UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2003
OR
o 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
000-50256
HARTMAN COMMERCIAL PROPERTIES REIT
(Exact name of registrant as specified in its charter)
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Texas |
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76-0594970 |
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(State or other
jurisdiction of |
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(IRS Employer |
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1450 W. Sam Houston Parkway N.,
Suite 100 |
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(Address of principal executive offices) |
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Registrant’s telephone number, including area code: (713) 467-2222 |
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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.
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Yes ý |
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No o |
Indicated by checkmark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
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Yes o |
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No ý |
The number of the registrant’s Common Shares of Beneficial Interest outstanding at November 14, 2003 was 4,907,107.
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Consolidated Balance Sheets as of September 30, 2003 (unaudited) and December 31, 2002 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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CERTIFICATIONS |
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Hartman Commercial Properties REIT and Subsidiary
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September
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December
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(Unaudited) |
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Assets |
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Real estate |
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Land |
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$ |
24,044,499 |
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$ |
24,044,499 |
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Buildings and improvements |
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94,329,704 |
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92,984,637 |
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118,374,203 |
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117,029,136 |
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Less accumulated depreciation |
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(10,520,912 |
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(7,735,355 |
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Real estate, net |
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107,853,291 |
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109,293,781 |
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Cash and cash equivalents |
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763,009 |
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6,091,699 |
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Escrows and acquisition deposits |
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2,863,060 |
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2,891,300 |
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Note receivable |
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694,400 |
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421,890 |
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Receivables |
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Accounts receivable, net of allowance for doubtful accounts of $419,500 and $391,500 as of September 30, 2003 and December 31, 2002, respectively |
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99,658 |
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339,044 |
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Accrued rent receivable |
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2,067,514 |
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1,700,076 |
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Due from affiliates |
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3,613,649 |
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2,847,600 |
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Receivables, net |
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5,780,821 |
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4,886,720 |
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Deferred costs, net |
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2,922,931 |
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2,918,210 |
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Prepaid expenses and other assets |
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215,038 |
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95,583 |
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Total assets |
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$ |
121,092,550 |
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$ |
126,599,183 |
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See notes to consolidated financial statements.
2
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September
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December
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(Unaudited) |
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Liabilities and Shareholders’ Equity |
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Liabilities |
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Notes payable |
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$ |
34,531,382 |
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$ |
34,440,000 |
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Note payable to affiliate |
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— |
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3,278,000 |
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Accounts payable and accrued expenses |
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2,737,925 |
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3,308,345 |
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Due to affiliates |
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766,584 |
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864,487 |
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Tenants’ security deposits |
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1,076,842 |
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1,117,705 |
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Dividends payable |
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1,226,777 |
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1,226,777 |
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Other liabilities |
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1,016,460 |
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1,016,460 |
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Total liabilities |
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41,355,970 |
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45,251,774 |
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Minority interests of unit holders in Operating Partnership; 4,065,840 units at September 30, 2003 and December 31, 2002 |
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37,937,590 |
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38,598,491 |
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Commitments and Contingencies |
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— |
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— |
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Shareholders’ equity |
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Preferred shares, $0.001 par value per share; 10,000,000 shares authorized; none issued and outstanding at September 30, 2003 and December 31, 2002 |
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— |
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— |
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Common shares, $0.001 par value per share; 100,000,000 shares authorized; 4,907,107 issued and outstanding at September 30, 2003 and December 31, 2002 |
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4,907 |
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4,907 |
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Additional paid-in capital |
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45,529,255 |
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45,529,255 |
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Accumulated deficit |
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(3,735,172 |
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(2,785,244 |
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Total shareholders’ equity |
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41,798,990 |
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42,748,918 |
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Total liabilities and shareholders’ equity |
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$ |
121,092,550 |
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$ |
126,599,183 |
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See notes to consolidated financial statements.
3
Hartman Commercial Properties REIT and Subsidiary
Consolidated Statements of Income
(Unaudited)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenues |
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