<PAGE> 1
POST EFFECTIVE AMENDMENT
NO. 1 TO
FORM S-11
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
--------------------------
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
(Exact name of registrant as specified in governing instrument)
50 Rockefeller Plaza
New York, New York 10020
(Address of principal executive offices)
--------------------------
William Polk Carey
Corporate Property Associates 14 Incorporated
50 Rockefeller Plaza
New York, New York 10020
(Name and address of agent for services)
--------------------------
Copy to:
Michael B. Pollack, Esquire
Reed Smith Shaw & McClay
2500 One Liberty Place
Philadelphia, Pennsylvania 19103
If any of the securities being registered on this form are to be
offered on a delayed or continuous basis pursuant to rule 415 under the
Securities Act of 1933 check the following box: /X/
<PAGE 2>
CALCULATION OF REGISTRATION FEE
---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Proposed
Proposed Maximum
Title of Securities Amount Being Maximum Opening Aggregate
Being Registered Registered Price Per Share Offering Price
---------------- ---------- --------------- --------------
<S> <C> <C> <C>
Common Stock 30,000,000 $10.00 $300,000.
</TABLE>
The Registrant hereby amends this registration statement on such date
or dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment which specifically states that this registration
statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until this registration statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
<PAGE 3>
2 of 163
<PAGE> 2
CORPORATE PROPERTY ASSOCIATES 14
INCORPORATED
SUPPLEMENT DATED MARCH 2, 1998 TO
PROSPECTUS DATED NOVEMBER 10, 1997
(HEREINAFTER THE "PROSPECTUS")
SUMMARY OF THE SUPPLEMENT
DESCRIPTION OF PROPERTIES (PAGE 2)
This section sets forth information on the Company's
investment in a property leased to Etec Systems, Inc.
DESCRIPTION OF SHARES (PAGE 4)
This section provides information relating to the repurchase
of shares by the Company and the Company's transfer agent.
THE OFFERING (PAGE 4)
This section sets forth information on the sale of Shares.
Capitalized terms not defined herein will have the meanings
ascribed to them in the Prospectus.
<PAGE> 3
DESCRIPTION OF THE PROPERTIES
PROPERTY LEASED TO ETEC SYSTEMS, INC.
General
On February 3, 1998, a limited liability company (the "LLC"),
in which Corporate Property Associates 12 Incorporated ("CPA(R):12") and
Corporate Property Associates 14 Incorporated (the "Company") are the sole
members, agreed to construct for Etec Systems, Inc. ("Etec") a 129,000 square
foot manufacturing facility located on a parcel of land in Hayward, California
(the "Etec Facility").
Concurrently with the agreement to construct the Etec
Facilities by the Company, the LLC entered into a net lease (the "Etec Lease")
and Construction Agency Agreement with Etec for the Etec Facility. Under the
Construction Agency Agreement, Etec will supervise and manage the construction,
installation, and completion of the Etec Facility. After completion of the
construction, the Etec Facility is expected to be suitable and adequate for the
uses for which it was intended. The cost of the Etec Facility will be
depreciated for tax purposes over a 40-year period on a straight line basis.
CPA(R):12 has a 99.99% interest in the LLC and the Company has
a .001% interest. The Company has an option to purchase up to a 49.99% interest
in the LLC. CPA(R):12 has the right to require the Company to purchase an
interest in the LLC of up to 49.99%, but in no event will the Company be
required to invest in excess of 10% of the Gross Offering Proceeds in the LLC.
The Etec Facility is part of a larger campus of buildings
occupied by Etec. The remainder of the campus (the "Additional Facilities") is
owned outright by CPA(R):12 and the Company will not obtain an interest in those
properties through an investment in the LLC.
PURCHASE TERMS
The Company's share of the cost of constructing the Etec
Facility, including the Acquisition Fee payable to an Affiliate of the Advisor,
will not exceed approximately $24,037,000, an amount less than 49.99% of the
leased fee Appraised Value of the Etec Facility. The LLC is obligated to pay an
Acquisition Fee of $601,974 to an Affiliate of the Advisor for the Company's
share of the investment. The Advisor will receive a Subordinated Acquisition Fee
of $480,712, payable over an eight year period, but only if the Company
satisfies the Preferred Return.
DESCRIPTION OF THE LEASE
General
The Etec Lease is absolutely net and bondable and in normal
financeable form. Etec will pay maintenance, insurance, taxes and all other
expenses associated with the operation
-2-
<PAGE> 4
and maintenance of the Etec Facility, except for the Etec Subsidiary's debt
service and income taxes. In the opinion of management of the Company, the Etec
Facility will be adequately covered by insurance.
Term
The remaining initial term of the Etec Lease expires on May
31, 2004, followed by three five-year renewal terms and one eighth-month renewal
term (each, an "Extended Term") which may be exercised at the option of Etec.
Rent
The initial annual rent ("Basic Rent") for the Etec Facility
is (a) to and including June 1, 1999, an amount equal to the product of (a) the
LIBOR then in effect stated on an annual basis divided by 12 plus 150 basis
points, and (b) commencing on July 1, 1999, monthly payments equal to the equal
monthly amortization payment required to pay the cost of the Etec Facility
(exclusive of the Acquisition Fee) in full over the remainder of the initial
term assuming an interest rate of 7.98% per annum. Additionally, the Etec Lease
provides that on March 1, 2001, March 1, 2004, March 1, 2007, March 1, 2010 and
March 1, 2013 the Basic Rent then in effect will be increased to reflect
percentage increases in the Consumer Price Index over the prior three years
capped at 12% for each such three-year period.
Right of First Refusal
The Etec Lease provides Etec with certain rights of first
refusal to purchase the Etec Facility together with the Additional Facilities.
If the Company receives an offer between June 1, 2007 and May 31, 2008 for a
price equal to the greater of Fair Market Value of the Etec Facility and the
CPA(R):12 Facilities or the final cost of the Etec Facility and the CPA(R):12
Facilities plus the applicable Prepayment Premium reduced by principal payments
on the Note, Etec shall have the right to match such offer.
DESCRIPTION OF FINANCING
The Company is seeking financing from Teachers Insurance and
Annuity Association of America for a 15 year $30,000,000 mortgage loan (the
"Loan") at an initial rate of interest of 6.96% per annum. The Loan shall
require the payment of principal and interest based upon an amortization
schedule of not less than 20 years.
DESCRIPTION OF ETEC SYSTEMS
Etec is a leading producer of electron beam and laser
lithography equipment. These systems are used in the manufacturing of masks for
semiconductor manufacturing industry. Etec's shareholders include DuPont, IBM,
Perkin Elmer, Grumman, and Micron Technology. Financial Statements of Etec
System are on file with the Securities and Exchange Commission. The following is
a summary of selected financial data for Etec System for the last three years:
-3-
<PAGE> 5
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF OPERATIONS DATA
YEAR ENDED JULY 31,
1995 1996 1997
---- ---- ----
(In thousands)
Statement of Operations Data:
<S> <C> <C> <C>
Revenue $82,916 $145,645 $240,914
Cost of revenue 47,619 80,042 124,287
Gross profit 35,297 65,603 116,627
Operating expenses 23,894 44,940 66,186
Net income 9,936 36,861 34,439
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET DATA
AS OF JULY 31,
1995 1996 1997
---- ---- ----
(In thousands)
Balance Sheet Data:
<S> <C> <C> <C>
Cash $23,638 $44,472 55,975
Working Capital 23,215 111,199 156,303
Total Assets 85,984 208,871 287,543
Long-term debt, less current 16,866 6,667 ---
portion
Accumulated deficit (71,267) (35,484) (1,045)
Total stockholders' (67,415) 115,877 197,641
(deficit) equity
</TABLE>
DESCRIPTION OF SHARES
Redemption of Shares
The Prospectus provides certain information relating to the
Company's option to redeem shares. For purposes of calculating the price at
which the Company may repurchase shares, the Company will first determine the
Net Asset Value per Share, which for this purpose shall be
-4-
<PAGE> 6
$10 per share until the Company begins having appraisals performed by an
independent third party as of December 31, 2001, at which time the Net Asset
Value will be based on the determination of such appraiser.
Transfer Agent
The transfer agent and registrar for the Shares is
Resource/Phoenix(R). The transfer agent's address is 2401 Verner Boulevard, San
Rafael, CA 94901-5529 and its phone number is (888) 241-3737.
THE OFFERING
Through February 28, 1998, the Company has received
subscriptions for approximately 1,945,865 shares ($19,458,650). The minimum
sales requirement of $15,000,000 was satisfied on February 11, 1998 and the
first issuance of shares will occur no later than May 12, 1998.
5
<PAGE> 7
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
SUPPLEMENT DATED APRIL 21, 1998 TO
PROSPECTUS DATED NOVEMBER 10, 1997
AS SUPPLEMENTED ON MARCH 2, 1998
(HEREINAFTER THE "PROSPECTUS")
SUMMARY OF THE SUPPLEMENT
AUDITED FINANCIAL STATEMENTS (PAGE 2)
This section sets forth the Company's audited financial statements for the
period ending December 31, 1997.
PRIOR PERFORMANCE TABLES (PAGE 11)
This section sets forth the Company's prior performance tables representing
the historical experience of the CPA(R) Programs through December 31, 1997.
Capitalized terms not defined herein will have the meanings ascribed to
them in the Prospectus.
<PAGE> 8
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Corporate Property Associates 14 Incorporated:
We have audited the accompanying balance sheet of Corporate Property
Associates 14 Incorporated as of December 31, 1997, and the related statements
of operations, shareholders' equity and cash flows for the period from inception
(June 4, 1997) to December 31, 1997. These financial statements are the
responsibility of Carey Property Advisors, a Pennsylvania limited partnership
(the "Advisor"). Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
Advisor, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Corporate Property
Associates 14 Incorporated as of December 31, 1997, and the results of its
operations and its cash flows for the period from inception (June 4, 1997) to
December 31, 1997, in conformity with generally accepted accounting principles.
/s/ COOPERS & LYBRAND L.L.P.
New York, New York
April 13, 1998
2
<PAGE> 9
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
BALANCE SHEET
DECEMBER 31, 1997
<TABLE>
<S> <C>
ASSETS:
Cash and cash equivalents................................... $200,000
--------
Total assets................................................ $200,000
========
LIABILITIES:
Accounts payable to affiliates.............................. $ 4,255
Accounts payable and accrued expenses....................... 8,000
--------
Total liabilities........................................... 12,255
--------
Commitments and contingencies
SHAREHOLDERS' EQUITY:
Common stock, $.001 par value; authorized, 40,000,000
shares; issued and outstanding, 20,000 shares at December
31, 1997.................................................. 20
Additional paid-in capital.................................. 199,980
Accumulated loss............................................ (12,255)
--------
Total shareholders' equity.................................. 187,745
--------
Total liabilities and shareholders' equity.................. $200,000
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 10
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM INCEPTION (JUNE 4, 1997) TO DECEMBER 31, 1997
<TABLE>
<CAPTION>
1997
--------
<S> <C>
Revenues:................................................... $ --
--------
Expenses:
General and administrative.................................. 12,255
--------
Net loss.................................................. $(12,255)
========
Basic loss per share........................................ $ (.61)
========
Weighted average shares outstanding -- basic................ 20,000
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 11
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE PERIOD FROM INCEPTION (JUNE 4, 1997) TO DECEMBER 31, 1997
<TABLE>
<CAPTION>
ADDITIONAL
COMMON PAID-IN ACCUMULATED
STOCK CAPITAL LOSS TOTAL
------ ---------- ----------- --------
<S> <C> <C> <C> <C>
20,000 Shares issued $.001 Par, at $10 per share.... $20 $199,980 $200,000
Net loss............................................ $ 12,255 (12,255)
--- -------- -------- --------
Balance at December 31, 1997........................ $20 $199,980 $(12,255) $187,745
=== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 12
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
STATEMENT OF CASH FLOWS
FOR THE PERIOD FROM INCEPTION (JUNE 4, 1997) TO DECEMBER 31, 1997
<TABLE>
<CAPTION>
1997
--------
<S> <C>
Cash flows from operating activities:
Net loss.................................................. $(12,255)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Increase in accounts payable and accrued expenses...... 8,000
Increase in accounts payable to affiliates............. 4,255
--------
Net cash provided by operating activities............ --
--------
Cash flows from financing activities:
Proceeds from stock issuance.............................. 200,000
--------
Net cash provided by financing activities............ 200,000
--------
Net increase in cash and cash equivalents............ 200,000
Cash and cash equivalents, beginning of period.............. --
--------
Cash and cash equivalents, end of period............... $200,000
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 13
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. The most significant estimates will relate to the assessment
of recoverability of real estate assets. Actual results could differ from those
estimates.
The assessment of the recoverability of long-lived assets, including
residual interests of real estate assets, will be based on projections of
undiscounted cash flows over the life of such assets. In the event that such
cash flows are insufficient, the assets will be adjusted to their estimated fair
value.
Real Estate Leased to Others:
Corporate Property Associates 14 Incorporated (the "Company") intends to
lease real estate to others on a net lease basis, whereby the tenant is
generally responsible for all operating expenses relating to the property,
including property taxes, insurance, maintenance, repairs, renewals and
improvements.
The leases will be accounted for under the operating and direct financing
methods.
Operating method -- Real estate is recorded at cost, revenue is recognized
on a straight-line basis over the terms of the lease and expenses (including
depreciation) are charged to operations as incurred.
Direct financing method -- Leases accounted for under the direct financing
method are recorded at their net investment. Unearned income is deferred and
amortized to income over the lease terms so as to produce a constant periodic
rate of return on the Company's net investment in the lease.
Depreciation will be computed using the straight-line method over the
estimated useful lives of the properties -- 40 years.
For properties under construction, interest charges will be capitalized
rather than expensed and rentals received will be recorded as a reduction of
capitalized project (i.e., construction) costs in accordance with Statement of
Financial Standard No. 67.
Cash Equivalents:
The Company considers all short-term, highly liquid investments that are
both readily convertible to cash and have a maturity of generally three months
or less at the time of purchase to be cash equivalents. Items classified as cash
equivalents include commercial paper and money market funds. At December 31,
1997, the Company's cash and cash equivalents were held in the custody of one
financial institution.
Offering Costs:
Costs incurred in connection with the raising of capital through the sale
of common stock will be charged to shareholders' equity upon the issuance of
shares to shareholders.
Earnings Per Share:
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128 "Earnings Per Share" ("SFAS No. 128")
which establishes standards for computing and presenting earnings per share. The
adoption of SFAS No. 128 had no impact on the Company's financial statements
because the Company has a simple capital structure, that is, one with only
common
7
<PAGE> 14
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
stock outstanding. As a result, the Company has presented basic per-share
amounts presented in the accompanying statement of operations.
Federal Income Taxes:
The Company did not elect to qualify as a real estate investment trust
("REIT") for the year ended December 31, 1997 under the Internal Revenue Code of
1986. The Company intends to elect to qualify as a REIT for 1998. The Company
should not be subject to Federal income taxes in future years, provided it
distributes at least 95% of its REIT taxable income to its shareholders and
meets other conditions necessary to retain REIT status.
2. ORGANIZATION AND OFFERING:
The Company was formed on June 4, 1997 under the General Corporation Law of
Maryland for the purpose of engaging in the business of investing in and owning
industrial and commercial real estate. Subject to certain restrictions and
limitations, the business of the Company is managed by Carey Property Advisors,
a Pennsylvania limited partnership (the "Advisor").
A maximum of 30,000,000 Shares are being offered to the public on a "best
efforts" basis by Carey Financial Corporation ("Carey Financial") and other
selected dealers at a price of $10 per Share. Sale of the Shares to the public
commenced on December 11, 1997. On April 3, 1998, 2,651,661 Shares were issued
for $26,495,178, net of discounts.
On June 30, 1997, the Advisor purchased 20,000 shares of common stock
("Shares") for $200,000 and became the initial shareholder of the Company.
3. TRANSACTIONS WITH RELATED PARTIES:
The Company has entered into an advisory agreement with the Advisor
pursuant to which the Advisor performs certain services for the Company
including the identification, evaluation, negotiation, purchase and disposition
of property, the day-to-day management of the Company and the performance of
certain administrative services. The Advisor and certain affiliates will receive
substantial fees and compensation in connection with the offering and the
operation of the Company as described in the Prospectus of the Company.
In the future, real property may be acquired by limited partnerships, REITs
or other entities formed by affiliates of the Company and, accordingly,
transactions with related parties may arise between the Company and affiliated
entities.
The Company's asset management and performance fees payable to the Advisor
are each one-half of 1% per annum of Average Invested Assets, as defined in the
Prospectus. Until Shareholders have received a cumulative dividend return of 6%,
the Advisor will not be entitled to receive the performance fee. At such time as
the Advisor is entitled to receive the performance fee, the Advisor will have
the option of receiving such fee in cash or restricted shares of the Company.
General and administrative expense reimbursement consists primarily of the
actual cost of personnel, needed in providing administrative services, necessary
to the prudent operation of the Company. No fees or reimbursements were incurred
in 1997.
The Advisor shall reimburse the Company at least annually for the amount by
which operating expenses of the Company exceed the 2%/25% Guidelines (2% of
Average Invested Assets or 25% of net income) as defined in the Prospectus. To
the extent that operating expenses payable or reimbursable by the Company exceed
the 2%/25% Guidelines and the independent directors find that such expenses were
justified based on such unusual and nonrecurring factors which they deem
sufficient, the Advisor may be reimbursed in future years for the full amount or
any portion of such excess expenses, but only to the extent
8
<PAGE> 15
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
such reimbursement would not cause the Company's operating expenses to exceed
the 2%/25% Guidelines in any such year.
Fees are payable for services provided by the Advisor to the Company
relating to the identification, evaluation, negotiation, financing and purchase
of properties. A portion of such fees will be deferred and payable in annual
installments with each installment equal to .25% of the purchase price of the
properties over no less than eight years following the first anniversary of the
date a property was purchased. Payment of such fees is subject to the 2%/25%
Guidelines.
4. COMMITMENTS AND CONTINGENCIES:
The Company will be liable for certain expenses of the offering (the
"Offering") described in the Prospectus of the Company, including but not
limited to filing, legal, accounting, printing and escrow fees, which are to be
deducted from the gross proceeds of the Offering and are presently estimated to
aggregate a maximum of $10,500,000 assuming the sale of 30,000,000 Shares. The
Company will also be liable for selling commissions of up to $0.65 (6.5%) per
Share sold except for any Shares sold to the Advisor, its Affiliates, the
selected dealers or any of their employees for their own accounts. The Company
will pay a selected dealer fee not to exceed 1% of the price of each Share sold
by the selected dealer. The Company will reimburse Carey Financial for expenses
(including fees and expenses of its counsel) and for the costs of sales,
wholesaling services and information meetings of Carey Financial's employees
relating to the Offering. To the extent, if any, that all organization and
offering expenses, excluding selling commissions, and any fees paid and expenses
reimbursed to the selected dealers or paid on behalf of the selected dealers,
exceed 3.5% of the gross proceeds of the Offering, such excess will be paid by
the Advisor with no recourse to or reimbursement by the Company.
