and other professional expenses.


PART I - Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The Partnership’s cash equivalents are short-term, interest-bearing bank accounts.

PART I - Item 4.  Controls and Procedures

Disclosure Controls and Procedures: The Partnership’s management, with the participation of the Partnership’s Individual General Partner, Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) as of the end of the period covered by this report. Based on such evaluation, the Partnership’s Individual General Partner, Principal Executive Officer and Principal Financial Officer have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures are effective.

Internal Control Over Financial Reporting: There have been no significant changes in the Partnership’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934, as amended) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting. Management assessed the effectiveness of our internal control over financial reporting as of September 30, 2012. In making this assessment, our management used the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 
8

 
PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

As previously reported, the Partnership, as a nominal defendant, the General Partners of the Partnership and of affiliated public partnerships (the “Realmark Partnerships”) and the officers and directors of the Corporate General Partner, as defendants, had been involved in a class action litigation in New York State court.  The Partnership’s settlement of this litigation was described in its Annual Report on Form 10-K for the year ended December 31, 2011.

Item 5. Other Information

 
Reports on Form 8-K

      None.

Item 6.   Exhibits
 
  31. 
Certification Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
     
  32. 
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
     
 
101.INS   
XBRL Instance Document*
     
 
101.SCH   
XBRL Taxonomy Extension Schema Document*
     
 
101.CAL   
XBRL Taxonomy Extension Calculation Linkbase Document*
     
 
101.DEF   
XBRL Taxonomy Extension Definition Linkbase Document*
     
 
101.LAB   
XBRL Taxonomy Extension Label Linkbase Document*
     
 
101.PRE   
XBRL Taxonomy Extension Presentation Linkbase Document*
     
  In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.”
 











 
9

 
SIGNATURES



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.


REALMARK PROPERTY INVESTORS LIMITED PARTNERHIP - II

 
  November 14, 2012   /s/ Joseph M. Jayson                  
              Date      Joseph M. Jayson  
    Individual General Partner,  
    Principal Executive Officer and  
    Principal Financial Officer  
 
                                                                                                                                                                                           









 


















10