UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
-------------------------------------------
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 0-14007
--------
MCNEIL REAL ESTATE FUND XX, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 33-0050225
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 600, LB70, Dallas, Texas, 75240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (972) 448-5800
-----------------------------
Indicate by check mark whether the registrant, (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months 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
MCNEIL REAL ESTATE FUND XX, L.P.
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
--------------- --------------
ASSETS
- ------
Real estate investments:
<S> <C> <C>
Land..................................................... $ 392,000 $ 392,000
Buildings and improvements............................... 3,888,579 3,882,558
-------------- -------------
4,280,579 4,274,558
Less: Accumulated depreciation.......................... (1,350,394) (1,290,949)
-------------- -------------
2,930,185 2,983,609
Mortgage loan investments, net of allowance of
$792,013 at March 31, 1998 and
December 31, 1997........................................ 3,234,247 3,268,712
Mortgage loan investments - affiliate, net of allowance
of $130,000 at March 31, 1998 and
December 31, 1997........................................ 3,595,987 3,600,076
Cash and cash equivalents .................................. 631,242 1,824,293
Cash segregated for security deposits....................... 31,911 27,405
Interest and other accounts receivable...................... 106,834 140,025
Escrow deposits............................................. 205,387 162,652
Deferred borrowing costs, net of accumulated
amortization of $64,205 and $60,222 at March 31,
1998 and December 31, 1997, respectively................. 97,289 101,272
Prepaid expenses and other assets........................... 4,200 4,200
-------------- -------------
$ 10,837,282 $ 12,112,244
============== =============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
- ------------------------------------------
Mortgage note payable, net.................................. $ 2,653,907 $ 2,666,814
Accounts payable and other accrued expenses................. 43,135 61,994
Accrued property taxes...................................... 173,661 137,050
Payable to affiliates....................................... 267,576 203,444
Deferred revenue............................................ 25,573 27,229
Security deposits and deferred rental revenue............... 28,043 29,494
-------------- -------------
3,191,895 3,126,025
-------------- -------------
Partners' equity (deficit):
Limited partners - 60,000 limited partnership units
authorized; 49,512 limited partnership units issued and
outstanding at March 31, 1998 and December 31, 1997.... 7,940,437 9,282,684
General Partner.......................................... (295,050) (296,465)
-------------- -------------
7,645,387 8,986,219
-------------- -------------
$ 10,837,282 $ 12,112,244
============== =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
McNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------------
1998 1997
-------------- --------------
Revenue:
<S> <C> <C>
Rental revenue............................................. $ 337,688 $ 330,636
Interest income on mortgage loan investments............... 69,496 67,757
Interest income on mortgage loan investments -
affiliate................................................. 108,214 15,137
Other interest income....................................... 22,163 37,053
------------- -------------
Total revenue............................................. 537,561 450,583
------------- -------------
Expenses:
Interest.................................................... 61,304 62,131
Depreciation................................................ 59,445 85,587
Property taxes.............................................. 36,892 44,419
Personnel costs............................................. 40,797 41,862
Utilities................................................... 20,225 19,616
Repairs and maintenance..................................... 28,876 49,826
Property management fees - affiliates....................... 14,994 16,226
Other property operating expenses........................... 20,709 28,033
General and administrative.................................. 48,435 34,784
General and administrative - affiliates..................... 64,400 64,757
------------- -------------
Total expenses............................................ 396,077 447,241
------------- -------------
Net income..................................................... $ 141,484 $ 3,342
============= =============
Net income allocable to limited partners....................... $ 140,069 $ 3,309
Net income allocable to General Partner........................ 1,415 33
------------- -------------
Net income..................................................... $ 141,484 $ 3,342
============= =============
Net income per limited partnership unit........................ $ 2.83 $ .07
============= =============
Distributions per limited partnership unit..................... $ 29.94 $ 15.15
============= =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
For the Three Months Ended March 31, 1998 and 1997
<TABLE>
<CAPTION>
Total
General Limited Partners'
Partner Partners Equity (Deficit)
--------------- -------------- ----------------
<S> <C> <C> <C>
Balance at December 31, 1996.............. $ (318,863) $ 10,315,277 $ 9,996,414
