UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998
-------------------------------------------
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 600, LB70, Dallas, Texas 75240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (972) 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>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
McNEIL REAL ESTATE FUND X, LTD.
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
--------------- --------------
ASSETS
- ------
Real estate investments:
<S> <C> <C>
Land..................................................... $ 8,836,046 $ 8,836,046
Buildings and improvements............................... 72,625,907 72,544,744
-------------- -------------
81,461,953 81,380,790
Less: Accumulated depreciation.......................... (53,598,992) (52,814,364)
-------------- -------------
27,862,961 28,566,426
Cash and cash equivalents................................... 1,622,344 5,755,976
Cash segregated for security deposits....................... 407,833 358,396
Accounts receivable......................................... 377,846 356,496
Prepaid expenses and other assets........................... 204,780 212,031
Escrow deposits............................................. 1,112,593 816,017
Deferred borrowing costs, net of accumulated
amortization of $479,858 and $452,021 at
March 31, 1998 and December 31, 1997,
respectively............................................. 1,019,237 1,047,074
-------------- -------------
$ 32,607,594 $ 37,112,416
============== =============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
- ------------------------------------------
Mortgage notes payable, net................................. $ 33,462,852 $ 33,633,574
Mortgage notes payable - affiliates......................... 3,136,029 3,136,029
Accounts payable............................................ 17,061 76,689
Accrued interest............................................ 243,100 244,393
Accrued interest - affiliates............................... 24,977 24,977
Accrued property taxes...................................... 667,656 470,105
Other accrued expenses...................................... 248,038 296,729
Payable to affiliates - General Partner..................... 2,179,201 1,858,835
Security deposits and deferred rental revenue............... 397,081 417,110
-------------- -------------
40,375,995 40,158,441
-------------- -------------
Partners' equity (deficit):
Limited partners - 135,200 limited partnership units
authorized; 134,980 limited partnership units out-
standing at March 31, 1998 and December 31, 1997....... (2,894,931) 1,607,681
General Partner.......................................... (4,873,470) (4,653,706)
-------------- -------------
(7,768,401) (3,046,025)
-------------- -------------
$ 32,607,594 $ 37,112,416
============== =============
</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 OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------
1997 1996
--------------- --------------
Revenue:
<S> <C> <C>
Rental revenue........................................... $ 3,675,778 $ 3,926,821
Interest................................................. 59,224 47,655
-------------- --------------
Total revenue.......................................... 3,735,002 3,974,476
-------------- --------------
Expenses:
Interest................................................. 773,688 946,765
Interest - affiliates.................................... 73,460 36,988
Depreciation and amortization............................ 784,628 764,277
Property taxes........................................... 241,662 275,742
Personnel expenses....................................... 479,447 483,860
Utilities................................................ 327,455 367,696
Repair and maintenance................................... 388,101 441,318
Property management fees - affiliates.................... 179,511 193,066
Other property operating expenses........................ 215,165 250,330
General and administrative............................... 191,859 85,297
General and administrative - affiliates.................. 82,778 94,349
-------------- --------------
Total expenses......................................... 3,737,754 3,939,688
-------------- --------------
Net income (loss)........................................... $ (2,752) $ 34,788
============== ==============
Net income (loss) allocated to limited partners............. $ (2,614) $ 33,049
Net income (loss) allocated to General Partner.............. (138) 1,739
-------------- --------------
Net income (loss)........................................... $ (2,752) $ 34,788
============== ==============
Net income (loss) per limited partnership unit.............. $ (.02) $ .24
============== ==============
Distributions per limited partnership unit.................. $ 33.34 $ -
============== ==============
</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' EQUITY (DEFICIT)
(Unaudited)
For the Three Months Ended March 31, 1998 and 1997
<TABLE>
<CAPTION>
Total
Partners'
General Limited Equity
Partner Partners Deficit
------------- ------------- -------------
<S> <C> <C> <C>
Balance at December 31, 1996.............. $ (5,516,007) $ (704,049) $ (6,220,056)
Net income................................ 1,739 33,049 34,788
