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 quarter period ended February 29, 2000
----------------------------------------------------
OR
___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from To
--------------------------------------------------
Commission file number 0-10287
-------
NOONEY REAL PROPERTY INVESTORS-TWO, L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Missouri 43-1182535
- ------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Memorial Drive, St. Louis, Missouri 63102
- --------------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 206-4600
-----------------------------
- --------------------------------------------------------------------------------
(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 ___
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12,13, or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes___ No ___
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date _______.
<PAGE>
PART I
ITEM 1 - FINANCIAL STATEMENTS:
- -----------------------------
NOONEY REAL PROPERTY INVESTORS-TWO, L.P.
----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
BALANCE SHEETS
--------------
February 29, November 30,
2000 1999
(Unaudited)
------------ ------------
ASSETS:
Cash and cash equivalents $ 2,405,754 $ 2,572,203
Accounts receivable 111,606 120,110
Prepaid expenses and deposits 317,351 58,448
Investment property
Land 1,886,042 1,886,042
Buildings and improvements 14,191,566 14,187,855
------------ ------------
16,077,608 16,073,897
Less accumulated depreciation 9,748,366 9,634,858
------------ ------------
6,329,242 6,439,039
Deferred expenses-at amortized cost 241,156 237,432
------------ ------------
$ 9,405,109 $ 9,427,232
============ ============
LIABILITIES AND PARTNERS' DEFICIT:
Liabilities:
Accounts payable and accrued expenses $ 425,504 $ 359,278
Mortgage notes payable 9,300,475 9,387,057
Refundable tenant deposits 107,942 100,090
------------ ------------
9,833,921 9,846,425
Partners' Deficit (428,812) (419,193)
------------ ------------
$ 9,405,109 $ 9,427,232
============ ============
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
2
<PAGE>
NOONEY REAL PROPERTY INVESTORS-TWO, L.P.
----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
STATEMENTS OF OPERATIONS AND PARTNERS' DEFICIT
----------------------------------------------
(UNAUDITED)
-----------
Three Months Ended
------------------
February 29, February 28,
2000 1999
------------ ------------
REVENUES:
Rental and other income $ 634,911 $ 535,307
Interest 25,115 9
--------- ---------
660,026 535,316
EXPENSES:
Interest 244,718 168,940
Depreciation and amortization 136,900 121,131
Real estate taxes 93,861 88,724
Property management fees paid to
American Spectrum Midwest 31,747 25,303
Reimbursement to American Spectrum Midwest
for partnership management services and
indirect expenses 7,500 7,500
Insurance 16,395 10,651
Office - general 10,120 10,101
Parking lot 4,651 6,970
Payroll 26,148 15,076
Professional services 22,871 24,490
Repairs & maintenance 14,282 20,861
Taxes - other 6,821 6,821
Vacancy 6,893 16,115
Other operating expenses 46,738 58,405
--------- ---------
669,645 581,088
--------- ---------
NET LOSS $ (9,619) $ (45,772)
========= =========
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ (0.79) $ (3.78)
========= =========
PARTNERS' DEFICIT:
Beginning of period $(419,193) $(261,183)
Net loss (9,619) (45,772)
--------- ---------
End of period $(428,812) $(306,955)
========= =========
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
3
<PAGE>
NOONEY REAL PROPERTY INVESTORS-TWO, L.P.
----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
STATEMENTS OF CASH FLOWS
------------------------
(UNAUDITED)
-----------
Three Months Ended
------------------
February 29, February 28,
2000 1999
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (9,619) $ (45,772)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 136,900 121,131
Changes in assets and liabilities:
Accounts receivable 8,504 2,926
Prepaid expenses and deposits (263,903) (27,978)
Deferred expenses (22,116) 34,773
Accounts payable and accrued expenses 66,226 (92,273)
Refundable tenant deposits 7,852 16,703
----------- -----------
Total adjustments (66,537) 55,282
----------- -----------
Net cash provided by (used in)
operating activities (76,156) 9,510
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to investment property (3,711) (8,606)
----------- -----------
Net cash used in investing
activities (3,711) (8,606)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgage notes payable (86,582) (104,657)
----------- -----------
Net cash used in financing
activities (86,582) (104,657)
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (166,449) (103,753)
----------- -----------
CASH AND CASH EQUIVALENTS, beginning of period 2,572,203 486,156
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 2,405,754 $ 382,403
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION - Cash paid during period for
interest $ 244,718 $ 168,940
=========== ===========
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
4
<PAGE>
NOONEY REAL PROPERTY INVESTORS-TWO, L.P.
