SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------
FORM 10-Q
(Mark One)
_X_ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter period ended June 30, 1997
----------------------------------------------------
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 0-14360
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NOONEY INCOME FUND LTD. II, L.P.
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Missouri 43-1357693
- ----------------------------------- -------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7701 Forsyth Boulevard, St. Louis, Missouri 63105
- ----------------------------------------------- -------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 863-7700
-------------------------
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
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 (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 ___.
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12,13, or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes___ No___
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date ________.
-1-
<PAGE>
PART I
ITEM 1 - Financial Statements:
<TABLE>
NOONEY INCOME FUND LTD. II, L.P.
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
<CAPTION>
June 30, December 31,
1997 1996
ASSETS: (Unaudited)
----------- ------------
<S> <C> <C>
Cash and cash equivalents $ 1,337,374 $ 1,323,026
Accounts receivable 262,663 219,655
Investment property, at cost:
Land 2,618,857 2,618,857
Buildings and Improvements 13,428,202 13,405,976
------------ ------------
16,047,059 16,024,833
Less accumulated depreciation (4,022,025) (3,710,204)
------------ ------------
12,025,034 12,314,629
Investment property-held for sale 2,508,487 2,483,469
------------ ------------
14,533,521 14,798,098
Prepaid and Deferred expenses - At amortized cost 152,322 132,327
------------ ------------
$ 16,285,880 $ 16,473,106
============ ============
LIABILITIES AND PARTNERS' EQUITY:
Liabilities:
Accounts payable and accrued expenses $ 52,642 $ 103,331
Accrued real estate taxes 495,255 582,482
Refundable tenant deposits 137,508 125,026
Mortgage note payable 7,143,266 7,190,000
------------ ------------
7,828,671 8,000,839
Partners' Equity 8,457,209 8,472,267
------------ ------------
$ 16,285,880 $ 16,473,106
============ ============
</TABLE>
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
-2-
<PAGE>
<TABLE>
NOONEY INCOME FUND LTD. II, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS AND PARTNERS' EQUITY
(UNAUDITED)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES:
Rental and other income $ 893,028 $ 876,834 $ 1,771,994 $ 1,650,927
Interest 494 1,382 924 6,425
----------- ---------- ----------- -----------
893,522 878,216 1,772,918 1,657,352
EXPENSES:
Interest expense 149,630 153,918 294,740 312,029
Depreciation and amortization 143,500 152,470 376,223 316,642
Real estate taxes 157,048 167,490 272,816 337,377
Property management fees paid to
Nooney Krombach Company 54,109 60,161 107,578 106,514
Reimbursement to Nooney Krombach
Company for partnership management
services and indirect expenses 10,000 6,250 20,000 12,500
Repairs and maintenance 45,574 54,775 86,476 88,029
Professional services 43,567 16,236 122,139 104,619
Utilities 34,406 34,275 69,559 75,283
Payroll 25,193 25,438 51,469 50,455
Cleaning 41,568 44,102 79,215 81,681
Parking lot / landscaping expenses 32,761 33,477 41,561 40,998
Other operating expenses 59,731 91,284 138,716 187,959
----------- ---------- ----------- -----------
797,087 839,876 1,660,492 1,714,086
----------- ---------- ----------- -----------
NET INCOME (LOSS) $ 96,435 $ 38,340 $ 112,426 $ (56,734)
=========== ========== =========== ===========
NET INCOME(LOSS) PER LIMITED
PARTNERSHIP UNIT $ 4.96 $ 1.97 $ 5.79 $ (2.92)
=========== ========== =========== ===========
PARTNERS' EQUITY:
Beginning of Period $ 8,488,258 $8,548,568 $ 8,472,267 $ 8,643,642
Net Income (Loss) 96,435 38,340 112,426 (56,734)
Cash Distribution to Partners (127,484) 0 (127,484) 0
----------- ---------- ----------- -----------
End of Period $ 8,457,209 $8,586,908 $ 8,457,209 $ 8,586,908
=========== ========== =========== ===========
</TABLE>
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
-3-
<PAGE>
<TABLE>
NOONEY INCOME FUND LTD. II, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Six Months Ended
June 30, June 30,
1997 1996
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ 112,426 $ (56,734)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 376,223 316,642
Real estate tax deposits received 0 337,685
Changes in assets and liabilities:
(Increase) Decrease in accounts receivable (43,008) 119,797
Increase in prepaid expenses and deferred assets (50,870) (155,811)
(Decrease) Increase in accounts payable (50,689) 35,016
Decrease in accrued real estate taxes (87,227) (48,901)
Increase in refundable tenant deposits 12,482 13,400
----------- -----------
Total Adjustments 156,911 617,828
----------- -----------
Net cash provided by operating activities 269,337 561,094
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to investment property (80,771) (269,710)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES -
Cash distributions to partners (127,484) 0
Payments on mortgage notes payable (46,734) 0
----------- -----------
Net cash used in financing activities (174,218) 0
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 14,348 291,384
CASH AND CASH EQUIVALENTS, beginning of period 1,323,026 1,092,159
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 1,337,374 $ 1,383,543
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION - Cash paid during year for interest $ 294,740 $ 312,029
=========== ===========
</TABLE>
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
-4-
<PAGE>
NOONEY INCOME FUND LTD. II, L.P.
