UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the period ended March 31, 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 0-9325
MCNEIL REAL ESTATE FUND X, LTD.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 94-2577781
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (214) 448-5800
------------------------------
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 and (2) has been subject to such filing
requirements for the past 90 days. Yes X No___
<PAGE>
MCNEIL REAL ESTATE FUND X, LTD.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- ------- --------------------
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
--------------- -----------------
ASSETS
- ------
<S> <C> <C>
Real estate investments:
Land..................................................... $ 10,464,914 $ 10,464,914
Buildings and improvements............................... 79,294,322 78,886,121
-------------- -------------
89,759,236 89,351,035
Less: Accumulated depreciation.......................... (53,463,691) (52,651,505)
-------------- -------------
36,295,545 36,699,530
Assets held for sale, net................................... 2,241,625 2,237,733
Cash and cash equivalents................................... 2,408,208 1,813,594
Cash segregated for security deposits....................... 360,528 317,834
Accounts receivable......................................... 413,779 432,618
Prepaid expenses and other assets........................... 284,943 332,665
Escrow deposits............................................. 1,026,104 625,344
Deferred borrowing costs, net of accumulated amorti-
zation of $336,514 and $306,342 at March 31, 1996
and December 31, 1995, respectively...................... 1,245,631 1,179,331
-------------- -------------
$ 44,276,363 $ 43,638,649
============== =============
LIABILITIES AND PARTNERS' DEFICIT
- ---------------------------------
Mortgage notes payable, net................................. $ 44,704,810 $ 44,454,316
Mortgage note payable - affiliates.......................... 800,000 800,000
Accounts payable............................................ 114,368 186,785
Accrued property taxes...................................... 789,553 522,951
Accrued interest............................................ 335,304 370,294
Accrued interest - affiliates............................... 6,625 6,625
Other accrued expenses...................................... 212,223 318,324
Payable to affiliates - General Partner..................... 3,207,752 2,907,490
Security deposits and deferred rental revenue............... 392,142 385,231
-------------- -------------
50,562,777 49,952,016
-------------- -------------
Partners' deficit:
Limited partners - 135,200 limited partnership units
authorized; 135,030 and 135,090 limited partnership
units outstanding at March 31, 1996 and December
31, 1995, respectively................................. (1,517,861) (1,788,928)
General Partner.......................................... (4,768,553) (4,524,439)
-------------- -------------
(6,286,414) (6,313,367)
$ 44,276,363 $ 43,638,649
============== =============
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
MCNEIL REAL ESTATE FUND X, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------
1996 1995
--------------- ---------------
<S> <C> <C>
Revenue:
Rental revenue........................................... $ 3,978,103 $ 4,367,665
Interest................................................. 49,357 29,340
-------------- --------------
Total revenue.......................................... 4,027,460 4,397,005
-------------- --------------
Expenses:
Interest................................................. 1,080,396 1,305,349
Interest - affiliates.................................... 18,959 17,797
Depreciation and amortization............................ 812,186 932,091
Property taxes........................................... 278,381 288,646
Personnel expenses....................................... 474,625 556,778
Utilities................................................ 308,002 369,877
Repair and maintenance................................... 419,561 479,788
Property management fees - affiliates.................... 199,585 219,317
Other property operating expenses........................ 250,356 267,351
General and administrative............................... 48,670 35,169
General and administrative - affiliates.................. 121,001 166,764
-------------- --------------
Total expenses......................................... 4,011,722 4,638,927
-------------- --------------
Income (loss) before extraordinary item..................... 15,738 (241,922)
Extraordinary gain on extinguishment of debt................ 269,596 -
-------------- --------------
Net income (loss)........................................... $ 285,334 $ (241,922)
============== ==============
Net income (loss) allocated to limited partners............. $ 271,067 $ (229,826)
Net income (loss) allocated to General Partner.............. 14,267 (12,096)
-------------- --------------
Net income (loss)........................................... $ 285,334 $ (241,922)
============== ==============
Net income (loss) per limited partnership unit:
Income (loss) before extraordinary item.................. $ .11 $ (1.70)
Extraordinary gain on extinguishment of debt............. 1.90 -
-------------- --------------
Net income (loss)........................................ $ 2.01 $ (1.70)
============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND X, LTD.
