UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark one)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
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 0-11176
NTS-PROPERTIES III
(Exact name of registrant as specified in its charter)
Georgia 61-1017240
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) No.)
10172 Linn Station Road
Louisville, Kentucky 40223
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number,
including area code (502) 426-4800
Not Applicable
Former name, former address and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (l) 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>
TABLE OF CONTENTS
Pages
PART I
Item 1. Financial Statements
Balance Sheets and Statement of Partners' Equity
as of June 30, 1995 and December 31, 1994 2
Statements of Operations
For the three months and six months ended
June 30, 1995 and 1994 3
Statements of Cash Flows
For the three months and six months ended
June 30, 1995 and 1994 4
Notes To Financial Statements 5-6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7-11
PART II
1. Legal Proceedings 12
2. Changes in Securities 12
3. Defaults upon Senior Securities 12
4. Submission of Matters to a Vote of Security Holders 12
5. Other Information 12
6. Exhibits and Reports on Form 8-K 12
Signatures 13
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
NTS-PROPERTIES III
BALANCE SHEETS AND STATEMENT OF PARTNERS' EQUITY
<CAPTION>
As of As of
June 30, 1995 December 31, 1994*
<S> <C> <C>
ASSETS
Cash and equivalents $ 466,546 $ 734,203
Cash and equivalents - restricted 337,180 293,623
Investment securities 303,692 --
Accounts receivable, net of
allowance for doubtful accounts
of $65,216 (1995) and $53,828
(1994) 314,564 339,477
Land, buildings and amenities, net 10,026,399 10,242,936
Other assets 277,220 252,047
------------ ------------
$ 11,725,601 $ 11,862,286
============ ============
LIABILITIES AND PARTNERS' EQUITY
Mortgages payable $ 7,013,638 $ 7,060,479
Accounts payable - operations 89,141 75,234
Accounts payable - construction 105,096 152,093
Distributions payable 39,000 39,000
Security deposits 90,738 84,044
Other liabilities 113,912 16,190
------------ ------------
7,451,525 7,427,040
Partners' equity 4,274,076 4,435,246
------------ ------------
$ 11,725,601 $ 11,862,286
============ ============
</TABLE>
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
<S> <C> <C> <C>
PARTNERS' EQUITY
Initial equity $ 15,600,000 $ 8,039,710 $ 23,639,710
Adjustment to
historical basis -- (5,455,030) (5,455,030)
------------ ------------ ------------
15,600,000 2,584,680 18,184,680
Net loss - prior years (362,006) (2,092,741) (2,454,747)
Net loss - current year (31,865) (51,305) (83,170)
Cash distributions
declared to date (11,165,702) (206,985) (11,372,687)
------------ ------------ ------------
Balances at June 30,
1995 $ 4,040,427 $ 233,649 $ 4,274,076
============ ============ ============
<FN>
* Reference is made to the audited financial statements in the Form 10-K
as filed with the Commission on March 31, 1995.
