SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended March 31, 1996 Commission file number 0-16253
JMB MORTGAGE PARTNERS, LTD. - III
(Exact name of registrant as specified in its charter)
Illinois 36-3346551
(State of organization) (IRS Employer Identification No.)
900 N. Michigan Ave., Chicago, IL 60611
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 312/915-1987
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
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
Item 1. Financial Statements . . . . . . . . . . . . . . . . . 3
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . . . . . . 11
PART II OTHER INFORMATION
Item 5. Other Information. . . . . . . . . . . . . . . . . . . 12
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 13
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JMB MORTGAGE PARTNERS, LTD. - III
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
ASSETS
------
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
------------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,729,757 7,538,476
Interest and other receivables . . . . . . . . . . . . . . . . . . . . . . . 197,025 340,674
Due from affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273,784 251,872
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,769 28,769
------------ ------------
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . 9,229,335 8,159,791
Investment property:
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,561,468 9,561,468
Building and improvements. . . . . . . . . . . . . . . . . . . . . . . . . . 13,775,104 13,743,821
------------ ------------
23,336,572 23,305,289
Less accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . (2,379,661) (2,321,280)
------------ ------------
Total investment property, net of depreciation. . . . . . . . . . . . . . 20,956,911 20,984,009
Mortgage notes receivable (net of allowance for loan
loss of $175,165 in 1995) . . . . . . . . . . . . . . . . . . . . . . . . . . 29,221,861 29,221,861
Deferred interest receivable (net of allowances for
loan loss of $1,691,218 in 1996 and 1995) . . . . . . . . . . . . . . . . . . 1,139,313 1,096,251
Investment in unconsolidated venture, at equity. . . . . . . . . . . . . . . . 3,203,852 3,159,812
Deferred costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176,856 185,368
------------ ------------
$ 63,928,128 62,807,092
============ ============
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS (DEFICITS)
-----------------------------------------------------
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 113,928 88,880
Accrued real estate taxes. . . . . . . . . . . . . . . . . . . . . . . . . . 93,805 148,139
Other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . 59,917 205,309
------------ ------------
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . 267,650 442,328
------------ ------------
Tenant security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . 36,775 34,073
------------ ------------
Commitments and contingencies
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,425 476,401
------------ ------------
Venture partner's equity in ventures . . . . . . . . . . . . . . . . . . . . . 8,399,052 8,199,483
Partners' capital accounts:
General partners:
Capital contributions . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Cumulative net earnings (losses). . . . . . . . . . . . . . . . . . . . . 2,959,357 2,948,423
Cumulative cash distributions . . . . . . . . . . . . . . . . . . . . . . (3,071,447) (3,071,447)
------------ ------------
(111,090) (122,024)
------------ ------------
Limited partners (65,237.69 interests):
Capital contributions, net of offering costs. . . . . . . . . . . . . . . 57,758,561 57,758,561
Cumulative net earnings . . . . . . . . . . . . . . . . . . . . . . . . . 33,113,735 32,031,226
Cumulative cash distributions . . . . . . . . . . . . . . . . . . . . . . (35,536,555) (35,536,555)
------------ ------------
55,335,741 54,253,232
------------ ------------
Total partners' capital accounts (deficits). . . . . . . . . . . . . . 55,224,651 54,131,208
------------ ------------
$ 63,928,128 62,807,092
============ ============
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - III
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------- -----------
<S> <C> <C>
Income:
Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 897,290 851,652
Rental income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 883,478 923,753
------------ ------------
1,780,768 1,775,405
------------ ------------
Expenses:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,380 161,173
Property operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . 310,466 329,097
Mortgage investment servicing fees . . . . . . . . . . . . . . . . . . . . . 18,013 20,134
Professional services. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000 31,409
Amortization of deferred expenses. . . . . . . . . . . . . . . . . . . . . . 8,512 18,757
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . 115,424 49,087
------------ ------------
531,795 609,657
------------ ------------
Operating earnings (loss). . . . . . . . . . . . . . . . . . . . . . 1,248,973 1,165,748
Partnership's share of operations
of unconsolidated venture. . . . . . . . . . . . . . . . . . . . . 44,039 61,558
Venture partner's share of ventures' operations. . . . . . . . . . . (199,569) (183,517)
------------ ------------
