<PAGE>
FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
(As last amended by 34-32231, eff. 6/3/93.)
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[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
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT
For the transition period.........to.........
Commission file number 0-11767
ANGELES INCOME PROPERTIES, LTD. II
(Exact name of small business issuer as specified in its charter)
California 95-3793526
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (803) 239-1000
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a) ANGELES INCOME PROPERTIES, LTD. II
BALANCE SHEET
(Unaudited)
June 30, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
Assets
Cash:
Unrestricted $ 1,452,355
Restricted--tenant security deposits 251,712
Accounts receivable (net of allowance for
doubtful accounts of $29,663) 17,279
Escrows for taxes 235,292
Restricted escrows 384,093
Other assets 507,106
Investment in joint venture 50,722
Investment properties:
Land $ 2,197,403
Buildings and related personal
property 32,058,901
34,256,304
Less accumulated depreciation (20,416,875) 13,839,429
$16,737,988
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 82,495
Tenant security deposits 253,957
Accrued taxes 134,902
Other liabilities 288,564
Mortgage notes payable 16,852,959
Partners' Deficit
General partner $ (447,058)
Limited partners (99,852 units
issued and outstanding) (427,831) (874,889)
$16,737,988
</TABLE>
See Accompanying Notes to Financial Statements
1
<PAGE>
b) ANGELES INCOME PROPERTIES, LTD. II
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
<S> <C> <C> <C> <C>
1995 1994 1995 1994
Revenues:
Rental income $1,552,245 $1,814,979 $3,454,447 $ 3,681,270
Other income 73,037 101,443 142,694 192,390
Total revenue 1,625,282 1,916,422 3,597,141 3,873,660
Expenses:
Operating 391,812 547,070 896,047 1,083,125
Administrative 94,203 175,054 173,692 327,052
Property management
fees 76,119 90,506 167,845 176,750
Maintenance 215,026 244,705 355,951 541,996
Depreciation 423,535 587,757 995,300 1,170,128
Amortization 4,921 18,763 16,910 35,751
Interest 402,080 592,225 979,753 1,212,312
Property taxes 154,222 161,378 279,363 295,364
Tenant reimbursements (10,791) (23,152) (20,963) (27,838)
Total expenses 1,751,127 2,394,306 3,843,898 4,814,640
Equity in loss of joint
venture 2,286 18,612 (16,505) 2,593
Gain on foreclosure 13,777 -- 1,950,057 --
Loss on disposal of property (502) -- (40,328) (9,168)
Net income (loss) $ (110,284) $ (459,272) $1,646,467 $ (947,555)
Net loss allocated to
general partners (1%) $ (1,103) $ (4,593) $ 16,465 $ (9,476)
Net loss allocated to
limited partners (99%) (109,181) (454,679) 1,630,002 (938,079)
Net loss $ (110,284) $ (459,272) $1,646,467 $ (947,555)
Net loss per limited
partnership unit $ (1.09) $ (4.55) $ 16.32 $ (9.38)
</TABLE>
See Accompanying Notes to Financial Statements
2
<PAGE>
c) ANGELES INCOME PROPERTIES, LTD, II
STATEMENT OF CHANGES IN PARTNERS' DEFICIT
(Unaudited)
<TABLE>
<CAPTION>
Limited
Partnership General Limited
Units Partners Partners Total
<S> <C> <C> <C> <C>
Original capital
contributions 100,000 $ 1,000 $ 50,000,000 $50,001,000
Partners' deficit at
December 31, 1994 99,852 $(463,523) $ (2,057,833) $(2,521,356)
Net income for the six
months ended June 30, 1995 -- 16,465 1,630,002 1,646,467
Partners' deficit at
June 30, 1995 99,852 $(447,058) $ (427,831) $ (874,889)
</TABLE>
See Accompanying Notes to Consolidated Financial Statements
3
<PAGE>
d) ANGELES INCOME PROPERTIES, LTD. II
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
<S> <C> <C>
1995 1994
Cash flows from operating activities:
Net income (loss) $ 1,646,467 $ (947,555)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation 995,300 1,170,128
Amortization of discounts, loan costs and
lease commissions 71,001 92,007
Equity in (loss) income of joint venture 16,505 (2,593)
Gain on foreclosure of investment property (1,950,057) --
Loss on disposal of asset 40,328 9,168
Change in accounts:
Restricted cash 4,601 (10,199)
Accounts receivable (58) 30,893