Net income................................ 33 3,309 3,342
Distributions to limited partners......... - (749,994) (749,994)
------------- ------------- -------------
Balance at March 31, 1997................. $ (318,830) $ 9,568,592 $ 9,249,762
============= ============= =============
Balance at December 31, 1997.............. $ (296,465) $ 9,282,684 $ 8,986,219
Net income................................ 1,415 140,069 141,484
Distributions to limited partners......... - (1,482,316) (1,482,316)
------------- ------------- -------------
Balance at March 31, 1998................. $ (295,050) $ 7,940,437 $ 7,645,387
============= ============= =============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------------------
1998 1997
------------------- ----------------
Cash flows from operating activities:
<S> <C> <C>
Cash received from tenants........................ $ 364,529 $ 324,076
Cash paid to suppliers............................ (173,329) (229,469)
Cash paid to affiliates........................... (15,262) (78,399)
Interest received................................. 90,074 105,759
Interest received from affiliate.................. 108,131 12,222
Interest paid..................................... (55,301) (56,473)
Property taxes paid............................... (281) (105)
Property taxes escrowed........................... (46,800) (32,500)
----------------- --------------
Net cash provided by operating activities............ 271,761 45,111
----------------- --------------
Cash flows from investing activities:
Additions to real estate investments.............. (6,021) (3,769)
Collection of principal on mortgage loan
investments..................................... 34,465 33,669
Collection of principal on mortgage loan
investments - affiliate......................... 4,089 -
----------------- --------------
Net cash provided by investing activities............ 32,533 29,900
----------------- --------------
Cash flows from financing activities:
Principal payments on mortgage note payable....... (15,029) (13,857)
Distributions to limited partners................. (1,482,316) (749,994)
----------------- --------------
Net cash used in financing activities................ (1,497,345) (763,851)
----------------- --------------
Net decrease in cash and cash equivalents............ (1,193,051) (688,840)
Cash and cash equivalents at beginning of
period............................................ 1,824,293 3,188,257
----------------- --------------
Cash and cash equivalents at end of period........... $ 631,242 $ 2,499,417
================= ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Income to Net Cash Provided by
Operating Activities
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------------
1998 1997
---------------- ---------------
<S> <C> <C>
Net income........................................... $ 141,484 $ 3,342
--------------- --------------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation...................................... 59,445 85,587
Amortization of deferred borrowing costs.......... 3,983 3,737
Amortization of discount on mortgage note
payable......................................... 2,122 2,015
Changes in assets and liabilities:
Cash segregated for security deposits........... (4,506) (3,918)
Interest and other accounts receivable.......... 33,191 (2,631)
Escrow deposits................................. (42,735) 100,866
Prepaid expenses and other assets............... - 834
Accounts payable and other accrued
expenses...................................... (18,859) (56,549)
Accrued property taxes.......................... 36,611 (86,643)
Payable to affiliates........................... 64,132 2,584
Deferred revenue................................ (1,656) (1,656)
Security deposits and deferred rental
revenue....................................... (1,451) (2,457)
--------------- --------------
Total adjustments............................. 130,277 41,769
--------------- --------------
Net cash provided by operating activities............ $ 271,761 $ 45,111
=============== ==============
</TABLE>
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
Notes to Financial Statements
March 31, 1998
(Unaudited)
NOTE 1.
- -------
McNeil Real Estate Fund XX, L.P. (the "Partnership"), formerly known as
Southmark Income Investors, Ltd., was organized on July 19, 1984 as a limited
partnership under the provisions of the California Revised Uniform Limited
Partnership Act. The general partner of the Partnership is McNeil Partners, L.P.
(the "General Partner"), a Delaware limited partnership, an affiliate of Robert
A. McNeil ("McNeil"). The principal place of business for the Partnership and
the General Partner is 13760 Noel Road, Suite 700, Dallas, Texas 75240.
In the opinion of management, the financial statements reflect all adjustments
necessary for a fair presentation of the Partnership's financial position and
results of operations. All adjustments were of a normal recurring nature.
However, the results of operations for the three months ended March 31, 1998 are
not necessarily indicative of the results to be expected for the year ending
December 31, 1998.
NOTE 2.
- -------
The financial statements should be read in conjunction with the financial
statements contained in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 1997, and the notes thereto, as filed with the
Securities and Exchange Commission, which is available upon request by writing
to McNeil Real Estate Fund XX, L.P., c/o McNeil Real Estate Management, Inc.,
Investor Services, 13760 Noel Road, Suite 600, LB70, Dallas, Texas 75240.