(A LIMITED PARTNERSHIP)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996
NOTE A:
Refer to the Registrant's financial statements for the year ended December 31,
1996, which are contained in the Registrant's Annual Report on Form 10-K, for a
description of the accounting policies which have been continued without change.
Also, refer to the footnotes to those statements for additional details of the
Registrant's financial condition. The details in those notes have not changed
except as a result of normal transactions in the interim or as noted below.
NOTE B:
The financial statements include only those assets, liabilities, and results of
operations of the partners which relate to the business of Nooney Income Fund
Ltd. II, L.P. The statements do not include assets, liabilities, revenues or
expenses attributable to the partners' individual activities. No provision has
been made for federal and state income taxes since these taxes are the
responsibility of the individual partners. In the opinion of the general
partners, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of operations and
changes in financial position at June 30, 1997 and for all periods presented
have been made. The results of operations for the three and six month periods
ended June 30, 1997, are not necessarily indicative of the results which may be
expected for the entire year.
NOTE C:
The Registrant's properties are managed by Nooney Krombach Company, a
wholly-owned subsidiary of Nooney Company. Certain individual general partners
and a corporate general partner of the Registrant are officers and directors of
Nooney Company. Nooney Income Investments Two, Inc., a general partner, is a 75%
owned subsidiary of Nooney Company.
NOTE D:
The earnings per limited partnership unit for the three and six months ended
June 30, 1997 and 1996 was computed based on 19,221 units, the number of units
outstanding during the periods.
-5-
<PAGE>
ITEM 7: MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
It should be noted that this 10-Q contains forward-looking information (as
defined in the Private Securities Litigation Reform Act of 1995) that involves
risk and uncertainty, including trends in the real estate investment market,
projected leasing and sales, and the future prospects for the Registrant. Actual
results could differ materially from those contemplated by such statements.
Liquidity and Capital Resources
Cash on hand as of June 30, 1997, is $1,337,374 an increase of $14,348 when
compared to the year ended December 31, 1996. The Registrant expects the
properties to fund anticipated capital expenditures for the remainder of 1997.
The anticipated capital expenditures by property are as follows:
Other Capital Leasing Capital Total
------------- --------------- -----
NorthCreek Office Park $ 24,000 $ 84,500 $108,500
Tower Industrial Building 0 0 0
Northeast Commerce Center 0 75,723 75,723
Countryside Executive Center 72,401 269,569 341,970
Leawood Fountain Plaza (24%) 3,360 12,815 16,175
-------- -------- --------
$ 99,761 $442,607 $542,368
======== ======== ========
Leasing Capital at the four properties includes funds for tenant alterations and
lease commissions for new and renewal tenants. Other Capital at NorthCreek
Office Park consists of replacement of the restroom countertops and treatment of
the wood shingle roofs. At Countryside Executive Center, Other Capital consists
of parking lot resurfacing and repairs and painting of the building exterior
siding. Other Capital at Leawood Fountain Plaza consists of sidewalk curb
replacements and renovations to the second floor restrooms.
