LEPERCQ-ISTEL FUND
1675 Broadway, New York, N.Y. 10019
Telephone:(212) 698-0749
(800) 655-7766
ANNUAL
REPORT
December 31, 1995
This report is issued for the information of shareholders of Lepercq-Istel Fund,
and is not authorized for distribution to prospective investors in the Fund
unless it is preceded or accompanied by a current prospectus.
FEBRUARY 15, 1996
TO OUR SHAREHOLDERS:
For the year 1995 the net asset value of Lepercq-Istel Fund, adjusted for income
and capital-gains distributions, increased by 27.1%. By comparison the average
growth and income fund, as tracked by Lipper Analytical Services, increased by
30.8% and the gain for the Standard and Poor's 500 Index, including dividends,
was 37.6%.
At the occasion of a new year let us briefly revisit the objectives and policies
of your Fund, review the past year, and share with you some of our current
thoughts.
INVESTMENT OBJECTIVES AND POLICIES
Your Fund has a primary investment objective of long-term growth of capital and
a secondary objective of current income. We pursue these objectives through
investing in growth companies when they represent good value. We also invest in
companies that are either undergoing an internal transformation or are well
positioned to benefit from a transformation in the marketplace.
REVIEW OF 1995
Declining interest rates and strong growth of corporate profits positively
impacted both the stock and bond markets. Key beneficiaries were financial,
technology, and consumer growth stocks. Among the laggards were industrial and
smaller-capitalization companies.
During the year, as our search for companies worthy of our investment bore
fruit, we increased your Fund's investment in stocks from 70% to 97%. We
financed these investments by profitably selling most of our U.S. Treasury notes
and bonds and by reducing our cash reserves.
In the course of the year we eliminated our investments in the utility sector,
and reduced our holdings in the energy and industrial sectors. The greatest
redeployment of our cash was to the technology sector. We also added to our
investments in media and initiated positions in real estate investment trusts.
Positively contributing to your Fund's performance were its investments in high-
growth larger-capitalization technology companies, energy companies that are
rapidly increasing their reserve base, financial companies and commercial
services companies with consistent growth rates. Negatively affecting
performance were your Fund's investments in smaller-capitalization companies and
in economically sensitive industrial companies.
OUR CURRENT OUTLOOK
This year is likely to be a challenge for portfolio managers as we negotiate
between lower short-term interest rates, on the one hand, and slowing corporate
profit growth, on the other. The monetary policy environment is generally
favorable. However, shortfalls in corporate profits are likely to lead to
greater volatility in individual stocks. This combination is modestly beneficial
for stocks.
Passage of the telecommunications reform bill significantly improves the
prospects for the telecommunications equipment industry. In an era of increased
competition, telephone companies will invest heavily in equipment to enhance
their revenue, lower their costs, and differentiate their products from their
competitors. In the telecommunications equipment sector we hold positions in
Cisco Systems, Comverse Technology and Nokia and expect to add to this sector.
After five years of a bull market, relative high valuations for stocks also
remain a concern. However, there continues to be a strong flow of money into the
stock market, particularly from 401(k) plans.
Our best guide in traversing these crosscurrents is to stick closely to our
guidelines for picking individual stocks.
Sincerely,
/s/ Andrew Merz Hanson, CFA /s/ Tsering Ngudu
Andrew Merz Hanson, CFA Tsering Ngudu
Co-President Co-President
<TABLE>
<CAPTION>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN LEPERCQ-ISTEL FUND AND THE S&P 500
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/85 12/86 12/87 12/88 12/89 12/90 12/91 12/92 12/93 12/94 12/95
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
LEPERCQ-ISTEL FUND 10,000 10,810 11,000 11,786 14,359 13,399 15,719 16,579 18,825 17,881 $22,724
S&P 500 10,000 11,867 12,490 14,565 19,180 18,586 24,249 26,096 28,727 29,106 $40,044
This chart assumes an initial investment of $10,000 made on 12/31/85. Returns shown include the reinvestment of all dividends. Past
performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares,
when redeemed, may be worth more or less than the original cost.
