U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
-----------------------------------------------
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
---------------------------------------------------
For Quarter Ended March 31,1996
--------------
Commission File Number 1 - 7094
--------
EASTGROUP PROPERTIES
----------------------------------------------------------
(Exact name of Registrant specified in its charter)
Maryland 13-2711135
- ------------------------------- ---------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
300 One Jackson Place
188 East Capitol Street
P.O. Box 22728
Jackson, Mississippi 39201-2195
- ---------------------------------------- ------------------
(Address of principal executive offices) Zip Code
Issuer's telephone number, including area code (601) 354-3555
---------------
- -----------------------------------------------------------------
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.
YES X NO
--------- ----------
4,245,083 shares of beneficial interest ($1.00 par value) were
outstanding at May 14, 1996.
EASTGROUP PROPERTIES
FORM 10-Q
TABLE OF CONTENTS
FOR THE QUARTER ENDED MARCH 31, 1996
- -----------------------------------------------------------------
Pages
Part I. Financial Information
Item 1. Consolidated financial statements
Consolidated balance sheets, March 31, 1996 3
and December 31, 1995
Consolidated statements of income for the
three months ended March 31, 1996 and 1995 4
Consolidated statements of cash flow for the
three months ended March 31, 1996 and 1995 5
Consolidated statements of changes in
shareholders' equity for the three months 6
ended March 31, 1996 and 1995
Notes to consolidated financial statements 7
Item 2. Management's discussion and analysis of
financial condition and results of operations 9
CONSOLIDATED BALANCE SHEETS
(In thousands, except per
share data)
March 31, December 31,
1996 1995
------------ ------------
(Unaudited)
Assets
Real estate properties
Industrial $ 72,161 $ 71,870
Office Buildings 34,261 34,076
Apartments 46,601 49,658
------------ ------------
153,023 155,604
Less accumulated depreciation (19,385) (19,206)
------------ ------------
133,638 136,398
Mortgage loans 6,047 6,008
Land and land purchase-leasebacks 1,327 1,327
Investment in real estate
investment trusts 11,906 10,787
Cash and cash equivalents 144 26
Other assets 4,344 3,409
------------ ------------
$ 157,406 $ 157,955
============ ============
Liabilities and Shareholders' Equity
Liabilities
Mortgage notes payable $ 63,747 $ 67,203
Notes payable to banks 6,040 4,359
Accounts payable and accrued expenses 1,308 2,096
Minority interests in joint ventures 907 909
Other liabilities 559 488
------------ ------------
72,561 75,055
------------ ------------
Shareholders' Equity
Shares of beneficial interest, par
value $1.00 per share; authorized
10,000,000 shares; issued 4,245,083
shares in 1996 and 4,231,656 in 1995 4,245 4,232
Additional paid-in-capital 68,586 68,344
Undistributed earnings 10,191 9,657
Unrealized gain on securities 1,823 667
------------ ------------
84,845 82,900
------------ ------------
$ 157,406 $ 157,955
============ ============
See accompanying notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
--------------------------
1996 1995
----------- ----------
Revenues
Income from real estate operations $ 6,853 $ 6,895
Land rents 52 80
Equity in earnings of real estate
investment trust 40 9
Interest:
Mortgage loans 246 276
Other 221 23
----------- ----------
7,412 7,283
----------- ----------
Expenses
Operating expenses from
real estate operations 2,741 2,750
Interest expense 1,527 1,507
Depreciation and amortization 1,424 1,337
Minority interests in joint ventures 32 73
General and administrative expenses 512 526
----------- ----------
6,236 6,193
----------- ----------
Income before gain on investments 1,176 1,090
----------- ----------
Gain on investments
Real estate 1,353 412
