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 period ended June 30, 1996
------------------------------------------------------
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 0-14267
---------
MCNEIL REAL ESTATE FUND XXIV, L.P.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 74-2339537
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 700, LB70, Dallas, Texas, 75240
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (214) 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>
MCNEIL REAL ESTATE FUND XXIV, L.P.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- ------- --------------------
BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
--------------- --------------
ASSETS
- ------
Real estate investments:
<S> <C> <C>
Land..................................................... $ 5,949,645 $ 6,781,836
Buildings and improvements............................... 25,457,164 28,462,935
-------------- -------------
31,406,809 35,244,771
Less: Accumulated depreciation and amortization......... (11,126,143) (12,428,415)
-------------- -------------
20,280,666 22,816,356
Asset held for sale......................................... 2,016,188 -
Cash and cash equivalents................................... 1,895,236 2,381,183
Cash segregated for security deposits....................... 86,570 94,780
Accounts receivable......................................... 503,944 433,580
Prepaid expenses and other assets, net...................... 176,297 186,490
-------------- -------------
$ 24,958,901 $ 25,912,389
============== =============
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
- ------------------------------------------
Mortgage note payable....................................... $ 5,484,811 $ 5,538,527
Accounts payable and accrued expenses....................... 245,471 229,628
Payable to affiliates....................................... 43,072 59,527
Advances from affiliates.................................... - 642,581
Security deposits and deferred rental revenue............... 130,340 102,823
-------------- -------------
5,903,694 6,573,086
-------------- -------------
Partners' equity (deficit):
Limited partners - 40,000 limited partnership
units authorized and outstanding at June 30,
1996 and December 31, 1995............................. 19,077,078 19,362,083
General Partner.......................................... (21,871) (22,780)
-------------- -------------
19,055,207 19,339,303
-------------- -------------
$ 24,958,901 $ 25,912,389
============== =============
</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 XXIV, L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------- ---------------------------------
1996 1995 1996 1995
-------------- -------------- -------------- --------------
Revenue:
<S> <C> <C> <C> <C>
Rental revenue................ $ 1,044,933 $ 1,092,840 $ 2,069,769 $ 2,075,167
Interest...................... 27,375 29,700 59,135 55,152
Gain on involuntary
conversion.................. - - 24,663 -
Property tax refund........... - 25,433 20,434 25,433
------------- ------------- ------------- -------------
Total revenue............... 1,072,308 1,147,973 2,174,001 2,155,752
------------- ------------- ------------- -------------
Expenses:
Interest...................... 110,213 108,785 219,037 209,277
Depreciation and
amortization................ 295,240 338,177 628,278 674,612
Property taxes................ 106,192 124,986 228,268 249,972
Personnel costs............... 65,987 69,065 137,963 154,061
Utilities..................... 51,997 46,040 106,700 93,866
Repairs and maintenance....... 105,757 95,878 196,676 191,213
Property management
fees - affiliates........... 61,267 64,048 115,607 117,076
Other property operating
expenses.................... 59,083 58,863 118,382 120,194
General and administrative.... 17,587 45,196 41,042 65,355
General and administrative -
affiliates.................. 143,779 166,077 291,136 322,860
------------- ------------- ------------- -------------
Total expenses.............. 1,017,102 1,117,115 2,083,089 2,198,486
------------- ------------- ------------- -------------
Net income (loss)................ $ 55,206 $ 30,858 $ 90,912 $ (42,734)
============= ============= ============= =============
Net income (loss) allocable
to limited partners........... $ 54,654 $ 30,549 $ 90,003 $ (42,307)
Net income (loss) allocable
to General Partner............ 552 309 909 (427)
------------- ------------- ------------- -------------
Net income (loss)................ $ 55,206 $ 30,858 $ 90,912 $ (42,734)
============= ============= ============= =============
Net income (loss) per limited
partnership unit.............. $ 1.37 $ .76 $ 2.25 $ (1.06)
============= ============= ============= =============
</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 XXIV, L.P.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
For the Six Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
Total
General Limited Partners'
Partner Partners Equity
--------------- --------------- ---------------
<S> <C> <C> <C>
Balance at December 31, 1994.............. $ (5,832) $ 21,039,922 $ 21,034,090
Net loss.................................. (427) (42,307) (42,734)
-------------- -------------- --------------
Balance at June 30, 1995.................. $ (6,259) $ 20,997,615 $ 20,991,356
============= ============= =============
Balance at December 31, 1995.............. $ (22,780) $ 19,362,083 $ 19,339,303
Net income................................ 909 90,003 90,912
