<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 JUNE 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 (I.R.S. Employer Identification No.)
incorporation or organization)
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.
[X] Yes [ ] No
7,206,642 shares of common stock; $.001 Par Value
outstanding at August 8, 1996
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
INDEX
PART I Page No.
- ------ --------
Consolidated Balance Sheets, December 31, 1995 and
June 30, 1996 2
Consolidated Statements of Income for the three
months ended June 30, 1995 and 1996 3
Consolidated Statements of Cash Flows for the six
months ended June 30, 1995 and 1996 4
Notes to Consolidated Financial Statements 5-8
Item 2. - Management's Discussion of Operations 9-10
PART II
- -------
Item 4. - Submission of Matters to a Vote of Security Holders 11
Item 6. - Exhibits and Reports on Form 8-K 11
Signatures 12
* 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, June 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
$9,688,696 at June 30, 1996 $ 91,413,487 $ 89,210,793
Net investment in direct financing leases 26,526,818 25,401,428
Investment in real estate trust 10,432,181 10,710,705
Real estate held for sale 10,079,819
Cash and cash equivalents 2,249,315 6,971,366
Accrued interest and rents receivable 47,431 35,761
Other assets 689,358 902,858
------------ ------------
Total assets $141,438,409 $133,232,911
============ ============
LIABILITIES:
Limited recourse mortgage notes payable $ 84,384,583 $ 75,442,333
Accrued interest payable 850,986 1,098,157
Accounts payable and accrued expenses 240,505 119,727
Accounts payable to affiliates 3,044,843 3,507,063
Prepaid rental income 44,337
------------ ------------
Total liabilities 88,565,254 80,167,280
------------ ------------
Minority interest 2,987,811 2,766,671
------------ ------------
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) (11,780,223)
------------ ------------
49,973,436 50,387,052
Less treasury stock, 10,652 shares (88,092) (88,092)
------------ ------------
Total shareholders' equity 49,885,344 50,298,960
------------ ------------
Total liabilities and shareholders' equity $141,438,409 $133,232,911
============ ============
</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 INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, 1995 June 30, 1996 June 30, 1995 June 30, 1996
------------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income from
operating leases $3,021,229 $2,939,935 $6,189,495 $6,129,087
Interest from direct
financing leases 962,772 823,212 1,922,302 1,762,096
Other interest income 36,609 89,561 118,236 142,115
---------- ---------- ---------- ----------
4,020,610 3,852,708 8,230,033 8,033,298
---------- ---------- ---------- ----------
Expenses:
Interest 2,022,930 1,948,561 4,040,395 4,049,085
Depreciation 483,306 499,584 965,884 1,001,917
General and administrative 281,850 296,232 487,612 515,853
Property expenses 457,408 457,850 856,680 872,742
Amortization 14,051 14,408 38,159 28,959
---------- ---------- ---------- ----------
3,259,545 3,216,635 6,388,730 6,468,556
---------- ---------- ---------- ----------
Income before minority
interest in income, income
from equity investment
and net gain on sales of
real estate 761,065 636,073 1,841,303 1,564,742
Minority interest in income 153,266 87,941 309,871 176,068
---------- ---------- ---------- ----------
Income before income
from equity investment
and net gains on sale of
real estate 607,799 548,132 1,531,432 1,388,674
Income from equity investment 359,751 381,121 853,303 903,213
---------- ---------- ---------- ----------
Income before net gain
on sales of real estate 967,550 929,253 2,384,735 2,291,887
Net gain on sales of real estate 456,107 1,112,486
---------- ---------- ---------- ----------
Net income $ 967,550 $1,385,360 $2,384,735 $3,404,373
========== ========== ========== ==========
Net income per share $.13 $.19 $.33 $.47
==== ==== ==== ====
Weighted average shares
outstanding 7,217,294 7,206,642 7,217,294 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>
Six Months Ended
June 30,
---------------------------
1995 1996
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,384,735 $ 3,404,373
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 1,004,043 1,030,876
Minority interest in income
Equity income from investment in real estate
investment trust in excess of dividends received (97,531) (278,524)
Other noncash items 78,411 22,519
Net gain on sales of real estate (1,112,486)
Net change in operating assets and liabilities 14,274 316,024
------------ ------------
Net cash provided by operating activities 3,383,932 3,382,782
------------ ------------
