<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 2-82765
REAL EQUITY PARTNERS
A CALIFORNIA LIMITED PARTNERSHIP
I.R.S. EMPLOYER IDENTIFICATION NO. 95-3784125
9090 Wilshire Boulevard, Suite 201,
Beverly Hills, CA 90211
Registrant's Telephone Number,
Including Area Code (310) 278-2191
Securities Registered Pursuant to
Section 12(b) or 12(g) of the Act
NONE
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed with the Commission by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding twelve 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> 2
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1996
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements and Notes to Financial Statements
Balance Sheets, March 31, 1996 and December 31, 1995 .. 1
Statements of Operations,
Three Months Ended March 31, 1996 and 1995 ...... 2
Statement of Partners' Equity,
Three Months Ended March 31, 1996 ............... 3
Statements of Cash Flows,
Three Months Ended March 31, 1996 and 1995 ...... 4
Notes to Financial Statements ......................... 5
Item 2. Management's Discussion and Analysis of Financial
Position and Results of Operations .................... 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings............................................ 12
Item 6. Exhibits and Reports on Form 8-K ............................ 12
Signatures............................................................ 13
</TABLE>
<PAGE> 3
REAL-EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
<TABLE>
<CAPTION>
ASSETS
1996 1995
(Unaudited) (Audited)
------------ ------------
<S> <C> <C>
RENTAL PROPERTY, at cost (Notes 1 and 2)
Land $ 7,077,565 $ 7,077,565
Buildings 26,949,118 26,949,118
Furniture and equipment 4,034,243 4,034,243
------------ ------------
38,060,926 38,060,926
Less accumulated depreciation (14,725,158) (14,497,544)
------------ ------------
23,335,768 23,563,382
------------ ------------
CASH AND CASH EQUIVALENTS 1,735,054 1,794,041
------------ ------------
OTHER ASSETS:
Due from affiliated rental agent 569,192 448,634
Other receivables and prepaid expenses 226,064 225,144
Receivable for earthquake loss (Note 1) 334,591 334,591
------------ ------------
1,129,847 1,008,369
------------ ------------
TOTAL ASSETS $ 26,200,669 $ 26,365,792
============ ============
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Mortgage notes payable (Notes 2 and 7) $ 17,686,608 $ 17,747,363
Accrued fees and expenses due general partner
(Notes 5 and 7) 661,822 651,320
Accrued interest payable 419,890 388,551
Accounts payable and accrued expenses (Note 1) 282,772 269,663
Liability for earthquake loss (Note 1) 620,862 627,738
Tenant security deposits 255,772 255,772
------------ ------------
19,927,726 19,940,407
COMMITMENTS AND CONTINGENCIES (Notes 5 and 6)
PARTNERS' EQUITY 6,272,943 6,425,385
------------ ------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 26,200,669 $ 26,365,792
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
1
<PAGE> 4
REAL-EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
RENTAL OPERATIONS:
Revenues
Rental income $ 1,241,483 $ 1,334,267
Other income 49,022 64,135
----------- -----------
1,290,505 1,398,402
----------- -----------
Expenses
Operating expenses 601,803 612,832
Management fees - affiliate (Note 4) 67,808 73,467
Depreciation (Note 1) 227,614 227,613
General and administrative expenses 72,679 57,763
Interest expense (Note 2) 438,064 448,215
----------- -----------
1,407,968 1,419,890
----------- -----------
Loss from rental operations (117,463) (21,488)
----------- -----------
PARTNERSHIPS OPERATIONS:
Interest income 16,269 4,912
----------- -----------
Expenses
General and administrative expenses 19,481 21,527
Professional fees 21,265 12,123
Interest expense - general partner (Note 5) 10,502 10,387
----------- -----------
51,248 44,037
----------- -----------
Loss from partnership operations (34,979) (39,125)
----------- -----------
NET LOSS $ (152,442) $ (60,613)
=========== ===========
NET LOSS PER LIMITED PARTNERSHIP
INTEREST $ (5) $ (2)
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 5
REAL-EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF PARTNERS' EQUITY (DEFICIENCY)
THREE MONTHS ENDED MARCH 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
PARTNERSHIP INTERESTS,
March 31, 1996 30,000
===========
EQUITY (DEFICIENCY),
January 1, 1996 $ (720,324) $ 7,145,709 $ 6,425,385
Net loss for the three months
ended March 31,1996 (1,525) (150,917) (152,442)
----------- ----------- -----------
EQUITY (DEFICIENCY),
March 31, 1996 $ (721,849) $ 6,994,792 $ 6,272,943
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 6
REAL-EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (152,442) $ (60,613)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation 227,614 227,613
Decrease (increase) in:
Due from affiliated rental agent (120,558) (116,931)