NOTE 3.
- -------
Certain prior period amounts have been reclassified to conform with the current
period presentation.
NOTE 4.
- -------
The Partnership pays property management fees equal to 5% of the gross rental
receipts for its properties to McNeil Real Estate Management, Inc. ("McREMI"),
an affiliate of the General Partner, for providing property management services.
Under the terms of its partnership agreement, the Partnership pays a disposition
fee to an affiliate of the General Partner equal up to 3% of the gross sales
price for brokerage services performed in connection with the sale of the
Partnership's properties, provided, however, that in no event shall all real
estate commissions (including the disposition fee) paid to all persons exceed
the amount customarily charged in similar arms-length transactions. The fee is
due and payable at the time the sale closes. The Partnership incurred $124,500
of such fees during 1997 in connection with the sale of 1130 Sacramento
Condominiums. This amount represents 2.65% of the gross sales price. These fees
have not yet been paid by the Partnership and are included in payable to
affiliates on the Balance Sheets at March 31, 1998 and December 31, 1997.
<PAGE>
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
The Partnership is paying an asset management fee which is payable to the
General Partner. Through 1999, the asset management fee is calculated as 1% of
the Partnership's tangible asset value. Tangible asset value is determined by
using the greater of (i) an amount calculated by applying a capitalization rate
of 9% to the annualized net operating income of each property, (ii) a value of
$10,000 per apartment unit or (iii) on 1130 Sacramento, the net book value of
the property is used to arrive at the property tangible asset value. The
property tangible asset value is then added to the book value of all other
assets excluding intangible items. The fee percentage decreases subsequent
to 1999.
Compensation and reimbursements paid to or accrued for the benefit of the
General Partner and its affiliates are as follows:
Three Months Ended
March 31,
--------------------------
1998 1997
--------- ----------
Property management fees..................... $ 14,994 $ 16,226
Charged to general and administrative -
affiliates:
Partnership administration................ 25,167 26,579
Asset management fee...................... 39,233 38,178
-------- ---------
$ 79,394 $ 80,983
======== =========
Payable to affiliates at March 31, 1998 and December 31, 1997 consisted
primarily of unpaid property management fees, disposition fees, Partnership
general and administrative expenses and asset management fees and are due and
payable from current operations.
NOTE 5.
- -------
The Partnership's mortgage loan investments - affiliate are secured by first and
second liens on Fort Meigs Plaza Shopping Center, which is owned by an affiliate
of the General Partner. On April 20, 1998, Fort Meigs Plaza was sold to a
non-affiliate for a gross sales price of $3.8 million. The Partnership received
$3,615,354 as payment in full for both principal and interest receivable on the
loans.
NOTE 6.
- -------
The mortgage loan investment secured by Idlewood Nursing Home matured in
February 1998. On May 1, 1998, the Partnership received $2.4 million from the
borrower as payment in full for both principal and interest receivable on the
loan (the actual balance of the loan is greater than the book value). Since the
Partnership owns an 83% participation interest in the note, $408,000 of the $2.4
million settlement is payable to the owner of the remaining 17% of the note.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------- ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FINANCIAL CONDITION
- -------------------
There has been no significant change in the operations of Sterling Springs
Apartments; 1130 Sacramento Condominiums was sold in August 1997.
The Partnership reported net income of $141,484 for the first three months of
1998 as compared to $3,342 for the same period in 1997. Revenues in 1998
increased to $537,561 from $450,583 in 1997, while expenses were $396,077 in
1998 as compared to $447,241 in 1997.
Net cash provided by operating activities was $271,761 for the three months
ended March 31, 1998. The Partnership expended $6,021 for capital improvements,
made $15,029 in principal payments on its mortgage note payable and distributed
$1,482,316 to the limited partners. After receiving $34,465 of principal on
mortgage loan investments and $4,089 of principal on mortgage loan investments -
affiliate, cash and cash equivalents totaled $631,242 at March 31, 1998, a net
decrease of $1,193,051 from the balance at December 31, 1997.
RESULTS OF OPERATIONS
- ---------------------
Revenue:
Total revenue increased by $86,978 for the three month period ended March 31,
1998 as compared to the same period in 1997. The increase was mainly due to an
increase in interest income on mortgage loan investments - affiliate, partially
offset by a decrease in other interest income, as discussed below.