5. SUBSEQUENT EVENT:
In February 1995, Corporate Property Associates 12 Incorporated
("CPA(R):12"), an affiliate, purchased property in Heyward, California and
entered into a net lease with Etec Systems, Inc. ("Etec"). In February 1998,
CPA(R):12 entered into a series of transactions that included the contribution
of the Etec properties to a limited liability company, ET LLC, entering into a
commitment and construction agency agreement to fund additional improvements
(the "Project II Improvements") of up to $52,356,000 and amending the Etec
lease. On April 3, 1998, ET LLC received a commitment for $45,000,000 of limited
recourse financing on the Etec properties.
Under the ET LLC limited liability company agreement, CPA(R):12 and the
Company will initially have 99.99% and .01% interests, respectively, in the
Project II Improvements with the Company having the commitment to increase its
interests in the Project II Improvements to 49.99%. Such increase in the
Company's equity interest in ET LLC, however, is limited to 10% of the gross
offering proceeds of the Offering.
The Etec lease, as amended, has an initial term through May 2014 with three
five-year renewal terms at Etec's option. After completion of the Project II
Improvements, assuming that the entire funding commitment is needed, annual rent
applicable to the Project II Improvements will be approximately $5,727,000 with
increases every three years based on increases in the Consumer Price Index.
6. ACCOUNTING PRONOUNCEMENTS:
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 130, "Reporting Comprehensive
Income." SFAS No. 130 establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and losses)
in full set general purpose financial statements. SFAS No. 130 is required to be
adopted in 1998. The Company is currently evaluating the impact, if any, of SFAS
No. 130.
9
<PAGE> 16
TABLE I
EXPERIENCE IN RAISING AND INVESTING FUNDS AS OF DECEMBER 31, 1997
ON A PERCENTAGE BASIS
Table I includes information showing how investors' funds have been dealt
with in Prior Programs, the offerings of which have closed since January 1,
1994, particularly focusing on the percentage of the amount raised available for
investment (or total acquisition cost), the percentage of leverage used in
purchasing properties and the time frame for raising and investing funds. THE
INFORMATION IN THIS TABLE SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE
PERFORMANCE OF THE COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS
WILL NOT HAVE ANY OWNERSHIP IN THE CPA(R) PROGRAMS. MORTGAGE FINANCING FOR THE
CPA(R) PROGRAMS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS
FOR INVESTMENT BY SUCH PROGRAMS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):10 CIP(TM) CPA:12
--------- ------- ------
<S> <C> <C> <C>
Dollar amount offered (net of discounts and
individual general partner contributions)....... $72,049,908 $141,590,601 $282,740,030
Dollar amount raised.............................. 100% 100% 100%
Less offering expenses:
Selling commissions............................. 6.82% 6.94% 5.79%
Organization expenses........................... 7.17% 5.31% 4.20%
Reserves (working capital)........................ 1.00% 1.00% 1.00%
Percent available for investment in real estate... 85.01% 86.75% 89.01%
Acquisition costs:
Cash down payments.............................. 71.12% 77.44% 60.67%
Other costs capitalized......................... 0.82% 0.24% 1.75%
Acquisition fees................................ 10.05% 9.03% 5.18%
Total acquisition costs (includes debt
financing)................................... 220.44% 195.99% 109.32%
Percent leverage (mortgage financing divided by
total acquisition costs)........................ 63% 56%(1) 38%(1)
Date offering began............................... 6/20/90(2) 8/19/91(3) 2/18/94(4)
Length of offering (in months).................... 12 mos. 24 mos. 43 mos.
Months to invest 90% of amount available for
investment (from beginning of offering)......... 30 mos. 31 mos. N/A(5)
</TABLE>
FOOTNOTES
(1) Does not represent fully invested portfolio. Leverage percentage is
applicable only to initial property acquisitions.
(2) Remaining shares withdrawn 8/14/91.
(3) Remaining shares withdrawn 11/4/93.
(4) Remainings shares withdrawn 3/14/96, includes a second offering which
commenced 2/2/96.
(5) Program has not reached investment of 90% of amount available for
investment.
A-1
<PAGE> 17
TABLE II
COMPENSATION TO SPONSOR AS OF DECEMBER 31, 1997
Table II provides information as to Prior Programs that will enable an
investor to understand the significance of compensation paid to the sponsor and
its affiliates, as well as to understand how the compensation is spread over the
cycle of the programs. The information presented below is for compensation paid
since January 1, 1995. THE INFORMATION PRESENTED IN THIS TABLE SHOULD NOT BE
CONSIDERED AS INDICATIVE OF THE COMPENSATION WHICH WILL BE RECEIVED BY THE
ADVISOR AND AFFILIATES OF THE ADVISOR. THE COMPENSATION PAYABLE TO THE GENERAL
PARTNERS AND AFFILIATES OF THE CPA(R) PARTNERSHIPS DIFFERS FROM THE ENTITLEMENT
AND ALLOCATION OF COMPENSATION TO THE ADVISOR AND AFFILIATES OF THE ADVISOR. SEE
"MANAGEMENT COMPENSATION" AND "ESTIMATED USE OF PROCEEDS". PURCHASERS OF SHARES
OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY OWNERSHIP IN THE CPA(R) PROGRAMS.
<TABLE>
<CAPTION>
CPA(R):1-
CPA(R):10 CIP(TM) CPA(R):12
--------- ------- ---------
<S> <C> <C> <C>
Date offering(s) commenced........................ 1/16/79-6/20/90 8/19/91 2/18/94
2/2/96
Dollar amount raised (net of discounts and
individual general partner contributions)....... $472,763,521 $141,590,601 $282,740,030
Amount paid to sponsor from proceeds of offering:
Underwriting fees...............................
Acquisition fees-real estate commissions and
mortgage placement fees(1)................... 930,000 3,221,556 14,643,362
Other Fees
Dollar amount of cash generated from operations
before deducting payments to sponsor............ 200,060,964 56,059,949 38,101,480
Amount paid to sponsor from operations:
Property management, leasing and asset
management fees(2)........................... 7,069,355 10,272,024 4,250,310
Reimbursements(2)............................... 4,895,829 2,479,593 2,487,388
Other (cash distributions to General
Partners)(2).................................... 7,854,838 -- --
Dollar amount of property sales and re-financing
before deducting payments to sponsor(2)......... 22,331,086 31,599,220 8,375,000
---------------
Amount paid to sponsor from property sales and
refinancing..................................... 117,592,951
</TABLE>
FOOTNOTES
(1) Represents acquisition fees paid to sponsor and its affiliates from January
1, 1995 through December 31, 1997
(2) Represents actual performance or payments for the period from January 1,
1995 through December 31, 1997.
A-2
<PAGE> 18
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase
of Prior Programs, the offerings of which have been closed since December 31,
1979. This Table is designed to provide the investor with information on the
financial operations of such Prior Programs. The results shown in this Table are
in all cases for years ended December 31. THE INFORMATION PRESENTED IN THIS
TABLE SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PARTNERSHIPS. MORTGAGE FINANCING FOR THE CPA(R)
PARTNERSHIPS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR
INVESTMENT BY SUCH PARTNERSHIPS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):1
------------------------------------------------------------------------------
1979 1980 1981 1982 1983 1984
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues..................................... $2,636,185 $3,843,588 $4,427,993 $4,376,655 $4,322,546 $4,331,105
Profit (loss) on sale of properties................ N/A N/A N/A N/A 22,180(1) N/A
Extraordinary charge on extinguishment of debt.....
Write-down of property............................. N/A N/A N/A N/A N/A N/A
Less:
Operating expenses................................ 160,387 252,758 238,058 181,922 169,613 145,516
Interest expense.................................. 1,415,410 1,895,624 2,409,242 2,386,388 2,328,716 2,300,677
Depreciation...................................... 821,484 1,275,778 1,275,792 1,275,792 1,275,792 1,272,999
Net income (loss) GAAP Basis....................... 238,904 419,428 504,901 532,553 570,605 611,913
Taxable income (Loss):
-- from operations................................ 392,689 219,214 (108,663) (158,919) (173,788) (72,288)
-- from gain (loss) on sale....................... 0 0 0 0 22,180(1) 0
Cash generated from operations(6).................. 985,982 1,512,434 1,504,769 1,500,263 1,438,191 1,481,113
Cash proceeds from sales........................... 0 0 0 0 60,335(1) 0
Cash generated from refinancing.................... 0 0 0 0 0 0
Cash generated from operations, sales and
refinancing....................................... 985,982 1,512,434 1,504,769 1,500,263 1,498,526 1,481,113
Less Cash distribution to investors................
-- from operating cash flow(7).................... 591,479 1,480,000 1,501,819 1,504,648 1,504,646 1,504,646
-- from sales and refinancing..................... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distribution...................................... 394,503 32,434 2,950 (4,385) (6,120) (23,533)
Less special items................................. 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items................... 394,503 32,434 2,950 (4,385) (6,120) (23,533)
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss)............................ $23.65 $10.85 $(5.38) $(7.87) $(8.60) $(3.58)
Capital gain (loss)............................... 0 0 0 0 1.10 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income.............................. 14.39 20.76 24.99 26.36 27.15 30.29
-- Return of capital.............................. 21.23 52.50 49.35 48.12 47.33 44.19
Source (on cash basis):
-- Sales.......................................... 0 0 0 0 0 0
-- Refinancing.................................... 0 0 0 0 0 0
-- Operations..................................... 35.62 73.26 74.34 74.48 74.48 74.48
Amount (in percentage terms) remaining invested in
program properties at the end of the last year
reported in the Table (original total acquisition
cost of properties retained divided by original
total acquisition cost of all properties in
program).......................................... N/A 100% 100% 100% 100% 100%
<CAPTION>
CPA(R):1
-----------------------------------------------------------------
1985 1986 1987 1988 1989
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Gross Revenues..................................... $4,187,199 $3,513,411 $6,584,410 $4,487,838 $4,167,975
Profit (loss) on sale of properties................ N/A (38,915)(2) N/A N/A (231,288)(3)
Extraordinary charge on extinguishment of debt.....
Write-down of property............................. N/A N/A N/A N/A 300,000(4)
Less:
Operating expenses................................ 276,287 630,225 766,707 811,685 418,278
Interest expense.................................. 2,254,996 2,296,520 2,320,731 2,339,046 1,916,134
Depreciation...................................... 1,266,962 1,507,133 1,520,842 1,318,492 1,159,216
Net income (loss) GAAP Basis....................... 388,954 (959,382) 1,976,130 18,615 143,059
Taxable income (Loss):
-- from operations................................ (49,859) (1,135,524) (125,052) 482,093 1,175,040
-- from gain (loss) on sale....................... 0 (38,915)(2) 0 0 (538,771)(3)
Cash generated from operations(6).................. 1,221,045 736,214 1,078,838 1,908,203 1,964,408
Cash proceeds from sales........................... 0 500,000(2) 0 0 0
Cash generated from refinancing.................... 0 0 0 0 0
Cash generated from operations, sales and
refinancing....................................... 1,221,045 1,238,214 1,078,838 1,908,203 1,964,408
Less Cash distribution to investors................
-- from operating cash flow(7).................... 1,504,646 1,055,354 1,063,838 1,074,748 1,092,527
-- from sales and refinancing..................... 0 0 0 0 0
Cash generated (deficiency) after cash
distribution...................................... (283,601) 180,860 15,000 23,455 871,881
Less special items................................. 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items................... (283,601) 180,860 15,000 23,455 871,881
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss)............................ $(2.47) $(56.21) $(6.19) $23.86 $58.16
Capital gain (loss)............................... 0 (1.92) 0 0 (26.67)
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income.............................. 19.25 0 52.66 53.20 7.08
-- Return of capital.............................. 55.23 52.24 0 0 47.00
Source (on cash basis):
-- Sales.......................................... 0 0 0 0 0
-- Refinancing.................................... 0 0 0 0 0
-- Operations..................................... 74.48 52.24 52.66 53.20 54.08
Amount (in percentage terms) remaining invested in
program properties at the end of the last year
reported in the Table (original total acquisition
cost of properties retained divided by original
total acquisition cost of all properties in
program).......................................... 100% 98.75% 98.75% 98.75% 83.14%
<CAPTION>
CPA(R):1
------------------------------------------------------------------------------
1990 1991 1992 1993 1994 1995
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues..................................... $4,162,465 $4,093,556 $4,102,112 $4,418,370 $4,480,460 $4,830,618
Profit (loss) on sale of properties................ N/A (13,296)(5) N/A N/A N/A N/A
Extraordinary charge on extinguishment of debt.....
Write-down of property............................. N/A N/A N/A N/A N/A N/A
Less:
Operating expenses................................ 411,712 298,435 302,200 465,548 666,955 374,238
Interest expense.................................. 1,840,553 1,750,596 1,682,798 1,672,658 1,598,614 1,524,837
Depreciation...................................... 1,044,720 1,041,634 1,059,255 1,120,162 1,106,712 1,089,758
Net income (loss) GAAP Basis....................... 865,480 989,595 1,057,059 1,160,002 1,108,179 1,841,695
Taxable income (Loss):
-- from operations................................ 1,199,289 852,971 812,956 1,098,352 930,049 1,841,051
-- from gain (loss) on sale....................... 0 52,204(5) 0 0 0 0
Cash generated from operations(6).................. 1,901,459 2,062,138 2,046,299 2,291,177 2,216,472 2,666,179
Cash proceeds from sales........................... 0 160,000(5) 0 0 0 0
Cash generated from refinancing.................... 0 0 0 0 0 0
Cash generated from operations, sales and
refinancing....................................... 1,901,459 2,222,138 2,046,299 2,291,177 2,216,472 2,666,179
Less Cash distribution to investors................
-- from operating cash flow(7).................... 1,162,424 1,226,667 1,242,828 1,258,990 1,269,699 1,313,535
-- from sales and refinancing..................... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distribution...................................... 739,035 995,471 803,471 1,032,187 946,773 1,352,644
Less special items................................. 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items................... 739,035 995,471 803,471 1,032,187 946,773 1,352,644
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss)............................ $59.36 $42.22 $40.24 $54.37 $46.04 $91.13
Capital gain (loss)............................... 0 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income.............................. 42.84 48.98 52.36 57.42 54.85 65.02
-- Return of capital.............................. 14.70 11.74 9.16 4.90 8.00 0
Source (on cash basis):
-- Sales.......................................... 0 0 0 0 0 0
-- Refinancing.................................... 0 0 0 0 0 0
-- Operations..................................... 57.54 60.72 61.52 62.32 62.85 65.02
Amount (in percentage terms) remaining invested in
program properties at the end of the last year
reported in the Table (original total acquisition
cost of properties retained divided by original
total acquisition cost of all properties in
program).......................................... 83.14% 82.74% 82.74% 82.74% 82.74% 82.74%
<CAPTION>
CPA(R):1
--------------------------
1996 1997
---------- ----------
<S> <C> <C>
Gross Revenues..................................... $4,589,145 $4,825,055
Profit (loss) on sale of properties................ (22,871)(5) 607,861(7)
Extraordinary charge on extinguishment of debt..... (255,438)(6) --
Write-down of property............................. N/A
Less:
Operating expenses................................ 388,484 1,104,473
Interest expense.................................. 1,280,995 1,062,706
Depreciation...................................... 969,570 905,816
Net income (loss) GAAP Basis....................... 1,671,787 2,359,921
Taxable income (Loss):
-- from operations................................ 1,540,197 2,256,416
-- from gain (loss) on sale....................... 153,615 630,826
Cash generated from operations(6).................. 2,826,531 2,820,490
Cash proceeds from sales........................... 355,958 1,042,200
Cash generated from refinancing.................... 0 0
Cash generated from operations, sales and
refinancing....................................... 3,182,489 3,862,690
Less Cash distribution to investors................
-- from operating cash flow(7).................... 1,417,554 1,977,926
-- from sales and refinancing..................... 0
Cash generated (deficiency) after cash
distribution...................................... 1,764,935 1,884,764
Less special items................................. 0 0
Cash generated (deficiency) after cash
distributions and special items................... 1,764,935 1,884,764
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss)............................ $76.24 111.69
Capital gain (loss)............................... 7.60 31.23
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income.............................. 70.17 97.91
-- Return of capital.............................. 0 0
Source (on cash basis):
-- Sales.......................................... 0 0
-- Refinancing.................................... 0 0
-- Operations..................................... 70.17 97.91
Amount (in percentage terms) remaining invested in
program properties at the end of the last year
reported in the Table (original total acquisition
cost of properties retained divided by original
total acquisition cost of all properties in
program).......................................... 82.46% 81.44%
</TABLE>
FOOTNOTES
(1) Results from the sale of a one acre portion of the land which was a part of
the property net leased to Varo, Inc. The net proceeds from the sale of this
land were applied to repay a portion of the outstanding principal balance of
the mortgage loan to CPA(R):1 used to finance the acquisition of the
Property.
(2) Results from the sale of 11.37 acres of land which was a part of the
property net leased to the Gap Stores, Inc.
(3) Represents loss on disposition of the 2400 Industrial Lane Property as a
result of the transfer of the Partnership's interest in the Property.
(4) Represents write-down of the 2400 Industrial Lane Property.
(5) Results from the sale of properties net leased to Kobacker Stores, Inc.
A-3
<PAGE> 19
(6) Result of refinancing mortgage loan on property leased to the Gap Inc.
(7) Results from the sale of the property net leased to Winn-Dixie Stores, Inc.
(8) For the years up to and including 1985, the figures for cash generated from
operations were derived from the Statements of Changes in Financial
Position, whereas for the years after 1985, the figures were derived from
the Statements of Cash Flows in accordance with SFAS, No. 95. In determining
Cash from Operations pursuant to the Statement of Cash Flows, the effects of
changes primarily in accrued liabilities, receivables and other assets are
taken into account but other items such as principal amortization of loans
are not included. Cash from operations pursuant to the Statement of Changes
in Financial Position includes the effect of loan amortization, but excludes
the effects of changes in accrued liabilities, receivables and other assets.
(9) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations in
prior years that has not previously been distributed.
NOTES
(1) CPA(R):1 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $27.66 and April,
1998 -- $18.00.
A-4
<PAGE> 20
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase of
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PARTNERSHIPS. MORTGAGE FINANCING FOR THE CPA(R)
PARTNERSHIPS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR
INVESTMENT BY SUCH PARTNERSHIPS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):2
---------------------------------------------------------------------------
1980 1981 1982 1983 1984 1985
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues............................. $1,658,322 $4,092,794 $6,422,836 $9,793,731 $9,895,531 $9,960,370
Profit on sale of properties............... N/A N/A N/A N/A N/A N/A
Extraordinary charge on extinguishment of
debt...................................... N/A N/A N/A N/A N/A N/A
Write-down of property.....................