Management Incentive Distribution......... (234,665) - (234,665)
------------- ------------- -------------
Balance at March 31, 1997................. $ (5,748,933) $ (671,000) $ (6,419,933)
============= ============= =============
Balance at December 31, 1997.............. $ (4,653,706) $ 1,607,681 $ (3,046,025)
Net loss.................................. (138) (2,614) (2,752)
Distributions to limited partners......... - (4,499,998) (4,499,998)
Management Incentive Distribution......... (219,626) - (219,626)
------------- ------------- -------------
Balance at March 31, 1998................. $ (4,873,470) $ (2,894,931) $ (7,768,401)
============= ============= =============
</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 (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------------
1998 1997
---------------- ----------------
Cash flows from operating activities:
<S> <C> <C>
Cash received from tenants............................... $ 3,592,488 $ 3,857,063
Cash paid to suppliers................................... (1,785,308) (1,739,499)
Cash paid to affiliates.................................. (161,549) (997,328)
Interest received........................................ 59,224 47,655
Interest paid............................................ (731,850) (910,276)
Interest paid to affiliates.............................. (73,460) (18,636)
Property taxes paid and escrowed......................... (266,000) (194,820)
-------------- --------------
Net cash provided by operating activities................... 633,545 44,159
-------------- --------------
Cash flows from investing activities:
Additions to real estate investments..................... (81,163) (171,499)
-------------- --------------
Cash flows from financing activities:
Proceeds from mortgage note
payable - affiliate.................................... - 2,336,029
Principal payments on mortgage
Notes payable.......................................... (186,016) (254,088)
Retirement of mortgage note payable...................... - (2,373,955)
Distributions to limited partners........................ (4,499,998) -
-------------- --------------
Net cash used in financing activities....................... (4,686,014) (292,014)
-------------- --------------
Net decrease in cash and cash equivalents................... (4,133,632) (419,354)
Cash and cash equivalents at beginning of
period................................................... 5,755,976 2,660,679
-------------- --------------
Cash and cash equivalents at end of period.................. $ 1,622,344 $ 2,241,325
============== ==============
</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,
-----------------------------------
1998 1997
---------------- ---------------
<S> <C> <C>
Net income (loss)........................................... $ (2,752) $ 34,788
-------------- --------------
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization............................ 784,628 764,277
Amortization of discounts on mortgage
notes payable.......................................... 15,294 25,893
Amortization of deferred borrowing costs................. 27,837 33,518
Changes in assets and liabilities:
Cash segregated for security deposits.................. (49,437) (36,675)
Accounts receivable.................................... (21,350) (82,113)
Prepaid expenses and other assets...................... 7,251 18,353
Escrow deposits........................................ (296,576) (123,546)
Accounts payable....................................... (59,628) (54,593)
Accrued interest....................................... (1,293) (22,922)
Accrued interest - affiliates.......................... - 18,352
Accrued property taxes................................. 197,551 158,924
Other accrued expenses................................. (48,691) (42,316)
Payable to affiliates - General Partner................ 100,740 (709,913)
Security deposits and deferred rental
revenue.............................................. (20,029) 62,132
-------------- --------------
Total adjustments.................................... 636,297 9,371
-------------- --------------
Net cash provided by operating activities................... $ 633,545 $ 44,159
============== ==============
</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, 1998
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
600, 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 quarter ended March 31, 1998, are not
necessarily indicative of the results to be expected for the year ending
December 31, 1998.
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, 1997, 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 600, LB70, Dallas, Texas 75240.
NOTE 3.
- -------
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.
On August 1, 1994, the Partnership obtained an $800,000 mortgage loan from
McNeil Real Estate Fund XXVII, L.P. ("Fund XXVII"), an affiliate of the General
Partner. The mortgage loan is secured by a second lien on Lakeview Plaza. Terms
of the mortgage loan require monthly interest-only payments equal to the prime
lending rate of Bank of America plus 1% with the principal balance due August 1,
1997. Effective August 1, 1997, Fund XXVII reconveyed the lien back to the
Partnership in consideration of the additional borrowing discussed in the
following paragraph.
