<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1996
OR
____ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________________ to______________________
Commission File Number 0-5641
CLEVETRUST REALTY INVESTORS
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C>
Massachusetts 34-1085584
(State or other jurisdiction of incorporation (I. R. S. Employer Identification No.)
or organization)
</TABLE>
2001 Crocker Road, Suite 400
Westlake, Ohio 44145
(Address of Principal Executive Offices) (Zip Code)
(216) 899-0909
(Registrant's telephone number, including area code)
Not Applicable
Former name, former address and former fiscal year if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
Shares of Beneficial Interest Outstanding at August 13, 1996: 5,179,143
The sequential page in this report where the Exhibit Index is located is page
14.
<PAGE> 2
CLEVETRUST REALTY INVESTORS
INDEX
<TABLE>
<CAPTION>
Sequential
Page
Number
<S> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statement of Financial Condition
-- June 30, 1996 and September 30, 1995 3
Statement of Operations
-- Three Months and Nine Months ended June 30, 1996 and 1995 4
Statement of Cash Flows
-- Nine Months ended June 30, 1996 and 1995 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults upon Senior Securities 12
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
- 2 -
<PAGE> 3
CLEVETRUST REALTY INVESTORS
STATEMENT OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
JUNE 30, 1996 SEPTEMBER 30, 1995
------------------------ --------------------------
(in thousands)
ASSETS
- -----------------------------------------------------------
<S> <C> <C>
Invested assets - NOTE B:
Investments in real estate:
Improved properties $66,503 $63,282
Less: Accumulated Depreciation 23,818 22,543
------------------------ --------------------------
42,685 40,739
Land held for sale or development 117 203
------------------------ --------------------------
42,802 40,942
Investments in securities - NOTE C 2,634 267
Real estate mortgage loans 141 303
------------------------ --------------------------
45,577 41,512
Cash and cash equivalents 590 188
Other assets 1,133 1,376
------------------------ --------------------------
TOTAL ASSETS $47,300 $43,076
======================== ==========================
LIABILITIES
- -----------------------------------------------------------
Mortgage notes payable - NOTE D $9,619 $9,266
Bank notes payable - NOTE E 10,500 6,600
Accrued interest on notes payable 94 23
Accrued expenses and other liabilities 1,764 2,061
------------------------ --------------------------
TOTAL LIABILITIES 21,977 17,950
SHAREHOLDERS' EQUITY
- -----------------------------------------------------------
Shares of Beneficial Interest, par value $1 per Share - NOTE E:
Authorized - - Unlimited
Issued and outstanding shares
(6/30/96 - 5,179,143; 9/30/95 - 5,217,143) 5,179 5,217
Additional paid-in capital 38,850 38,986
Accumulated deficit (19,044) (19,104)
------------------------ --------------------------
24,985 25,099
Unrealized gains on securities - NOTE C 338 27
------------------------ --------------------------
TOTAL SHAREHOLDERS' EQUITY 25,323 25,126
------------------------ --------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $47,300 $43,076
======================== ==========================
</TABLE>
See notes to financial statements.