Cash flows from investing activities:
Proceeds from sale of real estate 13,734,572
Purchases of real estate and other capitalized costs (10,078,738) (241,156)
Funds released from escrow in connection with
investing activities 5,122,501
------------ ------------
Net cash (used in) provided by investing activities (4,956,237) 13,493,416
------------ ------------
Cash flows from financing activities:
Proceeds from note payable 2,480,000
Repayment of note payable (2,480,000)
Payments of mortgage payable (8,382,243)
Proceeds from issuance of mortgage notes payable 4,812,131
Dividends paid (2,986,165) (2,990,757)
Distributions to minority interest in excess of
minority interest in income (147,151) (221,140)
Payments of mortgage principal (444,109) (560,007)
Purchase of treasury stock (88,092)
------------ ------------
Net cash provided by (used in) financing activities 1,146,614 (12,154,147)
------------ ------------
Net (decrease) increase in cash and cash equivalents (425,691) 4,722,051
Cash and cash equivalents, beginning of period 3,367,392 2,249,315
------------ ------------
Cash and cash equivalents, end of period $ 2,941,701 $ 6,971,366
============ ============
Supplemental disclosure of cash flows information:
Interest paid $ 4,202,733 $ 3,801,914
============ ============
</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 six-month periods ended June 30, 1995, the Company
incurred asset management fees of $194,790 and $389,042, respectively,
incentive fees in like amount and general and administrative expense
reimbursements of $97,250 and $172,589, respectively, payable to an
affiliate. For the three-month and six-month periods ended June 30, 1996,
the Company incurred asset management fees of $436,703 and $209,739,
respectively, incentive fees in like amount and general and administrative
expense reimbursements of $113,101 and $192,722, 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 six-month
periods ended June 30, 1995 and 1996 were $80,937 and $62,014,
respectively.
Note 3. Dividends:
---------
Dividends declared and paid to shareholders during the six months ended
June 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
==========
</TABLE>
A dividend of $.2075 per share ($1,495,378) was declared and paid in July
1996 for the quarter ended June 30, 1996.
- 5 -
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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 six-month periods ended June
30, 1995 and 1996 are as follows:
<TABLE>
<CAPTION>
1995 1996
------------ ------------
<S> <C> <C>
Per Statements of Income:
Rental income from operating leases $ 6,189,495 $6,129,087
Interest from direct financing leases 1,922,302 1,762,096
Adjustments:
Rental income attributable to
minority interests (1,122,869) (958,656)
Share of interest income from equity
investment's direct financing lease 2,232,159 2,242,951
----------- -----------
$ 9,221,087 $ 9,175,478
=========== ===========
</TABLE>
For the six-month periods ended June 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) $2,232,159 24% $2,242,951 24%
Information Resources Incorporated (b) 1,371,526 15 1,458,007 16
The Titan Corporation (b) 1,009,517 11 1,009,517 11
New WAI, L.P./Warehouse Associates 720,144 8 740,296 8
EnviroWorks, Inc. 693,878 8
Harvest Foods, Inc. 619,091 7 619,485 7
Wal-Mart Stores, Inc. 596,845 6 597,341 7
Kmart Corporation 442,553 5 469,191 5
Child Time Childcare Inc. 371,229 4 371,229 4
Neodata Corporation 277,914 3 280,572 3
Empire of America Realty Credit Corp. 452,022 5 188,322 2
Summagraphics Corporation 220,554 2 179,633 2
Best Buy Co., Inc. 157,115 2 117,419 1
US West Communications, Inc. 111,300 1 111,300 1
Safeway Stores Incorporated 196,875 2 96,337 1
Xerox Corporation (b) 442,243 5
---------- --- ---------- ---
$9,221,087 100% $9,175,478 100%
========== === ========== ===
</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)
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 June 30, 1996
----------------- -------------
<S> <C> <C>
Assets $149,910 $149,817
Liabilities 108,876 107,488
Shareholders' equity 41,034 42,329
Six Months Ended
June 30, 1995 June 30, 1996
----------------- -------------
Revenue $ 9,433 $ 9,480
Interest and other expense 5,734 5,568
-------- --------
Net income $ 3,699 $ 3,912
======== ========
</TABLE>
Note 6. Sale of Real Estate:
-------------------
On October 16, 1992, the Company purchased land, and a retail store in
Charlotte, North Carolina, for $2,435,000 subject to an existing net lease
with SportsTown, Inc. which lease was subsequently assumed by Best Buy Co.,
Inc. Subsequent to the purchase, the Company obtained a mortgage loan for
$1,600,000 collateralized by the property.
