UNITED STATES
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 quarterly period ended September 30, 1995
-------------------------------------------------
[ ] 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
0-15771
GUARANTEED HOTEL INVESTORS 1985, L.P.
and
FFCA INVESTOR SERVICES CORPORATION 85-A
- --------------------------------------------------------------------------------
(Exact name of Co-Registrants as Specified in their
Organizational Documents)
Delaware 86-0537905
- --------------------------------------------------------------------------------
(Partnership State of Organization) (Partnership I.R.S. Employer
Identification Number)
Delaware 86-0537910
- --------------------------------------------------------------------------------
(Corporation State of Incorporation) (Corporation I.R.S. Employer
Identification Number)
The Perimeter Center 17207 North Perimeter Drive Scottsdale, Arizona 85255
- --------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
Co-Registrants' telephone number including area code (602) 585-4500
---------------------------
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
---- ----
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.
----------------------------
GUARANTEED HOTEL INVESTORS 1985, L.P.
BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
(Unaudited)
September 30, December 31,
1995 1994
--------------- ----------------
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 5,978,008 $ 5,652,192
Accounts receivable, trade 766,925 745,923
Other receivables (Note 1) 860,756 --
Prepaids and other 399,993 760,672
--------------- ---------------
Total current assets 8,005,682 7,158,787
--------------- ---------------
PROPERTY AND EQUIPMENT:
Land and improvements 5,396,153 5,396,153
Buildings and improvements 41,156,584 40,870,254
Furniture and equipment 8,127,884 7,684,026
--------------- ---------------
54,680,621 53,950,433
Less - Accumulated depreciation
and amortization (8,380,345) (6,750,120)
--------------- ---------------
46,300,276 47,200,313
Operating stock 333,580 349,857
--------------- ---------------
Total assets $ 54,639,538 $ 54,708,957
=============== ===============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
CURRENT LIABILITIES:
Distribution payable to limited
partners $ 1,002,104 $ 1,002,104
Payable to general partner 10,101 10,101
Disputed liabilities (Note 1) -- 1,112,714
Accounts payable and accrued
liabilities 1,293,634 1,232,650
Property taxes payable 1,066,500 661,148
Current portion of capital
lease obligations 140,324 184,888
--------------- ---------------
Total current liabilities 3,512,663 4,203,605
CAPITAL LEASE OBLIGATIONS, less
current portion 20,148 111,689
--------------- ---------------
Total liabilities 3,532,811 4,315,294
--------------- ---------------
CONTINGENCIES (Note 1)
PARTNERS' CAPITAL (DEFICIT):
General partner (323,889) (331,020)
Limited partners 51,430,616 50,724,683
--------------- ---------------
Total partners' capital 51,106,727 50,393,663
--------------- ---------------
Total liabilities and
partners' capital $ 54,639,538 $ 54,708,957
=============== ===============
<PAGE>
<TABLE>
GUARANTEED HOTEL INVESTORS 1985, L.P.
STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
9/30/95 9/30/94 9/30/95 9/30/94
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUE:
Room revenue $ 4,171,739 $ 3,388,871 $ 13,857,553 $ 13,084,438
Food and beverage revenue 466,419 839,785 2,149,271 1,805,592
Other revenue (Note 1) 1,186,930 372,313 2,147,607 1,311,177
------------- ------------- ------------- -------------
Total revenue 5,825,088 4,600,969 18,154,431 16,201,207
------------- ------------- ------------- -------------
EXPENSES (Note 1):
Property operating costs and
expenses 1,641,869 1,908,679 5,473,020 3,988,008
General and administrative 663,244 773,469 2,337,459 4,565,448
Advertising and promotion 513,995 372,337 1,648,739 597,876
Utilities 298,084 332,636 885,526 926,654
Repairs and maintenance 268,573 284,538 812,917 603,918
Property taxes and insurance 409,644 435,661 1,261,815 1,357,647
Interest expense and other 28,659 28,400 87,856 66,935
Depreciation and amortization 608,440 609,879 1,841,023 1,874,228
Loss on sale or disposition of
property 59,742 3,146 62,709 9,653
------------- ------------- ------------- -------------
Total expenses 4,492,250 4,748,745 14,411,064 13,990,367
------------- ------------- ------------- -------------
NET INCOME (LOSS) $ 1,332,838 $ (147,776) $ 3,743,367 $ 2,210,840
============= ============= ============= =============
NET INCOME (LOSS) ALLOCATED TO:
General partner $ 13,328 $ (1,478) $ 37,434 $ 22,108
Limited partners 1,319,510 (146,298) 3,705,933 2,188,732
------------- ------------- ------------- -------------
$ 1,332,838 $ (147,776) $ 3,743,367 $ 2,210,840
============= ============= ============= =============
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT (based on
200,000 units outstanding) $ 6.60 $ (.73) $ 18.53 $ 10.94
============= ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
GUARANTEED HOTEL INVESTORS 1985, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<CAPTION>
Limited Partners
General --------------------------
Partner Number Total
Amount of Units Amount Amount
------------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
BALANCE, December 31, 1994 $ (331,020) 200,000 $ 50,724,683 $ 50,393,663
Net income 37,434 -- 3,705,933 3,743,367
Distributions to partners (30,303) -- (3,000,000) (3,030,303)
------------- ----------- ------------- -------------
BALANCE, September 30, l995 $ (323,889) 200,000 $ 51,430,616 $ 51,106,727
============ =========== ============ ============
</TABLE>
<PAGE>
GUARANTEED HOTEL INVESTORS 1985, L.P.
