<PAGE>
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, 1998 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 0-23719
------------------------------
Wells Real Estate Fund X, L.P.
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(Exact name of registrant as specified in its charter)
Georgia 58-2250093
-------------------------------------- -------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification no.)
3885 Holcomb Bridge Road, 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
------ -----
<PAGE>
Form 10-Q
---------
Wells Real Estate Fund X,L.P.
-----------------------------
INDEX
-----
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - March 31, 1998
and December 31, 1997.......................................... 3
Statement of Income for the Three
Months ended March 31, 1998 and 1997........................... 4
Statement of Partners' Capital for the Year
Ended December 31, 1997 and
for the Three Months Ended March 31, 1998...................... 5
Statement of Cash Flows for the Three Months
Ended March 31, 1998 and 1997.................................. 6
Condensed Notes to Financial Statements......................... 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations................... 10
PART II. OTHER INFORMATION................................................. 16
2
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
BALANCE SHEETS
<TABLE>
<CAPTION>
Assets March 31, 1998 December 31, 1997
------ -------------- -----------------
<S> <C> <C>
Cash and cash equivalents $ 8,965,946 $18,404,232
Investment in joint venture 12,984,740 3,662,803
Deferred project costs 458,052 912,317
Organization cost, less accumulated
amortization of $6,250 in 1997 & $7,813 in 1998 23,438 25,000
Prepaid expenses and other assets 753,892 712,392
Due from affiliates 101,419 0
----------- -----------
Total assets $23,287,487 $23,716,744
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Sales commissions payable 0 242,387
Due to affiliates 1,468 105,008
Partnership distribution payable 252,019 294,309
----------- -----------
Total liabilities 253,487 641,704
----------- -----------
Partners' capital:
General partners 338 338
Original limited partner 0 0
Limited Partners:
Class A--2,115,077 units outstanding
at March 31, 1998 18,064,845 18,019,767
Class B--597,814 units outstanding
at March 31, 1998 4,968,817 5,054,935
----------- -----------
Total partners' capital 23,034,000 23,075,040
----------- -----------
Total liabilities and partners' capital $23,287,487 $23,716,744
=========== ===========
</TABLE>
See accompanying condensed notes to financial statements
3
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
STATEMENT OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------
March 31, 1998 March 31, 1997
-------------- --------------
<S> <C> <C>
Revenues:
Interest income $168,665 $10,000
Equity in income of joint venture 61,940 0
-------- -------
230,605 10,000
Expenses:
Computer costs 1,986 1,292
Printing and notebooks 802 6,371
Administrative salaries 7,013 5,326
Office expense 1,054 853
Postage 2,439 346
Other 4,771 209
Amortization of organization costs 1,562 0
-------- -------
19,627 14,397
-------- -------
Net income (loss) $210,978 $(4,397)
======== =======
Net loss allocated to General Partners $ 0 $ (44)
Net income allocated to Class A Limited Partners $305,844 $ 0
Net loss allocated to Class B Limited Partners $(94,866) $(4,353)
Net income per weighted average
Class A Limited Partner Unit $ .15 $ 0
Net (loss) income per weighted average
Class B Limited Partner Unit $ (.16) $ (.05)
Cash distribution per Class A Limited Partner Unit $ .12 $ 0
</TABLE>
See accompanying condensed notes to financial statements.
4
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
STATEMENT OF PARTNERS' CAPITAL
FOR THE THREE MONTHS ENDED MARCH 31, 1998
AND YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
LIMITED PARTNERS
------------------------------------------------
CLASS A CLASS B TOTAL
------------------------- --------------------- GENERAL PARTNERS'
ORIGINAL UNITS AMOUNTS UNITS AMOUNTS PARTNERS CAPITAL
--------- ---------- ------------- ------- ------------ --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE,
DECEMBER 31, 1996 $ 100 0 $ 0 0 $ 0 $ 500 $ 600
Limited partner contributions 0 2,116,099 21,160,987 596,792 5,967,925 0 27,128,912
Net income (loss) 0 0 302,862 0 (24,675) (162) 278,025
Partnership distributions 0 0 (294,309) 0 0 0 (294,309)
Return of capital (100) 0 0 0 0 0 (100)
Sales commissions 0 0 (2,116,099) 0 (596,792) 0 (2,712,891)
Other offering expenses 0 0 (1,033,674) 0 (291,523) 0 (1,325,197)
----- --------- ----------- ------- ---------- ----- -----------
BALANCE,
DECEMBER 31, 1997 0 2,116,099 18,019,767 596,792 5,054,935 338 23,075,040
Net income (loss) 0 0 305,844 0 (94,866) 0 210,978
Partnership distributions 0 0 (252,018) 0 0 0 (252,018)
Class A conversion elections 0 (1,022) (8,748) 1,022 8,748 0 0
----- --------- ----------- ------- ---------- ----- -----------
BALANCE,
MARCH 31, 1998 0 2,115,077 $18,064,845 597,814 $4,968,817 338 $23,034,000
===== ========= =========== ======= ========== ===== ===========
</TABLE>
See accompanying condensed notes to financial statements.
