<PAGE> 1
EXHIBIT INDEX ON PAGE 14
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
/XX/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly 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: 1-6064
ALEXANDER'S, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 51-0100517
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification Number)
PARK 80 WEST, PLAZA II, SADDLE BROOK, NEW JERSEY 07663
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(201)587-8541
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
/X/ Yes / / No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
/ / Yes / / No
As of May 8, 1996 there were 5,000,850 common shares
outstanding.
Page 1 of 15
<PAGE> 2
ALEXANDER'S, INC.
INDEX
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
Consolidated Balance Sheets as of March 31, 1996
and December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Operations for the Three Months
Ended March 31, 1996 and March 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Cash Flows for the Three Months
Ended March 31, 1996 and March 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Exhibit 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
</TABLE>
Page 2 of 15
<PAGE> 3
PART I. FINANCIAL INFORMATION
ALEXANDER'S, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31, MARCH 31, DECEMBER 31,
1996 1995 1996 1995
--------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS: LIABILITIES AND DEFICIENCY IN NET ASSETS:
Liabilities:
------------
Real estate, at cost: Debt $187,724 $182,883
Land $ 46,082 $ 46,082 Amounts due to Vornado Realty Trust and
Buildings, leaseholds and Improvements its affiliate 7,676 8,482
(including $34,996 of construction Liability for postretirement
in progress at December 31, 1995) 112,528 96,238 healthcare benefits 15,022 15,526
Capitalized expenses and predevelopment Accounts payable and accrued liabilities 11,961 4,389
costs 35,313 33,165 Other liabilities from discontinued
--------- --------- operations 5,688 5,797
Total 193,923 175,485 Minority interest 600 600
Less accumulated depreciation and --------- ---------
amortization (37,964) (37,794) TOTAL LIABILITIES 228,671 217,677
--------- --------- --------- ---------
155,959 137,691
Investment in unconsolidated joint Commitments and contingencies
venture 11,377 12,744 Deficiency in Net Assets:
--------- --------- -------------------------
Common stock; $1.00 par value per share;
Real estate, net 167,336 150,435 authorized, 10,000,000 shares;
Cash and cash equivalents 8,156 8,471 issued 5,173,450 5,174 5,174
Restricted cash 13,715 16,905 Additional capital 24,843 24,843
Accounts receivable, net of allowance for Deficit (48,655) (48,193)
doubtful accounts of $147 in each period 444 180 --------- ---------
Receivable arising from the straight-lining (18,638) (18,176)
of rents, net 4,612 4,228 Less treasury shares, 172,600 shares at
Deferred lease and other expense 8,760 10,460 cost (960) (960)
Deferred debt expense 3,832 4,341 --------- ---------
Other assets 2,218 3,521 Total deficiency in net assets (19,598) (19,136)
--------- --------- --------- ---------
TOTAL LIABILITIES AND DEFICIENCY
TOTAL ASSETS $209,073 $198,541 IN NET ASSETS $209,073 $198,541
========= ========= ========= =========
</TABLE>
See notes to consolidated financial statements.
Page 3 of 15
<PAGE> 4
ALEXANDER'S, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share amounts)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
-----------------------------------
MARCH 31, MARCH 31,
1996 1995
--------- ---------
<S> <C> <C>
Revenues:
Property rentals $ 2,771 $ 2,365
Expense reimbursements 367 285
Equity in income of unconsolidated
joint venture 1,267 773
------- -------
Total revenues 4,405 3,423
------- -------
Expenses:
Operating (including management fee
of $210 and $70 to Vornado) 745 515
General and administrative (including
management fee of $540 and $180 to Vornado) 1,160 1,036
Depreciation and amortization 267 464
Reorganization costs - 1,616
------- -------
Total expenses 2,172 3,631
------- -------
Operating income 2,233 (208)
Interest and debt expense
(including interest on loan from Vornado) (3,317) (2,739)
Interest and other income, net 622 97
------- -------
Loss before reversal of deferred taxes (462) (2,850)
Reversal of deferred taxes - 1,406
------- -------
NET LOSS $ (462) $(1,444)
======= =======
Net Loss per share $ (.09) $ (.29)
====== ======
Weighted average number of common
shares outstanding during period 5,000,850 5,000,850
========= =========
</TABLE>
See notes to consolidated financial statements.
