<PAGE>
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, 1996
--------------------------------------------------
or
[_] TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the transition period from to
------------------------ ------------------------
Commission file number 0-19156
----------------------------------------------------------
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED, a Maryland corporation
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
MARYLAND 13-3559213
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation (I.R.S. Employer Identification
or organization) No.)
50 ROCKEFELLER PLAZA, NEW YORK, NEW YORK 10020
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(212) 492-1100
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(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.
[X] Yes [_] No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 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
7,206,642 shares of common stock; $.001 Par Value
outstanding at November 11, 1996
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
INDEX
<TABLE>
<CAPTION>
Page No.
--------
PART 1
- ------
<C> <S> <C>
Item 1. - Financial Information*
Consolidated Balance Sheets, December 31, 1995
and September 30, 1996 2
Consolidated Statements of Operations for the
three and nine months ended September 30, 1995
and 1996 3
Consolidated Statements of Cash Flows for the
nine months ended September 30, 1995 and 1996 4
Notes to Consolidated Financial Statements 5-7
Item 2. - Management's Discussion of Operations 8-9
PART II
- -------
Item 4. - Submission of Matters to a Vote of Security Holders 10
Item 6. - Exhibits and Reports on Form 8-K 10
Signatures 11
</TABLE>
*The summarized financial information contained herein is unaudited; however in
the opinion of management, all adjustments necessary for a fair presentation of
such financial information have been included.
-1-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
PART I
-------
Item 1. - FINANCIAL INFORMATION
-------------------------------
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, September 30,
1995 1996
------------ -------------
(Note) (Unaudited)
<S> <C> <C>
ASSETS:
Land and buildings, net of
accumulated depreciation of
$8,686,779 at December 31, 1995 and
$10,191,915 at September 30, 1996 $ 91,413,487 $ 88,834,977
Net investment in direct financing leases 26,526,818 25,421,758
Investment in real estate trust 10,432,181 10,900,562
Real estate held for sale 10,079,819
Cash and cash equivalents 2,249,315 6,691,756
Accrued interest and rents receivable 47,431 86,514
Other assets 689,358 775,079
------------ ------------
Total assets $141,438,409 $132,710,646
============ ============
LIABILITIES:
Limited recourse mortgage notes payable $ 84,384,583 $ 75,166,595
Accrued interest payable 850,986 1,272,900
Accounts payable and accrued expenses 240,505 239,329
Accounts payable to affiliates 3,044,843 3,738,560
Prepaid rental income 44,337 41,581
------------ ------------
Total liabilities 88,565,254 80,458,965
------------ ------------
Minority interest 2,987,811 2,827,701
------------ ------------
SHAREHOLDERS' EQUITY:
Common stock, $.001 par value;
authorized,7,217,294 shares;
issued and outstanding 7,217 7,217
Additional paid-in capital 62,160,058 62,160,058
Dividends in excess of accumulated
earnings (12,193,839) (12,655,203)
------------ ------------
49,973,436 49,512,072
Less treasury stock, 10,652 shares (88,092) (88,092)
------------ ------------
Total shareholders' equity 49,885,344 49,423,980
------------ ------------
Total liabilities and shareholders'
equity $141,438,409 $132,710,646
============ ============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Note: The balance sheet at December 31, 1995 has been derived from the
audited consolidated financial statements at that date.