5
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A GEORGIA PUBLIC LIMITED PARTNERSHIP)
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------
March 31, 1998 March 31, 1997
-------------- --------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 210,978 $ (4,397)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Equity in income of joint ventures (61,940) 0
Amortization of organization costs 1,562 0
Changes in assets and liabilities:
Increase in prepaid expenses and other assets (41,501) (10,000)
Decrease in due to affiliates (103,539) 33,734
----------- ----------
Net cash provided by operating activities 5,560 19,337
----------- ----------
Cash flows from investing activities:
Investment in joint ventures (8,907,149) 0
Deferred project costs paid 0 (246,042)
----------- ----------
Net cash used in investing activities (8,907,149) (246,042)
----------- ----------
Cash flows from financing activities:
Limited partners' contributions 0 6,151,038
Sales commissions paid (242,388) (535,397)
Offering costs paid 0 (307,552)
Distribution to Partners from accumulated earnings (294,309) 0
----------- ----------
Net cash (used in) provided by financing activities (536,697) 5,308,089
----------- ----------
Net (decrease) increase in cash and cash equivalents (9,438,286) 5,081,384
Cash and cash equivalents, beginning of year 18,404,232 600
----------- ----------
Cash and cash equivalents, end of period $ 8,965,946 $5,081,984
=========== ==========
Supplemental disclosure of noncash investing activities:
Deferred project costs applied to joint venture
property $ 454,266 $ 0
=========== ==========
</TABLE>
See accompanying condensed notes to financial statements.
6
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A Georgia Public Limited Partnership)
Condensed Notes to Financial Statements
March 31, 1998
(1) Summary of Significant Accounting Policies
------------------------------------------
(a) General
-----------
Wells Real Estate Fund X, L.P. (the "Partnership") is a Georgia public
limited partnership having Leo F. Wells, III and Wells Partners, L.P., as
General Partners. The Partnership was formed on June 20, 1996, for the
purpose of acquiring, developing, owning, operating, improving, leasing,
and otherwise managing for investment purposes, income producing commercial
properties.
On December 31, 1996, the Partnership commenced a public offering of up to
$35,000,000 of limited partnership units ($10.00 per unit) pursuant to a
Registration Statement on Form S-11 filed under the Securities Act of 1933.
The Partnership commenced active operations on February 4, 1997, when it
received and accepted subscriptions for 125,000 units. An aggregate
requirement of $2,500,000 of offering proceeds was reached on February 25,
1997, thus allowing for the admission of New York and Pennsylvania
investors in the Partnership. The offering was terminated on December 30,
1997, at which time the Partnership had sold 2,116,099 Class A Status
Units, and 596,792 Class B Status Units, held by a total of 1,588 and 218
Limited Partners, respectively, for total Limited Partner capital
contributions of $27,128,912. After payment of $1,085,157 in Acquisition
and Advisory Fees and expenses, payment of $4,069,338 in selling
commissions and organization and offering expenses, and $650,000 escrow
contribution on behalf of the Fund IX-Fund X Joint Venture and an
investment of $12,460,038 in the Fund IX-Fund X Joint Venture as of March
31, 1998, the Partnership was holding net offering proceeds of $8,864,379
available for investment in properties.
The Partnership owns interests in properties through equity ownership in
the following joint venture: Fund IX and Fund X Associates, a joint
venture between the Partnership and Wells Real Estate Fund IX, L.P. (the
"Fund IX-Fund X Joint Venture").
As of March 31, 1998, the Partnership owned interests in the following
properties through its ownership of the foregoing joint venture: (i) a
three story office building in Knoxville, Tennessee (the "ABB Building"),
which is owned by the Fund IX-Fund X Joint Venture; (ii) a two story office
building located in Louisville, Boulder County, Colorado (the "Ohmeda
Building"), which is owned by the Fund IX-Fund X Joint Venture; and (iii) a
three story office building located in Broomfield, Boulder County, Colorado
(the "360 Interlocken Building"), which is owned by the Fund IX-Fund X
Joint Venture.