-3-
<PAGE> 4
CLEVETRUST REALTY INVESTORS
STATEMENT OF OPERATIONS
The following statement of operations of CleveTrust Realty Investors for the
three-month and nine-month periods ended June 30, 1996 and 1995, respectively,
are unaudited, but in the opinion of management include all adjustments
necessary to present fairly the results of operations. All such adjustments were
of a normal recurring nature. The results of operations of the three-month and
nine-month periods ended June 30, 1996 are not necessarily indicative of the
results of operations for succeeding periods.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
----------------- ------------------
6/30/96 6/30/95 6/30/96 6/30/95
------- ------- ------- -------
(in thousands, except per share data)
INCOME
Real estate operations:
<S> <C> <C> <C> <C>
Rental Income $2,625 $2,477 $7,774 $7,698
Less: Real estate operating expenses 1,355 1,232 3,889 3,956
Less: Depreciation expense 453 432 1,336 1,389
------- ------- ------- -------
1,808 1,664 5,225 5,345
------- ------- ------- -------
Income from real estate operations 817 813 2,549 2,353
Interest income 12 7 29 47
Dividend income 54 0 174 0
Other 2 2 10 21
------- ------- ------- -------
885 822 2,762 2,421
EXPENSES
Interest:
Mortgage notes payable - NOTE D 223 231 670 766
Bank notes payable - NOTE E 247 150 647 626
------- ------- ------- -------
470 381 1,317 1,392
General and administrative 157 186 541 613
------- ------- ------- -------
627 567 1,858 2,005
------- ------- ------- -------
OPERATING INCOME 258 255 904 416
Gain (loss) on sales of real estate - NOTE B 23 91 (221) 2,499
------- ------- ------- -------
INCOME BEFORE EXTRAORDINARY ITEM 281 346 683 2,915
Extraordinary item - NOTE D 0 52 0 52
------- ------- ------- -------
NET INCOME $281 $398 $683 $2,967
======= ======= ======= =======
Per Share of Beneficial Interest - NOTE H:
Operating income (loss) $0.05 $0.05 $0.17 $0.08
Gain (loss) on sales of real estate 0.01 0.02 (0.04) 0.46
------- ------- ------- -------
INCOME BEFORE EXTRAORDINARY ITEM 0.06 0.07 0.13 0.54
Extraordinary item 0.00 0.01 0.00 0.01
------- ------- ------- -------
NET INCOME PER SHARE $0.06 $0.08 $0.13 $0.55
======= ======= ======= =======
Weighted Average Number of Shares of
Beneficial Interest Outstanding 5,179 5,462 5,192 5,468
======= ======= ======= =======
</TABLE>
See notes to financial statements.
-4-
<PAGE> 5
CLEVETRUST REALTY INVESTORS
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
----------------------------------
6/30/96 6/30/95
-------------- --------------
(in thousands)
CASH FLOW FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $683 $2,967
Non-cash revenues and expenses included in income:
Depreciation expense 1,336 1,389
Decrease in other assets 243 54
(Increase) decrease in accrued interest on notes payable 71 (5)
Decrease in accrued expenses and other liabilities (297) (425)
Reconciliation to net cash flow from operating activities:
Loss (gain) on sales of real estate 221 (2,499)
Extraordinary item 0 (52)
-------------- --------------
Cash Flow From Operating Activities 2,257 1,429
CASH FLOW FROM INVESTING ACTIVITIES:
Equity investments:
Improvements to existing properties (725) (401)
Purchases of properties (3,469) 0
Proceeds from properties sold 778 5,546
Increase in investments in securities (2,057) 0
Net insurance proceeds 0 1,006
Real estate mortgage loan repayments 162 123
-------------- --------------
Cash Flow (Used In) From Investing Activities (5,311) 6,274
CASH FLOW FROM FINANCING ACTIVITIES:
Mortgage notes payable:
Principal borrowings 500 0
Principal amortization payments (147) (287)
Principal prepayments 0 (1,463)
Bank notes payable:
Borrowings 3,900 0
Repayments 0 (5,549)
Principal amortization payments 0 (31)
Certificates of deposit 0 500
Shares purchased and subsequently retired (174) (48)
Distributions to shareholders (623) (655)
-------------- --------------
Cash Flow From (Used In) Financing Activities 3,456 (7,533)
-------------- --------------
Increase in cash and short-term investments 402 170
Balance at beginning of year 188 251
-------------- --------------
Balance at end of period $590 $421
============== ==============
</TABLE>
See notes to financial statements.
-5-
<PAGE> 6
CLEVETRUST REALTY INVESTORS
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
NOTE A - INCOME TAXES
The Trust had no income tax expense for the nine-month period ended June 30,
1995 or for the fiscal year ended September 30, 1995. The Trust had no income
tax expense for the nine-month period ended June 30, 1996 and it expects to have
no income tax expense for the fiscal year ended September 30, 1996.
The Trust had a net deferred tax asset position at June 30, 1996 and September
30, 1995 of approximately $2,366,000 and $2,567,000, respectively. The Trust
maintains a valuation reserve equal to its net deferred tax asset as there is
doubt as to whether the net deferred tax will be realized.