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 3,743,367 $ 2,210,840
Adjustments to net income:
Depreciation and amortization 1,841,023 1,874,228
Loss on sale or disposition of property 62,709 9,653
Change in assets and liabilities:
Increase in accounts receivable, trade (21,002) (296,071)
Increase in other receivables (860,756) --
Decrease in prepaids and other 360,679 476,092
Increase (decrease) in disputed liabilities (1,112,714) 208,468
Increase in accounts payable and
accrued liabilities 60,984 59,913
Increase in property taxes payable 405,352 432,344
----------- -----------
Net cash provided by operating activities 4,479,642 4,975,467
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property additions and improvements (1,020,288) (1,042,412)
Proceeds from sale of property 16,593 4,450
Decrease (increase) in operating stock 16,277 (80,312)
----------- -----------
Net cash used in investing activities (987,418) (1,118,274)
----------- -----------
CASH FLOWS FOR FINANCING ACTIVITIES:
Distributions to partners (3,030,303) (3,030,303)
Payments on capital lease obligations (136,105) (117,605)
----------- -----------
Net cash used in financing activities (3,166,408) (3,147,908)
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 325,816 709,285
CASH AND CASH EQUIVALENTS, beginning of period 5,652,192 5,967,056
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 5,978,008 $ 6,676,341
=========== ===========
<PAGE>
GUARANTEED HOTEL INVESTORS 1985, L.P.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(Unaudited)
1) CONTINGENCIES:
-------------
Disputed Liabilities - In connection with the Texas State court
---------------------
litigation settlement, the Partnership agreed to pay Crown Sterling
Management (CSM) for management services through May 19, 1994 and to
reimburse or be reimbursed by CSM for certain expenses subject to
verification and reconciliation by an outside independent accounting firm.
The independent accounting firm's report, in summary, concluded that no
amount was owed by the Partnership to CSM. CSM disputed these findings and
filed a motion to set aside the accounting firm's report. On June 10, 1995,
the District Court disallowed a major portion of the accounting firm's
report and ordered that the Partnership pay CSM $772,043, which the
Partnership had previously recorded as a liability. After depositing
approximately $850,000 into an escrow account with the Texas State court to
cover the liability to CSM, including other costs, the Partnership was
granted its motion for a new trial on September 8, 1995. The Partnership
began negotiations with CSM related to property taxes on the hotels that the
Partnership paid in 1991 which otherwise should have been paid by Woolley
and Sweeney. The 1992 settlement documents between the Partnership and
Woolley and Sweeney state that, under certain circumstances, Woolley and
Sweeney would be obligated to reimburse the Partnership for the property
taxes in 1996. CSM has agreed to exchange their tax obligation to the
Partnership for the pending payment of the $772,043 to CSM. Accordingly, the
Partnership reduced its liability by $772,043 which reduction is reflected
as other revenue in the accompanying statement of income. Amounts
recoverable from the Texas State court escrow account related to settlement
of this dispute are included in other receivables in the accompanying
balance sheet. This concludes all outstanding items of dispute with CSM.
Contract Termination Fee - During 1994, Doubletree Partners , the
--------------------------
hotels' management company, spent $1,425,000 for purposes of management
assumption, brand conversion, and renovation of the three hotels owned by
the Partnership in connection with the management agreements between
Doubletree Partners and the Partnership. The management agreements provide
that if the Partnership sells the hotels during years 1 through 5 of the
agreements and Doubletree Partners is not retained by the new owners as
manager of the hotels, all of the $1,425,000 is to be reimbursed to
Doubletree Partners as a sale termination fee, and if the sale occurs in
years 6 through 10, fifty percent of the amount is to be reimbursed. In
connection with the proposed sale of the hotels referred to below, the
potential purchaser has agreed to assume this contingent liability.