STATEMENTS OF PARTNERS' DEFICIT
(Unaudited)
For the Three Months Ended March 31, 1996 and 1995
<TABLE>
<CAPTION>
Total
General Limited Partners'
Partner Partners Deficit
--------------- --------------- ---------------
<S> <C> <C> <C>
Balance at December 31, 1994.............. $ (3,569,840) $ (3,872,434) $ (7,442,274)
Net loss.................................. (12,096) (229,826) (241,922)
Management Incentive Distribution......... (269,933) - (269,933)
------------- ------------- -------------
Balance at March 31,1995.................. $ (3,851,869) $ (4,102,260) $ (7,954,129)
============= ============= =============
Balance at December 31, 1995.............. $ (4,524,439) $ (1,788,928) $ (6,313,367)
Net income................................ 14,267 271,067 285,334
Management Incentive Distribution......... (258,381) - (258,381)
------------- ------------- -------------
Balance at March 31, 1996................. $ (4,768,553) $ (1,517,861) $ (6,286,414)
============= ============= =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND X, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------------
1996 1995
---------------- ----------------
<S> <C> <C>
Cash flows from operating activities:
Cash received from tenants............................... $ 3,953,454 $ 4,366,891
Cash paid to suppliers................................... (1,643,530) (1,628,773)
Cash paid to affiliates.................................. (278,705) (231,452)
Interest received........................................ 49,357 29,340
Interest paid............................................ (962,752) (1,141,288)
Interest paid to affiliates.............................. (18,959) (17,797)
Property taxes paid and escrowed......................... (332,180) (50,116)
-------------- --------------
Net cash provided by operating activities................... 766,685 1,326,805
-------------- --------------
Cash flows from investing activities:
Additions to real estate investments..................... (412,093) (312,878)
-------------- --------------
Cash flows from financing activities:
Net proceeds from refinancing mortgage
note payable........................................... 475,775 -
Principal payments on mortgage notes
payable................................................ (139,281) (273,886)
Deferred borrowing costs paid............................ (96,472) (19,169)
-------------- --------------
Net cash provided by (used in) financing
activities............................................... 240,022 (293,055)
-------------- --------------
Net increase in cash and cash equivalents................... 594,614 720,872
Cash and cash equivalents at beginning of
period................................................... 1,813,594 574,589
-------------- --------------
Cash and cash equivalents at end of period.................. $ 2,408,208 $ 1,295,461
============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND X, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Income (Loss) to Net Cash Provided By
Operating Activities
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------------
1996 1995
--------------- ----------------
<S> <C> <C>
Net income (loss)........................................... $ 285,334 $ (241,922)
-------------- --------------
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization............................ 812,186 932,091
Amortization of discounts on mortgage
notes payable.......................................... 38,633 46,703
Amortization of deferred borrowing costs................. 30,172 35,761
Extraordinary gain on extinguishment of debt............. (269,596) -
Changes in assets and liabilities:
Cash segregated for security deposits.................. (42,694) 20,618
Accounts receivable.................................... 18,839 (6,376)
Prepaid expenses and other assets...................... 47,722 76,018
Escrow deposits........................................ (406,070) 24,907
Accounts payable....................................... (72,417) 13,003
Accrued property taxes................................. 266,602 205,711
Accrued interest....................................... 48,839 63,800
Other accrued expenses................................. (39,657) (1,399)
Payable to affiliates - General Partner................ 41,881 172,426
Security deposits and deferred rental
revenue.............................................. 6,911 (14,536)
-------------- --------------
Total adjustments.................................... 481,351 1,568,727
-------------- --------------
Net cash provided by operating activities................... $ 766,685 $ 1,326,805
============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
McNEIL REAL ESTATE FUND X, LTD.
Notes to Financial Statements
(Unaudited)
March 31, 1996
NOTE 1.
- -------
McNeil Real Estate Fund X, Ltd. (the "Partnership") is a limited partnership
organized under the laws of the State of California to invest in real property.
The general partner of the Partnership is McNeil Partners, L.P. (the "General
Partner"), a Delaware limited partnership, an affiliate of Robert A. McNeil. The
Partnership is governed by an agreement of limited partnership (the "Amended
Partnership Agreement") that was adopted October 9, 1991. The principal place of
business for the Partnership and the General Partner is 13760 Noel Road, Suite
700, LB70, Dallas, Texas 75240.