Distributions............................. - (375,008) (375,008)
------------- ------------- -------------
Balance at June 30, 1996.................. $ (21,871) $ 19,077,078 $ 19,055,207
============= ============= =============
</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 XXIV, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-----------------------------------------
1996 1995
----------------- ----------------
Cash flows from operating activities:
<S> <C> <C>
Cash received from tenants........................ $ 2,034,780 $ 2,028,495
Cash paid to suppliers............................ (637,055) (619,949)
Cash paid to affiliates........................... (423,198) (415,385)
Interest received................................. 59,135 55,152
Interest paid..................................... (205,085) (190,049)
Property taxes paid............................... (179,540) (161,563)
Property tax refund............................... 20,434 25,433
--------------- --------------
Net cash provided by operating activities............ 669,471 722,134
--------------- --------------
Cash flows from investing activities:
Additions to real estate investments.............. (159,113) (177,427)
Proceeds received from insurance company.......... 75,000 -
--------------- --------------
Net cash used in investing activities................ (84,113) (177,427)
--------------- --------------
Cash flows from financing activities:
Principal payments on mortgage note
payable......................................... (53,716) (77,352)
Distributions paid................................ (375,008) -
Repayment of advances from affiliates............. (642,581) -
--------------- --------------
Net cash used in financing activities................ (1,071,305) (77,352)
--------------- --------------
Net increase (decrease) in cash and cash
equivalents....................................... (485,947) 467,355
Cash and cash equivalents at beginning of
period............................................ 2,381,183 1,720,161
--------------- --------------
Cash and cash equivalents at end of period........... $ 1,895,236 $ 2,187,516
=============== ==============
</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 XXIV, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Income (Loss) to Net Cash Provided by
Operating Activities
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-----------------------------------------
1996 1995
----------------- ----------------
<S> <C> <C>
Net income (loss).................................... $ 90,912 $ (42,734)
--------------- --------------
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Gain on involuntary conversion.................... (24,663) -
Depreciation and amortization..................... 628,278 674,612
Amortization of deferred borrowing costs.......... 15,539 15,539
Amortization of deferred gain..................... - (10,200)
Changes in assets and liabilities:
Cash segregated for security deposits........... 8,210 1,827
Accounts receivable, net........................ (70,364) (44,111)
Prepaid expenses and other assets, net.......... (5,346) 11,785
Accounts payable and accrued expenses........... 15,843 82,208
Payable to affiliates........................... (16,455) 24,551
Security deposits and deferred rental
revenue....................................... 27,517 8,657
--------------- --------------
Total adjustments............................. 578,559 764,868
--------------- --------------
Net cash provided by operating activities............ $ 669,471 $ 722,134
=============== ==============
</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 XXIV, L.P.
Notes to Financial Statements
June 30, 1996
(Unaudited)
NOTE 1.
- -------
McNeil Real Estate Fund XXIV, L.P. (the "Partnership"), formerly known as
Southmark Equity Partners, Ltd., was organized on October 19, 1984, as a limited
partnership under the provisions of the California Revised Limited Partnership
Act to acquire and operate commercial and residential properties. 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, LB70, 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 six months ended June 30, 1996 are
not necessarily indicative of the results to be expected for the year ending
December 31, 1996.
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, 1995, and the notes thereto, as filed with the
Securities and Exchange Commission, which is available upon request by writing
to McNeil Real Estate Fund XXIV, L.P., c/o McNeil Real Estate Management, Inc.,
Investor Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240.
NOTE 3.
- -------
Certain prior period amounts have been reclassified to conform to the current
period presentation.
NOTE 4.
- -------
The Partnership pays property management fees equal to 5% of the gross rental
receipts for its residential properties and 6% of gross rental receipts for its
commercial properties to McNeil Real Estate Management, Inc. ("McREMI"), an
affiliate of the General Partner, for providing property management services for
the Partnership's residential and commercial properties and leasing services for
its residential properties. McREMI may also choose to provide leasing services
for the Partnership's commercial properties, in which case McREMI will receive
property management fees from such commercial properties equal to 3% of the
property's gross rental receipts plus leasing commissions based on the
prevailing market rate for such services where the property is located.