7
<PAGE>
(b) Basis of Presentation
-------------------------
The financial statements of Wells Real Estate Fund X, L.P. (the
"Partnership") have been prepared in accordance with instructions to Form
10-Q and do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
These quarterly statements have not been examined by independent
accountants, but in the opinion of the General Partners, the statements for
the unaudited interim periods presented include all adjustments, which are
of a normal and recurring nature, necessary to present a fair presentation
of the results for such periods. For further information, refer to the
financial statements and footnotes included in the Partnership's Form 10-K
for the year ended December 31, 1997.
(2) Investment in Joint Venture
---------------------------
The Partnership owns interests in three office buildings as of March 31,
1998, through its ownership in the Fund IX-Fund X Joint Venture. The
Partnership does not have control over the operations of this Joint
Venture; however, it does exercise significant influence. Accordingly,
investment in joint venture is recorded on the equity method. For further
information on investments in joint ventures, see Form 10-K for the
Partnership for the year ended December 31, 1997.
The following describes the properties in which the Partnership owned an
interest as of March 31, 1998
FUND IX - FUND X JOINT VENTURE
-------------------------------
On March 20, 1997, the Partnership and Wells Real Estate Fund IX, L.P.
("Wells Fund IX"), a Georgia public limited partnership, affiliated with
the Partnership through common general partners, entered into a Joint
Venture Agreement known as Fund IX and Fund X Associates (the "Fund IX -
Fund X Joint Venture"). The investment objectives of Wells Fund IX are
substantially identical to those of the Partnership. The total costs to
complete the properties is anticipated to be approximately $31,618,000. As
of December 31, 1997, the Partnership had contributed $12,407,149 and Wells
Fund IX had contributed $13,921,686, for total contributions of $26,328,834
to the Fund IX-Fund X Joint Venture. At this time, the Partnership's
equity interest in the Fund IX-Fund X Joint Venture is approximately 47.1%,
and Wells Fund IX's equity interest in the Fund IX-Fund X Joint Venture is
approximately 52.9%. The Partnership has reserved sufficient funds to
complete these projects.
OHMEDA BUILDING
---------------
On February 13, 1998, the Fund IX-Fund X Joint Venture acquired a two story
office building that was completed in 1988 with approximately 106,750
rentable square feet on a 15-acre tract of land located in Louisville,
Boulder County, Colorado from Lincor Centennial Ltd., a Colorado limited
partnership. The purchase price for the Ohmeda
8
<PAGE>
Building was $10,325,000.00. The Fund IX-Fund X Joint Venture also
incurred additional acquisition expenses in connection with the purchase of
the Ohmeda Building, including attorneys' fees, recording fees and other
closing costs. Wells Fund IX contributed $3,460,192.32 to the Fund IX-Fund
X Joint Venture for its share of the purchase of the Ohmeda Building, and
the Partnership contributed $6,887,762.83 to the Fund IX-Fund X Joint
Venture for its share of the purchase of the Ohmeda Building.
The entire 106,750 rentable square feet of the Ohmeda Building is currently
under a net lease date February 26, 1987, as amended by First Amendment to
Lease dated December 3, 1987, and as amended by Second Amendment to Lease
dated October 20, 1997 (the "Lease") with Ohmeda, Inc., a Delaware
corporation. The lease was assigned to the Fund IX-Fund X Joint Venture at
the closing. The lease currently expires in January 2005, subject to (i)
Ohmeda's right to effectuate an early termination of the lease under the
terms and conditions described below, and (ii) Ohmeda's right to extend the
lease for two additional five year periods of time at the then current
market rental rates.
Ohmeda is a medical supply firm based in Boulder, Colorado and is a
worldwide leader in vascular access and haemodynamic monitoring for
hospital patients. Ohmeda also has a special products division, which
produces neonatal and other oxygen care products. Ohmeda recently extended
an agreement with Hewlett-Packard to include co-marketing and promotion of
combined Ohmeda/H-P neonatal products.
The monthly base rental payable under the lease will be $83,709.79 through
January 31, 2003; $87,890.83 from February 1, 2003 through January 31,
2004; and $92,249.79 from February 1, 2004 through January 31, 2005. Under
the lease, Ohmeda is responsible for all utilities, taxes, insurance and
other operating costs with respect to the Ohmeda Building during the term
of the lease. In addition, Ohmeda shall pay a $21,000 per year management
fee for maintenance and administrative services of the Ohmeda Building.