-2-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, 1995 September 30, 1996 September 30, 1995 September 30, 1996
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Revenues:
Rental income from
operating leases $ 2,908,885 $ 2,849,302 $ 9,098,380 $8,978,389
Interest from direct
financing leases 959,520 809,194 2,881,822 2,570,949
Other interest income 33,077 97,262 151,313 239,718
----------- ----------- ----------- -----------
3,901,482 3,755,758 12,131,515 11,789,056
----------- ----------- ----------- -----------
Expenses:
Interest 2,051,205 1,928,651 6,091,600 5,977,736
Depreciation 482,944 503,219 1,448,828 1,505,136
General and
administrative 213,304 248,237 700,916 764,090
Property expenses 458,734 544,809 1,315,414 1,417,551
Amortization 14,052 11,614 52,211 40,573
Writedown to net realizable value 7,519,431 7,519,431
----------- ----------- ----------- -----------
10,739,670 3,236,530 17,128,400 9,705,086
----------- ----------- ----------- -----------
(Loss) income before minority
interest in (loss) income,
income from equity
investments and net gain on
sales of real estate (6,838,188) 519,228 (4,996,885) 2,083,970
Minority interest in loss (income) 2,291,704 (260,439) 1,981,833 (436,507)
----------- ----------- ----------- -----------
(Loss) income before income
from equity investments
and net gains on sale of
real estate (4,546,484) 258,789 (3,015,052) 1,647,463
Income from equity
investments 367,111 422,273 1,220,414 1,325,486
----------- ----------- ----------- -----------
(Loss) income before net gain
on sales of real estate (4,179,373) 681,062 (1,794,638) 2,972,949
Net gain on sales of real estate (60,664) 1,051,822
----------- ----------- ----------- -----------
Net (loss) income $(4,179,373) $ 620,398 $(1,794,638) $4,024,771
=========== =========== =========== ==========
Net (loss) income per share $.(58) $.09 $.(25) $.56
=========== =========== =========== ==========
Weighted average shares
outstanding 7,206,642 7,206,642 7,210,154 7,206,642
=========== =========== =========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-3-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
--------------------------
1995 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net (loss) income $ (1,794,638) $4,024,771
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization 1,501,039 1,545,709
Minority interest in loss (1,981,833)
Equity income from investment in real estate
investment trust in excess of dividends received (239,242) (468,381)
Other noncash items 37,861
Writedown to net realizable value 7,519,431
Net gain on sales of real estate (1,051,822)
Net change in operating assets and liabilities 82,738 951,047
------------ ------------
Net cash provided by operating activities 5,125,356 5,001,324
------------ ------------
Cash flows from investing activities:
Proceeds from sale of real estate 13,673,908
Purchases of real estate and other capitalized costs (11,460,731) (368,558)
Funds released from escrow in connection with
investing activities 5,122,501
------------ ------------
Net cash (used in) provided by investing activities (6,338,230) 13,305,350
------------ ------------
Cash flows from financing activities:
Dividends paid (4,480,103) (4,486,135)
Proceeds from note payable 2,480,000
Repayment of note payable (2,480,000)
Payments of mortgage payable (8,382,243)
Payments of mortgage principal (665,504) (835,745)
Proceeds from mortgages 12,000,000
Payment of construction loan (6,000,000)
Distributions to minority interest in excess of
minority interest in (loss) income (650,483) (160,110)
Purchase of treasury stock (88,092)
------------ ------------
Net cash provided by (used in) financing activities 115,818 (13,864,233)
------------ ------------
Net (decrease) increase in cash and cash equivalents (1,097,056) 4,442,441
Cash and cash equivalents, beginning of period 3,367,392 2,249,315
------------ ------------
Cash and cash equivalents, end of period $ 2,270,336 $ 6,691,756
============ ============
Supplemental disclosure of cash flows information:
Interest paid $ 6,302,072 $ 5,555,822
============ ============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-4-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note 1. Basis of Presentation:
---------------------
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. For further information, refer to the financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1995.
Note 2. Transactions with Related Parties:
---------------------------------
For the three-month and nine-month periods ended September 30, 1995, the Company
incurred asset management fees of $195,634 and $584,676, respectively,
performance fees in like amount and general and administrative expense
reimbursements of $79,000 and $251,589, respectively, payable to an affiliate.
For the three-month and nine-month periods ended September 30, 1996, the Company
incurred asset management fees of $211,938 and $648,641, respectively, incentive
fees in like amount and general and administrative expense reimbursements of
$124,239 and $316,961, respectively, payable to an affiliate.
The Company, in conjunction with certain affiliates, is a participant in a cost
sharing agreement for the purpose of renting and occupying office space. Under
the agreement, the Company pays its proportionate share of rent and other costs
of occupancy. Net expenses incurred for the nine-month periods ended
September 30, 1995 and 1996 were $100,934 and $103,196, respectively.
Note 3. Dividends:
---------
Dividends declared and paid to shareholders during the nine months ended
September 30, 1996 are summarized as follows:
<TABLE>
<CAPTION>
Quarter Ended Paid Per Share
------------------- ---------- ---------
<S> <C> <C>
December 31, 1995 $1,495,378 $0.2075
========== =======
March 31, 1996 $1,495,379 $0.2075
========== =======
June 30, 1996 $1,495,378 $0.2075
========== =======
</TABLE>
A dividend of $.2075 per share ($1,495,378) was declared and paid in
October 1996 for the quarter ended September 30, 1996.