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES III
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
REVENUES:
Rental income, net of provision
for doubtful accounts of $41,564
(1995) and $14,812 (1994) $ 665,027 $ 639,984 $1,346,718 $1,298,340
Rental income - affiliated 78,165 78,165 156,330 158,420
Interest and other income 9,808 5,178 21,647 6,400
---------- ---------- ---------- ----------
753,000 723,327 1,524,695 1,463,160
EXPENSES:
Operating expenses 149,063 169,582 306,473 331,071
Operating expenses - affiliated 77,352 85,224 165,178 177,892
Write-off of unamortized tenant
and building improvements 33,031 -- 41,273 --
Interest expense 144,823 145,660 297,521 291,851
Management fees 39,761 38,319 78,251 74,081
Real estate taxes 54,243 51,754 108,540 103,601
Professional and administrative
expenses 12,288 14,787 27,342 26,506
Professional and administrative
expenses - affiliated 36,211 32,912 72,612 66,312
Depreciation and amortization 258,476 251,357 510,675 501,584
---------- ---------- ---------- ----------
805,248 789,595 1,607,865 1,572,898
---------- ---------- ---------- ----------
Net loss $ (52,248) $ (66,268) $ (83,170) $ (109,738)
========== ========== ========== ===========
Net loss allocated to limited
partners $ (25,844) $ (41,013) $ (31,865) $ (59,272)
========== ========== ========== ==========
Net loss per limited partnership
unit $ (1.66) $ (2.63) $ (2.04) $ (3.80)
========== ========== ========== ==========
Weighted average number of units 15,600 15,600 15,600 15,600
========== ========== ========== ==========
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES III
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (52,248) $ (66,268) $ (83,170) $ (109,738)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Provision for doubtful accounts 17,090 10,604 41,564 14,812
Accrued interest on investment
securities (3,884) -- (3,884) --
Write-off unamortized tenant
and building improvements 33,031 -- 41,273 --
Depreciation and amortization 258,476 251,357 510,675 501,584
Change in assets and liabilities:
Accounts receivable (50,242) 2,106 (16,651) (24,023)
Other assets (3,246) 1,779 (35,414) (24,401)
Accounts payable - operations (20,971) 48,508 13,907 52,405
Security deposits (3,714) (2,165) 6,694 (1,222)
Other liabilities 51,391 54,520 97,722 104,141
---------- ---------- ---------- ----------
Net cash provided by operating
activities 225,683 300,441 572,716 513,558
---------- ---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to land, buildings and
amenities (213,300) (116,159) (325,170) (197,280)
Increase in cash and equivalents -
restricted (21,932) (23,588) (43,557) (43,088)
Purchase of investment securities (299,808) -- (299,808) --
Increase (decrease) in accounts
payable - construction 21,759 (9,302) (46,997) 44,884
---------- ---------- ---------- ----------
Net cash used in investing
activities (513,281) (149,049) (715,532) (195,484)
---------- ---------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgage (23,687) (21,628) (46,841) (42,771)
Cash distributions (39,000) -- (78,000) --
---------- ---------- ---------- ----------
Net cash used in financing
activities (62,687) (21,628) (124,841) (42,771)
---------- ---------- ----------- ----------
Net (decrease) increase in
cash and equivalents (350,285) 129,764 (267,657) 275,303
CASH AND EQUIVALENTS, beginning
of period 816,831 590,034 734,203 444,495
---------- ---------- ---------- ----------
CASH AND EQUIVALENTS, end of period $ 466,546 $ 719,798 $ 466,546 $ 719,798
========== ========== ========== ==========
Interest paid on a cash basis $ 147,441 $ 145,825 $ 299,527 $ 292,176
========== ========== ========== ==========
</TABLE>
<PAGE>
NTS-PROPERTIES III
NOTES TO FINANCIAL STATEMENTS
The financial statements included herein should be read in conjunction with
the Partnership's 1994 Annual Report. In the opinion of the general
partner, all adjustments (only consisting of normal recurring accruals)
necessary for a fair presentation have been made to the accompanying
financial statements for the three months and six months ended June 30, 1995
and 1994.