Less:
Operating expenses........................ 181,613 291,223 290,558 307,165 346,920 364,373
Interest expense.......................... 197,038 606,089 3,341,880 6,511,201 6,349,960 6,307,664
Depreciation.............................. 14,421 127,460 157,900 154,909 154,909 155,782
Net Income-GAAP Basis...................... 1,265,250 3,068,022 2,632,498 2,820,456 3,043,742 3,132,551
Taxable Income (Loss):
-- from operations........................ 630,885 2,003,000 (9,093) (1,168,795) (885,102) (532,969)
-- from gain on sale...................... 0 0 0 0 0 0
-- from extraordinary charge.............. 0 0 0 0 0 0
Cash generated from operations(3).......... 1,149,636 2,853,883 2,460,169 2,574,532 2,804,385 2,881,848
Cash generated from sales.................. 0 0 0 0 0 0
Cash generated from refinancing............ 0 0 0 0 0 0
Cash generated from operations, sales and
refinancing............................... 1,149,636 2,853,883 2,460,169 2,574,532 2,804,385 2,881,848
Less: Cash distribution to investors:
-- from operating cash flow(4)............ 473,028 2,229,443 2,440,555 2,525,000 2,547,000 2,657,778
-- from sales and refinancing............. 0 0 0 0 0 0
Cash generated after cash distributions and
special items............................. 676,608 624,440 19,614 49,532 257,385 224,070
Less: Special items........................ 0 0 0 0 0 0
Cash generated after cash distributions and
special items............................. 676,608 624,440 19,614 49,532 257,385 224,070
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................... $ 48.95 $ 72.11 $ (.33) $ (42.08) $ (30.78) $ (19.19)
Capital gain (loss)...................... 0 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income..................... 36.70 80.25 87.86 90.90 91.70 95.68
-- Return of capital..................... 0 0 0 0 0 0
Source (on cash basis):
-- Sales................................. 0 0 0 0 0 0
-- Refinancing........................... 0 0 0 0 0 0
-- Operations............................ 36.70 80.25 87.86 90.90 91.70 95.68
Amount (in percentage terms) remaining
invested in program properties at the end
of the last year reported in the Table
(original total acquisition cost of
properties retained divided by original
total acquisition cost of all properties
in program)............................... N/A N/A 100% 100% 100% 100%
<CAPTION>
CPA(R):2
------------------------------------------------------------------------------
1986 1987 1988 1989 1990 1991
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues............................. $9,954,236 $9,694,869 $9,754,664 $10,013,889 $9,732,269 $9,756,071
Profit on sale of properties............... 920,577(1) N/A N/A N/A N/A N/A
Extraordinary charge on extinguishment of
debt...................................... (894,945)(2) N/A N/A N/A N/A N/A
Write-down of property.....................
Less:
Operating expenses........................ 393,350 480,635 489,806 540,777 685,927 691,505
Interest expense.......................... 4,916,744 4,204,623 4,074,729 3,856,045 3,771,706 3,595,406
Depreciation.............................. 314,560 475,162 475,162 479,598 480,393 478,388
Net Income-GAAP Basis...................... 4,355,214 4,534,449 4,714,967 5,137,469 4,794,243 4,990,772
Taxable Income (Loss):
-- from operations........................ 260,572 1,604,613 1,997,924 2,600,538 2,461,101 2,874,398
-- from gain on sale...................... 2,035,116(1) 0 0 0 0 0
-- from extraordinary charge.............. (239,948)(2) 0 0 0 0 0
Cash generated from operations(3).......... 4,325,850 5,084,085 5,096,066 5,502,770 5,298,252 5,389,873
Cash generated from sales.................. 5,441,434(1) 0 0 0 0 0
Cash generated from refinancing............ 0 0 0 0 0 0
Cash generated from operations, sales and
refinancing............................... 9,767,234 5,084,085 5,096,066 5,502,770 5,298,252 5,389,873
Less: Cash distribution to investors:
-- from operating cash flow(4)............ 3,691,774 3,435,000 3,506,667 3,645,000 3,773,333 3,832,222
-- from sales and refinancing............. 4,950,000 0 0 0 0 0
Cash generated after cash distributions and
special items............................. 1,125,510 1,649,085 1,589,399 1,857,770 1,524,919 1,557,651
Less: Special items........................ 0 0 0 0 0 0
Cash generated after cash distributions and
special items............................. 1,125,510 1,649,085 1,589,399 1,857,770 1,524,919 1,557,651
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................... $ .73 $ 57.77 $ 71.93 $ 93.62 $ 88.60 $ 103.48
Capital gain (loss)...................... 73.27 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income..................... 156.79 123.66 126.24 131.22 135.84 137.96
-- Return of capital..................... 156.11 0 0 0 0 0
Source (on cash basis):
-- Sales................................. 180.00 0 0 0 0 0
-- Refinancing........................... 0 0 0 0 0 0
-- Operations............................ 132.90 123.66 126.24 131.22 135.84 137.96
Amount (in percentage terms) remaining
invested in program properties at the end
of the last year reported in the Table
(original total acquisition cost of
properties retained divided by original
total acquisition cost of all properties
in program)............................... 93.24% 93.24% 93.24% 93.24% 93.24% 93.24%
<CAPTION>
CPA(R):2
--------------------------------------------------------------------------------
1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues............................. $9,763,695 $ 6,665,727 $5,161,447 $5,185,804 $4,590,963 $4,919,703
Profit on sale of properties............... N/A 8,377,679(5) 23,451(7) N/A N/A N/A
Extraordinary charge on extinguishment of
debt...................................... N/A (520,979)(6) N/A N/A N/A N/A
Write-down of property..................... (841,889)(8) (445,551)(9)
Less:
Operating expenses........................ 983,060 846,569 911,755 718,035 735,018 857,919
Interest expense.......................... 3,337,825 2,142,199 1,593,880 1,351,797 731,843 542,304
Depreciation.............................. 476,279 501,762 501,657 519,891 499,320 519,460
Net Income-GAAP Basis...................... 4,966,531 10,190,008 1,732,055 2,596,081 2,624,782 3,000,020
Taxable Income (Loss):
-- from operations........................ 3,574,899 1,924,220 1,368,123 5,114,606 1,967,557 2,683,925
-- from gain on sale...................... 0 21,777,693 40,237 0 0 0
-- from extraordinary charge.............. 0 0 0 0 0 0
Cash generated from operations(3).......... 5,513,940 3,977,769 2,770,535 6,164,009 2,791,872 3,365,082
Cash generated from sales.................. 0 15,972,862 124,615 0 0 0
Cash generated from refinancing............ 0 0 0 0 0 0
Cash generated from operations, sales and
refinancing............................... 5,513,940 19,950,631 2,895,150 6,164,009 2,791,872 3,365,082
Less: Cash distribution to investors:
-- from operating cash flow(4)............ 3,898,333 2,691,111 1,458,890 1,491,667 2,303,728 2,167,890
-- from sales and refinancing............. 0 14,300,312 0 0 0 0
Cash generated after cash distributions and
special items............................. 1,615,607 2,959,208 1,436,260 4,672,342 488,144 1,197,192
Less: Special items........................ 0 0 0 0 0 0
Cash generated after cash distributions and
special items............................. 1,615,607 2,959,208 1,436,260 4,672,342 488,144 1,197,192
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................... $ 128.70 $ 69.27 $ 49.25 $ 184.46 $ 70.96 $ 96.80
Capital gain (loss)...................... 0 784.00 1.45 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income..................... 140.34 366.84 52.52 53.72 83.09 78.19
-- Return of capital..................... 0 250.04 0.00 0 0 0
Source (on cash basis):
-- Sales................................. 0 520.00 0 0 0 0
-- Refinancing........................... 0 0 0 0 0 0
-- Operations............................ 140.34 96.88 52.52 53.72 83.09 78.19
Amount (in percentage terms) remaining
invested in program properties at the end
of the last year reported in the Table
(original total acquisition cost of
properties retained divided by original
total acquisition cost of all properties
in program)............................... 93.24% 61.97% 61.65% 61.65% 61.65% 61.65%
</TABLE>
A-5
<PAGE> 21
FOOTNOTES
(1) Results from the sale of 3,441 square feet of land net leased to G.D. Searle
& Co. and sale of the property net leased to General Refractories Company.
(2) Represents unamortized balance of deferred charges in connection with
refinancing of mortgage loans on properties leased to Heekin Can Inc., Paper
Corporation of America and Gibson Greeting Cards, Inc.
(3) For the years up to and including 1985, the figures for cash generated from
operations were derived from the Statements of Changes in Financial
Position, whereas for the years after 1985, the figures were derived from
the Statements of Cash Flows in accordance with SFAS No. 95. In determining
Cash from Operations pursuant to the Statement of Cash Flows, the effects of
changes primarily in accrued liabilities, receivables and other assets are
taken into account but other items such as principal amortization of loans
are not included. Cash from operations pursuant to the Statement of Changes
in Financial Position includes the effect of loan amortization, but excludes
the effects of changes in accrued liabilities, receivables and other assets.
(4) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations in
prior years that has not previously been distributed.
(5) Results from the sale of properties leased to Heekin Can, Inc.
(6) In connection with the sale of the Heekin properties, CPA(R):2 incurred an
extraordinary charge upon paying off the related mortgage loan.
(7) Results from the sale of property in Hammond, Louisiana leased to G.D.
Searle and Company.
(8) Represents write-down of the Moorestown, N.J. property.
(9) Represents write-down of the Reno, Nevada property.
NOTES
(1) CPA(R):2 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $27.38 and April,
1998 -- $12.94.
A-6
<PAGE> 22
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase or
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PARTNERSHIPS. MORTGAGE FINANCING FOR THE CPA(R)
PARTNERSHIPS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR
INVESTMENT BY SUCH PARTNERSHIPS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):3
--------------------------------------------------------------------------
1981 1982 1983 1984 1985 1986
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues.......................... $173,916 $7,746,826 $8,618,753 $8,798,595 $8,792,622 $ 8,720,462
Profit on sale of properties............ N/A N/A N/A N/A N/A 540,765(1)
Extraordinary charges on extinguishment
of debt................................ N/A N/A N/A N/A N/A (1,256,013)(2)
Write-down of property.................. N/A N/A N/A N/A N/A N/A
Other income............................
Less:
Operating expenses..................... 54,011 384,169 369,246 506,660 502,561 496,570
Interest expense....................... 60,855 4,224,538 4,341,435 3,921,936 3,845,445 3,296,710
Depreciation........................... 0 0 0 0 0 20,502
Net Income-GAAP Basis................... 59,050 3,138,119 3,908,072 4,369,999 4,444,615 4,191,432
Taxable Income (Loss):
-- from operations..................... (190,312) (516,798) (194,879) 277,458 375,653 708,829
-- from gain on sale................... 0 0 0 0 0 3,373,025(1)
-- from extraordinary charge........... 0 0 0 0 0 (852,511)(2)
Cash generated from operations(3)....... 41,249 2,698,796 3,523,610 3,979,272 3,995,421 5,009,304
Cash generated from sales............... 0 0 0 0 0 5,302,208(1)
Cash generated from refinancing......... 0 0 0 0 0 0
Cash generated from other............... 0 0 0 0 0 0
Cash generated from operations, sales,
refinancing and other.................. 41,249 2,698,796 3,523,610 3,979,272 3,995,421 10,311,512
Less: Cash distribution to investors:
-- from operating cash flow(4)......... 0 1,906,688 3,388,225 3,787,592 3,889,970 4,125,001
-- from sales and refinancing.......... 0 0 0 0 0 0
-- other............................... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions.......................... 41,249 792,108 135,385 191,680 105,451 6,186,511
Less: Special items..................... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items........ 41,249 792,108 135,385 191,680 105,451 6,186,511
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income........................ $ (25.06) $ (19.36) $ (5.79) $ 8.24 $ 11.16 $ (3.21)
Capital gain........................... 0 0 0 0 0 101.19
Cash Distributions to Investors:
Source (on GAAP basis)
-- Investment income.................. 0 71.42 100.62 112.48 116.52 122.50
-- Return of capital.................. 0 0 0 0 0 0
Source (on cash basis):
-- Sales............................... 0 0 0 0 0 0
-- Refinancing......................... 0 0 0 0 0 0
-- Other............................... 0 0 0 0 0 0
-- Operations.......................... 0 71.42 100.62 112.48 116.52 122.50
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program)................. N/A N/A 100% 100% 100% 84.41%
<CAPTION>
CPA(R):3
----------------------------------------------------------------------------
1987 1988 1989 1990 1991 1992
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues.......................... $ 8,394,566 $8,582,478 $8,774,232 $8,713,691 $8,699,175 $8,478,263
Profit on sale of properties............ N/A N/A N/A N/A N/A N/A
Extraordinary charges on extinguishment
of debt................................ N/A N/A N/A N/A N/A N/A
Write-down of property.................. N/A N/A N/A N/A N/A N/A
Other income............................
Less:
Operating expenses..................... 583,208 568,793 622,281 713,979 855,729 1,533,036
Interest expense....................... 2,459,640 2,376,215 2,332,100 2,184,359 2,073,632 1,936,878
Depreciation........................... 108,357 108,208 108,911 108,434 108,272 108,132
Net Income-GAAP Basis................... 5,243,361 5,529,262 5,710,940 5,706,919 5,631,542 4,900,217
Taxable Income (Loss):
-- from operations..................... 2,492,141 2,938,913 3,240,014 3,295,198 3,439,197 5,452,217
-- from gain on sale................... 0 0 0 0 0 0
-- from extraordinary charge........... 0 0 0 0 0 0
Cash generated from operations(3)....... 5,458,974 5,743,427 5,749,481 5,785,928 5,712,639 5,252,425
Cash generated from sales............... 0 0 0 0 0 0
Cash generated from refinancing......... 0 0 0 0 0 0
Cash generated from other............... 0 0 0 0 0 8,533,614(5)
Cash generated from operations, sales,
refinancing and other.................. 5,458,974 5,743,427 5,749,481 5,785,928 5,712,639 13,786,039
Less: Cash distribution to investors:
-- from operating cash flow(4)......... 4,073,945 3,830,020 4,131,061 4,469,143 4,649,632 4,925,081
-- from sales and refinancing.......... 5,280,000 0 0 0 0 0
-- other............................... 0 0 0 0 0 3,333,333(5)
Cash generated (deficiency) after cash
distributions.......................... (3,894,971) 1,913,407 1,618,420 1,316,785 1,063,007 5,527,625
Less: Special items..................... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items........ (3,894,971) 1,913,407 1,618,420 1,316,785 1,063,007 5,527,625
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income........................ $ 74.01 $ 87.28 $ 96.22 $ 97.86 $ 102.13 $ 161.91
Capital gain........................... 0 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis)
-- Investment income.................. 155.71 113.74 122.68 132.72 138.08 145.52
-- Return of capital.................. 123.68 0 0 0 0 100.74
Source (on cash basis):
-- Sales............................... 160.0 0 0 0 0 0
-- Refinancing......................... 0 0 0 0 0 0
-- Other............................... 0 0 0 0 0 100.00(5)
-- Operations.......................... 119.40 113.74 122.68 132.72 138.08 146.26
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program)................. 84.41% 84.41% 84.41% 84.41% 84.41% 84.41%
<CAPTION>
CPA(R):3
-----------------------------------------------------------------------
1993 1994 1995 1996 1997
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross Revenues.......................... $ 7,554,227 $7,391,852 $7,249,265 $5,730,082 $8,104,707
Profit on sale of properties............ N/A N/A N/A N/A N/A
Extraordinary charges on extinguishment
of debt................................ N/A N/A N/A N/A N/A
Write-down of property.................. (1,302,318)(6) (697,325)(7) (146,184)(8) N/A N/A
Other income............................ 11,499,187(9) N/A N/A
Less:
Operating expenses..................... 1,441,186 1,719,172 1,173,053 1,031,997 1,227,688
Interest expense....................... 1,734,434 1,602,175 1,255,047 75,158 17,744
Depreciation........................... 147,229 158,367 198,590 188,893 215,272
Net Income-GAAP Basis................... 2,929,060 3,214,813 15,975,567 4,434,034 6,644,003
Taxable Income (Loss):
-- from operations..................... 5,504,655 4,461,854 23,951,874 2,988,189 5,502,953
-- from gain on sale................... 0 0 157,910 0
-- from extraordinary charge........... 0 0 0
Cash generated from operations(3)....... 4,387,721 4,647,375 12,917,577 3,906,606 4,587,044
Cash generated from sales............... 0 0 5,435,869(9) 1,853,816(10) 0
Cash generated from refinancing......... 0 0
Cash generated from other............... 2,260,792 2,286,195 0 0 0
Cash generated from operations, sales,
refinancing and other.................. 6,648,513 6,933,570 18,353,446 5,760,422 4,587,044
Less: Cash distribution to investors:
-- from operating cash flow(4)......... 4,606,531 4,656,367 4,722,367 3,319,280 4,214,958
-- from sales and refinancing.......... 0 0 0 0 0
-- other............................... 0 0 8,000,000 0 0
Cash generated (deficiency) after cash
distributions.......................... 2,041,982 2,277,203 5,631,079 2,441,142 372,086
Less: Special items..................... 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items........ 2,041,982 2,277,203 5,361,079 2,441,142 372,086
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income........................ $ 163.47 $ 132.50 $ 711.33 $ 88.74 $ 163.42
Capital gain........................... 0 0 0 4.69 0
Cash Distributions to Investors:
Source (on GAAP basis)
-- Investment income.................. 86.98 95.47 376.83 98.57 125.17
-- Return of capital.................. 48.83 41.82 0 0 0
Source (on cash basis):
-- Sales............................... 0 0 0 0 0
-- Refinancing......................... 0 0 0 0 0
-- Other............................... 0 0 0 0 0
-- Operations.......................... 136.80 138.28 140.24 98.57 125.17
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program)................. 84.41% 84.41% 84.41% 68.83% 68.83%
</TABLE>
FOOTNOTES
(1) Results from the sale of properties net leased to Commodities Corporation
and Knudsen Corporation.
(2) Represents unamortized balance of deferred charges in connection with
refinancing of mortgage loan on property net leased to Gibson Greeting
Cards, Inc. and pay-off of mortgage loan on property net leased to The
Leslie Fay Company.
A-7
<PAGE> 23
(3) For the years up to and including 1985, the figures for cash generated from
operations were derived from the Statements of Changes in Financial
Position, whereas for the years after 1985, the figures were derived from
the Statements of Cash Flows in accordance with SFAS. No. 95. In
determining Cash from Operations pursuant to the Statement of Cash Flows,
the effects of changes primarily in accrued liabilities, receivables and
other assets are taken into account but other items such as principal
amortization of loans are not included. Cash from operations pursuant to
the Statement of Changes in Financial Position includes the effect of loan
amortization, but excludes the effects of changes in accrued liabilities,
receivables and other assets.
(4) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations
in prior years that has not previously been distributed.
(5) Represents deposit received from Leslie Fay Co. in the amount of $8,533,614
for partial payment due under a purchase option for property it leases in
Wilkes Barre, Pennsylvania. $3,333,333 of this amount was distributed to
partners in July 1992.