In the opinion of management, the financial statements reflect all adjustments
necessary for a fair presentation of the Partnership's financial position and
results of operations. All adjustments were of a normal recurring nature.
However, the results of operations for the three months ended March 31, 1996,
are not necessarily indicative of the results to be expected for the year ending
December 31, 1996.
NOTE 2.
- -------
The financial statements should be read in conjunction with the financial
statements contained in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 1995, and the notes thereto, as filed with the
Securities and Exchange Commission, which is available upon request by writing
to McNeil Real Estate Fund X, Ltd., c/o McNeil Real Estate Management, Inc.,
Investor Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240.
NOTE 3.
- -------
Certain prior period amounts within the accompanying financial statements have
been reclassified to conform with current year presentation.
NOTE 4.
- -------
The Partnership pays property management fees equal to 5% of the gross rental
receipts of the Partnership's properties to McNeil Real Estate Management, Inc.
("McREMI"), an affiliate of the General Partner, for providing property
management services for the Partnership's residential and commercial properties
and leasing services for its residential properties. McREMI may also choose to
provide leasing services for the Partnership's commercial properties, in which
case McREMI will receive property management fees from such commercial
properties equal to 3% of the property's gross rental receipts plus leasing
commissions based on the prevailing market rate for such services where the
property is located.
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
<PAGE>
Under terms of the Amended Partnership Agreement, the Partnership is paying a
Management Incentive Distribution ("MID") to the General Partner. The maximum
MID is calculated as 1% of the tangible asset value of the Partnership. The
maximum MID percentage decreases subsequent to 1999. Tangible asset value is
determined by using the greater of (i) an amount calculated by applying a
capitalization rate of 9% to the annualized net operating income of each
property or (ii) a value of $10,000 per apartment unit for residential property
and $50 per gross square foot for commercial property to arrive at the property
tangible asset value. The property tangible asset value is then added to the
book value of all other assets excluding intangible items.
MID will be paid to the extent of the lesser of the Partnership's excess cash
flow, as defined, or net operating income, as defined (the "Entitlement
Amount"), and may be paid (i) in cash, unless there is insufficient cash to pay
the distribution in which event any unpaid portion not taken in Units will be
deferred and is payable, without interest, from the first available cash and/or
(ii) in Units. A maximum of 50% of the MID may be paid in Units. The number of
Units issued in payment of the MID is based on the greater of $50 per Unit or
the net tangible asset value, as defined, per Unit.
Any amount of the MID that is paid to the General Partner in Units will be
treated as if cash is distributed to the General Partner and is then contributed
to the Partnership by the General Partner. The MID represents a return of equity
to the General Partner for increasing cash flow, as defined, and accordingly is
treated as a distribution.
Compensation, reimbursements and distributions paid to or accrued for the
benefit of the General Partner and its affiliates are as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------
1996 1995
--------------- ---------------
<S> <C> <C>
Property management fees - affiliates....................... $ 199,585 $ 219,317
Charged to general and administrative -
affiliates:
Partnership administration............................... 121,001 166,764
-------------- --------------
$ 320,586 $ 386,081
============== ==============
Charged to General Partner's deficit:
Management Incentive Distribution........................ $ 258,381 $ 269,933
============== ==============
</TABLE>
<PAGE>
NOTE 5.
- -------
On January 26, 1996, the Partnership refinanced the Spanish Oaks mortgage note.
The new mortgage note, in the amount of $4,000,000, bears interest at 7.71%,
requires monthly principal and interest payments of $28,546, and matures on
January 26, 2003. In connection with the refinancing, the Partnership negotiated
a discounted payoff of the prior mortgage note that resulted in a $269,596
extraordinary gain on extinguishment of debt. The remainder of the prior
mortgage note balance has been placed in escrow pending negotiations concerning
the amount of the payoff of the prior mortgage note. Cash proceeds from the
refinancing transaction are as follows:
New loan proceeds.......................... $ 4,000,000
Existing debt retired...................... (3,524,225)
--------------
Proceeds from refinancing.................. $ 475,775
==============
The Partnership incurred $129,273 of deferred borrowing costs related to the
refinancing of the Spanish Oaks mortgage note. The Partnership was also required
to fund $165,291 into various escrows for property taxes, hazard insurance and
deferred maintenance.
NOTE 6.