As previously disclosed, the Registrant feels that the market conditions exist
whereby Countryside Executive Center should be sold due to the extremely high
real estate taxes and ongoing capital expenditures that will be required at the
property. The Registrant has been working with a local brokerage firm to
increase occupancy prior to actively marketing the property for sale. For the
past year, the brokerage firm has worked hard on increasing occupancy, but to
date, no significant leasing progress has been made. The Registrant is reviewing
sale scenarios to determine whether it should sell the property at its current
occupancy level rather than continuing to operate the property while trying to
accomplish additional leasing. The Registrant has reviewed the valuation of the
property and does not believe that Countryside Executive Center needs to incur
additional writedowns because an appraisal was performed by an independent
appraisal firm in December 1996. The appraised value of the property using both
the sales comparison approach ($4,230,000) and the income capitalization
approach ($4,390,000) were both higher than the book value of Countryside
Executive Center at December 31, 1996 and June 30, 1997. While vacancy has
increased since the appraisal was performed, upon review of the underlying
assumptions of the appraisal, the Registrant does not believe that the drop in
occupancy would result in a drop in the value of the property below book value.
The Registrant will keep you updated on its decisions and progress in selling
the property in upcoming quarters.
The future liquidity of the Registrant is dependent on its ability to fund
future capital expenditures from operations and cash reserves and maintain
occupancy. Until such time as the real estate market recovers and profitable
sale of the properties is feasible, the Registrant will continue to manage the
properties to achieve its investment objectives.
-6-
<PAGE>
Results of Operations by Property
The results of operations for the Registrant's properties for the quarters ended
June 30, 1997 and 1996 are detailed in the schedule below. Revenues and expenses
of the Registrant are excluded.
<TABLE>
<CAPTION>
Tower Northeast Countryside Leawood
NorthCreek Industrial Commerce Executive Fountain
Office Park Building Center Center Plaza (24%)
----------- -------- ------ ------ -----------
<S> <C> <C> <C> <C> <C>
1997
----
Revenues $327,131 $50,011 $175,240 $275,563 $73,886
Expenses 279,389 28,387 144,447 243,750 67,018
-------- ------- -------- -------- -------
Net Income (Loss) $ 47,742 $21,624 $ 30,793 $ 31,813 $ 6,868
======== ======= ======== ======== =======
1996
----
Revenues $330,620 $47,007 $124,961 $305,661 $69,720
Expenses 291,868 25,169 157,772 282,303 69,442
-------- ------- -------- -------- -------
Net Income (Loss) $ 38,752 $21,838 $(32,811) $ 23,358 $ 278
======== ======= ======== ======== =======
</TABLE>
At NorthCreek Office Park net income for the quarter ended June 30, 1997 was
$47,742 compared to net income of $38,752 in 1996. The increase in net income of
$8,990 is a result of a decrease in rents of $3,489 and a decrease in expenses
of $12,479. Revenues decreased due to a slight decrease in the occupancy when
comparing the two quarters. Expenses decreased mainly due to decreases in
depreciation expense ($10,344), and repairs and maintenance building ($3,174),
partially offset by an increase in repair and maintenance electric ($1,887) and
real estate taxes ($2,411).
Operating results at Tower Industrial Building remained relatively stable when
comparing the quarter ended June 30, 1997 to the quarter ended June 30, 1995.
The property continues to operate as anticipated.
For the quarter ended June 30, 1997 and 1996, revenues at Northeast Commerce
Center were $175,240 and $124,961, respectively. The increase in revenues of
$50,279 can be attributed to an increase in rental income and escalation income
as a result in an increase in the occupancy. The property's expenses for the
quarter ended June 30, 1997 and 1996, were $144,447 and $157,772, respectively.
The decrease in expenses is attributable to decreases in repairs and maintenance
heating, ventilation, air conditioning ($3,538), real estate taxes ($9,679) and
vacancy expense ($4,226), partially offset by an increase in amortization
($5,815). Operations improved $63,604 when comparing the quarter ended 1997 to
the quarter ended 1996.
Revenues at Countryside Executive Center were $275,563 for the quarter ended
June 30, 1997 and $305,661 for the quarter ended June 30, 1996. Revenues,
therefore, decreased $30,098 when comparing the two periods. The decrease in
revenue is attributable to a decrease in miscellaneous income ($59,719) due to
the receipt of a real estate tax refund in 1996 that is not a reoccurring event
and a decrease in rental income ($16,942) due to a decrease in occupancy,
partially offset by an increase in miscellaneous rental income ($40,186) due to
the holdover of a major tenant paying double rent throughout the quarter.
Expenses at Countryside Executive Center were $243,750 and $282,303 for the
quarters ended June 30, 1997 and June 30, 1996, respectively. This decrease in
expenses of $38,553 can be attributable to a decrease in cleaning expense
($2,702), repairs and maintenance building ($3,312), real estate taxes ($6,499),
advertising ($5,800), and vacancy expense ($11,672), partially offset by
increases in landscaping ($2,276) and professional services other ($6,404).