On February 28, 1997, the Partnership refinanced the La Plaza mortgage note with
a $2,336,029 mortgage loan from Fund XXVII. See Note 4. Effective August 1,
1997, the Partnership borrowed an additional $800,000 from Fund XXVII. The
refinancing and the additional borrowing are jointly secured by a single lien on
La Plaza Office Building. Payment terms for the mortgage note and the additional
borrowing require monthly interest-only payments equal to 1% plus the prime
lending rate of Bank of America. The new mortgage note, together with the
additional borrowing, is due February 28, 2000.
<PAGE>
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,
-----------------------------------
1998 1997
--------------- ---------------
<S> <C> <C>
Property management fees - affiliates.................. $ 179,511 $ 193,066
Interest - affiliates.................................. 73,460 36,988
Charged to general and administrative affiliates:
Partnership administration........................... 82,778 94,349
-------------- --------------
$ 335,749 $ 324,403
============== ==============
Charged to General Partner's deficit:
Management Incentive Distribution.................... $ 219,626 $ 234,665
============== ==============
</TABLE>
NOTE 4.
- -------
On February 28, 1997, the Partnership refinanced the La Plaza mortgage note with
a $2,336,029 mortgage note from Fund XXVII. The new mortgage note bears interest
at a variable rate equal to 1% plus the prime lending rate of Bank of America
and requires monthly interest-only debt service payments until the February 28,
2000 maturity date. Cash used to close the refinancing transaction is as
follows.
New loan proceeds...................................... $ 2,336,029
Amount required to payoff existing debt................ (2,373,955)
-----------
Cash used to refinance mortgage note................... $ (37,926)
===========
On August 1, 1997, the new La Plaza mortgage note was amended to increase the
principal amount by $800,000. The Partnership used the $800,000 additional
borrowing to repay the Lakeview Plaza second mortgage note which was also due to
Fund XXVII.
<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 of a
portfolio of income-producing real properties. As of March 31, 1998, the
Partnership owned seven apartment buildings, one retail shopping center and one
office building. All of the Partnership's properties are subject to mortgage
indebtedness.
The Partnership sold two retail shopping centers during 1997. Cave Spring
Corners, located in Roanoke, Virginia, was sold on June 5, 1997, and Iberia
Plaza, located in New Iberia, Louisiana, was sold on December 12, 1997. The
decision to sell the properties was influenced by the General Partner's belief
that the appreciation potential of the two properties was limited, the impending
maturities of the mortgage notes secured by the two properties, and by the
Partnership's announced plan to liquidate its real estate by December 2001. The
net proceeds from the sales, in the amount of $3,679,598, were added to the
Partnership's balance of cash reserves.
On February 28, 1997, the Partnership refinanced the La Plaza mortgage note. The
Partnership obtained a 3-year, $2,336,029 mortgage note from McNeil Real Estate
Fund XXVII, L.P. ("Fund XXVII"). Fund XXVII is an affiliate of the General
Partner. The new mortgage note bears interest at a variable rate equal to 1%
plus the prime lending rate of Bank of America. On August 1, 1997, the
Partnership and Fund XXVII agreed to amend the new mortgage note by increasing
the principal amount by $800,000. The additional $800,000 was used to repay the
Lakeview Plaza second mortgage note, which was also due to Fund XXVII.
RESULTS OF OPERATIONS
- ---------------------
The Partnership reported a loss of $2,752 for the first quarter of 1998, as
compared to net income of $34,788 for the first quarter of 1997. However, the
Partnership would have reported a net loss of approximately $111,055 for the
first quarter of 1997 if revenues and expenses related to Cave Spring Corners
and Iberia Plaza were excluded.