----------- ----------
Net Income $ 2,529 $ 1,502
=========== ==========
Net Income per share of
beneficial interest $ .60 $ .36
=========== ==========
Weighted average shares outstanding 4,235 4,222
=========== ==========
See accompanying notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
(In thousands)
Three Months Ended
March 31,
--------------------------
1996 1995
----------- ----------
Operating Activities
Net income $ 2,529 $ 1,502
Adjustments to reconcile
net income to net cash provided
by operating activities:
Depreciation and amortization 1,424 1,337
Gain on investments, net (1,353) (412)
Other - (26)
Changes in operating assets
and liabilities:
Accrued income and other assets (73) 604
Accrued payable, accrued expenses
and prepaid rent (631) 120
----------- ----------
Net cash provided by
operating activities 1,896 3,125
----------- ----------
Investing Activities
Payments on mortgage loans receivable - 26
Sale of real estate investments 4,146 862
Purchases of real estate improvements (1,249) (515)
Return of capital dividends - 87
Change in other assets and
other liabilities (1,033) (553)
----------- ----------
Net cash provided by (used in)
investing activities 1,864 (93)
----------- ----------
Financing Activities
Proceeds from bank borrowings 5,119 4,592
Principal payments on bank borrowings (3,438) (5,511)
Principal payments on mortgage notes
payable and improvement bonds (3,456) (229)
Distributions paid to shareholders (1,995) (1,900)
Proceeds from issuance of stock 128 -
----------- ----------
Net cash used in financing activities (3,642) (3,048)
----------- ----------
Increase (Decrease) in cash and
cash equivalents 118 (16)
Cash and cash equivalents at
beginning of period 26 301
----------- ----------
Cash and cash equivalent at
end of period $ 144 $ 285
=========== ==========
Supplemental Cash Flow Information:
Cash paid for interest 1,434 1,467
See accompanying notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(In thousands, except for per share data)
Three Months Ended
March 31,
---------------------------
1996 1995
----------- ----------
Shares of beneficial interest,
$1.00 par value
Balance at beginning $ 4,232 $ 4,222
Issuance of shares 13 -
----------- ----------
Balance at end of period 4,245 4,222
----------- ----------
Additional paid-in-capital
Balance at beginning 68,344 68,210
Issuance of shares 242 -
----------- ----------
Balance at end of period 68,586 68,210
----------- ----------
Undistributed earnings
Balance at beginning of period 9,657 9,723
Net income 2,529 1,502
Cash dividends declared:
$.47 per share in 1996, and
$.45 per share in 1995 (1,995) (1,900)
----------- ----------
Balance at end of period 10,191 9,325
----------- ----------
Unrealized gain on securities
Balance at beginning of period 667 21
Change in unrealized gain 1,156 -
----------- ----------
Balance at end of period 1,823 21
----------- ----------
Total shareholders' equity $ 84,845 $ 81,778
=========== ==========
See accompanying notes to consolidated financial statements
Notes to Consolidated Financial Statements (Unaudited)
(1) Basis of Presentation
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
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 management,
all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
The financial statements should be read in conjunction with the
annual report and the notes thereto.
(2) Reclassifications
Certain reclassifications have been made in the fiscal 1995
financial statements to conform to the fiscal 1996
classifications.
(3) Subsequent Events
On February 13, 1996, the Trust and Copley Properties, Inc.,
both of which are real estate investment trusts, jointly
announced that they entered into an Agreement and Plan of Merger
under which Copley will be merged into EastGroup. In the merger,
each share of Copley's common stock will be converted into
EastGroup shares of beneficial interest with a value of $15.60.