- -------
On March 31, 1996, a fire destroyed or damaged 18 units at Regency Park
Apartments. Preliminary estimates indicate the fire caused approximately
$550,000 of damage to the property. The Partnership expects its insurance
carrier to reimburse the Partnership for all damages incurred as a result of the
fire less a standard deductible. Reconstruction will likely be completed during
the third quarter of 1996.
NOTE 7.
- -------
In 1996, the Partnership adopted the Financial Accounting Standards Board's
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of."
This statement requires the cessation of depreciation on assets held for sale.
Since Parkway Plaza is currently classified as an asset held for sale, no
depreciation was taken in 1996.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------- ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
The Partnership was formed to acquire, operate and ultimately dispose a
portfolio of income-producing real properties. At March 31, 1996, the
Partnership owned seven apartment properties, one office building and four
shopping centers. All of the Partnership's properties are subject to mortgage
notes. On September 14, 1995, the Partnership sold The Courts Apartments to an
unaffiliated purchaser. The Partnership recognized a $3,183,698 gain on the
disposition. Cash proceeds to the Partnership amounted to $1,289,572.
The Partnership is marketing one of its properties, Parkway Plaza, for sale. The
Partnership and a potential buyer have signed a sales contract with a sales
price of $3,175,000, and with an expected closing date in June 1996. However,
there can be no assurance that the sale of Parkway Plaza will be consummated.
RESULTS OF OPERATIONS
- ---------------------
The Partnership reported net income of $285,334 for the first quarter of 1996.
Included in net income was a $269,596 extraordinary gain on the discounted
payoff of the Spanish Oaks mortgage note. Before the extraordinary gain, the
Partnership reported income of $15,738 compared to a loss of $241,922 for the
first quarter of 1995.
Revenues:
Rental revenue decreased $389,562 or 8.9% for the first quarter of 1996 compared
to the first quarter of 1995. The decrease in rental revenue is primarily due to
the sale of The Courts Apartments. The Courts Apartments accounted for $457,107
of first quarter revenues for 1995. Exclusive of revenues from The Courts
Apartments, rental revenue increased $67,545 or 1.7% in the first quarter of
1996 compared to the first quarter of 1995.
Rental revenue increased at six of the Partnership's twelve properties:
Coppermill Apartments, Orchard Apartments, Quail Meadows Apartments, Regency
Park Apartments, Iberia Plaza and Parkway Plaza. All six properties were able to
increase both base rental rates and occupancy rates (except Regency Park
Apartments, which reported decreased occupancy). First quarter rental revenue at
Spanish Oaks Apartments was unchanged from the first quarter of 1995. The
remainder of the Partnership's properties reported decreased rental revenue. La
Plaza Office Building reported the largest decrease in rental revenues; vacancy
losses increased $61,737 to $110,528 at the Las Vegas property. During the
course of 1995, two of the property's major tenants either moved to a competing
<PAGE>
property, or reduced their space requirements by half. The Partnership is
reconfiguring space arrangements at La Plaza to take advantage of the shortage
of smaller office suites in the Las Vegas market. Lakeview Plaza also reported a
large increase in rental losses because of two tenants who vacated their leases
during the quarter. The remainder of the Partnership's properties reported
increased base rental rates that were more than offset by increased vacancy and
other rental losses.
Expenses:
Partnership expenses decreased $533,754 or 11.5% for the first quarter 1996
compared to the first quarter of 1995. Included in 1995 expenses are $559,590 of
expenses related to The Courts Apartments. Excluding the decrease due to sale of
The Courts Apartments, increased expenses were concentrated in property taxes,
other property operating expenses, and general and administrative. These
increases were offset by 27% decrease in general and administrative - affiliate
expenses.
Excluding property taxes attributable to The Courts Apartments, property tax
expense increased $4,720 or 14.3% in the first quarter of 1996 compared to the
first quarter of 1995. Most of the Partnership's properties incurred small
increases in property tax assessments. The exception was Spanish Oaks
Apartments. Property taxes at Spanish Oaks were unusually low in 1995 due to a
refund of 1992 property taxes received during the first quarter of 1995.
Property taxes for Spanish Oaks for the first quarter of 1996 returned to
customary levels.
Other property operating expenses increased $18,552 or 8.0% after excluding
expenses attributable to The Courts Apartments. The majority of the increase in
other property operating expenses can be traced to increased marketing expenses
at La Plaza, Lakeview Plaza and Regency Park Apartments, and to increased
leasing commissions paid at most of the Partnership's commercial properties.
