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 September 30, 1996
-------------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________ to_____________
Commission file number 0-9783
-------
MCNEIL REAL ESTATE FUND XI, LTD.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 94-2669577
- --------------------------------------------------------------------------------
(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 (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>
MCNEIL REAL ESTATE FUND XI, LTD.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- ------- --------------------
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
--------------- --------------
ASSETS
- -------
Real estate investments:
<S> <C> <C>
Land..................................................... $ 4,572,654 $ 5,938,464
Buildings and improvements............................... 48,473,140 58,408,551
-------------- -------------
53,045,794 64,347,015
Less: Accumulated depreciation.......................... (31,974,197) (37,095,184)
-------------- -------------
21,071,597 27,251,831
Asset held for sale......................................... 5,528,732 -
Cash and cash equivalents................................... 2,451,606 2,030,544
Cash segregated for security deposits....................... 396,743 386,125
Accounts receivable......................................... 264,200 31,327
Prepaid expenses and other assets........................... 141,049 276,785
Escrow deposits............................................. 1,282,182 904,523
Deferred borrowing costs (net of accumulated
amortization of $556,299 and $507,241 at
September 30, 1996 and December 31, 1995,
respectively)............................................ 1,537,765 1,627,629
-------------- -------------
$ 32,673,874 $ 32,508,764
============== =============
LIABILITIES AND PARTNERS' DEFICIT
- ---------------------------------
Mortgage notes payable, net................................. $ 39,340,615 $ 39,684,440
Accounts payable............................................ 15,966 62,056
Accrued interest............................................ 299,610 302,329
Accrued property taxes...................................... 551,187 100,959
Accrued expenses............................................ 312,490 356,025
Deferred gain - storm damage................................ 67,016 67,016
Payable to affiliates - General Partner..................... 3,036,529 2,851,851
Security deposits and deferred rental revenue............... 442,182 407,466
-------------- -------------
44,065,595 43,832,142
-------------- -------------
Partners' deficit:
Limited partners - 159,813 limited partnership units
authorized and outstanding at September 30,
1996 and December 31, 1995............................. (4,465,137) (4,983,492)
General Partner.......................................... (6,926,584) (6,339,886)
-------------- -------------
(11,391,721) (11,323,378)
-------------- -------------
$ 32,673,874 $ 32,508,764
============== =============
</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 XI, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, September 30,
--------------------------------- ---------------------------------
1996 1995 1996 1995
-------------- --------------- -------------- --------------
Revenue:
<S> <C> <C> <C> <C>
Rent revenue.................. $ 3,728,509 $ 3,612,685 $ 11,057,876 $ 10,626,590
Interest...................... 39,102 34,841 97,731 101,357
------------- ------------- ------------- -------------
Total revenue............... 3,767,611 3,647,526 11,155,607 10,727,947
------------- ------------- ------------- -------------
Expenses:
Interest...................... 947,022 968,784 2,856,971 2,922,581
Depreciation.................. 612,367 628,271 1,861,120 1,843,045
Property taxes................ 216,796 240,570 655,978 721,710
Personnel expenses............ 439,231 434,980 1,320,836 1,336,845
Utilities..................... 301,626 292,631 818,198 782,775
Repair and maintenance........ 514,782 456,882 1,489,725 1,358,462
Property management
fees - affiliates........... 184,227 179,532 548,619 531,451
Other property operating
expenses.................... 199,279 237,267 589,037 682,065
General and administrative.... 81,059 261,894 162,950 316,988
General and administrative -
affiliates.................. 75,804 113,309 269,655 385,105
------------- ------------- ------------- -------------
Total expenses.............. 3,572,193 3,814,120 10,573,089 10,881,027
------------- ------------- ------------- -------------
Net income (loss)................ $ 195,418 $ (166,594) $ 582,518 $ (153,080)
============= ============= ============= =============
Net income (loss) allocable to
limited partners.............. $ 68,817 $ (158,264) $ 518,355 $ (145,426)
Net income (loss) allocable
to General Partner............ 126,601 (8,330) 64,163 (7,654)
------------- ------------- ------------- -------------
Net income (loss)................ $ 195,418 $ (166,594) $ 582,518 $ (153,080)
============= ============= ============= =============
Net income (loss) per limited
partnership unit.............. $ .43 $ (.99) $ 3.24 $ (.91)
============= ============= ============= =============
</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 XI, LTD.