The Fund IX-Fund X Joint Venture, as landlord, is responsible for
maintenance of the roof, exterior and structural walls, foundations, other
structural members and floor slab, provided that the landlord's obligation
to make repairs specifically excludes items of cosmetic and routine
maintenance such as the painting of walls.
The lease contains an early termination cause that allows Ohmeda the right
to terminate the lease, subject to certain conditions, on either January
31, 2001 or January 31, 2002. In order to exercise this early termination
clause, Ohmeda must give the Fund IX-Fund X Joint Venture notice on or
before 5:00 p.m.. MST, January 31, 2000, and said notice must identify
which early termination date Ohmeda is exercising. If Ohmeda exercises its
right to terminate on January 31, 2001, then Ohmeda must tender $753,388.13
plus an amount equal to the amount of real property taxes estimated to be
payable to the landlord in 2002 for the tax year 2001 based on the most
recent assessment information available on the early termination date. If
Ohmeda exercises its right to terminate on January 31, 2002, then Ohmeda
must tender $502,258.75 plus an amount equal to the amount of real property
taxes estimated to be payable to the landlord in 2003 for the tax year 2002
based on the most recent assessment information available on the early
termination date. At the
9
<PAGE>
present time, real property taxes relating to this property are
approximately $135,500 per year. The payment of these amounts by Ohmeda
for early termination must be made on or before the 180th day prior to the
appropriate early termination date. If the amount of the real property
taxes actually assessed is greater than the amount paid by Ohmeda on the
early termination date, then Ohmeda shall pay the landlord the difference
within thirty (30) days of the receipt of landlord's demand for said
difference. If the amount of the real property taxes actually assessed is
less than the amount paid by Ohmeda on the early termination date, then
Ohmeda shall be entitled to a refund from the landlord of the difference
within thirty (30) days of the landlord's receipt of the real property tax
invoice for the appropriate tax year.
For additional information regarding the Ohmeda Building, refer to Form 8-K
of Wells Real Estate Fund X, L.P. dated February 13, 1998 (Commission File
No. 0-23719).
360 INTERLOCKEN BUILDING
------------------------
On March 20, 1998, Fund IX-Fund X Joint Venture acquired a three-story
multi-tenant office building containing approximately 51,974 rentable
square feet on a 5.1 acre tract of land in Broomfield, Boulder County,
Colorado for a purchase price of $8,275,000, excluding acquisition costs.
The 360 Interlocken Building was completed in December 1996. The first
floor has multiple tenants and contain 15,599 rentable square feet; the
second floor is leased to ODS Technologies, L.P. and contains 17,146
rentable square feet; and the third floor is leased to Transecon, Inc. and
contains 19,229 rentable square feet.
The funds used by the Fund IX-Fund X Joint Venture to acquire the 360
Interlocken Building were derived entirely from capital contributions made
by the Partnership and Wells Fund IX made to the Fund IX-Fund X Joint
Venture of $1,668,271 and $6,624,729 respectively.
For additional information regarding the 360 Interlocken Building, refer to
the Form 8-K of Wells Real Estate Fund IX, L.P. dated March 20, 1998
(Commission File No. 0-22039).
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
- -------------------------------------------------------------------------
RESULTS OF OPERATION.
- ---------------------
The following discussion and analysis should be read in conjunction with the
accompanying financial statements of the Partnership and notes thereto. This
Report contains forward-looking statements, within the meaning of Section 27A of
the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934,
including discussion and analysis of the financial condition of the Partnership,
anticipated capital expenditures required to complete certain projects, amounts
of cash distributions anticipated to be distributed to Limited Partners in the
future and certain other matters. Readers of this Report should be aware that
there are various factors that could
10
<PAGE>
cause actual results to differ materially form any forward-looking statement
made in this Report, which include construction costs which may exceed
estimates, construction delays, lease-up risks, inability to obtain new tenants
upon expiration of existing leases, and the potential need to fund tenant
improvements or other capital expenditures out of operating cash flow.
Recent Accounting Pronouncements
- --------------------------------
Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting
Comprehensive Income", requires certain transactions (e.g., unrealized
gains/losses on available for sale securities) that are not reflected in net
income to be displayed as other comprehensive income. The Statement also
requires an entity to report total comprehensive income (i.e., net income plus
other comprehensive income) for every period in which an income statement is
presented. SFAS No. 130 is effective for annual and interim periods beginning
after December 15, 1997. None of the transactions required to be reported in
other comprehensive income pertain to the Partnership; consequently, adoption of
this Statement had no impact on the partnership's disclosures.
