FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-16467
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
California 33-0098488
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 South El Camino Real, Suite 1100
San Mateo, California 94402
(Address of principal (Zip Code)
executive offices)
(415) 343-9300
(Registrant's telephone number, including area code)
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
--- ---
Total number of units outstanding as of September 30, 1996: 99,765
Page 1 of 15
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets
(in thousands, except units outstanding)
(Unaudited)
September 30, December 31,
1996 1995
Assets
Real estate investments:
Rental property, net of accumulated
depreciation of $14,801 and
$13,465 at September 30, 1996 and
December 31, 1995, respectively $35,969 $36,000
Land held for development 9,559 9,799
Land held for sale 1,005 1,005
------- -------
Total real estate investments 46,533 46,804
Cash and cash equivalents 5,453 676
Pledged cash 2 351
Accounts receivable 183 169
Deferred financing costs and other fees,
net of accumulated amortization of $1,475
and $1,233 at September 30, 1996 and
December 31, 1995, respectively 1,358 1,218
Prepaid expenses and other assets 1,111 957
------- -------
Total assets $54,640 $50,175
======= =======
- continued -
Page 2 of 15
<PAGE>
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets
(in thousands, except units outstanding) - continued
(Unaudited)
September 30, December 31,
1996 1995
Liabilities and Partners' Equity (Deficit)
Liabilities:
Accounts payable and accrued expenses $ 668 $ 256
Interest payable 75 --
Notes payable 13,883 8,615
------- -------
Total liabilities 14,626 8,871
------- -------
Commitments and contingent liabilities
(see Note 5)
Partners' equity (deficit):
General partners (917) (904)
Limited partners, 99,765 limited
partnership units outstanding at
September 30, 1996 and December 31, 1995 40,931 42,208
------- -------
Total partners' equity 40,014 41,304
------- -------
Total liabilities and partners' equity $54,640 $50,175
======= =======
See accompanying notes to financial statements.
Page 3 of 15
<PAGE>
<TABLE>
<CAPTION>
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Operations
(in thousands, except per unit amounts and units
outstanding)
(Unaudited)
Three months ended
Nine months ended
September 30, August 31,
September 30, August 31,
1996 1995
1996 1995
--------- ----------
- - ---------- --------
<S> <C> <C>
<C> <C>
Revenue:
Rental income $ 1,753 $ 1,497
$ 5,191 $ 4,684
Interest income 49 31
80 69
-------- --------
- - -------- --------
Total revenue 1,802 1,528
5,271 4,753
-------- --------
- - -------- --------
Expenses:
Operating, including $27 paid to
Sponsor in 1995 853 819
2,465 2,273
Interest expense 375 186
919 530
Depreciation and amortization 565 520
1,743 1,568
Expenses associated with undeveloped land 160 151
525 515
General and administrative expenses,
including $83 paid to Sponsor in 1995 272 284
909 857
-------- --------
- - -------- --------
Total expenses 2,225 1,960
6,561 5,743
-------- --------
- - -------- --------
Net loss $ (423) $ (432)
$ (1,290) $ (990)
======== ========
======== ========
Net loss per limited partnership unit $ (4.20) $ (4.29)
$ (12.80) $ (9.82)
======== ========
======== ========
Weighted average number of limited
partnership units outstanding during
each period used to compute net loss
per limited partnership unit 99,765 99,800
99,765 99,804
======== ========
======== ========
See accompanying notes to financial statements.
Page 4 of 15
</TABLE>
<PAGE>
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Partners' Equity (Deficit) (in thousands)
For the nine months ended September 30, 1996 and August 31, 1995
(Unaudited)
General Limited
Partners Partners Total
Balance at December 31, 1995 $ (904) $ 42,208 $ 41,304
Net loss (13) (1,277) (1,290)
-------- -------- --------
Balance at September 30, 1996 $ (917) $ 40,931 $ 40,014
======== ======== ========
Balance at November 30, 1994 $ (744) $ 58,407 $ 57,663
Retirement of limited partnership units -- (9) (9)
Net loss (10) (980) (990)
-------- -------- --------
Balance at August 31, 1995 $ (754) $ 57,418 $ 56,664
======== ======== ========
See accompanying notes to financial statements.