(6) Represents write-down of the Moorestown, N.J. property.
(7) Represents write-down of the Reno, Nevada property.
(8) Represents write-down of the Leslie Fay property to net sales proceeds.
(9) Results of settlement with Leslie Fay.
(10) Represents sales proceeds of property in Wilkes Barre, Pennsylvania.
NOTES
(1) CPA(R):3 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $26.38 and April
1998 -- $25.00.
A-8
<PAGE> 24
TABLE III (4 OF 11)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase of
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PARTNERSHIPS. MORTGAGE FINANCING FOR THE CPA(R)
PARTNERSHIPS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR
INVESTMENT BY SUCH PARTNERSHIPS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):4
-------------------------------------------------------------------------------
1982 1983 1984 1985 1986 1987
-------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues............................... $ 5,916 $7,136,840 $10,976,004 $10,950,473 $10,021,241 $ 8,733,350
Profit on sale of properties................. N/A N/A N/A N/A 1,454,064(1) N/A
Extraordinary gain........................... N/A N/A N/A N/A N/A N/A
Write-down of property....................... N/A N/A N/A N/A (2,266,656)(2) N/A
Extraordinary charge on extinguishment of
debt........................................ N/A N/A N/A N/A N/A N/A
Other........................................ N/A N/A N/A N/A N/A N/A
Less:
Operating expenses.......................... 9,137 274,260 245,150 278,838 529,941 566,780
Interest expense............................ 5,784 3,180,356 5,453,442 5,395,023 5,149,287 4,101,592
Depreciation................................ 1,302 346,155 808,870 828,303 1,059,071 1,628,118
Net Income (Loss)-GAAP Basis................. (10,307) 3,336,069 4,468,542 4,448,309 2,470,350 2,436,860
Taxable Income (Loss):
-- from operations.......................... (2,604) 781,413 (281,447) (98,623) (402,328) (433,637)
-- from gain on sale........................ 0 0 0 0 4,047,994(1) 0
-- from extraordinary charge................ 0 0 0 0 0 0
-- other.................................... 0 0 0 0 0 0
Cash generated from operations(6)............ (3,135) 3,471,621 4,787,836 4,728,701 4,857,156 4,115,421
Cash generated from sales.................... 0 0 0 0 4,483,969(1) 0
Cash generated from refinancing.............. 0 0 0 0 0 0
Cash generated from other.................... 0 0 0 0 0 0
Cash generated from operations, sales,
refinancing and other....................... (3,135) 3,471,621 4,787,836 4,728,701 9,341,125 4,115,421
Less: Cash distribution to investors:
-- from operating cash flow(8).............. 0 2,345,537 4,565,144 4,603,376 4,639,789 4,594,265
-- from sales and refinancing............... 0 0 0 0 0 1,711,359
Cash generated (deficiency) after cash
distributions............................... 0 1,126,084 222,692 125,325 4,701,336 (2,190,203)
Less: Special items.......................... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items............. 0 1,126,084 222,692 125,325 4,701,336 (2,190,203)
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss)...................... $ 0 $ 21.01 $ (6.18) $ (2.17) $ (8.84) $ (9.52)
Other....................................... 0 0 0 0 0 0
Capital gain................................ 0 0 0 0 88.94 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income........................ 0 63.06 98.18 97.73 54.28 53.53
-- Return of capital........................ 0 0 2.12 3.41 47.66 87.02
Source (on cash basis):
-- Sales.................................... 0 0 0 0 0 40.00
-- Refinancing.............................. 0 0 0 0 0 0
-- Operations............................... 0 63.06 100.30 101.14 101.94 100.55
Amount (in percentage terms) remaining
invested in program properties at the end of
the last year reported in the Table
(original total acquisition cost of
properties retained divided by original
total acquisition cost of all properties in
program).................................... N/A N/A 100% 100% 85.20% 85.20%
<CAPTION>
CPA(R):4
---------------------------------------------------------------------
1988 1989 1990 1991 1992
---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Gross Revenues............................... $9,117,527 $9,393,587 $ 9,694,000 $9,653,180 $9,959,144
Profit on sale of properties................. N/A N/A N/A N/A N/A
Extraordinary gain........................... N/A N/A 2,080,304(3) N/A N/A
Write-down of property....................... N/A N/A (2,080,304)(2) N/A N/A
Extraordinary charge on extinguishment of
debt........................................ (160,000)(4) (70,266)(5) N/A N/A N/A
Other........................................ N/A N/A N/A N/A (44,308)(7)
Less:
Operating expenses.......................... 538,523 614,235 752,499 790,950 1,647,627
Interest expense............................ 3,805,805 3,552,960 3,504,016 3,441,293 3,309,359
Depreciation................................ 1,468,317 1,243,008 1,207,776 1,184,801 1,259,693
Net Income (Loss)-GAAP Basis................. 3,144,882 3,913,118 4,229,709 4,236,136 3,698,157
Taxable Income (Loss):
-- from operations.......................... 561,034 1,408,950 1,518,550 1,702,996 1,737,637
-- from gain on sale........................ 0 0 0 0 0
-- from extraordinary charge................ (160,000)(4) (70,266)(5) 0 0 0
-- other.................................... 0 0 0 0 (14,801)(7)
Cash generated from operations(6)............ 4,763,309 5,289,802 5,611,039 5,479,320 5,071,063
Cash generated from sales.................... 0 0 0 0 0
Cash generated from refinancing.............. 0 0 0 0 0
Cash generated from other.................... 0 0 0 0 14,195(7)
Cash generated from operations, sales,
refinancing and other....................... 4,763,309 5,289,802 5,611,039 5,479,320 5,085,258
Less: Cash distribution to investors:
-- from operating cash flow(8).............. 4,522,360 4,564,233 4,627,954 4,729,905 4,819,116
-- from sales and refinancing............... 0 0 0 0 0
Cash generated (deficiency) after cash
distributions............................... 240,949 725,569 983,085 749,415 266,142
Less: Special items.......................... 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items............. 240,949 725,569 983,085 749,415 266,142
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss)...................... $ 12.33 $ 29.41 $ 33.36 $ 37.42 $ 38.18
Other....................................... 0 0 0 0 (0.33)
Capital gain................................ 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income........................ 69.10 85.97 92.93 93.07 81.25
-- Return of capital........................ 30.26 14.31 8.75 10.85 24.63
Source (on cash basis):
-- Sales.................................... 0 0 0 0 0
-- Refinancing.............................. 0 0 0 0 0
-- Operations............................... 99.36 100.28 101.68 103.92 105.88
Amount (in percentage terms) remaining
invested in program properties at the end of
the last year reported in the Table
(original total acquisition cost of
properties retained divided by original
total acquisition cost of all properties in
program).................................... 85.20% 85.20% 85.20% 85.20% 85.20%
<CAPTION>
CPA(R):4
-------------------------------------------------------------------------
1993 1994 1995 1996 1997
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Revenues............................... $12,450,374 $11,570,621 $11,896,324 $ 9,322,373(12) $10,225,363
Profit on sale of properties................. N/A N/A 3,330,098(10) N/A N/A
Extraordinary gain........................... 345,000(9) N/A N/A N/A N/A
Write-down of property....................... N/A N/A N/A N/A (2,316,000)(13)
Extraordinary charge on extinguishment of
debt........................................ N/A N/A N/A N/A N/A
Other........................................ N/A N/A N/A 1,118,318(11) 681,316(14)
Less:
Operating expenses.......................... 3,375,359 3,590,081 3,299,454 1,090,215 1,299,302
Interest expense............................ 2,987,868 2,396,017 2,098,857 1,515,248 847,596
Depreciation................................ 1,346,641 1,141,143 1,149,525 921,702 835,836
Net Income (Loss)-GAAP Basis................. 5,085,506 4,443,380 8,678,586 6,913,526 5,607,945
Taxable Income (Loss):
-- from operations.......................... 3,540,526 2,462,537 7,224,511 5,049,765 5,998,404
-- from gain on sale........................ 957,340 0 9,318,375 0 0
-- from extraordinary charge................ 0 0 0 0 0
-- other.................................... 0 0 0 0 0
Cash generated from operations(6)............ 6,231,586 5,772,103 6,099,480 7,167,641 7,465,721
Cash generated from sales.................... 0 0 9,477,492 0 0
Cash generated from refinancing.............. 0 0 0 0 0
Cash generated from other.................... 0 0 0 0 0
Cash generated from operations, sales,
refinancing and other....................... 6,231,586 5,772,103 15,576,972 7,167,641 7,465,721
Less: Cash distribution to investors:
-- from operating cash flow(8).............. 4,854,619 4,878,286 4,780,885 4,452,597 6,727,737
-- from sales and refinancing............... 0 0 4,321,616 0 0
Cash generated (deficiency) after cash
distributions............................... 1,376,967 893,817 6,474,471 2,715,044 737,984
Less: Special items.......................... 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items............. 1,376,967 893,817 6,474,471 2,715,044 737,984
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss)...................... $ 77.79 $ 54.10 $ 158.73 $ 110.95 $ 131.79
Other....................................... 0 0 0 0 0
Capital gain................................ 21.03 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income........................ 106.66 97.62 190.68 97.83 123.21
-- Return of capital........................ 0 9.56 9.31 0 24.60
Source (on cash basis):
-- Sales.................................... 0 0 0 0 0
-- Refinancing.............................. 0 0 0 0 0
-- Operations............................... 106.66 107.18 105.04 97.83 147.81
Amount (in percentage terms) remaining
invested in program properties at the end of
the last year reported in the Table
(original total acquisition cost of
properties retained divided by original
total acquisition cost of all properties in
program).................................... 85.20% 85.20% 70.68% 70.68% 70.68%
</TABLE>
A-9
<PAGE> 25
FOOTNOTES
(1) Results from the sale of properties net leased to Knudsen Corporation.
(2) Represents writedown of Beaumont, Texas property, formerly net leased to
Gulf Consolidated Services, Inc.
(3) Represents gain on restructuring of debt on Beaumont, Texas property
formerly net leased to Gulf Consolidated Services, Inc.
(4) Represents prepayment charge resulting from refinancing of the original
loan for property net leased to Simplicity Manufacturing, Inc.
(5) Represents prepayment charge resulting from refinancing of the original
loan for property net leased to Brodart Co.
(6) For the years up to and including 1985, the figures for cash generated from
operations were derived from the Statements of Changes in Financial
Position, whereas for the years after 1985, the figures were derived from
the Statements of Cash Flows in accordance with SFAS No. 95. In determining
Cash from Operations pursuant to the Statement of Cash Flows, the effects
of changes primarily in accrued liabilities, receivables and other assets
are taken into account, but other items such as principal amortization of
loans are not included. Cash from operations pursuant to the Statement of
Changes in Financial Position includes the effect of loan amortization, but
excludes the effects of changes in accrued liabilities, receivables and
other assets.
(7) Represents acquisition of hotel operations for a property formerly leased
to Integra-A Hotel and Restaurant Company.
(8) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations
in prior years that has not previously been distributed.
(9) Represents extinguishment of debt on the property located in Beaumont,
Texas.
(10) Results from sale of property net leased to Genesco, Inc.
(11) Includes equity income and net hotel operating results for 1996.
(12) Results from the exchange of a hotel property in Kenney, Louisiana for an
investment in American General Hospitality Operating Partnership L.D.
(13) Represents writedown of the property net leased to Simplicity
Manufacturing, Inc.
(14) Represents equity income for 1997.
NOTES
(1) CPA(R):4 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $52.68; April,
1998 -- $24.64 and a liquidating distribution of $120.38.
A-10
<PAGE> 26
TABLE III (5 OF 11)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase of
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PARTNERSHIPS. MORTGAGE FINANCING FOR THE CPA(R)
PARTNERSHIPS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR
INVESTMENT BY SUCH PARTNERSHIPS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):5
--------------------------------------------------------------------------------
1983 1984 1985 1986 1987 1988
-------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues.......................... $151,212 $7,692,603 $9,285,385 $12,857,025 $14,405,568 $15,061,441
Other................................... N/A N/A N/A N/A N/A N/A
Profit (loss) on sale or disposition of
properties............................. N/A N/A N/A N/A (457,484)(1) N/A
Extraordinary charge on extinguishment
of debt................................ N/A N/A N/A N/A N/A N/A
Write-down of property.................. N/A N/A N/A (860,000)(4) N/A N/A
Less:
Operating expenses..................... 81,016 195,585 363,490 493,702 1,327,685 758,159
Interest expenses...................... 1,041 1,828,708 3,557,103 6,447,584 7,050,466 6,926,712
Depreciation........................... 0 90,662 890,342 2,300,987 2,506,914 2,637,104
Minority Interest...................... N/A N/A N/A 80,834 165,810 197,354
Net Income-GAAP Basis................... 69,155 5,577,648 4,474,450 2,673,918 2,897,209 4,542,112
Taxable Income (Loss):
-- from operations..................... 83,341 4,180,317 2,173,368 277,783 (1,015,507) 406,029
-- from gain (loss) on sale or
disposition........................... 0 0 0 0 (1,065,808) 0
-- from other.......................... 0 0 0 0 0 0
Cash generated from operations(10)...... 77,254 5,612,247 5,157,259 6,550,334 5,622,209 6,571,710
Cash generated from sales............... 0 0 0 0 500,000(1) 0
Cash generated from refinancing......... 0 0 0 0 0 0
Cash generated from operations, sales
and refinancing........................ 77,254 5,612,247 5,157,259 6,550,334 6,122,209 6,571,710
Less: Cash distribution to investors:
-- from operating cash flow(11)........ 0 5,150,600 5,324,013 5,481,771 5,535,961 5,587,744
-- from sales and refinancing.......... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions.......................... 77,254 461,647 (166,754) 1,068,563 586,248 983,966
Less: special items.....................
Cash generated (deficiency) after cash
distributions and special items........ 77,254 461,647 (166,754) 1,068,563 586,248 983,966
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................. $ 1.38 $ 69.43 $ 36.09 $ 4.61 $ (16.87) $ 6.74
Capital gain (loss).................... 0 0 0 0 (17.69) 0
Other.................................. 0 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income................... 0 85.54 74.31 44.41 48.12 75.43
-- Return of capital................... 0 0 14.11 46.63 43.82 17.37
Source (on cash basis):
-- Sales............................... 0 0 0 0 0 0
-- Refinancing......................... 0 0 0 0 0 0
-- Operations.......................... 0 85.54 88.42 91.04 91.94 92.80
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program.................. N/A N/A N/A N/A N/A 98.51%
<CAPTION>
CPA(R):5
-------------------------------------------------------------------------
1989 1990 1991 1992 1993
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Revenues.......................... $15,324,326 $14,912,517 $15,167,339 $18,195,423(8) $18,260,614
Other................................... N/A N/A (103,595)(5) 1,872,534 214,978(12)
Profit (loss) on sale or disposition of
properties............................. 47,319(2) N/A (35,987)(6) (488,795)(9) N/A
Extraordinary charge on extinguishment
of debt................................ N/A (32,714)(3) N/A N/A N/A
Write-down of property.................. N/A N/A (300,000)(7) N/A (323,611)(13)
Less:
Operating expenses..................... 1,305,074 1,503,721 3,354,854 6,111,874 6,417,993
Interest expenses...................... 7,052,901 6,512,534 6,042,335 5,293,044 4,941,889
Depreciation........................... 2,632,299 2,620,793 2,622,033 2,317,013 2,295,887
Minority Interest...................... 17,714 114,721 (174,657) N/A N/A
Net Income-GAAP Basis................... 4,363,657 4,128,034 2,883,192 5,857,231 4,496,212
Taxable Income (Loss):
-- from operations..................... 799,445 857,331 1,077,650 1,530,150 2,039,288
-- from gain (loss) on sale or
disposition........................... 87,421(2) 488,066 (2,674)(6) 871,676 0
-- from other.......................... 0 0 (154,918)(5) 2,617,784(8) 0
Cash generated from operations(10)...... 6,911,989 5,895,617 5,278,070 6,202,200 6,241,041
Cash generated from sales............... 239,362(2) 0 120,000(6) 0 0
Cash generated from refinancing......... 0 0 0 0 0
Cash generated from operations, sales
and refinancing........................ 7,151,351 5,895,617 5,398,070 6,202,200 6,241,041
Less: Cash distribution to investors:
-- from operating cash flow(11)........ 5,635,916 5,684,084 5,732,256 5,780,425 5,828,596
-- from sales and refinancing.......... 0 0 0 0 0
Cash generated (deficiency) after cash
distributions.......................... 1,515,435 211,533 (334,186) 421,775 412,445
Less: special items..................... 0
Cash generated (deficiency) after cash
distributions and special items........ 1,515,435 211,533 (334,186) 421,775 412,445
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................. $ 13.28 $ 14.24 $ 17.90 $ 25.41 $ 33.87
Capital gain (loss).................... 1.45 0 (0.04) 14.48 0
Other.................................. 0 0 0 43.48 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income................... 72.47 68.56 47.88 96.00 74.67
-- Return of capital................... 21.13 25.84 47.32 0 22.13
Source (on cash basis):
-- Sales............................... 0 0 0 0 0
-- Refinancing......................... 0 0 0 0 0
-- Operations.......................... 93.60 94.40 95.20 96.00 96.80
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program.................. 98.51% 97.60% 97.45% 94.12% 94.12%
<CAPTION>
CPA(R):5
--------------------------------------------------------------
1994 1995 1996 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Gross Revenues.......................... $18,125,156 $15,768,137 $13,204,966 $ 9,749,000
Other................................... N/A N/A N/A N/A
Profit (loss) on sale or disposition of
properties............................. 1,242,614(14) 614,234(16) 5,284,165(18) 956,829(20)
Extraordinary charge on extinguishment
of debt................................ (117,619)(15) N/A N/A N/A
Write-down of property.................. 0 (1,980,550)(17) (1,300,000)(19) (1,350,000)(21)
Less:
Operating expenses..................... 7,111,014 6,927,470 6,006,397 4,176,004
Interest expenses...................... 4,518,529 3,495,872 2,075,230 1,363,680
Depreciation........................... 2,181,432 2,065,781 1,331,028 1,131,397
Minority Interest...................... N/A N/A N/A N/A
Net Income-GAAP Basis................... 5,439,186 1,912,698 7,776,476 2,685,448
Taxable Income (Loss):
-- from operations..................... 866,115 1,621,566 1,690,288 1,481,174
-- from gain (loss) on sale or
disposition........................... 10,019,470 0 8,338,765 2,927,201
-- from other.......................... 0 0 0 0
Cash generated from operations(10)...... 6,292,833 4,688,070 7,901,310 4,393,646
Cash generated from sales............... 0 1,187,362(16) 8,583,803 0
Cash generated from refinancing......... 0 0 0 0
Cash generated from operations, sales
and refinancing........................ 6,292,833 5,875,432 16,485,113 4,393,646
Less: Cash distribution to investors:
-- from operating cash flow(11)........ 5,862,314 8,054,982 4,456,949 5,175,122
-- from sales and refinancing.......... 0 0 0 792,400(18)
Cash generated (deficiency) after cash
distributions.......................... 430,519 (2,179,550) 12,028,164 (1,573,876)
Less: special items..................... 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items........ 430,519 (2,179,550) 12,028,164 (1,573,876)
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................. $ 14.87 $ 26.93 $ 28.07 $ 24.60
Capital gain (loss).................... 166.40 0 141.45 48.61
Other.................................. 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income................... 90.33 31.77 74.02 44.60
-- Return of capital................... 7.03 102.01 0 54.51
Source (on cash basis):
-- Sales............................... 0 0 0 0
-- Refinancing......................... 0 0 0 0
-- Operations.......................... 97.36 133.78 74.02 99.11
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program.................. 92.97% 81.82% 63.06% 46.45%
</TABLE>
A-11
<PAGE> 27
FOOTNOTES
(1) Represents sale of Buffalo, New York property formerly net leased to
Williams Hand Tool, Inc.