On May 16, 1996, the Company sold the property for $3,250,000. Net of the
costs of sale and paying off the remaining balance of $1,509,371
outstanding on the mortgage loan, the Company realized cash proceeds of
$1,588,000 and recognized a gain of $504,175 on the sale. As a result of
the sale, annual cash flow (rents less mortgage debt service) will decrease
by approximately $126,000.
Note 7. Harvest Foods, Inc.:
-------------------
On February 21, 1992, the Company and Carey Institutional Properties,
Incorporated ("CIP(TM)"), an affiliate, purchased as tenants-in-common,
each with 50% ownership interests, 13 supermarkets and two office buildings
and entered into a master lease with Harvest Foods, Inc. ("Harvest"), as
lessee. The total purchase price of the Harvest properties was $20,165,000.
The Company and CIP(TM) each contributed $3,950,000 of equity and obtained
$12,265,000 of limited recourse mortgage financing (of which the Company's
share was $6,132,500) from two lenders of $9,265,000 and $3,000,000,
respectively, to fund the purchase of the Harvest properties.
On June 18, 1996 Harvest filed a voluntary bankruptcy petition under
Chapter 11 of the United States Bankruptcy Code. Harvest did not pay a
portion of post-petition rent of $132,000 of which the Company's share is
$66,000. The Company and CIP(TM) are currently pursuing their legal
remedies.
- 7 -
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
ITEM 2.-MANAGEMENT'S DISCUSSION OF OPERATIONS
---------------------------------------------
Results of Operations:
---------------------
Net income for the three-month and six-month periods ended June 30,
1996 increased by $418,000 and $1,020,000, respectively, as compared with
net income for the three-month and six-month periods ended June 30, 1995.
The increase is due to the net gain on sales of real estate of $456,000 and
$1,112,000 for the three-month and six-month periods ended June 30, 1996,
respectively. Income before gain on sales reflected slight decreases for
the comparable three-month and six-month periods ended June 30, 1996 as
compared with the similar periods ended June 30, 1995.
The decrease in income before gains for both the comparable three-
month and six-month periods was due to a decrease in lease revenues which
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 Empire of
America Realty Credit Corp. ("Empire") property, two of the Safeway
Supermarkets Incorporated ("Safeway") properties in the first quarter of
1996 and the Best Buy Co., Inc. ("Best Buy") property in May 1996.
Additionally, lease revenues decreased due to the termination of the Xerox
Corporation ("Xerox") lease in August 1995. Such decreases were partially
offset by rent from the EnviroWorks, Inc. lease which became effective in
September 1995 and from a rent increase effective October 1995 on the 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 payments on its limited recourse mortgage loan
and an increasing trend of rentals received under 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 to $6,971,000; however, this is entirely due to the net
proceeds from the aforementioned sales of $7,796,000. The Company utilized
$2,480,000 to pay off a loan drawn from the Company's credit facility. The
Company is currently evaluating potential property acquisitions to reinvest
the remaining sales proceeds. 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 $3,383,000 and cash reserves of
$168,000 were used to pay dividends of $2,991,000 and $560,000 of scheduled
principal payment installments. Accordingly, the Company used $389,000 of
cash reserves to fund the difference. The Company is also evaluating 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 current cash flow from operations. 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 amount to $3,400,000 at June 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 and, although the Harvest lease may be affirmed
during the bankruptcy process, the uncertainty related to this situation
will be closely monitored by Management.