NOTE B - INVESTMENTS IN REAL ESTATE
On February 20, 1996 the Trust completed the purchase of the land on which its
Englewood Bank Building is located. This land, which was previously leased by
the Trust, was purchased for a price of $1,263,000.
On March 28, 1996 the Trust purchased a 52,554 square foot suburban office
building located in Arlington, Texas for a purchase price of $2,206,000.
During January and February, 1996 the Trust completed the sale of three
condominium units located in Davie, Florida for a total sales price of $138,000.
These sales resulted in a gain of $69,000.
On March 28, 1996 the Trust completed a $600,000 sale of the European Crossroads
office/retail complex on 11.5 acres of land located in Dallas, Texas. The sale
resulted in a loss of $313,000.
On April 15, 1996 the Trust completed a $115,000 sale of 7.42 acres of vacant
land located in Akron, Ohio. This sale resulted in a gain of $23,000.
On February 28, 1995 the Trust completed a $2,650,000 sale of the 197 room
Quality Hotel located at the airport in St. Louis, Missouri. This sale resulted
in a gain of $452,000.
On March 15, 1995 the Trust completed a $2,595, 000 sale of the 224 unit
Parkwood Place Apartments located in Greeley, Colorado. This sale resulted in a
gain of $1,859,000.
On March 20, 1995 the Trust completed a $800,000 sale of the 51,000 square foot
Walnut Hill West office building located in Dallas, Texas. This sale resulted in
a gain of $97,000.
On May 31, 1995 the Trust completed a $212,000 sale of 17.7697 cares of vacant
land located in Akron, Ohio. This sale resulted in a gain of $91,000. The Trust
received a purchase money mortgage for the total $212,000 purchase price in
connection with the sale.
- 6 -
<PAGE> 7
CLEVETRUST REALTY INVESTORS
NOTES TO FINANCIAL STATEMENTS - (Continued)
NOTE C - INVESTMENTS IN SECURITIES
In 1995 the Trust adopted Statement of Financial Accounting Standards No. 115
"Accounting for Certain Investments in Debt and Equity Securities." The Trust
has classified its investments in equity securities as available-for-sale and as
a result these investments are stated at fair value at June 30, 1996 and
September 30, 1995. The effects of the unrealized gains are included as a
component of Shareholders' Equity. There was no cumulative effect adjustment as
a result of adoption.
NOTE D - MORTGAGE NOTES PAYABLE
Effective December 28, 1995 the Trust and its Lender modified the first mortgage
loan on the 14800 Quorum Office Building located in Dallas, Texas as follows:
The Trust borrowed an additional $500,000, which increased the outstanding
borrowings to $2,640,000 at the time of the transaction. Additionally, the base
interest rate, which was 1.75% over the prime lending rate (9.5% at the time of
the modification) adjusted every two years, was changed to a fixed rate of
8.30%, effective January 1, 1996, until the maturity date of August 19, 2000.
On May 1, 1995 the Trust settled at a discount, a $1,017,000 first mortgage loan
on its office building located in Englewood, Colorado, which had a maturity date
of February 1, 1999. This settlement resulted in an extraordinary gain of
$52,000.
NOTE E - BANK NOTES PAYABLE
The Trust has a revolving line of credit ("1994 Credit") issued by National City
Bank of Cleveland ("NCB") and Manufacturer's and Traders Trust Company of
Buffalo, New York ("M&T"), which was signed effective November 30, 1994. The
1994 Credit is for up to $25,000,000 (but is limited by the value of the
collateral provided). Of this amount a maximum of $15,000,000 is currently
available and $10,000,000 will be available upon payment of an activation fee of
3/4 of 1% on the $10,000,000. Interest will be at either i) 1/4 of 1% over the
prime rate; ii) 250 basis points over the LIBOR rate; or iii) NCB's fixed
interest rate available from time to time. Additionally, a commitment fee of 3/8
of 1% is due on any funds available but not borrowed. The initial term was for
three years. Based on their review of the Trust's results for the fiscal year
ended September 30, 1995, the lenders have extended the maturity date to March
1, 1999. The lenders have the option to extend the maturity date each year after
their review of the then ended fiscal year's results. At June 30, 1996 the
outstanding balance was $10,500,000. At September 30, 1995 the outstanding
balance was $6,600,000. The 1994 Credit is secured by certain of the Trust's
real estate and contains certain covenants including a covenant for a minimum
shareholders' equity. At June 30, 1996 the amount of shareholders' equity free
from such restrictions was approximately $5,235,000.