Effective April 3, 1998, the American Institute of Certified Public Accountants
issued Statement of Position (SOP) 98-5, "Reporting on the Costs of Start-Up
Activities". SOP 98-5 is effective for fiscal years beginning after December
15, 1998, and initial application is required to be reported as a cumulative
effect of change in accounting principle. This SOP provides guidance on the
financial reporting of start-up costs and organization costs. It requires costs
of start-up activities and organization costs to be expensed as incurred.
Adoption of this Statement by the Partnership in the first quarter of 1999 may
result in the write-off of certain capitalized organization costs. Adoption of
this Statement is not expected to have a material impact on the Partnership's
results of operations and financial condition.
Results of Operations and Changes in Financial Conditions
- ---------------------------------------------------------
General
- -------
The Partnership commenced active operations on February 4, 1997, when it
received and accepted subscriptions for 125,000 units. An aggregate requirement
of $2,500,000 of offering proceeds was reached on February 25, 1997, thus
allowing for the admission of New York and Pennsylvania investors into the
Partnership. The offering was terminated on December 30, 1997. As of March 31,
1998, the Partnership had sold 2,115,077 Class A Status Units and 597,815 Class
B Status Units, held by a total of 1,588 and 220 Limited Partners respectively,
for total Limited Partner contributions of $27,128,912. After payment of
$1,085,157 in Acquisition and Advisory Fees, payment of $4,069,338 in selling
commissions and organization and offering expenses, and $650,000 escrow
contribution on behalf of the Fund IX-Fund X Joint Venture and an investment of
$12,460,038 in the Fund IX-Fund X Joint Venture, as of March 31, 1998, the
Partnership was holding net offering proceeds of $8,864,379 available for
investment in properties.
11
<PAGE>
Gross revenues of the Partnership of $230,606 for the three months ended March
31, 1998, consisted of primarily interest income earned on funds held by the
Partnership prior to the investment in properties. Expenses of the Partnership
were $19,627 and consisted primarily of printing, computer, administrative
salaries, office and partnership administrative costs.
Net earnings per weighted average unit for Class A Limited Partners was $0.15
for the three months ended March 31, 1998.
Net loss per weighted average unit for Class B Limited Partners was $0.16 for
the three months ended March 31, 1998.
Net increase in cash and cash equivalent from $5,081,984 as of March 31, 1997 to
$8,965,946 as of March 31, 1998 was the result of raising limited partnership
contributions during 1997 offset primarily by investing $8,907,149 in joint
ventures.
Cash distributions in the amount of $294,309 were made to Class A Limited
Partners during the first quarter of 1998.
The General Partners have verified that all operational computer systems are
year 2000 compliant. This includes systems supporting accounting, property
management and investor services. Also, as part of this review, all building
control systems have been verified as compliant. The current line of business
applications are based on compliant operating systems and database servers. All
of these products are scheduled for additional upgrades before the year 2000.
Therefore, it is not anticipated that the year 2000 will have significant impact
on operations.
12
<PAGE>
Property Operations
- -------------------
As of March 31, 1998, the Partnership owned interest in the following
operational properties:
The ABB Building/Fund IX-Fund X Joint Venture
- ---------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended
------------------
March 31, 1998
------------------
<S> <C>
Revenues:
Rental income $190,986
Expenses:
Depreciation 91,094
Management & leasing expenses 25,282
Operating costs, net of reimbursements 37,768
--------
154,144
--------
Net income $ 36,842
========
Occupied % 67%
Partnership's ownership % in the
Fund IX-Fund X Joint Venture 47.1%
Cash distribution to Partnership $ 26,285
Net income allocated to the Partnership $ 18,941
</TABLE>
On March 20, 1997, Wells Fund IX contributed a 5.62 acre tract of real property
in Knoxville, Knox County, Tennessee and improvements thereon (the "ABB
Property"), valued at $1,306,393. As of March 31, 1998, the Partnership had
contributed $3,835,000 and Wells Fund IX had contributed $3,836,765 toward the
development of a three story office building for total contributions of
$7,671,765.
