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 March 31, 1999
-------------------------------------------------
OR
[x] 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 33-80849
---------------------------------------------------------
Capital Preferred Yield Fund-IV, L.P.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 84-1331690
----------------------- ------------------------------------
(State of organization) (I.R.S. Employer Identification No.)
7175 West Jefferson Avenue, Suite 4000
Lakewood, Colorado 80235
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (303) 980-1000
--------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 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 .
----- -----
Exhibit Index Appears on Page 15
Page 1 of 16 Pages
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Quarterly Report on Form 10-Q
For the Quarter Ended
March 31, 1999
Table of Contents
-----------------
PART I. FINANCIAL INFORMATION PAGE
----
Item 1. Financial Statements (Unaudited)
Balance Sheets - March 31, 1999 and December 31, 1998 3
Statements of Income - Three Months Ended
March 31, 1999 and 1998 4
Statements of Cash Flows - Three Months Ended
March 31, 1999 and 1998 5
Notes to Financial Statements 6 - 8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9 - 13
Item 3. Quantitative and Qualitative Disclosures About Market Risk 13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 14
Item 6. Exhibits and Reports on Form 8-K 14
Exhibits 15
Signature 16
2
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
BALANCE SHEETS
ASSETS
March 31, December 31,
1999 1998
----------- ------------
(Unaudited)
Cash and cash equivalents $ 2,299,606 $ 2,634,551
Accounts receivable, net 647,894 465,374
Receivable from related party 193,717 216,074
Equipment held for sale or re-lease 459,491 410,599
Net investment in direct finance leases 3,834,952 3,810,382
Leased equipment, net 44,159,238 47,340,855
----------- -----------
Total assets $51,594,898 $54,877,835
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued liabilities $ 1,042,338 $ 1,080,333
Payables to affiliates 78,997 46,652
Rents received in advance 561,328 597,415
Distributions payable to partners 497,346 497,346
Discounted lease rentals 13,274,825 15,708,835
----------- -----------
Total liabilities 15,454,834 17,930,581
----------- -----------
Partners' capital:
General partner - -
Limited partners:
Class A 35,708,001 36,507,167
Class B 432,063 440,087
----------- -----------
Total partners' capital 36,140,064 36,947,254
----------- -----------
Total liabilities and partners' capital $51,594,898 $54,877,835
=========== ===========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended
March 31,
-----------------------
1999 1998
---------- ----------
REVENUE:
Operating lease rentals $4,700,453 $4,322,162
Direct finance lease income 76,968 88,347
Equipment sales margin 12,571 27,095
Interest income 24,453 64,797
---------- ----------
Total revenue 4,814,445 4,502,401
---------- ----------
EXPENSES:
Depreciation 3,751,074 3,482,767
Management fees to general partner 106,437 87,493
Direct services from general partner 47,770 26,349
General and administrative 55,017 41,169
Interest on discounted lease rentals 255,690 318,702
Provision for losses 75,000 -
---------- ----------
Total expenses 4,290,988 3,956,480
---------- ----------
NET INCOME $ 523,457 $ 545,921
========== ==========
NET INCOME ALLOCATED:
To the general partner $ 13,306 $ 19,778
To the Class A limited partners 505,050 520,820
To the Class B limited partner 5,101 5,323
---------- ----------
$ 523,457 $ 545,921
========== ==========
Net income per weighted average Class A
limited partner unit outstanding $ 1.02 $ 1.07
========== ==========
Weighted average Class A limited partner
units outstanding 496,844 485,290
========== ==========
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------
1999 1998
----------- -----------
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 5,024,516 $ 5,649,234
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment on operating leases from
affiliate (1,059,008) (9,522,061)
Investment in direct finance leases, acquired
from affiliate (535,796) (370,226)
----------- -----------
Net cash used in investing activities (1,594,804) (9,892,287)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Class A capital contributions - 4,336,754
Proceeds from Class B capital contributions - 40,000
Proceeds from discounted lease rentals - 3,994,817
Principal payments on discounted lease rentals (2,434,010) (1,976,985)
Redemptions of Class A limited partner units - (39,662)
Sales commissions paid to affiliate in connection
with the sale of Class A limited partner units - (434,326)
Non-accountable organization and offering expenses
reimbursed to the general partner in connection
with the sale of Class A limited partner units - (242,725)
Distributions to partners (1,330,647) (1,235,210)
----------- -----------
Net cash (used in) provided by financing activities (3,764,657) 4,442,663
----------- -----------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (334,945) 199,610
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,634,551 4,676,747
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,299,606 $ 4,876,357
=========== ===========
Supplemental disclosure of cash flow information-Interest
paid on discounted lease rentals $ 254,528 $ 318,702
Supplemental disclosure of noncash investing and
financing activities - Discounted lease rentals
assumed in equipment acquisitions - 434,310
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
---------------------
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
disclosures required by generally accepted accounting principles for annual
financial statements. In the opinion of the general partner, all
adjustments (consisting of normal recurring adjustments) considered
necessary for a fair presentation have been included. The balance sheet at
December 31, 1998 was derived from the audited financial statements
included in the Partnership's 1998 Form 10-K. For further information,
refer to the financial statements of Capital Preferred Yield Fund-IV, L.P.