----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
NOTES TO UNAUDITED FINANCIAL STATEMENTS
---------------------------------------
THREE MONTHS ENDED FEBRUARY 29, 2000 AND FEBRUARY 28, 1999
----------------------------------------------------------
NOTE A:
Refer to the Registrant's financial statements for the year ended November 30,
1999, which are contained in the Registrant's Annual Report on Form 10-K, for a
description of the accounting policies which have been continued without change
except as noted below. Also, refer to the footnotes to those statements for
additional details of the Registrant's financial condition. The details in those
notes have not changed except as a result of normal transactions in the interim
or as noted below.
NOTE B:
The financial statements include only those assets, liabilities, and results of
operations of the partners which relate to the business of Nooney Real Property
Investors-Two, L.P. The statements do not include assets, liabilities, revenues
or expenses attributable to the partners' individual activities. No provision
has been made for federal and state income taxes since these taxes are the
responsibility of the partners. In the opinion of the general partners, all
adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and changes in
financial position at February 29, 2000 and for all periods presented have been
made. The results of operations for the three-month period ended February 29,
2000 are not necessarily indicative of the results which may be expected for the
entire year.
NOTE C:
The Registrant's properties are managed by American Spectrum Midwest (formerly
Nooney, Inc.), a wholly-owned subsidiary of CGS Real Estate Company. Nooney
Investors, Inc., a general partner, is a wholly-owned subsidiary of S-P
Properties, Inc. S-P Properties, Inc is a wholly-owned subsidiary of CGS Real
Estate Company.
NOTE D:
The loss per limited partnership unit for the three months ended February 29,
2000 and February 28, 1999 was computed based on 12,000 units, the number of
units outstanding during the periods.
NOTE E:
The Registrant has no other comprehensive income items, accordingly,
comprehensive income and net income are the same for all periods presented.
5
<PAGE>
NOTE F:
The partnership has four reportable operating segments: Jackson Industrial,
Maple Tree Shopping Center, Park Plaza I & II, and Morenci Professional Park.
The Partnership's management evaluates performance of each segment based on
profit or loss from operations before allocation of property writedowns, general
and administrative expenses, unusual and extraordinary items, and interest.
Three Months Ended
------------------
February 29, February 28,
2000 1999
---- ----
Revenues:
Jackson Industrial $ 212,614 $ 124,092
Maple Tree Shopping Center 143,024 134,740
Park Plaza I & II 143,407 128,608
Morenci Professional Park 135,890 118,610
----------- -----------
634,935 506,050
=========== ===========
Operating Profit (Loss):
Jackson Industrial $ (34,867) $ (98,689)
Maple Tree Shopping Center 5,944 18,540
Park Plaza I & II 32,253 48,676
Morenci Professional Park (7,733) (16,125)
----------- -----------
(4,403) (47,598)
=========== ===========
Capital Expenditures:
Jackson Industrial $ 3,711 $ 0
Maple Tree Shopping Center 0 (143)
Park Plaza I & II 0 1,405
Morenci Professional Park 0 7,344
----------- -----------
3,711 8,606
=========== ===========
Depreciation and Amortization:
Jackson Industrial $ 60,063 $ 55,369
Maple Tree Shopping Center 20,515 17,270
Park Plaza I & II 20,114 15,786
Morenci Professional Park 36,208 32,646
----------- -----------
136,900 121,071
=========== ===========
Assets:
February 29, November 30,
2000 1999
---- ----
Jackson Industrial $ 3,243,959 $ 3,238,441
Maple Tree Shopping Center 1,111,359 1,152,425
Park Plaza I & II 901,186 900,312
Morenci Professional Park 1,544,019 1,521,530
----------- -----------
6,800,523 6,812,708
=========== ===========
6
<PAGE>
Reconciliation of segment data to the Partnership's consolidated data is as
follows:
Three Months Ended
------------------
February 29, February 28,
2000 1999
---- ----
Revenues:
Segments $ 634,935 $ 506,050
Corporate and other 25,091 29,266
----------- -----------
660,026 535,316
=========== ===========
Operating (Loss)
Segments $ (4,403) $ (47,598)
Corporate and other income 25,091 29,266
General and administrative expenses 30,307 27,440
----------- -----------
(9,619) (45,772)
=========== ===========
Depreciation and Amortization
Segments $ 136,900 $ 121,071
Corporate and other 0 60
----------- -----------
136,900 121,131
=========== ===========
Assets:
February 29, November 30,
2000 1999
---- ----
Segments $ 6,800,523 $ 6,812,708
Corporate and other 2,604,586 2,614,524
----------- -----------
9,405,109 9,427,232
=========== ===========
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS
-------------
It should be noted that this 10-Q contains forward-looking information (as
defined in the Private Securities Litigation Reform Act of 1995) that involves
risk and uncertainty, including trends in the real estate investment market,
projected leasing and sales, and the future prospects for the Registrant. Actual
results could differ materially from those contemplated by such statements.