The value of East Group shares for purposes of calculating the
ratio at which Copley shares will be converted into EastGroup
shares in the merger will be the average of the closing price of
EastGroup shares on the New York Stock Exchange on the 20 trading
days immediately preceding the fifth trading day prior to the
effective date of the merger (the "EastGroup Stock Price");
however, the EastGroup Stock Price will be deemed to equal $20.25
if the average price of EastGroup shares calculated above is less
than or equal to $20.25, and $23.00 if the average price of
EastGroup shares is greater than or equal to $23.00. Copley has
the right, waivable by it, to terminate the merger agreement
without liability if the average closing price of East Group
shares on the New York Stock Exchange on the 20 trading days
immediately preceding the fifth trading day prior to (I) the date
on which the Securities and Exchange Commission declares
EastGroup's Registration Statement with respect to the merger
effective or (ii) the date on which Copley's stockholders'
meeting with respect to the merger is held is equal to or less
than $18.25. The merger is subject to several conditions
including approval by the shareholders of both Copley and
EastGroup and registration of the EastGroup shares to be issued
in the merger with the Securities and Exchange Commission. The
shareholders of the Trust and Copley will vote on the merger at
meetings to be held on June 19, 1996. EastGroup presently owns
14.76% of Copley's outstanding shares.
On May 14, 1996, the Trust and LNH REIT, Inc. ("LNH")
jointly announced that LNH's shareholders approved the previously
announced merger of LNH with and into EastGroup-LNH Corporation,
a wholly-owned subsidiary of EastGroup, and that the merger was
consummated immediately after the LNH shareholder meeting. Under
the terms of the merger, each LNH share was converted into the
right to receive 0.3671 EastGroup shares. EastGroup will issue
approximately 618,000 of its shares as a result of the merger.
EASTGROUP PROPERTIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
(Comments are for the balance sheet dated March 31, 1996,
compared to December 31, 1995.)
Real estate properties decreased $2,581,000 during the first
quarter of 1996, primarily as a result of the sale of the
Garden Villa Apartments on January 31, 1996 with a basis of
$3,830,000. This decrease was offset by capital improvements of
$1,249,000 on existing Trust properties. Accumulated depreciation
increased $179,000 during the first quarter of 1996 due to
depreciation expense of $1,293,000, offset by the sale of the
Garden Villa Apartments with accumulated depreciation of
$1,114,000.
Mortgage loans receivable increased $39,000 during the first
quarter of 1996. This increase in mortgage loans receivable was
the result of amortization of loan discounts of $34,000 and the
advance on mortgage loans of $39,000 offset by principal payments
of $34,000.
Investments in real estate investment trusts increased from
$10,787,000 at December 31, 1995 to $11,906,000 at March 31,
1996. During the first quarter of 1996, the Trust recognized
$40,000 of equity in earnings of LNH, offset by $77,000 of LNH
dividends received. The Trust also recognized an unrealized gain
of $1,156,000 recorded on the Trust's available-for-sale
securities (Copley) in accordance with Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments
in Debt and Equity Securities."
Mortgage notes payable decreased $3,456,000 during the first
quarter of 1996, as a result of regularly scheduled principal
repayments of $324,000 and the repayment of the $3,132,000 first
mortgage on the Garden Villa Apartments sold January 31, 1996.
Notes payable to banks increased from $4,359,000 at December
31, 1995 to $6,040,000 at March 31, 1996. As of March 31, 1996,
the acquisition line had a balance of $2,100,000 and the working
capital line had a balance of $3,940,000. The working capital
line matured April 30, 1996 and was renewed with an interest rate
of LIBOR plus 2%, monthly interest and a maturity date of May 30,
1996. The bank has verbally agreed to increase the working
capital line to $20,000,000 and to change the interest rates on
the working capital line and the acquisition line to LIBOR plus
1.85%.
Unrealized gain (loss) on securities increased $1,156,000 as
a result of unrealized gain recorded on the Trust's investment in
Copley in accordance with Statement of Financial Accounting
Standards No. 115 "Accounting for Certain Investments in Debt and
Equity Securities".
Undistributed earnings increased from $9,657,000 at December
31, 1995 to $10,191,000 at March 31, 1996, as a result of net
income for financial reporting purposes of $2,529,000 exceeding
dividends of $1,995,000.
RESULTS OF OPERATIONS
(Comments are for the three months ended March 31, 1996, compared
to the three months ended March 31, 1995.)
Net income for the three months ended March 31,1996 was
$2,529,000 ($.60 per share), compared to net income for the three
months ended March 31, 1995 of $1,502,000 ($.36 per share).
