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, 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 0-14360
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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.)
500 N. Broadway, Ste. 1200, St. Louis, Missouri 63102
- ------------------------------------------------ -------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 206-4600
-----------------------------
- --------------------------------------------------------------------------------
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 _______.
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PART I
ITEM 1 - Financial Statements:
- -----------------------------
NOONEY INCOME FUND LTD. II, L.P.
--------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
BALANCE SHEETS
--------------
June 30, December 31,
1998 1997
ASSETS: (Unaudited)
----------- ------------
Cash and cash equivalents $ 1,026,409 $ 1,378,138
Accounts receivable 155,213 152,950
Prepaid expenses and deposits 48,162 17,052
Investment property, at cost:
Land 2,618,857 2,618,857
Buildings and Improvements 13,570,562 13,517,224
------------ ------------
16,189,419 16,136,081
Less accumulated depreciation (4,462,026) (4,194,255)
------------ ------------
11,727,393 11,941,826
Investment property-held for sale 2,804,649 2,802,714
------------ ------------
14,532,042 14,744,540
Prepaid and Deferred expenses - At
amortized cost 270,552 271,024
------------ ------------
$ 16,032,378 $ 16,563,704
============ ============
LIABILITIES AND PARTNERS' EQUITY:
Liabilities:
Accounts payable and accrued expenses $ 167,717 $ 480,609
Accrued real estate taxes 508,408 556,902
Refundable tenant deposits 197,833 148,774
Mortgage note payable 7,046,204 7,096,532
------------ ------------
7,920,162 8,282,817
Partners' Equity 8,112,216 8,280,887
------------ ------------
$ 16,032,378 $ 16,563,704
============ ============
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
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NOONEY INCOME FUND LTD. II, L.P.
--------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
STATEMENTS OF OPERATIONS AND PARTNERS' EQUITY
---------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Rental and other income $ 899,041 $ 893,028 $ 1,774,358 $ 1,771,994
Interest 0 494 0 924
----------- ----------- ----------- -----------
899,041 893,522 1,774,358 1,772,918
EXPENSES:
Interest expense 148,507 149,630 294,527 294,740
Depreciation and amortization 183,867 143,500 378,743 376,223
Real estate taxes 153,452 157,048 307,488 272,816
Property management fees paid to
Nooney Inc. 53,401 54,109 104,659 107,578
Reimbursement to Nooney Inc.
for partnership management
services and indirect expenses 10,000 10,000 20,000 20,000
Repairs and maintenance 66,140 45,574 110,633 86,476
Professional services 22,628 43,567 44,828 122,139
Utilities 34,470 34,406 72,242 69,559
Payroll 24,140 25,193 46,722 51,469
Cleaning 42,082 41,568 82,484 79,215
Parking lot / landscaping expenses 37,970 32,761 47,035 41,561
Other operating expenses 96,614 59,731 178,712 138,716
----------- ----------- ----------- -----------
873,271 797,087 1,688,073 1,660,492
----------- ----------- ----------- -----------
NET INCOME $ 25,770 $ 96,435 $ 86,285 $ 112,426
=========== =========== =========== ===========
NET INCOME PER LIMITED
PARTNERSHIP UNIT $ 1.34 $ 4.96 $ 4.49 $ 5.79
=========== =========== =========== ===========
PARTNERS' EQUITY:
Beginning of Period $ 8,341,402 $ 8,488,258 $ 8,280,887 $ 8,472,267
Net Income 25,770 96,435 86,287 112,426
Cash Distribution to Partners (254,956) (127,484) (254,956) (127,484)
----------- ----------- ----------- -----------
End of Period $ 8,112,216 $ 8,457,209 $ 8,112,216 $ 8,457,209
=========== =========== =========== ===========
<FN>
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
</FN>
</TABLE>
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<PAGE>
NOONEY INCOME FUND LTD. II, L.P.
--------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
STATEMENTS OF CASH FLOWS
------------------------
(UNAUDITED)
-----------
Six Months Ended
June 30, June 30,
1998 1997
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 86,285 $ 112,426
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 378,743 376,223
Changes in assets and liabilities:
Increase in accounts receivable (2,263) (43,008)
Increase in prepaid expenses and deposits (31,110) (17,582)
Increase in deferred assets (49,314) (33,288)
Decrease in accounts payable (312,892) (50,689)
Decrease in accrued real estate taxes (48,494) (87,227)
Increase in refundable tenant deposits 49,059 12,482
----------- -----------
Total Adjustments (16,271) 156,911
----------- -----------
Net cash provided by operating activities 70,014 269,337
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES -
Additions to investment property (116,459) (80,771)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES -
Cash distributions to partners (254,956) (127,484)
Payments on mortgage notes payable (50,328) (46,734)
----------- -----------
Net cash used in financing activities (305,284) (174,218)
----------- -----------
NET (DECREASE) INCREASE IN CASH AND (351,729) 14,348
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of period 1,378,138 1,323,026
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 1,026,409 $ 1,337,374
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION - Cash paid during year for interest $ 294,527 $ 294,740
=========== ===========
SEE NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
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<PAGE>
NOONEY INCOME FUND LTD. II, L.P.