Net earnings (loss). . . . . . . . . . . . . . . . . . . . . . . . . $ 1,093,443 1,043,789
============ ============
Net earnings (loss) per limited partnership interest . . . . . . . . $ 16.59 14.33
============ ============
Cash distributions per limited partnership interest. . . . . . . . . $ -- 15.00
============ ============
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - III
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,093,443 1,043,789
Items not requiring cash or cash equivalents:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,380 161,173
Amortization of deferred expenses. . . . . . . . . . . . . . . . . . . . . . . 8,512 18,757
Partnership's share of operations of unconsolidated venture,
net of distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44,039) (61,558)
Venture partners' share of ventures' operations. . . . . . . . . . . . . . . . 199,569 183,517
Changes in:
Interest and other receivables . . . . . . . . . . . . . . . . . . . . . . . . 143,649 (3,166)
Due from affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,912) --
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 17,261
Deferred interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . (43,062) (34,750)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,048 (41,846)
Due to affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (317,116)
Accrued real estate taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . (54,334) (55,598)
Other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . (145,392) (90,327)
Tenant security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,702 (16,340)
------------ ------------
Net cash provided by (used in) operating activities. . . . . . . . . . . 1,222,564 803,798
------------ ------------
Cash flows from investing activities:
Net sales and maturities (purchases) of short-term investments . . . . . . . . . -- (1,048,929)
Additions to investment property . . . . . . . . . . . . . . . . . . . . . . . . (31,283) (19,448)
Partnership's contribution to unconsolidated venture . . . . . . . . . . . . . . -- (3,607)
Refund of deferred costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 2,436
------------ ------------
Net cash provided in (used in) investing activities. . . . . . . . . . . (31,283) (1,069,548)
------------ ------------
Cash flows from financing activities:
Distributions to limited partners. . . . . . . . . . . . . . . . . . . . . . . . -- (978,566)
Distributions to general partners. . . . . . . . . . . . . . . . . . . . . . . . -- (108,729)
------------ ------------
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . -- (1,087,295)
------------ ------------
Net increase (decrease) in cash and cash equivalents. . . . . . . . . . . . . 1,191,281 (1,353,047)
Cash and cash equivalents, beginning of year. . . . . . . . . . . . . . . . . 7,538,476 10,278,236
------------ ------------
Cash and cash equivalents, end of period. . . . . . . . . . . . . . . . . . . $ 8,729,757 8,925,189
============ ============
Supplemental disclosure for cash flow information:
Cash paid for mortgage and other interest. . . . . . . . . . . . . . . . . . . . $ -- --
============ ============
Non-cash investing and financing activities:
Balance due on mortgage note receivable (net of
allowance for loan loss of $99,000). . . . . . . . . . . . . . . . . . . . . . $ -- 3,121,072
Partnership contribution to unconsolidated venture. . . . . . . . . . . . . . . -- 3,607
------------ ------------
Net carrying value of investment property (reflected
as investment in unconsolidated venture. . . . . . . . . . . . . . . . . . . . $ -- 3,124,679
============ ============
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
JMB MORTGAGE PARTNERS, LTD. - III
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996 AND 1995
(UNAUDITED)
GENERAL
Readers of this quarterly report should refer to the Partnership's
audited financial statements for the fiscal year ended December 31, 1995,
which are included in the Partnership's 1995 Annual Report, as certain
footnote disclosures which would substantially duplicate those contained in
such audited financial statements have been omitted from this report.
The preparation of financial statements in accordance with GAAP
requires the Partnership to make estimates and assumptions that affect the
reported or disclosed amount of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Statement of Financial Accounting Standards No. 121 was adopted by the
Partnership on January 1, 1996.
TRANSACTIONS WITH AFFILIATES
Fees, commissions and other expenses required to be paid by the
Partnership to the General Partners and their affiliates as of March 31,
1996 and for the three months ended March 31, 1996 and 1995 are as follows:
Unpaid at
March 31,
1996 1995 1996
------- ------ -------------
Mortgage investment
servicing fees . . . . . . . . $18,013 20,134 18,013
Property management
fees. . . . . . . . . . . . . . 25,994 22,575 --
Reimbursement (at cost)
for out-of-pocket
expenses and salaries
and salary-related
expenses. . . . . . . . . . . . 22,937 37,504 49,423
------- ------ ------
$66,944 80,213 67,436
======= ====== ======
The General Partners have deferred payment of certain of their
distributions of net cash flow from the Partnership aggregating $679,727
(approximately $10 per Interest) at March 31, 1996, which is being deferred
in accordance with the subordination requirements of the Partnership
Agreement. All amounts deferred or currently payable do not bear interest.