Page 5 of 15
<PAGE>
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
<CAPTION>
Consolidated Statements of Cash Flows (in thousands)
(Unaudited)
Nine
months ended
September 30,
August 31,
1996
1995
----------
-------
<S> <C>
<C>
Cash flows from operating activities:
Net loss $ (1,290)
$ (990)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 1,743
1,568
Amortization of loan fees, included in interest expense 22
16
Changes in certain assets and liabilities:
Lease commissions paid (126)
(177)
Accounts receivable (14)
(39)
Prepaid expenses and other assets (154)
280
Accounts payable and accrued expenses 412
(212)
Interest payable 75
(50)
Payable to Sponsor --
(194)
--------
--------
Net cash provided by operating activities 668
202
--------
--------
Cash flows from investing activities:
Pledged cash released 349
--
Additions to real estate investments (1,185)
(1,702)
--------
--------
Cash used for investing activities (836)
(1,702)
--------
--------
Cash flows from financing activities:
Net loan proceeds 13,911
2,484
Loan fees paid (323)
--
Notes payable principal payments (8,643)
(53)
Retirement of limited partnership units --
(9)
--------
--------
Net cash provided by financing activities 4,945
2,422
--------
--------
Net increase in cash and cash equivalents 4,777
922
Cash and cash equivalents at beginning of period 676
2,309
--------
--------
Cash and cash equivalents at end of period $ 5,453
$ 3,231
========
========
Supplemental disclosure of cash flow information:
Cash paid for interest $ 822
$ 653
========
========
Interest capitalized $ --
$ 73
========
========
See accompanying notes to financial statements
Page 6 of 15
</TABLE>
<PAGE>
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
September 30, 1996
(Unaudited)
Note 1. THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES
In the opinion of Rancon Financial Corporation (RFC) and Daniel Lee Stephenson
(the Sponsors) and Glenborough Inland Realty Corporation, the accompanying
unaudited financial statements contain all adjustments (consisting of only
normal accruals) necessary to present fairly the financial position of Rancon
Realty Fund V, A California Limited Partnership (the Partnership) as of
September 30, 1996 and December 31, 1995, the related statements of operations
for the three and nine months ended September 30, 1996 and August 31, 1995, and
changes in partners' equity and cash flows for the nine months ended September
30, 1996 and August 31, 1995.
Effective with the year ending December 31, 1995, the Partnership's reporting
year end changed from November 30 to December 31.
Effective January 1, 1994, the Partnership had contracted with RFC to perform on
the Partnership's behalf, financial, accounting, data processing, marketing,
legal, investor relations, asset and development management and consulting
services. These services are subject to the provisions of the Partnership
Agreement.
In December, 1994 RFC entered into an agreement with Glenborough Inland Realty
Corporation (Glenborough) whereby RFC sold to Glenborough the contract to
perform the rights and responsibilities under RFC's agreement with the
Partnership and other related Partnerships (collectively, the Rancon
Partnerships) to perform or contract on the Partnership's behalf financial,
accounting, data processing, marketing, legal, investor relations, asset and
development management and consulting services for the Partnership for a period
of ten years or until the liquidation of the Partnership, whichever comes first.
Pursuant to the contract, the Partnership will pay Glenborough for its services
as follows: (i) a specified asset administration fee of $967,000 per year, which
is fixed for five years subject to reduction in the year following the sale of
assets; (ii) sales fees of 2% for improved properties and 4% for land; (iii) a
refinancing fee of 1% and (iv) a management fee of 5% of gross rental receipts.