General and administrative-affiliates expense decreased $45,763 or 27% for the
first quarter of 1996. The sale of The Courts Apartments decreased the amount of
reimbursable expenses charged to the Partnership by affiliates of the General
Partner.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Cash flow provided by operating activities decreased to $766,685 from $1,326,805
for the first quarter of 1996. Cash received from tenants decreased $413,437 or
9.5% principally due to the sale of The Courts Apartments. Despite the sale of
The Courts Apartments, cash paid to suppliers increased .9% because of increased
general and administrative expenses and the initial funding of two escrow
accounts associated with the refinancing of the Spanish Oaks mortgage note. The
refinancing of the Spanish Oaks mortgage note also accounts for much of the
$282,064 increase in property taxes paid and escrowed. The Partnership was
required to fund an escrow accounts for the payment of property taxes for
Spanish Oaks Apartments; no such escrow account was required under terms of the
previous mortgage note.
<PAGE>
Although additions to real estate investments increased approximately $100,000
in the first quarter of 1996 compared to 1995, for all of 1996 the Partnership
expects to decrease its capital expenditures to a budgeted $1.3 million compared
to $2.9 million expended in 1995.
Cash flows from financing activities increased $533,077 for the first quarter of
1996 compared to the first quarter of 1995. The refinancing of the Spanish Oaks
mortgage note provided a one-time $475,775 increase to the Partnership's cash
flows. The refinancing also required the expenditure of $96,472 for deferred
borrowing costs.
Short-term liquidity:
At March 31, 1996, the Partnership held cash reserves of $2,408,208, an increase
of $594,614 from the balance at the end of 1995. Cash reserves of the
Partnership have increased significantly from depressed levels at the end of
1994. The General Partner is continuing to take steps to increase the
Partnership's liquidity. Some of these steps are discussed in the following
paragraphs.
In addition to the sale of The Courts Apartments in September 1995, the General
Partner has placed Parkway Plaza on the market for sale. As discussed above, the
Partnership has signed a sales contract to sell Parkway Plaza to an unaffiliated
buyer for a purchase price of $3,175,000. If the sale is consummated as provided
for in the sales contract, the sale should provide sufficient funds to retire
the Parkway Plaza mortgage note and still provide a small increase in funds to
the Partnership. The General Partner believes that the appreciation potential of
Parkway Plaza is limited, while extensive capital improvement funds will be
required to maintain cash from operations at current levels. If the sale of
Parkway Plaza is not completed, the Partnership will have to address the
impending maturity of the Parkway Plaza mortgage note on August 1, 1996. If the
sale is not completed, and if suitable financing for Parkway Plaza is not
secured, the property could be lost to foreclosure.
Over the past three years, the Partnership has invested large amounts of funds
in capital improvements at the Partnership's properties. Although significant
challenges remain, total budgeted capital expenditures for 1996 are expected to
decrease to $1.3 million in 1996. For the balance of 1996, the largest capital
projects of the Partnership will be concentrated at La Plaza Office Building as
the property undergoes refurbishment to allow it to take advantage of a strong
Las Vegas market.
As a further source of funds, the Partnership may obtain secondary mortgage
financing from an affiliated partnership secured by La Plaza Office Building.
Placing a second lien on La Plaza would require the approval of the current
first lien holder, and must also comply with loan criteria of the affiliated
partnership. Proceeds from such a mortgage loan could range from $1 million to
$1.5 million, if approvals are obtained from the first lien holder and the
affiliated partnership.
Beginning in March, the Partnership resumed payment of reimbursable
administrative expenses to affiliates of the General Partner. Such payments had
been suspended since the beginning of 1994. The General Partner expects to
resume MID payments in 1996, if the Partnership continues to perform as
anticipated. MID incurred but not paid for the first quarter of 1996 totaled
$258,381.
<PAGE>
The General Partner has established a revolving credit facility, not to exceed
$5,000,000 in the aggregate, which will be available on a "first-come,
first-served" basis to the Partnership and other affiliated partnerships if
certain conditions are met. Borrowings under the facility may be used to fund
deferred maintenance, refinancing obligations and working capital needs. There
is no assurance that the Partnership will receive any funds from the facility
because no amount will be reserved for any particular partnership. As of March
31, 1996, $2,662,819 remained available for borrowing under the facility;
however, additional funds could become available as other partnerships repay
existing borrowings. This commitment expires on October 9, 1996.