Escrows for taxes (99,368) (88,339)
Other assets 20,317 (34,581)
Accounts payable (140,437) (18,799)
Tenant security deposit liabilities 10,216 8,533
Accrued taxes 51,416 60,763
Other liabilities 141,153 47,267
Net cash provided by
operating activities 807,384 316,693
Cash flows from investing activities:
Property improvements and replacements (290,107) (316,735)
Insurance proceeds 18,550 --
Deposits to restricted escrows (48,946) (23,870)
Receipts from restricted escrows 30,245 96,634
Net cash used in
investing activities (290,258) (243,971)
</TABLE>
See Accompanying Notes to Financial Statements
4
<PAGE>
ANGELES INCOME PROPERTIES, LTD. II
STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
<S> <C> <C>
1995 1994
Cash flows from financing activities:
Payments on mortgage notes payable $ (128,220) $ (154,478)
Net increase (decrease) in cash balance 388,906 (81,756)
Cash at beginning of period 1,063,449 845,033
Cash at end of period $ 1,452,355 $ 763,277
Supplemental disclosure of cash
flow information:
Cash paid for interest $ 751,975 $1,135,193
</TABLE>
See Accompanying Notes to Financial Statements
5
<PAGE>
ANGELES INCOME PROPERTIES, LTD. II
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES
(Unaudited)
Foreclosures
On March 20, 1995, the Partnership negotiated a Deed in Lieu of
Foreclosure for Executive Plaza Office Park, located in Huntsville,
Alabama. The property was lost to the wrap note holder. The Managing
General Partner believes that the Deed in Lieu of Foreclosure was in the
best interest of the Partnership.
In connection with the foreclosure of Executive Plaza Office Park on
March 20, 1995, the following accounts were adjusted by the following
non-cash amounts:
<TABLE>
<CAPTION>
<S> <C>
Accounts receivable $ (101,035)
Investment properties (4,481,841)
Other assets (88,775)
Taxes 144,629
Tenant security deposits 39,919
Mortgage 5,987,086
Other liabilities 509,904
</TABLE>
6
<PAGE>
e) ANGELES INCOME PROPERTIES, LTD. II
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note A - 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-QSB
and Item 310(b) of Regulation S-B. 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 the Managing General Partner, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the six month period ended June
30, 1995, are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 1995. For further
information, refer to the financial statements and footnotes thereto
included in the Partnership's annual report on Form 10-KSB for the
fiscal year ended December 31, 1994.
Certain reclassifications have been made to the 1994
information to conform to the 1995 presentation.
Note B - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the
Managing General Partner and its affiliates for the management and
administration of all partnership activities. The Partnership Agreement
provides for payments to affiliates for services and as reimbursement of
certain expenses incurred by affiliates on behalf of the Partnership.
The following amounts were paid or accrued to the Managing General
Partner and affiliates for the six months ended June 30, 1995 and 1994:
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
Property management fees $167,845 $176,750
Marketing services 4,613 919
Reimbursement for services of
affiliates 134,685 267,936
</TABLE>
The Partnership insures its properties under a master policy through
an agency and insurer unaffiliated with the Managing General Partner.
An affiliate of the Managing General Partner acquired, in the
acquisition of a business, certain financial obligations from an
insurance agency which was later acquired by the agent who placed the
current year's master policy. The current agent assumed the financial
obligations to the affiliate of the Managing General Partner, who
receives payments on these obligations from the agent. The amount of
the Partnership's insurance premiums accruing to the benefit of the
affiliate of the Managing General Partner by virtue of the agent's
obligations is not significant.