(the "Partnership"), and the related notes, included in the Partnership's
Annual Report on Form 10-K for the year ended December 31, 1998 (the "1998
Form 10-K"), previously filed with the Securities and Exchange Commission.
RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities ("Statement
133"). Statement 133 establishes accounting and reporting standards for
derivative instruments and for hedging activities. It requires that an
entity recognize all derivatives as either assets or liabilities in the
statement of financial position and measure those instruments at fair
value. Statement 133 is effective for fiscal years beginning after June 15,
1999, with earlier application permitted. The Partnership has adopted
Statement 133 in the first quarter of 1999. The adoption has not had any
impact on its financial reporting.
2. Transactions With the General Partner and Affiliates
----------------------------------------------------
MANAGEMENT FEES PAID TO GENERAL PARTNER
In accordance with the Partnership Agreement, the General Partner earns a
management fee in connection with its management of the equipment,
calculated as a percentage of the monthly gross rentals received, and paid
monthly in arrears. As of March 31, 1999, management fees of $36,928 are
included in payables to affiliates.
DIRECT SERVICES FROM GENERAL PARTNER
The General Partner and an affiliate provide accounting, investor
relations, billing, collecting, asset management, and other administrative
services to the Partnership. The Partnership reimburses the General Partner
for these services performed on its behalf as permitted under the terms of
the Partnership Agreement. As of March 31, 1999, direct services from the
General Partner in the amount of $11,123 are included in payables to
affiliates.
6
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. Transactions With the General Partner and Affiliates, continued
----------------------------------------------------
GENERAL AND ADMINISTRATIVE EXPENSES
The General Partner and an affiliate are reimbursed for the actual cost of
administrative expenses incurred on behalf of Partnership per the terms of
the Partnership Agreement. As of March 31, 1999, administrative expenses of
$30,946 are included in payable to affiliates.
RECEIVABLE FROM RELATED PARTY
The General Partner collects and applies rental payments to the lessee's
account with the Partnership for those lessees who remit directly to the
General Partner. The rental payments are then transferred to the
Partnership, eliminating the receivable from related party balance. At the
end of March 1999, $193,717 in rents were applied by the General Partner
that were transferred to the Partnership in April 1999.
EQUIPMENT PURCHASES
During the three months ended March 31, 1999, the Partnership acquired the
equipment described below from Capital Associates International, Inc.:
<TABLE>
<CAPTION>
Total
Acquisition Equipment
Equipment Cost of Fees and Purchase
Lessee Description Equipment Reimbursements Price
-------------------------- ----------------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
Alliance Data Systems VSAT's $ 626,468 $ 21,707 $ 648,176
Allied Signal, Inc. Projector 44,301 1,535 45,836
Atmel Corporation SDI Analyzer 497,357 17,233 514,590
Consolidated Diesel Forklift 44,895 1,556 46,451
General Motors Corporation Forklift 20,495 710 21,205
General Motors Corporation Material Handling 46,578 1,614 48,192
General Motors Corporation Scrubber 23,949 830 24,779
Schratter Foods Forklift 152,001 5,267 157,268
Thomson Industries Machine Tools 85,350 2,957 88,307
----------- -------- -----------
$ 1,541,394 $ 53,409 $ 1,594,804
=========== ======== ===========
</TABLE>
As of March 31, 1999, the general partner had identified approximately
$724,000 of equipment that satisfied the Partnership's investment criteria
and is expected to be acquired during the remainder of 1999.