(2) Represents exchange of property net leased to Industrial General
Corporation.
(3) Represents prepayment charge resulting from refinancing of the original
loan for property net leased to Pace Membership Warehouse, Inc.
(4) Represents write-down of Buffalo, New York property formerly net leased to
Williams Hand Tool, Inc.
(5) Represents acquisition of hotel operations for properties formerly leased
to subsidiaries of Landmark Hotel Corporation.
(6) Results from the sale of a 3.0815 acre parcel of land which was a portion
of the property net leased to Industrial General Corporation.
(7) Represents write-down of Columbus, Georgia property leased to Williams Hand
Tool, Inc.
(8) Represents a gain on release of mortgage escrow funds and related interest
income earned in the escrow reserve accounts for the hotel properties
located in Alpena and Petoskey, Michigan.
(9) Represents disposition of Columbus, Georgia property formerly leased to
Williams Hand Tool, Inc. and sale of a parcel of land in Elyria, Ohio
formerly leased to Industrial General Corporation.
(10) For the years up to and including 1985, the figures for cash generated from
operations were derived from the Statements of Changes in Financial
Position, whereas for the years after 1985, the figures were derived from
the Statements of Cash Flows in accordance with SFAS No. 95. In determining
Cash from Operations pursuant to the Statement of Cash Flows, the effects
of changes primarily in accrued liabilities, receivables and other assets
are taken into account but other items such as principal amortization of
loans are not included. Cash from operations pursuant to the Statement of
Changes in Financial Position includes the effect of loan amortization, but
excludes the effects of changes in accrued liabilities, receivables and
other assets.
(11) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations
in prior years that has not previously been distributed.
(12) Results from the settlement and lease termination agreement for the hotel
properties in Michigan.
(13) Represents write-down of the preferred stock investment and the estimated
residual value of the South Boston and Kenbridge, Virginia properties.
(14) Results from sale of the Tampa, Florida and the Forrest City, Arkansas
properties.
(15) Represents the extinguishment of debt on the Tampa, Florida property and
properties located in Gordonsville, Virginia and North Bergen, NJ.
(16) Results from sale of properties in Bold Knob, Arkansas, Ballville, Ohio,
Newburyport, Massachusetts, Gardensville, Virginia and North Bergen, New
Jersey.
(17) Represents the writedown of hotel property in Rapid City, South Dakota and
the property on Elepia, Ohio; and writing off the note receivable and
preferred stock of Rochester Butten Company.
(18) Represents sale of property in Hodgkins, Illinois leased to GATX Logistics,
Inc., property in Helena, Montana and a hotel property in Rapid City, South
Dakota.
(19) Represents write-down of hotel property in Rapid City, South Dakota. A
special distribution of $792,400 was declared and paid in January 1997.
(20) Results from foreclosure on the properties net leased to Arley Merchandise
Corporation.
(21) Represents writedown of properties net leased to Arley Merchandise
Corporation.
NOTES
(1) CPA(R):5 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $20.22 and
April -- $16.68 and a liquidating distribution of $46.48.
A-12
<PAGE> 28
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase of
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PARTNERSHIPS. MORTGAGE FINANCING FOR THE CPA(R)
PARTNERSHIPS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR
INVESTMENT BY SUCH PARTNERSHIPS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):6
-----------------------------------------------------------------------------------
1985 1986 1987 1988 1989 1990
---------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues.......................... $4,200,601 $6,432,252 $9,898,043 $11,197,061 $10,904,247 $11,092,133
Gain on sale............................ 0 0 0 0 0 0
Other................................... 0 0 0 0 0 0
Extraordinary (charge) gain............. 0 0 0 0 0 0
Less:
Operating expenses..................... 215,852 333,030 573,786 558,887 575,222 802,183
Interest expense....................... 792,434 2,111,626 4,736,879 5,416,130 5,388,140 5,269,354
Depreciation........................... 5,709 278,305 1,095,292 1,405,857 1,418,340 1,418,339
Net Income-GAAP Basis................... 3,186,606 3,709,291 3,492,083 3,816,187 3,522,545 3,602,257
Taxable Income:
-- from operations..................... 2,650,283 2,577,849 982,403 1,219,990 1,218,257 1,338,235
-- from gain on sale................... 0 0 0 0 0 0
-- from extraordinary charge........... 0 0 0 0 0 0
-- from other.......................... 0 0 0 0 0 0
Cash generated from operations(4)....... 3,194,889 4,509,489 5,239,285 4,983,579 5,032,548 5,201,952
Cash generated from sales............... 0 0 0 0 0 0
Cash generated from refinancing......... 0 0 0 0 0 0
Cash generated from other............... 0 0 0 0 0 0
Cash generated from operations, sales,
refinancing and other.................. 3,194,889 4,509,489 5,239,285 4,983,579 5,032,548 5,201,952
Less: Cash distribution to investors:
-- from operating cash flow(5)......... 2,422,433 4,274,550 4,154,307 4,198,176 4,247,146 4,316,026
-- from sales and refinancing.......... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions.......................... 772,456 234,939 1,084,978 785,403 785,402 885,926
Less: Special items.................... 0 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items........ 772,456 234,939 1,084,978 785,403 785,402 885,926
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................. $ 51.96 $ 50.54 $ 19.26 $ 23.92 $ 23.88 $ 26.23
Other.................................. 0 0 0 0 0 0
Capital gain........................... 0 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income.................. 47.49 72.72 68.46 74.81 69.06 70.62
-- Return of capital.................. 0 7.85 12.98 7.49 14.20 13.99
Source (on cash basis):
-- Sales.............................. 0 0 0 0 0 0
-- Refinancing........................ 0 0 0 0 0 0
-- Operations......................... 47.49 80.57 81.44 82.30 83.26 84.61
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program)................. N/A N/A N/A 100% 100% 100%
<CAPTION>
CPA(R):6
-------------------------------------------------------------------------------
1991 1992 1993 1994 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Revenues.......................... $11,406,582 $14,177,113 $15,387,180 $15,693,853 $16,737,899
Gain on sale............................ 0 0 0 0 0
Other................................... (55,783)(1) (75,211)(3) N/A N/A N/A
Extraordinary (charge) gain............. (13,559)(2) 0 N/A N/A 2,088,268(6)
Less:
Operating expenses..................... 1,078,174 2,858,645 4,706,491 5,933,070 4,942,528
Interest expense....................... 5,222,844 5,319,971 5,122,703 5,040,589 4,499,692
Depreciation........................... 1,418,968 1,668,951 1,637,678 1,621,029 1,525,011
Net Income-GAAP Basis................... 3,617,254 4,254,335 3,920,308 3,099,165 7,858,936
Taxable Income:
-- from operations..................... 1,831,848 2,227,427 2,091,787 1,156,303 7,871,636
-- from gain on sale................... 0 0 0 0 0
-- from extraordinary charge........... (13,559)(2) 0 0 0 0
-- from other.......................... (250,032)(1) 27,303(3) 0 0 0
Cash generated from operations(4)....... 5,719,005 6,066,705 5,531,994 5,094,336 11,133,036
Cash generated from sales............... 0 0 0 0 0
Cash generated from refinancing......... 870,913 2,414,076 0 0 0
Cash generated from other............... 0 17,008(3) 0 0 0
Cash generated from operations, sales,
refinancing and other.................. 6,589,918 8,497,789 5,531,994 5,094,336 11,133,036
Less: Cash distribution to investors:
-- from operating cash flow(5)......... 4,421,586 4,633,297 4,676,223 4,704,691 4,736,359
-- from sales and refinancing.......... 0 0 0 0 0
Cash generated (deficiency) after cash
distributions.......................... 2,168,332 3,864,492 855,771 389,645 6,396,677
Less: Special items.................... 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items........ 2,168,332 3,864,492 855,771 389,645 6,396,677
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................. $ 35.65 $ 43.67 $ 41.01 $ 22.67 $ 154.38
Other.................................. 0 0.54 0 0 0
Capital gain........................... 0 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income.................. 70.91 83.40 76.85 60.76 92.89
-- Return of capital.................. 15.77 7.43 14.82 31.47 0
Source (on cash basis):
-- Sales.............................. 0 0 0 0 0
-- Refinancing........................ 0 0 0 0 0
-- Operations......................... 86.68 90.83 91.67 92.23 92.89
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program)................. 100% 100% 100% 100% 100%
<CAPTION>
CPA(R):6
------------------------------
1996 1997
----------- -----------
<S> <C> <C>
Gross Revenues.......................... $16,537,296 $17,384,088
Gain on sale............................ 70,878(7) N/A
Other................................... N/A N/A
Extraordinary (charge) gain............. N/A N/A
Less:
Operating expenses..................... 4,914,538 5,048,701
Interest expense....................... 4,003,726 3,715,143
Depreciation........................... 1,664,514 1,780,317
Net Income-GAAP Basis................... 6,025,396 6,839,927
Taxable Income:
-- from operations..................... 3,450,345 4,530,411
-- from gain on sale................... 242,713 0
-- from extraordinary charge........... 0 0
-- from other.......................... 0 0
Cash generated from operations(4)....... 7,615,526 8,075,717
Cash generated from sales............... 0 0
Cash generated from refinancing......... 0 0
Cash generated from other............... 0 0
Cash generated from operations, sales,
refinancing and other.................. 7,615,526 8,075,717
Less: Cash distribution to investors:
-- from operating cash flow(5)......... 4,880,911 7,002,505
-- from sales and refinancing..........
Cash generated (deficiency) after cash
distributions.......................... 2,734,615 1,073,212
Less: Special items.................... 0 0
Cash generated (deficiency) after cash
distributions and special items........ 2,734,615 1,073,212
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss)................. $ 67.67 $ 88.85
Other.................................. 0 0
Capital gain........................... 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income.................. 95.72 134.14
-- Return of capital.................. 0 3.19
Source (on cash basis):
-- Sales.............................. 0 0
-- Refinancing........................ 0 0
-- Operations......................... 95.72 137.33
Amount (in percentage terms) remaining
invested in program properties at the
end of the last year reported in the
Table (original total acquisition cost
of properties retained divided by
original total acquisition cost of all
properties in program)................. 99.79% 99.79%
</TABLE>
FOOTNOTES
(1) Represents acquisition of hotel operations for properties formerly leased to
subsidiaries of Landmark Hotel Corporation.
(2) Represents unamortized balance of deferred charges in connection with the
refinancing of the mortgage loan secured by a property leased to Martin
Marrietta Corporation.
(3) Represents acquisition of hotel operations for property formerly leased to
Integra-A Hotel and Restaurant Company.
(4) For the years up to and including 1985, the figures for cash generated from
operations were derived from the Statements of Changes in Financial
Position, whereas for the years after 1985, the figures were derived from
the Statements of Cash Flows in accordance with SFAS No. 95. In determining
Cash from Operations pursuant to the Statement of Cash Flows, the effects of
changes primarily in accrued liabilities, receivables and other assets are
taken into account, but other items such as principal
A-13
<PAGE> 29
amortization of loans are not included. Cash from operations pursuant to the
Statement of Changes in Financial Position includes the effect of loan
amortization, but excludes the effects of changes in accrued liabilities,
receivables and other assets.
(5) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations in
prior years that has not previously been distributed.
(6) Represents gain on restructuring of debt on the property leased to Anthony's
Manufacturing Company, Inc.
(7) Result from the sale of two properties leased to Autozone, Inc.
NOTES
(1) CPA(R):6 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $43.09 and April,
1998 -- $24.40.
A-14
<PAGE> 30
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase
of Prior Programs, the offerings of which have been closed since December 31,
1979. This Table is designed to provide the investor with information on the
financial operations of such Prior Programs. The results shown in this Table are
in all cases for years ended December 31. THE INFORMATION PRESENTED IN THIS
TABLE SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PARTNERSHIPS. MORTGAGE FINANCING FOR THE CPA(R)
PARTNERSHIPS MAY HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR
INVESTMENT BY SUCH PARTNERSHIPS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY
ALTER CERTAIN OF THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):7
--------------------------------------------------------------------
1986 1987 1988 1989 1990
-------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Revenues............................................. $ 90,399 $4,119,934 $9,066,142 $14,071,843 $13,725,684
Profit (loss) on sale of properties........................ N/A N/A N/A N/A 58,172(1)
Gain on sale of securities................................. N/A N/A 1,766,185(3) 48,158(3) 69,544(3)
Extraordinary gain charge..................................
Write-down of property..................................... N/A N/A N/A N/A (500,000)(2)
Other...................................................... N/A N/A N/A N/A N/A
Less:
Operating expenses........................................ 46,413 326,846 1,848,463 5,576,552 6,194,008
Interest expense.......................................... 22,911 1,389,385 3,479,631 4,657,478 4,718,573
Depreciation.............................................. 0 131,567 1,009,247 1,422,116 1,567,896
Net Income-GAAP Basis...................................... 21,075 2,272,136 4,494,986 2,463,855 872,923
Taxable Income (Loss):
-- from operations........................................ (51,877) 1,203,013 1,585,180 1,195,514 3,689
-- from gain (loss) on sales.............................. 0 0 1,766,185(3) 48,158(3) 127,716(1)(3)
-- other.................................................. 0 0 0 0 0
Cash generated from operations............................. 1,550,648 1,115,274 4,136,538 3,745,289 3,153,131
Cash generated from sales.................................. 0 0 1,766,185(3) 48,158(3) 245,324
Cash generated from refinancing............................ 0 0 0 0 0
Cash generated from other.................................. 0 0 0 0 0
Cash generated from operations, sales, refinancing and
other..................................................... 1,550,648 1,115,274 5,902,723 3,793,447 3,398,455
Less: Cash distribution to investors:
-- from operating cash flow(6)............................ 0 1,363,271 3,902,233 3,940,765 3,992,781
-- from sales and refinancing............................. 0 0 0 0 0
Cash generated (deficiency) after cash distributions....... 1,550,648 (247,997) 2,000,490 (147,318) (594,326)
Less: Special items........................................ 0 0 0 0 0
Cash generated (deficiency) after cash distributions and
special items............................................. 1,550,648 (247,997) 2,000,490 (147,318) (594,326)
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss).................................... $ (4.29) $ 24.98 $ 32.91 $ 24.82 $ .08
Other..................................................... 0 0 0 0 0
Capital gain.............................................. 0 0 36.67 1.00 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income...................................... 0 60.60 81.02 51.16 18.12
-- Return of capital...................................... 0 0 0 30.66 64.78
Source (on cash basis):
-- Sales.................................................. 0 0 0 0 0
-- Refinancing............................................ 0 0 0 0 0
-- Operations............................................. 0 60.60 81.02 81.82 82.90
Amount (in percentage terms) remaining invested in
program properties at the end of the last year reported
in the Table (original total acquisition cost of
properties retained divided by original total
acquisition cost of all properties in program).......... N/A N/A N/A 100% 99.86%
<CAPTION>
CPA(R):7
----------------------------------------------------------------
1991 1992 1993 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Gross Revenues............................................. $13,648,275 $14,502,032 $12,243,029 $13,840,052
Profit (loss) on sale of properties........................ 54,197(4) N/A (552,383)(8) 7,814,474(10)
Gain on sale of securities................................. N/A N/A N/A N/A
Extraordinary gain charge.................................. 879,433(12) (511,503)
Write-down of property..................................... N/A N/A (3,303,228)(9) (641,731)(11)
Other...................................................... N/A (141,723)(5) 435,106(3) 986,155
Less:
Operating expenses........................................ 6,170,575 6,404,695 4,485,628 4,336,235
Interest expense.......................................... 4,471,097 4,155,956 3,324,398 3,537,640
Depreciation.............................................. 1,607,889 1,616,335 1,647,397 1,619,726
Net Income-GAAP Basis...................................... 1,452,911 2,183,323 244,534 11,993,846
Taxable Income (Loss):
-- from operations........................................ 746,150 1,534,247 11,218,042 2,452,425
-- from gain (loss) on sales.............................. 54,197(4) 0 2,093,467 10,460,324
-- other.................................................. 0 51,875(5) 283,740 682,500
Cash generated from operations............................. 3,303,198 4,489,865 4,135,048 5,347,231
Cash generated from sales.................................. 183,430(4) 0 283,740 14,662,004
Cash generated from refinancing............................ 978,087 0 1,047,890 700,000
Cash generated from other.................................. 0 32,313(5) 3,578 38,281
Cash generated from operations, sales, refinancing and
other..................................................... 4,464,715 4,522,178 5,470,256 20,747,516
Less: Cash distribution to investors:
-- from operating cash flow(6)............................ 3,303,198 3,388,324(7) 2,948,590 3,246,729
-- from sales and refinancing............................. 503,673 0 0 0
Cash generated (deficiency) after cash distributions....... 657,844 1,133,854 2,521,666 17,500,787
Less: Special items........................................ 0 0 0 0
Cash generated (deficiency) after cash distributions and
special items............................................. 657,844 1,133,854 2,521,666 17,500,787
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss).................................... $ 15.49 $ 31.85 $ 232.91 $ 50.92
Other..................................................... 0 1.08 5.89 14.17
Capital gain.............................................. 0 0 43.47 217.18
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income...................................... 30.17 45.33 5.08 67.41
-- Return of capital...................................... 53.03 20.86 56.14 0
Source (on cash basis):
-- Sales.................................................. 0 0 0 0
-- Refinancing............................................ 10.46 0 0 0
-- Operations............................................. 72.74 66.19 61.22 67.41
Amount (in percentage terms) remaining invested in
program properties at the end of the last year reported
in the Table (original total acquisition cost of
properties retained divided by original total
acquisition cost of all properties in program).......... 99.70% 99.70% 97.86% 83.50%
<CAPTION>
CPA(R):7
-------------------------------------------------
1995 1996 1997
----------- ----------- -----------
<S> <C> <C> <C>
Gross Revenues............................................. $12,196,252 $12,731,328 $12,706,396
Profit (loss) on sale of properties........................ 1,019,362(13) 74,729(17) N/A
Gain on sale of securities................................. 1,323,858(13) N/A N/A
Extraordinary gain charge.................................. -- N/A
Write-down of property..................................... (319,685)(14) -- (139,999)(18)
Other...................................................... 111,226(15) (128,879)(15) (128,649)(19)
Less:
Operating expenses........................................ 4,986,585 5,181,249 5,921,214
Interest expense.......................................... 2,456,129 1,942,737 1,868,189
Depreciation.............................................. 1,361,952 1,154,088 1,213,286
Net Income-GAAP Basis...................................... 5,526,347 4,399,104 3,435,066
Taxable Income (Loss):
-- from operations........................................ 3,451,813 3,856,378 3,268,674
-- from gain (loss) on sales.............................. 0 (188,980) (144,260)
-- other.................................................. 0 0 0
Cash generated from operations............................. 5,089,776 5,499,073 4,682,499
Cash generated from sales.................................. 1,546,019(13) 617,867(17) 200,000
Cash generated from refinancing............................ -- --
Cash generated from other.................................. 31,457(16) 27,761(16) 30,787
Cash generated from operations, sales, refinancing and
other..................................................... 6,667,252 6,144,701 4,913,286
Less: Cash distribution to investors:
-- from operating cash flow(6)............................ 10,434,626 3,483,017 3,751,664
-- from sales and refinancing............................. 0 0 0
Cash generated (deficiency) after cash distributions....... (3,767,490) 2,661,684 1,161,622
Less: Special items........................................ 0 0
Cash generated (deficiency) after cash distributions and
special items............................................. (3,767,490) 2,661,684 1,161,622
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss).................................... $ 71.77 $ 80.18 $ 67.95
Other..................................................... 0 0 (3.00)
Capital gain.............................................. 0 (4.14) 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income...................................... 114.82 91.47 71.42
-- Return of capital...................................... 101.98 0 6.58
Source (on cash basis):
-- Sales.................................................. 0 0
-- Refinancing............................................ 0 0
-- Operations............................................. 216.80 72.42 78.00
Amount (in percentage terms) remaining invested in
program properties at the end of the last year reported
in the Table (original total acquisition cost of
properties retained divided by original total
acquisition cost of all properties in program).......... 73.82% 73.16% 73.16%
</TABLE>
A-15
<PAGE> 31
FOOTNOTES
(1) Results from the sale of approximately 10 acres of land which was a portion
of the property net leased to Emb-Tex Corporation.