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
<PAGE>
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 or (ii) a value of
$10,000 per apartment unit for residential properties and $50 per gross square
foot for commercial properties 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 or its affiliates are as follows:
Six Months Ended
June 30,
---------------------------
1996 1995
---------- ----------
Property management fees.................. $ 115,607 $ 117,076
Charged to general and administrative -
affiliates:
Partnership administration............. 128,620 155,815
Asset management fee................... 162,516 167,045
--------- ---------
$ 406,743 $ 439,936
========= =========
Payable to affiliates at June 30, 1996 and December 31, 1995 consisted primarily
of unpaid property management fees, Partnership general and administrative
expenses and asset management fees and are due and payable from current
operations.
NOTE 5.
- -------
In December 1995, wind and hail damage occurred at Pine Hills Apartments.
$75,000 was received from the insurance carrier in February 1996. The
Partnership recorded a $24,663 gain on involuntary conversion in 1996, which
represents the amount of insurance reimbursements received in excess of the
basis of the property damaged.
NOTE 6.
- -------
In 1996, the Partnership adopted 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."
This statement requires the cessation of depreciation on assets held for sale.
Since Island Plaza is currently classified as an asset held for sale, no
depreciation has been taken effective April 1, 1996.
<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 the Partnership's
properties since December 31, 1995. The Partnership reported net income for the
first six months of 1996 of $90,912 as compared to a net loss of $42,734 for the
first six months of 1995. Revenues were $2,174,001 in 1996, up from $2,155,752
for the same period in 1995. Expenses decreased to $2,083,089 in 1996, from
$2,198,486 in 1995.
Net cash provided by operating activities was $669,471 for the first six months
of 1996, comparable to the $722,134 provided during the first six months of
1995. The Partnership expended $53,716 for principal payments on its mortgage
note payable, $159,113 for capital improvements, $375,008 in distributions to
the limited partners and repaid $642,581 of advances from affiliates. The
Partnership received $75,000 from the insurance carrier for damaged assets. Cash
and cash equivalents decreased by $485,947 for the first six months of 1996,
leaving a balance of $1,895,236 at June 30, 1996.
RESULTS OF OPERATIONS
- ---------------------
Revenue:
Total revenue decreased by $75,665 for the three months and increased by $18,249
for the six months ended June 30, 1996, as compared to the same periods in 1995.
The overall increase was primarily due to the recognition of a gain on
involuntary conversion and a property tax refund in the first quarter of 1996,
partially offset by a decrease in rental revenue, as discussed below.
Rental revenue decreased by $47,907 and $5,398 for the three and six months
ended June 30, 1996, respectively, in relation to the respective periods in
1995. The decrease was mainly due to a decrease in occupancy at Southpointe
Plaza Shopping Center from 92% at June 30, 1995 to 83% at June 30, 1996.
A gain of involuntary conversion of $24,663 was recognized in the first quarter
of 1996 relating to wind and hail damage at Pine Hills Apartments (see Item 1,
Note 5). No such income was recorded in the first quarter of 1995.
The Partnership received a $20,434 refund of Towne Center's prior years'
property taxes in the first quarter of 1996. In the second quarter of 1995, the
Partnership received refunds of prior years' property taxes totaling $25,433
relating to Riverbay Plaza and Southpointe Plaza Shopping Centers. These refunds
were the result of appeals filed on behalf of the properties.
Expenses:
Total expenses decreased by $100,013 and $115,397 for the three and six months
ended June 30, 1996, respectively, as compared to the same periods in 1995. The
decrease was primarily the result of decreases in property taxes, personnel
costs, general and administrative expenses and general and administrative -
affiliates, partially offset by an increase in utilities, as discussed below.
<PAGE>
Property taxes decreased by $18,794 and $21,704 for the three and six months
ended June 30, 1996, respectively, as compared to the same periods in 1995. The
decrease was primarily attributable to a decrease in the assessed taxable value
of Riverbay Plaza, Southpointe Plaza and Springwood Plaza shopping centers by
taxing authorities as a result of an appeal filed in 1995 by the Partnership on
behalf of the properties.
