FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
QUARTERLY OR TRANSITIONAL REPORT
U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1998
[ ] 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 0-9704
ANGELES PARTNERS IX
(Exact name of small business issuer as specified in its charter)
California 95-3417137
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
55 Beattie Place, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
ANGELES PARTNERS IX
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30, 1998
(in thousands, except unit data)
Assets
Cash and cash equivalents $ 704
Receivables and deposits 535
Restricted escrows 544
Other assets 467
Investment properties:
Land $ 3,083
Buildings and related personal property 34,320
37,403
Less accumulated depreciation (24,109) 13,294
$ 15,544
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 113
Tenant security deposit liabilities 111
Accrued property taxes 368
Other liabilities 192
Mortgage notes payable 19,601
Partners' Deficit
General partner's $ (224)
Limited partners' (19,975 units issued
and outstanding) (4,617) (4,841)
$ 15,544
See Accompanying Notes to Consolidated Financial Statements
b)
ANGELES PARTNERS IX
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended Nine Months Ended
September 30 September 30,
1998 1997 1998 1997
Revenues:
Rental income $ 1,830 $ 1,729 $ 5,383 $ 5,250
Other income 91 110 263 295
Total revenues 1,921 1,839 5,646 5,545
Expenses:
Operating 1,051 988 3,101 2,913
General and administrative 76 78 226 203
Depreciation 476 457 1,390 1,352
Interest 430 436 1,296 1,311
Property taxes 106 108 323 325
Total expenses 2,139 2,067 6,336 6,104
Net loss $ (218) $ (228) $ (690) $ (559)
Net loss allocated to
general partner (1%) $ (2) $ (2) $ (7) $ (6)
Net loss allocated to
limited partners (99%) (216) (226) (683) (553)
$ (218) $ (228) $ (690) $ (559)
Net loss per limited
partnership unit $(10.81) $(11.31) $(34.19) $(27.68)
See Accompanying Notes to Consolidated Financial Statements
c)
ANGELES PARTNERS IX
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
(Unaudited)
(in thousands, except unit data)
Limited
Partnership General Limited
Units Partner's Partners' Total
Original capital contributions 20,000 $ 1 $20,000 $20,001
Partners' deficit at
December 31, 1997 19,975 $ (217) $(3,934) $(4,151)
Net loss for the nine months
ended September 30, 1998 -- (7) (683) (690)
Partners' deficit at
September 30, 1998 19,975 $ (224) $(4,617) $(4,841)
See Accompanying Notes to Consolidated Financial Statements
d)
ANGELES PARTNERS IX
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Nine Months Ended
September 30,
1998 1997
Cash flows from operating activities:
Net loss $ (690) $ (559)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation 1,390 1,352
Amortization of loan costs and discounts 83 86
Change in accounts:
Receivables and deposits (146) (35)
Other assets 33 (72)
Accounts payable (185) (128)
Tenant security deposit liabilities (4) (11)
Accrued property taxes 144 40
Other liabilities (41) 1
Net cash provided by operating activities 584 674
Cash flows from investing activities:
Property improvements and replacements (543) (532)
Net withdrawals from (deposits to) restricted escrows 162 (95)
Net cash used in investing activities (381) (627)
Cash flows from financing activities:
Payments on mortgage notes payable (182) (167)
Loan costs paid -- (8)
Net cash used in financing activities (182) (175)
Net increase (decrease) in cash and cash equivalents 21 (128)
Cash and cash equivalents at beginning of period 683 877
Cash and cash equivalents at end of period $ 704 $ 749
Supplemental disclosure of cash flow information:
Cash paid for interest $1,212 $1,228
See Accompanying Notes to Consolidated Financial Statements
e)
ANGELES PARTNERS IX
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Angeles Partners
IX (the "Partnership") have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the
opinion of Angeles Realty Corporation (the "General Partner"), a wholly-owned
subsidiary of Insignia Properties Trust ("IPT"), all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three and nine month periods ended
September 30, 1998, are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 1998. For further information,
refer to the consolidated financial statements and footnotes thereto included in
the Partnership's annual report on Form 10-KSB for the fiscal year ended
December 31, 1997.
Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.
Principles of Consolidation
The consolidated financial statements of the Partnership include its 99% limited
partnership interest in Houston Pines, Ltd. The Partnership may remove the
general partner of Houston Pines; therefore, the Partnership is controlled and
consolidated by the Partnership. All significant interpartnership balances have
been eliminated. Minority interest is immaterial and not shown separately in the
financial statements.
NOTE B - TRANSACTION WITH AFFILIATES
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership activities.
The partnership agreement provides for payments to affiliates for services and
as reimbursement of certain expenses incurred by affiliates on behalf of the
Partnership.
The following amounts were paid to the General Partner and/or its affiliates for
the nine months ended September 30, 1998 and 1997:
1998 1997
(in thousands)
Property management fees (included in operating expenses) $285 $279
Reimbursement of services of affiliates, including
approximately $49,000 and $8,000 for construction
services reimbursements for the nine months ended
September 30, 1998 and 1997, respectively (included in
general and administrative expenses and investment
properties) 212 141
For the period from January 1, 1997 to August 31, 1997, the Partnership insured
its properties under a master policy through an agency affiliated with the
General Partner, but with an insurer unaffiliated with the General Partner. An
affiliate of the General Partner acquired, in the acquisition of a business,
certain financial obligations from an insurance agency which was later acquired
by the agent who placed the master policy. The agent assumed the financial
obligations to the affiliate of the General Partner which received payment on
these obligations from the agent. The amount of the Partnership's insurance
premiums that accrued to the benefit of the affiliate of the General Partner by
virtue of the agent's obligations is not significant.
On April 13, 1998, an affiliate of the General Partner (the "Purchaser")
commenced a tender offer for limited partnership interests in the Partnership.
The Purchaser offered to purchase up to 8,300 of the outstanding units of
limited partnership interest ("Units") in the Partnership at a purchase price of
$325 per Unit, net to the seller in cash. On May 11, 1998, the tender offer was
closed, and the Purchaser acquired 2,572 Units of limited partnership interest.
On August 12, 1998, the Purchaser commenced a second tender offer for limited
partnership interests in the Partnership. The Purchaser offered to purchase up
to 5,000 of the outstanding units of limited partnership interest ("Units") in
the Partnership at a purchase price of $330 per Unit, net to the seller in cash.
The expiration date for the tender offer was extended to November 16,1998.
NOTE C - TRANSFER OF CONTROL; SUBSEQUENT EVENT
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the General Partner. In addition, AIMCO also acquired approximately 51% of
the outstanding common shares of beneficial interest of IPT. Also, effective
October 1, 1998, IPT and AIMCO entered into an Agreement and plan of Merger
pursuant to which IPT is to be merged with and into AIMCO or a subsidiary of
AIMCO (the "IPT Merger"). The IPT Merger requires the approval of the holders
of a majority of the outstanding IPT Shares. AIMCO has agreed to vote all of the
IPT Shares owned by it in favor of the IPT Merger and has granted an irrevocable
limited proxy to unaffiliated representatives of IPT to vote the IPT Shares
acquired by AIMCO and its subsidiaries in favor of the IPT Merger. As a result
of AIMCO's ownership and its agreement, the vote of no other holder of IPT is
required to approve the merger. The General Partner does not believe that this
transaction will have a material effect on the affairs and operations of the
Partnership.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
The Partnership's investment properties consist of five apartment complexes. The
following table sets forth the average occupancy of the properties for the nine
months ended September 30, 1998 and 1997:
Average Occupancy
Property 1998 1997
Pines of Northwest Crossing Apartments (1) 95% 91%
Houston, Texas
Panorama Terrace Apartments 91% 90%
Birmingham, Alabama
Forest River Apartments 93% 92%
Gadsden, Alabama
Village Green Apartments 93% 92%
Montgomery, Alabama
Rosemont Crossing Apartments (2) 88% 94%
San Antonio, Texas
(1) Occupancy at Pines of Northwest Crossing Apartments has increased due to
exterior building improvements made to increase curb appeal.