Proposed Sale of the Hotels - The general partner of the Partnership
---------------------------
believes that the conditions in the hotel industry have substantially
improved over the past several years and that a sale of the hotels owned by
the Partnership is now appropriate. The partnership agreement provides that
the sale of substantially all the assets of the Partnership be approved by a
majority of the Partnership's investors, and that such a sale would result
in the liquidation of the Partnership and the distribution of assets to the
investors.
On behalf of the Partnership, the general partner engaged an investment
banking firm, with substantial experience in executing transactions for the
hotel industry, to provide services to the Partnership in connection with a
possible sale of the hotels. The investment banking firm identified
potential purchasers for the hotels.
After a review of bids from potential purchasers, the Partnership entered
into an agreement on October 27, 1995 to sell, subject to the consent of the
Partnership's investors and the satisfactory completion of due diligence by
the potential purchaser, fee simple title to the three hotels, for a cash
payment of $73,250,000. The potential purchaser is not affiliated with the
general partner or the Partnership.
The general partner of the Partnership anticipates filing a preliminary
proxy statement in the near future with the Securities and Exchange
Commission and, subsequently, sending each investor in the Partnership a
definitive proxy statement and consent card which will contain the details
of the proposed transaction, including an estimate of the amount and timing
of cash distributions.
<PAGE>
PART I - FINANCIAL INFORMATION
- --------------------------------
Item 2. Management's Discussion and Analysis of
- ------ Financial Condition and Results of Operations
---------------------------------------------
Liquidity and Capital Resources
As of September 30, 1995, Guaranteed Hotel Investors 1985, L.P. (the
Partnership) had received $100,000,000 in gross proceeds from its offering
of assigned limited partnership interests (Units). Net funds available for
investment, after payment of sales commissions and organization costs,
amounted to $89,000,000. The offering of Units is the Partnership's sole
source of capital, and since the final closing of limited partnership units
was held on May 9, 1986, the Partnership will not receive additional funds
from the offering. As of November 1986, the Partnership was fully invested.
As of September 30, 1995, the Partnership's balance sheet reflected
$4,493,019 of working capital, which represents an increase of $1,537,837
from the December 31, 1994 working capital amount of $2,955,182. During the
nine months ended September 30, 1995, the Partnership generated cash from
operating activities of $4,479,642 as compared to $4,975,467 generated in
the same period in 1994. The difference between periods is due primarily to
an increase in other receivables during the nine months ended September 30,
1995, which represents funds in escrow with a Texas State court related to
the settlement with Woolley and Sweeney discussed below under "Litigation".
These funds are expected to be returned to the Partnership in the fourth
quarter of 1995. Cash used for investing activities during the nine months
ended September 30, 1995 was $987,418 which principally consisted of hotel
renovations of $1,020,288 as compared to $1,042,412 in capital expenditures
during the comparable period in 1994. Ongoing capital improvements related
to hotel renovations of approximately $150,000 are scheduled to continue
through December 1995. Management believes that its existing cash and
short-term investments will be sufficient to fund the Partnership's
operations and capital outlays. The Partnership declared a cash distribution
to the limited partners of $1,000,000 for the quarter ended September 30,
1995, which, combined with the first and second quarterly distributions of
$2,000,000 amounts to $3,000,000 year to date. Funds held by the Partnership
during the period were invested in U.S. Government Agency discount notes and
bank repurchase agreements (which are secured by United States Treasury and
Government obligations).
During 1994, Doubletree Partners, the hotels' management company, spent
$1,425,000 for purposes of management assumption, brand conversion, and
renovation of the three hotels owned by the Partnership in connection with
the management agreements between Doubletree Partners and the Partnership.
The management agreements provide that if the Partnership sells the hotels
during years 1 through 5 of the agreements and Doubletree Partners is not
retained by the new owners as manager of the hotels, all of the $1,425,000
is to be reimbursed to Doubletree Partners as a sale termination fee, and if
the sale occurs in years 6 through 10, fifty percent of the amount is to be
reimbursed. In connection with the proposed sale of the hotels referred to
below, the potential purchaser has agreed to assume this contingent
liability.
The general partner of the Partnership believes that the conditions in the
hotel industry have substantially improved over the past several years and
that a sale of the hotels owned by the Partnership is now appropriate. The
partnership agreement provides that the sale of substantially all the assets
of the Partnership be approved by a majority of the Partnership's investors,
and that such a sale would result in the liquidation of the Partnership and
the distribution of assets to the investors.