As part of this agreement, Glenborough will perform certain tasks for the
General Partner of the Rancon Partnerships and RFC agreed to cooperate with
Glenborough, should Glenborough attempt to obtain a majority vote of the limited
partners to substitute itself as the General Partner for the Rancon
Partnerships. This agreement became effective January 1, 1995. Glenborough is
not an affiliate of RFC.
As a result of this agreement, RFC terminated several of its employees between
December 31, 1994 and February 28, 1995. Also as a result of this agreement,
certain of the officers of RFC resigned from their positions effective February
28, 1995, March 31, 1995 and July 1, 1995.
Consolidation - In order to satisfy certain lender requirements for the
Partnership's new loan secured by Two Carnegie Plaza, Lakeside Tower and One
Parkside (see Note 6), Rancon Realty
Page 7 of 15
<PAGE>
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
September 30, 1996
(Unaudited)
Fund V Tri City Limited Partnership, a Delaware limited partnership ("RRF V Tri
City") was formed in May, 1996. The three properties securing the loan were
contributed to RRF V Tri City by the Partnership. The limited partner of RRF V
Tri City is the Partnership and the general partner is Rancon Realty Fund V,
Inc., wholly owned by the Partnership.
Since the Partnership indirectly owns 100% of RRF V Tri City, the financial
statements of RRF V Tri City have been consolidated with those of the
Partnership.
Reclassification - Certain 1995 balances have been reclassified to conform with
the current period presentation.
Note 2. REFERENCE TO 1995 AUDITED FINANCIAL STATEMENTS
These unaudited financial statements should be read in conjunction with the
Notes to Financial Statements included in the fiscal 1995 audited financial
statements.
Note 3. RELATED PARTY TRANSACTIONS
The Partnership had an agreement with the Sponsor for property management
services through December 31, 1994. The agreement provided for a management fee
equal to 5% of gross rentals collected while managing the properties. Fees
incurred under this agreement totaled $27,000 for the one month ended December
31, 1994. Effective January 1, 1995, the Partnership contracted with Glenborough
to provide these services to the Partnership (see Note 1).
The Partnership Agreement also provides for the reimbursement of actual costs
incurred by the Sponsor in providing certain administrative, legal and
development services necessary for the prudent operation of the Partnership.
Effective January 1, 1995, such services are being provided by Glenborough as
described in Note 1.
As a result of the agreement between RFC and Glenborough, RFC terminated certain
employees who were previously responsible for performing the administrative,
legal and development services to the Partnership. Upon termination, certain
employee costs including severance benefits were allocated to the various Rancon
Partnerships. Such costs allocated to the Partnership aggregated $194,000, and
were accrued by the Partnership in fiscal year 1994 and paid in the first
quarter of fiscal year 1995.
The remainder of the reimbursable costs incurred by the Partnership totaled
$94,000 for the nine months ended August 31, 1995, of which the Partnership
capitalized $11,000. The amount incurred in 1995 is reduced by an $83,000 rebate
of the amounts paid by the Partnership for services provided by the Sponsor
during the 1994 calendar year.
Page 8 of 15
<PAGE>
RANCON REALTY FUND V,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
September 30, 1996
(Unaudited)
Note 4. INVESTMENT IN REAL ESTATE
In September, 1996, construction on a 6,500 square foot building for Outback
Steakhouse was completed. The Partnership and the tenant entered into a 10-year
ground lease with four 5-year options. As a result of the completion of the
property, $570,000 was reclassified from land held for development to rental
property.
Note 5. COMMITMENTS AND CONTINGENT LIABILITIES
The Partnership is contingently liable for subordinated real estate commissions
payable to the Sponsor in the amount of $102,000 at September 30, 1996. The
subordinated real estate commissions are payable only after the Limited Partners
have received distributions equal to their original invested capital plus a
cumulative non-compounded return of nine percent per annum on their adjusted
invested capital.