7
<PAGE>
Liquidity and Capital Resources
- -------------------------------
Cash on hand as of February 29, 2000 is $2,405,754, a decrease of $166,449 from
year end November 30, 1999. The decrease in cash can primarily be attributed to
the annual payment for real estate taxes made in December 1999 for Maple Tree
Shopping Center. During the quarter, capital additions were made in the amount
of $3,711 and payments were made on mortgage notes of $86,583. The Registrant
plans to maintain adequate cash reserves and to fund capital expenditures for
the remaining three quarters of 2000. The capital expenditures anticipated for
the balance of 2000 are as follows:
Leasing Capital Other Capital Total
--------------- ------------- -----
Park Plaza I & II $ 31,284 $ 82,419 $113,703
Morenci Professional Park 23,472 148,200 171,672
Maple Tree Shopping Center 0 378,800 378,800
Jackson Industrial 244,608 15,000 259,608
-------- -------- --------
$299,364 $624,419 $923,783
======== ======== ========
At three of the Registrant's properties, leasing capital has been budgeted to
fund tenant alterations and lease commissions for new and renewal leases to be
signed during the year. At Morenci the Registrant has budgeted other capital for
upgrading the exterior lighting, asphalt overlay of the east section of the lot,
replacement of concrete sidewalks, ADA (American Disabilities Act) compliance,
and asphalt sealing. At Park Plaza, the Registrant has budgeted other capital
for replacement of the porch canopies, roof repairs, exterior masonry and
painting, and parking lot sealing and striping. At Maple Tree Shopping Center
other capital has been budgeted for replacement of a section of the roof,
overlaying the rear and main drives of the center, ADA (American Disabilities
Act) compliance, and canopy renovation. At Jackson Industrial other capital has
been budgeted for separation of utilities and building of a new entrance in the
event the vacant space needs to be further subdivided.
Other capital at Park Plaza, Morenci and Maple Tree will be funded by the cash
reserves for such improvements from new loan agreements. Other capital at
Jackson Industrial will be funded from operations. Leasing capital at all four
of the Registrant's properties will be funded from operations. Jackson
Industrial's future funding for leasing capital is based upon anticipated higher
occupancy levels.
On November 30, 1999, the Registrant refinanced the debt on three of its
properties. A new note with a balance of $5,721,083 secured by Park Plaza I and
II, Morenci, and Maple Tree was obtained. In addition, the lender held back
$628,917 for specified capital improvements. This money will be drawn upon by
the Registrant as needed. The refinancing will result in a total mortgage for
the above-mentioned properties of $6,350,000. The balance of this mortgage at
February 29, 2000 was $5,678,048. The note bears interest at a rate of 9.01% per
annum and calls for monthly installments of $57,348 including both interest and
principal, through December 2004. The first mortgage debt on Jackson Industrial
has a balance due of $3,622,427 and a maturity date of November 2000. The
interest rate on the debt is 9.31%. The Registrant intends to renew the Jackson
note payable under similar terms.
The future liquidity of the Registrant is dependent on its ability to fund
future capital expenditures and mortgage payments from operations and cash
reserves, maintain occupancy, and negotiate with the lenders the refinancing of
the mortgage debt as it matures.
8
<PAGE>
Results of Operations
- ---------------------
The results of operations for the Registrant's properties for the quarter ended
February 29, 2000 and February 28, 1999 are detailed in the schedule below.
Expenses of the Registrant are excluded.
Jackson Maple Tree Park Plaza Morenci
Industrial Shopping Center I and II Prof. Park
---------- --------------- ---------- ----------
2000
----
Revenues $ 212,614 $ 143,024 $ 143,407 $ 135,890
Expenses 247,481 137,080 111,154 143,623
--------- --------- --------- ---------
Net (Loss) Income $ (34,867) $ 5,944 $ 32,253 $ (7,733)
========= ========= ========= =========
1999
----
Revenues $ 124,092 $ 134,740 $ 128,608 $ 118,610
Expenses 222,781 116,200 79,932 134,735
--------- --------- --------- ---------
Net (Loss) Income $ (98,689) $ 18,540 $ 48,676 $ (16,125)
========= ========= ========= =========
The operating results at Jackson Industrial show a significant increase in
revenue when comparing the quarter ended February 29, 2000 to the quarter ended
February 28, 1999. This increase of $88,522 is attributable to the increased
occupancy level when compared to that of the prior year. Expenses increased
$24,700 when comparing the two quarters. This increase was primarily due to an
increase in interest expense ($25,537).