Page 4 of 15
<PAGE> 5
ALEXANDER'S, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED
-----------------------------------
MARCH 31, MARCH 31,
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $ (462) $ (1,444)
Adjustments to reconcile net (loss) to net
cash provided by/(used in) operations:
Depreciation and amortization
(including debt issuance costs) 776 1,660
Straight-lining of rental income (384) (197)
Equity in income of unconsolidated joint
venture (net of distributions of
$2,634 in 1996) 1,367 (773)
Change in assets and liabilities:
Accounts receivable (264) (21)
Note receivable - 4,550
Amounts due to Vornado Realty Trust and its affiliate (532) 60
Liability for postretirement healthcare benefits (504) 89
Accounts payable and accrued liabilities (21) (1,593)
Other liabilities from discontinued operations (109) (26,713)
Other 1,181 82
-------- --------
Net cash provided by/(used in) operating activities 1,048 (24,300)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate (9,394) (3,691)
Cash restricted for construction financing (72) (6,000)
Cash restricted for operating liabilities 3,262 (15,014)
-------- --------
Net cash used in investing activities (6,204) (24,705)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of debt 5,056 121,631
Debt repayments (215) (39,552)
Deferred debt expense - (5,241)
-------- --------
Net cash provided by financing activities 4,841 76,838
-------- --------
Net (decrease) increase cash and cash equivalents (315) 27,833
Cash and cash equivalents at beginning of period 8,471 2,363
-------- --------
Cash and cash equivalents at end of period $ 8,156 $ 30,196
======== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash payments for interest (including capitalized
interest of $2,240 and $993) $ 5,048 $ 4,276
======== ========
</TABLE>
See notes to consolidated financial statements.
Page 5 of 15
<PAGE> 6
ALEXANDER'S, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. CONSOLIDATED FINANCIAL STATEMENTS
The consolidated balance sheet as of March 31, 1996, the consolidated
statements of operations for the three months ended March 31, 1996 and
March 31, 1995, and the consolidated statements of cash flows for the
three months ended March 31, 1996 and March 31, 1995 are unaudited. In
the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial
position, results of operations and changes in cash flows at March 31,
1996 and March 31, 1995 have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. These condensed
consolidated financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's 1995
Annual Report to Shareholders. The results of operations for the period
ended March 31, 1996 are not necessarily indicative of the operating
results for the full year.
2. RELATED PARTY TRANSACTIONS
Under a management and development agreement (the "Management
Agreement") with Vornado Realty Trust ("Vornado"), Alexander's incurred
management fees of $2,530,000 in the three months ended March 31, 1996,
of which $1,443,000 represents fees related to the completion of the
redevelopment of the Rego Park I property. Management fees of $388,000
were paid by the Company to Vornado in the three months ended March 31,
1995.
The fee pursuant to the Management Agreement is in addition to the
leasing fee the Company pays to Vornado under the terms of its leasing
agreement. Subject to the payment of rents by tenants, Vornado is due
$5,592,000 at March 31, 1996 under such agreement. The lease which
Vornado had previously negotiated with Caldor on behalf of the Company
for a portion of its Rego Park I property was rejected in March 1996 in
Caldor's bankruptcy proceedings, resulting in $1,717,000 of previously
recorded leasing fees payable and the corresponding deferred lease
expense being reversed in the quarter ended March 31, 1996.
In addition, the Company incurred interest on its loan from Vornado of
$1,869,000 and $398,000 in the three months ended March 31, 1996 and
1995, of which $654,000 and $43,000 were capitalized.
Page 6 of 15
<PAGE> 7
ALEXANDER'S, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. CONTINGENCIES
Paramus Property
The State of New Jersey has notified the Company of its intention to
condemn approximately 10 acres (one-quarter) of the Paramus property.
The land subject to the condemnation is located on the periphery of the
property and will be used to lessen traffic congestion. The New Jersey
Department of Transportation ("DOT") has made an offer to purchase the
land for $15,400,000 based on an appraisal performed on its behalf. The
Company is negotiating with the DOT to attempt to reach agreement on the
value and other terms. In the event that the Company and the DOT do not
reach agreement, a formal process may be initiated by the DOT pursuant to
which, among other things, a group of independent commissioners will be
appointed by a court to adjudicate the disputed matters.