On behalf of the Partnership, the general partner engaged an investment
banking firm, with substantial experience in executing transactions for the
hotel industry, to provide services to the Partnership in connection with a
possible sale of the hotels. The investment banking firm identified
potential purchasers for the hotels.
After a review of bids from potential purchasers, the Partnership entered
into an agreement on October 27, 1995 to sell, subject to the consent of the
Partnership's investors and the satisfactory completion of due diligence by
the potential purchaser, fee simple title to the three hotels, for a cash
payment of $73,250,000. The potential purchaser is not affiliated with the
general partner or the Partnership.
The general partner of the Partnership anticipates filing a preliminary
proxy statement in the near future with the Securities and Exchange
Commission and, subsequently, sending each investor in the Partnership a
definitive proxy statement and consent card which will contain the details
of the proposed transaction, including an estimate of the amount and timing
of cash distributions.
Results of Operations
Room revenue increased by $782,868 or 23% to $4,171,739 for the quarter as
compared to $3,388,871 for the same quarter of the prior year. This increase
is primarily attributable to the Irving, TX hotel ($523,567) due to an
increase in the percentage of occupancy at the hotel from 61.93% to 82.63%.
To a lesser extent, increases in room revenue were generated by the Ft.
Lauderdale, FL hotel ($192,097) and the Tampa, FL hotel ($67,204) which are
beginning to regain some of the market share that was lost as a result of
the litigation discussed below. For the Florida hotels, gains in percentage
of occupancy of the hotels were offset by decreases in the average daily
room rate.
Food and beverage revenue decreased by $373,366 or 44% for the quarter as
compared to the same quarter of the prior year. The decrease primarily
related to leasing the Irving food and beverage facilities to a third party
in 1995 rather than operating the facilities directly, as was done in 1994,
causing a reduction in food and beverage expenses.
Other revenues of $1,186,930 for the quarter increased by $814,617 over the
same quarter of the prior year due to the reversal, during the quarter, of
the disputed liabilities as discussed below under "Litigation".
Although room revenue increased during the quarter ended September 30, 1995,
property operating costs and expenses decreased to $1,641,869 for the
quarter from $1,908,679 for the comparable quarter of the prior year. This
decrease is primarily attributable to cost savings realized from being
associated with a fully integrated hotel chain such as Doubletree. General
and administrative expenses also decreased to $663,244 for the quarter from
$773,469 for the same quarter in 1994. This decrease primarily resulted from
a reduction of approximately $73,000 in legal expense as the litigation with
Crown Sterling Management was substantially over as of June 30, 1995 (see
"Litigation" below).
Advertising and promotion increased by $141,658 to $513,995 for the quarter
as compared to $372,337 for the same quarter of the prior year. Doubletree
Hotels instituted a national marketing plan in 1995 and, accordingly, the
hotels pay a percentage of room revenue for this new marketing program.
Additionally, to cultivate the market share that was lost as a result of the
litigation, extra marketing personnel were hired and additional advertising
expense was incurred.
According to industry statistics that the Partnership believes to be
reliable, the average daily room rate (ADR) is projected to increase in 1995
at a rate in excess of inflation, while at the same time occupancy is
projected to reach approximately 63%. These statistics are true for the
industry as a whole although certain markets may be stronger or weaker.
Certain key statistics and financial information related to the
Partnership's hotel operations were obtained from the unaudited financial
statements as reported by Doubletree Partners for the three months ended
September 30, 1995 as compared to the same period of the prior year.
<TABLE>
<CAPTION>
ADR* - Qtr Ended % of Occupancy - Qtr Ended REVPAS** - Qtr Ended
-------------------- -------------------------- --------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994 1995 1994
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Fort Lauderdale $67.94 $73.26 62.33% 47.17% $42.33 $34.13
Tampa $78.29 $79.75 58.80% 52.83% $45.09 $42.24
Irving $89.81 $89.82 82.63% 61.93% $74.19 $55.64
* Average Daily Room Rate
** Revenue Per Available Suite
</TABLE>
The hotel business, in general, fluctuates seasonally depending on the
individual hotel's location and type of target market each property serves.
The Partnership's hotel located in Irving, Texas is situated near an
airport, primarily serves the business traveler market and its business is
fairly consistent throughout the year. The Ft. Lauderdale hotel is impacted
by the tourist market, while also focusing on the corporate market, and its
busiest season is January through April due to the Florida climate. The
hotel located in Tampa, Florida is also impacted cyclically by the Florida
climate, however, it is located near the Tampa International Airport and
therefore its cycles are less predominant.