NOTE F - DISTRIBUTIONS
The Trustees at their April 22, 1996 meeting declared a quarterly cash
distribution of $.04 per share payable July 19, 1996 to shareholders of record
as of July 5, 1996. The Trustees at their July 23, 1996 meeting declared a
quarterly cash distribution of $.04 per share payable on September 20, 1996 to
shareholders of record as of September 6, 1996.
- 7 -
<PAGE> 8
CLEVETRUST REALTY INVESTORS
NOTES TO FINANCIAL STATEMENTS - (Continued)
NOTE G - NET INCOME PER SHARE
Net income per Share of Beneficial Interest has been computed using the weighted
average number of Shares of Beneficial Interest outstanding each period.
- 8 -
<PAGE> 9
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
FINANCIAL CONDITION
At June 30, 1996 the Trust owned $66,620,000 in real estate investments at cost,
had $2,634,000 of investments in securities at market value, and had two real
estate mortgage loans with a combined balance of $141,000. These investments,
net of accumulated depreciation, totaled $45,577,000. This compared with total
real estate investments at cost of $63,485,000, investments in securities at
with a market value of $267,000, two real estate mortgage loans with a combined
balance of $303,000 and a carrying value after accumulated depreciation of
$41,512,000 at September 30, 1995. The change since year end September 30, 1995
was the net result of the following: (i) the March 28, 1996 purchase of a 52,554
square foot suburban office building located in Arlington, Texas for a purchase
price of $2,206,000; (ii) the February 20, 1996 purchase for $1,263,000 of the
land under the Englewood Bank Building located in Englewood, Colorado, which
land was previously leased by the Trust; (iii) the April 15, 1996 sale of 7.42
acres of vacant land located in Akron, Ohio, book value $85,000; (iv) the March
28, 1996 sale of the European Crossroads office/retail complex on 11.5 acres of
land located in Dallas, Texas, book value $868,000; (v) the sale during January
and February, 1996 of three condominium units located in Davie, Florida, book
value $46,000; (vi) the increase in the market value of investments in
securities by $2,367,000, which was the result of the purchase of $1,999,000 of
new securities and the adjustment of $368,000 to adjust securities owned to
market value; (vii) receiving $162,000 in real estate loan repayments; (viii)
spending $725,000 on improvements to existing properties; and (ix) recording
depreciation expense of $1,336,000.
During the nine months ended June 30, 1996 the Trust increased its borrowings
under the 1994 Credit Agreement by $3,900,000. These borrowings were primarily
used to purchase the above referenced land and suburban office building, in
addition to funding a portion of the purchase of securities in real estate
companies. Also, in December, 1995 the Trust borrowed an additional $500,000 in
a restructuring of the first mortgage loan on the 14800 Quorum Building in
Dallas, Texas (see Note D to the financial statements).
At June 30, 1996 the balance of accrued expenses and other liabilities was
$1,764,000, which was a decrease of $297,000 (14%) from the September 30, 1995
balance of $2,061,000. This decrease was primarily due to the Trust' payments,
primarily during the quarter ended March 31, 1996, of calendar 1995 real estate
taxes for the majority of the Trust's properties. These taxes were accrued
during calendar year 1995.
The $197,000 increase in shareholders' equity at June 30, 1996 from September
30, 1995 was the net effect of the Trust's recording net income of $683,000,
making distributions to shareholders of $623,000 during the nine month period
ended June 30, 1996, repurchasing and retiring 38,000 of the Trust's shares at a
total cost of $174,000, and the increase of the unrealized gains on investments
in securities by $311,000 during the nine months ended June 30, 1996. At June
30, 1996 the Trust's debt to equity ratio was .80-to-1.00 compared to
.63-to-1.00 at September 30, 1995.
Management has from time to time undertaken a major renovation of a property in
order to keep it competitive within its market. No major renovation projects are
currently contemplated or in progress.