1. Investment Securities
Investment securities represent investments in Certificates of Deposit
or debt securities issued by the U.S. Treasury with initial maturities
of greater than three months. The investments are carried at cost which
approximates market value. The Partnership intends to hold the
securities until maturity. The following provides details regarding the
investments held at June 30, 1995:
Amortized Maturity Value At
Type Cost Date Maturity
U.S. Treasury Bill $303,692 10/19/95 $307,000
======= =======
2. Mortgages Payable
Mortgages payable consist of the following:
June 30, December 31,
1995 1994
Mortgage payable to an insurance
company bearing interest at 9.125%,
maturing November 1, 1998, secured
by land and building $ 2,513,638 $ 2,560,479
Mortgage payable to an insurance
company maturing June 1, 2001,
secured by land and buildings,
bearing a variable interest rate
based on the 10-year treasury bill
rate plus 60 basis points. The rate
is adjusted quarterly (not to exceed
11.65% or be less than 7.65%). The
current rate at June 30, 1995 is 7.76% 4,500,000 4,500,000
----------- -----------
$ 7,013,638 $ 7,060,479
=========== ===========
3. Related Party Transactions
Property management fees of $78,251 and $74,081 for the six months ended
June 30, 1995 and 1994, respectively, were paid to NTS Development
Company, an affiliate of the general partner, pursuant to an agreement
with the Partnership. The fee is equal to 5% of gross revenues from the
Partnership's properties. Also, as permitted by the partnership
agreement, NTS Development Company will receive a repair and maintenance
fee equal to 5.9% of costs incurred which relate to capital
improvements. The Partnership has incurred $19,308 and $13,032 as a
repair and maintenance fee during the six months ended June 30, 1995 and
<PAGE>
3. Related Party Transactions - Continued
1994, respectively, and has capitalized this cost as a part of land,
buildings and amenities. As permitted by the partnership agreement, the
Partnership also was charged the following amounts from NTS Development
Company for the six months ended June 30, 1995 and 1994. These charges
include items which have been expensed as operating expenses -
affiliated or professional and administrative expenses - affiliated and
items which have been capitalized as other assets or as land, buildings
and amenities. These charges were as follows:
1995 1994
Leasing agents $ 78,045 $ 89,942
Administrative 88,137 81,649
Property manager 95,634 93,108
Other 5,912 4,828
--------- ---------
$ 267,728 $ 269,527
========= =========
During the six months ended June 30, 1995 and 1994, NTS Development
Company leased approximately 23,000 square feet of the available space
in the Plainview Plaza II property at a base rent of approximately
$13.50 per square foot. The Partnership has received approximately
$156,000 in rental payments from NTS Development Company during the six
months ended June 30, 1995 and 1994. The lease expires in February
1996.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
The occupancy levels at the Partnership's properties as of June 30 were as
follows:
1995 1994
Plainview Plaza II 86% 83%
Plainview Triad North 94% 94%
Peachtree Corporate Center 92% 84%
The rental and other income generated by the Partnership's properties for
the three months and six months ended June 30 was as follows:
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Plainview Plaza II $267,895 $260,456 $553,058 $531,644
Plainview Triad North $244,017 $227,443 $470,530 $453,977
Peachtree Corporate Center $231,694 $231,098 $486,169 $473,063
Plainview Plaza II's occupancy increased 3% from June 30, 1994 to June 30,
1995 as a result of three new leases totalling approximately 9,300 square
feet. Partially offsetting the new leases are three tenants, who had
occupied approximately 5,700 square feet, vacating at the end of the lease
terms. Average occupancy at Plainview Plaza II increased from 83% in 1994
to 85% in 1995 for both the three months and six months ended June 30. The
increase in rental and other income at Plainview Plaza II for the three
months and six months ended June 30, 1995 as compared to the same periods
in 1994 is due to the increase in average occupancy.
Plainview Triad North's occupancy was unchanged from June 30, 1994 to June
30, 1995. Average occupancy at Plainview Triad North increased from 88%
(1994) to 95% (1995) for the three month period ended June 30 and from 92%
(1994) to 95% (1995) for the six month periods. Rental and other income
increased for the three months and six months ended June 30, 1995 as
compared to the same periods in 1994 due to the increase in average
occupancy partially offset by an increase in the provision for doubtful
accounts.
Peachtree Corporate Center's occupancy increased 8% from June 30, 1994 to
June 30, 1995 due to 20 new leases totalling approximately 53,000 square
feet. Of this total, approximately 17,000 square feet represents expansions
by six current tenants. Partially offsetting the new leases are 14 tenant
move-outs totalling approximately 37,000 square feet. Approximately 22,000
square feet of this total represents eight tenants who vacated and ceased
making rental payments in breach of the lease terms due principally to
bankruptcies. Accrued income associated with these leases of approximately
$10,000 was written off as uncollectible. The remaining 15,000 square feet
represents six tenants who vacated at the end of the lease terms.
<PAGE>
Results of Operations - Continued
Rental and other income at Peachtree Corporate Center increased for the
three months and six months ended June 30, 1995 as compared to the same
periods in 1994 as a result of an increase in average occupancy - 90% (1995)
compared to 85% (1994) for the three month period and 87% (1995) compared
to 83% (1994) for the six month period. Peachtree Corporate Center receives
rental income from the leasing of both office space and warehouse space.