7
<PAGE>
Note B - Transactions with Affiliated Parties - (continued)
Angeles Mortgage Investment Trust, ("AMIT"), a lending trust
sponsored by an affiliate of the Managing General Partner, has provided
financing to the Joint Venture secured by it's investment property in
the amount of $1,320,419 (see Part II, Item 1. Legal Proceedings). This
debt was in default at June 30, 1995 and remains in default at present.
MAE GP Corporation ("MAE GP"), an affiliate of the General
Partner, owns 1,675,113 Class B Shares of AMIT. MAE GP has the option
to convert these Class B Shares, in whole or in part, into Class A
Shares on the basis of 1 Class A Share for every 49 Class B Shares.
These Class B Shares entitle MAE GP to receive 1% of the distributions
of net cash distributed by AMIT. The Class B Shares also entitle MAE GP
to vote on the same basis as Class A Shares which allows MAE GP to vote
approximately 33% of the total shares (unless and until converted to
Class A Shares at which time the percentage of the vote controlled
represented by the Shares held by MAE GP would approximate 1% of the
vote). Between the date of acquisition of these shares (November 24,
1992) and March 31, 1995, MAE GP declined to vote these shares. Since
that date, MAE GP voted its shares at the 1995 annual meeting in
connection with the election of trustees and other matters. MAE GP has
not exerted, and continues to decline to exert, any management control
over or participate in the management of AMIT. However, MAE GP may
choose to vote these shares as it deems appropriate in the future.
As part of a settlement of certain disputes with AMIT, MAE GP
granted to AMIT an option to acquire the Class B Shares. This option
can be exercised at the end of 10 years or when all loans made by AMIT
to partnerships affiliated with MAE GP as of November 9, 1994, (which is
the date of execution of a definitive Settlement Agreement) have been
paid in full, but in no event prior to November 9, 1997. AMIT delivered
to MAE GP cash in the sum of $250,000 at closing, which occurred April
14, 1995, as payment for the option. Upon exercise of the option, AMIT
would remit to MAE GP an additional $94,000.
Simultaneously with the execution of the option, MAE GP
executed an irrevocable proxy in favor of AMIT, the result of which is
MAE GP will be able to vote the Class B Shares on all matters except
those involving transactions between AMIT and MAE GP affiliated
borrowers or the election of any MAE GP affiliate as an officer or
trustee of AMIT. On those matters, MAE GP granted to the AMIT trustees,
in their capacity as trustees of AMIT, proxies with regard to the Class
B Shares instructing such trustees to vote said Class B Shares in
accordance with the vote of the majority of the Class A Shares voting to
be determined without consideration of the votes of "Excess Class A
Shares" as defined in Section 6.13 of the Declaration of Trust of AMIT.
Note C - Investment in Joint Venture
The Partnership owns a 14.4% interest in Princeton Meadows Golf
Course Joint Venture ("Joint Venture"). The Partnership accounts for
the Joint Venture on the equity method.
8
<PAGE>
Note C - Investment in Joint Venture - (continued)
Condensed balance sheet information of the Joint Venture at June
30, 1995, is as follows:
Assets
Cash $ 215,177
Deferred charges and other assets 136,312
Investment properties, net 1,903,381
Total $2,254,870
Liabilities and Partners' Capital
Notes payable to AMIT, in default $1,320,419
Other liabilities 585,478
Partners' capital 348,973
$2,254,870
The condensed statements of operations of the Joint Venture are
summarized as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenue $ 379,075 $ 441,581 $ 483,728 $ 545,935
Costs and expenses (363,196) (312,331) (598,344) (527,927)
Net (loss) income $ 15,879 $ 129,250 $(114,616) $ 18,008
</TABLE>
The Princeton Meadows Golf Course property had an underground fuel
storage tank that was removed in 1992. This fuel storage tank caused
contamination to the area. Reports were filed with the proper
authorities, however, no directives have been given as to corrective
action. The Managing General Partner can not define the extent of the
contamination without further testing. Based on discussions with
environmental engineers, this is a low priority site with the New Jersey
Department of Environmental Protection and any remediation costs are
expected to be immaterial. The Joint Venture is currently under
negotiations to sell the Princeton Meadows Golf Course.