At Maple Tree Shopping Center, revenues increased $8,284 when comparing the two
quarters. This increase is due to slight increases in base rental revenue,
common area maintenance reimbursements, and real estate tax revenue, partially
offset by a decrease in percentage rent revenues. Expenses for the quarter ended
February 29, 2000 increased $20,880 when compared to the quarter ended February
28, 1999, primarily due to increases in depreciation and amortization ($3,245),
interest expense ($6,979), repairs and maintenance-plumbing ($7,347), and real
estate tax expense ($5,054). The increase in interest expense is due to a higher
principal balance with the new mortgage obtained in November 1999. The increase
in repairs and maintenance-plumbing can be attributed to additional repairs
necessary in 1999.
Revenues at Park Plaza I & II increased $14,799 when comparing the quarter ended
February 29, 2000 to February 28, 1999. This increase in revenue can primarily
be attributed to an increase in base rental revenue related to the slightly
higher occupancy level than prior year. Expenses increased when comparing the
two quarters by $31,222 primarily due to increases in interest expense ($27,817)
and depreciation and amortization ($4,328). The increase in interest expense is
due to a higher principal balance with the new mortgage obtained in November
1999.
At Morenci Professional Park, revenues increased $17,280 primarily due to
increases in both common area maintenance reimbursements ($13,063) and real
estate tax revenue ($3,435). Expenses increased $8,888 due to increases in
interest expense ($15,445), depreciation and amortization ($3,562), and various
other operating expenses ($4,108). These increases were offset by decreases in
9
<PAGE>
repairs and maintenance related expenses ($11,275) and snow removal ($2,953).
The increase in interest expense is due to a higher principal balance with the
new mortgage obtained in November 1999. The decrease in repairs and maintenance
related expenses is can be attributed to extensive plumbing and electrical
repairs that were necessary only in 1998.
The occupancy levels at February 29, 2000 and February 28, 1999 and 1998 are as
follows:
Occupancy levels as of February 29 and 28,
------------------------------------------
Property 2000 1999 1998
-------- ---- ---- ----
Park Plaza I & II 100% 98% 98%
Morenci Professional Park 90% 95% 92%
Maple Tree Shopping Center 100% 96% 100%
Jackson Industrial 96% 61% 100%
At Park Plaza I & II, the occupancy level increased 2% to 100% during the
quarter. Leasing activity consisted of two new tenants occupying 4,340 square
feet and three tenants renewing their leases for 12,600 square feet. No suites
were vacated during the quarter. At Park Plaza there is one major tenant who
occupies 10% of the total space, with a lease expiring in August 2004.
At Morenci Professional Park, occupancy decreased 2% to 90% during the quarter.
Leasing activity consisted of seven tenants renewing leases for 9,600 square
feet and three tenants occupying 3,600 square feet vacating their space. Morenci
Professional Park has no tenants that occupy more than 10% of the available
space.
Occupancy at Maple Tree Shopping Center remained at 100% during the quarter.
Leasing activity consisted of one tenant renewing their lease for 14,720 square
feet. There are two major tenants occupying approximately 18% and 42% of the
available space with lease expirations in April 2005 and July 2004,
respectively.
At Jackson Industrial, occupancy increased to 96% during the quarter. The
property had three major tenants during the quarter who occupied 39%, 17%, and
40% of the available space. The tenant which occupied 17% was on a short-term
lease that ended February 29, 2000. Effective March 1, 2000, the major tenant
which previously occupied 39% will expand to 51% with a lease expiring in
January 2001. The major tenant occupying 40% of the available space has a lease
that extends through July 2002.
The Registrant reviews long-lived assets for impairment whenever events or
changes in circumstances indicate that the carrying amount of a property may not
be recoverable. The Registrant considers a history of operating losses or a
change in occupancy to be primary indicators of potential impairment. The
Registrant deems the property to be impaired if a forecast of undiscounted
future operating cash flows directly related to the property, including disposal
value, if any, is less than its carrying amount. If the property is determined
to be impaired, the loss is measured as the amount by which the carrying amount
of the property exceeds its fair value. Fair value is based on quoted market
prices in active markets, if available. If quoted market prices are not
available, an estimated of fair value is based on the best information
available, including prices for similar properties or the results of valuation
techniques such as discounting estimated future cash flows. Considerable
management judgement is necessary to estimate fair value. Accordingly, actual
results could vary significantly from such estimates.