Note 6. NOTES PAYABLE
On May 10, 1996, the Partnership obtained new permanent financing of $9,600,000,
secured by real estate referred to as Lakeside Tower, One Parkside and One
Carnegie Plaza. After disbursing $2,785,000 for the payoff of an existing loan,
$271,000 in loan fees, and funding $107,000 in reserves/escrow, the Partnership
netted $6,437,000 in financing proceeds. The proceeds were added to the
Partnership's cash reserves to allow management greater flexibility in exploring
different options for strengthening the Partnership's financial position.
This new loan, which matures August 1, 2006, is a 10-year fixed rate loan with a
25-year amortization. It accrues interest at a rate of 9.39% per annum, with
$83,142 in principal and interest payments due monthly, commencing July 1, 1996.
On August 30, 1996, the Partnership entered into a new financing agreement for
its $5,812,000 note payable secured by One Carnegie Plaza. The new agreement
required a $1,500,000 principal paydown in exchange for a reduction in the
stated interest rate from 10.0% to 8.25%. Accordingly, on August 30, 1996, the
Partnership made a $1,500,000 principal payment plus paid $57,000 of accrued
interest and loan fees. The new loan terms provide for monthly principal and
interest payments totaling $33,995 commencing November 1, 1996, with a maturity
date of December 1, 2001. Additionally, the lower interest rate will result in
annual savings to the Partnership of approximately $75,000.
Page 9 of 15
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations
LIQUIDITY AND CAPITAL RESOURCES
In February, 1989, Rancon Realty Fund V (the Partnership) was fully funded from
the sale of all limited partnership units in the amount of $90,743,000 (net of
selling and organization expenses). As of September 30, 1996, the Partnership
had cash of $5,453,000 resulting primarily from the new permanent financing
described below. The remainder of the Partnership's assets consist primarily of
its investments in real estate, which totaled approximately $46,533,000 at
September 30, 1996.
The Partnership's primary sources of funds consist of the proceeds of its public
offerings of limited partnership units, new financing and cash provided by its
rental activities. Other sources of funds include property sales and interest
income on deposits of funds invested temporarily, pending use in the development
of properties.
All but one of the Partnership's operating properties are located within the
Inland Empire submarket of the Southern California region. The Southern
California economy in general, and the real estate industry in particular, is
considered to be in a recessionary cycle. The Partnership may receive both
positive and negative effects from these current market conditions. Potential
negative effects include the delinquency of lease payments owed to the
Partnership, a decrease in competitive market lease rates and land prices, and
an inability to obtain financing for further property development. The
Partnership may benefit from the current economic and financing conditions due
to the general lack of new competitive product being constructed, potentially
causing greater absorption of existing inventory.
The Partnership currently owns the following properties in the Tri-City
Corporate Center area within the Inland Empire submarket of the Southern
California region:
Property Type Square Feet
One Carnegie Plaza Office 102,600
Two Carnegie Plaza Office 68,900
Carnegie Business Center II R & D 50,800
Lakeside Tower Office 112,600
Sante Fe Office 36,300
One Parkside Office 70,100
Bally's Health Club Health Club 25,000
Outback Steakhouse Restaurant 6,500
The Partnership also owns approximately 43 acres of unimproved land in the
Tri-City area.
Additionally, the Partnership currently owns the Rancon Center Ontario property
(245,000 square feet of leasable office space) in Ontario, California plus
approximately 118 acres of unimproved land in various parts of Southern
California.
Page 10 of 15
<PAGE>
In September, 1996, construction of a 6,500 square foot building for Outback
Steakhouse was completed. Outback Steakhouse signed a 10-year ground lease with
four 5-year options which commenced at the end of September, 1996.
