<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 September 30, 2000 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.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Georgia 58-2250093
----------------------------------------------------------------- --------------------------------------------------
(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
---------------------------------------------------
</TABLE>
________________________________________________________________________________
(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.
(A Georgia Public Limited Partnership)
INDEX
Page No.
----------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets--September 30, 2000 and December 31, 1999 3
Statements of Income for the Three and Nine Months Ended
September 30, 2000 and 1999 4
Statements of Partners' Capital for the Year Ended
December 31, 1999 and for the Nine Months Ended
September 30, 2000 5
Statements of Cash Flows for the Nine Months Ended
September 30, 2000 and 1999 6
Condensed Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION 17
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<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A Georgia Public Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
--------------- ---------------
<S> <C> <C>
ASSETS:
Investment in joint ventures (Note 2) $ 20,884,457 $ 21,341,949
Cash and cash equivalents 193,234 278,514
Due from affiliates 570,361 498,296
Deferred project costs 15,088 18,363
Prepaid expenses 13,101 0
--------------- ---------------
Total assets $ 21,676,241 $ 22,137,122
=============== ===============
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Partnership distribution payable $ 545,385 $ 518,288
--------------- ---------------
Partners' capital:
Limited partners:
Class A--2,198,001 units outstanding at September 30, 2000 and
2,166,966 units at December 31, 1999 18,851,044 18,553,200
Class B--514,890 units outstanding at September 30, 2000 and
545,925 units at December 31, 1999 2,279,812 3,065,634
--------------- ---------------
Total partners' capital 21,130,856 21,618,834
--------------- ---------------
Total liabilities and partners' capital $ 21,676,241 $ 22,137,122
=============== ===============
</TABLE>
See accompanying condensed notes to financial statements.
-3-
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------- -------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
REVENUES:
Equity in income of joint ventures
Interest income $ 390,694 $ 350,686 $ 1,154,727 $ 1,011,056
6,504 0 6,504 0
-------------- -------------- -------------- --------------
397,198 350,686 1,161,231 1,011,056
EXPENSES:
Computer costs 2,354 2,558 8,447 7,625
Partnership administration 11,417 8,488 38,682 54,124
Legal and accounting 615 3,892 17,108 19,394
Amortization of organization costs 0 4,687 0 7,812
-------------- -------------- -------------- --------------
14,386 19,625 64,236 88,955
-------------- -------------- -------------- --------------
NET EARNINGS $ 382,812 $ 331,061 $ 1,096,994 $ 922,101
============== ============== ============== ==============
NET INCOME ALLOCATED TO CLASS A LIMITED
PARTNERS $ 590,666 $ 557,270 $ 1,711,414 $ 1,583,598
============== ============== ============== ==============
NET LOSS ALLOCATED TO CLASS B LIMITED
PARTNERS $ (207,854) $ (226,209) $ (614,420) $ (661,497)
============== ============== ============== ==============
NET INCOME PER CLASS A WEIGHTED AVERAGE
LIMITED PARTNER UNIT $ 0.27 $ 0.26 $ 0.78 $ 0.73
============== ============== ============== ==============
NET LOSS PER CLASS B WEIGHTED AVERAGE
LIMITED PARTNER UNIT $ (0.40) $ (0.41) $ (1.19) $ (1.19)
============== ============== ============== ==============
CASH DISTRIBUTION PER CLASS A LIMITED
PARTNER UNIT $ 0.24 $ 0.24 $ 0.72 $ 0.72
============== ============== ============== ==============
</TABLE>
See accompanying condensed notes to financial statements.
