SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended June 30, 2003
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 0-49633
WELLS REAL ESTATE FUND XIII, L.P.
(Exact name of registrant as specified in its charter)
| Georgia | 58-2438244 | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
| 6200 The Corners Pkwy., Norcross, Georgia |
30092 | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant’s telephone number, including area code | (770) 449-7800 | |
(Former name, former address, and former 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 ¨
WELLS REAL ESTATE FUND XIII, L.P.
(A Georgia Public Limited Partnership)
TABLE OF CONTENTS
| Page No. | ||||||
| PART I. |
||||||
| Item 1. |
Financial Statements | |||||
| Balance Sheets—June 30, 2003 (unaudited) and December 31, 2002 |
3 | |||||
| 4 | ||||||
| 5 | ||||||
| Statements of Cash Flows for the Six Months Ended June 30, 2003 (unaudited) and 2002 (unaudited) |
6 | |||||
| 7 | ||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
12 | ||||
| Item 3. | 15 | |||||
| Item 4. |
15 | |||||
| PART II. |
16 | |||||
2
WELLS REAL ESTATE FUND XIII, L.P.
(A Georgia Public Limited Partnership)
BALANCE SHEETS
| (unaudited) | ||||||
| June 30, 2003 |
December 31, 2002 | |||||
| ASSETS: |
||||||
| Investment in Joint Venture (Note 2) |
$ | 16,910,747 | $ | 17,177,001 | ||
| Cash and cash equivalents |
14,918,679 | 6,296,043 | ||||
| Deferred project costs |
624,251 | 256,100 | ||||
| Due from Joint Venture |
372,239 | 201,131 | ||||
| Total assets |
$ | 32,825,916 | $ | 23,930,275 | ||
| LIABILITIES AND PARTNERS’ CAPITAL: |
||||||
| Liabilities: |
||||||
| Partnership distributions payable |
$ | 340,478 | $ | 253,697 | ||
| Accounts payable |
15,150 | 74,598 | ||||
| Due to affiliates |
0 | 133,860 | ||||
| Total liabilities |
355,628 | 462,155 | ||||
| Partners’ capital: |
||||||
| Limited partners: |
||||||
| Cash Preferred—3,026,471 units and 2,201,817 units outstanding as of June 30, 2003 and December 31, 2002, respectively |
26,522,651 | 19,215,466 | ||||
| Tax Preferred—748,678 units and 521,472 units outstanding as of June 30, 2003 and December 31, 2002, respectively |
5,947,637 | 4,252,654 | ||||
| Total partners’ capital |
32,470,288 | 23,468,120 | ||||
| Total liabilities and partners’ capital |
$ | 32,825,916 | $ | 23,930,275 | ||
See accompanying notes
3
WELLS REAL ESTATE FUND XIII, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF INCOME
| (unaudited) Three Months Ended |
(unaudited) Six Months Ended |
|||||||||||||||
| June 30, 2003 |
June 30, 2002 |
June 30, 2003 |
June 30, 2002 |
|||||||||||||
| REVENUES: |
||||||||||||||||
| Equity in income of Joint Venture |
$ | 218,118 | $ | 129,195 | $ | 471,069 | $ | 256,938 | ||||||||
| Interest income |
36,140 | 7,051 | 63,352 | 15,423 | ||||||||||||
| 254,258 | 136,246 | 534,421 | 272,361 | |||||||||||||
| EXPENSES: |
||||||||||||||||
| Partnership administration |
31,432 | 28,879 | 73,749 | 44,693 | ||||||||||||
| Legal and accounting |
9,037 | 2,765 | 18,030 | 7,533 | ||||||||||||
| Other general and administrative |
1,569 | 1,425 | 2,876 | 2,840 | ||||||||||||
| 42,038 | 33,069 | 94,655 | 55,066 | |||||||||||||
| NET INCOME |
$ | 212,220 | $ | 103,177 | $ | 439,766 | $ | 217,295 | ||||||||
| NET INCOME ALLOCATED TO CASH PREFERRED LIMITED PARTNERS |
$ | 363,028 | $ | 176,484 | $ | 741,382 | $ | 363,735 | ||||||||