Phase I of Rancon Centre Ontario is completed, with the Partnership continuing
to own approximately 245,000 leasable square feet. Phase II received final
approval from the Ontario Planning Commission in November, 1992. Phase II was
originally scheduled to be subdivided into small lots suitable for approximately
39 buildings, ranging between 4,000 and 8,000 square feet. There is currently no
demand for properties such as this and the Partnership has allowed the tentative
map (which would have subdivided the property into small lots) to expire. It is
likely that the Partnership will attempt to identify users interested in
build-to-suit buildings of approximately 250,000 plus square feet. In an effort
to facilitate such build-to-suits, the Partnership purchased a 5.76 acre parcel
in December, 1995 that was located between Phase II and an also undeveloped
Phase III. This purchase also protected the value of the Partnership's
investment by providing the Partnership ownership of contiguous land and
preventing development adverse to the Partnership's interest. Further
development of the unimproved land remaining at Rancon Centre Ontario will
coincide with market demand.
There has been no development to date at the Partnership's Perris-Ethanac Road
or Perris-Nuevo Road projects. Both properties are being marketed for sale by
the Partnership.
The Partnership does not anticipate the sale of any significant portion of its
properties until after the completion of development of such property or upon
liquidation of the Partnership. Any cash generated from property sales may be
utilized in the development of other properties, or distributed to the partners.
On May 10, 1996, the Partnership obtained new permanent financing of $9,600,000.
This loan is a 10-year fixed rate loan with a 25-year amortization, bearing
interest at 9.39%. The loan funded the payoff of an existing loan plus accrued
interest totaling $2,785,000. After paying refinancing fees of $271,000 and
funding $107,000 into a reserve/escrow account, the Partnership netted
$6,437,000. The proceeds were added to the Partnership's cash reserves to allow
management greater flexibility in exploring different options for strengthening
the Partnership's financial position. The new loan requires $83,142 in monthly
principal and interest payments commencing July 1, 1996.
On August 30, 1996, the Partnership entered into a new financing agreement on
its $5,812,000 loan secured by One Carnegie Plaza. As part of the new agreement,
the Partnership made a $1,500,000 principal paydown plus paid $57,000 for
accrued interest and loan fees. In return for the $1,500,000 paydown on the
loan, the lender reduced its rate of interest from 10.0% to 8.25%, thereby
saving the Partnership approximately $75,000 annually on the new balance over
the remaining five years of the loan term. The new loan terms provide for a
maturity date of December 1, 2001 and requires monthly principal and interest
payments of $33,995, commencing November 1, 1996.
Aside from the foregoing, the Partnership knows of no demands, commitments,
events or uncertainties which might effect its liquidity or capital resources in
any material respect. The effect of inflation on the Partnership's business
should be no greater than its effect on the economy as a whole.
Page 11 of 15
<PAGE>
Management believes that the Partnership's cash balance as of September 30,
1996, together with the cash from operations and/or future property sales, will
be sufficient to finance the Partnership's and the properties' continued
operations and development plans.
RESULTS OF OPERATIONS
The Partnership's reporting year end has been changed from November 30 to
December 31. Since the Partnership's operations are not seasonal, comparisons
will reflect the three and nine months ended September 30, 1996 versus the three
and nine months ended August 31, 1995.
Rental income for the three and nine months ended September 30, 1996 increased
$256,000 and $507,000 or 17% and 11% from the three and nine months ended August
31, 1995, respectively, due primarily to the commencement of operations of the
Bally's Health Club on January 1, 1996 and the increased occupancy at two of the
Partnership's larger properties, One Carnegie Plaza and Lakeside Tower.