</TABLE>
AVERAGE ANNUAL RATE OF RETURN (%)
for Periods Ended December 31, 1995
1 Year 5 Years 10 Years
------ ------- --------
LEPERCQ-ISTEL FUND 27.09 11.14 8.55
S&P500 STOCK INDEX<F1> 37.58 16.59 14.88
<F1> The S&P 500 Stock Index is an unmanaged but commonly used measure of common
stock total return performance.
An investment cannot be made directly in an index.
SCHEDULE OF INVESTMENTS
DECEMBER 31, 1995
NUMBER MARKET
OF SHARES VALUE
- --------- -----
COMMON STOCKS - 93.48%
COMMUNICATIONS - 6.51%
5,000 Cisco Systems<F2> $ 373,125
18,000 Comverse Technology<F2> 360,000
15,000 Nokia ADR 583,125
---------
1,316,250
---------
COMPUTERS - INFORMATION - 2.54%
8,000 Digital Equipment<F2> 513,000
---------
CONSUMER SERVICES - 1.39%
30,000 Transmedia Network 281,250
---------
DIVERSIFIED INDUSTRIALS - 1.08%
25,000 Stimsonite<F2> 218,750
---------
ENERGY - INDEPENDENTS - 5.37%
50,000 Benton Oil & Gas<F2> 743,750
25,000 Cairn Energy USA<F2> 343,750
---------
1,087,500
---------
ENERGY - OIL SERVICES - 1.92%
80,000 Tesco<F2> 388,608
---------
ENERGY - PIPELINES - 9.65%
10,000 Enron 381,250
12,500 KN Energy 364,062
20,000 Leviathan Gas
Pipeline Partners 567,500
70,000 Tejas Power
Class A<F2> 638,750
---------
1,951,562
---------
FINANCIAL SERVICES -
DIVERSIFIED - 4.08%
30,000 Consumer Portfolio
Services<F2> 547,500
30,000 Rockford Industries<F2> 277,500
---------
825,000
---------
INDUSTRIAL - COMMERCIAL
SERVICES - 11.73%
36,000 Equifax 769,500
17,444 First Data 1,166,568
17,500 HealthPlan Services<F2> 437,500
---------
2,373,568
---------
INSURANCE - 6.97%
12,000 Conseco 751,500
57,881 Gainsco 658,396
---------
1,409,896
---------
MEDIA - BROADCASTING - 9.85%
20,000 SFX Broadcasting,
Class A<F2> 595,000
6,000 United Video Satellite
Group, ClassA<F2> 159,000
15,000 Viacom, Class A<F2> 688,125
40,000 Wescott
Communications<F2> 550,000
---------
1,992,125
---------
MEDICAL SUPPLIES - 0.91%
40,000 Interpore International<F2> 185,000
---------
SEMICONDUCTOR - 9.67%
25,000 Adaptec<F2> 1,021,875
15,000 Lattice Semiconductor<F2> 489,375
20,000 National Semiconductor<F2> 445,000
---------
1,956,250
---------
SOFTWARE - PROCESSING - 17.10%
30,000 Acclaim
Entertainment<F2> 371,250
10,000 BMC Software 425,000
7,500 Computer Associates
International 426,562
20,000 Mercury Interactive<F2> 355,000
80,000 The Santa Cruz
Operation<F2> 500,000
60,000 Software Professionals<F2> 135,000
20,000 Sterling Software<F2> 1,247,500
---------
3,460,312
---------
REAL - ESTATE INVESTMENT
TRUST - 4.71%
25,000 Prime Residential 462,500
15,000 Storage USA 489,375
----------
951,875
----------
Total Common Stock
(Cost $14,263,350) 18,910,946
----------
CONVERTIBLE
PREFERRED
STOCKS - 3.56%
12,000 Integon,
$3.875 Redeemable 720,000
----------
Total Convertible
Preferred Stocks
(Cost $603,960) 720,000
----------
RESTRICTED SECURITIES
(NOTE 2) - 0.00%
38,020 Westfed Holdings,
Class B, Common $ 1
128,290 Westfed Holdings,
15.50%, Preferred 1
----------
Total Restricted Securities
(Cost $11,126,810) 2
----------
PRINCIPAL
AMOUNT
------
U.S. TREASURY
NOTES - 1.07%
$200,000 U.S. Treasury Notes,
9.00%, 5/15/98 216,562
----------
Total U.S. Treasury Notes
(Cost $200,062) 216,562
----------
U.S. TREASURY
BILLS - 1.96%
400,000 U.S. Treasury Bills,
2/15/96 397,620
----------
Total U.S. Treasury Bills
(Cost $397,620) 397,620
----------
Total Investments - 100.07%
(Cost $26,591,803) 20,245,130
----------
Liabilities, less
Other Assets - (0.07)% (14,167)
----------
NET ASSETS - 100.00% $20,230,963
==========
<F2> Non-income producing security.