Personnel costs decreased $3,078 and $16,098 for the first three and six months
ended June 30, 1996, respectively, as compared to the same periods in 1995. The
decrease was mainly due to a refund of prior years' worker's compensation
insurance at Pine Hills Apartments and Sleepy Hollow Apartments in 1996. No such
refund was received in the first six months of 1995.
Utilities increased by $5,957 and $12,834 for the three and six months ended
June 30, 1996, respectively, as compared to the same periods in 1995. The
increase was mainly due to an increase of utility rates and the usage of water
by a tenant at Riverbay Plaza Shopping Center.
General and administrative expenses decreased by $27,609 and $24,313 for the
three and six months ended June 30, 1996, respectively, as compared to the same
periods in 1995. The decrease was mainly due to legal expenses incurred in 1995
involving a tenant's lease at Southpointe Plaza Shopping Center.
General and administrative expenses - affiliates decreased by $22,298 and
$31,724 for the three and six months ended June 30, 1996, respectively, as
compared to the same periods in 1995. The decrease was mainly due to a decrease
in overhead expenses allocated to the Partnership by McREMI.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnership's primary source of cash flows is from operating activities
which generated $669,471 of cash in the first six months of 1996 as compared to
$722,134 for the same period in 1995.
The Partnership received $75,000 from the insurance carrier in 1996 for wind and
hail damage at Pine Hills Apartments (see Item 1, Note 5).
The Partnership made principal payments on the Southpointe Plaza mortgage note
payable of $53,716 and $77,352 in the first six months of 1996 and 1995,
respectively. Under the terms of the mortgage note agreement, the total payment
on the loan was adjusted by the lender in 1995, resulting in a decrease in the
amount of principal payments made on the loan in 1996.
The Partnership distributed $375,008 to the limited partners in the second
quarter of 1996. No distributions were paid to the limited partners in 1995.
The Partnership repaid advances to the general partner of $642,581 in the second
quarter of 1996. No such repayments were made in 1995.
Short-term liquidity:
At June 30, 1996, the Partnership held cash and cash equivalents of $1,895,236.
This balance provides a reasonable level of working capital for the
Partnership's immediate needs in operating its properties.
<PAGE>
For the remainder of 1996, Partnership properties are expected to provide
positive cash flow from operations after payment of debt service and capital
improvements. The Partnership has budgeted $431,000 for necessary capital
improvements for all properties in 1996 which is expected to be funded from
available cash reserves or from operations of the properties. The present cash
balance is believed to provide an adequate reserve for property operations.
The Partnership distributed $375,008 to the limited partners in the second
quarter of 1996. The Partnership anticipates making additional distributions in
the third quarter of 1996 totaling $375,000 to the limited partners of record as
of August 1, 1996.
Long-term liquidity:
Only one property, Southpointe Plaza Shopping Center, is encumbered with
mortgage debt. The Partnership will attempt to obtain refinancing or extension
of the mortgage note when it matures in 1997.
While the outlook for maintenance of adequate levels of liquidity is favorable,
should operations deteriorate and present cash resources become insufficient to
fund current needs, the Partnership would require other sources of working
capital. No such sources have been identified. The Partnership has no
established lines of credit from outside sources. Other possible actions to
resolve cash deficiencies include refinancings, deferral of capital expenditures
on Partnership properties except where improvements are expected to increase the
competitiveness and marketability of the properties, arranging financing from
affiliates or the ultimate sale of the properties. Sales and refinancings are
possibilities only, and there are at present no plans for any such sales or
refinancings other than Island Plaza, which was placed on the market for sale
effective April 1, 1996.
The General Partner has established a revolving credit facility not to exceed
$5,000,000 in the aggregate which is available on a "first-come, first-served"
basis to the Partnership and other affiliated partnerships if certain conditions
are met. Borrowings under the facility may be used to fund deferred maintenance,
refinancing obligations and working capital needs. There is no assurance that
the Partnership will receive any funds under the facility because no amounts are
reserved for any particular partnership. As of June 30, 1996, $4,082,159
remained available for borrowing under the facility; however, additional funds
could become available as other partnerships repay existing borrowings. This
commitment will terminate on March 30, 1997.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
- ------- -----------------
Two class action lawsuits styled Robert Lewis vs. McNeil Partners, L.P., et.
al., filed in the District Court of Dallas County, Texas, and James F.