Office space rents for approximately $7.00 to $9.00 per square foot compared
to $3.50 to $4.50 per square foot for warehouse space. Another factor
contributing to the increases in rental and other income from the 1994
periods to the 1995 periods is an increase in income received from the
rental of office space due to an increase in the amount of office space
leased in 1995 compared to 1994. Partially offsetting the increase in
rental and other income for both the three month and six month periods is
a decrease in income received from the rental of warehouse space due to a
decrease in the amount of warehouse space leased in 1995 compared to 1994.
The increase in rental and other income is also partially offset by an
increase in the provision for doubtful accounts and a decrease in the
average rental rate realized from office space leased.
In cases of tenants abandoning the premises, the Partnership pursues
collection through the use of collection agencies or other remedies
available by law when practical.
Current occupancy levels are considered adequate to continue the operation
of the Partnership's properties without the need for any additional
financing.
Interest and other income includes interest income earned from short-term
investments made by the Partnership with excess cash and from funds escrowed
for the replacement of the HVAC system and asphalt paving at Peachtree
Corporate Center (Cash and equivalents - restricted). Interest income
increased for the three months and six months ended June 30, 1995 as
compared to the same periods in 1994 as a result of an increase in interest
earned on the Escrow Funds and an increase in excess cash available for
investment.
Operating expenses decreased for the six months ended June 30, 1995 as
compared to the same period in 1994 as a result of decreased snow removal,
janitorial and landscaping costs at Plainview Plaza II and Plainview Triad
North, decreased utility costs at Plainview Plaza II and decreased security
service expense at Peachtree Corporate Center. Partially offsetting the
decrease in operating expenses for the six month period is an increase in
utility costs, landscaping and general building repair costs at Peachtree
Corporate Center. Operating expenses decreased for the three month period
as a result of decreased landscaping and janitorial costs at Plainview Plaza
II and Plainview Triad North and decreased repair and maintenance costs at
all the Partnership's properties. The decreases in operating expenses are
partially offset by increased landscaping costs at Peachtree Corporate
Center.
The decrease in operating expenses - affiliated for the three months and six
months ended June 30, 1995 as compared to the same periods in 1994 is due
to a decrease in leasing salaries at all of the Partnership's properties.
Partially offsetting the decrease in operating expenses for the six month
period is an increase in property management salaries at all of the
Partnership's properties.
<PAGE>
Results of Operations - Continued
The 1995 write-off of unamortized tenant and building improvements can be
attributed to Peachtree Corporate Center (tenant improvements) and Plainview
Plaza II (building improvements). Changes to current tenant improvements
are a typical part of any lease negotiation. Improvements generally include
a revision to the current floor plan to accommodate a tenant's needs, new
carpeting and paint and/or wallcovering. In order to complete the
renovation, it is sometimes necessary to replace improvements which have not
been fully depreciated. This results in a write-off of unamortized tenant
improvements. The write-off of unamortized building improvements at
Plainview Plaza II is the result of a common area lobby renovation. The
renovation included an upgrade of current restroom facilities, improvement
of handicap restroom facilities, new carpet and wallcoverings. The write-
off represents the cost of previous renovations which had not been fully
depreciated.
The increase in interest expense for the six months ended June 30, 1995 as
compared to the same period in 1994 is due to the fact that the interest
rate on the $4,500,000 mortgage payable was higher in 1995 compared to 1994.
The interest rate was 8.41% January to March 1995 and 7.76% April to June
1995 versus 7.65% in 1994. The interest rate on this note adjusts quarterly
to 60 basis points over the 10-year treasury bill rate (not to exceed 11.65%
or be less than 7.65%). The increase in interest expense for the six month
period is partially offset by a decrease in interest expense on the
$2,513,638 mortgage payable as a result of continued principal paydowns.
Interest expense remained fairly constant for the three months ended June
30, 1995 as compared to the same period in 1994. See Note 2 of the
Partnership's financial statements for details regarding the Partnership's
debt.