| NET LOSS ALLOCATED TO TAX PREFERRED LIMITED PARTNERS |
$ | (150,808 | ) | $ | (73,307 | ) | $ | (301,616 | ) | $ | (146,440 | ) | ||||
| NET INCOME PER WEIGHTED AVERAGE CASH PREFERRED LIMITED PARTNER UNIT |
$ | 0.12 | $ | 0.15 | $ | 0.27 | $ | 0.30 | ||||||||
| NET LOSS PER WEIGHTED AVERAGE TAX PREFERRED LIMITED PARTNER UNIT |
$ | (0.20 | ) | $ | (0.32 | ) | $ | (0.45 | ) | $ | (0.65 | ) | ||||
| CASH DISTRIBUTIONS PER CASH PREFERRED LIMITED PARTNER UNIT |
$ | 0.11 | $ | 0.14 | $ | 0.24 | $ | 0.28 | ||||||||
| WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING: |
||||||||||||||||
| CASH PREFERRED LIMITED PARTNER UNITS |
3,026,471 | 1,176,560 | 2,730,792 | 1,213,660 | ||||||||||||
| TAX PREFERRED LIMITED PARTNER UNITS |
748,678 | 229,084 | 663,797 | 226,333 | ||||||||||||
See accompanying notes
4
WELLS REAL ESTATE FUND XIII, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF PARTNERS’ CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 2002
AND THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
| Limited Partners |
Total Partners’ Capital |
||||||||||||||||
| Cash Preferred |
Tax Preferred |
||||||||||||||||
| Units |
Amounts |
Units |
Amounts |
||||||||||||||
| BALANCE, December 31, 2001 |
880,001 | $ | 7,704,052 | 191,522 | 1,626,894 | $ | 9,330,946 | ||||||||||
| Net income (loss) |
0 | 795,851 | 0 | (317,466 | ) | 478,385 | |||||||||||
| Partnership distributions |
0 | (804,408 | ) | 0 | 0 | (804,408 | ) | ||||||||||
| Limited partner contributions |
1,314,716 | 13,147,155 | 337,050 | 3,370,500 | 16,517,655 | ||||||||||||
| Sales commissions and discounts |
0 | (1,288,932 | ) | 0 | (272,455 | ) | (1,561,387 | ) | |||||||||
| Offering costs |
0 | (391,955 | ) | 0 | (101,116 | ) | (493,071 | ) | |||||||||
| Return of capital |
7,100 | 53,703 | (7,100 | ) | (53,703 | ) | 0 | ||||||||||
| BALANCE, December 31, 2002 |
2,201,817 | 19,215,466 | 521,472 | 4,252,654 | 23,468,120 | ||||||||||||
| Net income (loss) |
0 | 741,382 | 0 | (301,616 | ) | 439,766 | |||||||||||
| Partnership distributions |
0 | (644,488 | ) | 0 | 0 | (644,488 | ) | ||||||||||
| Limited partner contributions |
810,154 | 8,101,544 | 241,706 | 2,417,058 | 10,518,602 | ||||||||||||
| Sales commissions and discounts |
0 | (766,466 | ) | 0 | (229,688 | ) | (996,154 | ) | |||||||||
| Offering costs |
0 | (243,036 | ) | 0 | (72,522 | ) | (315,558 | ) | |||||||||
| Tax preferred conversions |
14,500 | 118,249 | (14,500 | ) | (118,249 | ) | 0 | ||||||||||
| BALANCE, June 30, 2003 (unaudited) |
3,026,471 | $ | 26,522,651 | 748,678 | $ | 5,947,637 | $ | 32,470,288 | |||||||||
See accompanying notes
5
WELLS REAL ESTATE FUND XIII, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF CASH FLOWS
| (unaudited) | ||||||||
| Six Months Ended |
||||||||
| June 30, 2003 |
June 30, 2002 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income |
$ | 439,766 | $ | 217,295 | ||||
| Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
| Equity in income of Joint Venture |
(471,069 | ) | (256,938 | ) | ||||
| Changes in assets and liabilities: |
||||||||
| Due to affiliates |
(76,100 | ) | 0 | |||||
| Accounts payable |
(11,242 | ) | (25,076 | ) | ||||
| Net cash used in operating activities |
(118,645 | ) | (64,719 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Distributions received from Joint Venture |
566,215 | 244,702 | ||||||
| Deferred project costs paid |
(393,228 | ) | (238,513 | ) | ||||