SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

Quarterly Report Under Section 13 or 15(d)

of the Securities Exchange Act of 1934

	For Quarter Ended June 30, 2003	Commission file number 0-11578

AMERICAN REPUBLIC REALTY FUND I

(Exact name of registrant as specified in its charter)

WISCONSIN
39-1421936
(State or other jurisdiction of

incorporation or organization
(IRS Employer

Identification Number)

2800 N. Dallas Pkwy Suite 100 

					Plano, Texas 75093-5994	
(Address of principal executive offices)

 

Registrant's telephone number, including area code: (972) 836-8000.

 

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:	Y				No:		
 

REGISTRANT IS A LIMITED PARTNERSHIP

 

				

 

 

 

 

 
**TABLE OF CONTENTS

 

 

 

Item 1. Financial Statements

 

The following Unaudited financial statements are filed herewith:

		Consolidated Balance Sheet as of June 30, 2003 and

		December 31, 2002							Page	3

	Consolidated Statements of Operations for the Three and Six 

	Months Ended June 30, 2003 and 2002					Page	4

	Consolidated Statements of Cash Flows for the Three and

	Six months Ended June 30, 2003 and 2002				Page	 5

	

Item 2. Results of Operations and Managements Discussion and Analysis of

	Financial Condition							Page	6

	Liquidity and Capital Resources						Page	7

	Other Information							Page	8

	Signatures								Page	9

 

 

The statements, insofar as they relate to the period subsequent to

December 31, 2002, are Unaudited**.**
 
** **
PART 1. FINANCIAL INFORMATION
**	Item 1. Financial Statements
 

AMERICAN REPUBLIC REALTY FUND I

Condensed Consolidated Balance Sheets
**June 30
December 31,**2003
2002**(Unaudited)**ASSETS
Real Estate assets, at cost
Land**$1,822,718 
$1,822,718 
Buildings and improvements**16,006,007 
16,006,007 **17,828,725 
17,828,725 
Less: Accumulated depreciation**(12,796,239)
(12,446,239)
Real Estate, net**5,032,486 
5,382,486 
Cash including cash investments**239,781 
214,237 
Escrow deposits**561,235 
572,601 
Prepaid Expenses**115,822 
32,194 
Deferred Financing Fees**91,771 
103,242 
TOTAL ASSETS**$6,041,095 
$6,304,760 **LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES
Mortgage and notes payable**$10,130,593 
$10,211,238 
Amounts due affiliates**(612)
1,725 
Real estate taxes payable**150,498 
0 
Security deposits**76,965 
75,028 
Accounts payable & accrued expenses**179,487 
333,000 
Total liabilities**10,536,931 
10,620,991 
PARTNERS CAPITAL (DEFICIT)
Limited Partners**(4,535,166)
(4,357,357)
General Partner**39,330 
41,126 
Total Partners Capital (Deficit)**(4,495,836)
(4,316,231)
TOTAL LIABILITIES AND PARTNER DEFICIT**$6,041,095 
$6,304,760 ** 

 

 

AMERICAN REPUBLIC REALTY FUND I

Condensed Consolidated Statement of Operations

(Unaudited)**
**Three Months Ended **Six Months Ended**June 30,**June 30,**REVENUES **2003**2002**2003**2002
Rental income**645,256 **656,907 **1,327,914 **1,331,133 
Other property**16,717 **15,589 **31,513 **33,362 **Total revenues**661,973 **672,496 **1,359,427 **1,364,495 **EXPENSES
Salaries & wages**80,677 **78,209 **177,483 **164,420 
Maintenance & repairs**73,424 **59,996 **112,911 **115,046 
Utilities **54,113 **49,980 **108,276 **101,551 
Real estate taxes**75,249 **76,248 **150,498 **152,496 
General administrative**31,859 **32,775 **54,008 **57,029 
Contract services**28,152 **27,059 **54,470 **53,612 
Insurance**27,744 **21,010 **51,435 **38,686 
Interest**199,922 **202,565 **400,524 **405,759 
Depreciation and amortization**180,736 **180,736 **361,472 **361,472 
Property management fees (a)**33,096 **33,567 **67,955 **68,105 **Total expenses**784,972 **762,145 **1,539,032 **1,518,176 **Net Income**($122,999)**($89,649)**($179,605)**($153,681)**NET INCOME PER UNIT**$ (11.18)**$ (8.15)**$ (16.33)**$ (13.97)

See Notes to Condensed Consolidated Financial Statements
** 

AMERICAN REPUBLIC REALTY FUND I

Condensed Consolidated Statement of Cash Flows**
See Notes to Condensed Consolidated Financial Statements

Unaudited

Six Months Ended
June 30,**2003
2002**CASH FLOWS FROM OPERATING ACTIVITY
Net income (loss)**($179,605)
($153,681)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization**350,000 
350,000 
Net Effect of changes in operating accounts
Escrow deposits**11,366 
119,370 
Prepaid expenses**(83,628)
(64,077)
Accrued real estate taxes**150,498 
152,496 
Security deposits**1,937 
(5,954)
Accounts payable**(153,513)
(183,962)
Other assets**11,471 
11,471 
Net cash provided by (used for) operating activities**108,526 
225,663 **CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of mortgage notes payable**(80,645)
(74,556)
Proceeds from amounts due affiliates**(2,337)
(516)
Net cash used for investing activities**(82,982)
(75,072)**NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS**25,544 
150,591 **CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD**214,237 
294,437 **CASH AND CASH EQUIVALENTS, END OF PERIOD**$239,781 
$445,028 ** 

Basis of Presentation:

	Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Partnership believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Partnership's latest annual report on Form 10-K.** 

 

Item 2. RESULTS OF OPERATIONS AND MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

SECOND QUARTER 2003 COMPARED TO SECOND QUARTER 2002

At June 30, 2003 the Partnership owned two properties with approximately 416,623 net rentable square feet. Both properties are apartment communities. The portfolio had an average occupancy of 90.2% for the second quarter of 2003, as compared to 87.4% for the second quarter of 2002.
**Revenue from property operations decreased $10,523, or 1.56%, for the second quarter of 2003, as compared to the 2002 second quarter. The decrease in rental income of $11,651 or 1.77% is primarily due to a decrease in rental rates. The increase in other income of $1,128 or 7.24% is primarily due to an increase in Late and other fee collections from the properties. The following table illustrates the components:
**Increase
Percent**(Decrease)
Change
Rental income
(11,651)
1.77%
Other property
1,128 
7.24%**Net Increase (Decrease)
(10,523)**1.56%**Property operating expenses increased $22,827 or 3.00%, for the second quarter of 2003, as compared to the same period in 2002. Insurance increased $6,734 or 32.05% in connection with the annual policy renewal. The increase in maintenance & repairs expense of $13,428 or 22.38% is represents pool repairs completed in the quarter. Utilities increased $4,133 or 8.27% primarily due to increased gas and electrical costs. The following table illustrates the components by category:
**Increase
Percent**(Decrease)
Change
Salaries & wages
2,468 
3.16%
Maintenance & repairs
13,428 
22.38%
Utilities 
4,133 
8.27%
Real estate taxes
(999)
1.31%
General administrative
(916)
2.79%
Contract services
1,093 
4.04%
Insurance
6,734********************************************************************************************************************************************************************************************************************************************************************************