9
<PAGE>
Note D - Gain on Foreclosure of Investment Property
On March 20, 1995, the Partnership negotiated a Deed in Lieu of
Foreclosure for Executive Plaza Office Park located in Huntsville,
Alabama and as a result, the property was transferred to the wrap note
holder. The Managing General Partner believes the Deed In Lieu of
Foreclosure was in the best interest of the Partnership. The
Partnership realized a gain of $1,950,057 on this transaction.
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
Results of Operations
The Partnership's investment properties consist of three apartment
complexes and one commercial property. The following table sets forth
the average occupancy of the properties for the quarters ended June 30,
1995, and June 30, 1994:
Average
Occupancy
Property 1995 1994
Atlanta Crossing Shopping Center
Montgomery, Alabama 89% 83%
Deer Creek Apartments
Plainsboro, New Jersey 95% 92%
Georgetown Apartments
South Bend, Indiana 98% 99%
Landmark Apartments
Raleigh, North Carolina 96% 94%
The Partnership's net income for the six months ended June 30, 1995,
was $1,646,467 versus a net loss of $947,555 for the six months ended
June 30, 1994. The Partnership generated a net loss for the three
months ended June 30, 1995, of $110,284 as compared to a net loss of
$459,272 for the same period in 1994. The increase in net income for
the six month period ended June 30, 1995, is due primarily to the gain
on foreclosure of Executive Plaza Office Park, on March 20, 1995, (see
discussion below).
Total revenues decreased for the three and six month periods ended
June 30, 1995, as compared to the three and six month periods ended June
30, 1994, due to the lost rents related to the foreclosure of Executive
Plaza. This decrease in rents was partially offset by increases in
rental revenue from Deer Creek and Landmark Apartments due to increases
in occupancy. Landmark Apartments also increased rental rates in 1995.
Overall expenses decreased for the three and six month periods ended
June 30, 1994, due primarily to the foreclosure of Executive Plaza. The
decrease in operating expense can also be attributed to reduced land
lease expense at Atlanta Crossing and decreased salaries and utilities
at Deer Creek Apartments. Maintenance expense decreased due to reduced
snow removal as a result of milder weather conditions at the Deer Creek
apartments and lower trash removal costs at Landmark Apartments.
Administrative expenses decreased due to a decrease in reimbursements
for partnership administration costs.
The Partnership has a 14.4% investment in the Princeton Meadows Golf
Course Joint Venture. For the three and six months ended June 30, 1995,
the Partnership realized equity in income and equity in loss of the
Joint Venture of $2,286 and $16,505 respectively, as compared to an
equity in income of the Joint Venture of $18,612 and $2,593 for the
three and six months ended June 30, 1994, respectively. (See Note C -
Investment in Joint Venture). The loss for the six months ended June
30, 1995, can be attributed to bad debt expense recorded during the
year due to reserving uncollectible receivables. In addition, the Joint
Venture has experienced a decrease in association dues from 1994 to
1995.
11
<PAGE>
For the six month period ended June 30, 1995, the Partnership
recognized a loss on disposal of property of $40,328. This loss is made
up of the write off of the net book value of roofs replaced at
Georgetown Apartments in the amount of $47,715 and a gain of $7,388 on
Deer Creek for a unit destroyed by fire damage which was covered by
insurance. During the six months ended June 30, 1994, the Partnership
realized a loss on disposal of assets of $9,168 due to the write off of
the net book value of roofs for a section of Atlanta Crossing that was
re-roofed.
On March 20, 1995, the Partnership negotiated a Deed in Lieu of
Foreclosure for Executive Plaza Office Park located in Huntsville,
Alabama and as a result the property was transferred to the wrap note
holder. The Managing General Partner believes the Deed In Lieu of
Foreclosure was in the best interest of the Partnership. The
Partnership realized a gain of $1,950,057 on this transaction for
the six months ended June 30, 1995.