- 8 -
<PAGE>
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
ITEM 2.-MANAGEMENT DISCUSSION OF OPERATIONS-Continued
-----------------------------------------------------
Since December 31, 1995, the Company has paid $240,000 toward
replacing the roof on a property leased to Kmart Corporation ("Kmart") as
required under the Kmart leases, and expects to incur an additional
$140,000 to complete such replacement. The Company is currently evaluating
whether it will need to incur similar costs at its Kmart property in
Denton, Texas this year. In addition to paying off the mortgage loan on
properties sold, in January 1996, the Company drew an advance of $2,480,000
on its line of credit in order to satisfy a mortgage loan of like amount
which had matured on two Kmart properties. As stated above, the advance
was subsequently repaid. The Company is currently monitoring the credit
rating of Kmart, and, to the extent that the credit rating improves, 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 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 and exercised by the Company. If the Company had
not exercised the option, a balloon payment of $977,000 would have been
due.
Although the Company had reached a tentative agreement to sell its
vacant property in Stamford, Connecticut back to its lender for $10,000 in
full satisfaction of the $6,300,000 limited recourse loan on the property,
the lender has impeded the Company's efforts to complete the transaction.
The Company is now considering other alternatives such as attempting to
sell the property to other parties. 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
-------------------------------------------------------------
An annual Shareholders meeting was held on June 6, 1996, at which
time a vote was taken to elect the Company's directors through
the solicitation of proxies. 7,206,642 were eligible to vote.
The following directors were re-elected for a one-year term:
<TABLE>
<CAPTION>
Total Shares Shares Shares
Name of Director Shares Voting Voting Yes Voting No Abstaining
- -------------------------- ------------- ---------- --------- ----------
<S> <C> <C> <C> <C>
William P. Carey 3,814,761 3,734,039 78,972 1,750
Francis J. Carey 3,814,761 3,734,089 78,922 1,750
Charles C. Townsend, Jr. 3,814,761 3,734,589 78,422 1,750
Ralph G. Coburn 3,814,761 3,708,342 104,669 1,750
Donald E. Nickelson 3,814,761 3,735,089 77,922 1,750
William Ruder 3,814,761 3,719,092 93,919 1,750
Warren G. Wintrub 3,814,761 3,718,989 94,022 1,750
</TABLE>
Item 6. - EXHIBITS AND REPORTS ON FORM 8-K
- ------------------------------------------
(a) Exhibits:
None.
(b) Reports on Form 8-K:
During the quarter ended June 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
8/8/96 By: /s/ Claude Fernandez
-------------- ------------------------------
Date Claude Fernandez
Executive Vice President and
Chief Administrative Officer
(Principal Financial Officer)
8/8/96 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 JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 6,971,366
<SECURITIES> 0
<RECEIVABLES> 35,761
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 7,007,127
<PP&E> 124,300,917
<DEPRECIATION> 9,688,696
<TOTAL-ASSETS> 133,232,911
<CURRENT-LIABILITIES> 4,724,947
<BONDS> 75,442,333
0
0
<COMMON> 7,217
<OTHER-SE> 50,291,743
<TOTAL-LIABILITY-AND-EQUITY> 133,232,911
<SALES> 0
<TOTAL-REVENUES> 8,033,298
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,390,512
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,049,085
<INCOME-PRETAX> 3,404,373
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,404,373
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,404,373
<EPS-PRIMARY> .47
<EPS-DILUTED> .47
</TABLE>