--------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
NOTES TO UNAUDITED FINANCIAL STATEMENTS
---------------------------------------
THREE AND SIX MONTHS ENDED JUNE 30, 1998 AND 1997
-------------------------------------------------
NOTE A:
Refer to the Registrant's financial statements for the year ended December 31,
1997, 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 periods.
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, 1998 and for all periods presented
have been made. The results of operations for the three and six month periods
ended June 30, 1998, 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, Inc., a wholly-owned
subsidiary of CGS Real Estate Company. Nooney Income Investments Two, Inc., a
general partner, is a 75% owned subsidiary of S-P Properties, Inc. S-P
Properties, Inc is a wholly-owned subsidiary of CGS Real Estate Company.
NOTE D:
The earnings per limited partnership unit for the three and six month periods
ended June 30, 1998 and 1997 was computed based on 19,221 units, the number of
units outstanding during the periods.
NOTE E:
Effective January 1, 1998, the Registrant adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income," which
established standards for the reporting and display of comprehensive income and
its components. The adoption of this statement did not affect the Registrant's
consolidated financial statements for the three and six month periods ended June
30, 1997 and 1998.
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<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, 1998, is $1,026,409 a decrease of $351,729 when
compared to the year ended December 31, 1997. During the six month period ending
June 30, 1998, net cash provided by operating activities was $70,014. Cash was
used for capital and tenant improvements in the amount of $116,459 and payment
on mortgage notes payable in the amount of $50,328. Cash distributions paid to
partners during the quarter was $254,956. Based on the current cash balances and
the properties' ability to provide operating cash flow, the Registrant expects
the properties to fund anticipated capital expenditures for the remainder of
1998. The anticipated capital expenditures by property are as follows:
Other Capital Leasing Capital Total
------------- --------------- -----
NorthCreek Office Park $ 0 $ 72,100 $ 72,100
Tower Industrial Building 0 0 0
Northeast Commerce Center 0 16,748 16,748
Countryside Executive Center 11,800 134,499 146,299
Leawood Fountain Plaza (24%) 6,096 31,399 37,495
-------- -------- --------
$ 17,896 $254,746 $272,642
======== ======== ========
Leasing Capital at the four properties includes funds for tenant alterations and
lease commissions for new and renewal tenants. Other Capital at Countryside
Executive Center consists of the expenditure of new property signage. Other
Capital at Leawood Fountain Plaza consists of sidewalk curb replacements, carpet
replacement in three buildings' hallways, as well as coach lamp replacement.
As previously disclosed, the Registrant feels that the market conditions exist
whereby Countryside Executive Center should be sold. As previously reported,
management is currently working on leasing additional space so that occupancy is
at a higher level which will command a higher sale price when the property is
ultimately sold.
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.
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<PAGE>
Results of Operations by Property
- ---------------------------------
The results of operations for the Registrant's properties for the quarters ended
June 30, 1998 and 1997 are detailed in the schedule below. Revenues and expenses
of the Registrant are excluded.
Tower Northeast Countryside Leawood
NorthCreek Industrial Commerce Executive Fountain
Office Park Building Center Center Plaza (24%)
----------- ---------- --------- ----------- -----------
2nd Quarter 1998
- ----------------
Revenues $ 333,173 $ 49,734 $ 178,701 $ 254,103 $ 74,310
Expenses 305,900 25,371 197,895 279,787 65,309
--------- --------- --------- --------- ---------
Net Income (Loss) $ 27,273 $ 24,363 $ (19,194) $ (25,684) $ 9,001
========= ========= ========= ========= =========
2nd Quarter 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
========= ========= ========= ========= =========
At NorthCreek Office Park net income for the quarter ended June 30, 1998 was
$27,273 compared to net income of $47,742 in 1997. Revenues increased $6,042
when comparing the two quarters. This increase can be attributed to increases in
both base rental and escalation income. Expenses increased $26,511 when
comparing the two quarters. This increase can primarily be attributed to
increases in depreciation and amortization expense ($22,371) and fire/crime
prevention ($3,761). The increase in depreciation and amortization is due to
additional property.