-4-
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1999
AND THE NINE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Limited Partners
-----------------------------------------------------
Class A Class B Total
---------------------------- ---------------------- Partners'
Units Amounts Units Amounts Capital
------------- ------------ --------- ---------- ------------
<S> <C> <C> <C> <C> <C>
BALANCE, December 31, 1998 2,125,804 $ 18,227,829 587,087 $ 4,252,776 $ 22,480,605
Net income (loss) 0 2,084,229 0 (891,911) 1,192,318
Partnership distributions 0 (2,054,089) 0 0 (2,054,089)
Class B conversions 41,162 295,231 (41,162) (295,231) 0
------------ ------------ --------- ----------- ------------
BALANCE, December 31, 1999 2,166,966 18,553,200 545,925 3,065,634 21,618,834
Net income (loss) 0 1,711,414 0 (614,420) 1,096,994
Partnership distributions 0 (1,584,972) 0 0 (1,584,972)
Class B conversions 32,035 179,955 (32,035) (179,955) 0
Class A conversions (1,000) (8,553) 1,000 8,553 0
------------ ------------ --------- ----------- ------------
BALANCE, September 30, 2000 2,198,001 $ 18,851,044 514,890 $ 2,279,812 $ 21,130,856
============ ============ ========= =========== ============
</TABLE>
See accompanying condensed notes to financial statements.
-5-
<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
------------------------------------------
September 30, September 30,
2000 1999
------------------ ------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,096,994 $ 922,101
Adjustments to reconcile net income to net cash used in
operating activities:
Equity in earnings of joint ventures (1,154,727) (1,011,056)
Amortization of organization costs 0 7,812
Changes in assets and liabilities:
Prepaid expenses (13,101) 1,850
Accounts payable 0 (3,500)
-------------- -------------
Net cash (used in) operating activities (70,834) (82,793)
-------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions received from joint ventures 1,622,037 1,629,983
Investment in joint ventures (78,608) 0
-------------- -------------
Net cash provided by investing activities 1,543,429 1,629,983
-------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners from accumulated earnings (1,157,875) (1,558,232)
-------------- -------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (85,280) (11,042)
CASH AND CASH EQUIVALENTS, beginning of year 278,514 270,262
-------------- -------------
CASH AND CASH EQUIVALENTS, end of period $ 193,234 $ 259,220
============== =============
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
Deferred project costs applied to joint venture property $ 3,275 $ 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
SEPTEMBER 30, 2000
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 September 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 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. 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 1,593 and 219 Class A and Class B 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 an aggregate investment of $21,795,003 in the Fund X-XI Joint
Venture and the Fund IX-X-XI-REIT Joint Venture, as of September 30, 2000,
the Partnership was holding net offering proceeds of $179,414 available for
investment in properties.
As of September 30, 2000, the Partnership owned interests in properties
through its ownership in the following joint ventures: (i) Fund IX-X-XI-
REIT Associates, a joint venture among the Partnership, Wells Real Estate
Fund IX, L.P., Wells Real Estate Fund XI, L.P., and Wells Operating
Partnership, L.P. (the "Fund IX-X-XI-REIT Joint Venture"), and (ii) Fund X-
XI Associates, a joint venture between the Partnership and Wells Real
Estate Fund XI, L.P. (the "Fund X-XI Joint Venture"). Wells Operating
Partnership, L.P. ("Wells OP") is a Delaware limited partnership having
Wells Real Estate Investment Trust, Inc. (the "Wells REIT"), a Maryland
corporation, as its general partner.