See accompanying notes to financial statements.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
ASSETS:
Investments, at market value
(cost $26,591,803) $20,245,130
Cash 28,897
Receivable for fund shares sold 8,404
Dividends receivable 2,012
Interest receivable 2,324
Other assets 12,586
----------
Total Assets 20,299,353
----------
LIABILITIES:
Payable for fund shares repurchased 1,722
Payable to adviser 37,622
Accrued expenses and
other liabilities 29,046
----------
Total Liabilities 68,390
----------
NET ASSETS $20,230,963
==========
NET ASSETS CONSIST OF:
Capital stock $26,579,860
Accumulated undistributed
net investment income 3,110
Accumulated undistributed net
realized losses on investments (5,334)
Net unrealized depreciation
on investments (6,346,673)
-----------
Total Net Assets $20,230,963
==========
Shares outstanding
(unlimited shares of
$1.00 par value authorized) 1,277,942
Net Asset Value $15.83
=====
See accompanying notes to financial statements.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME:
Dividend income $ 274,474
Interest income 184,323
---------
Total income 458,797
---------
EXPENSES:
Investment advisory fee 144,012
Administration fee 6,249
Shareholder servicing and
accounting costs 41,154
Custody fees 10,751
Federal and state registration 10,490
Professional fees 50,800
Reports to shareholders 3,000
Trustee fees and expenses 15,055
Distribution expenses 3,058
Other 3,000
---------
Total expenses 287,569
---------
NET INVESTMENT INCOME 171,228
---------
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments 938,539
Change in unrealized
depreciation on investments 3,433,435
---------
Net realized and unrealized
gain on investments 4,371,974
---------
NET INCREASE IN
NET ASSETS RESULTING
FROM OPERATIONS $4,543,202
=========
See accompanying notes to financial statements.
STATEMENT OF CHANGES IN NET ASSETS
Year ended Year ended
December 31, 1995 December 31, 1994
----------------- -----------------
OPERATIONS:
Net investment income $ 171,228 $ 256,580
Net realized gain on investments 938,539 1,032,678
Net realized gain on selling
covered-call options - 14,792
Change in unrealized depreciation
on investments 3,433,435 (2,242,654)
---------- -----------
Net increase (decrease) in net
assets from operations 4,543,202 (938,604)
---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (162,737) (257,215)
Net realized gains (954,393) (963,956)
----------- -----------
Total distributions (1,117,130) (1,221,171)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 1,370,119 6,128,215
Shares issued to holders in
reinvestment of dividends 860,687 738,204
Cost of shares redeemed (3,928,451) (2,789,038)
----------- -----------
Net (decrease) increase in net
assets from
capital share transactions (1,697,645) 4,077,381
----------- -----------
TOTAL INCREASE IN NET ASSETS 1,728,427 1,917,606
----------- -----------
NET ASSETS:
Beginning of year 18,502,536 16,584,930
----------- -----------
End of year (including undistributed
net investment income of $3,110
and $0, respectively) $20,230,963 $18,502,536
=========== ===========
See accompanying notes to financial statements.