(2) Represents write-down of 10 properties formerly net leased to Yellow Front
Stores, Inc.
(3) Represents the gain on the sale of securities of Mid-Continent Bottlers,
Inc. and income from equity investments.
(4) Results of the sale of .22 acres of land formerly part of a property
located in Scottsdale, Arizona. See Table V.
(5) Represents acquisition of hotel operations for property formerly leased to
Integra-A Hotel and Restaurant Company.
(6)To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations in
prior years that has not previously been distributed.
(7) Includes $200,364 of distributions paid to the Corporate General Partner
attributable to 1991.
(8) Results from sale of properties located in Travelers Rest, South Carolina
and Phoenix, Arizona.
(9) Represents write-down of the Jupiter and Plant City, Florida properties.
(10) Results from sale of properties leased to Mid-Continent, Bottlers, Inc.
(11) Represents write-down of properties located in Fredricksburg, Virginia and
Jefferson, Georgia.
(12) Represents an extraordinary gain upon extinguishment of the Yellow Front
Stores, Inc. loan.
(13) Result of sale of the Jupiter, Florida Property.
(14) Represents writedown of Monte Vista, Colorado property.
(15) Represents earnings from discontinued operations and loss from equity
investments.
(16) Represents cash distributed from equity investments.
(17) Result of sale of property in Denham Springs, Louisiana leased to AutoZone,
Inc. and a property in Monte Vista, Colorado formerly leased to Yellow
Front Stores, Inc.
(18) Represents writedown on properties net leased to Swiss M-Tex, L.P.
(19) Represents equity income for 1997.
NOTES
(1) CPA(R):7 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $5.07 and April,
1998 -- $18.34, and a liquidity distribution of $50.63.
A-16
<PAGE> 32
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase of
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PROGRAMS. MORTGAGE FINANCING FOR THE CPA(R) PROGRAMS MAY
HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR INVESTMENT BY
SUCH PROGRAMS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY ALTER CERTAIN OF
THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):8
------------------------------------------------------------------------------------
1988 1989 1990 1991 1992 1993
---------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Gross Revenues..................... $2,877,969 $11,744,379 $14,120,755 $14,396,115 $15,176,928 $18,060,581
Profit on sale of properties....... N/A N/A N/A 1,736(1) N/A N/A
Other.............................. N/A N/A N/A N/A (51,219)(2) 21,111
Extraordinary charge............... N/A N/A N/A N/A N/A N/A
Less:
Operating expenses................ 322,625 934,022 912,831 1,214,634 2,227,334 4,151,151
Interest expense.................. 939,460 4,871,609 6,917,234 7,095,848 6,943,303 6,737,293
Depreciation...................... 214,618 877,918 1,204,389 1,490,532 1,642,518 1,935,624
Minority Interest................. N/A N/A N/A N/A N/A N/A
Net Income-GAAP Basis.............. 1,401,266 5,060,830 5,086,301 4,596,837 4,312,554 5,257,624
Taxable Income (Loss):
-- from operations................ 1,043,085 3,268,042 2,910,667 2,819,692 3,009,471 5,060,536
-- from gain on sale..............
-- from other..................... 0 0 0 1,736(1) (17,110)(2) 0
-- from extraordinary charge...... 0 0 0 0 0 0
Cash generated from operations..... 1,697,043 5,752,461 6,303,966 6,285,116 6,321,159 8,376,844
Cash generated from sales.......... 0 0 0 7,991(1) 0 0
Cash generated from refinancing.... 0 0 0 0 0 0
Cash generated from other.......... 0 0 0 0 16,408(2) 253,858
Cash generated from operations,
sales, refinancing and other...... 1,697,043 5,752,461 6,303,966 6,293,107 6,337,567 8,630,702
Less: Cash distribution to
investors:
-- from operating cash flow(4).... 728,786 5,575,793 6,165,188 6,225,409 6,285,600 6,327,785
-- from sales and refinancing..... 0 0 0 0 0 0
Cash generated (deficiency) after
cash distributions................ 968,257 176,668 138,778 67,698 51,697 2,302,917
Less: Special items................ 0 0 0 0 0 0
Cash generated (deficiency) after
cash distributions and special
items............................. 968,257 176,668 138,778 67,698 51,697 2,302,917
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss).......... $ 16.97 $ 43.41 $ 38.67 $ 37.46 $ 39.98 $ 67.23
Other........................... 0 0 0 0.02(1) (0.23)(2) 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income............ 20.91 67.23 67.57 61.07 57.29 69.84
-- Return of capital............ 0 6.84 14.33 21.63 26.21 14.22
Source (on cash basis):
-- Sales........................ 0 0 0 0 0 0
-- Refinancing.................. 0 0 0 0 0 0
-- Operations................... 20.91 74.07 81.90 82.70 83.50 84.06
Amount (in percentage terms)
remaining invested in program
properties at the end of the last
year reported in the Table
(original total acquisition cost
of properties retained divided by
original total acquisition cost of
all properties in program)........ N/A N/A 100% 99.99% 99.99% 99.99%
<CAPTION>
CPA(R):8
-----------------------------------------------------------
1994 1995 1996 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Gross Revenues..................... $18,804,769 $19,886,284 $16,207,400(5) $14,927,898
Profit on sale of properties....... N/A N/A 21,697(6) N/A
Other.............................. 83,736 (62,359)(4) 1,239,400(4) 738,979(7)
Extraordinary charge............... (120,000)(3) N/A N/A N/A
Less:
Operating expenses................ 4,445,083 3,774,470 1,242,655 1,918,771
Interest expense.................. 6,266,275 5,799,127 5,232,928 4,543,266
Depreciation...................... 1,997,946 1,912,503 1,539,737 1,325,929
Minority Interest................. N/A N/A N/A N/A
Net Income-GAAP Basis.............. 5,892,029 8,337,825 9,453,177 7,878,911
Taxable Income (Loss):
-- from operations................ 4,565,116 7,475,178 7,792,097 6,578,096
-- from gain on sale.............. 50,641 0
-- from other..................... 0 0 0 0
-- from extraordinary charge...... 0 0 0 0
Cash generated from operations..... 8,627,436 10,271,234 10,947,671 9,261,145
Cash generated from sales.......... 0 154,499 0
Cash generated from refinancing.... 0 0 0 0
Cash generated from other.......... 289,805 282,992(4) 161,795(4) 366,663
Cash generated from operations,
sales, refinancing and other...... 8,917,241 10,554,226 11,263,965 9,627,808
Less: Cash distribution to
investors:
-- from operating cash flow(4).... 6,357,899 6,413,927 6,549,558 7,357,886
-- from sales and refinancing..... 0 0 0 0
Cash generated (deficiency) after
cash distributions................ 2,559,342 4,140,299 4,714,407 2,269,922
Less: Special items................ 0 0 0 0
Cash generated (deficiency) after
cash distributions and special
items............................. 2,559,342 4,140,299 4,714,407 2,269,922
Tax and Distribution Data Per $1000
Invested
Federal Income Tax Results:
Ordinary income (loss).......... $ 60.64 $ 99.55 $ 103.77 $ 87.60
Other........................... 0 0 0 0
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income............ 78.27 85.34 87.22 97.99
-- Return of capital............ 6.19 0 0 0
Source (on cash basis):
-- Sales........................ 0 0 0 0
-- Refinancing.................. 0 0 0 0
-- Operations................... 84.46 85.34 87.22 97.99
Amount (in percentage terms)
remaining invested in program
properties at the end of the last
year reported in the Table
(original total acquisition cost
of properties retained divided by
original total acquisition cost of
all properties in program)........ 97.69% 97.69% 97.25% 97.25%
</TABLE>
A-17
<PAGE> 33
FOOTNOTES
(1) Results from the sale of a parcel of land which was a portion of the
property net leased to Furon Company.
(2) Represents acquisition of hotel operations for property formerly leased to
Integra-A Hotel and Restaurant Company.
(3) Results from the refinancing of property leased to Detroit Diesel
Corporation.
(4) Includes of equity income for 1993, 1994, 1995 and 1996 income (loss) and
hotel operating results for 1996.
(5) Results from the exchange of a hotel property in Kennes, Louisiana for an
investment in American General Hospitality Operating Partnership L.P.
(6) Results from the sale of two properties leased to Furon Company.
(7) Represents equity income for 1997.
NOTES
(1) CPA(R):8 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $10.96 and April,
1998 -- $22.06, and a liquidating distribution of $56.63.
A-18
<PAGE> 34
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase of
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PROGRAMS. MORTGAGE FINANCING FOR THE CPA(R) PROGRAMS MAY
HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR INVESTMENT BY
SUCH PROGRAMS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY ALTER CERTAIN OF
THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CPA(R):9
------------------------------------------------------------------
1989 1990 1991 1992 1993
---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Revenues.............. $2,543,943 $10,284,029 $12,514,907 $12,280,669 $12,216,612
Profit on sale of
properties................. N/A N/A 1,731(1) N/A N/A
Other....................... N/A N/A N/A N/A 658,052
Write-down of property......
Extraordinary charge........ N/A N/A N/A N/A N/A
Less:
Operating expenses......... 432,917 808,315 887,820 1,308,664 963,533
Interest expense........... 1,122,585 5,063,322 6,631,202 6,425,597 6,347,577
Depreciation............... 29,901 1,141,461 1,697,599 1,697,599 1,697,599
Minority Interest.......... N/A N/A N/A N/A N/A
Net Income-GAAP Basis....... 958,540 3,270,931 3,300,017 2,848,809 3,865,955
Taxable Income (Loss):
-- from operations......... 710,320 2,624,917 2,816,278 2,612,003 3,316,011
-- from gain on sale.......
-- from other.............. 0 0 1,731(1) 0 0
-- from extraordinary
charge.................... 0 0 0 0 0
Cash generated from
operations................. 1,784,343 3,895,420 5,662,385 5,211,896 5,906,190
Cash generated from sales... 0 0 1,897 0 522,878
Cash generated from
refinancing................ 0 0 0 0 0
Cash generated from other... 0 0 0 0 0
Cash generated from
operations, sales,
refinancing and other...... 1,784,343 3,895,420 5,664,282 5,211,896 6,429,068
Less: Cash distribution to
investors:
-- from operating cash
flow(4)................... 551,330 4,802,863 5,476,956 5,526,795 5,562,850
-- from sales and
refinancing............... 0 0 0 0 0
Cash generated (deficiency)
after cash distributions... 1,233,013 (907,443) 187,326 (314,899) 866,218
Less: Special items......... 0 0 0 0 0
Cash generated (deficiency)
after cash distributions
and special items.......... 1,233,013 (907,443) 187,326 (314,899) 866,218
Tax and Distribution Data
Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss).... $ 12.64 $ 39.38 $ 42.30 $ 39.24 $ 49.81
Capital gain..............
Other..................... 0 0 0.03(1) 0 0
Cash Distributions to
Investors:
Source (on GAAP basis):
-- Investment income...... 20.12 49.07 49.57 42.79 58.07
-- Return of capital...... 0 22.98 32.65 40.23 25.49
Source (on cash basis):
-- Sales.................. 0 0 0 0 0
-- Refinancing............ 0 0 0 0 0
-- Operations............. 20.12 72.05 82.22 83.02 83.56
Amount (in percentage terms)
remaining invested in
program properties at the
end of the last year
reported in the Table
(original total acquisition
cost of properties retained
divided by original total
acquisition cost of all
properties in program)..... N/A N/A 99.99% 99.99% 99.99%
<CAPTION>
CPA(R):9 CPA(R):10
------------------------------------------------------- ---------------------------------------
1994 1995 1996 1997 1990 1991 1992
----------- ----------- ----------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Gross Revenues.............. $11,612,360 $11,946,610 $12,074,578 $11,986,186 $1,783,676 $11,169,869 $15,889,968
Profit on sale of
properties................. N/A N/A 45,066(11) N/A N/A N/A N/A
Other....................... 669,020 (535,337)(6) 658,416(9) 687,423(9) N/A N/A N/A
Write-down of property...... N/A
Extraordinary charge........ (480,000)(4) N/A N/A N/A N/A (40,818)(2) N/A
Less:
Operating expenses......... 949,925 998,762 564,905 1,415,642 393,287 1,358,840 2,241,255
Interest expense........... 5,726,296 5,525,604 5,360,760 5,121,709 711,223 5,149,717 7,460,861
Depreciation............... 1,697,599 1,697,599 1,677,253 1,450,319 230,176 1,242,512 1,756,126
Minority Interest.......... N/A N/A N/A 0 72,594 492,191 570,880
Net Income-GAAP Basis....... 3,427,560 3,189,308 5,175,142 4,685,939 376,396 2,885,791 3,860,846
Taxable Income (Loss):
-- from operations......... 3,030,197 3,805,214 4,431,434 4,410,918 452,075 2,958,235 3,059,213
-- from gain on sale....... 106,024 (1,037,083)
-- from other.............. 0 0 0 0 0 0 0
-- from extraordinary
charge.................... 0 0 0 0 0 (40,818)(2) 0
Cash generated from
operations................. 5,807,477 5,921,560 6,162,302 6,568,323 496,208 4,881,135 6,071,495
Cash generated from sales... 0 0 324,126(11) 0 0 0 0
Cash generated from
refinancing................ 0 0 0 0 0 0 0
Cash generated from other... 484,044 463,274(7) 388,329(7) 350,364 0 0 0
Cash generated from
operations, sales,
refinancing and other...... 6,291,521 6,384,834 6,874,757 6,918,687 496,208 4,881,135 6,071,495
Less: Cash distribution to
investors:
-- from operating cash
flow(4)................... 5,589,709 5,616,322 5,643,736 6,779,152 0 4,266,821 5,860,479
-- from sales and
refinancing............... 0 0 0 0 0 0 0
Cash generated (deficiency)
after cash distributions... 701,812 768,512 1,231,021 139,535 496,208 614,314 211,016
Less: Special items......... 0 0 0 0 0 0 0
Cash generated (deficiency)
after cash distributions
and special items.......... 701,812 768,512 1,231,021 139,535 496,208 614,314 211,016
Tax and Distribution Data
Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss).... $ 45.51 $ 57.16 $ 66.56 $ 66.25 $ 9.38 $ 40.42 $ 42.39
Capital gain.............. 0 (15.58)
Other..................... 0 0 0 0 0 0.00 0
Cash Distributions to
Investors:
Source (on GAAP basis):
-- Investment income...... 51.48 47.90 77.73 70.38 0 45.13 53.49
-- Return of capital...... 32.48 36.45 7.04 31.44 0 21.60 27.71
Source (on cash basis):
-- Sales.................. 0 0 0 0 0 0 0
-- Refinancing............ 0 0 0 0 0 0 0
-- Operations............. 83.96 84.36 84.77 101.82 0 101.82 81.20
Amount (in percentage terms)
remaining invested in
program properties at the
end of the last year
reported in the Table
(original total acquisition
cost of properties retained
divided by original total
acquisition cost of all
properties in program)..... 99.99% 99.99% 92.90% 92.90% N/A N/A N/A
<CAPTION>
CPA(R):10
----------------------------------------------------------------------
1993 1994 1995 1996 1997
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Gross Revenues.............. $16,128,694 $16,386,307 $16,131,750 $15,505,748 $14,665,622
Profit on sale of
properties................. N/A 1,177,284(5) N/A 1,051,823(13) (362,038)(14)(16)
Other....................... 1,478,086 1,529,736 1,595,406(9) 1,718,797(9) 1,806,760(9)
Write-down of property...... (7,519,431)(8) (1,753,139)(12) N/A
Extraordinary charge........ N/A (253,902)
Less:
Operating expenses......... 2,511,268 2,894,710 2,887,021 3,030,780 3,850,490(15)
Interest expense........... 8,082,223 8,151,222 8,310,440 7,911,209 3,277,006
Depreciation............... 1,944,589 1,945,769 1,967,631 2,007,557 6,467,266
Minority Interest.......... 587,472 599,839 (1,881,218) 583,283 2,023,890
Net Income-GAAP Basis....... 4,481,228 5,247,885 (1,076,149) 2,990,400 607,472
Taxable Income (Loss):
-- from operations......... 2,697,330 2,618,952 3,778,032 3,529,835 7,585,200
-- from gain on sale....... 129,811 6,100,391
-- from other.............. 0 823,905 0 0
-- from extraordinary
charge.................... 0 0 0 0 0
Cash generated from
operations................. 6,284,822 6,311,466 6,263,624 6,656,840 6,481,196
Cash generated from sales... 0 0 5,122,501(10) 7,781,582(13) 1,480,259(14)
Cash generated from
refinancing................ 0 0 0 0 0
Cash generated from other... 0 0 0 0 0
Cash generated from
operations, sales,
refinancing and other...... 6,284,822 6,311,466 11,386,125 14,438,422 7,961,455
Less: Cash distribution to
investors:
-- from operating cash
flow(4)................... 5,916,386 5,950,669 5,975,481 5,981,514 5,294,000
-- from sales and
refinancing............... 0 0 0 0 0
Cash generated (deficiency)
after cash distributions... 368,436 360,797 5,410,644 8,456,908 2,667,455
Less: Special items......... 0 0 0 0 0
Cash generated (deficiency)
after cash distributions
and special items.......... 368,436 360,797 5,410,644 8,456,908 2,667,455
Tax and Distribution Data
Per $1000 Invested
Federal Income Tax Results:
Ordinary income (loss).... $ 37.37 $ 36.29 $ 52.35 $ 48.98 $ 84.65
Capital gain.............. 1.80 0
Other..................... 0 11.42 0 0 0
Cash Distributions to
Investors:
Source (on GAAP basis):
-- Investment income...... 62.09 72.71 (14.93) 41.50 73.46
-- Return of capital...... 19.88 9.74 97.81 41.50 0
Source (on cash basis):
-- Sales.................. 0 0 0 0 0
-- Refinancing............ 0 0 0 0 0
-- Operations............. 81.98 82.45 82.88 83.00 73.46
Amount (in percentage terms)
remaining invested in
program properties at the
end of the last year
reported in the Table
(original total acquisition
cost of properties retained
divided by original total
acquisition cost of all
properties in program)..... 100% 93.93% 93.93% 82.27% 81.45%
</TABLE>
A-19
<PAGE> 35
FOOTNOTES
(1) Results from the sale of a parcel of land which was a portion of the
property net leased to Furon Company.