Occupancy rates at the Partnership's properties as of September 30, 1996 and
August 31, 1995 were as follows:
September 30, August 31,
1996 1995
One Carnegie Plaza 87% 67%
Two Carnegie Plaza 83% 87%
Carnegie Business Center II 65% 77%
Lakeside Tower 77% 66%
Santa Fe 100% 100%
One Parkside 92% 83%
Rancon Centre Ontario 100% 92%
Bally's Health Club 100% n/a
Outback Steakhouse 100% n/a
Tenants at Tri-City occupying substantial portions of leased space include
Medisco Pharmacy, New York Life Insurance, the California Department of
Transportation, State of California Health Services, MacLachlan, Burford and
Arias, the Atchison, Topeka and Santa Fe Rail Company, Sterling Software,
Chicago Title and Bally's Health Club, with leases expiring at various dates
between June, 1997 and December, 2010. These nine tenants, in the aggregate,
occupy approximately 212,000 square feet of the 473,000 total leasable square
feet at Tri-City and account for 53% of the rental income generated at Tri-City
and 48% of the total rental income for the Partnership.
United Pacific Mills, with a lease expiration date of April, 1998, occupies
74,850 square feet of the 245,000 total leasable square feet at Rancon Centre
Ontario and accounts for 26% of the rental income generated at Rancon Centre
Ontario and 3% of the total rental income generated by the Partnership.
Operating expenses for the three and nine months ended September 30, 1996
increased $34,000 and $192,000 or 4% and 8% from the three and nine months ended
August 31, 1995, respectively due primarily to increased operating costs
associated with increased occupancy, including the
Page 12 of 15
<PAGE>
Bally's Health Club (Bally's) facility being placed into service January 1,
1996. This increase in physical occupancy had a smaller impact on rental revenue
than operating expenses due to the accounting treatment of free rent where
rental revenue during the three and nine months ended September 30, 1996 was
reduced to offset free rent given in calendar year 1995, in essence straight
lining rental revenue over the term of the related leases.
Depreciation and amortization for the three and nine months ended September 30,
1996 increased $45,000 and $175,000 or 9% and 11% from the three and nine months
ended August 31, 1995, respectively due in large part to the conversion of the
Bally's facility from a project under construction to a depreciable property.
The increase in leasing commissions associated with the general increase in
occupancy has also resulted in higher amortization expense during the three and
nine months ended September 30, 1996 over the three and nine months ended August
31, 1995.
Interest expense for the three and nine months ended September 30, 1996
increased $189,000 and $389,000 or 102% and 73%, respectively, from the three
and nine months ended August 31, 1995 as a result of the increase in the
Partnership's average outstanding debt in 1996.
After excluding the $83,000 rebate received during the nine months ended August
31, 1995 for services provided by the Sponsor during the 1994 calendar year,
gross general and administrative expenses actually decreased to $909,000 for the
nine months ended September 30, 1996 from $940,000 for the nine months ended
August 31, 1995. The primary reason for the $31,000 or 3% decrease was legal and
other professional fees incurred in December, 1994.
Page 13 of 15
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
#27 - Financial Data Schedule
(b) Reports on Form 8-K:
None.
Page 14 of 15
<PAGE>
SIGNATURE
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.
RANCON REALTY FUND V,
a California Limited Partnership
(Registrant)
Date: November 13, 1996 By:/s/Daniel L. Stephenson
Daniel L. Stephenson, General Partner
and Director, President, Chief Executive
Officer and Chief Financial Officer of
Rancon Financial Corporation,
General Partner of Rancon Realty Fund V,
a California Limited Partnership
Page 15 of 15
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000769131
<NAME> RANCON REALTY FUND V
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 5455
<SECURITIES> 0
<RECEIVABLES> 183
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5638
<PP&E> 61334
<DEPRECIATION> (14801)
<TOTAL-ASSETS> 54640
<CURRENT-LIABILITIES> 743
<BONDS> 13883
0
0
<COMMON> 0
<OTHER-SE> 40014
<TOTAL-LIABILITY-AND-EQUITY> 54640
<SALES> 0
<TOTAL-REVENUES> 5271
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5642
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 919
<INCOME-PRETAX> (1290)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1290)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1290)
<EPS-PRIMARY> (12.80)
<EPS-DILUTED> (12.80)
</TABLE>