Income before gains on investments was $1,176,000 and $1,090,000
for the three months ended March 31, 1996 and 1995. Gains on
investments were $1,353,000 and $412,000 for the three months
ended March 31, 1996 and 1995.
Property net operating income (PNOI) from real estate
properties, defined as income from real estate operations less
property operating expenses (before interest expense and
depreciation) decreased by $33,000 or .8% for the three months
ended March 31,1996 compared to the three months ended March 31,
1995
Property net operating income (loss) and percentage leased
by property type were as follows:
PNOI Percentage Leased
March 31 March 31
------------------ ------------------
1996 1995 1996 1995
------- ------- ------- -------
(In thousands)
Industrial $ 2,072 $ 1,815 98% 97%
Office Buildings 766 900 95% 92%
Apartments 1,281 1,438 94% 97%
Other (7) (8) - -
------- -------
Total PNOI $ 4,112 $ 4,145
======= =======
PNOI from industrial properties increased $257,000 for the
three months ended March 31, 1996, compared to March 31, 1995.
Industrial properties held throughout the three months ended
March 31, 1996 and 1995, showed an increase in PNOI of 11.6% for
1996 compared to 1995. Also contributing to the increase in
PNOI from industrial properties was the acquisition of Jetport
515 Commerce Park ("JetPort 515") in September 1995, and the
development of a 36,400 square foot distribution building at the
Phillips Distribution Center ("Phillips") completed in August
1995. In addition, the increase in PNOI from industrial
properties was due to improved operations at Rampart Distribution
Center ("Rampart"), Venture Distribution Center ("Venture"), Lake
Pointe Business Park ("LakePointe") and Westport Commerce Center
("WestPort"). PNOI from the Trust's office buildings decreased
$134,000 as a result of the sale of the Cascade VII office
building in September 1995 and lower operating income from the
Trust's office building portfolio due to lower occupancy. PNOI
from the Trust's apartment properties decreased $157,000 for 1996
compared to 1995. This decrease is attributable primarily to the
sale of the SunChase Apartments in October 1995 and the Garden
Villa Apartments in January 1996, offset by the acceptance of a
deed in lieu of foreclosure on the EastGate Apartments in April
1995. Apartment properties held throughout the three months
ended March 31, 1996 and 1995, increased $12,000 for 1996
compared to 1995.
Land rents decreased $28,000 primarily as a result of the
sale of the Iroquois land purchase-leaseback investments and the
deed in lieu of foreclosure on the EastGate Apartments land
purchase-leaseback investment.
Equity in earnings from LNH of $40,000 was recorded during
the three months ended March 31, 1996, compared to $9,000 in
1995.
Interest income on mortgage loans decreased $30,000 for the
three months ended March 31, 1996 compared to 1995. The
following is a breakdown of interest income for the three months
ended March 31, 1996 compared to 1995.
March 31
----------------
1996 1995
------ -----
(In thousands)
Interest income from:
25% joint venture $ 4 69
mortgage loans
Motel mortgage loans 108 69
Wrap mortgage loan - 15
Other mortgage loans 134 123
------ -----
$ 246 276
====== =====
Interest income from the 25% joint venture mortgage loans
decreased as a result of repayments of these notes. Interest
income from the motel mortgage loans is recorded as received, and
the notes have been written down to their net realizable value.
Interest income from the wrap mortgage loan decreased as a result
of the foreclosure in April 1995 of the EastGate mortgage.
Interest expense increased $20,000 from March 31, 1996 compared
to March 31, 1995. Average bank borrowings were $3,970,000 and
$27,339,000 for the three months ended March 31, 1996 and 1995.
Bank interest rates at March 31, 1996 and March 31, 1995 were
7.0309% (LIBOR plus 2%) and 9.0% (Prime and Prime plus 1/8%).