Other receivables and prepaid expenses (920) 9,079
Increase (decrease) in:
Accrued fees and expenses due general partner 10,502 10,387
Accounts payable and accrued expenses 13,109 (13,835)
Accrued interest payable 31,339 --
----------- -----------
Net cash provided by operating activities 8,644 55,700
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on mortgage notes payable (60,755) (81,280)
Payments on liability for earthquake loss (6,876) --
----------- -----------
Net cash used in financing activities (67,631) (81,280)
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (58,987) (25,580)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,794,041 1,195,937
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,735,054 $ 1,170,357
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 7
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The information contained in the following notes to the financial
statements is condensed from that which would appear in the annual audited
financial statements; accordingly, the financial statements included herein
should be reviewed in conjunction with the financial statements and related
notes thereto contained in the annual report for the year ended December
31, 1995 filed by Real Equity Partners (the "Partnership"). National
Partnership Investments Corp. ("NAPICO") is the corporate general partner
of the Partnership. Accounting measurements at interim dates inherently
involve greater reliance on estimates than at year end. The results of
operations for the interim periods presented are not necessarily indicative
of the results for the entire year.
In the opinion of the general partners of the Partnership, the accompanying
unaudited financial statements contain all adjustments (consisting
primarily of normal recurring accruals) necessary to present fairly the
financial position of the Partnership as of March 31, 1996, and the results
of operations for the three months then ended and changes in cash flow for
the three months then ended.
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 reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
RENTAL PROPERTY AND DEPRECIATION
Rental property is stated at cost. Depreciation is provided for on the
straight-line method over the estimated useful lives of the buildings and
equipment.
On January 17, 1994, the Park Creek and Warner Willows I and II rental
properties sustained damage, estimated at approximately $1,454,000, due to
the Northridge earthquake in the Los Angeles area. Insurance proceeds of
approximately $630,000 were allocated to the Partnership in 1994, as the
estimated full settlement under a master umbrella insurance policy covering
earthquake damage for these and other properties managed by a related
party. The total estimated expenditures needed to repair the properties,
net of the insurance recoveries, which nets to approximately $824,000, were
expensed in 1994 since they do not extend the useful life of the
properties.
In April 1996, the Partnership received from the insurance company a final
settlement payment of $334,591 related to the earthquake loss. This was
reflected in income and as a receivable in 1995.
5
<PAGE> 8
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and bank certificates of deposit
with an original maturity of three months or less.
NOTE 2 - MORTGAGE NOTES PAYABLE
Mortgage notes payable consist of the following:
a. Conventional mortgage notes bearing interest at rates ranging from 8%
to 10.375% per annum, payable in monthly installments ranging from
$14,105 to $44,300 per month and having maturity dates from February
1996 to March 2001. These notes total $15,338,225 at March 31, 1996.
b. Mortgage note, insured by the Department of Housing and Urban
Development under the Section 221(d)(4) program, bearing interest at
the rate of 7 percent per annum, payable in monthly installments of
approximately $19,500, including interest through maturity in the year
2013. The note has a balance of $2,348,383 at March 31, 1996.
The mortgage notes are secured by deeds of trust on the rental properties.
In March 1995, the Parkside Apartments rental property ceased making
payments to the mortgage lender and the mortgage is in default. As of
March 31, 1996, the property is delinquent in making mortgage payments
of approximately $443,000 and property taxes of $71,300. The Parkside
Apartments has been operating at a deficit, and the Partnership has
been unsuccessful in its attempt to negotiate a mortgage modification
with the lender to improve the situation. The mortgage lender has
filed a notice of default on January 17, 1996 and has commenced
foreclosure action. A Trust Deed Sale date has been scheduled for May
1996. The carrying value of the Parkside Apartments property, which
approximates fair value, is approximately equal to its related
liabilities. As a result, no loss is anticipated from the pending
foreclosure.