STATEMENTS OF PARTNERS' DEFICIT
(Unaudited)
For the Nine Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
Total
General Limited Partners'
Partner Partners Deficit
--------------- --------------- ---------------
<S> <C> <C> <C>
Balance at December 31, 1994.............. $ (5,484,195) $ (5,275,373) $ (10,759,568)
Net loss.................................. (7,654) (145,426) (153,080)
Management Incentive Distribution......... (614,890) - (614,890)
------------- ------------- -------------
Balance at September 30, 1995............. $ (6,106,739) $ (5,420,799) $ (11,527,538)
============= ============= =============
Balance at December 31, 1995.............. $ (6,339,886) $ (4,983,492) $ (11,323,378)
Net income................................ 64,163 518,355 582,518
Management Incentive Distribution......... (650,861) - (650,861)
------------- ------------- -------------
Balance at September 30, 1996............. $ (6,926,584) $ (4,465,137) $ (11,391,721)
============= ============= =============
</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 XI, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-------------------------------------------
1996 1995
------------------- -----------------
<S> <C> <C>
Cash flows from operating activities:
Cash received from tenants........................ $ 10,941,390 $ 10,662,495
Cash paid to suppliers............................ (4,324,633) (3,928,592)
Cash paid to affiliates........................... (1,127,238) (1,854,398)
Interest received................................. 97,731 101,357
Interest paid..................................... (2,756,487) (2,734,299)
Property taxes paid............................... (685,700) (735,411)
----------------- --------------
Net cash provided by operating activities............ 2,145,063 1,511,152
----------------- --------------
Net cash used in investing activities:
Additions to real estate investments.............. (1,209,618) (1,180,072)
----------------- --------------
Cash flows from financing activities:
Principal payments on mortgage notes
payable......................................... (357,164) (315,620)
Management Incentive Distribution................. (157,219) -
----------------- --------------
Net cash used in financing activities................ (514,383) (315,620)
----------------- --------------
Net decrease in cash and cash equivalents............ 421,062 15,460
Cash and cash equivalents at beginning of
period............................................ 2,030,544 1,932,351
----------------- --------------
Cash and cash equivalents at end of period........... $ 2,451,606 $ 1,947,811
================= ==============
</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 XI, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Income (Loss) to Net Cash Provided by
Operating Activities
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-----------------------------------------
1996 1995
---------------- -----------------
<S> <C> <C>
Net income (loss).................................... $ 582,518 $ (153,080)
--------------- ----------------
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation...................................... 1,861,120 1,843,045
Amortization of discounts on mortgage
notes payable................................... 13,339 16,251
Amortization of deferred borrowing costs.......... 89,864 109,124
Changes in assets and liabilities:
Cash segregated for security deposits........... (10,618) (4,473)
Accounts receivable............................. (232,873) 2,019
Prepaid expenses and other assets............... 135,736 201,407
Escrow deposits................................. (377,659) (429,489)
Accounts payable................................ (46,090) (1,868)
Accrued interest................................ (2,719) 62,907
Accrued property taxes.......................... 450,228 547,371
Accrued expenses................................ (43,535) 207,482
Payable to affiliates - General Partner......... (308,964) (937,842)
Security deposits and deferred rental
revenue....................................... 34,716 48,298
--------------- --------------
Total adjustments............................. 1,562,545 1,664,232
--------------- --------------
Net cash provided by operating activities............ $ 2,145,063 $ 1,511,152
=============== ==============
</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 XI, LTD.
Notes to Financial Statements
(Unaudited)
September 30, 1996
NOTE 1.
- -------
McNeil Real Estate Fund XI, Ltd. (the "Partnership") was organized June 2, 1980
as a limited partnership under the provisions of the California Uniform Limited
Partnership Act. 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 amended and restated limited
partnership agreement, dated August 6, 1991 (the "Amended Partnership
Agreement"). The principal place of business for the Partnership and for 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 financial position and results of
operations of the Partnership. All adjustments were of a normal recurring
nature. However, the results of operations for the nine months ended September
30, 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 XI, Ltd. c/o McNeil Real Estate Management, Inc.,
Investor Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240.
NOTE 3.
- -------
The Partnership pays property management fees equal to 5% of 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 and leasing services.
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
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 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.
<PAGE>
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 limited
partnership units ("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>
Nine Months Ended
September 30,
----------------------------------------
1996 1995
---------------- ---------------
<S> <C> <C>
Property management fees - affiliates................ $ 548,619 $ 531,451
Charged to general and administrative -
affiliates:
Partnership administration........................ 269,655 385,105
--------------- --------------
$ 818,274 $ 916,556
=============== ==============
Charged to General Partner's deficit:
MID............................................... $ 650,861 $ 614,890
=============== ==============
</TABLE>
NOTE 4.