As of September 30, 2000, the Partnership owned interests in the following
properties through its ownership of the foregoing joint ventures: (i) a
three-story office building in Knoxville, Tennessee (the "Alstom Power-
Knoxville Building"), formerly the ABB Building, which is owned by the Fund
IX-X-XI-REIT Joint Venture; (ii) a two-story office building located in
Louisville, Boulder County, Colorado (the "Ohmeda Building"), which is
owned by the Fund IX-X-XI-REIT Joint Venture; (iii) a three-story office
building located in Broomfield, Boulder County, Colorado (the "360
Interlocken Building"), which is owned by the Fund IX-X-XI-REIT Joint
Venture; (iv) a one-story warehouse facility located in Ogden, Utah (the
"Iomega Building"), which is owned by the Fund IX-X-XI-REIT Joint Venture;
(v) a one-story office building located in Oklahoma City, Oklahoma (the
"Avaya Building"), formerly the Lucent Technologies Building, which is
owned by the Fund IX-X-XI-REIT Joint Venture; (vi) a one-story office
-7-
<PAGE>
and warehouse building located in Fountain Valley, California (the "Cort
Building"), which is owned by Wells/Orange County Associates (the "Cort
Joint Venture"), a joint venture between the Fund X-XI Joint Venture and
Wells Operating Partnership, L.P.; and (vii) a two-story warehouse and
office building located in Fremont, California (the "Fairchild Building"),
which is owned by Wells/Fremont Joint Venture (the "Fremont Joint
Venture"), a joint venture between the Fund X-XI Joint Venture and Wells
OP.
(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, 1999.
2. Investment in Joint Ventures
The Partnership owns interests in seven office buildings as of September
30, 2000 through its ownership in the Fund IX-X-XI-REIT Joint Venture and
the Fund X-XI Joint Venture. The Partnership does not have control over the
operations of the joint ventures; however, it does exercise significant
influence. Accordingly, investment in joint ventures is recorded using the
equity method. For further information on its investments in joint
ventures, see Form 10-K for the Partnership for the year ended December 31,
1999.
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 Section 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 cause actual results to differ materially from any forward-looking
statements made in this report, which include construction costs which may
exceed estimates, construction delays, lease-up risks, inability to obtain
new tenants upon the expiration of existing leases, and the potential need
to fund tenant improvements or other capital expenditures out of operating
cash flow.
1. RESULTS OF OPERATIONS AND CHANGES IN FINANCIAL CONDITIONS
General
As of September 30, 2000, the developed properties owned by the Partnership
were 100% occupied, as compared to 99.7% occupied at September 30, 1999.
Gross revenues of the Partnership increased to
-8-
<PAGE>
$1,161,231 from $1,011,056 for the nine months ended September 30, 2000 and
1999, respectively. This increase in revenues was primarily due to
increased earnings from the Fund IX-X-XI-REIT, the Fund X-XI Joint
Ventures, and interest income. Expenses of the Partnership decreased to
$64,236 for the nine months ended September 30, 2000, as compared to
$88,955 for the nine months ended September 30, 1999. This decrease was due
largely to a decrease in partnership administration expenses and
administrative salaries.
Net income per unit for Class A Limited Partners was $.27 for the three
months ended September 30, 2000 as compared to $.26 for the same period in
1999. Net loss per unit for Class B Limited Partners was $.40 for the three
months ended September 30, 2000 as compared to $.41 for the same period in
1999.
The Partnership's distributions for Class A Limited Partners for the third
quarter of 2000 and 1999 were $.24 per unit.
The Partnership currently anticipates that distributions will continue to
be paid on a quarterly basis on a level at least consistent with 2000
distributions.
The Partnership expects to continue to meet its short-term liquidity
requirements generally through net cash provided by operations which the
Partnership believes will continue to be adequate to meet both operating
requirements and distributions to limited partners. At this time, given the
nature of the joint ventures in which the Partnership has invested, there
are no known improvements or renovations to the properties expected to be
funded from cash flow from operations.
The Partnership expects to make future real estate investments, directly or
through investments in joint ventures, from limited partners' capital
contributions. As of September 30, 2000, the Partnership was holding
$179,414 available for investment in additional properties.