Schofield, et. al. vs. McNeil Partners, L.P., et. al., filed in the United
States District Court, Southern District of New York, have been voluntarily
dismissed without prejudice by the respective plaintiffs in such actions.
<PAGE>
ITEM 5. OTHER INFORMATION
- ------- -----------------
On August 5, 1996, High River Limited Partnership ("High River"), a partnership
controlled by Carl Icahn ("Icahn"), and certain Icahn's affiliates, filed
documents with the Securities and Exchange Commission disclosing that High River
had entered into a letter agreement dated August 2, 1996 with the attorneys for
the plaintiffs in the case styled James F. Schofield, et. al. ("Plaintiffs") v.
McNeil Partners, L.P., et. al. The letter agreement provided, among other
things, that (i) High River will commence, as soon as possible, but in no event
more than six months, a tender offer for any and all of the outstanding Units of
the Partnership and other affiliated partnerships (the "Partnerships") at a
price that is not less than 75% of the estimated liquidation value of the Units
(as determined by utilizing the same methodology that was used to determine the
liquidation values in High River's previous tender offers for the Partnerships,
as previously disclosed), which tender offer may be subject to such other terms
and conditions as High River determines in its sole discretion; (ii) in the
event that High River attains the position of general partner in any of the
Partnerships: (a) High River will take all actions necessary to cause a 25%
reduction of fees of such Partnerships, (b) High River will not cause such
Partnerships to take any action to discontinue the litigation with respect to
receivable claims and (c) High River and Plaintiffs' counsel will in good faith
execute an appropriate Stipulation of Settlement based upon the terms of the
letter agreement, which stipulation shall not include a settlement or provide a
release of the receivable claims; and (iii) from and after the date of the
letter agreement, Plaintiffs' counsel agreed they will not enter into any
settlement of the claims asserted in such litigation that does not provide for
all consideration contained in a demand letter dated June 24, 1996.
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- ------- --------------------------------
(a) Exhibits.
Exhibit
Number 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).
4.1 Amendment No. 1 to the Amended and Restated
Limited Partnership Agreement of McNeil
Real Estate Fund XXIV, L.P. dated June 1995
(incorporated by reference to the Quarterly
Report of the registrant on Form 10-Q for
the period ended June 30, 1995, as filed on
August 14, 1995).
11. Statement regarding computation of Net
Income (Loss) per Limited Partnership Unit:
Net income (loss) per limited partnership
unit is computed by dividing net income
allocated to the limited partners by the
number of limited partnership units
outstanding. Per unit information has been
computed based on 40,000 limited partnership
units outstanding in 1996 and 1995.
27. Financial Data Schedule for the quarter
ended June 30, 1996.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during
the quarter ended June 30, 1996.
<PAGE>
MCNEIL REAL ESTATE FUND XXIV, 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 XXIV, L.P.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
August 14, 1996 By: /s/ Donald K. Reed
- ---------------------- ---------------------------------------
Date Donald K. Reed
President and Chief Executive Officer
August 14, 1996 By: /s/ Ron K. Taylor
- ---------------------- ---------------------------------------
Date Ron K. Taylor
Acting Chief Financial Officer of
McNeil Investors, Inc.
August 14, 1996 By: /s/ Carol A. Fahs
- ---------------------- ---------------------------------------
Date Carol A. Fahs
Chief Accounting Officer of McNeil Real
Estate Management, Inc.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,895,236
<SECURITIES> 0
<RECEIVABLES> 503,944
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 31,406,809
<DEPRECIATION> (11,126,143)
<TOTAL-ASSETS> 24,958,901
<CURRENT-LIABILITIES> 0
<BONDS> 5,484,811
<COMMON> 0
0
0
<OTHER-SE> 19,055,207
<TOTAL-LIABILITY-AND-EQUITY> 24,958,901
<SALES> 2,069,769
<TOTAL-REVENUES> 2,174,001
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,864,052
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 219,037
<INCOME-PRETAX> 90,912
<INCOME-TAX> 0
<INCOME-CONTINUING> 90,912
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 90,912
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