- -------
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 Rock Creek is currently classified as an asset held for sale, no
depreciation will be recognized effective October 1, 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 of a
portfolio of income-producing real properties. At September 30, 1996, the
Partnership owned eight apartment properties, which are all subject to mortgage
notes.
RESULTS OF OPERATIONS
- ---------------------
Revenue:
Partnership revenues increased by $427,660 or 4% for the period ended September
30, 1996, as compared to the same period last year. Rental revenue increased
$431,286 and $115,824 or 4% and 3% for the nine and three months ended September
30, 1996, respectively. Interest income decreased by $3,626 or 4% for the period
ended September 30, 1996.
Rental revenue for the first nine months of 1996 was $11,057,876 as compared to
$10,626,590 for the same period in 1995. The increase in rental revenue is due
to an increase in the rental rates at all of the Partnership's properties.
Expenses:
Total Partnership expenses decreased by $307,938 or 3% for the period ending
September 30, 1996 as compared to the same period in 1995. Decreases in property
taxes, other operating expenses, and general and administrative affiliates were
offset by increases in repairs and maintenance.
Property tax expense for the nine and three months ended September 30, 1996
decreased by $65,732 or 9% and $23,774 or 10%, respectively, compared to the
same periods in 1995. This is due to decreases in the estimated tax liabilities
at Knollwood, The Park, and The Village.
Repairs and maintenance expense for the nine and three months ended September
30, 1996, increased by $131,263 or 10% and $57,900 or 13%, respectively,
compared to the same periods in 1995. This increase can be attributed to the
replacement of carpeting, which met the Partnership's criteria for
capitalization based on the magnitude of replacements in 1995, but were expensed
in 1996.
Other property operating expense for the nine and three months ended September
30, 1996 decreased by $93,028 or 14% and $37,988 or 16%, respectively. This
decrease is primarily due to a decrease in hazard insurance, with additional
decreases in training and seminars and bad debts in 1996.
General and administrative expenses decreased $154,038 or 49% and $180,835 or
69% for the nine and three months ended September 30, 1996, respectively, as
compared to the same periods in 1995. The decrease is due to costs incurred, by
the Partnership, in the third quarter of 1995 to evaluate and disseminate
information regarding an unsolicited tender offer. The Partnership anticipates
incurring such costs in the fourth quarter of 1996 in response to an additional
unsolicited tender offer, as discussed in Item 5 - Other Information.
<PAGE>
General and administrative - affiliates expenses decreased $115,450 or 30% and
$37,505 or 33% for the nine and three months ended September 30, 1996,
respectively, as compared to the same periods last year. This decrease is due to
the reduction of overhead expenses allocable to the Partnership.
LIQUIDITY AND CAPITAL RESOURCES
The Partnership generated $2,145,063 through operating activities for the period
ending September 30, 1996 as compared to $1,511,152 for the same period in 1995.
This increase is primarily due to the reduction in the cash paid to affiliates.
The Partnership funded $1,209,618 in additions to real estate investments for
the nine months ending September 30, 1996. All of the Partnership's properties
continued capital improvements projects to enhance the value of the properties
so they can remain competitive in the market.
Financing activities included principal payments on mortgage notes of $357,164
and MID payments of $157,219.
Short-term liquidity:
At September 30, 1996, the Partnership held cash and cash equivalents of
$2,451,606. The General Partner considers this level of cash reserves to be
adequate to meet the Partnership's operating needs. The Partnership resumed MID
payments during the third quarter of 1996 and will continue making MID payments
as long as the Partnership's properties continue to perform as projected. The
General Partner believes that anticipated operating results for 1996 will be
sufficient to fund the Partnership's budgeted $1.3 million in capital
improvements for 1996 and to repay the current portion of the Partnership's
mortgage notes.
During 1996, the Partnership is faced with a mortgage maturity on The Village
totaling approximately $2,564,000. It is management's policy to negotiate
extensions or arrange refinancings for the mortgage notes due. The Partnership
is arranging financing from an affiliate partnership to retire this mortgage
upon maturity.