-7-
<PAGE>
At Leawood Fountain Plaza, net income for the quarter ended June 30, 1997 and
the quarter ended June 30, 1996 was $6,868 and $278, respectively, resulting in
an increase in net income of $6,590 Revenues for the quarter ended June 30, 1997
and June 30, 1996 were $73,886 and $69,720, an increase of $3,608 due to an
increase in escalation income for 1997. Expenses for the quarter ended June 30,
1997, as compared to June 30, 1996, decreased $2,424 due to small increases and
decreases in numerous operating expenses.
The occupancy levels at June 30, 1997 are as follows:
Occupancy levels as of June 30,
-------------------------------
Property 1997 1996 1995
-------- ---- ---- ----
NorthCreek Office Park 97% 99% 93%
Tower Industrial Building 100% 100% 100%
Northeast Commerce Center 87% 87% 56%
Countryside Executive Center 52% 72% 81%
Leawood Fountain Plaza (24%) 90% 93% 93%
Leasing activity during the second quarter of 1997 at NorthCreek Office Park
consisted of the renewal of three tenants occupying 4,301 square feet and one
tenant vacating their space which occupied 1,330 square feet. The office park
has one major tenant with two leases that comprise of 26% and 7% of the
available space. These two leases expire in December 1998 and December 2003,
respectively.
Tower Industrial Building remains leased 100% to a single tenant whose lease
expires April 30, 2000.
There was no leasing activity during the quarter at Northeast Commerce Center.
The property has three major tenants who occupy 50%, 18% and 11% of the property
with leases that expire December 1998, October 1999, and June 2001,
respectively.
Leasing activity during the quarter at Countryside Executive Center consisted of
the Registrant signing two new leases for 6,331 square feet. Renewing one tenant
occupying 3,656 square feet and two tenants vacating their spaces occupying a
total of 12,582 square feet. Occupancy declined to 52% during the quarter. The
property has no major tenants who occupy more than 10% of the available space.
During the second quarter of 1997, leasing activity at Leawood Fountain Plaza
resulted in an increase in occupancy of 2% ending at 90%. The Registrant signed
three new leases for 2,003 square feet and renewed one tenant for 1,613 square
feet. No tenants vacated during the quarter. This property has one major tenant
that leases approximately 10% of the available space with a lease which expires
in July 1999.
-8-
<PAGE>
1997 Comparisons
Consolidated revenues for the three month period ended June 30, 1997 and June
30, 1996, are $893,522 and $878,216, respectively. Consolidated revenues for the
six month period ended June 30, 1997 and June 30, 1996, are $1,772,918 and
$1,657,352, respectively. Revenues increased $15,306 for the three month period
and $115,566 for the six month period ended June 30, 1997 when compared to the
prior period. The increase in revenue is mainly attributable to increases in
base rental revenue and escalation revenue at Northeast Commerce Center. During
the period ended June 30, 1997 and June 30, 1996, consolidated expenses were
$797,087 and $839,876. Consolidated expenses for the six month period ended June
30, 1997 and June 30, 1996, were $1,660,492 and $1,714,086, respectively.
Consolidated expenses decreased $42,789 and $53,594 for the three and six month
periods ended June 30, 1997 when compared to the prior periods. The decrease in
expenses for both the three and six month period are due to decreases in
interest expense, real estate taxes, and other operating expenses, partially
offset by increases in professional services.
1996 Comparisons
For the quarter ended June 30, 1996 consolidated revenues are $878,216 compared
to $441,158 for the quarter ended June 30, 1995. For the six month period ended
June 30, 1996 and 1995 consolidated revenues are $1,657,352 and $900,787,
respectively. The significant increase in consolidated revenues is a direct
result of the purchase of the undivided interest in NorthCreek Office Park
(55%), Countryside Executive Center (50%) and Northeast Commerce Center (55%).
When comparing operating results for the quarter ended June 30, 1996 to 1995 as
if the purchase of the additional undivided interest in the properties occurred
December 31, 1994, consolidated revenues are $878,216 and $816,164,
respectively. For the six month periods ended June 30, 1996 and 1995
consolidated revenues are $1,657,352 and $1,683,269, respectively. The increase
in revenues when comparing similar ownership percentages for the quarter ended
June 30, 1996 to 1995 can be attributed to Countryside Executive Center and a
real estate tax refund received during the second quarter. The decrease in
revenues for the six month period ended June 30, 1996 to 1995 of $25,917 relates
to Countryside Executive Center occupancy level. The average occupancy for the
six month period ended June 30, 1995 was 82% while for the six month period
ended June 30, 1996 average occupancy is 72%. The decrease in rental income at
Countryside Executive Center was offset by the receipt of a real estate tax
refund. The operations of Northeast Commerce Center positively contributed to
the offset of lost rental income at Countryside Executive Center. Revenues
increased at Northeast Commerce Center due to an increase in average occupancy.