FINANCIAL HIGHLIGHTS
Per Share Data: 1995 1994 1993 1992 1991
---- ---- ---- ---- ----
Net asset value, beginning of year $13.17 $14.84 $14.17 $14.05 $12.46
----- ----- ----- ----- -----
Income from investment operations:
Net investment income 0.14 0.18 0.29 0.40 0.47
Net realized and unrealized gains
(losses) on securities 3.42 (0.93) 1.62 0.35 1.65
----- ------ ----- ----- -----
Total from investment operations 3.56 (0.75) 1.91 0.75 2.12
----- ------ ----- ----- -----
Less distributions:
Dividends from net
investment income (0.13) (0.18) (0.29) (0.40) (0.47)
Dividends in excess of
net investment income - (0.03) (0.03) (0.01) (0.06)
Distributions from capital gains (0.77) (0.71) (0.92) (0.22) 0.00
------ ------ ------ ------ ------
Total distributions (0.90) (0.92) (1.24) (0.63) (0.53)
------ ------ ------ ------ ------
Net asset value, end of year $15.83 $13.17 $14.84 $14.17 $14.05
====== ====== ====== ====== ======
Total return 27.1% (5.1)% 13.5% 5.3% 17.0%
Supplemental data and ratios:
Net assets (in millions)
end of year $20.2 $18.5 $16.6 $17.0 $17.4
Ratio of expenses to average
net assets 1.50% 1.56% 1.51% 1.53% 1.54%
Ratio of net investment income
to average net assets 0.89% 1.36% 2.00% 2.90% 3.80%
Portfolio turnover rate 59.72% 70.66% 19.88% 20.37% 21.81%
See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
Lepercq-Istel Trust (the "Trust") is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end investment company,
established under a Declaration of Trust dated April 8, 1986. The Trust was
formerly a Delaware corporation established in 1953 known as Istel Fund, Inc.
On April 8, 1986, the shareholders of Istel Fund, Inc. (the Trust's
predecessor) approved a plan of reorganization (the "Reorganization") under
which Istel Fund, Inc. converted its corporate structure to change from a
Delaware corporation to a Massachusetts business trust. In accordance with the
terms and conditions of the Reorganization, Istel Fund, Inc. changed its name
to Lepercq-Istel Trust. The Trust currently consists of one series, Lepercq-
Istel Fund (the "Fund"). The principal investment objective of the Fund is
long-term capital appreciation. The following is a summary of significant
accounting policies consistently followed by the Fund in the preparation of
its financial statements. These policies are in conformity with generally
accepted accounting principles for investment companies.
a) Investment Valuation-Investments in securities traded on a national
securities exchange are valued at the last reported sale on the primary
exchange on which they are traded. Investments not listed on a securities
exchange and exchange-listed securities for which no sale was reported for
that date are valued at the last reported bid price. Once short-term
securities have a maturity of 60 days or less, they are valued at amortized
cost which approximates market value; prior to that they are marked to
market. Restricted securities for which quotations are not readily available
are valued at fair value as determined by the investment adviser under the
supervision of the Board of Trustees.
b) Federal Income Taxes-It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable net income as well as any net
realized gains to its shareholders. Therefore, no federal income tax
provision is required. Generally accepted accounting principles require that
permanent differences between financial reporting and tax reporting be
reclassified to capital stock.
c) Options Accounting Principles-When the Fund sells a covered-call option, an
amount equal to the premium received in cash by the Fund is included as a
liability. The amount of the liability is marked to market to reflect the
market value of the options written. The current market value of a traded
option is its last reported sale price. When an option expires on its
stipulated expiration date, the Fund realizes a gain to the extent of the
premium received. If the Fund enters into a closing purchase transaction,
the Fund realizes a gain or loss (if the cost of a closing purchase
transaction exceeds the premium received when the option was sold). If an
option is exercised, the Fund realizes a gain or loss from the sale of the
underlying security with the proceeds of the sale increased by the premium
received. There was no option activity during the year ended December 31,
1995.
d) Distributions to Shareholders-Dividends from net investment income are
declared and paid semi-annually. Distributions of net realized capital
gains, if any, will be declared at least annually.
e) Use of Estimates-The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
f) Other-Investment and shareholder transactions are recorded no later than
the first business day after the trade date. The Fund determines the gain or
loss realized from the investment transactions by comparing the original
cost of the security lot sold with the net sales proceeds. Dividend income
is recognized on the ex-dividend date or as soon as information is available
to the Fund, and interest income is recognized on an accrual basis.