As part of the ongoing business plan of the Partnership, the Managing
General Partner monitors the rental market environment of each of its
investment properties to assess the feasibility of increasing rents,
maintaining or increasing occupancy levels and protecting the
Partnership from increases in expense. As part of this plan, the
Managing General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents
and maintaining a high overall occupancy level. However, due to
changing market conditions, which can result in the use of rental
concessions and rental reductions to offset softening market conditions,
there is no guarantee that the Managing General Partner will be able to
sustain such a plan.
At June 30, 1995, the Partnership had unrestricted cash of $1,452,355
compared to $763,277 at June 30, 1994. Net cash provided by operating
activities increased primarily as a result of the increase in net income
for the period ended June 30, 1995, as compared to June 30, 1994, and
the increase in other liabilities. Net cash used in investing
activities increased as a result of increased deposits to restricted
escrows and decreased receipts from restricted escrows. Net cash used in
financing activities decreased due to decreased principal payments on
long-term debt primarily related to the foreclosure of Executive Plaza.
The sufficiency of existing liquid assets to meet future liquidity
and capital expenditure requirements is directly related to the level of
capital expenditures required at the property to adequately maintain the
physical assets and other operating needs of the Partnership. Such
assets are currently thought to be sufficient for any near-term needs of
the Partnership. Future cash distributions will depend on the levels of
net cash generated from operations, refinancings, property sales and the
availability of cash reserves.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
AMIT made a loan to the Joint Venture on a non-recourse basis in
September 1991, in the amount of $1,280,000 secured by the Joint
Venture's real property known as Princeton Meadows Golf Course. Due to
default interest and late fees that are delinquent and have been added
to the principal balance, the current balance of this indebtedness is
$1,320,419. AMIT now asserts that the loan is recourse by virtue of a
certain amendment purportedly entered into as of November 1, 1992, but
which the Partnership and the Joint Venture have been informed and
believe were actually executed in December of 1992. The Partnership and
the Joint Venture have been further informed and believe that the
amendment may have been executed at the direction of Angeles Corporation
("Angeles") by an individual in his purported capacity as an officer of
the Managing General Partner of the Partnership and the Joint Venture at
a time when such person was not in fact an officer of such entities. In
the event AMIT prevails in its assertion that the loan is recourse,
rather than a non-recourse loan, the Partnership and the Joint Venture
may have a claim against Angeles for any damages caused by Angeles'
conduct in purporting to enter into the amendment. Accordingly, the
Partnership and the Joint Venture have filed Proofs of Claim in the
Angeles bankruptcy proceeding with respect to such purported amendment.
Additionally, the Partnership filed a Proof of Claim in the Angeles
Funding Corporation and Angeles Real Estate Corporation bankruptcy
proceedings on similar grounds. Both Angeles Funding Corporation and
Angeles Real Estate Corporation are affiliates of Angeles. While a plan
of reorganization in the Angeles bankruptcy case was confirmed in March
1995, Angeles reserved the right to object to certain claims. Angeles
has in fact indicated that it will object to the above described claim.
The pursuit of this claim would be expensive and the outcome uncertain.
In considering all of its options, the Partnership decided that the
costs of pursuing this claim are not warranted in light of all of the
relevant facts and circumstances. The Partnership has been in and
continues to have discussions with AMIT regarding resolution of this
issue. No agreement has been reached with AMIT at this time.
MAE GP Corporation ("MAE GP"), an affiliate of the General
Partner, owns 1,675,113 Class B Shares of AMIT. MAE GP has the option
to convert these Class B Shares, in whole or in part, into Class A
Shares on the basis of 1 Class A Share for every 49 Class B Shares.
These Class B Shares entitle MAE GP to receive 1% of the distributions
of net cash distributed by AMIT. The Class B Shares also entitle MAE GP
to vote on the same basis as Class A Shares which allows MAE GP to vote
approximately 33% of the total shares (unless and until converted to
Class A Shares at which time the percentage of the vote controlled
represented by the shares held by MAE GP would approximate 1% of the
vote). Between the date of acquisition of these shares (November 24,
1992) and March 31, 1995, MAE GP has declined to vote these shares.