Lexington Avenue Property
The Company believes that, along with a number of other locations, a
portion of the Lexington Avenue property has been considered by the Port
Authority of New York and New Jersey (the "Port Authority") for the site
of the terminus for a rail link from midtown Manhattan to LaGuardia and
Kennedy Airports. Recent statements by Port Authority officials have
indicated that the rail link between midtown Manhattan and the airports
is not likely to be developed in the foreseeable future. Since the
nature and scope of any plans being considered by the Port Authority, and
whether any such plans would ultimately affect the Lexington Avenue
property, cannot be fully assessed by the Company at this time, it is
impossible to determine the ultimate effect that a taking, or any
uncertainty with respect thereto, would have on the Company's use or
redevelopment of the Lexington Avenue property.
Tax Certiorari Proceedings
The Company is currently negotiating certiorari proceedings with the
City of New York on several of its properties.
Alexander's Department Stores of Valley Stream, Inc. ("ADS of Valley
Stream") is a party to a tax certiorari proceeding against The Board of
Assessors and The Board of Assessment Review of the County of Nassau (the
"Board") for overpayment of taxes on its former Valley Stream store
property during the assessment rolls from 1986 to 1992. In January 1995,
the Supreme Court of Nassau County, New York ruled that ADS of Valley
Stream is entitled to an assessment reduction which would result in a
refund of approximately $10,300,000, (including interest currently
aggregating $3,700,000). Both the Board and the Company have appealed the
Court's decision.
Environmental Matters
The results of a 1993 Phase I environmental study at the Kings Plaza
Shopping Center's ("Center") property show that certain adjacent
properties owned by third parties have experienced petroleum hydrocarbon
contamination. Based on this study and preliminary investigation of the
Center's property and its history, there is potential for contamination
on the property. If contamination is found on the property, the Center
may be required to engage in remediation activities; management is unable
to estimate the financial impact of potential contamination if any is
discovered in the future. If further investigations reveal that there is
contamination on its site, since the Center believes such contamination
would have resulted from activities of third parties, the Center intends
to pursue all available remedies against any of these third parties.
Page 7 of 15
<PAGE> 8
ALEXANDER'S, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company is aware of the presence of asbestos-containing materials
at several of its properties and believes that it manages such asbestos
in accordance with applicable laws. The Company plans to abate or remove
such asbestos as appropriate.
Caldor Corporation ("Caldor")
In September 1995, Caldor, which leases the Fordham Road and Flushing
Properties from the Company, filed for relief under Chapter 11 of the
United States Bankruptcy Code. Property rentals from these two leases
represent approximately 56% of the Company's consolidated revenues for
the year ended December 31, 1995 and approximately 46% of the Company's
consolidated revenues for the three months ended March 31, 1996. Caldor
leased these properties "as is", expended the entire cost of refurbishing
these stores and has not affirmed either of these leases, but continues
to pay rent on both of these locations. The loss of property rental
payments under either of these leases could have a material adverse
effect on the financial condition and results of operations of the
Company.
Caldor was also a lessee for a portion of the Rego Park I property.
Caldor received Bankruptcy Court approval to reject the lease effective
March 18, 1996. The Company will file a claim for damages based on such
rejection.
Page 8 of 15
<PAGE> 9
ALEXANDER'S, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The Company's revenues, which consist of property rentals, tenant expense
reimbursements and equity in income of unconsolidated joint venture were
$4,405,000 in the quarter ended March 31, 1996, compared to $3,423,000 in the
prior year's quarter, an increase of $982,000 or 28.7%. Of this increase (i)
$494,000 was from equity in income of the unconsolidated joint venture (the
Kings Plaza Shopping Center), (ii) $356,000 was from the commencement in March
1996, of rents and paid parking at the Company's Rego Park I property and (iii)
$82,000 was from an increase in operating expenses passed through to tenants.
Operating expenses were $745,000 in the quarter ended March 31, 1996,
compared to $515,000 in the prior year's quarter, an increase of $230,000. Of
this increase (i) $140,000 represented fees under the Management Agreement and
(ii) $90,000 represented higher real estate taxes, maintenance and utility
expenses, which were primarily passed through to tenants.