In the first three months of 1998, interest income on mortgage loan investments
- - affiliates increased by $93,077 as compared to the first three months of 1997.
In 1993, the Partnership acquired a second lien loan on a property owned by an
affiliate. The Partnership purchased the first lien loan on this property in
December 1997. The first quarter of 1997 includes interest on the second lien
loan only while 1998 includes interest on both the first and second lien loans.
Other interest income decreased by $14,890 for the three month period ended
March 31, 1998 as compared to the same period in 1997. The overall decrease was
the result of a decrease in cash available for short-term investment in the
first quarter of 1998, mainly due to the payment of distributions to limited
partners.
Expenses:
Total expenses for the three month period ended March 31, 1998 decreased by
$51,164 as compared to the same period in 1997. The decrease was mainly due to
the sale of 1130 Sacramento Condominiums in August 1997, which incurred
approximately $55,000 of expenses in the first quarter of 1997.
<PAGE>
Depreciation expense for the three months ended March 31, 1998 decreased by
$26,142 in relation to the same period in 1997. The decrease was due to 1130
Sacramento Condominiums being classified as an asset held for sale by the
Partnership effective April 15, 1997. In accordance with the Financial
Accounting Standards Board's Statement of Financial Accounting Standards No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of," the Partnership ceased recording depreciation on the
asset at the time it was placed on the market for sale.
For the quarter ended March 31, 1998, property taxes decreased by $7,527 in
relation to the comparable period in the prior year, mainly due to the sale of
1130 Sacramento in the third quarter of 1997.
Repairs and maintenance decreased by $20,950 for the first three months of 1998
as compared to the first three months of 1997. $4,355 of the decrease was
attributable to 1130 Sacramento, which was sold in August 1997. The remaining
decrease was due to a greater amount of turnover and expenses incurred to
maintain occupancy at Sterling Springs Apartments in the first quarter of 1997.
In the first three months of 1998, other property operating expenses decreased
by $7,324 as compared to the first three months of 1997. The decrease was mainly
due to a $5,000 deductible paid by the Partnership in the first quarter of 1997
for a minor tenant claim settled by the Partnership's insurance carrier.
General and administrative expenses increased by $13,651 for the three months
ended March 31, 1998 in relation to the comparable period in 1997. The increase
was mainly due to costs incurred to explore alternatives to maximize the value
of the Partnership (see Liquidity and Capital Resources).
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnership generated $271,761 of cash through operating activities for the
first three months of 1998 as compared to $45,111 generated during the first
three months of 1997. The increase in 1998 was partially due to an increase in
interest received from affiliate and a decrease in cash paid to suppliers (see
discussion of changes in corresponding revenue and expense accounts, above). In
addition, there was a decrease in cash paid to affiliates in 1998.
The Partnership distributed $1,482,316 and $749,994 to the limited partners
during the three months ended March 31, 1998 and 1997, respectively.
Short-term liquidity:
At March 31, 1998, the Partnership held cash and cash equivalents of $631,242.
This balance provides a reasonable level of working capital for the
Partnership's immediate needs in operating its remaining property.
In 1998, the operation of Sterling Springs Apartments, the Partnership's only
remaining property, is expected to provide sufficient positive cash flow for
normal operations. Management will perform routine repairs and maintenance on
the property to preserve and enhance its value and competitiveness in the
market. Capital improvements to the Partnership's property in 1998 are expected
to be funded from operations of the property.
<PAGE>
The mortgage loan investment secured by Idlewood Nursing Home matured in
February 1998. On May 1, 1998, the Partnership received $2.4 million from the
borrower as payment in full for both principal and interest receivable on the
loan (the actual balance of the loan is greater than the book value). Since the
Partnership owns an 83% participation interest in the note, $408,000 of the $2.4
million settlement is payable to the owner of the remaining 17% of the note.
The first and second lien mortgage loan investments - affiliate secured by Fort
Meigs Plaza matured in March 1998 and September 1997, respectively. The
borrowing partnership sold the property to a non-affiliate in April 1998 for
$3.8 million. The Partnership received $3,615,354 as payment in full for both
principal and interest receivable on the loans.
For 1998, management expects that cash from operations of its property and
principal and interest collections on the mortgage loan investments, along with
the present balance of cash and cash equivalents held, will allow the
Partnership to meet its obligations as they come due.