(2) Represents loan prepayment charge resulting from refinancing of loan
secured by property located in Denton, Texas leased to K mart Corporation.
(3) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership operations
in prior years that has not previously been distributed.
(4) Results from the refinancing of property leased to Detroit Diesel
Corporation.
(5) Results from sale of properties leased to Data Documents Inc. and the Pace
Membership Warehouse, Inc.
(6) Represents write-off of investment in Limited Partnership and income from
Equity investments.
(7) Represents cash distributions from Equity investments in excess of income.
(8) Represents write-down of the Stamford, Connecticut property.
(9) Results of Equity investments for 1993, 1994, 1995 and 1996.
(10) Results of sale of Data Documents property.
(11) Results from the sale of two properties leased to Furon Company.
(12) Represents write-down of the Harvest Foods, Inc. properties.
(13) Results from the sale of properties leased to Safeway Stores Incorporated,
Empire of America Realty Credit Corp. and Best Buy Co., Inc.
(14) Results from the sale of Enviro Works, Inc. securities, and the sale of
properties formerly leased to Harvest Foods, Inc.
(15) Results from the transfer of CPA:10's general partnership interest in Hope
Street Connecticut to CPA:9 and the extinguishment of debt on a first
priority mortgage loan on properties formerly leased to Harvest Foods, Inc.
(16) Results include subordinated disposition fees.
NOTES
(1) CPA(R):9 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: December, 1997 -- $18.74 and April,
1998 -- $21.28.
(2) CPA(R):10 made quarterly distributions in the following amounts per $1,000
invested on the dates specified: January, 1998 -- $17.61 and April,
1998 -- $17.63.
A-20
<PAGE> 36
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
Table III includes information showing the start-up and operational phase of
Prior Programs, the offerings of which have been closed since December 31, 1979.
This Table is designed to provide the investor with information on the financial
operations of such Prior Programs. The results shown in this Table are in all
cases for years ended December 31. THE INFORMATION PRESENTED IN THIS TABLE
SHOULD NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE
COMPANY. PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY
OWNERSHIP IN THE CPA(R) PROGRAMS. MORTGAGE FINANCING FOR THE CPA(R) PROGRAMS MAY
HEREAFTER OCCUR WHICH WOULD MAKE AVAILABLE ADDITIONAL FUNDS FOR INVESTMENT BY
SUCH PROGRAMS. ANY ADDITIONAL INVESTMENTS COULD SIGNIFICANTLY ALTER CERTAIN OF
THE INFORMATION PRESENTED IN THIS TABLE.
<TABLE>
<CAPTION>
CIP(TM)
--------------------------------------------------------------------------------------------------
1991 1992 1993 1994 1995 1996 1997
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Gross Revenues............. $ 92,097 $5,306,275 $17,637,235 $25,958,329 $29,238,322 $32,546,638 $34,247,395
Profit (loss) on sale of
properties............... NA 1,535,763(2) 0 (7,630)(6) (343,963)(8)(10)
Other...................... 1,478,086 1,613,451 2,800,337(4) 3,633,869(4)(7) 3,109,120(4)
Extraordinary charge....... NA NA (401,269)(3) (275,000)(3) 427,448(9)
Write-down of property..... (1,753,455)
Less:
Operating expenses....... 207,640 1,638,870 3,456,274 4,490,683 5,654,751 6,022,323 7,942,880
Interest expense......... 22,790 1,338,083 6,652,011 11,027,689 13,512,254 14,241,203 14,202,295
Depreciation............. 9,799 312,609 1,018,886 1,514,114 2,493,366 2,968,173 3,435,128
Minority Interest........ 0 459,583 748,841 766,582 773,317
Net Income (Loss) -- GAAP
Basis.................... (148,132) 2,016,713 7,990,823 11,615,474 9,228,178 10,146,141 11,086,326
Taxable Income (Loss):
-- from gain on sale..... 81,144
-- from operations....... (148,132) 1,880,687 6,450,406 7,806,855 9,638,818 10,048,321 11,157,568
-- from other............ 0 0 0 656,796 0
-- from extraordinary
charge................ 0 0 0 0 0
Cash generated from
operations............... 73,399 2,913,159 0 12,086,809 13,008,549 15,346,178 14,953,605
Cash generated from sales.. 0 12,008,853 5,927,217(5) 2,044,260(6) 1,194,272(8)
Cash generated from
refinancing.............. 0 160,000 -- --
Cash generated from other.. 0 0 2,003,099(4) 835,243(7) --
Cash generated from
operations, sales,
refinancing and other.... 73,399 0 10,717,806 24,255,662 20,938,865 18,225,681 16,147,877
Less: Cash distribution to
investors:
-- from operating cash
flow(1)............... 2,915,819 8,122,156 11,358,858 11,452,669 12,488,221 13,681,539
-- from sales and
refinancing........... 0 0 0 0 0
Cash generated (deficiency)
after cash distributions. 73,399 (2,660) 2,595,650 12,896,804 9,486,196 5,737,460 2,466,338
Less: Special items........ 0 0 0 0 0
Cash generated (deficiency)
after cash distributions
and special items........ 73,399 (2,660) 2,595,650 12,896,804 9,486,196 5,737,460 2,466,338
Tax and Distribution Data
Per $1000 Invested
Federal Income Tax
Results:
Ordinary income (loss)... $ (84.90) $ 29.24 $ 52.14 $ 55.10 $ 68.09 $ 63.43 $ 64.87
Capital Gain............. 4.15 .47
Other.................... 0 0 0 0 0
Cash Distributions to
Investors:
Source (on GAAP basis):
-- Investment income..... 31.35 64.59 80.17 65.19 64.05 64.46
-- Return of capital..... 13.98 1.06 0 15.71 14.79 15.09
Source (on cash basis):
-- Sales................. 0 0 0 0 0
-- Refinancing........... 0 0 0 0 0
-- Operations............ 45.33 65.65 80.17 80.90 78.84 79.55
Amount (in percentage terms)
remaining invested in
program properties at the
end of the last year
reported in the Table
(original total acquisition
cost of properties retained
divided by original total
acquisition cost of all
properties in program)... N/A N/A N/A N/A N/A N/A N/A
</TABLE>
A-21
<PAGE> 37
FOOTNOTES
(1) To the extent "cash distribution to investors from operating cash flow"
exceeds "cash generated from operations" in any given year, such excess
represents the distribution of cash generated from partnership
operations in prior years that has not previously been distributed.
(2) Results from sale of property leased to Data Documents, Inc.
(3) Result of refinancing mortgage loans on property leased to TBWA
Chait/Day.
(4) Results of Equity Investments for 1993, 1994, 1995 and 1996 income
(loss) and cash distributed.
(5) Results of Sale of Data Documents property.
(6) Loss on sale of properties based to Safeway Stores, Incorporated.
(7) Gain on sale of 22,500 Garden Ridge Corporation common stock warrants.
(8) Results of sale of properties formerly leased to Harvest Foods, Inc.
(9) Gain on the extinguishment of debt on a first priority mortgage loan on
properties formerly leased to Harvest Foods, Inc.
(10) Results include subordinated disposition fees.
NOTES
(1) CIP(TM) made quarterly distributions in the following amounts per $1,000
invested on the dates specified: January, 1998 -- $20.60; and April,
1998 -- $20.62.
A-22
<PAGE> 38
TABLE III (1 OF 3)
OPERATING RESULTS OF PRIOR PROGRAMS
<TABLE>
<CAPTION>
CPA12
--------------------------------------------------------------------
1993 1994 1995 1996 1997
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross Revenues..................................... $ 2,558 $465,327 $3,993,647 $11,433,627 $ 25,313,419
Profit on sale of properties....................... --
Extraordinary charges on extinguishment of debt.... --
Other.............................................. 554,571 1,322,990(1) 2,042,400(1) 2,086,993(1)
Write-down of property............................. --
Less:
Operating expenses............................... 5,211 900,393 1,551,098 2,792,846 5,074,248
Interest expense................................. 147,256 1,260,189 3,525,774 6,499,865
Depreciation..................................... 390,307 947,206 3,022,683
Net Income-GAAP Basis.............................. (2,653) (27,751) 2,115,043 6,210,201 12,803,616
Taxable Income (Loss):
-- from operations............................... (2,653) 390,164 2,375,613 5,670,787 15,389,092
-- from gain on sale............................. -- 6,900
-- from extraordinary charge..................... --
Cash generated from operations(3).................. 2,807 591,308 3,661,087 7,747,104 19,955,591
Cash generated from sales.......................... 1,375,000(1) -- 138,960,203
Cash generated from refinancing....................
Cash generated from other..........................
Cash generated from operations, sales, refinancing
and other........................................ 2,807 591,308 5,036,087 7,747,104 158,915,794
Less: Cash distribution to investors:
-- from operating cash flow(4)................... 2,350,687 6,779,669 15,081,819
-- from sales and refinancing.................... -- --
-- other......................................... -- --
Cash generated (deficiency) after cash
distributions.................................... 2,807 591,308 2,685,400 967,435 143,833,975
Less: Special items................................ --
Cash generated (deficiency) after cash
distributions and special items.................. 2,807 591,308 2,685,400 967,435 143,833,975
Tax and Distribution Data Per $1000 Invested
Federal Income Tax Results:
Ordinary income................................ (.13) 14.36 59.14 54.71 54.44
Capital gain................................... .02
Cash Distributions to Investors:
Source (on GAAP basis):
-- Investment income........................... $ 52.66 $ 59.91 $ 45.30
-- Return of capital........................... 5.87 5.49 8.06
Source (on cash basis):
-- Sales.......................................
-- Refinancing.................................
-- Other.......................................
-- Operations.................................. 58.53 65.40 53.36
Amount (in percentage terms) remaining invested in
program properties at the end of the last year
reported in the Table (original total acquisition
cost of properties retained divided by original
total acquisition cost of all properties in
program)......................................... N/A N/A N/A N/A N/A
</TABLE>
FOOTNOTE
(1) Results of Equity Investments income (loss) and cash distributed.
NOTE
(1) CPA(R) made quarterly distributions in the following amounts per $1,000
invested on the dates specified: January, 1998 -- $20.23 and April,
1998 -- $20.25.
A-23
<PAGE> 39
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:1
----------
<S> <C>
Dollar Amount Raised........................................ 20,000,000
Number of Properties Purchased.............................. 24
Date of Closing of Offering................................. 9/30/79
Date of First Sale of Property.............................. 6/6/89
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary income (loss)................................. $547.51
-- from operations................................... 0.00
Capital Gain (loss).................................... $11.34
-- Other............................................. $0.00
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment Income................................... 765.68
-- Return of Capital................................... 1,517.49
Source (on Cash basis)
-- Sales............................................... 1,051.80
-- Refinancing......................................... 0.00
-- Operations.......................................... 1,231.37
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-24
<PAGE> 40
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:2
----------
<S> <C>
Dollar Amount Raised........................................ 27,500,000
Number of Properties Purchased.............................. 19
Date of Closing of Offering................................. 9/23/80
Date of First Sale of Property.............................. 7/15/86
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary income (loss)................................. $1,044.25
-- from operations................................... $0.00
Capital Gain (loss).................................... $858.72
-- Other............................................. $0.00
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment income................................... 2,069.50
-- Return of Capital................................... 1,524.35
Source (on Cash basis)
-- Sales............................................... 1,818.20
-- Refinancing......................................... 0.00
-- Operations.......................................... 1,775.65
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-25
<PAGE> 41
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:3
----------
<S> <C>
Dollar Amount Raised........................................ 33,000,000
Number of Properties Purchased.............................. 17
Date of Closing of Offering................................. 5/13/82
Date of First Sale of Property.............................. 10/22/86
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary income (loss)................................. $1,844.85
-- from operations................................... 0.00
Capital Gain (loss).................................... $105.88
-- Other............................................. $0.00
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment income................................... 2,115.01
-- Return of Capital................................... 1,832.07
Source (on Cash basis)
-- Sales............................................... 1,677.00
-- Refinancing......................................... 0.00
-- Operations.......................................... 100.00
-- Other............................................... 1,935.48
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-26
<PAGE> 42
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:4
----------
<S> <C>
Dollar Amount Raised........................................ 42,784,000
Number of Properties Purchased.............................. 12
Date of Closing of Offering................................. 6/16/83
Date of First Sale of Property.............................. 10/22/86
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary Income (loss)................................. $678.36
-- from operations................................... (0.33)
Capital Gain (loss).................................... $109.97
-- Other............................................. $0.00
Cash Distributions to Investors
Source (on GAAP basis)
-- Investment Income................................... 1,405.10
-- Return of Capital................................... 1,591.09
Source (on Cash basis)
-- Sales............................................... 1,358.60
-- Refinancing......................................... 0.00
-- Operations.......................................... 1,542.63
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-27
<PAGE> 43
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:5
----------
<S> <C>
Dollar Amount Raised........................................ 56,600,000
Number of Properties Purchased.............................. 36
Date of Closing of Offering................................. 3/31/84
Date of First Sale of Property.............................. 12/31/87
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary income (loss)................................. $300.55
-- from operations................................... 0.00
Capital Gain (loss).................................... $354.66
-- Other............................................. $43.48
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment income................................... 928.11
-- Return of Capital................................... 1,136.70
Source (on Cash basis)
-- Sales............................................... 734.80
-- Refinancing......................................... 0.00
-- Operations.......................................... 1,330.01
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-28
<PAGE> 44
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:6
----------
<S> <C>
Dollar Amount Raised........................................ 47,930,000
Number of Properties Purchased.............................. 54
Date of Closing of Offering................................. 2/13/85
Date of First Sale of Property.............................. 4/28/95
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary income (loss)................................. $649.69
-- from operations................................... 0.00
Capital Gain (loss).................................... $0.00
-- Other............................................. $0.54
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment income................................... 1,017.83
-- Return of Capital................................... 1,509.79
Source (on Cash basis)
-- Sales............................................... 1,380.60
-- Refinancing......................................... 0.00
-- Operations.......................................... 1,147.02
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-29
<PAGE> 45
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION IN THIS TABLE SHOULD NOT BE
CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:7
----------
<S> <C>
Dollar Amount Raised........................................ 45,274,000
Number of Properties Purchased.............................. 53
Date of Closing of Offering................................. 9/17/87
Date of First Sale of Property.............................. 12/3/93
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary Income (loss)................................. $629.58
-- from operations................................... 0.00
Capital Gain (loss).................................... $291.18
-- Other............................................. $21.14
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment income................................... 636.60
-- Return of Capital................................... 1,441.83
Source (on Cash basis)
-- Sales............................................... 1,107.80
-- Refinancing......................................... 10.46
-- Operations.......................................... 941.13
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-30
<PAGE> 46
SUMMARY
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:8
----------
<S> <C>
Dollar Amount Raised........................................ 67,749,000
Number of Properties Purchased.............................. 47
Date of Closing of Offering................................. 6/30/89
Date of First Sale of Property.............................. 4/15/94
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary income (loss)................................. $595.28
-- from operations................................... 0.00
Capital Gain (loss).................................... $0.00
-- Other............................................. $(0.21)
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment income................................... 692.73
-- Return of Capital................................... 1,480.42
Source (on Cash basis)
-- Sales............................................... 1,391.00
-- Refinancing......................................... 0.00
-- Operations.......................................... 782.15
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-31
<PAGE> 47
TABLE IV
RESULTS OF COMPLETED PROGRAMS
Table IV provides information on Prior Programs that have completed
operations since January 1, 1993. THE INFORMATION PRESENTED IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE OPERATIONS OF THE COMPANY.
<TABLE>
<CAPTION>
CPA:9
----------
<S> <C>
Dollar Amount Raised........................................ 59,990,000
Number of Properties Purchased.............................. 33
Date of Closing of Offering................................. 4/30/91
Date of First Sale of Property.............................. 9/5/96
Date of Final Sale of Property(1)........................... 12/31/97
Tax and Distribution Data per $1000 Investment Through
Federal Income Tax Results:
Ordinary Income (loss)................................. $418.85
-- from operations................................... 0.00
Capital Gain (loss).................................... $(15.58)
-- Other............................................. $0.03
Cash Distributions to Investors
Source (on Gaap basis)
-- Investment Income................................... 467.11
-- Return of Capital................................... 1,281.36
Source (on Cash basis)
-- Sales............................................... 1,052.60
-- Refinancing......................................... 0.00
-- Operations.......................................... 695.89
-- Other............................................... 0.00
</TABLE>
FOOTNOTES
(1) Date of exchange of Partnership units for listed shares of Carey Diversified
LLC.
A-32
<PAGE> 48
TABLE V
SALES OR DISPOSITIONS OF PROPERTIES AS OF DECEMBER 31, 1997
Table V provides information on the sales and dispositions of property held
by Prior Programs since January 1, 1994. THE INFORMATION IN THIS TABLE SHOULD
NOT BE CONSIDERED AS INDICATIVE OF THE POSSIBLE PERFORMANCE OF THE COMPANY.
PURCHASERS OF THE SHARES OFFERED BY THIS PROSPECTUS WILL NOT HAVE ANY OWNERSHIP
IN THE CPA(R) PARTNERSHIPS.