-5-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
Note 4. Industry Segment Information:
----------------------------
The Company's operations consist of the direct and indirect investment in and
leasing of industrial and commercial real estate. The financial reporting
sources of leasing revenues for the nine-month periods ended September 30, 1995
and 1996 are as follows:
<TABLE>
<CAPTION>
1995 1996
---- ----
<S> <C> <C>
Per Statements of Income:
Rental income from operating leases $ 9,098,380 $ 8,978,389
Interest from direct financing leases 2,881,822 2,570,949
Adjustments:
Rental income attributable to
minority interests (1,649,730) (1,437,986)
Share of interest income from equity
investment's direct financing lease 3,277,868 3,291,380
----------- -----------
$13,608,340 $13,402,732
=========== ===========
</TABLE>
For the nine-month periods ended September 30, 1995 and 1996, the Company earned
its proportionate net lease revenues from its investments from the following
lease obligors:
<TABLE>
<CAPTION>
1995 % 1996 %
---- ---- ---- ----
<S> <C> <C> <C> <C>
Marriott International, Inc. (a) $ 3,277,868 24% $ 3,291,380 25%
Information Resources Incorporated (b) 2,057,288 15 2,187,010 17
The Titan Corporation (b) 1,514,275 11 1,514,275 11
New WAI, L.P./Warehouse Associates 1,081,223 8 1,120,577 8
EnviroWorks, Inc. 58,117 1 1,040,818 8
Harvest Foods, Inc. 928,719 7 929,411 7
Wal-Mart Stores, Inc. 786,564 6 787,062 6
Kmart Corporation 633,993 5 671,981 5
Child Time Childcare Inc. 556,844 4 556,844 4
Neodata Corporation 416,871 3 427,504 3
CalComp Technology, Inc. (formerly
Summagraphics Corporation) 330,261 2 271,404 2
Empire of America Realty Credit Corp. 678,022 5 188,322 1
Best Buy Co., Inc. 235,963 2 117,419 1
US West Communications, Inc. 166,950 1 166,950 1
Safeway Stores Incorporated 295,313 2 131,775 1
Xerox Corporation (b) 590,069 4
----------- ---- ----------- ----
$13,608,340 100% $13,402,732 100%
=========== ==== =========== ====
</TABLE>
(a) Represents the Company's proportionate share of lease revenues from an
equity investment.
(b) Net of Corporate Property Associates 9's minority interest.
-6-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
Note 5. Equity Investment:
-----------------
The Company owns an approximate 23.7% interest in Marcourt Investments
Incorporated ("Marcourt") which net leases 13 hotel properties to a wholly-owned
subsidiary of Marriott International, Inc. Summarized financial information of
Marcourt is as follows:
<TABLE>
<CAPTION>
(in thousands)
December 31, 1995 September 30, 1996
------------------ ------------------
<S> <C> <C>
Assets $149,910 $149,978
Liabilities 108,876 106,799
Shareholders' equity 41,034 43,179
Nine Months Ended
September 30, 1995 September 30, 1996
------------------ ------------------
<S> <C> <C>
Revenue $13,698 $14,088
Interest and other expense 8,604 8,344
------- -------
Net income $ 5,094 $ 5,744
======= =======
</TABLE>
Note 6. Property in Stamford, Connecticut:
---------------------------------
In January 1991, the Company and Corporate Property Associates 9, L.P.
("CPA(R):9"), an affiliate, formed a limited partnership with the Company
contributing $3,200,000 for a 68.085% ownership interest as the sole general
partner and CPA(R):9 contributing $1,500,000 for a 31.915% ownership interest as
limited partner. With such contributed capital and the assumption of a limited
recourse mortgage loan obligation of $6,300,000, the limited partnership
purchased an office building in Stamford, Connecticut for $11,000,000 and
assumed an existing net lease, as lessor, with Xerox Corporation ("Xerox"), as
lessee. In August 1994, Xerox declined to exercise its option to extend the
lease and subsequently vacated the property at the end of the lease term in
August 1995. Due to market conditions, the limited partnership was unsuccessful
in its efforts to remarket the property and find a new lessee. In addition, the
mortgage loan was scheduled to mature in September 1995. The limited partnership
attempted to negotiate with the lender, proposing alternatives such as extending
the maturity, satisfying the balloon payment obligation at a substantial
discount or selling the property back to the lender for $10,000 in excess of the
mortgage balance of $6,300,000. Although the lender had tentatively agreed to
the proposal to purchase the property, the lender decided not to complete the
transaction. Given these circumstances and an assessment that the net realizable
value of the property was less than the mortgage balance, in 1995 the Company
wrote down the property to its estimated fair value of $2,490,000.