Management fees are calculated as a percentage of cash collections; however,
revenue for reporting purposes is on the accrual basis. As a result, the
fluctuations of revenues between periods will differ from the fluctuations
of management fee expense.
The increase in real estate taxes for the three months and six months ended
June 30, 1995 as compared to the same periods in 1994 is due to an increase
in the assessment for Plainview Triad North and an increase in tax rates at
all of the Partnership's properties. Partially offsetting the increase in
real estate taxes for the three month and six month periods is a decrease
in the assessment for Plainview Plaza II. The assessment at Peachtree
Corporate Center was unchanged.
Professional and administrative expenses remained fairly constant for the
three months and six months ended June 30, 1995 as compared to the same
periods in 1994.
The increase in professional and administrative expenses - affiliated for
the three months and six months ended June 30, 1995 as compared to the same
periods in 1994 is primarily due to increased accounting salaries.
The increase in depreciation and amortization for the three months and six
months ended June 30, 1995 as compared to the same periods in 1994 is due
to approximately $527,000 of new assets placed in service since June 30,
1994. The increase in depreciation and amortization is partially offset by
the fact that a portion of the Partnership's assets have become fully
depreciated.
<PAGE>
Liquidity and Capital Resources
The Partnership had cash flow from operations of $572,716 and $513,558 for
the six months ended June 30, 1995 and 1994, respectively. These funds, in
conjunction with cash on hand, were used to make a 1% (annualized)
distribution of $78,000 (1995). The annualized distribution rate is
calculated as a percent of the initial equity. The limited partners
received 100% of these distributions. The Partnership did not make a cash
distribution during the six months ended June 30, 1994. The Partnership
determined it necessary to temporarily suspend cash distributions until
adequate cash reserves for future leasing costs, tenant finish and other
capital improvements were established, and sufficient cash was being
generated from operations which, in management's opinion, warranted a cash
distribution.
As of June 30, 1995, the Partnership had a mortgage payable to an insurance
company in the amount of $4,500,000. The mortgage bears a variable interest
rate which adjusts quarterly to 60 basis points over the 10-year treasury
bill rate. At no time will the rate exceed 11.65% or be less than 7.65% per
annum. The current rate at June 30, 1995 was 7.76%. The loan is secured
by a first mortgage on Plainview Triad North and Peachtree Corporate Center
with a second position behind the holder of the permanent mortgage on
Plainview Plaza II. The unpaid balance of the loan is due June 1, 2001.
As of June 30, 1995, the Partnership also had a mortgage payable to an
insurance company in the amount of $2,513,638. The mortgage bears a fixed
interest rate of 9.125% and is due November 1, 1998. The outstanding
balance at maturity based on the current rate of amortization will be
$2,140,539.
The primary source of future liquidity and distributions is expected to be
derived from cash generated by the Partnership's properties after adequate
cash reserves are established for future leasing and tenant finish costs.
The majority of the Partnership's cash flow is derived from operating
activities. Cash flows used in investing activities are for tenant finish
improvements and reductions in accounts payable - construction and are
funded by operating activities. Changes to current tenant improvements are
a typical part of any lease negotiation. Improvements generally include a
revision to the current floor plan to accommodate a tenant's needs, new
carpeting and paint and/or wallcovering. The extent and cost of these
improvements are determined by the size of the space and whether the
improvements are for a new tenant or incurred because of a lease renewal.
Cash flows used in investing activities also include cash which is being
escrowed for the replacement of the HVAC system and asphalt paving at
Peachtree Corporate Center and purchases of investment securities. As part
of its cash management activities, the Partnership has purchased
Certificates of Deposit or debt securities issued by the U.S. Treasury with
initial maturities of greater than three months to improve the return on its
excess cash. The Partnership intends to hold the securities until maturity.
Cash flows provided by investing activities are from increases in accounts
payable - construction. Cash flows used in financing activities include
cash distributions and principal payments on the $2.5 million mortgage
payable. The Partnership does not expect any material changes in the mix
and relative cost of capital resources.