<TABLE>
<CAPTION>
SELLING PRICE NET OF CLOSING
COSTS AND GAAP ADJUSTMENTS
----------------------------
CASH
RECEIVED MORTGAGE
NET OF BALANCE
DATE DATE OF CLOSING AT TIME
PROPERTY ACQUIRED SALE COSTS OF SALE
-------- -------- ------- -------- --------
<S> <C> <C> <C> <C>
G.D. Searle and Co.(1)...................................... 5/15/80 1/4/94 $ 124,615 $ 0
Plant City, Florida(2)...................................... 3/31/89 4/15/94 1,200,000 0
Jefferson, Georgia(3)....................................... 3/31/89 8/5/94 844,778 0
Mid Continental Bottlers, Inc.(4)........................... 12/31/86 10/14/94 13,904,680 3,895,320
Pace Membership Warehouse, Inc.(5).......................... 8/12/86 11/10/94 3,639,563 3,290,437
Pace Membership Warehouse, Inc.(6).......................... 12/23/92 11/10/94 3,466,100 3,500,000
Data Documents, Inc.(7)..................................... 3/18/93 11/28/94 7,710,740 7,721,000
Industrial General Corporation(8)........................... 8/30/85 12/30/94 4,062 645,938
Industrial General Corporation(12).......................... 8/30/85 9/14/95 466,961 2,920,401
Liberty Fabrics of New York(13)............................. 1/3/84 12/3/95 5,509,000 3,850,000
Genesco, Inc.(14)........................................... 6/2/83 6/30/95 9,477,492 5,722,508
Jupiter, Florida(15)........................................ 12/11/86 12/20/95 1,546,020 2,602,883
Leslie Fay Company(16)...................................... 4/30/82 1/10/96 14,053,816 0
Helena, Montana(17)......................................... 5/1/85 1/19/96 1,741,261 2,866,324
Autozone, Inc.(18).......................................... 5/2/86 1/26/96 0 627,106
Safeway Stores, Inc.(19).................................... 12/19/91 1/26/96 4,649,270 0
& 2/15/96
Autozone, Inc.(20).......................................... 8/24/87 2/12/96 431,779 0
Monte Vista, Colorado(21)................................... 1/29/88 2/14/96 186,090 0
Empire of America Credit Corp.(22).......................... 6/28/91 3/15/96 3,583,013 4,442,872
GATX Logistics, Inc.(23).................................... 6/7/86 4/9/96 9,428,270 3,208,526
Best Buy Co. Inc.(24)....................................... 10/16/92 5/16/96 1,593,559 1,509,371
Furon Company(25)........................................... 1/29/90 9/9/96 478,626 892,180
Rapid City, South Dakota(26)................................ 4/24/85 10/1/96 (290,728) 4,505,000
Kobacker Stores, Inc.(27)................................... 1/17/79 10/17/96 216,451 139,507
Winn-Dixie Stores, Inc.(28)................................. 12/28/79 8/11/97 1,042,200 0
Harvest Foods, Inc.(29)..................................... 2/21/92 9/3/97 2,388,544 0
& 9/30/97
Arley Merchandise Corporation(30)........................... 7/13/84 11/17/97 0 4,754,940
Swiss M-Tex, L.P.(31)....................................... 8/26/87 11/26/97 200,000 0
----------- -----------
$87,596,162 $57,094,313
=========== ===========
<CAPTION>
SELLING PRICE NET OF CLOSING
COSTS AND GAAP ADJUSTMENTS
---------------------------------------------
PURCHASE
MONEY ADJUSTMENTS
MORTGAGE RESULTING TOTAL
TAKEN FROM PROCEEDS
BACK BY APPLICATION RECEIVED
PROPERTY PROGRAM OF GAAP FROM SALE
-------- -------- ----------- ---------
<S> <C> <C> <C>
G.D. Searle and Co.(1)...................................... 0 None $ 124,615
Plant City, Florida(2)...................................... 0 None 1,200,000
Jefferson, Georgia(3)....................................... 0 None 844,778
Mid Continental Bottlers, Inc.(4)........................... 0 None 17,800,000
Pace Membership Warehouse, Inc.(5).......................... 0 None 6,930,000
Pace Membership Warehouse, Inc.(6).......................... 0 None 6,966,100
Data Documents, Inc.(7)..................................... 0 None 15,431,740
Industrial General Corporation(8)........................... 0 None 650,000
Industrial General Corporation(12).......................... 0 None 3,387,362
Liberty Fabrics of New York(13)............................. 0 None 9,359,000
Genesco, Inc.(14)........................................... 0 None 15,200,000
Jupiter, Florida(15)........................................ 0 None 4,148,903
Leslie Fay Company(16)...................................... 0 None 14,053,816
Helena, Montana(17)......................................... 0 None 4,607,585
Autozone, Inc.(18).......................................... 0 None 627,106
Safeway Stores, Inc.(19).................................... 0 None 4,649,270
Autozone, Inc.(20).......................................... 0 None 431,779
Monte Vista, Colorado(21)................................... 0 None 186,090
Empire of America Credit Corp.(22).......................... 0 None 8,025,885
GATX Logistics, Inc.(23).................................... 0 None 12,636,796
Best Buy Co. Inc.(24)....................................... 0 None 3,102,930
Furon Company(25)........................................... 0 None 1,370,806
Rapid City, South Dakota(26)................................ 0 None 4,214,272
Kobacker Stores, Inc.(27)................................... 0 None 355,958
Winn-Dixie Stores, Inc.(28)................................. 0 None 1,042,200
Harvest Foods, Inc.(29)..................................... 0 None 2,388,544
Arley Merchandise Corporation(30)........................... 0 None 4,754,940
Swiss M-Tex, L.P.(31)....................................... 0 None 200,000
------------
0 -- $144,690,475
============
<CAPTION>
COST OF PROPERTIES INCLUDING
CLOSING AND SOFT COSTS(11)
----------------------------------------
TOTAL
ACQUISITION EXCESS
COST, (DEFICIENCY)
CAPITAL OF OPERATING
ORIGINAL ORIGINAL IMPROVEMENT, RECEIPTS OVER
EQUITY MORTGAGE CLOSING AND CASH
PROPERTY INVESTMENT FINANCING SOFT COSTS EXPENDITURES(9)
-------- ---------- --------- ------------ ---------------
<S> <C> <C> <C> <C>
G.D. Searle and Co.(1)...................................... $ 218,038 $ 0 $ 218,038 $ 249,998
Plant City, Florida(2)...................................... 934,075 1,370,064 2,304,139 964,989
Jefferson, Georgia(3)....................................... 893,466 1,310,496 2,203,962 855,611
Mid Continental Bottlers, Inc.(4)........................... 4,945,126 5,040,000 9,985,126 10,004,008
Pace Membership Warehouse, Inc.(5).......................... 2,433,500 3,400,000 5,833,500 2,485,104
Pace Membership Warehouse, Inc.(6).......................... 3,149,314 3,500,000 6,649,314 439,632
Data Documents, Inc.(7)..................................... 5,455,634 8,000,000 13,455,634 941,446
Industrial General Corporation(8)........................... 759,902 777,352 1,537,254 1,143,549
Industrial General Corporation(12).......................... 3,055,324 3,124,940 6,180,264 4,596,363
Liberty Fabrics of New York(13)............................. 2,500,000 4,500,000 7,000,000 6,139,226
Genesco, Inc.(14)........................................... 5,102,128 6,600,000 11,702,128 12,865,450
Jupiter, Florida(15)........................................ 2,766,322 4,000,000 7,855,572 1,207,991
Leslie Fay Company(16)...................................... 4,000,000 5,400,000 9,400,000 17,810,804
Helena, Montana(17)......................................... 4,012,908 2,937,500 6,950,408 4,923,483
Autozone, Inc.(18).......................................... 242,508 280,136 522,644 254,234
Safeway Stores, Inc.(19).................................... 5,541,790 0 5,541,790 1,852,277
Autozone, Inc.(20).......................................... 357,050 0 357,050 303,583
Monte Vista, Colorado(21)................................... 259,422 358,869 618,291 96,429
Empire of America Credit Corp.(22).......................... 2,830,000 4,500,000 7,463,792 1,571,108
GATX Logistics, Inc.(23).................................... 8,780,378 3,500,000 12,280,378 16,661,862
Best Buy Co. Inc.(24)....................................... 835,000 1,600,000 2,538,839 520,071
Furon Company(25)........................................... 618,777 932,240 1,551,017 416,119
Rapid City, South Dakota(26)................................ 3,100,000 6,800,000 10,515,701 3,470,494
Kobacker Stores, Inc.(27)................................... 166,882 211,949 378,831 209,139
Winn-Dixie Stores, Inc.(28)................................. 1,101,904 0 1,101,904 1,708,409
Harvest Foods, Inc.(29)..................................... 1,026,210 1,593,224 2,619,434 509,403
Arley Merchandise Corporation(30)........................... 2,808,555 5,000,000 7,808,555 3,241,515
Swiss M-Tex, L.P.(31)....................................... 215,852 277,524 493,510 --(10)
----------- ----------- ------------ -----------
$68,110,065 $75,014,294 $145,067,075 $95,442,297
=========== =========== ============ ===========
</TABLE>
FOOTNOTES
(1) On May 15, 1980, CPA(R):2 purchased an improved property and net leased it
to G.D. Searle and Co. On January 4, 1994 the property was sold for
$124,615, net of closing costs representing a loss of $93,423 over the
$218,038 cost basis of the property.
(2) On March 31, 1989 CPA(R):7 and CPA(R):8 purchased six improved properties
and net leased them to NV Ryan L.P. with 37.037% and 62.963%, respectively.
On April 15, 1994 the Plant City, Florida property was sold for $1,200,000
representing a loss of $1,104,139 over the $2,304,139 cost basis of the
property.
(3) On August 5, 1994 the Jefferson, Georgia property which was formerly leased
to NV Ryan L.P. by CPA(R):7 and CPA(R):8 was sold for $844,778, net of
closing costs representing a loss of $1,359,184 over the $2,203,962 cost
basis of the property.
(4) On December 31, 1986, CPA(R):7 purchased eight improved properties and net
leased them to Mid-Continent Bottlers, Inc. and subsequently transferred
the interest in one property to another tenant. On October 14, 1994, the
remaining seven properties were sold for $17,800,000 representing a gain of
$7,814,874 over the $9,985,126 cost basis of the property.
(5) On August 12, 1986, CPA(R):5 purchased an improved property which was
subsequently leased to Pace Membership Warehouse, Inc. On November 10,
1994, the property was sold for $6,930,000 net of closing costs
representing a gain of $1,096,500 over the $5,833,500 cost basis of the
property.
(6) On December 23, 1992, CPA(R)10 purchased an improved property and net
leased it to Pace Membership Warehouse, Inc. On November 10, 1994, the
property was sold for $6,966,100 net of closing costs, representing a gain
of $316,786 over the $6,649,314 cost basis of the property.
(7) On March 18, 1993 CPA(R):10 and CIP(]) purchased five improved properties
and net leased them to Data Documents, Inc. with 22.22% and 77.78%
interests, respectively. On November 28, 1994, the properties were sold for
$15,431,740 net of closing costs representing a gain of $1,976,706 over the
$13,455,034 cost basis of the property.
(8) On August 30, 1985, CPA(R):5 purchased seven improved properties and net
leased them to Industrial General Corporation. On December 30, 1994, the
Forrest City, Arkansas property was sold for $650,000 net of closing costs,
representing a loss of $887,254 over the $1,537,254 cost basis of the
property.
(9) Operating receipts include rental income from the properties as well as
certain receipts from the settlement of bankruptcy claims, where
applicable. The net excess (deficiency) presented is for the entire period
the property was owned by the applicable Partnership. No amounts are
presented for partial land sales since such amounts are negligible.
(10) The property sold represented only a portion of the property owned by the
partnership and no receipts or expenses have been separately allocated.
(11) The term "soft costs" refers to miscellaneous closing costs such as
accounting fees, legal fees, title insurance costs and survey costs.
(12) On August 30, 1985, CPA(R):5 purchased seven properties and net leased them
to Industrial General Corporation. On September 14, 1995, the Bald Knob,
Belville and Newbury port properties were sold for $3,387,362 net of
closing cost, representing a loss of $2,792,902 over the $6,180,264 cost
basis of the property.
(13) On January 3, 1984, CPA(R):5 purchased properties in Gardensville, Virginia
and in North Bergen, New Jersey and leased them to Liberty Fabrics. On
December 31, 1995, CPA recognized a gain on sale of $2,359,000 in
connection with the sale.
(14) On June 2, 1983 CPA(R):4 purchased a property in Allentown, Pennsylvania
and leased it to Genesco, Inc. On June 30, 1995 the property was sold for
$15,200,000 net of closing costs representing a gain of $3,497,872 over the
$11,702,128 costs basis of the property.
A-33
<PAGE> 49
(15) On December 11, 1986 CPA(R):7 purchased a food service facility. On
December 20, 1995 the facility and operations were sold for $4,148,903
representing a loss of $3,706,669 over the $7,855,572 cost basis of the
property.
(16) On April 30, 1993, CPA(R):3 purchased a warehouse property in Wilkes-Barre,
Pennsylvania and leased it to the Leslie Fay Company. On January 10, 1996
CPA(R):3 sold the property recognizing a gain of $4,653,816 over the cost
basis of the property. Cash received net of closing cost of $14,303,816,
included two lump sum payments of $7,200,000 and $5,000,000 from Leslie Fay
in connection with settlement agreement regarding a purchase option which
did not ultimately result in the sale of the property to Leslie Fay. A
third purchased the property for $1,853,816, net of selling costs.
(17) On May 1, 1985, CPA(R):5 purchased an office building in Helena, Montana
and was assigned an existing net lease with IBM Corporation which
subsequently reduced its occupancy from 100% to 40% leasable space.
CPA(R):5 subsequently leased the remaining space to various other tenants.
On January 19, 1996 CPA(R):5 recognized a loss of $2,342,023 over cost
basis of the property.
(18) On May 2, 1986 CPA(R):6 purchased property in Dalton, Georgia and
Birmingham, Alabama and leased them to Autozone, Inc. On January 26, 1996
and April 26, 1996 the properties were sold for $627,106 net of selling
cost. CPA(R):6 recognized gains on sales over the cost basis of the
properties of $104,462 in connection with sales.
(19) On December 19, 1991, CPA(R):10 and CIP purchased three supermarkets
subject to existing net leases with Safeway Stores, Inc. as
tenants-in-common, each with 50% ownership interests. On January 26, 1996
and February 15, 1996 CPA(R):10 and CIP sold the Glendale, Arizona and
Escondido, California properties, respectively. CPA(R):10 and CIP
recognized a net loss on both sales of $892,250 over the cost basis of the
properties.
(20) On August 28, 1987, CPA(R):7 purchased seven improved properties and net
leased them to Autozone, Inc. On February 12, 1996 the Denham Spring,
Louisiana property and was sold for $431,779 representing a gain of $74,729
over the $357,050 cost basis of the property.
(21) On January 29, 1988 CPA(R):7 purchased 10 improved properties and net
leased them to Yellow Front Stores, Inc. The Yellow Front lease was
ultimately terminated and the property was released. On February 14, 1996
the Monte Vista, Colorado property was sold for $186,090, net of closings
costs representing a loss of $432,201 over the $618,291 cost basis of the
property.
(22) On June 28, 1991, CPA(R):10 purchased an office building occupied by Empire
of America Realty Credit Corp. ("Empire") for $7,330,000 of which
$4,500,000 was financed by a mortgage loan. On March 15, 1996, CPA(R):10
accepted Empire's purchase offer of $8,500,000 and recognized a net gain on
sale of $562,093 over the original cost of the property.
(23) On June 7, 1985, CPA(R):5 purchased a warehouse property in Hodgkins,
Illinois which was net leased to General Motors Corporation. In November
1993, the General Motors Corporation lease terminated and CPA(R):5 entered
into a new lease with GATX Logistics, Inc. On April 4, 1996, CPA(R):5
recognized a gain on sale of $356,418 over the cost basis of the property.
(24) On October 16, 1992, CPA(R):10 purchased land and a retail store for
$2,435,000 subject to an existing net lease with Sports Town, Inc. Best Buy
Co., Inc. subsequently assumed the lease. CPA(R):10 obtained a $1,600,000
mortgage loan for this property in September 1993. On May 16, 1996,
CPA(R):10 sold the retail store for $3,250,000 and recognized a gain of
$564,091 over the original cost basis of the property.
(25) On January 29, 1990 CPA(R):8 and CPA(R):9 purchased nine properties as
tenants-in-common and leased them to the Furon Company. On September 9,
1996, two properties were sold in Liverpool, Pennsylvania and the other in
Twinsburg, Ohio, CPA 8 and 9 recognized a loss of $189,211 over the cost
basis of the two properties.
(26) On April 24, 1985, CPA(R):5 purchased a hotel in Rapid City, South Dakota
which it operated as a Holiday Inn. On October 1, 1996, the hotel property
and its operations were sold for $4,105,000. CPA(R):5 recognized a loss of
$6,301,429 over the cost basis of the property. The mortgage balance at the
time of sale of $6,800,000 is presented net of sinking fund reserves of
$2,295,000 which were applied as principal payments at the time of sale.
The net cash received on sale was $290,728 less than the amount necessary
to pay the remaining mortgage principal balance.
(27) On January 17, 1979, CPA(R):1 purchased fifteen properties located in
California, Ohio and Indiana and net leased these properties to Kobacker
Stores, Inc. On October 17, 1996, Kobacker exercised options under the
terms of its leases for properties in Eastlake and Cleveland, Ohio to
purchase such properties for stated purchase prices of $165,000 and
$200,000, respectively, resulting in a loss of $22,873 over the cost basis
of the properties.
(28) On December 28, 1979, CPA:1 purchased a supermarket in Louisville, Kentucky
and net leased it to Winn-Dixie Stores, Inc. On August 11, 1997, CPA:1 sold
the property and recognized a gain of $607,861.
(29) On February 21, 1992, CPA:10 and CIP purchased as tenants-in-common, each
with undivided 50% ownership interests, 13 supermarkets and two office
buildings and entered into a master lease with Harvest Foods, Inc. In
September 1997, CPA:10 and CIP sold three properties and recognized a gain
of $105,131 each.
(30) On July 13, 1984, CPA:5 purchased two properties in Sumter and Columbia,
South Carolina and net leased them to Arley Merchandise Corporation
("Arley"). In July 1997, the Arley lease was terminated by the Bankruptcy
Court in connection with Arley's voluntary petition of bankruptcy. In May
1997, the lender on the limited recourse mortgage loan collateralized by
the Arley properties made a demand for payment for the entire outstanding
principal balance of the loan of $4,754,940. The lender initiated a lawsuit
for the purpose of foreclosing on the Arley properties, which CPA:5 did not
contest. On November 17, 1997, the ownership of the Arley properties was
transferred to the lender and the loan obligation was canceled. In
connection with the foreclosure, CPA:5 recognized a gain of $956,829 on the
difference between liabilities forgiven and assets surrendered.
(31) On August 26, 1987, CPA:7 purchased properties in Travelers Rest and
Liberty, South Carolina and net leased them to Swiss M-Tex, L.P. On
November 26, 1997, CPA:7 sold the Liberty property for $200,000. In
connection with the sale, CPA:7 wrote down the Liberty property to an
estimated net realizable value of $200,000 and incurred a charge of
$139,999 on the writedown.
A-34