Litigation
In connection with the Texas State court litigation settlement, the
Partnership agreed to pay Crown Sterling Management (CSM) for management
services through May 19, 1994 and to reimburse or be reimbursed by CSM for
certain expenses subject to verification and reconciliation by an outside
independent accounting firm. The independent accounting firm's report, in
summary, concluded that no amount was owed by the Partnership to CSM. CSM
disputed these findings and filed a motion to set aside the accounting
firm's report. On June 10, 1995, the District Court disallowed a major
portion of the accounting firm's report and ordered that the Partnership pay
CSM $772,043, which the Partnership had previously recorded as a liability.
After depositing approximately $850,000 into an escrow account with the
Texas State Court to cover the liability to CSM, including other costs, the
Partnership was granted its motion for a new trial on September 8, 1995. The
Partnership began negotiations with CSM related to property taxes on the
hotels that the Partnership paid in 1991 which otherwise should have been
paid by Woolley and Sweeney. The 1992 settlement documents between the
Partnership and Woolley and Sweeney state that, under certain circumstances,
Woolley and Sweeney would be obligated to reimburse the Partnership for the
property taxes in 1996. CSM has agreed to exchange their tax obligation to
the Partnership for the pending payment of the $772,043 to CSM. Accordingly,
the Partnership reduced its liability by $772,043 which reduction is
reflected as other revenue in the accompanying Statement of Income. Amounts
recoverable from the Texas State Court escrow account related to settlement
of this dispute are included in other receivables in the accompanying
balance sheet. This concludes all outstanding items of dispute with CSM.
In the opinion of management, the financial information included in this
report reflects all adjustments necessary for fair presentation. All such
adjustments are of a normal recurring nature, except for disputed items
related to the CSM lawsuit which have been reclassified on the Statement of
Income for the nine months ended September 30, 1994.
<PAGE>
FFCA INVESTOR SERVICES CORPORATION 85-A
---------------------------------------
BALANCE SHEET - SEPTEMBER 30, 1995
----------------------------------
ASSETS
Cash $100
Investment in Guaranteed Hotel Investors 1985, L.P.,
at cost 100
----
Total Assets $200
====
LIABILITY
Payable to Parent $100
----
STOCKHOLDER'S EQUITY
Common Stock; $l par value; 100 shares authorized,
issued and outstanding 100
----
Liability and Stockholder's Equity $200
====
Note: FFCA Investor Services Corporation 85-A (a Delaware corporation) (85-A)
was organized on June 28, 1985 to act as the assignor limited partner in
Guaranteed Hotel Investors 1985, L.P. (GHI-85). The assignor limited
partner is the owner of record of the limited partnership units of GHI-85.
All rights and powers of 85-A have been assigned to the holders, who are
the registered and beneficial owners of the units. Other than to serve as
assignor limited partner, 85-A has no other business purpose and will not
engage in any other activity or incur any debt.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
co-registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FFCA INVESTOR SERVICES CORPORATION 85-A
Date: November 8, 1995 By /s/ John R. Barravecchia
-------------------------------------------
John Barravecchia, President
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
co-registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GUARANTEED HOTEL INVESTORS 1985, L.P.
By FFCA MANAGEMENT COMPANY, L.P.
General Partner
By PERIMETER CENTER MANAGEMENT COMPANY
Corporate General Partner
Date: November 8, 1995 By /s/ John R. Barravecchia
-------------------------------------------
John Barravecchia, Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AS OF SEPTEMBER 30, 1995 AND
THE STATEMENT OF INCOME FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000773933
<NAME> GUARANTEED HOTEL INVESTORS 1985, L.P.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 5,978,008
<SECURITIES> 0
<RECEIVABLES> 766,925
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 8,005,682
<PP&E> 54,680,621
<DEPRECIATION> 8,380,345
<TOTAL-ASSETS> 54,639,538
<CURRENT-LIABILITIES> 3,512,663
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 51,106,727
<TOTAL-LIABILITY-AND-EQUITY> 54,639,538
<SALES> 0
<TOTAL-REVENUES> 18,154,431
<CGS> 0
<TOTAL-COSTS> 14,411,064
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,743,367
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,743,367
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,743,367
<EPS-PRIMARY> 18.53
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AS OF SEPTEMBER 30, 1995
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
BALANCE SHEET.
</LEGEND>
<CIK> 0000778969
<NAME> FFCA INVESTOR SERVICES CORPORATION 85-A
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 100
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 200
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 100
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 200
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
