<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
<TABLE>
<CAPTION>
<S> <C>
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 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)
Georgia 58-2250093
------------------------------------------------------------------------------------------------------
(State or other jurisdiction of incorporation or (I.R.S. Employer Identification Number)
organization)
6200 The Corners Pkwy., Norcross, Georgia 30092
------------------------------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 449-7800
---------------------------------------------------
------------------------------------------------------------------------------------------------------
(Former name, former address, and former fiscal year, if changed since last report)
</TABLE>
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
<TABLE>
<CAPTION>
Page No.
----------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets--June 30, 2000 and December 31, 1999 3
Statements of Income for the Three and Six Months Ended June 30, 2000
and 1999 4
Statements of Partners' Capital for the Year Ended December 31, 1999 and
for the Six Months Ended June 30, 2000 5
Statements of Cash Flows for the Six Months Ended June 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
</TABLE>
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<PAGE>
WELLS REAL ESTATE FUND X, L.P.
(A Georgia Public Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
----------- ------------
<S> <C> <C>
ASSETS:
Investment in joint ventures (Note 2) $21,022,067 $21,341,949
Cash and cash equivalents 225,127 278,514
Due from affiliates 560,485 498,296
Deferred project costs 16,759 18,363
----------- ------------
Total assets $21,824,438 $22,137,122
=========== ============
LIABILITIES AND PARTNERS' CAPITAL:
Liabilities:
Partnership distribution payable $ 540,584 $ 518,288
----------- ------------
Partners' capital:
Limited partners:
Class A--2,186,701 units outstanding at June 30, 2000 and
2,166,966 units at December 31, 1999 18,732,670 18,553,200
Class B--526,190 units outstanding at June 30, 2000 and
545,925 units at December 31, 1999 2,551,184 3,065,634
----------- ------------
Total partners' capital 21,283,854 21,618,834
----------- ------------
Total liabilities and partners' capital $21,824,438 $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 Six Months Ended
--------------------- -----------------------
June 30 June 30 June 30 June 30
2000 1999 2000 1999
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES:
Equity in income of joint ventures $ 379,779 $ 313,173 $ 764,033 $ 660,370
--------- --------- ---------- ----------
EXPENSES:
Computer costs 3,026 2,247 6,093 5,067
Partnership administration 14,483 23,206 27,265 42,322
Legal and accounting 6,600 10,858 16,493 18,816
Amortization of organization costs 0 1,563 0 3,125
--------- --------- ---------- ----------
24,109 37,874 49,851 69,330
--------- --------- ---------- ----------
NET INCOME $ 355,670 $ 275,299 $ 714,182 $ 591,040
========= ========= ========== ==========
NET INCOME ALLOCATED TO CLASS A
LIMITED PARTNERS $ 561,090 $ 452,672 $1,120,748 $1,026,328
========= ========= ========== ==========
NET (LOSS) ALLOCATED TO CLASS B
LIMITED PARTNERS $(205,420) $(177,373) $ (406,566) $ (435,288)
========= ========= ========== ==========
NET INCOME PER CLASS A WEIGHTED
AVERAGE LIMITED PARTNER UNIT $ .26 $ .21 $ .52 $ .47
========= ========= ========== ==========
NET (LOSS) PER CLASS B WEIGHTED
AVERAGE LIMITED PARTNER UNIT $ (.39) $ (.32) $ (.76) $ (.77)
========= ========= ========== ==========
CASH DISTRIBUTION PER CLASS A
LIMITED PARTNER UNIT $ .24 $ .23 $ .48 $ .48
========= ========= ========== ==========
</TABLE>
See accompanying condensed notes to financial statements.
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<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 SIX MONTHS ENDED JUNE 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 1,120,748 0 (406,566) 714,182
Partnership distributions 0 (1,049,162) 0 0 (1,049,162)
Class B conversions 19,735 107,884 (19,735) (107,884) 0
--------- ----------- ------- ---------- -----------
BALANCE, June 30, 2000 2,186,701 $18,732,670 526,190 $2,551,184 $21,283,854
========= =========== ======= ========== ===========
</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>
Six Months Ended
-------------------------
June 30, June 30,
2000 1999
------------ -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 714,182 $ 591,040
Adjustments to reconcile net income to net cash used in operating activities:
Changes in assets and liabilities:
Equity in earnings of joint ventures (764,033) (660,370)
Amortization of organization costs 0 3,125
Decrease in account payable 0 (3,500)
Decrease in prepaid expenses and other assets 0 851
----------- -----------
Net cash used in operating activities (49,851) (68,855)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions received from joint ventures 1,061,819 1,122,151
Investment in joint ventures (38,489) 0
----------- -----------
Net cash provided by investing activities 1,023,330 1,122,151
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distribution to partners from accumulated earnings (1,026,866) (1,064,459)
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (53,387) (11,163)
CASH AND CASH EQUIVALENTS, beginning of year 278,514 270,262
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 225,127 $ 259,099
=========== ===========
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES:
Deferred project costs applied to joint venture property $ 1,604 $ 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
JUNE 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 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 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 $21,754,886 in the Fund X-XI Joint
Venture and the Fund IX-X-XI-REIT Joint Venture, as of June 30, 2000, the
Partnership was holding net offering proceeds of $219,531 available for
investment in properties.