Because of the impasse with the lender, the limited partnership retains
ownership of the property. In October 1996, the Boards of Directors of the
Corporate General Partner of CPA(R):9 and the Company approved a proposal that
would allow the Company to transfer all or a portion of its ownership in the
limited partnership to CPA(R)9 for nominal consideration. There is no assurance
that any transfer of interests will be completed.
-7-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
Item 2. - MANAGEMENT'S DISCUSSION OF OPERATIONS
-----------------------------------------------
Results of Operations:
- ---------------------
Net income for the three-month and nine-month periods ended September 30,
1996 increased by $4,800,000 and $5,819,000, respectively, as compared with net
income for the three-month and nine-month periods ended September 30, 1995. The
increase in net income was due to the writedown to net realizable value of the
Stamford, Connecticut property in the third quarter of 1995, which, net of the
portion of such writedown applicable to a minority interest, reduced 1995
earnings by $5,119,000 and gains on the sale of properties in 1996. Income
before gain on sales, excluding the effects of the writedown, reflected
decreases of $259,000 and $351,000 for the comparable three-month and nine-month
periods, respectively, ended September 30, 1996 as compared with the similar
periods ended September 30, 1995.
The decreases in income before gains and excluding the writedown were due
to decreases in lease revenues and increases in property expenses and were
partially offset by increases in other interest income and income from the
Company's equity investment in a real estate investment trust which net leases
13 Courtyard by Marriott hotels to Marriott International, Inc. ("Marriott").
Lease revenues decreased due to the sales of the property leased to Empire of
America Realty Credit Corp. ("Empire") and two properties leased to Safeway
Supermarkets Incorporated ("Safeway") in the first quarter of 1996, the sale of
the property leased to Best Buy Co., Inc. ("Best Buy") in the second quarter of
1996 and the termination of the Xerox Corporation ("Xerox") lease in August
1995. Such revenue decreases were partially offset by rent from the EnviroWorks,
Inc. which commenced in September 1995 and a rent increase effective October
1995 on the Company's lease with Information Resources, Inc. Other interest
income increased due to interest earned on the proceeds from the aforementioned
sales. Equity income from the Marriott investment increased due to the
continuing amortization of principal on its limited recourse mortgage loan which
is fully amortizing over 16 3/4 years and an increase in rentals received
pursuant to a sales override provision in the Marriott lease.
Financial Condition:
- -------------------
There has been no material change in the Company's financial condition
since December 31, 1995. The Company's cash position has improved substantially
due to the proceeds received from property sales which were net of amounts used
to satisfy mortgage indebtedness on such properties amounted to $7,772,000. The
Company also used $2,480,000 to pay off a mortgage loan collateralized by two
properties leased to Kmart Corporation ("Kmart"). The Company is currently
seeking to reinvest the remaining sales proceeds in a contemplated property
acquisition. As a result of the property sales, annual cash flow (rentals less
mortgage debt service) will decrease by approximately $795,000. A substantial
portion, if not all, of the decrease in cash flow would be replaced upon
reinvestment of the sales proceeds.
Cash from operating activities of $5,001,000 and cash reserves of $321,000
were used to pay dividends of $4,486,000 and $836,000 of scheduled reduction of
mortgage indebtedness. The Company is continuing to evaluate its ability to
maintain the current dividend rate while considering reinvestment opportunities
and the need to maintain appropriate levels of cash reserves to meet current and
expected obligations. Expected cash from operations, taking into account the
reinvestment of funds from property sales, may not be sufficient to fully fund
future dividends at the current levels and scheduled mortgage principal payments
for approximately two years. Management may consider utilizing its cash reserves
to fund any shortfalls during this period or reduce the dividend rate to a level
that could be sustained solely from cash flow from operations remaining after
amortization of debt. In addition, the Company's cash balances have continued to
benefit from the Advisor's voluntary deferral of a portion of asset management
and performance fees which total $3,589,000 as of September 30, 1996. Cash flow
may also be affected by the June 1996 bankruptcy filing of a tenant, Harvest
Foods, Inc. ("Harvest"). Annual cash flow from Harvest is approximately
$610,000. Although the Harvest lease may be affirmed during the bankruptcy
process and Harvest has made all rental payments subsequent to the bankruptcy
filing, the uncertainty related to this situation is being closely monitored by
Management.