Operating results at Tower Industrial Building remained relatively stable when
comparing the quarter ended June 30, 1998 to the quarter ended June 30, 1997.
The increase in net income of $2,739 when comparing the two quarters is
primarily due to a decrease in real estate tax expense of $2,312. The property
continues to operate as anticipated.
For the quarter ended June 30, 1998 and 1997, revenues at Northeast Commerce
Center were $178,701 and $175,240, respectively. The increase in revenues of
$3,461 can be attributed to increases in rental income ($9,333) and
miscellaneous income ($3,067), partially offset by a decrease in escalation of
($8,939). The property's expenses for the quarter ended June 30, 1998 and 1997,
were $197,895 and $144,447, respectively. The increase in expenses of $53,448 is
attributable to increases in depreciation and amortization expense ($25,833),
electric ($1,293), fire/crime prevention ($5,594), parking lot ($4,924), repairs
and maintenance ($8,781), real estate taxes ($4,153), office expense ($1,468)
and legal expense ($1,905). The repairs and maintenance increase can be
attributed to extensive heating, ventilation, and air-conditioning repairs and
replacement.
Revenues at Countryside Executive Center were $254,103 for the quarter ended
June 30, 1998 and $275,563 for the quarter ended June 30, 1997. The decrease in
revenue of $21,460 when comparing the two periods, is attributable to decreases
in miscellaneous rental income ($43,608) and escalation income ($4,937),
partially offset by an increase in base rental income of ($27,084). The decrease
in miscellaneous rental income is due to second quarter 1997 reflecting payments
related to holdover rent received from a prior major tenant. This is not a
reoccurring event. The increase in base rental income is due to the overall
increase in the occupancy level. Expenses at Countryside Executive Center were
$279,787 and $243,750 for the quarters ended June 30, 1998 and June 30, 1997,
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<PAGE>
respectively. This increase in expenses of $36,037 can be attributable to
increases in amortization expense ($13,871), the upkeep of tenant common areas
($14,422), parking lot ($1,762), repairs and maintenance ($12,301), real estate
taxes ($3,311), and payroll ($3,360). These increases were partially offset by
decreases in cleaning ($1,694), water ($2,876), professional services ($4,978),
and vacancy expense ($3,097). The increase in amortization is due to additional
tenant alterations and lease commission attributable to occupancy status. The
increase in tenant common areas is due to new tenant directory signage
($15,000). The final significant increase, repairs and maintenance, can be
attributable to additional handyman expenses and interior work related to a new
fiber optic phone room.
At Leawood Fountain Plaza, net income for the quarter ended June 30, 1998 and
the quarter ended June 30, 1997 was $9,001 and $6,868, respectively, resulting
in an increase in net income of $2,133. Revenues for the quarter ended June 30,
1998 and June 30, 1997 were $74,310 and $73,886, a minimal increase of $424.
Although overall revenue remained consistent with prior year, there was an
increase in base rental income of $5,300, partially offset by a decrease in
escalation of $4,867.
The occupancy levels at June 30 are as follows:
Occupancy levels as of June 30,
-------------------------------
Property 1998 1997 1996
-------- ---- ---- ----
NorthCreek Office Park 95% 97% 99%
Tower Industrial Building 100% 100% 100%
Northeast Commerce Center 94% 87% 87%
Countryside Executive Center 71% 52% 72%
Leawood Fountain Plaza (24%) 94% 90% 93%
Leasing activity during the second quarter of 1998 at NorthCreek Office Park
consisted of one new tenant signing a lease for 2,146 square feet, three tenants
renewing their leases for 2,676 square feet and one tenant vacating 2,528 square
feet. Occupancy remained stable at 95%. The office park has one major tenant
with two leases that comprise 26% and 7% of the available space which expire in
December 2003 and December 1998 respectively.
The Tower Industrial Building remains 100% leased to a single tenant whose lease
expires April,2000.
At Northeast Commerce Center there was no leasing activity during the second
quarter and the property remains 94% occupied. 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. The tenant whose lease
expires December 1998 has notified the Registrant that they will be vacating as
of Novemeber 1998 pursuant to an early cancellation option they have exercised.
The Registrant is working closely with the Cincinnati brokerage firm hired to
handle the leasing of the property to market the 50,000 square feet which will
be vacated.
Occupancy at Countryside Executive Center increased from 69% to 71% during the
second quarter 1998. Leasing activity consisted of the Registrant signing one
new lease with a tenant for 3,656 square feet, two tenants vacating 1,509 square
feet and one tenant vacating 1,457 square feet. The property has no major
tenants who occupy more than 10% of the available space.