-9-
<PAGE>
2. PROPERTY OPERATIONS
As of September 30, 2000, the Partnership owned interests in the following
operational properties:
The Alstom Power-Knoxville Building (formerly the ABB Building)/
Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------------ ---------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
----------------- ----------------- ---------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 288,969 $ 261,986 $ 895,551 $ 784,065
Interest income 19,871 15,024 53,575 46,765
---------------- --------------- -------------- -------------
308,840 277,010 949,126 830,830
---------------- --------------- -------------- -------------
Expenses:
Depreciation 98,454 135,499 295,362 403,699
Management and leasing expenses 36,277 32,260 112,232 93,666
Other operating expenses (26,544) (17,097) (69,178) (13,390)
---------------- --------------- -------------- -------------
108,187 150,662 338,416 483,975
---------------- --------------- -------------- -------------
Net income $ 200,653 $ 126,348 $ 610,710 $ 346,855
================ =============== ============== =============
Occupied percentage 100% 98% 100% 98%
================ =============== ============== =============
Partnership's ownership percentage 48.33% 48.45% 48.33% 48.45%
================ =============== ============== =============
Cash distribution to the Partnership $ 144,090 $ 127,722 $ 435,113 $ 366,308
================ =============== ============== =============
Net income allocated to the Partnership $ 95,944 $ 61,194 $ 294,735 $ 169,048
================ =============== ============== =============
</TABLE>
Rental income increased in 2000, over 1999, due primarily to the increased
occupancy level of the property. Total expenses decreased due to a decrease
in depreciation expense. This decrease resulted from an accelerated
depreciation on tenant improvement for a short-term lease in 1999 for
23,092 square feet. Other operating expenses are negative due to an offset
of tenant reimbursements in operating costs, as well as management and
leasing fee reimbursements. Tenants are billed an estimated amount for the
current year common area maintenance which is then reconciled the following
year and the difference billed to the tenant. Net income and cash
distributions increased in 2000, over 1999, due to a combination of
increased rental income and decreased expenses.
Even though the Partnership made additional cash contributions to the IX-X-
XI-REIT Joint Venture during the third quarter of 2000, its percentage
ownership interest decreased due to greater cash contributions by Wells
Fund IX.
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<PAGE>
The Avaya Building (formerly the Lucent Technologies Building)/
Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
----------------------------------- ----------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 145,752 $ 145,752 $ 437,256 $ 437,256
------------- ------------ ------------ ------------
Expenses:
Depreciation 45,801 45,801 137,403 137,403
Management and leasing expenses 5,369 5,370 16,109 16,109
Other operating expenses 1,669 1,766 9,688 13,964
------------- ------------ ------------ ------------
52,839 52,937 163,200 167,476
------------- ------------ ------------ ------------
Net income $ 92,913 $ 92,815 $ 274,056 $ 269,780
============= ============ ============ ============
Occupied percentage 100% 100% 100% 100%
============= ============ ============ ============
Partnership's ownership percentage 48.33% 48.45% 48.33% 48.45%
============= ============ ============ ============
Cash distribution to the Partnership $ 61,458 $ 61,561 $ 182,394 $ 181,528
============= ============ ============ ============
Net income allocated to the Partnership $ 44,889 $ 44,952 $ 132,265 $ 131,423
============= ============ ============ ============
</TABLE>
Rental income, depreciation and management and leasing expenses remained stable
in 2000, as compared to 1999, while other operating expenses are slightly lower,
due primarily to a one-time charge for consulting fees in 1999 which did not
occur in 2000.
Even though the Partnership made additional cash contributions to the
IX-X-XI-REIT Joint Venture during the third quarter of 2000, its percentage
ownership interest decreased due to greater cash contributions by Wells Fund IX.