2. RESTRICTED SECURITIES
On December 31, 1995, the Fund held certain restricted securities (i.e.,
securities which may not be publicly sold without registration under the
Federal Securities Act of 1933 or without an exemption under such Act). These
securities were acquired from the Pilgrim Corporate Utilities Fund on July 29,
1994 under the Agreement on Transfer of Assets between Lepercq, de Neuflize
&Co. Incorporated and Pilgrim Management Corporation. On December 31, 1995 and
on the date these restricted securities were acquired, July 29, 1994, there
were no market quotations available for unrestricted securities of the same
class. In the opinion of the Fund's adviser these securities are worthless.
Consequently, each position has been valued at $1 for a total value for all
restricted securities of $2. The value at which these securities were acquired
by the Fund, the original cost of these securities to Pilgrim Corporate
Utilities Fund and the net unrealized loss that accrues to the Fund from the
acquisition of these securities are as follows:
ACQUISITION ORIGINAL COST NET UNREALIZED LOSS
COST TO FUND TO PILGRIM ACCRUED TO FUND
------------ ---------- ---------------
Westfed Holdings,
15.50%, Preferred $1 $11,125,662 $11,125,661
Westfed Holdings,
Class B, Common 1 1,148 1,147
----------- -----------
Total restricted
securities (Market
Value of $2 at
December 31, 1995) $11,126,810 $11,126,808
=========== ===========
3. AGREEMENTS
The Fund has entered into an investment advisory agreement with Lepercq, de
Neuflize &Co. Incorporated (the "Adviser"). The Adviser is entitled to
receive a fee, computed and accrued daily and payable quarterly, at the annual
rate of 0.75% of the Fund's average daily net assets.
For the year ended December 31, 1995, the Fund paid Lepercq, de Neuflize
Securities Inc., a wholly owned subsidiary of the Adviser $18,638 of brokerage
commissions.
Firstar Trust Company, a subsidiary of Firstar Corporation, a publicly held
bank holding company, serves as the Fund's custodian, transfer agent,
administrator and accounting services agent.
The Board of Trustees, on behalf of the Fund, has adopted a distribution plan
(the "Plan") pursuant to Rule 12b-1 under the Investment Company Act of
1940. Pursuant to the Plan, the Fund may incur distribution expenses of up to
0.75% per annum of its average daily net assets. Additionally, the Fund may
pay a servicing fee to certain persons in an amount not to exceed 0.25% of the
annual average daily net assets. The aggregate of these two fees may not
exceed 1% of the Fund's annual average daily net assets. The Plan provides
that the Fund may finance activities which are primarily intended to result in
the sale of the Fund's shares. The Fund paid $3,058 pursuant to the Plan for
the year ended December 31, 1995.
4. CAPITAL SHARE TRANSACTIONS
Transactions in shares of beneficial interest were as follows:
YEAR ENDED YEAR ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
AMOUNT SHARES AMOUNT SHARES
------ ------ ------ ------
Shares sold $1,370,119 87,603 $6,128,215 424,179
Shares issued to holders in
reinvestment of dividends 860,687 54,593 738,204 56,215
Shares redeemed (3,928,451) (268,767) (2,789,038) (193,186)
----------- --------- ----------- ---------
Net (decrease) increase $(1,697,645) (126,571) $4,077,381 287,208
=========== ========= ========= ========
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Fund for the year ended December 31, 1995, were as
follows:
U.S. GOVERNMENT OTHER
--------------- -----
Purchases -- $10,957,671
Sales $1,779,406 8,475,977
At December 31, 1995, gross unrealized appreciation and depreciation of
investments for federal tax purposes were as follows:
Appreciation $ 5,560,350
(Depreciation) (11,907,023)
------------
Net unrealized depreciation on investments $( 6,346,673)
============
At December 31, 1995, the cost of investments for federal income tax purposes
was $26,591,803.
One hundred percent of dividends paid from net investment income qualifies for
the dividend received deduction available to corporate shareholders.