As of June 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 June 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 "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 "Lucent Technologies Building"), which is owned by the
Fund IX-X-XI-REIT Joint Venture; (vi) a one-story office and warehouse
building located in Fountain Valley, California (the "Cort
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<PAGE>
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 June 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 June 30, 2000, the developed properties owned by the Partnership were
100% occupied, as compared to 99.7% occupied at June 30, 1999. Gross
revenues of the Partnership increased to $764,033 from $660,370 for the six
months ended June 30, 2000 and 1999, respectively. The increase was
-8-
<PAGE>
primarily due to increased earnings from the Fund IX-X-XI-REIT and the Fund
X-XI Joint Ventures. Expenses of the Partnership decreased to $49,851 for
the six months ended June 30, 2000, as compared to $69,330 for the six
months ended June 30, 1999. This decrease was due largely to a decrease in
partnership administration expenses in general and more specifically
administrative salaries.
Net income per unit for Class A Limited Partners was $.26 for the three
months ended June 30, 2000 and $.21 for 1999. Net loss per unit for Class B
Limited Partners was $.39 for the three months ended June 30, 2000 as
compared to $.32 for the same period in 1999.
The Partnership's distribution per unit for Class A Limited Partners for
the second quarter of 2000 was $.24 per unit as compared to $.23 for the
same period in 1999.
The Partnership currently anticipates that distributions will continue to
be paid on a quarterly basis on a level at least consistent with 1999
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 June 30, 2000, the Partnership was holding $219,531
available for investment in additional properties.
-9-
<PAGE>
2. PROPERTY OPERATIONS
As of June 30, 2000, the Partnership owned interests in the following
operational properties:
The ABB Building/Fund IX-X-XI-REIT Joint Venture
<TABLE>
Three Months Ended Six Months Ended
-------------------- --------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Rental income $291,417 $261,987 $606,582 $522,079
Interest income 15,976 16,681 33,704 31,741
-------- -------- -------- --------
307,393 278,668 640,286 553,820
-------- -------- -------- --------
Expenses:
Depreciation 98,454 134,100 196,908 268,200
Management and leasing expenses 23,395 29,504 75,955 61,406
Other operating expenses (9,264) 25,829 (42,634) 3,707
-------- -------- -------- --------
112,585 189,433 230,229 333,313
-------- -------- -------- --------
Net income $194,808 $ 89,235 $410,057 $220,507
======== ======== ======== ========
Occupied percentage 100% 98.28% 100% 98.28%
======== ======== ======== ========
Partnership's ownership percentage 48.27% 48.45% 48.27% 48.45%
======== ======== ======== ========
Cash distribution to the Partnership $141,532 $118,000 $291,023 $235,727
======== ======== ======== ========
Net income allocated to the Partnership $ 93,994 $ 81,233 $197,790 $161,611
======== ======== ======== ========
</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 distributions to the IX-X-
XI-REIT Joint Venture during the second quarter of 2000, their ownership
interest decreased due to greater cash contributions by Wells Fund IX.
-10-
<PAGE>
The Lucent Technologies Building/Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Rental income $145,752 $145,752 $291,504 $291,504
-------- -------- -------- --------
Expenses:
Depreciation 45,801 45,801 91,602 91,602
Management and leasing expenses 5,370 5,370 10,740 10,739
Other operating expenses 4,538 9,184 8,019 12,198
-------- -------- -------- --------
55,709 60,355 110,361 114,539
-------- -------- -------- --------
Net income $ 90,043 $ 85,397 $181,143 $176,965
======== ======== ======== ========
Occupied percentage 100% 100% 100% 100%
======== ======== ======== ========
Partnership's ownership percentage 48.27% 48.45% 48.27% 48.45%
======== ======== ======== ========
Cash distributed to the Partnership $ 59,992 $ 57,996 $120,936 $119,968
======== ======== ======== ========
Net income allocated to the Partnership $ 43,446 $ 41,379 $ 87,376 $ 86,470
======== ======== ======== ========
</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 second quarter of 2000, their ownership
interest decreased due to greater cash contributions by Wells Fund IX.
-11-
<PAGE>
The Ohmeda Building/Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Rental income $256,828 $256,829 $513,657 $513,657
-------- -------- -------- --------
Expenses:
Depreciation 81,576 81,576 163,152 163,152
Management and leasing expenses 11,829 12,058 28,830 23,675
Other operating expenses 53,401 (4,450) 80,995 (4,087)
-------- -------- -------- --------
146,806 89,184 272,977 182,740
-------- -------- -------- --------
Net income $110,022 $167,645 $240,680 $330,917
======== ======== ======== ========
Occupied percentage 100% 100% 100% 100%
======== ======== ======== ========
Partnership's ownership percentage 48.27% 48.45% 48.27% 48.45%
======== ======== ======== ========
Cash distribution to the Partnership $ 89,676 $118,000 $189,269 $235,727
======== ======== ======== ========
Net income allocated to the Partnership $ 53,965 $ 81,233 $116,070 $161,611
======== ======== ======== ========
</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 due to an appeal in 2000 was offset by a common area
maintenance reimbursement credit to the tenant.