- 9 -
<PAGE> 10
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
RESULTS OF OPERATIONS
Quarter ended June 30, 1996 versus June 30, 1995
Income from real estate operations during the quarter ended June 30, 1996
increased $4,000 when compared to the quarter ended June 30, 1995. Rental income
for the quarter ended June 30, 1996 increased $148,000 (6%) compared to the
quarter ended June 30, 1995. Real estate operating expenses increased $123,000
(10%) while depreciation expense increased $21,000 (5%) in the three months
ended June 30, 1996 versus 1995. The primary reason for the increase in all of
these categories was the Trust's purchase of a 52,554 square foot suburban
office building located in Arlington, Texas on March 28, 1996.
The $54,000 of dividend income during the current quarter ended June 30, 1996
represents the dividends earned by the Trust on its investments in securities.
The Trust had no like income nor investments during the same period one year
earlier.
The $89,000 (23%) increase in interest expense for the three-month period ended
June 30, 1996 when compared to the same period one year ago was primarily due to
the average borrowings outstanding being $20,269,000 for the three months ended
June 30, 1996 compared to $15,063,000 for the three months ended June 30, 1995.
It should also be noted that the average rate for the three months ended June
30, 1996 was 9.27% compared to 10.1% for the three months ended June 30, 1995.
On April 15, 1996 the Trust completed a $115,000 sale of 7.42 acres of vacant
land located in Akron, Ohio. This sale resulted in a gain of $23,000. On May 31,
1995 the Trust completed a $212,000 sale of 17.7697 acres of vacant land located
in Akron, Ohio. This sale resulted in a gain of $91,000.
On May 1, 1995 the Trust settled, at a discount, a $1,017,000 first mortgage
loan on its office building located in Englewood, Colorado. This settlement
resulted in an extraordinary gain of $52,000. There was no comparable activity
during the three months ended June 30, 1996.
Nine Months ended June 30, 1996 versus June 30, 1995:
Income from real estate operations during the nine months ended June 30, 1996
increased $196,000 (8%) compared to the nine months ended June 30, 1995. Rental
income for the nine months ended June 30, 1996 increased $76,000 when compared
to the nine months ended June 30, 1995. Real estate operating expenses during
the current nine months decreased $67,000 when compared to the same period one
year earlier. Depreciation expense declined $53,000 (3.8%) when comparing the
two periods.
The $174,000 of dividend income during the current nine-month period represents
the dividends earned by the Trust on its investments in securities. The Trust
had no like income not investments during the same period one year earlier.
During January and February, 1996 the Trust sold three condominium units located
in Davie, Florida.
The $138,000 sales resulted in gains totaling $69,000. On March 28, 1996 the
Trust sold the European Crossroads office/retail center located in Dallas, Texas
for $600,000. This sale resulted in a loss of $313,000. The April 15, 1996 sale
of vacant land resulting in a gain of $23,000 was previously discussed.
- 10 -
<PAGE> 11
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
RESULTS OF OPERATIONS - (Continued)
On February 28, 1995 the Trust completed a $2,650,000 sale of the 197 room
Quality Hotel located at the St. Louis, Missouri airport. This sale resulted in
a gain of $452,000. On March 15, 1995 the Trust completed a $2,595,000 sale of
the 224 unit Parkwood Place Apartments located in Greeley, Colorado. This sale
resulted in a gain of $1,859,000. On March 20, 1995 the Trust completed a
$800,000 sale of the 51,000 square foot Walnut Hill West office building located
in Dallas, Texas. This sale resulted in a gain of $97,000. The $91,000 balance
of the gains for the nine months ended June 30, 1995 was from the Akron land
sale discussed previously.
The $52,000 extraordinary income item for the nine months ended June 30, 1995
was discussed above.