NOTE 3 - INCOME TAXES
No provision has been made for income taxes in the accompanying financial
statements as such taxes, if any, are the liability of the individual
partners.
NOTE 4 - RELATED PARTY TRANSACTIONS
The Partnership has entered into agreements with an affiliate of NAPICO to
manage the operations of the rental properties. The agreements are on a
month-to-month basis and provide, among other things, for a management fee
equal to 5 percent of gross rentals and other collections. Management fees
charged to
6
<PAGE> 9
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996
NOTE 4 - RELATED PARTY TRANSACTIONS (CONTINUED)
operations under this agreement were approximately $67,800 and $73,500 for
the three months ended March 31, 1996 and 1995, respectively.
An affiliate of NAPICO performed certain of the earthquake repairs at the
Park Creek and Warner Willows I and II rental properties. The payments to
this affiliate for these repairs were approximately $737,000 as of December
31, 1995. (Note 1). The remaining earthquake work which shall be funded
from insurance proceeds is estimated to be approximately $226,891 will be
competitively bid. On February 22, 1996, the Partnership entered into
contracts with the affiliate of NAPICO to perform earthquake related
repairs of $107,700 at the damaged properties, of which $7,000 has been
paid as of March 31, 1996.
NOTE 5 - FEES AND EXPENSES DUE GENERAL PARTNER
Under the terms of the Restated Certificate and Agreement of Limited
Partnership (the "Partnership Agreement"), the Partnership is obligated to
the corporate general partner for a deferred acquisition fee. This fee is
for services rendered in connection with the selection, purchase,
acquisition, development, and management of the Partnership and monitoring
the operations of the properties. Distribution of any part of this fee
shall be subordinated to receipt by each Limited Partner of an amount equal
to a cumulative non-compounded 6 percent annual distribution with respect
to the adjusted capital value (as defined in the Partnership Agreement).
The aggregate amount of the deferred acquisition fee distributed in any
year from net cash from operations shall not exceed an amount equal to 3
percent of the investment in properties plus any proceeds from sale or
refinancing of the properties. The deferred acquisition fee shall be an
amount which, when present valued at 8 percent from certain dates as
defined in the Partnership Agreement, equals 10 percent of the gross
proceeds of the offering ($3,000,000). Distribution of deferred acquisition
fees will be made from net cash from operations and net proceeds from sale
or refinancing for a maximum of 15 years, or until the above limit is met.
The present value of the deferred acquisition fee plus accrued interest has
been reflected in the accompanying financial statements and has been
capitalized as part of the cost of rental property acquired. In March 1994,
the Partnership paid approximately $2,300,000 to the corporate general
partner from refinancing proceeds. The amount outstanding as of March 31,
1996 was approximately $662,000.
The Partnership reimburses NAPICO for certain expenses. The reimbursement
paid to NAPICO was $2,676 for the three months ended March 31, 1996 and
1995, and is included in general and administrative expenses.
NOTE 6 - CONTINGENCIES
The corporate general partner of the Partnership is a plaintiff in various
lawsuits and has also been named as defendant in other lawsuits arising
from transactions in the ordinary course of business. In the opinion of
management and the corporate general partner, the claims will not result in
any material liability to the Partnership.
7
<PAGE> 10
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1996
NOTE 7 - FAIR VALUE OF FINANCIAL INSTRUMENTS
Statement of Financial Accounting Standards No. 107, "Disclosure about Fair
Value of Financial Instruments," requires disclosure of fair value
information about financial instruments, when it is practicable to estimate
that value. One of the mortgage notes payable is insured by HUD and is
secured by a rental property. The operations generated by the property are
subject to various government rules, regulations and restrictions which
make it impracticable to estimate the fair value of this mortgage note
payable. The book values of all other debt instruments approximate their
fair values because the interest rates of these instruments are comparable
to rates currently offered to the Partnership. The carrying amount of other
assets and liabilities reported on the balance sheets that require such
disclosure approximates fair value due to their short-term maturity.