-8-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
Item 2. - MANAGEMENT'S DISCUSSION OF OPERATIONS, Continued
----------------------------------------------------------
Since December 31, 1995, the Company has paid $369,000 toward replacing the
roof on a Kmart property as required under the Kmart leases. The Company is
currently evaluating whether it will need to incur similar costs at another of
its Kmart properties in Denton, Texas within the next year. The Company is
currently monitoring the credit rating of Kmart, and, if Kmart's credit rating
improves to the extent that a low interest limited recourse mortgage could be
obtained, the Company may pursue placing new limited recourse mortgage debt on
the properties. Any such funds obtained from refinancing the Kmart properties
could be utilized for additional property acquisitions in order to further
diversify the portfolio.
A mortgage loan on the Company's property leased to New WAI, L.P.
("Warehouse Associates") which had been scheduled to mature in April 1996 has
been extended an additional five years pursuant to an extension option which was
available to the Company. If the Company had not exercised the option, a balloon
payment of $977,000 would have been due. In addition, due to successful
negotiations by the Company, the interest rate on another limited recourse
mortgage loan on the Warehouse Associates property was reduced from 10% to
8.75%. Although the loan provided for a rate reduction, the lender made a
further reduction to the rate based on terms that the Company was in the process
of negotiating from other potential lenders. As a result of the reset, annual
debt service will decrease by $69,000.
As more fully described in Note 6 to the accompanying consolidated
financial statements, the Company owns a 68.085% interest as general partner in
Hope Street Connecticut Limited Partnership ("Hope St."), a limited partnership,
which owns a property in Stamford, Connecticut which had formerly been leased to
Xerox. Corporate Property Associates 9, L.P. ("CPA(R):9"), an affiliate, owns
the remaining 31.915% interest as the sole limited partner. Although Hope St.
had reached a tentative agreement to sell the Stamford property back to its
lender for $10,000 in full satisfaction of the $6,300,000 limited recourse loan
on the property, the lender decided not to complete the transaction. Because of
the impasse with the lender, Hope St. retains ownership of the property. In
October 1996, the Boards of Directors of the Corporate General Partner of
CPA(R):9 and the Company approved a proposal that would allow the Company to
sell a portion or all of its ownership in Hope St. to CPA(R):9 for nominal
consideration. Based on its projections, Management has concluded that the
economic benefit from utilizing a realized loss on all or a portion of the
Company's interest in Hope St. to offset realized gains recognized on the sales
of the Empire and Best Buy properties is equal or greater than any potential
benefits of retaining its ownership interest in Hope St. There is no assurance
that any sale of interests will be completed. Because the loan was structured as
a limited recourse obligation, the lender has no recourse to any of the
Company's assets other than the encumbered property.
-9-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
PART II
-------
Item 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- -------------------------------------------------------------
During the quarter ended September 30, 1996 no matters were
submitted to a vote of Security Holders.
Item 6. - EXHIBITS AND REPORTS ON FORM 8-K
- ------------------------------------------
(a) Exhibits:
None.
(b) Reports on Form 8-K:
During the quarter ended September 30, 1996, the Company was
not required to file any reports on Form 8-K.
-10-
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
11/12/96 By: /s/ Claude Fernandez
---------- ------------------------------
Date Claude Fernandez
Executive Vice President and
Chief Administrative Officer
(Principal Financial Officer)
11/12/96 By: /s/ Michael D. Roberts
---------- -------------------------------
Date Michael D. Roberts
First Vice President and Controller
(Principal Accounting Officer)
-11-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 6,691,756
<SECURITIES> 0
<RECEIVABLES> 86,514
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,778,270
<PP&E> 124,448,650
<DEPRECIATION> 10,191,915
<TOTAL-ASSETS> 132,710,646
<CURRENT-LIABILITIES> 5,292,370
<BONDS> 75,166,595
0
0
<COMMON> 7,217
<OTHER-SE> 49,416,763
<TOTAL-LIABILITY-AND-EQUITY> 132,710,646
<SALES> 0
<TOTAL-REVENUES> 11,789,056
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,686,777
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,977,736
<INCOME-PRETAX> 4,024,771
<INCOME-TAX> 0
<INCOME-CONTINUING> 4,024,771
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,024,771
<EPS-PRIMARY> .56
<EPS-DILUTED> .56
</TABLE>