-11-
<PAGE>
Ohmeda Building/Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------------ -----------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
----------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 256,829 $ 256,829 $ 770,486 $ 770,486
------------- ------------ ------------ -------------
Expenses:
Depreciation 81,576 81,576 244,728 244,728
Management and leasing expenses 12,826 11,618 41,656 35,293
Other operating expenses (7,585) 3,899 73,410 (188)
------------- ------------ ------------ -------------
86,817 97,093 359,794 279,833
------------- ------------ ------------ -------------
Net income $ 170,012 $ 159,736 $ 410,692 $ 490,653
============= ============ ============ =============
Occupied percentage 100% 100% 100% 100%
============= ============ ============ =============
Partnership's ownership percentage 48.33% 48.45% 48.33% 48.45%
============= ============ ============ =============
Cash distribution to the Partnership $ 118,798 $ 114,110 $ 308,067 $ 349,837
============= ============ ============ =============
Net income allocated to the Partnership $ 82,139 $ 77,362 $ 198,209 $ 238,973
============= ============ ============ =============
</TABLE>
Net income decreased in 2000, as compared to 1999, due to an overall increase in
expenses. Operating expenses increased significantly due in part to a
significant rise in real estate taxes, which stemmed from the revaluation of the
property by Boulder County authorities in 1999. A later reduction in taxes
resulting from an appeal in 2000 was offset by a common area maintenance
reimbursement credit to the tenant.
Rental income remained stable for the three and nine months ended September 30,
2000, as compared to the same period in 1999. Total expenses decreased for the
three-month period ended September 30, 2000, as compared to the same period for
1999, due largely to other operating expenses being negative. This was due to an
offset of tenant reimbursements in operating costs, as well as management and
leasing fee reimbursements. Cash distributions and net income allocated to the
Partnership for the three-month period ended September 30, 2000 increased
slightly, as compared to 1999.
Even though the Partnership made additional cash contributions to IX-X-XI-REIT
Joint Venture during the third quarter of 2000, its percentage ownership
interest decreased due to greater cash contributions by Wells Fund IX.
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<PAGE>
The 360 Interlocken Building/Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------------ -----------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
----------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 207,454 $ 207,791 $ 635,898 $ 622,070
------------- -------------- ------------- -------------
Expenses:
Depreciation 71,670 71,670 215,010 215,010
Management and leasing expenses 27,019 18,899 83,736 54,518
Other operating expenses (2,165) (5,291) (54,699) 5,342
------------- -------------- ------------- -------------
96,524 85,278 244,047 274,870
------------- -------------- ------------- -------------
Net income $ 110,930 $ 122,513 $ 391,851 $ 347,200
============= ============== ============= =============
Occupied percentage 100% 100% 100% 100%
============= ============== ============= =============
Partnership's ownership percentage 48.33% 48.45% 48.33% 48.45%
============= ============== ============= =============
Cash distribution to the Partnership $ 88,474 $ 93,321 $ 294,429 $ 271,558
============= ============== ============= =============
Net income allocated to the Partnership $ 53,594 $ 59,333 $ 189,102 $ 169,022
============= ============== ============= =============
</TABLE>
Rental income increased due to a tenant occupying additional space previously
leased to another tenant at a lower rate. Other operating expenses are negative
due to an offset of tenant reimbursements in operating costs, as well as
management and leasing fee reimbursement. Tenants are billed an estimated amount
for current year common area maintenance which is then reconciled the following
year and the difference billed to the tenants. Due to these CAM reimbursements,
management and leasing fees increased since these fees are charged only on
actual receipts received.
Cash distributions and net income allocated to the Partnership for the quarter
ended September 30, 2000 decreased in 2000, as compared to 1999, due to a
decrease in net income. Even though the Partnership made additional cash
contributions to the IX-X-XI-REIT Joint Venture during the third quarter of
2000, its percentage ownership interest decreased due to greater cash
contributions by Wells Fund IX.