SPRING HILL FASHION CENTER
Occupancy of the shopping center was 67% at March 31, 1996, down from
75% at December 31, 1995. A major tenant, which occupied approximately 24%
of the leasable space at the property and which was operating under Chapter
11 bankruptcy protection, did not exercise its renewal option when its
lease expired in October 1995 and vacated its space. The Spring Hill
venture however, executed a ten-year lease (in February 1996) with a
replacement tenant for this space at rental rates lower than those of the
former tenant resulting in the property currently being 94% leased. The
Spring Hill joint venture is conserving its working capital in order to
fund certain costs associated with this replacement tenant's expected
occupancy in the summer of 1996. Although the Spring Hill venture is
actively pursuing the sale of this property, there can be no assurance that
any satisfactory sale transaction will be completed by the end of 1996.
RIVERPOINT CENTER
The Silo Electronic store (12,100 sq. ft.) at Riverpoint Center
vacated its space in the third quarter 1995 and subsequently filed for
bankruptcy. The borrower is pursuing its legal remedies regarding the
remaining amounts due. The borrowers leased the space to the Old Navy
Clothing Co., for five years with rent commencing July 1996. As a result,
the borrower has notified the lender that it is experiencing financial
difficulties and has approached the Lenders regarding a loan modification.
The Lenders and borrowers have reached an agreement in principal to defer
payment of debt service payments for a certain period of time. However,
there can be no assurance that such agreement will be finalized under these
terms or any others. As of the date of this report, certain escrow
payments are due to the Lenders; however, the borrower is current in its
monthly debt service payments. The Partnership is recognizing interest
income only as collected.
FRANKLIN FARM VILLAGE CENTER
A tenant, which has a ground lease with the borrower, informed the
borrower and the appropriate state agencies that gasoline was discharged
into the ground. The Lenders were then informed by the borrower. The
Lenders have been informed that the tenant, which operates a gasoline
station at the site, is cooperating fully with all government agencies in
order to rectify this problem in a expeditious manner and that no nearby
underground water supplies were affected nor does it appear likely that any
will be affected in the future. The tenant (an affiliate of a national
gasoline marketer) appears to have the financial resources to fully pay for
the clean up at the property. At this time it is undeterminable what the
cost of the clean up will be and the Lenders do not currently expect that
the value of the borrower's property has been materially affected.
However, there can be no assurances that the gasoline leak, as reported,
will not have a material impact on the value of the Lenders' security in
the future. Subsequent to the end of the quarter, the Lenders reached an
agreement with the borrower regarding an early repayment of the mortgage
loan. Such agreement allows the borrower to repay the loan at a
predetermined amount (at a premium to the Lender's current principal
balances) prior to August 8, 1996. There can be no assurance that such
loan will be prepaid. As of the date of the report, no amounts currently
due from the borrower of this loan are in arrears.
CALIBRE POINT APARTMENTS
Calibre Pointe Associates entered into a purchase agreement in April
1996 with an independent third party to sell the property known as Calibre
Pointe Apartments. In such event, Calibre Pointe Associates and the
Partnership would recognize a net gain for financial reporting and Federal
income tax purposes. The transaction is scheduled to close during 1996.
However, there can be no assurance that this transaction will be
consummated on these or any other terms.
The property was classified as held for sale or disposition as of
January 1, 1996 and therefore has not been subject to continued
depreciation. The accompanying consolidated financial statements include
$575,545 and $569,780 of revenues and $179,518 and $198,294 of operating
expenses for the three months ended March 31, 1996 and 1995. The property
had a net carrying value of approximately $11,580,000 at March 31, 1996 and
December 31, 1995.
NORTH RIVERS MARKET SHOPPING CENTER
Occupancy of North Rivers Market Shopping Center in North Charleston,
South Carolina was 85% at March 31, 1996. Phar Mor, a major tenant at the
center filed for protection under Chapter 11 of the bankruptcy code. The
Phar Mor store at the center has continued to operate since its bankruptcy
filing and has been current on all rent payments due subsequent to filing.
The manager is aggressively attempting to lease the vacant space in the
center. However, the competitiveness of the market given the Naval
facility closings in the nearby area is expected to make it difficult to
lease space in the center, thereby extending the period of time it will
take to complete the lease-up of the center and result in a decrease in
cash flow from operations over the near term.