(2) Occupancy at Rosemont Crossing has decreased due to new construction in the
area and low interest rates attracting first time home buyers.
The Partnership's net loss for the three and nine month periods ended September
30, 1998, were approximately $218,000 and $690,000, respectively, versus net
loss of approximately $228,000 and $559,000 for the corresponding periods of
1997. The increase in net loss for the comparable nine months periods is
primarily attributable to increases in operating expense and general and
administrative expense and a decrease in other income, which more than offset an
increase in rental revenue. The increase in operating expense is primarily due
the continuation of the exterior renovation project, which began during the
second quarter of 1997 at The Pines of Northwest Crossing Apartments, and an
increase in landscaping at both Panorama Terrace Apartments and Forest River.
The improvements at these properties are necessary in order to improve the
appearance of the apartment complexes to remain competitive in their market
areas. Included in operating expense for the nine months ended September 30,
1998, is approximately $312,000 of major repairs and maintenance comprised
primarily of exterior building repairs, landscaping, and exterior painting.
Included in operating expenses for the nine months ended September 30, 1997, is
approximately $193,000 of major repairs and maintenance comprised primarily of
exterior building improvements, exterior painting, parking lot repairs, and
landscaping. The increase in general and administrative expense is primarily
the result of increased expense reimbursements and administrative expenses.
Other income decreased due to reduced tenant charges for the nine months ended
September 30, 1998, as compared to the corresponding period in 1997. Rental
revenue increased due to an increase in average occupancy at The Pines of
Northwest Crossing, Village Green, and Panorama Terrace, and an increase in
average rental rates at all the Partnership's properties. These increases to
rental revenue were partially offset by a decrease in occupancy at Rosemont
Crossing.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.
At September 30, 1998, the Partnership held cash and cash equivalents of
approximately $704,000, compared to approximately $749,000 at September 30,
1997. For the nine months ended September 30, 1998, net cash increased
approximately $21,000, compared to a net decrease of approximately $128,000 for
the corresponding period in 1997. Net cash provided by operating activities
decreased primarily due to an increase in net loss as discussed above, and an
increase in receivables and deposits due to the timing of cash receipts. Net
cash provided by operating activities also decreased due to a decrease in
accounts payable and an increase in accrued property taxes due to timing of
payments. Net cash used in investing activities decreased primarily as a result
of net withdrawals being received from restricted escrows during the nine months
ended September 30, 1998, compared to the nine months ended September 30, 1997,
when net deposits were made to restricted escrows. This change was partially
offset by an increase in property improvements and replacements. Net cash used
in financing activities increased slightly as a result of an increase in
principal payments, partially offset by a decrease in loan costs paid.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the various properties to adequately maintain the
physical assets and other operating needs of the Partnership and to comply with
Federal, State and local legal and regulatory requirements. Such assets are
currently thought to be sufficient for any near-term needs of the Partnership.
The General Partner is currently assessing the need for capital improvements at
each of the Partnership's properties. To the extent that additional capital
improvements are required, the Partnership's distributable cash flow, if any,
may be adversely affected. The mortgage indebtedness of approximately
$19,601,000, net of discount, is amortized over varying periods with required
balloon payments of $18,258,000 from August 2002 to November 2003. The General
Partner will attempt to refinance such indebtedness or sell the properties prior
to such maturity date. If the properties cannot be refinanced or sold for a
sufficient amount, the Partnership will risk losing such properties through
foreclosure. No cash distributions were paid during the nine months ended
September 30, 1998, or during the nine months ended September 30, 1997. Future
cash distributions will depend on the levels of cash generated from operations,
refinancings, property sales and the availability of cash reserves. The
Partnership's distribution policy will be reviewed on a quarterly basis. There
can be no assurance, however, that the Partnership will generate sufficient
funds from operations to permit distributions to its partners in 1998 or
subsequent periods.