In the next 12 months, the General Partner expects a demand on future
liquidity as a result of 81,452 square feet in leases expiring from July 1,
1995 through June 30, 1996 (Plainview Plaza II - 37,371 square feet,
Plainview Triad North - 7,968 square feet and Peachtree Corporate Center -
<PAGE>
Liquidity and Capital Resources - Continued
36,113 square feet). At this time, the future leasing and tenant finish
costs which will be required to renew the current leases or obtain new
tenants are unknown. It is anticipated that the cash flow from operations
and cash reserves will be sufficient to meet the needs of the Partnership.
The General Partner also anticipates a demand on future liquidity in the
next 12 months, as a result of the Partnership's plans to renovate the
common area lobbies at Plainview Plaza II. The project is to include an
upgrade of current restroom facilities, improvement of handicap restroom
facilities, new carpet and wallcoverings. The project is anticipated to
cost approximately $190,000. A portion of this project was completed during
the first and second quarter of 1995 at a cost of approximately $93,000.
As of June 30, 1995, the Partnership had no material commitments for the
remaining renovations.
The table below presents that portion of the distributions that represent
a return of capital on a Generally Accepted Accounting Principle basis for
the six months ended June 30, 1995 and 1994. The General Partner did not
receive a distribution during these periods. Distributions were funded by
cash flow derived from operating activities.
Net Income Return
(Loss) Cash of
Allocated Distributions Capital
Limited Partners:
1995 $ (31,865) $ 78,000 $ 78,000
1994 (59,272) -- --
The following describes the efforts being taken by the Partnership to
increase the occupancy levels at the Partnership's properties. At Peachtree
Corporate Center in Norcross, Georgia, the Partnership has an on-site
leasing agent, an employee of NTS Development Company (an affiliate of the
general partner), who makes calls to potential tenants, negotiates lease
renewals with current tenants and manages local advertising with the
assistance of NTS Development Company's marketing staff. The leasing and
renewal negotiations for Plainview Plaza II and Plainview Triad North are
handled by leasing agents, employees of NTS Development Company, located in
Louisville, Kentucky. The leasing agents are located in the same city as
both commercial properties. All advertising for the Louisville properties
is also coordinated by NTS Development Company's marketing staff located in
Louisville, Kentucky.
Leases at all the Partnership's properties provide for tenants to contribute
toward the payment of increases in common area maintenance expenses,
insurance, utilities and real estate taxes. This lease provision should
protect the Partnership's operations from the impact of inflation and
changing prices.
<PAGE>
PART II. OTHER INFORMATION
1. Legal Proceedings
None
2. Changes in Securities
None
3. Defaults upon Senior Securities
None
4. Submission of Matters to a Vote of Security Holders
None
5. Other Information
None
6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the three months
ended June 30, 1995.
<PAGE>
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.
NTS-PROPERTIES III
(Registrant)
BY:NTS-Properties Associates
BY:NTS Capital Corporation,
General Partner
/s/ John W. Hampton
John W. Hampton
Senior Vice President
Date: August 9, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF JUNE 30, 1995 AND FROM THE STATEMENT OF OPERATIONS FOR THE SIX
MONHTS ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 803,726
<SECURITIES> 303,692
<RECEIVABLES> 314,564
<ALLOWANCES> 65,216
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 10,026,399
<DEPRECIATION> 0<F2>
<TOTAL-ASSETS> 11,725,601
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 7,013,638
<COMMON> 0
0
0
<OTHER-SE> 4,274,076
<TOTAL-LIABILITY-AND-EQUITY> 11,725,601
<SALES> 1,503,048
<TOTAL-REVENUES> 1,524,695
<CGS> 0
<TOTAL-COSTS> 1,210,390
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 41,564
<INTEREST-EXPENSE> 297,521
<INCOME-PRETAX> (83,170)
<INCOME-TAX> 0
<INCOME-CONTINUING> (83,170)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (83,170)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>The Partnership has an unclassified balance sheet; therefore, the value is
$0.
<F2>This information is not disclosed in the Partnership's Form 10-Q filing.
</FN>
</TABLE>