8
<PAGE> 11
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1996
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Partnership was formed to invest in residential rental properties
either directly or through investments in joint ventures and other
partnerships which will invest in such real estate. The six buildings owned
by the Partnership were acquired at various dates during 1984 and 1985.
The Partnership's primary sources of funds are income from rental
operations and interest income earned on cash reserves.
Distributions of net cash from operations were normally intended to be made
to the Limited Partners of record on a quarterly basis during the months of
February, May, August, and November pro rata in proportion to the number of
units held. The November 1994 and subsequent distributions to the limited
partners were not made due to the Partnership setting aside funds for
losses incurred by REP as a result of the January 17, 1995 earthquake in
the Los Angeles area. The Partnership will resume distributions to the
limited partners once sufficient funds are in cash reserves to repair such
earthquake damage.
Currently, it is anticipated that the Partnership will continue to meet its
current and long term obligations as they become due.
RESULTS OF OPERATIONS
Rental operations consist primarily of rental income and depreciation
expense, debt service, and normal operating expenses to maintain the
properties. Depreciation is provided on the straight-line method over the
estimated useful lives of the buildings and equipment. Substantially all of
the rental units in the apartment projects are leased on a month-to-month
basis.
An annual property management fee, which shall in any event not exceed 5%
of gross revenues from each property under management, is payable by the
properties to an affiliate of NAPICO.
Occupancy at the Parkside property averaged 78 percent during the first
three months of 1996, 15 percent decrease from the same period in 1995.
Parkside operated at a deficit of approximately $368,718 during the three
months ended March 31, 1996 after accruing for the unpaid interest on the
mortgage, (excluding depreciation and principal payments on the mortgage
loans). In March 1995, the Parkside Apartments rental property ceased
making payments to the mortgage lender. As of March 31, 1996, the property
is delinquent in making mortgage payments of approximately $443,000 and
property taxes of $71,300. The mortgage lender has filed a notice of
default on January 17, 1996, commenced foreclosure action and obtained the
appointment of a Receiver to operate the property. The carrying value of
the Parkside Apartments property, which approximates fair value, is
approximately equal to its related liabilities.
9
<PAGE> 12
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1996
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS (CONTINUED)
Occupancy at the Warner Willows I and II properties averaged 93 percent
during the three months of 1996, a 4 percent decrease from the same period
in 1995. Both properties operated with positive cash earnings for the three
months ended March 31, 1996, (excluding earthquake repair costs,
depreciation and principal payments on the mortgage loans). Positive cash
earnings for the three months ended March 31, 1996 were approximately
$28,000 and $13,000 for Warner Willows I and II, respectively.
Occupancy at the Arbor Glen property averaged 95 percent during the first
three months of 1996 a 1 percent increase from the same period in 1995. The
property operated with a positive cash flows of approximately $88,700
during the first three months of 1996. The existing loan of $5 million
maturing on May 1, 1996 was extended to August 1996 while concurrently
entering into negotiations with Home Savings of America to refinance the
existing loan. A good faith deposit check was given to Home Savings of
America on February 28, 1996.
Occupancy at the Park Creek property averaged 71 percent during the first
three months of 1996, a 15 percent decrease from the same period in 1995.
The property operated with a positive cash flows of approximately $8,700
(excluding earthquake repair costs, depreciation and principal payments on
the mortage loan) during the first three months of 1996.
Occupancy at the Willowbrook property averaged 92 percent during the first
three months of 1996, a 5 percent decrease from the same period in 1995.
The property operated with a positive cash flow of approximately $45,000,
(excluding depreciation and principal payments on the mortgage loan) during
the first three months of 1996.
On January 17, 1994, the Park Creek and Warner Willows I and II rental
properties sustained damage, estimated at approximately $1,454,000, due to
the earthquake in the Los Angeles area. Insurance proceeds of approximately
$630,000 were allocated to the Partnership in 1994, as the estimated
settlement under a master umbrella insurance policy covering earthquake
damage for these and other properties managed by a related party. Included
in liabilities as of March 31, 1996 is approximately $621,000 related to
the earthquake damages. The total estimated expenditures needed to repair
the properties, net of the insurance recoveries, which nets to
approximately $824,000, were expensed in the period ended December 31,
1994, since they did not extend the useful life of the properties. In April
1996, the Partnership received from the insurance company a final
settlement payment of $334,591 related to the earthquake loss. This was
reflected in income and included as a receivable in 1995.