SHOPPES AT RIVERGATE
In May 1995, a tornado touched down in Goodlettsville, Tennessee and
severely damaged a significant percentage (17% or 29,000 square feet) of
the Shoppes at Rivergate. The portion of the shopping center undamaged by
the tornado has continued to operate while the damaged portion was being
repaired. Substantially all of the loss, including any loss caused by
business interruption, will be covered by the borrower's insurance. The
borrower has substantially rebuilt the damaged portions of the center with
funds provided by the insurance company and the property is currently 97%
occupied. Total costs to repair the center are estimated to be
approximately $1,200,000 of which approximately $1,080,000 has been spent
as of March 31, 1996. As of the date of this report, the borrower is
current with all payments due to the Partnership.
Pursuant to the requirements of the Securities and Exchange
Commission, the following is a summary of historical income statement
information for Shoppes at Rivergate, Riverpoint Center and Franklin Farm
Village Center shopping centers for the three months ended March 31, 1996
and 1995. Such properties secure the participating first mortgage
investments made by the Partnership.
SELECTED FINANCIAL INFORMATION
1996 1995
---------- ----------
Total revenues. . . . . . . . . . . . . $2,006,196 2,186,266
========== ==========
Net income (loss) . . . . . . . . . . . $ 216,089 232,128
========== ==========
ADJUSTMENTS
In the opinion of the Corporate General Partner, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation have been made to the accompanying figures as of March 31,
1996 and for the three months ended March 31, 1996 and 1995.
PART I. FINANCIAL INFORMATION
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Reference is made to the notes to the accompanying financial
statements for additional information concerning the Partnership's
investments.
After reviewing the properties and competitive market places in the
portfolio, the General Partners of the Partnership expect to be able to
liquidate the remaining assets as quickly as practicable. Therefore, the
affairs of the Partnership are expected to be wound up no later than 1999,
barring unforeseen economic developments including the inability to sell
the Franklin Farm Village Center note prior to its maturity in 2001.
RESULTS OF OPERATIONS
The increase in cash and cash equivalents at March 31, 1996 as
compared to December 31, 1995 is due primarily to the timing of interest
payments and distributions related to the Partnership's investments.
The decrease in interest and other receivables at March 31, 1996 as
compared to December 31, 1995 is primarily due to the timing of collection
of 1995 tenant recoveries at the North Rivers Market property.
The increase in deferred interest receivable at March 31, 1996 as
compared to December 31, 1995 is due to the continuing deferral of
additional interest earned under the terms of the mortgage loan receivable
secured by the Franklin Farm Village Center.
The increase in accounts payable at March 31, 1996 as compared to
December 31, 1995 and the increase in general and administrative expenses
for the three months ended March 31, 1996 as compared to the same period in
1995 is attributable primarily to the recognition of additional prior year
reimbursable costs to affiliates of the General Partners.
The decrease in accrued real estate taxes at March 31, 1996 as
compared to December 31, 1995 is due to the timing of payment of real
estate taxes at the North Rivers Market and Calibre Pointe properties.
The decrease in other current liabilities at March 31, 1996 as
compared to December 31, 1995 is due to a payment made from deposits held
for real estate taxes for the Shoppes at Rivergate.
Interest income increased for the three months ended March 31, 1996 as
compared to the same period in 1995 due to additional interest paid in 1996
on the Franklin Farm Village Center note, relating to 1995 operations,
collected in April 1996 but not previously accrued, and as interest income
is recognized as collected, a higher interest payment rate in effect in
1996 for Riverpoint.
The decrease in rental income for the three months ended March 31,
1996 as compared to the same period in 1995 is due primarily to tenant
billing adjustments made in 1996 related to tenant recoveries at the North
Rivers Market Shopping Center and decreased occupancy at the Center
partially offset by an increase in effective rents and occupancy at Calibre
Pointe Apartments.
The decrease in depreciation expense for the three months ended March
31, 1996 as compared to the same period in 1995 is due to the Calibre
Pointe property being classified as held for sale, or disposition as of
January 1, 1996.
<TABLE>
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
OCCUPANCY
The following is a listing of approximate occupancy levels by quarter for the Partnership's investment
properties.