During the second quarter of 1998, leasing activity at Leawood Fountain Plaza
resulted in an increase in occupancy from 90% to 94%. The Registrant signed new
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<PAGE>
leases with two tenants for 3,149 square feet and two tenants renewed their
leases for 2,500 square feet. The property has two major tenants occupying 10%
and 11% of the available space on leases which expire in July 1999 and July 1998
respectively. The tenant whose lease expired in July 1998 is working with the
Registrant on a long term renewal and an expansion of their space. The
Registrant anticipates signing a new lease with this tenant in August 1998.
Year 2000 Issues
- ----------------
The Registrant believes that the impact of the year 2000 will not have a
material impact on future results. The management company employed by the
Registrant utilizes various computer software packages as tools in running its
accounting operations. The Registrant's properties are maintained on software
provided by a third party. The management company has received information from
that company indicating that the main software program has all its core products
already compatible with 2000 dates and that these have been proven in the field
for over five years. A few of the add on products that are not critical to the
management company's business are in the process of being updated and the third
party vendor anticipates compliance by the end of 1998.
Results of Consolidated Operations 1998
- ---------------------------------------
Consolidated revenues for the three month period ended June 30, 1998 and June
30, 1997, are $899,041 and $893,522, respectively. Consolidated revenues for the
six month period ended June 30, 1998 and June 30, 1997, are $1,774,358 and
$1,772,918, respectively. Revenues increased $5,519 for the three month period
and $1,440 for the six month period ended June 30, 1998 when compared to the
prior period. Consolidated revenues overall have remained relatively consistent
with prior year, due to increased revenues at Northcreek Office Park and
Northeast Commerce Center, in addition to an increase in rent concessions
recorded in 1998 that favor revenue, partially offset by decreased revenues at
Countryside Executive Center. During the periods ended June 30, 1998 and June
30, 1997 consolidated expenses were $873,271 and $797,087. Consolidated expenses
for the six month period ended June 30, 1998 and June 30, 1997 were $1,688,073
and $1,660,492, respectively. Consolidated expenses increased $76,184 and
$27,581 for the three and six month periods ended June 30, 1998 when comparing
to prior periods. The increase in expenses for the three month period are due to
increases in depreciation and amortization ($40,367), repairs and maintenance
($20,566), and other operating expenses ($36,883), partially offset by a
decrease in professional services ($20,939). The increase in other operating
expenses is primarily due to increases in the upkeep of tenant common areas,
fire/crime prevention, insurance and office expenses. The decrease in
professional services is due to decreases in audit/tax, legal, and other
professional fees. The increase in expenses for the six month period can be
attributed to increases in real estate taxes ($34,672), repairs and maintenance
($24,157), parking lot ($5,474), and other operating expenses ($39,994). These
increases were partially offset by a decrease in professional services of
($77,311). The increase in real estate tax expense is primarily due to Northeast
Commerce Center. The real estate tax for 1997 reflects a tax savings related to
1996 that is not a reoccurring event. The six month increase in other operating
expenses and decrease in professional services are due to the same reasons as
stated above for the three month comparison.
Results of Consolidated Operations 1997
- ---------------------------------------
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 periods. The increase in revenue is mainly attributable to increases in
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<PAGE>
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.
Inflation
- ---------
The effects of inflation did not have a material impact upon the Registrant's
operations.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
See Exhibit Index on Page 11
(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, 1998 By: Nooney Income Investments Two, Inc..
------------------------------- General Partner
By: /s/ Gregory J. Nooney, Jr.
-------------------------------
Gregory J. Nooney, Jr.-Director
Chairman of the Board and
Chief Executive Officer
By: /s/ Patricia A. Nooney
------------------------------
Patricia A. Nooney-Director
Senior Vice President and Secretary
BEING A MAJORITY OF THE DIRECTORS
-10-
<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)
-11-
<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-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,026,409
<SECURITIES> 0
<RECEIVABLES> 155,213
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,229,784
<PP&E> 16,189,419
<DEPRECIATION> (4,462,026)
<TOTAL-ASSETS> 16,032,378
<CURRENT-LIABILITIES> 676,125
<BONDS> 7,046,204
<COMMON> 0
0
0
<OTHER-SE> 8,112,216
<TOTAL-LIABILITY-AND-EQUITY> 16,032,378
<SALES> 1,774,358
<TOTAL-REVENUES> 1,774,358
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,393,546
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 294,527
<INCOME-PRETAX> 86,285
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 86,285
<EPS-PRIMARY> 4.49
<EPS-DILUTED> 0
</TABLE>