Long-term liquidity:
For the long-term, property operations will remain the primary source of funds.
In this regard, the General Partner expects that the $9.1 million of capital
improvements made by the Partnership during the past three years will yield
improved cash flow from property operations in the future. Furthermore, the
General Partner has budgeted $1.3 million of capital improvements for 1996. If
the Partnership's cash position deteriorates due to reverses in property
operations, failure to sell properties currently held for sale, or failure to
obtain refinancing or secondary financing as discussed above, the General
Partner may elect to defer certain of the capital improvements, except where
such improvements are expected to increase the competitiveness or marketability
of the Partnership's properties.
As a further source of liquidity, the General Partner may, from time to time,
attempt to sell Partnership properties judged to be mature considering the
circumstances of the market where the properties are located, as well as the
Partnership's need for liquidity. However, there can be no guarantee that the
Partnership will be able to sell any of its properties for an amount sufficient
to retire the related mortgage note and still provide cash proceeds to the
Partnership, or that such cash proceeds could be timed to coincide with the
liquidity needs of the Partnership. Currently, Parkway Plaza is the only
Partnership property being marketed for sale.
Income Allocations and Distributions:
Terms of the Amended Partnership Agreement specify that income before
depreciation is allocated to the General Partner to the extent of MID paid in
cash. Depreciation is allocated in the ratio of 95:5 to the limited partners and
the General Partner, respectively. Therefore, for the three month periods ended
March 31, 1996 and 1996, $9,594 and ($12,096), respectively, were allocated to
the General Partner. The limited partners received allocations of net income
(loss) of $182,289 and $(229,826) for the three months ended March 31, 1996 and
1995, respectively.
With the exception of the MID, distributions to partners have been suspended
since 1986 as part of the General Partner's policy of maintaining adequate cash
reserves. Distributions to Unit holders will remain suspended for the
foreseeable future. Payments of MID have been suspended since the beginning of
1994. The General Partner will continue to monitor the cash reserves and working
capital needs of the Partnership to determine when cash flows will support
payments of MID and distributions to the Unit holders.
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- ------- --------------------------------
(a) Exhibits.
Exhibit
Number Description
------- -----------
4. Amended and Restated Partnership Agreement,
dated October 9, 1991 (Incorporated by
reference to the Quarterly Report on Form 10-Q
for the quarter ended March 31, 1991).
11. Statement regarding computation of net loss
per limited partnership unit: Net loss per
limited partnership unit is computed by
dividing net loss allocated to the limited
partners by the number of limited partnership
units outstanding. Per unit information has
been computed based on 135,090 limited
partnership units outstanding in 1995 and
1994.
27. Financial Data Schedule for the quarter ended
March 31, 1996.
Registrant has omitted instruments with respect to long-term debt where
the total amount of securities authorized thereunder does not exceed
10% of the total assets of the Registrant. Registrant agrees to furnish
a copy of each such instruments to the Commission upon request.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during
the quarter ended March 31, 1996.
<PAGE>
McNEIL REAL ESTATE FUND X, LTD.
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:
McNEIL REAL ESTATE FUND X, LTD.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
May 14, 1996 By: /s/ Donald K. Reed
- ------------------- ----------------------------------------
Date Donald K. Reed
President and Chief Executive Officer
May 14, 1996 By: /s/ Ron K. Taylor
- ------------------- ----------------------------------------
Date Ron K. Taylor
Acting Chief Financial Officer of
McNeil Investors, Inc.
May 14, 1996 By: /s/ Brandon K. Flaming
- ------------------- ----------------------------------------
Date Brandon K. Flaming
Chief Accounting Officer of McNeil
Real Estate Management, Inc.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,408,208
<SECURITIES> 0
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<CURRENT-ASSETS> 0
<PP&E> 89,759,236
<DEPRECIATION> (53,463,691)
<TOTAL-ASSETS> 44,276,363
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<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 44,276,363
<SALES> 3,978,103
<TOTAL-REVENUES> 4,027,460
<CGS> 0
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<OTHER-EXPENSES> 2,931,326
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,080,396
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 15,738
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<EXTRAORDINARY> 269,596
<CHANGES> 0
<NET-INCOME> 285,334
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<EPS-DILUTED> 0
</TABLE>