An affiliate of NAPICO performed certain of the earthquake repairs at the
Park Creek and Warner Willows I and II rental properties. The payments to
this affiliate for these repairs were approximately $737,000 as of December
31, 1995. The remaining earthquake work to be performed will be
competitively bid. On February 22, 1996, the Partnership entered into
contracts with the affiliate of NAPICO to perform earthquake related
repairs of $107,700 at the proeprties, of which $7,000 has been paid as of
March 31, 1996.
10
<PAGE> 13
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1996
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS (CONTINUED)
The Partnership operations consist primarily of interest income earned on
certificates of deposit and other temporary investments of funds not
required for investment in projects. The amount of interest income varies
with market rates available on certificates of deposit and with the amount
of funds available for investment.
Operating expenses of the Partnership consist substantially of recurring
general and administrative expenses and professional fees for services
rendered to the Partnership and interest on the deferred acquisition fee
due the General Partners.
The Partnership is incurring interest expense at a rate of 8 percent per
annum on the unpaid fees due the general partner. Under the terms of the
Partnership Agreement, the Partnership is obligated to the general partner
for a deferred acquisition fee for services rendered in connection with the
selection, purchase, development, management and monitoring the operations
of the properties, in an amount which, when calculated on a present value
basis (using a discount factor of 8 percent for this purpose) from the date
of payment to the general partners to September 27, 1984 equals 10 percent
of the gross proceeds of the offering ($3,000,000). Distribution of any
part of this fee from net cash from operations shall be subordinate to
receipt by each Limited Partner of an amount equal to a cumulative
noncompounded 6% distribution. The acquisition fee distributed in any year
from net cash from operations shall not exceed an amount equal to 3 percent
of investment in properties (approximately $600,000) plus any proceeds from
sale or refinancing of the properties. An annual property management fee,
which shall not in any event exceed 5% of gross revenues from each property
under management, is also payable to an affiliate of the corporate general
partner. On March 21, 1994, the excess proceeds received from the Park
Creek and the Warner Willows I and II refinancings were used to partially
pay the deferred acquisition fees due the general partner. The amount
outstanding as of March 31, 1996 was approximately $662,000.
11
<PAGE> 14
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1996
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As of March 31, 1996, the Partnership's corporate general partner was a
plaintiff or defendant in several lawsuits. None of these were related to the
Partnership.
John Hancock Mutual Life Insurance Company v. Real-Equity Partners (Case No.
276301) Superior Court State of California, County of Riverside.
In this action John Hancock, as lender for the Parkside Apartments, commenced an
action to foreclose on the mortgage and to obtain a Receiver to operate the
property. As of March 31, 1996, Parkside Apartments was delinquent in making
mortgage payments in the approximate amount of $443,000 and property taxes in
the amount of $71,300. The Partnership has filed an answer. However, a Receiver
was appointed by the Court in March 1996 and is now operating the property. It
is likely that a foreclosure will occur in the near future.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No exhibits are required per the provision of Item 7 of regulation S-K.
12
<PAGE> 15
REAL EQUITY PARTNERS
(A CALIFORNIA LIMITED PARTNERSHIP)
MARCH 31, 1996
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.
REAL EQUITY PARTNERS
(a California limited partnership)
By: National Partnership Investments Corp.
Corporate General Partner
Date: ______________________________________
By: ______________________________________
Bruce Nelson
President
Date: ______________________________________
By: ______________________________________
Shawn Horwitz
Executive Vice President and
Chief Financial Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
PARTHERSHIP'S STATEMENTS OF EARNINGS AND BALANCE SHEETS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,735,054
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,864,901
<PP&E> 38,060,926
<DEPRECIATION> 14,725,158
<TOTAL-ASSETS> 26,200,669
<CURRENT-LIABILITIES> 944,594
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 6,272,943
<TOTAL-LIABILITY-AND-EQUITY> 26,200,669
<SALES> 0
<TOTAL-REVENUES> 1,306,774
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,010,650
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 448,566
<INCOME-PRETAX> (152,442)
<INCOME-TAX> 0
<INCOME-CONTINUING> (152,442)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (152,442)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