Transfer of Control; Subsequent Event
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the General Partner. In addition, AIMCO also acquired approximately 51% of
the outstanding common shares of beneficial interest of Insignia Properties
Trust ("IPT"). Also, effective October 1, 1998, IPT and AIMCO entered into an
Agreement and plan of Merger pursuant to which IPT is to be merged with and into
AIMCO or a subsidiary of AIMCO (the "IPT Merger"). The IPT Merger requires the
approval of the holders of a majority of the outstanding IPT Shares. AIMCO has
agreed to vote all of the IPT Shares owned by it in favor of the IPT Merger and
has granted an irrevocable limited proxy to unaffiliated representatives of IPT
to vote the IPT Shares acquired by AIMCO and its subsidiaries in favor of the
IPT Merger. As a result of AIMCO's ownership and its agreement, the vote of no
other holder of IPT is required to approve the merger. The General Partner does
not believe that this transaction will have a material effect on the affairs and
operations of the Partnership.
Year 2000
General Description of the Year 2000 Issue and the Nature and Effects of the
Year 2000 on Information Technology (IT) and Non-IT Systems
The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. The Partnership is
dependent upon the General Partner and its affiliates for management and
administrative services ("Managing Agent"). Any computer programs or hardware
that have date-sensitive software or embedded chips may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in a system
failure or miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send invoices, or
engage in similar normal business activities.
The Managing Agent has determined that it will be required to modify or replace
significant portions of its software and certain hardware so that those systems
will properly utilize dates beyond December 31, 1999. The Managing Agent
presently believes that with modifications or replacements of existing software
and certain hardware, the Year 2000 Issue can be mitigated. However, if such
modifications and replacements are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the Managing
Agent and the Partnership.
Status of Progress in Becoming Year 2000 Compliant
The Managing Agent's plan to resolve the Year 2000 Issue involves the following
four phases: assessment, remediation, testing and implementation. To date, the
Managing Agent has fully completed its assessment of all information systems
that could be significantly affected by the Year 2000, and has begun the
remediation, testing and implementation phase on both hardware and software
systems. Assessments are continuing in regards to embedded systems in operating
equipment. The Managing Agent anticipates having all phases complete by June 1,
1999.
In addition to the areas the Partnership is relying on the Managing Agent to
verify compliance with, the Partnership has certain operating equipment,
primarily at the property sites, which needed to be evaluated for Year 2000
compliance. The focus of the General Partner was to the security systems,
elevators, heating-ventilation-air-conditioning systems, telephone systems and
switches, and sprinkler systems. The General Partner is currently engaged in the
identification of all non-compliant operational systems, and is in the process
of estimating the costs associated with any potential modifications or
replacements needed to such systems in order for them to be Year 2000 compliant.
It is not expected that such costs would have a material adverse affect upon
the operations of the Partnership.
Risk Associated with the Year 2000
The General Partner believes that the Managing Agent has an effective program in
place to resolve the Year 2000 issue in a timely manner and has appropriate
contingency plans in place for critical applications that could affect the
Partnership's operations. To date, the General Partner is not aware of any
external agent with a Year 2000 issue that would materially impact the
Partnership's results of operations, liquidity or capital resources. However,
the General Partner has no means of ensuring that external agents will be Year
2000 compliant. The General Partner does not believe that the inability of
external agents to complete their Year 2000 resolution process in a timely
manner will have a material impact on the financial position or results of
operations of the Partnership. However, the effect of non-compliance by
external agents is not readily determinable.
Other
Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Such forward-looking statements speak only as of the date
of this quarterly report. The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates of revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On March 4, 1994, an employee of an affiliate of the General Partner who worked
at The Pines of Northwest Crossing Apartments ("Plaintiff") allegedly sustained
personal injuries during the ordinary course of business. The Plaintiff
remained out of work until March 24, 1994. The Plaintiff alleges that upon his
return back to work, he was terminated in retaliation for having filed a
worker's compensation claim. The Plaintiff seeks actual damages, exemplary
damages, attorney's fees and court costs. A settlement was reached with the
plaintiff and the liability was paid during the second quarter of 1998.