Revenues:
Rental revenue decreased 6.4% for the first quarter of 1998 as compared to first
quarter of 1997. The decrease is attributable to the loss of revenues from Cave
Spring Corners and Iberia Plaza. The Partnership's remaining properties
increased their revenues $96,765 or 2.7%. Rental revenue increased at five of
the Partnership's properties, led by a 12.9% and 12.2% increase at Quail Meadows
Apartments and Briarwood Apartments, respectively. Quail Meadows Apartments
reported increased rental and occupancy rates, while Briarwood Apartments
achieved its increase primarily through improved occupancy. Coppermill
Apartments, Sandpiper Apartments and Spanish Oaks Apartments reported increases
ranging from 3.9% to 7.5% by improving both rental and occupancy rates. An
increase in rental rates at Regency Park Apartments was offset by increased
vacancy losses, leading to no change for the property's rental revenue.
<PAGE>
Rental revenue decreased at Orchard Apartments, Lakeview Plaza and La Plaza
Office Building. Although Orchard Apartments increased its rental rates 1.5%
during 1997, increased vacancy and other rental losses led to a 6.0% decrease in
net rental revenue. Lakeview Plaza's rental revenue decreased 15% as both rental
and occupancy rates decreased. La Plaza Office Building's occupancy rate also
fell, but part of the increase in vacancy was offset by increased rental rates.
La Plaza's rental revenue decreased 6.1% for the first quarter of 1998 as
compared to the first quarter of 1997.
Expenses:
Partnership expenses decreased $201,934 or 5.1% for the first quarter of 1998 as
compared to the first quarter of 1997. As with rental revenues, the decrease was
primarily due to the sale of Cave Spring Corners and Iberia Plaza. Expenses at
the remainder of the Partnership's properties decreased $3,587 or 0.1%. The
discussion of expenses in the following paragraphs excludes expenses related to
Cave Spring Corners and Iberia Plaza.
Interest paid to affiliates increased $36,472 to $73,460 for the first quarter
of 1998 as compared to the first quarter of 1997. On February 28, 1997, the
Partnership refinanced the La Plaza mortgage note with a new mortgage payable to
McNeil Real Estate Fund XXVII, L.P. ("Fund XXVII"), an affiliate of the General
Partner. On August 1, 1997, the principal balance of the new La Plaza mortgage
note was increased by $800,000. Interest on the new La Plaza mortgage note due
to an affiliate of the General Partner accounts for the increase in interest
paid to affiliates as well as most of the decrease in interest expense for
non-affiliated mortgage notes.
Excluding expense related to Cave Spring Corners and Iberia Plaza, utilities
decreased $37,218 or 10.2% for the first quarter of 1998 as compared to the same
quarter of 1997. Costs for gas and oil decreased at Coppermill Apartments, Quail
Meadows Apartments and Spanish Oaks Apartments. The most significant factor,
however, is a $20,441 or 56% decrease in the cost of water at Sandpiper
Apartments. Beginning in the fourth quarter of 1997, new leases written at
Sandpiper Apartments require tenants to pay for water consumption instead of the
Partnership.
Other operating expenses decreased $26,686 or 11.4% after eliminating the
effects of Cave Spring Corners and Iberia Plaza. Included in other operating
expenses for the first quarter of 1997 were certain legal fees and other costs
incurred at Briarwood Apartments. These fees and costs were incurred to settle
litigation involving a former employee of the property.
General and administrative expenses increased $106,563 to $191,859 for the first
quarter of 1998 as compared to the first quarter of 1997. The increase was
principally due to costs incurred to explore alternatives to maximize the value
of the Partnership (see Liquidity and Capital Resources). General and
administrative expenses paid to affiliates decreased 12.3% to $82,778 for the
first quarter of 1998 as compared to the first quarter of 1997. This decrease is
primarily due to decreased charges for reimbursable costs from affiliates. Such
costs are based, in part, on the number of properties managed for the
Partnership by affiliates. The sale of two of the Partnership's properties
during 1997 accounts for the decrease.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
For the first quarter of 1998, cash flow provided by operating activities
increased to $633,545 from $44,159. The increased cash flow is principally due
to an $835,779 decrease in cash paid to affiliates in the first quarter of 1998
as compared to the first quarter of 1997. The Partnership paid $806,902 of
reimbursable costs to affiliates of the General Partner during the first quarter
of 1997. No such payments were made during the first quarter of 1998.