-13-
<PAGE>
The Iomega Building/Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------------ -----------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
----------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 168,250 $ 150,009 $ 504,750 $ 397,755
------------- ------------- ------------- -------------
Expenses:
Depreciation 55,062 48,495 165,186 145,485
Management and leasing expenses 7,319 8,291 21,879 17,629
Other operating expenses 2,253 1,290 12,620 3,815
------------- ------------- ------------- -------------
64,634 58,076 199,685 166,929
------------- ------------- ------------- -------------
Net income $ 103,616 $ 91,933 $ 305,065 $ 230,826
============= ============= ============= =============
Occupied percentage 100% 100% 100% 100%
============= ============= ============= =============
Partnership's ownership percentage 48.33% 48.45% 48.33% 48.45%
============= ============= ============= =============
Cash distribution to the Partnership $ 74,328 $ 66,137 $ 219,952 $ 177,591
============= ============= ============= =============
Net income allocated to the Partnership $ 50,061 $ 44,526 $ 147,231 $ 112,393
============= ============= ============= =============
</TABLE>
Rental income increased in 2000, as compared to 1999, due to the completion of
the parking lot complex in the second quarter of 1999. Total expenses increased
in 2000, over 1999, due to an increase in depreciation and real estate tax
expenses relating to the new parking lot. Cash distributions increased in 2000,
over 1999, due primarily to the increase in net income.
Even though the Partnership made additional cash contributions to the Fund
IX-X-XI-REIT Joint Venture during the third quarter of 2000, its percentage
ownership interest decreased due to greater cash contributions by Wells Fund IX.
-14-
<PAGE>
Cort Building/Wells/Orange County Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ ------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
============= ============ ============ ============
<S> <C> <C> <C> <C>
Revenues:
Rental income $198,885 $198,885 $596,656 $596,656
------------ ------------ ------------ ------------
Expenses:
Depreciation 46,641 46,641 139,923 139,923
Management and leasing expenses 8,701 7,590 23,881 22,770
Other operating expenses 6,445 5,993 10,375 19,446
------------ ------------ ------------ ------------
61,787 60,224 174,179 182,139
------------ ------------ ------------ ------------
Net income $137,098 $138,661 $422,477 $414,517
============ ============ ============ ============
Occupied percentage 100% 100% 100% 100%
============ ============ ============ ============
Partnership's ownership percentage 32.8% 32.8% 32.8% 32.8%
============ ============ ============ ============
Cash distribution to the Partnership $ 57,269 $ 57,110 $175,475 $172,192
============ ============ ============ ============
Net income allocated to the Partnership $ 44,966 $ 45,491 $138,906 $135,973
============ ============ ============ ============
</TABLE>
Rental income, depreciation, and management and leasing expenses remained stable
in 2000, as compared to 1999, while other operating expenses were lower in 2000
due to an increase in common area maintenance reimbursements billed in 2000 to
the tenants. Tenants are billed an estimated amount for common area maintenance
which is then reconciled the following year, and the difference is billed to the
tenant.
-15-
<PAGE>
Fairchild Building/Wells/Fremont Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------------ ------------------------------
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $225,195 $225,210 $675,585 $675,631
------------ ------------ ------------ ------------
Expenses:
Depreciation 71,382 71,382 214,146 214,146
Management and leasing expenses 9,175 9,303 27,525 27,970
Other operating expenses 3,244 6,457 9,856 13,772
------------ ------------ ------------ ------------
83,801 87,142 251,527 255,888
------------ ------------ ------------ ------------
Net income $141,394 $138,068 $424,058 $419,743
============ ============ ============ ============
Occupied percentage 100% 100% 100% 100%
============ ============ ============ ============
Partnership's ownership percentage 12.8% 12.8% 12.8% 12.8%
============ ============ ============ ============
Cash distribution to the Partnership $ 26,229 $ 26,507 $ 78,671 $ 77,299
============ ============ ============ ============
Net income allocated to the Partnership $ 18,098 $ 17,673 $ 54,279 $ 53,727
============ ============ ============ ============
</TABLE>
Rental income, net income and distributions to the Partnership remained stable
in 2000, as compared to 1999.
-16-
<PAGE>
PART II. OTHER INFORMATION
ITEM 6 (b.) No reports on Form 8-K were filed during the third quarter of 2000.
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: November 10, 2000 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.
-17-