General and administrative expenses were $1,160,000 in the quarter ended
March 31, 1996, compared to $1,036,000 in the prior year's quarter, an increase
of $124,000. This increase resulted primarily from fees under the Management
Agreement in the quarter ended March 31, 1996, exceeding the prior year's
expenses.
Interest and debt expense was $3,317,000 in the quarter ended March 31,
1996, as compared to $2,739,000 in the prior year's quarter, an increase of
$578,000. This increase was primarily attributable to interest on higher
levels of average debt.
Interest and other income, net was $622,000 in the quarter ended March
31, 1996, compared to $97,000 in the prior year's quarter, an increase of
$525,000. Of this increase, approximately $123,000 was attributable to
interest income earned on higher average cash invested due to increased
borrowings and $402,000 was attributable to other income ($265,000 from the
amortization of deferred gains in connection with the Company's postretirement
healthcare benefits and $137,000 from refunds).
As a result of the Company's intention to elect to be taxed as a REIT
for the year ended December 31, 1995, the deferred tax balance of $1,406,000 at
December 31, 1994 was reversed, resulting in an income tax benefit in the
quarter ended March 1995.
LIQUIDITY AND CAPITAL RESOURCES
Three Months Ended March 31, 1996
Cash provided by operating activities of $1,048,000 was comprised of
$1,297,000 from results of operations (net loss of $462,000 offset by non-cash
items of $1,759,000), offset by a net change in operating assets and
liabilities of $249,000.
Net cash used in investing activities of $6,204,000 was comprised
primarily of capital expenditures of $9,394,000, offset by the release of cash
restricted for operating liabilities of $3,262,000.
Page 9 of 15
<PAGE> 10
ALEXANDER'S, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS
Net cash provided by financing activities of $4,719,000 was comprised of
proceeds from the issuance of debt of $4,934,000 (net of deferred debt
expense), offset by repayments of debt of $215,000.
Three Months Ended March 31, 1995
Cash used in operating activities of $24,300,000 was comprised of: (i) a
net loss of 1,444,000 less adjustments for non-cash items of $887,000, and (ii)
the payment of liabilities of discontinued operations of $26,713,000, offset by
(iii) the net change in operating assets and liabilities of $2,970,000.
Net cash used in investing activities of $24,705,000 was comprised of
capital expenditures of $3,691,000, cash restricted for construction financing
of $6,000,000 and cash restricted for operating liabilities of $15,014,000.
Net cash provided by financing activities of $76,838,000 was comprised of
proceeds from the issuance of debt of $116,390,000 (net of deferred debt
expense), offset by repayments of debt of $39,552,000.
In connection with the redevelopment of the existing building and the
construction of a multi-level parking structure on its Rego Park I property,
the Company has expended approximately $31,500,000 and expects to expend,
through the second quarter of 1996, up to an additional $8,000,000 to complete
the project. At March 31, 1996, there was $6,600,000 available under a
$60,000,000 construction loan to fund these expenditures with the balance to be
funded from existing cash. The Company estimates that its capital expenditure
requirements for other redevelopment projects will include: (i) the
redevelopment of the Paramus property at a cost of approximately $50,000,000 to
$60,000,000, (ii) the demising of the Kings Plaza Store and installation of
vertical transportation which may have an improvement cost between $10,000,000
and $20,000,000 and (iii) the renovation of the existing former Lexington
Avenue store building principally for retail use at an estimated cost of
approximately $20,000,000 to $25,000,000. The Company is evaluating
alternative development plans for the Lexington Avenue site, which may involve
razing the existing building (rather than renovating it) and/or developing a
large multi-use tower, which will require substantial additional capital to be
expended. While the Company anticipates that financing will be available after
tenants have been obtained for these redevelopment projects, there can be no
assurance that such financing will be obtained or if obtained, that such
financings will be on terms that are acceptable to the Company. In addition, it
is uncertain as to when these projects will commence.