The Partnership continues to invest in capital improvements for its properties.
For the first quarter of 1998, the Partnership invested $81,163 in capital
improvements. A total of $1.6 million of capital improvements are budgeted for
1998.
Short-term liquidity:
At March 31, 1998, the Partnership held cash reserves of $1,622,344, a decrease
of $4,133,632 from the balance at the end of 1997. On March 30, 1998, the
Partnership distributed $4,499,998 to the limited partners. No payments of MID
have yet been made to the General Partner in 1998. Considering the current
performance of the Partnership's properties and budgeted capital improvements
for 1998, the General Partner considers the current balance of cash and cash
reserves adequate to meet the Partnership's cash needs for the rest of 1998. The
Partnership's next balloon payment is not scheduled to occur until January 2002.
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 capital expenditures for 1998 are expected to decrease
from the average amount expended in each of the past three fiscal years. For the
balance of 1998, 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.
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 capital improvements made
by the Partnership during the past several years will yield improved cash flow
from property operations in the future. Furthermore, the General Partner has
budgeted an additional $1.6 million of capital improvements for 1998. If the
Partnership's cash position deteriorates, 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.
Pursuant to the Partnership's previously announced liquidation plans, the
Partnership has recently retained PaineWebber, Incorporated as its exclusive
financial advisor to explore alternatives to maximize the value of the
Partnership. The alternatives being considered by the Partnership include,
without limitation, a transaction in which limited partnership interests in the
Partnership are converted into cash. The General Partner of the Partnership or
entities or persons affiliated with the General Partner will not be involved as
a purchaser in any of the transactions contemplated above. Any transaction will
be subject to certain conditions including (i) approval by the limited partners
of the Partnership, and (ii) receipt of an opinion from an independent financial
advisory firm as to the fairness of the consideration received by the
Partnership pursuant to such transaction. Finally, there can be no assurance
that any transaction will be consummated, or as to the terms thereof.
<PAGE>
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 period ended
March 31, 1998 and 1997, net loss of $138 and net income of $1,739,
respectively, were allocated to the General Partner. The limited partners
received allocations of net loss of $2,614 and net income of $33,049 for the
quarters ended March 31, 1998 and 1997, respectively.
No payments of MID to the General Partner have yet been paid during 1998. On
March 30, 1998, the Partnership distributed $4,499,998 ($33.34 per limited
partnership unit) to the limited partners. The General Partner will continue to
monitor the cash reserves and working capital needs of the Partnership to
determine when cash flows will support distributions to the limited partners and
payments of MID to the General Partner.
<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 134,980 limited
partnership units outstanding in 1998 and
1997.
27. Financial Data Schedule for the quarter ended
March 31, 1998.
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 Form 8-K's file during the quarter
ended March 31, 1998.
<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, 1998 By: /s/ Ron K. Taylor
- ------------ -----------------------------------------
Date Ron K. Taylor
President and Director of McNeil
Investors, Inc.
(Principal Financial Officer)
May 14, 1998 By: /s/ Brandon K. Flaming
- ------------ -----------------------------------------
Date Brandon K. Flaming
Vice President of McNeil Investors, Inc.
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 1,622,344
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 81,461,953
<DEPRECIATION> (53,598,992)
<TOTAL-ASSETS> 32,607,594
<CURRENT-LIABILITIES> 0
<BONDS> 36,598,881
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 32,607,594
<SALES> 3,675,778
<TOTAL-REVENUES> 3,735,002
<CGS> 0
<TOTAL-COSTS> 0
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