ABB Environmental Systems, a subsidiary of ABB, Inc., occupied its leased space
of 55,000 rentable square feet comprising approximately 66% of the building in
December 1996. The initial term of the lease is 9 years and 11 months. ABB has
the option to extend the initial term of the lease for two consecutive five year
periods. The annual base rent payable during the initial term is $646,250
payable in equal monthly installments of $53,854 during the first five years and
$728,750 payable in equal monthly installments of $60,729 during the last four
years and 11 months of the initial term. The annual base rent for each extended
term will be at market rental rates. In addition to the base rent, ABB is
required to pay additional rent equal to its share of operating expenses during
the lease term.
13
<PAGE>
It is currently anticipated that the total cost to complete the project will be
approximately $7,800,000. It is currently anticipated that Wells Fund IX will
contribute $63,235 and that the Partnership will contribute $65,000 to the
remaining cost of approximately $128,235.
Since the ABB Project opened in December 1997, comparative income and expense
figures for prior years are not available.
The Ohmeda Building/Fund IX-Fund X Joint Venture
- ------------------------------------------------
<TABLE>
<CAPTION>
Two Months Ended
----------------
March 31, 1998
----------------
<S> <C>
Revenues:
Rental income $134,084
Expenses:
Depreciation 54,384
Management & leasing expenses 0
Operating costs, net of reimbursements (699)
--------
53,685
--------
Net income $ 80,399
========
Occupied % 100%
Partnership's ownership % in the
Fund IX-Fund X Joint Venture 47.1%
Cash distribution to Partnership $ 62,818
Net income allocated to the Partnership $ 41,795
</TABLE>
On February 13, 1998, Fund IX-Fund X Joint Venture acquired a two story office
building containing approximately 106,750 rentable square feet on a 15-acre
tract of land located in Louisville, Boulder County, Colorado for a purchase
price of $10,325,000 excluding acquisition costs.
The entire Ohmeda building is currently under a net lease with Ohmeda, Inc. and
was assigned to the Fund IX-Fund X Joint Venture at closing. The lease
currently expires in January 2005. The monthly base rental payable under the
lease will be $83,709.79 through January 31, 2003; $87,890.83 from February 1,
2003 through January 31, 2004; and $92,249.79 from February 1, 2004 through
January 31, 2005. Under the lease, Ohmeda is responsible for all utilities,
taxes, insurance and other operating costs with respect to the Ohmeda Building
under the term of the lease. In addition, Ohmeda shall pay a $21,000 per year
management fee for maintenance and administrative services of the Ohmeda
Building. The Fund IX-Fund X Joint Venture, as
14
<PAGE>
landlord, is responsible for maintenance of the roof, exterior and structural
walls, foundations, other structural members and floor slab, provided that the
landlord's obligation to make repairs specifically excludes items of cosmetic
and routine maintenance such as the painting of walls.
Since the Ohmeda Building was purchased in February 1998, comparative income and
expense figures are not available for the prior year.
The 360 Interlocken Building/Fund IX-Fund X Joint Venture
- ---------------------------------------------------------
<TABLE>
<CAPTION>
One Month Ended
---------------
March 31, 1998
---------------
<S> <C>
Revenues:
Rental income $26,133
Expenses:
Depreciation 23,574
Management & leasing expenses 0
Operating costs, net of reimbursements 0
-------
23,574
-------
Net income $ 2,559
=======
Occupied % 100%
Partnership's ownership % in the
Fund IX-Fund X Joint Venture 47.1%
Cash distributed to Partnership $12,315
Net income allocated to the Partnership $ 1,206
</TABLE>
On March 20, 1998, Fund IX-Fund X Joint Venture acquired a three-story multi-
tenant office building containing approximately 51,974 rentable square feet on a
5.1 acre tract of land in Broomfield, Boulder County, Colorado for a purchase
price of $8,275,000, excluding acquisition costs.
The 360 Interlocken Building was completed in December 1996. The first floor
has multiple tenants and contain 15,599 rentable square feet; the second floor
is leased to ODS Technologies, L.P. and contains 17,146 rentable square feet;
and the third floor is leased to Transecon, Inc. and contains 19,229 rentable
square feet.
Since the 360 Interlocken Building was purchased in March 1998, comparable
income and expense figures for the prior year are not available.
15
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
ITEM 6 (b). The Partnership filed a Current Report on Form 8-K dated
February 13, 1998, reporting the acquisition of the Ohmeda Building.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WELLS REAL ESTATE FUND X, L.P.
(Registrant)
Dated: May 11, 1998 By: /s/ Leo F. Wells, III
----------------------------------
Leo F. Wells, III, as Individual
General Partner and as President
and Chief Financial
Officer of Wells Capital, Inc., the
General Partner of Wells Partners, L.P.
16
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