3. Year 2000
---------
An affiliate provides accounting and other administrative services,
including data processing services to the Partnership. The affiliate has
conducted a comprehensive review of its computer systems to identify
systems that could be affected by the Year 2000 issue. The Year 2000 issue
results from computer programs being written using two digits rather than
four to define the applicable year. Certain computer programs which have
7
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. Year 2000, continued
---------
date-sensitive software could recognize a date using "00" as the year 1900
rather than the year 2000. This could result in major system failures or
miscalculations. Certain of the affiliate's software has already been
upgraded to correctly account for the Year 2000 issue. The affiliate is
implementing additional upgrades whereby the affiliate's primary lease
tracking and accounting software will account for the Year 2000 correctly.
The affiliate expects that the new upgrades will be fully operational by
December 31, 1999, and therefore expects that it will be fully Year 2000
compliant. The affiliate does not expect any other changes required for
the Year 2000 to have a material effect on its financial position or
results of operations. As such, the affiliate has not developed any
specific contingency plans in the event it fails to complete the upgrades
by December 31, 1999. However, should the affiliate be unsuccessful in
completing the necessary upgrades by December 31, 1999, it does not expect
there will be a material adverse effect on the Partnership's financial
position or results of operations. There could be a negative impact on the
Partnership's ability to realize expected cash flows from leased equipment
on a timely basis. While it is expected that the Partnership's ability to
ultimately realize all expected cash flows will not be impacted, delays in
collecting cash flows would have a negative impact on the timing of
distributions to partners. The affiliate does not expect any Year 2000
issues relating to its customers and vendors to have a material effect on
its financial position or results of operations.
8
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
- ---------------------
Presented below are schedules (prepared solely to facilitate the discussion of
results of operations that follows) showing items of income and expense and
changes in those items derived from the Statements of Income:
Three Months
Ended March 31,
-----------------------
1999 1998 Change
---------- --------- ---------
Leasing margin $ 770,657 $ 609,040 $ 161,617
Equipment sales margin 12,571 27,095 (14,524)
Interest income 24,453 64,797 (40,344)
Management fees to general partner (106,437) (87,493) (18,944)
Direct services from general partner (47,770) (26,349) (21,421)
General and administrative expenses (55,017) (41,169) (13,848)
Provision for losses (75,000) - (75,000)
--------- --------- ---------
Net income $ 523,457 $ 545,921 $ (22,464)
========= ========= =========
LEASING MARGIN
Leasing margin consists of the following:
Three Months Ended
March 31,
----------------------------
1999 1998
----------- -----------
Operating lease rentals $ 4,700,453 $ 4,322,162
Direct finance lease income 76,968 88,347
Depreciation (3,751,074) (3,482,767)
Interest expense on discounted lease rentals (255,690) (318,702)
----------- -----------
Leasing margin $ 770,657 $ 609,040
=========== ===========
Leasing margin ratio 16% 14%
=========== ===========
Operating lease rentals and depreciation increased for the three months ended
March 31, 1999 compared to the three months ended March 31, 1998 due to higher
average monthly rents and associated depreciation in the portfolio. Interest on
discounted lease rentals decreased for the three months ended March 31, 1999
compared to the three months ended March 31, 1998 due to a net reduction in
non-recourse debt.
Leasing margin ratio fluctuates based upon (i) the mix of direct finance leases
and operating leases, (ii) remarketing activities, (iii) the method used to
finance leases added to the Partnership's lease portfolio, and (iv) the relative
age of lease types in the portfolio. Leasing margin and the related leasing
margin ratio for an operating lease financed with non-recourse debt increases
during the term of the lease since rents and depreciation are typically fixed
while interest expense declines as the related non-recourse debt principal is
repaid.
9
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations, continued
Results of Operations, continued
- ---------------------
LEASING MARGIN, continued
The ultimate profitability of the Partnership's leasing transactions is
dependent in part on interest rates at the time the leases are originated,
future equipment values, and on-going lessee creditworthiness. Because leasing
is an alternative to financing equipment purchases with debt, lease rates tend
to rise and fall with interest rates (although lease rate movements generally
lag interest rate changes in the capital markets).
