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 0-30287
WELLS REAL ESTATE FUND XII, L.P.
(Exact name of registrant as specified in its charter)
| Georgia | 58-2438242 | |
| (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 XII, 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 XII, L.P.
(A Georgia Public Limited Partnership)
BALANCE SHEETS
| (unaudited) | ||||||
| June 30, | December 31, | |||||
| 2003 |
2002 | |||||
| ASSETS: |
||||||
| Investments in Joint Ventures |
$ | 28,410,998 | $ | 28,921,667 | ||
| Due from Joint Ventures |
461,664 | 671,076 | ||||
| Cash and cash equivalents |
180,227 | 30,471 | ||||
| Accounts receivable |
3,407 | 2,127 | ||||
| Total assets |
$ | 29,056,296 | $ | 29,625,341 | ||
| LIABILITIES AND PARTNERS’ CAPITAL: |
||||||
| Liabilities: |
||||||
| Partnership distributions payable |
$ | 589,544 | 662,251 | |||
| Accounts payable |
24,260 | 3,931 | ||||
| Total liabilities |
613,804 | 666,182 | ||||
| Partners’ capital: |
||||||
| Limited partners: |
||||||
| Cash Preferred—2,858,396 and 2,856,396 units outstanding as of June 30, 2003 and December 31, 2002, respectively |
25,208,776 | 25,158,289 | ||||
| Tax Preferred—702,723 and 704,723 units outstanding as of June 30, 2003 and December 31, 2002, respectively |
3,233,716 | 3,800,870 | ||||
| Total partners’ capital |
28,442,492 | 28,959,159 | ||||
| Total liabilities and partners’ capital |
$ | 29,056,296 | $ | 29,625,341 | ||
See accompanying notes
3
WELLS REAL ESTATE FUND XII, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF INCOME
| (unaudited) | (unaudited) | |||||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||||||
| June 30, 2003 |
June 30, 2002 |
June 30, 2003 |
June 30, 2002 |
|||||||||||||
| REVENUES: |
||||||||||||||||
| Equity in income of Joint Ventures (Note 2) |
$ | 395,535 | $ | 477,163 | $ | 824,646 | $ | 924,908 | ||||||||
| Other income |
0 | 0 | 262 | 628 | ||||||||||||
| 395,535 | 477,163 | 824,908 | 925,536 | |||||||||||||
| EXPENSES: |
||||||||||||||||
| Partnership administration |
85,277 | 95,490 | 115,311 | 109,049 | ||||||||||||
| Legal and accounting |
5,961 | 2,427 | 9,944 | 9,363 | ||||||||||||
| Other general and administrative |
2,196 | 1,632 | 3,546 | 3,455 | ||||||||||||
| 93,434 | 99,549 | 128,801 | 121,867 | |||||||||||||
| NET INCOME |
$ | 302,101 | $ | 377,614 | $ | 696,107 | $ | 803,669 | ||||||||
| NET INCOME ALLOCATED TO CASH PREFERRED LIMITED PARTNERS |
$ | 580,370 | $ | 650,353 | $ | 1,252,474 | $ | 1,353,925 | ||||||||
| NET LOSS ALLOCATED TO TAX PREFERRED LIMITED PARTNERS |
$ | (278,269 | ) | $ | (272,739 | ) | $ | (556,367 | ) | $ | (550,256 | ) | ||||
| NET INCOME PER WEIGHTED AVERAGE CASH PREFERRED LIMITED PARTNER UNIT |
$ | 0.20 | $ | 0.23 | $ | 0.44 | $ | 0.48 | ||||||||
| NET LOSS PER WEIGHTED AVERAGE TAX PREFERRED LIMITED PARTNER UNIT |
$ | (0.40 | ) | $ | (0.37 | ) | $ | (0.79 | ) | $ | (0.74 | ) | ||||
| CASH DISTRIBUTION PER CASH PREFERRED LIMITED PARTNER UNIT |
$ | 0.21 | $ | 0.24 | $ | 0.42 | $ | 0.48 | ||||||||
| WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING: |
||||||||||||||||
| CASH PREFERRED LIMITED PARTNER UNIT |
2,858,396 | 2,829,896 | 2,858,396 | 2,813,851 | ||||||||||||
| TAX PREFERRED LIMITED PARTNER UNIT |
702,723 | 731,223 | 702,723 | 747,268 | ||||||||||||
See accompanying notes
4
WELLS REAL ESTATE FUND XII, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF PARTNERS’ CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 2002 AND
FOR THE SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
| Limited Partners |
Total Partners’ Capital |
||||||||||||||||
| Cash Preferred |
Tax Preferred |
||||||||||||||||
| Units |
Amounts |
Units |
Amounts |
||||||||||||||
| BALANCE at December 31, 2001 |
2,778,607 | $ | 24,613,370 | 782,512 | $ | 5,450,424 | $ | 30,063,794 | |||||||||
| Net income (loss) |
0 | 2,655,622 | 0 | (1,107,728 | ) | 1,547,894 | |||||||||||
| Partnership distributions |
0 | (2,652,529 | ) | 0 | 0 | (2,652,529 | ) | ||||||||||
| Tax preferred conversion elections |
77,789 | 541,826 | (77,789 | ) | (541,826 | ) | 0 | ||||||||||
| BALANCE at December 31, 2002 |
2,856,396 | 25,158,289 | 704,723 | 3,800,870 | 28,959,159 | ||||||||||||
| Net income (loss) |
0 | 1,252,474 | 0 | (556,367 | ) | 696,107 | |||||||||||
| Partnership distributions |
0 | (1,212,774 | ) | 0 | 0 | (1,212,774 | ) | ||||||||||
| Tax preferred conversion elections |
2,000 | 10,787 | (2,000 | ) | (10,787 | ) | 0 | ||||||||||
| BALANCE at June 30, 2003 (unaudited) |
2,858,396 | $ | 25,208,776 | 702,723 | $ | 3,233,716 | $ | 28,442,492 | |||||||||
See accompanying notes
5
WELLS REAL ESTATE FUND XII, 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 |
$ | 696,107 | $ | 803,669 | ||||
| Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
| Equity in income of Joint Ventures |
(824,646 | ) | (924,908 | ) | ||||
| Changes in assets and liabilities: |
||||||||
| Due to affiliates |
0 | 60,000 | ||||||
| Accounts receivable |
(1,280 | ) | (1,601 | ) | ||||
| Accounts payable |
20,329 | (1,392 | ) | |||||
| Net cash used in operating activities |
(109,490 | ) | (64,232 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Distributions received from Joint Ventures |
1,544,727 | 1,370,457 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
| Distributions to partners |
(1,285,481 | ) | (1,323,514 | ) | ||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
149,756 | (17,289 | ) | |||||
| CASH AND CASH EQUIVALENTS, beginning of period |
30,471 | 32,627 | ||||||
| CASH AND CASH EQUIVALENTS, end of period |
$ | 180,227 | $ | 15,338 | ||||
| SUPPLEMENTAL DISCLOSURES OF NONCASH ACTIVITIES: |
||||||||
| Due from Joint Ventures |
$ | 461,664 | $ | 709,988 | ||||
| Partnership distributions payable |
$ | 589,544 | $ | 673,285 | ||||
See accompanying notes