Long-term liquidity:
The Partnership's property, Sterling Springs Apartments, is encumbered with
mortgage debt. The mortgage is not due until 2003.
In the event that the Partnership acquires ownership of other properties through
foreclosure, the cash and cash equivalent balances presently held will provide a
source for the maintenance and improvement of the properties. Because the timing
and number of properties which may be foreclosed is uncertain, there is no
assurance that the balances presently held will be sufficient for needed capital
improvements. At present, there are no commitments nor any known needs for
improvements to the properties securing the Partnership's loans except for
Idlewood Nursing Home which is in need of approximately $300,000 in capital
improvements. The Partnership has no existing lines of credit from outside
sources.
Another possible source of funds is the sale of the Partnership's mortgage loan
investments or of the properties securing the Partnership's mortgage loans. Such
sales are possibilities only, and since the Partnership does not control the
properties securing its loans, sales of those properties may occur only if
initiated by the borrower or in the event of foreclosure by the Partnership.
There is no assurance that any sales can be contracted or closed to coincide
with the Partnership's future cash needs. For the long term, the Partnership
will remain dependent on operations of the property it owns or of the properties
securing its loans as the primary source of debt repayment, until the properties
can be sold.
Pursuant to the Partnership's previously announced liquidation plans, the
Partnership has recently retained PaineWebber, Incorporated as its exclusive
financial advisor to explore alternatives to maximize the value of the
Partnership. The alternatives being considered by the Partnership include,
without limitation, a transaction in which limited partnership interests in the
Partnership are converted into cash. The General Partner of the Partnership or
entities or persons affiliated with the General Partner will not be involved as
a purchaser in any of the transactions contemplated above. Any transaction will
be subject to certain conditions including (i) approval by the limited partners
of the Partnership, and (ii) receipt of an opinion from an independent financial
advisory firm as to the fairness of the consideration received by the
Partnership pursuant to such transaction. Finally, there can be no assurance
that any transaction will be consummated, or as to the terms thereof.
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- ------- --------------------------------
(a) Exhibits.
Exhibit
Number Document Description
------- ---------------------
4. Amended and Restated Limited Partnership
Agreement dated March 30, 1992. (Incorpo-
rated by reference to the Current Report of
the registrant on Form 8-K dated March 30,
1992, as filed on April 10, 1992).
11. Statement regarding computation of Net
Income per Limited Partnership Unit: Net
income per limited partnership unit is
computed by dividing net income allocated to
the limited partners by the weighted average
number of limited partnership units
outstanding. Per unit information has been
computed based on 49,512 limited partnership
units outstanding in 1998 and 1997.
27. Financial Data Schedule for the quarter
ended March 31, 1998.
(b) Reports on Form 8-K. A Form 8-K with respect to Item 2 dated
April 20, 1998 was filed on May 5, 1998 regarding the payoff of the
Fort Meigs Plaza mortgage loan investments - affiliate and the
Idlewood Nursing Home mortgage loan investment.
<PAGE>
MCNEIL REAL ESTATE FUND XX, L.P.
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:
McNEIL REAL ESTATE FUND XX, L.P.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
May 14, 1998 By: /s/ Ron K. Taylor
- ------------ -----------------------------------------
Date Ron K. Taylor
President and Director of McNeil
Investors, Inc.
(Principal Financial Officer)
May 14, 1998 By: /s/ Carol A. Fahs
- ------------ -----------------------------------------
Date Carol A. Fahs
Vice President of McNeil Investors, Inc.
Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 631,242
<SECURITIES> 0
<RECEIVABLES> 106,834
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 4,280,579
<DEPRECIATION> (1,350,394)
<TOTAL-ASSETS> 10,837,282
<CURRENT-LIABILITIES> 0
<BONDS> 2,653,907
0
0
<COMMON> 0
<OTHER-SE> 7,645,387
<TOTAL-LIABILITY-AND-EQUITY> 10,837,282
<SALES> 337,688
<TOTAL-REVENUES> 537,561
<CGS> 162,493
<TOTAL-COSTS> 221,938
<OTHER-EXPENSES> 112,835
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 61,304
<INCOME-PRETAX> 141,484
<INCOME-TAX> 0
<INCOME-CONTINUING> 141,484
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 141,484
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