EQUIPMENT SALES MARGIN
Equipment sales margin consists of the following:
Three Months Ended
March 31,
----------------------------
1999 1998
----------- -----------
Equipment sales revenue $ 378,231 $ 98,747
Cost of equipment sales (365,660) (71,652)
---------- ---------
Equipment sales margin $ 12,571 $ 27,095
========== =========
Equipment sales margin is affected by the volume and composition of equipment
that becomes available for sale. Some of the Partnership's initial leases have
expired, and the equipment is either being re-leased or sold to the lessee or to
third parties. Equipment sales margin decreased for the three months ended March
31, 1999 compared to the same period in 1998 primarily due to the composition of
equipment that was sold.
INTEREST INCOME
Interest income decreased for the three months ended March 31, 1999 compared to
the three months ended March 31, 1998 due to a decrease in invested cash.
Interest income varies due to (1) the amount of cash available for investment
(pending distribution to partners or investment in equipment purchases) and (2)
the interest rate on such invested cash.
EXPENSES
Management fees, direct services from general partner and general and
administrative expenses increased for the three months ended March 31, 1999
compared to the three months ended March 31, 1998 due to growth in the
Partnership's lease portfolio.
PROVISION FOR LOSSES
The remarketing of equipment for an amount greater than its book value is
reported as equipment sales margin (if the equipment is sold) or leasing margin
(if the equipment is re-leased). The realization of less than the carrying value
of equipment (which occurs when the equipment is remarketed subsequent to
initial lease termination) is recorded as provision for losses.
10
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations, continued
Results of Operations, continued
- ---------------------
PROVISION FOR LOSSES, continued
Residual values are established equal to the estimated value to be received from
the equipment following termination of the lease. In estimating such values, the
Partnership considers all relevant facts regarding the equipment and the lessee,
including, for example, the likelihood that the lessee will re-lease the
equipment. The nature of the Partnership's leasing activities is such that it
has credit exposure and residual value exposure and will incur losses from those
exposures in the ordinary course of business. The Partnership performs quarterly
assessments of the estimated residual value of its assets to identify any other-
than-temporary losses in value. The Partnership recorded a provision for loss of
$75,000 for the three months ended March 31, 1999 related primarily to equipment
returned to the Partnership.
Liquidity & Capital Resources
- -----------------------------
The Partnership funds its operating activities principally with cash from rents,
discounted lease rentals (non-recourse debt), interest income and sales of
off-lease equipment. Available cash and cash reserves of the Partnership are
invested in short-term government securities pending the acquisition of
equipment or distribution to partners.
During the three months ended March 31, 1999, the Partnership acquired equipment
subject to leases with a total purchase price of $1,594,804. As of March 31,
1999, the general partner had identified approximately $724,000 of additional
equipment that satisfied the Partnership's acquisition criteria and is expected
to be acquired during the remainder of 1999.
During the three months ended March 31, 1999, the Partnership declared
distributions to the Class A limited partners of $1,330,647 ($497,346 of which
was paid in April 1999). A substantial portion of such distributions is expected
to constitute a return of capital. Distributions may be characterized for tax,
accounting and economic purposes as a return of capital, a return on capital, or
a portion of both. The portion of each cash distribution which exceeds its net
income for the fiscal period may be deemed a return of capital for accounting
purposes. However, the total percentage of the partnership's return on capital
over its life will only be determined after all residual cash flows (which
include proceeds from the re-leasing and sale of equipment) have been realized
at the termination of the Partnership.
The general partner believes that the Partnership will generate sufficient cash
flows from operations during the remainder of 1999, to (1) meet current
operating requirements, (2) fund cash distributions to both the Class A and
Class B limited partners at annualized rates of 10.5% (portions of which are
expected to constitute returns of capital), and (3) reinvest in additional
equipment under leases, provided that suitable equipment can be identified and
acquired.
11
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations, continued
Liquidity & Capital Resources, continued
- -----------------------------
YEAR 2000 ISSUES
An affiliate provides accounting and other administrative services, including
data processing services to the Partnership. The affiliate has conducted a
comprehensive review of its computer systems to identify systems that could be
affected by the Year 2000 issue. The Year 2000 issue results from computer
programs being written using two digits rather than four to define the
applicable year. Certain computer programs which have date-sensitive software
could recognize a date using "00" as the year 1900 rather than the year 2000.