Interest expense on real estate properties increased as a result
of the following new mortgages:
Date of Interest Maturity Amount of
Loan Property Rate Date Mortgage
- -------- ---------------------------- ------ ------ -----------
6-27-95 Exchange Distribution Center 8.375% 8-1-05 $ 2,500,000
7-27-95 WestPort Commerce Center 8.000% 8-1-05 3,350,000
8-01-95 LaVista Crossing Apartments 8.688% 9-1-05 5,950,000
9-12-95 JetPort Commerce Park 8.125% 10-1-05 4,000,000
9-29-95 LakePointe Business Park 8.125% 10-1-05 11,000,000
12-15-95 Plantations Apartments 7.625% 12-1-05 5,300,000
-----------
$32,100,000
===========
These increases were offset by the repayment of the Exchange
Drive Warehouse mortgage payable of $565,000 and the JetPort
mortgage payable of $636,000 in September 1995. The Trust repaid
the underlying first mortgage on the Country Club wrap mortgage
note of $2,267,000 on August 3, 1995.
General and administrative expenses decreased $14,000 for
the three months ended March 31, 1996 compared to 1995.
In January 1996, the Trust sold the Garden Villa Apartments
in Seattle, Washington for net cash of $4,148,000 and the
assumption of debt of $3,132,000, and for financial reporting
purposes, the Trust recognized a gain of $1,353,000 on the sale.
In February 1995, the Trust sold its Winchester Ranch land
purchase-leaseback investment for $862,000. For financial
reporting purposes, the Trust recognized a gain of $412,000 on
the sale.
The real estate investment trust industry has recommended
supplemental disclosures concerning capital expenditures, leasing
costs, financing costs and straight-line rents. The Trust
expenses apartment unit turnover cost such as carpet, painting
and small appliances. Capital expenditures for the three months
ended March 31, 1996 and 1995 by category are as follows:
March 31
----------------
1996 1995
----- -----
( In thousands)
Upgrades on acquisitions $ 76 224
Major Renovation 671 16
Tenant improvements:
New tenants 282 171
Renewal tenants 88 23
Other 132 81
----- -----
1,249 515
===== =====
For the three months ended March 31, 1996 and 1995, the
Trust capitalized $200,000 and $206,000 of leasing costs, which
included $106,000 and $204,000 related to new tenants and $94,000
and $2,000 related to renewal tenants, and $11,000 and $39,000 of
financing costs and included these amounts in other assets. For
the three months ended March 31, 1996 and 1995, the Trust
amortized $131,000 and $74,000 related to capitalized leasing
costs and included these amounts in depreciation and amortization
expense, and $83,000 and $56,000 related to financing costs and
included these amounts in interest expense. Leasing costs are
amortized over the life of the lease and financing costs are
amortized over the life of the loan.
Rental income included straight-line rent of $0 and $22,000
for the three months ended March 31, 1996 and 1995. This
resulted from income recorded on the straight line method as
compared to when cash was actually received.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities was $1,896,000 for
the three months ended March 31, 1996. The Trust distributed
$1,995,000 in dividends. Other sources of cash were collections
on mortgage loan receivables, sale of real estate investments and
bank borrowings. Primary uses of cash were for capital
improvements at the various properties, bank debt payments and
mortgage note payments. Total debt at March 31, 1996 is as
follows:
March 31
------------------
1996 1995
------- ------
( In thousands)
Mortgage notes payable - fixed rate $ 63,747 37,052
Mortgage notes payable - floating rate - 2,277
Bank notes payable - floating rate 6,040 27,752
-------- ------
Total debt $ 69,787 67,081
======== ======
At March 31, 1996, the LIBOR rate plus 2% was 7.0309%.
There is also a .25% fee on the unused amount of the $7 million
credit line and the acquisition credit line. The Trust owes
$3,940,000 on the credit line and $2,100,000 on the acquisition
line as of March 31, 1996. On April 30, 1996, the Trust renewed
the working capital line as discussed previously. The Trust also
has a $15,000,000 acquisition line, which bears interest at the
LIBOR rate plus 2% and matures on April 30, 1997. The bank has
agreed verbally to increase the working capital line to
$20,000,000 and change interest rates on the working capital line
and the acquisition line to LIBOR plus 1.85%.