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, the General Partner and several of their affiliated
partnerships and corporate entities. The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships which are named as nominal defendants, challenging the
acquisition by Insignia Financial Group, Inc. ("Insignia") and entities which
were, at the time, affiliates of Insignia ("Insignia Affiliates") of interests
in certain general partner entities, past tender offers by Insignia Affiliates
to acquire limited partnership units, the management of partnerships by Insignia
Affiliates as well as a recently announced agreement between Insignia and AIMCO.
The complaint seeks monetary damages and equitable relief, including judicial
dissolution of the Partnership. The General Partner believes the action to be
without merit, and intends to vigorously defend it. On June 25, 1998, the
General Partner filed a motion seeking dismissal of the action. In lieu of
responding to the motion, the plaintiffs have filed an amended complaint. The
General Partner has filed demurrers to the amended complaint which are scheduled
to be heard on January 8, 1999 The General Partner believes the action to be
without merit, and intends to vigorously defend it.
On July 30, 1998 certain entities claiming to own limited partnership interests
in certain limited partnerships whose general partners were, at the time,
affiliates of Insignia filed a complaint entitled Everest Properties LLC. v.
Insignia Financial Group, Inc. in the Superior Court of the State of California,
County of Los Angeles. The action involves 44 real estate limited partnerships
(including the Partnership) in which the plaintiffs allegedly own interests and
which Insignia Affiliates allegedly manage or control (the "Subject
Partnerships"). The complaint names as defendants Insignia, several Insignia
Affiliates alleged to be managing partners of the defendant limited
partnerships, the Partnership and the General Partner. Plaintiffs allege that
they have requested from, but have been denied by each of the Subject
Partnerships, lists of their respective limited partners for the purpose of
making tender offers to purchase up to 4.9% of the limited partner units of each
of the Subject Partnerships. The complaint also alleges that certain of the
defendants made tender offers to purchase limited partner units in many of the
Subject Partnerships, with the alleged result that plaintiffs have been deprived
of the benefits they would have realized from ownership of the additional units.
The plaintiffs assert eleven causes of action, including breach of contract,
unfair business practices, and violations of the partnership statutes of the
states in which the Subject Partnerships are organized. Plaintiffs seek
compensatory, punitive and treble damages. The General Partner filed an answer
to the complaint on September 15, 1998. The General Partner believes the
claims to be without merit and intends to defend the action vigorously.
In July 1998, a limited partner of the Partnership commenced an action in the
Circuit Court for Jackson County, Missouri entitled Bond Purchase LLC v. Angeles
Partners IX, et al. The complaint claims that the Partnership and an affiliate
of the General Partner breached certain contractual and fiduciary duties
allegedly owed to the claimant and seeks damages and injunctive relief. The
General Partner believes the claims to be without merit and intends to
vigorously defend the claims.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature. The General Partner of the Partnership believes
that all such pending or outstanding litigation will be resolved without a
material adverse effect upon the business, financial condition or operations of
the Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as and exhibit to this
report.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter ended September
30, 1998.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
ANGELES PARTNERS IX
By: Angeles Realty Corporation
Its General Partner
By: /s/Patrick Foye
Patrick Foye
Executive Vice President
By: /s/Timothy R. Garrick
Timothy R. Garrick
Vice President - Accounting
(Duly Authorized Officer)
Date: November 13, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Angeles Partners IX 1998 Third Quarter 10-QSB and is qualified in its
entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000313499
<NAME> ANGELES PARTNERS IX
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 704
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 37,403
<DEPRECIATION> 24,109
<TOTAL-ASSETS> 15,544
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 19,601
0
0
<COMMON> 0
<OTHER-SE> (4,841)
<TOTAL-LIABILITY-AND-EQUITY> 15,544
<SALES> 0
<TOTAL-REVENUES> 5,646
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6,336
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,296
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (690)
<EPS-PRIMARY> (34.19)<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