On September 18, 1995, Caldor, which leases the Fordham Road and Flushing
Properties from the Company, filed for relief under Chapter 11 of the United
States Bankruptcy Code. Caldor accounted for approximately 46% of the
Company's consolidated revenues for the three months ended March 31, 1996 and
approximately 56% of the Company's consolidated revenues for the year ended
December 31, 1995. Caldor leased these properties "as is", expended the entire
cost of refurbishing these stores and continues to pay rent on both of these
locations. The loss of property rental payments under either of these leases
could have a material adverse effect on the financial condition and results of
operations of the Company.
Page 10 of 15
<PAGE> 11
ALEXANDER'S, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Caldor was also a lessee for a portion of the Rego Park I property.
Caldor received Bankruptcy Court approval to reject the lease effective March
18, 1996. The Company will file a claim for damages based on such rejection.
Alexander's current operating properties (five of its nine properties) do
not generate sufficient cash flow to pay all of its expenses. The Company's
four non-operating properties (Lexington Avenue, Paramus, the Kings Plaza Store
and Rego Park II) are in various stages of redevelopment. As rents commence
from a portion of the redevelopment properties, the Company expects that cash
flow will become positive.
The Company estimates that the fair market values of its assets are
substantially in excess of their historical cost and that there is additional
borrowing capacity. Alexander's continues to evaluate its needs for capital
which may be raised through (a) property specific or corporate borrowing, (b)
the sale of securities and (c) asset sales.
In December 1995, the Company completed a tax certiorari proceeding with
the City of New York regarding the Kings Plaza Shopping Center property. As a
result of this settlement, $3,000,000 of the $8,000,000 held in escrow for
unpaid real estate taxes was released during the quarter ended March 31, 1996
and the balance is expected to be released in the near future.
In addition, the Company may receive the proceeds from other tax
certiorari and/or condemnation proceedings -- see Note 3 - Contingencies -
"Paramus Property" and "Tax Certiorari Proceedings".
Although there can be no assurance, the Company believes that these cash
sources will be adequate to fund cash requirements until its operations
generate adequate cash flow.
Page 11 of 15
<PAGE> 12
ALEXANDER'S, INC.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits: The following exhibits are filed with this
Quarterly Report on Form 10-Q.
27 Financial Data Schedule
(b) Reports on Form 8-K
During the quarter ended March 31, 1996, Alexander's, Inc.
filed the report on Form 8-K described below.
<TABLE>
<CAPTION>
Period Covered:
(Date of Earliest
Event Reported) Items Reported Date of Report
----------------- -------------- --------------
<S> <C> <C>
December 29, 1995 5. Other events - re: January 3, 1996
Completion of a tax
certiorari proceeding
with the City of New
York regarding the Kings
Plaza Shopping Center
</TABLE>
Page 12 of 15
<PAGE> 13
ALEXANDER'S, INC.
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.
ALEXANDER'S, INC.
------------------------------------
(Registrant)
Date: May 9, 1996 /s/ Joseph Macnow
------------------------------------
JOSEPH MACNOW
Vice President - Chief Financial
Officer and Chief Accounting Officer
Page 13 of 15
<PAGE> 14
ALEXANDER'S, INC.
EXHIBIT INDEX
<TABLE>
<CAPTION>
PAGE NUMBER IN
SEQUENTIAL
EXHIBIT NO. NUMBERING
----------- --------------
<S> <C> <C>
27 Financial Data Schedule 15
</TABLE>
Page 14 of 15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Company's unaudited financial statements for the three months ended March 31,
1996 and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 8,156
<SECURITIES> 0
<RECEIVABLES> 591
<ALLOWANCES> (147)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 205,300
<DEPRECIATION> (37,964)
<TOTAL-ASSETS> 209,073
<CURRENT-LIABILITIES> 0
<BONDS> 187,724
0
0
<COMMON> 5,174
<OTHER-SE> (24,772)
<TOTAL-LIABILITY-AND-EQUITY> 209,073
<SALES> 0
<TOTAL-REVENUES> 4,405
<CGS> 0
<TOTAL-COSTS> 745
<OTHER-EXPENSES> 805
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,317
<INCOME-PRETAX> (462)
<INCOME-TAX> 0
<INCOME-CONTINUING> (462)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (462)
<EPS-PRIMARY> .09
<EPS-DILUTED> .09
</TABLE>