This could result in major system failures or miscalculations. Certain of the
affiliate's software has already been upgraded to correctly account for the Year
2000 issue. The affiliate is implementing additional upgrades whereby the
affiliate's primary lease tracking and accounting software will account for the
Year 2000 correctly. The affiliate expects that the new upgrades will be fully
operational by December 31, 1999, and therefore expects that it will be fully
Year 2000 compliant. The affiliate does not expect any other changes required
for the Year 2000 to have a material effect on its financial position or results
of operations. As such, the affiliate has not developed any specific contingency
plans in the event it fails to complete the upgrades by December 31, 1999.
However, should the affiliate be unsuccessful in completing the necessary
upgrades by December 31, 1999, it does not expect there will be a material
adverse effect on the Partnership's financial position or results of operations.
There could be a negative impact on the Partnership's ability to realize
expected cash flows from leased equipment on a timely basis. While it is
expected that the Partnership's ability to ultimately realize all expected cash
flows will not be impacted, delays in collecting cash flows would have a
negative impact on the timing of distributions to partners. The affiliate does
not expect any Year 2000 issues relating to its customers and vendors to have a
material effect on its financial position or results of operations.
New Accounting Pronouncements
- -----------------------------
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
Accounting for Derivative Instruments and Hedging Activities ("Statement 133").
Statement 133 establishes accounting and reporting standards for derivative
instruments and for hedging activities. It requires that an entity recognize all
derivatives as either assets or liabilities in the statement of financial
position and measure those instruments at fair value. Statement 133 is effective
for fiscal years beginning after June 15, 1999, with earlier application
permitted. The Partnership has adopted Statement 133 in the first quarter of
1999. The adoption has not had any impact on its financial reporting.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
- --------------------------------------------------------------------------------
1995
- ----
The statements contained in this report which are not historical facts may be
deemed to contain forward- looking statements with respect to events, the
occurrence of which involve risks and uncertainties, and are subject to factors
that could cause actual future results to differ both adversely and materially
from currently anticipated results, including, without limitation, the level of
lease originations, realization of residual values, the availability and cost of
financing sources and the ultimate outcome of any contract disputes. Certain
specific risks associated with particular aspects of the Partnership's business
are discussed under Results of Operations in this report and under Results of
Operations in the 1998 Form 10-K when and where applicable.
12
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The partnership's leases with equipment users are non-cancelable and have lease
rates which are fixed at lease inception. The partnership finances its leases,
in part, with discounted lease rentals. Discounted lease rentals are a fixed
rate debt. The partnerships other assets and liabilities are also at fixed
rates. Consequently the partnership has no interest rate risk or other market
risk exposure.
13
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
PART II.
OTHER INFORMATION
Item 1. Legal Proceedings
The Partnership is not a party to any material legal proceedings
outside the ordinary course of its business.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) The Partnership did not file any reports on Form 8-K during the
quarter ended March 31, 1999.
14
<PAGE>
Item No. Exhibit Index
27 Financial Data Schedule
15
<PAGE>
CAPITAL PREFERRED YIELD FUND-IV, L.P.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnership has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CAPITAL PREFERRED YIELD FUND-IV, L.P.
By: CAI Equipment Leasing V Corp.
Dated: May 17, 1999 By: /s/Anthony M. DiPaolo
-----------------------------
Anthony M. DiPaolo
Senior Vice President
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated balance sheets and consolidated statements of income and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 2,299,606
<SECURITIES> 0
<RECEIVABLES> 841,611
<ALLOWANCES> 0
<INVENTORY> 459,491
<CURRENT-ASSETS> 0
<PP&E> 47,994,190
<DEPRECIATION> 0
<TOTAL-ASSETS> 51,594,898
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 36,140,064
<TOTAL-LIABILITY-AND-EQUITY> 51,594,899
<SALES> 12,571
<TOTAL-REVENUES> 4,814,445
<CGS> 0
<TOTAL-COSTS> 4,290,988
<OTHER-EXPENSES> 154,207
<LOSS-PROVISION> 75,000
<INTEREST-EXPENSE> 255,690
<INCOME-PRETAX> 523,457
<INCOME-TAX> 0
<INCOME-CONTINUING> 523,457
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 523,457
<EPS-PRIMARY> 1.02
<EPS-DILUTED> 1.02
</TABLE>