10
<PAGE>
2000 Comparisons
- ----------------
The Registrant's consolidated revenues were $660,026 for the three month period
ended February 29, 2000 and $535,316 for the same period ended February 28,
1999. Revenues increased $124,710 when comparing the two periods. This increase
is primarily due to increases in revenue at all four of the Registrant's
properties, primarily at Jackson Industrial as previously mentioned in the
property comparisons. Consolidated expenses were $669,645 and $581,088 for the
three month periods ended February 29, 2000 and February 28, 1999, respectively.
This increase of $88,557 when comparing the two periods is primarily due to
increases in interest expense ($75,778), depreciation and amortization
($15,769), real estate tax expense ($5,137), management fees ($6,444), insurance
expense ($5,744), and payroll expense ($11,072). These increased expenses were
partially offset by decreases in parking lot expenses ($2,319), repairs and
maintenance related expenses ($6,579), vacancy related expenses ($9,222), and
various other operating expenses ($11,667). The increase in interest expense has
been addressed previously in the property comparisons. The increase in
depreciation and amortization is due to additional assets recorded when compared
to total assets for the same period in prior year. The increase in payroll can
be attributed to slight increases in administrative payroll at all four of the
Registrant's properties. The decrease in other operating expenses is primarily
due to decreased snow removal costs.
1999 Comparisons
- ----------------
As of February 28, 1999, the Registrant's consolidated revenues were $535,316
for the three month period and for the same period ended February 28, 1998,
consolidated revenues were $585,693. Revenues decreased by $50,377. This
decrease was mainly due to a decrease in rental income at Jackson Industrial
attributable to the vacancy of a former major tenant. During the first quarter
of 1999, consolidated expenses as of February 28, 1999 were $581,088 compared to
$565,238 for the quarter ended February 28, 1998. The increase in consolidated
expenses of $15,850 can primarily be attributed to an increase in other
operating expenses ($36,887) and repairs and maintenance related expenses
($9,683). The increase in other operating expenses is due to the large volume of
snow removal costs related to recent weather conditions. The increased expenses
mentioned previously were partially offset by decreases in real estate tax
($9,062), depreciation/amortization ($7,763), management fees ($4,077), parking
lot ($2,494), payroll ($5,063), and other tax expense ($2,651).
Inflation
- ---------
The effects of inflation did not have a material impact upon the Registrant's
operation in fiscal 1999, and are not expected to materially affect the
Registrant's operation in 2000.
11
<PAGE>
PART II. OTHER INFORMATION
- ---------------------------
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
See Exhibit Index
(b) Reports on Form 8-K
None
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.
Dated: April 14, 2000 NOONEY REAL PROPERTY INVESTORS-TWO, L.P.
-----------------------------
BY: NOONEY INVESTORS, INC.
General Partner
BY: /s/ Gregory J. Nooney, Jr.
--------------------------
Gregory J. Nooney, Jr.
Vice Chairman
/s/ Patricia A. Nooney
----------------------
Patricia A. Nooney
President and Secretary
12
<PAGE>
EXHIBIT INDEX
Exhibit Number Description
- -------------- -----------
3.1 Amended and Restated Agreement and Certificate of Limited
Partnership dated November 5, 1979, is incorporated by
reference to the Prospectus contained in Amendment No. 1 to
the Registration Statement on Form S-11 under the Securities
Act of 1933 (File No. 2-65006).
27 Financial Data Schedule (provided for the information of
U.S. Securities and Exchange Commission only)
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR NOONEY REAL PROPERTY INVESTORS-TWO, L.P. AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000312155
<NAME> NOONEY REAL PROPERTY INVESTORS-TWO, L.P.
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-2000
<PERIOD-START> DEC-01-1999
<PERIOD-END> FEB-29-2000
<EXCHANGE-RATE> 1
<CASH> 2,405,754
<SECURITIES> 0
<RECEIVABLES> 111,606
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,834,711
<PP&E> 16,077,608
<DEPRECIATION> 9,748,366
<TOTAL-ASSETS> 9,405,109
<CURRENT-LIABILITIES> 425,504
<BONDS> 9,300,475
<COMMON> 0
0
0
<OTHER-SE> (428,812)
<TOTAL-LIABILITY-AND-EQUITY> 9,405,109
<SALES> 634,911
<TOTAL-REVENUES> 660,026
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 424,927
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 244,718
<INCOME-PRETAX> (9,619)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,619)
<EPS-BASIC> (0.79)
<EPS-DILUTED> 0
</TABLE>