The Fund acquired capital loss carryforward from the Pilgrim
CorporateUtilities Fund on July 29, 1994 under the Agreement on Transfer of
Assets between the Adviser and Pilgrim Management Corporation. The Fund is
limited to recognizing $332,593 of this loss per year until December 31, 2001.
Net unrealized gains and losses may also differ for book and tax purposes as a
result of disallowance for tax purposes of built-in losses that were acquired
under the Agreement on Transfer of Assets.
INDEPENDENT AUDITORS' REPORT
TO THE SHAREHOLDERS AND
BOARD OF TRUSTEES OF
LEPERCQ-ISTEL TRUST:
We have audited the accompanying statement of assets and liabilities of Lepercq-
Istel Fund (the "Fund"), including the schedule of investments, as of December
31, 1995, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period then
ended, and the financial highlights for each of the periods presented. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1995, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Fund as of December 31, 1995, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods presented, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Milwaukee, Wisconsin
January 30, 1996
TRUSTEES
Bruno Desforges Chairman of the Board, Lepercq-Istel Trust; Managing
Director, Leqercq, de Neuflize &Co. Incorporated;
Chairman of the Board, Lepercq, de Neuflize Securities
Inc.
Francois Letaconnoux President and Chief Executive Officer, Lepercq, de
Neuflize &Co. Incorporated; President, Lepercq, de
Neuflize Securities Inc.
Jean-Louis Milin Managing Director, Banque de Neuflize, Schlumberger,
Mallet
Joseph Mindell Partner, Lawrence, O'Donnell, Marcus &Co.
Dr. Marvin Schiller<F3> Former Managing Director, A.T. Kearney, Inc.
Franz Skryanz<F3> Financial Consultant; formerly, Treasurer, Chief
Financial Officer, Schenkers International
<F3> Member of Audit, Ethics and Nominating Committees
OFFICERS
Andrew Hanson Co-President
Tsering Ngudu Co-President
John McCollam Treasurer
Pamela Forrest Secretary
Peter Hartnedy Controller
Investment Adviser Lepercq, de Neuflize &Co. Incorporated, New York
Underwriter &Distributor Lepercq, de Neuflize Securities Inc., New York
Transfer Agent, Custodian,
Administrator and
Accounting Services Agent Firstar Trust Company, Wisconsin
Legal Counsel Kramer, Levin, Naftalis, Nessen, Kamin &Frankel,
New York
Independent Auditors KPMG Peat Marwick LLP, Wisconsin
[ARTICLE] 6
[CIK] 0000052761
[NAME] LEPERCQ ISTEL TRUST
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1995
[PERIOD-START] JAN-01-1995
[PERIOD-END] DEC-31-1995
[INVESTMENTS-AT-COST] 26,592
[INVESTMENTS-AT-VALUE] 20,245
[RECEIVABLES] 13
[ASSETS-OTHER] 41
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 20,299
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 68
[TOTAL-LIABILITIES] 68
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 13
[SHARES-COMMON-STOCK] 1,278
[SHARES-COMMON-PRIOR] 1,405
[ACCUMULATED-NII-CURRENT] 3
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (5)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (6,347)
[NET-ASSETS] 20,231
[DIVIDEND-INCOME] 274
[INTEREST-INCOME] 184
[OTHER-INCOME] 0
[EXPENSES-NET] 287
[NET-INVESTMENT-INCOME] 171
[REALIZED-GAINS-CURRENT] 939
[APPREC-INCREASE-CURRENT] 3,433
[NET-CHANGE-FROM-OPS] 4,543
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 163
[DISTRIBUTIONS-OF-GAINS] 954
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 87,603
[NUMBER-OF-SHARES-REDEEMED] 268,767
[SHARES-REINVESTED] 54,593
[NET-CHANGE-IN-ASSETS] 1,728
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 84
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 144
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 288
[AVERAGE-NET-ASSETS] 19,207
[PER-SHARE-NAV-BEGIN] 13.17
[PER-SHARE-NII] .14
[PER-SHARE-GAIN-APPREC] 3.42
[PER-SHARE-DIVIDEND] .13
[PER-SHARE-DISTRIBUTIONS] .77
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 15.83
[EXPENSE-RATIO] 1.50
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