Average occupancy for the six month period ended June 30, 1995 was 56% while for
the six month period ended June 30, 1996 average occupancy is 70%.
As of June 30, 1996 and 1995 consolidated expenses for the quarter ended are
$839,875 and $392,412. For the six month period ended June 30, 1996 and 1995
consolidated expenses are $1,714,086 and $807,209, respectively. The significant
increase in consolidated expenses is a direct result of the purchase of the
undivided interest in NorthCreek Office Park (55%), Countryside Executive Center
(50%) and Northeast Commerce Center (55%). When comparing operating results for
the quarter ended June 30, 1996 to 1995 as if the purchase of the additional
undivided interest in the properties occurred December 31, 1994, consolidated
expenses are $839,876 and $744,747, respectively. For the six month period ended
June 30, 1996 and 1995 consolidated expenses are $1,714,086 and $1,518,507,
respectively. The increase in expenses for the quarter ended and six month
period ended June 30, 1996 when compared to June 30, 1995 based on similar
ownership percentages can be attributed to an increase in interest expense and
professional fees offset by a decrease in depreciation expense. Interest expense
increased $153,918 due to the first mortgage debt the Registrant assumed through
the purchase of the undivided interest in NorthCreek Office Park (55%),
Countryside Executive Center (50%) and Northeast Commerce Center (55%). The
-9-
<PAGE>
increase in professional fees relates to the costs associated with the Consent
Proxy. The decrease in depreciation expense can be attributed to Countryside
Executive Center and the reclassification of the property to property held for
sale. With the reclassification of the property effective January 1, 1996, under
generally accepted accounting principals, the asset can no longer be
depreciated.
Inflation
The effects of inflation did not have a material impact upon the Registrant's
operations.
-10-
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
See Exhibit Index on Page 12
(b) Reports on Form 8-K
None
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.
NOONEY INCOME FUND LTD. II, L.P.
Date: August 14, 1997 By: /s/ Gregory J. Nooney, Jr.
------------------- ---------------------------------
Gregory J. Nooney, Jr.
General Partner
PAN, INC.
By: /s/ Patricia A. Nooney
---------------------------------
Patricia A. Nooney
President
NOONEY INCOME INVESTMENTS TWO, INC.
By: /s/ Gregory J. Nooney, Jr.
----------------------------------
Gregory J. Nooney, Jr.
Chairman of the Board / Chief Executive Officer
By: /s/ Patricia A. Nooney
----------------------------------
Patricia A. Nooney
Senior Vice President and Secretary
BEING A MAJORITY OF THE DIRECTORS
-11-
<PAGE>
EXHIBIT INDEX
Exhibit Number Description
- -------------- -----------
3 Amended and Restated Agreement and Certificate of Limited
Partnership, dated February 3, 1986, is incorporated by
reference to the Registrant's Annual Report on Form 10-K
for the fiscal year ended October 31, 1986, as filed
pursuant to Rule 13a-1 of the Securities Exchange Act of
1934 (File No. 0-14360)
27 Financial Data Schedule (provided for the information of
the U.S. Securities and Exchange Commission only)
-12-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR NOONEY INCOME FUND LTD. II, L.P. AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000757764
<NAME> NOONEY INCOME FUND LTD. II, L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,337,374
<SECURITIES> 0
<RECEIVABLES> 262,663
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,600,037
<PP&E> 16,047,059
<DEPRECIATION> (4,022,025)
<TOTAL-ASSETS> 16,285,880
<CURRENT-LIABILITIES> 547,897
<BONDS> 7,143,266
0
0
<COMMON> 0
<OTHER-SE> 8,457,209
<TOTAL-LIABILITY-AND-EQUITY> 16,285,880
<SALES> 1,771,994
<TOTAL-REVENUES> 1,772,918
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,365,752
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 294,740
<INCOME-PRETAX> 112,426
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 112,426
<EPS-PRIMARY> 5.79
<EPS-DILUTED> 0
</TABLE>