Budgeted capital expenditures for the year ending December
31, 1996 are as follows:
(In thousands)
-------------
Upgrades on acquisitions $ 112
New development costs 1,526
Tenant Improvements:
New Tenants 864
Renewal Tenants 254
Other 978
-------------
$ 3,734
=============
The Trust anticipates that its current cash balance,
operating cash flow and borrowings (including borrowings under
the revolving line of credit) will be adequate to pay the Trust's
(I) operating and administrative expenses, (ii) debt service
obligations, (iii) distributions to shareholders, (iv) capital
improvements, and (v) normal repair and maintenance expenses at
its properties both in the short and long term.
On February 13, 1996, the Trust and Copley Properties, Inc.,
both of which are real estate investment trusts, jointly
announced that they entered into an Agreement and Plan of Merger
under which Copley will be merged into EastGroup. In the merger,
each share of Copley's common stock will be converted into
EastGroup shares of beneficial interest with a value of $15.60.
The value of East Group shares for purposes of calculating the
ratio at which Copley shares will be converted into EastGroup
shares in the merger will be the average of the closing price of
EastGroup shares on the New York Stock Exchange on the 20 trading
days immediately preceding the fifth trading day prior to the
effective date of the merger (the "EastGroup Stock Price");
however, the EastGroup Stock Price will be deemed to equal $20.25
if the average price of EastGroup shares calculated above is less
than or equal to $20.25, and $23.00 if the average price of
EastGroup shares is greater than or equal to $23.00. Copley has
the right, waivable by it, to terminate the merger agreement
without liability if the average closing price of East Group
shares on the New York Stock Exchange on the 20 trading days
immediately preceding the fifth trading day prior to (I) the date
on which the Securities and Exchange Commission declares
EastGroup's Registration Statement with respect to the merger
effective or (ii) the date on which Copley's stockholders'
meeting with respect to the merger is held is equal to or less
than $18.25. The merger is subject to several conditions
including approval by the shareholders of both Copley and
EastGroup and registration of the EastGroup shares to be issued
in the merger with the Securities and Exchange Commission.
EastGroup presently owns 14.76% of Copley's outstanding shares.
The shareholders of the Trust and Copley will vote on the merger
at meetings to be held on June 19, 1996.
On May 14, 1996, the Trust and LNH REIT, Inc. ("LNH")
jointly announced that LNH's shareholders approved the previously
announced merger of LNH with and into EastGroup-LNH Corporation,
a wholly-owned subsidiary of EastGroup, and that the merger was
consummated immediately after the LNH shareholder meeting. Under
the terms of the merger, each LNH share was converted into the
right to receive 0.3671 EastGroup shares. EastGroup will issue
approximately 618,000 of its shares as a result of the merger.
EASTGROUP PROPERTIES
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 6. Exhibits and reports on Form 8-K
Items reported Document Filed Date
-------------- -------------------
None
SIGNATURE
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.
DATED: May 15, 1996 EASTGROUP PROPERTIES
BY: /s/ Diane W. Hayman
----------------------
Diane W. Hayman, CPA
Controller
/s/ N. Keith McKey
----------------------
N. Keith McKey, CPA
Executive Vice President,
Chief Financial Officer
and Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000049600
<NAME> EASTGROUP PROPERTIES
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 153,023
<DEPRECIATION> (19,385)
<TOTAL-ASSETS> 157,406
<CURRENT-LIABILITIES> 0
<BONDS> 69,787
0
0
<COMMON> 4,245
<OTHER-SE> 80,600
<TOTAL-LIABILITY-AND-EQUITY> 157,406
<SALES> 0
<TOTAL-REVENUES> 7,412
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,709
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,527
<INCOME-PRETAX> 2,529
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,176
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,529
<EPS-PRIMARY> .60
<EPS-DILUTED> .60
</TABLE>