Long-term liquidity:
While the present outlook for Partnership's liquidity is favorable, market
conditions may change and property operations can deteriorate. In that event,
the Partnership would require other sources of working capital. No such other
sources have been identified, and the Partnership has no established lines of
credit. Other possible actions to resolve working capital deficiencies include
refinancing or renegotiating terms of existing loans, deferring major capital
expenditures on Partnership properties except where improvements are expected to
enhance the competitiveness or marketability of the properties, or arranging
working capital support from affiliates. No affiliate support has been required
in the past, and there is no assurance that support would be provided in the
future, since neither the General Partner nor any affiliates have any obligation
in this regard.
<PAGE>
The partnership has determined to begin an orderly liquidation of all the
Partnership's assets. Although there can be no assurance as to the timing of any
liquidation it is anticipated that such liquidation would result in
distributions to the limited partners of the cash proceeds from the sale of the
Partnership's properties, subject to cash reserve requirements, as they are sold
with the last property disposition before December 2001 followed by a
dissolution of the Partnership. In this regard, the Partnership has placed Rock
Creek on the market for sale.
Income allocation 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 nine months ended
September 30, 1996 and 1995, $64,163 and ($7,654), respectively, were allocated
to the General Partner. The limited partners received allocations of net income
of $518,355 and ($145,426) for the nine months ended September 30, 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 the limited partners will remain suspended for the
foreseeable future. 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. A distribution of
$650,861 for the MID has been accrued by the Partnership for the nine month
period ending September 30, 1996 for the General Partner.
PART II. - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
- ------- -----------------
McNeil Pacific Investors Fund 1972, Ltd., McNeil Real Estate Fund V, Ltd.,
McNeil Real Estate Fund IX, Ltd., McNeil Real Estate Fund X, Ltd., McNeil Real
Estate Fund XI, Ltd., McNeil Real Estate Fund XIV, Ltd., McNeil Real Estate Fund
XV, Ltd., McNeil Real Estate Fund XX, L.P., McNeil Real Estate Fund XXIV, L.P.,
and McNeil Real Estate Fund XXV, L.P. vs. High River Limited Partnership,
Riverdale Investors Corp., Inc., Carl C. Icahn, and Unicorn Associates
Corporation - United States District Court for the Central District of
California, Case No. 96-5680SVW.
On August 12, 1996 High River Limited Partnership ("High River"), a partnership
controlled by Carl C. Icahn, sent a letter to the partnerships referenced above
demanding lists of the names, current residences or business addresses and
certain other information concerning the unitholders of such partnerships. On
August 19, 1996, these partnerships commenced the above action seeking, among
other things, to declare that such partnerships are not required to provide High
River with a current list of unitholders on the grounds that the defendants
commenced a tender offer in violation of the federal securities laws by filing
certain Schedule 13D Amendments on August 5, 1996.
On October 17, 1996, the presiding judge denied the partnerships requests for a
permanent and preliminary injunction to enjoin High River's tender offers and
granted the defendants request for an order directing the partnerships to turn
over current lists of unitholders to High River forthwith. On October 24, 1996,
the partnerships delivered the unitholder lists to High River.
<PAGE>
ITEM 5. OTHER INFORMATION
- ------- -----------------
On September 20, 1996, High River announced that it had commenced a tender offer
for any and all units of the Partnership at $104.50 per unit. The tender was
originally due to expire October 18, 1996; however, this offer has been extended
until November 22, 1996.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- ------- --------------------------------
(a) Exhibits.
Exhibit
Number Description
------- -----------
4. Amended and Restated Limited Partnership
Agreement dated as of August 6, 1991.
(Incorporated by reference to the Quarterly
Report on Form 10-Q, for the quarter ended
June 30, 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
159,813 limited partnership units
outstanding in 1996 and 1995, respectively.
27. Financial Data Schedule for the quarter
ended September 30, 1996.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during
the quarter ended September 30, 1996.
<PAGE>
McNEIL REAL ESTATE FUND XI, 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 XI, Ltd.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
November 14, 1996 By: /s/ Donald K. Reed
- ----------------- ---------------------------------------
Date Donald K. Reed
President and Chief Executive Officer
November 14, 1996 By: /s/ Ron K. Taylor
- ----------------- ---------------------------------------
Date Ron K. Taylor
Acting Chief Financial Officer of
McNeil Investors, Inc.
November 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 2,451,606
<SECURITIES> 0
<RECEIVABLES> 264,200
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 53,045,794
<DEPRECIATION> (31,974,197)
<TOTAL-ASSETS> 32,673,874
<CURRENT-LIABILITIES> 0
<BONDS> 39,340,615
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 32,673,874
<SALES> 11,057,876
<TOTAL-REVENUES> 11,155,607
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 7,716,118
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,856,971
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 582,518
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 582,518
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