OTHER
The Trustees and Management of the Trust are continuing to evaluate various
business alternatives to maximize value for the Shareholders of the Trust. As a
result, the Trustees are seriously considering recommending that the Trust adopt
a plan for its orderly liquidation. The Trustees anticipate that such a plan of
liquidation would entail sales of individual properties in the Trust's portfolio
over a period of approximately three years, but the Trust will also consider
proposals for mergers, combinations or offers for a sale of all or a substantial
portion of its properties in a single transaction. At this time, it is not
possible to predict with certainty what proceeds the Trust will realize from
sales of its portfolio of properties. The Trustees and Management of the Trust
believe that in the aggregate the total sale proceeds should exceed the net
amount at which the properties are currently reflected in the financial
statements of the Trust. This is a forward-looking statement and the actual
result could be affected by many factors, including demand and availability in
the market for real estate of the type held by the Trust in those regions where
Trust properties are located and availability and terms of financing for real
estate acquisitions. If the Trustees recommend adoption of a plan of
liquidation, the plan will be subject to approval by the Shareholders.
The effect of an adoption of a plan of liquidation on the financial statements
has not been fully determined at this time. However, if adopted, the Trust would
be required to classify all investments in real estate as "Assets to be Disposed
of" in accordance with Financial Accounting Standards No. 121 "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of"
("FAS 121"). FAS 121 requires the Trust to carry all long-lived assets at the
lower of current carrying cost or current market value. Although under generally
accepted accounting principles the Trust would not be allowed to write up to
fair market value those assets which the Trustees and Management currently
believes are carried at a cost lower than fair market value, the Trust would be
required to write-down the carrying value of certain of its assets which the
Trust believes are carried at a cost currently higher than their fair market
value. If during the fiscal year 1996 the Trustees adopt a plan of liquidation
subject to shareholder approval, the effect of any write-down would be recorded
in the current fiscal year's Statement of Operations in the fourth quarter.
Currently, the Trustees and Management's best estimate of the range of possible
write-downs is between $3 and $4 million. Additionally, if a plan of liquidation
is adopted, certain employee related costs will be accrued over the liquidation
period, which is estimated to continue through December 31, 1999.
- 11 -
<PAGE> 12
P A R T I I
Item 1. Legal Proceedings
There are no items or events requiring reporting with respect to this
item.
Item 2. Changes in Securities
There are no items or events requiring reporting with respect to this
item.
Item 3. Defaults upon Senior Securities
There are no items or events requiring reporting with respect to this
item.
Item 4. Submission of Matters to a Vote of Security Holders
There are no items or events requiring reporting with respect to this
item.
Item 5. Other Information
There are no items or events requiring reporting with respect to this
item.
Item 6. Exhibits and Reports on Form 8-K
There are no items or events requiring reporting with respect to this
item.
- 12 -
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CLEVETRUST REALTY INVESTORS
(Registrant)
Date: August 13, 1996 By: /s/ John C. Kikol
--------------------------------
John C. Kikol, President
Date: August 13, 1996 By: /s/ Michael R. Thoms
--------------------------------
Michael R. Thoms, Vice President
and Treasurer
- 13 -
<PAGE> 14
CLEVETRUST REALTY INVESTORS
QUARTERLY REPORT ON FORM 10-Q FOR QUARTER ENDED JUNE 30, 1996
EXHIBIT INDEX
<TABLE>
<CAPTION>
"Assigned" "Sequential"
Exhibit No. Description Page No.
- ----------- ----------- --------
<S> <C> <C>
(27) Financial Data Schedule. 15
</TABLE>
- 14 -
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM
10-Q FOR THE PERIOD ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUN-30-1996
<CASH> 590
<SECURITIES> 2,634
<RECEIVABLES> 533
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 741
<PP&E> 66,620
<DEPRECIATION> 23,818
<TOTAL-ASSETS> 47,300
<CURRENT-LIABILITIES> 1,858
<BONDS> 20,119
<COMMON> 5,179
0
0
<OTHER-SE> 20,144
<TOTAL-LIABILITY-AND-EQUITY> 47,300
<SALES> 0
<TOTAL-REVENUES> 7,987
<CGS> 0
<TOTAL-COSTS> 5,225
<OTHER-EXPENSES> 541
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,317
<INCOME-PRETAX> 904
<INCOME-TAX> 0
<INCOME-CONTINUING> 904
<DISCONTINUED> 0
<EXTRAORDINARY> (221)
<CHANGES> 0
<NET-INCOME> 683
<EPS-PRIMARY> .13
<EPS-DILUTED> .13
</TABLE>