Since that date, MAE GP voted its shares at the 1995 annual meeting in
connection with the election of trustees and other matters. MAE GP has
not exerted, and continues to decline to exert, any management control
over or participate in the management of AMIT. However, MAE GP may
choose to vote these shares as it deems appropriate in the future.
13
<PAGE>
As part of a settlement of certain disputes with AMIT, MAE GP
granted to AMIT an option to acquire the Class B Shares. This option
can be exercised at the end of 10 years or when all loans made by AMIT
to partnerships affiliated with MAE GP as of November 9, 1994, (which is
the date of execution of a definitive Settlement Agreement) have been
paid in full, but in no event prior to November 9, 1997. AMIT delivered
to MAE GP cash in the sum of $250,000 at closing, which occurred April
14, 1995, as payment for the option. Upon exercise of the option, AMIT
would remit to MAE GP an additional $94,000.
Simultaneously with the execution of the option, MAE GP executed
an irrevocable proxy in favor of AMIT the result of which is MAE GP will
be able to vote the Class B Shares on all matters except those involving
transactions between AMIT and MAE GP affiliated borrowers or the
election of any MAE GP affiliate as an officer or trustee of AMIT. On
those matters, MAE GP granted to the AMIT trustees, in their capacity as
trustees of AMIT, proxies with regard to the Class B Shares instructing
such trustees to vote said Class B Shares in accordance with the vote of
the majority of the Class A Shares voting to be determined without
consideration of the votes of "Excess Class A Shares" as defined in
Section 6.13 of the Declaration of Trust of AMIT.
Also, Angeles, either directly or through an affiliate, maintained
a central disbursement account (the "Account") for the properties and
partnerships managed by Angeles and its affiliates, including the
Registrant. Angeles caused the Partnership to make deposits to the
Account ostensibly to fund the payment of certain obligations of the
Partnership. Angeles further caused checks on such Account to be
written to or on behalf of certain other partnerships. At least $63,412
deposited by or on behalf of the Partnership was used for purposes other
than satisfying the liabilities of the Partnership. Accordingly, the
Partnership has filed a Proof of Claim in the Angeles bankruptcy
proceedings for such amount. However, subsequently the Managing General
Partner of the Partnership has determined that the cost involved to
pursue such claim would likely exceed any amount received, if in fact
such claim were to be resolved in favor of the Partnership. Therefore,
the Partnership anticipates that it will not pursue its Proof of Claim.
Except as mentioned above, the Partnership is not involved in any
legal proceedings other than those arising in the normal course of
business. The Managing General Partner believes that any losses
experienced as a result of such proceedings will not have a material
adverse effect upon the Partnership's operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit
to this report.
b) Reports on Form 8-K:
None.
14
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ANGELES INCOME PROPERTIES, LTD. II
By: Angeles Realty Corporation II
Managing General Partner
By:
Carroll D. Vinson
President
By:
Robert D. Long, Jr.
Controller and Principal Accounting Officer
Date: August 10, 1995
15
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ANGELES INCOME PROPERTIES, LTD. II
By: Angeles Realty Corporation II
Managing General Partner
By: /s/Carroll D. Vinson
Carroll D. Vinson
President
By: /s/Robert D. Long, Jr.
Robert D. Long, Jr.
Controller and Principal Accounting Officer
Date: August 10, 1995
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Angeles Income Properties, Ltd. II's 1995 second quarter 10-QSB and is
qualified in its entirety by reference to such 10-QSB filing.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,452,355
<SECURITIES> 0
<RECEIVABLES> 46,942
<ALLOWANCES> (29,663)
<INVENTORY> 0
<CURRENT-ASSETS> 1,469,634
<PP&E> 34,256,304
<DEPRECIATION> (20,416,875)
<TOTAL-ASSETS> 16,737,988
<CURRENT-LIABILITIES> 471,354
<BONDS> 16,852,959
<COMMON> 0
0
0
<OTHER-SE> (874,889)
<TOTAL-LIABILITY-AND-EQUITY> 16,737,988
<SALES> 0
<TOTAL-REVENUES> 3,597,141
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,843,898
<LOSS-PROVISION> 0
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<PAGE>
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