Even though the Partnership made additional cash contributions to the IX-X-
XI-REIT Joint Venture during the second quarter of 2000, their 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 Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Rental income $222,255 $207,758 $428,444 $414,279
-------- -------- -------- --------
Expenses:
Depreciation $ 71,670 $ 71,670 $143,340 143,340
Management and leasing expenses 35,810 17,755 56,717 35,619
Other operating cost (35,614) 12,884 (52,534) 10,633
-------- -------- -------- --------
71,866 102,309 147,523 189,592
-------- -------- -------- --------
Net income $150,389 $105,449 $280,921 $224,687
======== ======== ======== ========
Occupied percentage 100% 100% 100% 100%
======== ======== ======== ========
Partnership's ownership percentage 48.27% 48.45% 48.27% 48.45%
======== ======== ======== ========
Cash distribution to the Partnership $107,798 $ 85,100 $205,955 $178,238
======== ======== ======== ========
Net income allocated to the Partnership $ 72,564 $ 51,096 $135,508 $109,689
======== ======== ======== ========
</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 June 30, 2000 increased in 2000, over 1999, due to an
increase in net income. Even though the Partnership made additional cash
contributions to the IX-X-XI-REIT Joint Venture during the second quarter
of 2000, their ownership interest decreased due to greater cash
contributions by Wells Fund IX.
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<PAGE>
The Iomega Building/Fund IX-X-XI-REIT Joint Venture
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Rental income $168,250 $123,873 $336,500 $247,746
-------- -------- -------- --------
Expenses:
Depreciation 55,062 48,495 110,124 96,990
Management and leasing expenses 7,280 3,735 14,560 9,338
Other operating expenses 5,219 4,238 10,367 2,525
-------- -------- -------- --------
67,561 56,468 135,051 108,853
-------- -------- -------- --------
Net income $100,689 $ 67,405 $201,449 $138,893
======== ======== ======== ========
Occupied percentage 100% 100% 100% 100%
======== ======== ======== ========
Partnership's ownership percentage 48.27% 48.45% 48.27% 48.45%
======== ======== ======== ========
Cash distributed to the Partnership $ 72,817 $ 54,283 $145,624 $112,743
======== ======== ======== ========
Net income allocated to the Partnership $ 48,582 $ 32,661 $ 97,170 $ 68,643
======== ======== ======== ========
</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 IX-X-
XI-REIT Joint Venture during the second quarter of 2000, their 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 Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Rental income $198,886 $198,886 $397,771 $397,771
-------- -------- -------- --------
Expenses:
Depreciation 46,641 46,641 93,282 93,282
Management and leasing expenses 7,590 7,590 15,180 15,180
Other operating expenses (7,241) (5,281) 3,930 13,453
-------- -------- -------- --------
46,990 59,512 112,392 121,915
-------- -------- -------- --------
Net Income $151,896 $139,374 $285,379 $275,856
======== ======== ======== ========
Occupied percentage 100% 100% 100% 100%
======== ======== ======== ========
Partnership's ownership percentage 32.8% 32.8% 32.8% 32.8%
======== ======== ======== ========
Cash distributed to the Partnership $ 62,123 $ 58,015 $118,206 $115,082
======== ======== ======== ========
Net Income allocated to the Partnership $ 49,078 $ 45,715 $ 93,938 $ 90,481
======== ======== ======== ========
</TABLE>
Rental income, depreciation, and management and leasing expenses remained
stable in 2000, as compared to 1999, while other operating expenses were
lower due to an increase in CAM 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 Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Rental income $225,195 $225,211 $450,390 $450,421
-------- -------- -------- --------
Expenses:
Depreciation 71,382 71,382 142,764 142,764
Management and leasing expenses 9,175 9,343 18,350 18,667
Other operating expenses 2,842 6,315 6,612 7,315
-------- -------- -------- --------
83,399 87,040 167,726 168,746
-------- -------- -------- --------
Net income $141,796 $138,171 $282,664 $281,675
======== ======== ======== ========
Occupied percentage 100% 100% 100% 100%
======== ======== ======== ========
Partnership's ownership percentage 12.8% 12.8% 12.8% 12.8%
======== ======== ======== ========
Cash distributed to the Partnership $ 26,280 $ 25,055 $ 52,442 $ 50,792
======== ======== ======== ========
Net income allocated to the Partnership $ 18,150 $ 17,686 $ 36,181 $ 36,054
======== ======== ======== ========
</TABLE>
Rental income, net income and distributions to the Partnership remained
stabled in 2000, as compared to 1999.
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PART II. OTHER INFORMATION
ITEM 6 (b.) No reports on Form 8-K were filed during the second 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: August 11, 2000 By: /s/ Leo F. Wells, III
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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.
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