<CAPTION>
1995 1996
------------------------------------- ------------------------------
At At At At At At At At
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Calibre Pointe Apartments
Atlanta, Georgia . . . . . 98% 90% 98% 96% 99%
2. North Rivers Market
Shopping Center
North Charleston,
South Carolina . . . . . . 80% 80% 80% 88% 85%
3. Spring Hill Fashion Center
Shopping Center
West Dundee, Illinois. . . 94%* 94% 92% 75% 67%
- -----------------
<FN>
* This property was reflected as owned at March 31, 1995 although title did not transfer to the Partnership
and its affiliated lenders pursuant to a deed in lieu of foreclosure until May 1995.
</TABLE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following documents are filed as part of this report:
3-A. The Prospectus of the Partnership dated July 18,
1986, as supplemented January 27, 1986, April 29, 1986, June 11, 1986,
August 14, 1986, September 27, 1986 as filed with the Commission pursuant
to Rules 424(b) and 424(c), is hereby incorporated herein by reference to
Exhibit 3-A to the Partnership's Report for December 31, 1992 on Form 10-K
(File No. 0-16253) dated March 19, 1993.
3-B. Amended and Restated Agreement of Limited
Partnership set forth as Exhibit A to the Prospectus, which is hereby
incorporated herein by reference to the Partnership's Registration
Statement on Form S-11 (File No. 2-95948) dated July 24, 1985.
10-A. Loan documents related to the Partnership's
participation in the funding of a non-recourse first mortgage loan on
Calibre Pointe Apartments located in Atlanta, Georgia is hereby
incorporated herein by reference to the Partnership's Form 8-K (File No. 2-
95948) dated March 25, 1987.
10-B. Loan documents related to the Partnership's
participation in the funding of a first mortgage loan secured by a first
mortgage loan on North Rivers Market Shopping Center located in North
Charleston, South Carolina, is hereby incorporated herein by reference to
the Partnership's Form 8-K (File No. 2-95948) dated September 15, 1987.
10-C. Loan documents related to the Partnership's
participation in the funding of a first mortgage loan secured by a first
mortgage loan on Riverpoint Center Shopping Center located in Chicago,
Illinois, is hereby incorporated herein by reference to the Partnership's
Form 8-K (File No. 0-16253) dated September 5, 1989.
10-D. Loan document related to the Partnership's
participation in the funding of a first mortgage secured by a first
mortgage on Shops at Rivergate Shopping Center located in Goodlettsville,
Tennessee, dated August 24, 1987 is hereby incorporated herein by reference
to Exhibit 10-D of the Partnership's Report for December 31, 1992 on Form
10-K (File No. 0-16253) dated March 19, 1993.
10-E. Loan documents related to the Partnership's
participation in the funding of a participating first mortgage loan secured
by Franklin Farm Village Center located in Fairfax County, Virginia, are
hereby incorporated by reference to the Partnership's Report for December
31, 1994 on Form 10-K (File No. 0-16253) dated March 27, 1995.
10-F. First and Second Amendments to the Loan Documents
dated September 28, 1993 and November 23, 1994, respectively, between
Rosenfeld/Franklin Farm Village Center L.P. and Mortgage Partners, Ltd.-IV,
relating to additional loan amounts, are hereby incorporated by reference
to the Partnership's Report for December 31, 1994 on Form 10-K (File No. 0-
16253) dated March 27, 1995.
27. Financial Data Schedule
(b) No reports on Form 8-K have been filed for the quarter
covered by this report.
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.
JMB MORTGAGE PARTNERS, LTD. - III
BY: JMB Realty Corporation
(Corporate General Partner)
GAILEN J. HULL
By: Gailen J. Hull,
Senior Vice President
Date: May 10, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following person in the capacity
and on the date indicated.
GAILEN J. HULL
Gailen J. Hull
Principal Accounting Officer
Date: May 10, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE REGISTRANT'S FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS INCLUDED IN SUCH REPORT.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 8,729,757
<SECURITIES> 0
<RECEIVABLES> 499,578
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,229,335
<PP&E> 23,336,572
<DEPRECIATION> 2,379,661
<TOTAL-ASSETS> 63,928,128
<CURRENT-LIABILITIES> 267,650
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 55,224,651
<TOTAL-LIABILITY-AND-EQUITY> 63,928,128
<SALES> 883,478
<TOTAL-REVENUES> 1,780,768
<CGS> 0
<TOTAL-COSTS> 368,846
<OTHER-EXPENSES> 162,949
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,248,973
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,093,443
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,093,443
<EPS-PRIMARY> 16.59
<EPS-DILUTED> 16.59
</TABLE>
