<PAGE> 1
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, 1997
------------------------------
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.
|_| Yes |_| No
7,206,642 shares of common stock; $.001 Par Value
outstanding at November 10, 1997
<PAGE> 2
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
INDEX
Page No.
--------
PART I
Item 1. - Financial Information*
Consolidated Balance Sheets, December 31, 1996 and
September 30, 1997 2
Consolidated Statements of Income for the three and nine
months ended September 30, 1996 and 1997 3
Consolidated Statements of Cash Flows for the nine
months ended September 30, 1996 and 1997 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> 3
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
PART I
Item 1. - FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, September 30,
1996 1997
------------- -------------
(Note) (Unaudited)
<S> <C> <C>
ASSETS:
Land and buildings ,
net of accumulated depreciation of
$9,484,029 at December 31, 1996 and
$10,988,118 at September 30, 1997 $ 85,939,167 $ 90,110,528
Net investment in direct financing leases 23,563,052 16,758,763
Equity investment 11,016,708 11,540,577
Cash and cash equivalents 6,452,554 3,989,544
Other assets 783,245 602,173
------------- -------------
Total assets $ 127,754,726 $ 123,001,585
============= =============
LIABILITIES:
Limited recourse mortgage notes payable $ 68,586,254 $ 61,840,174
Note payable 1,600,000
Accrued interest payable 553,985 640,057
Accounts payable and accrued expenses 231,555 227,887
Accounts payable to affiliates 3,974,450 4,524,811
Deferred gain 3,423,043
Prepaid rental income 42,682 19,498
------------- -------------
Total liabilities 76,811,969 68,852,427
------------- -------------
Minority interest 4,048,527 3,898,764
------------- -------------
SHAREHOLDERS' EQUITY:
Common stock, $.001 par value;
40,000,000 shares 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 (15,184,953) (11,828,789)
------------- -------------
46,982,322 50,338,486
Less common stock in treasury at cost,
10,652 shares at December 31, 1996 and (88,092) (88,092)
------------- -------------
September 30, 1997
Total shareholders' equity 46,894,230 50,250,394
------------- -------------
Total liabilities and shareholders' equity $ 127,754,726 $ 123,001,585
============= =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
Note: The balance sheet at December 31, 1996 has been derived from the audited
consolidated financial statements at that date.
-2-
<PAGE> 4
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, 1996 September 30, 1997 September 30, 1996 September 30, 1997
------------------ ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Revenues:
Rental income from
operating leases $ 2,849,302 $ 2,933,662 $ 8,978,389 $ 9,026,191
Interest from direct
financing leases 809,194 549,572 2,570,949 1,858,063
Other interest income 97,262 33,765 239,718 202,138
Other income 112,313
----------- ----------- ----------- -----------
3,755,758 3,516,999 11,789,056 11,198,705
----------- ----------- ----------- -----------
Expenses:
Interest 1,928,651 1,595,379 5,977,736 4,896,585
Depreciation 503,219 514,464 1,505,136 1,513,885
General and administrative 248,237 309,742 764,090 924,732
Property expenses 544,809 443,791 1,417,551 1,393,543
Amortization 11,614 15,505 40,573 58,408
----------- ----------- ----------- -----------
3,236,530 2,878,881 9,705,086 8,787,153
----------- ----------- ----------- -----------
Income before minority
interest, income from
equity investments, net
(loss) gain on sales and
extraordinary items 519,228 638,118 2,083,970 2,411,552
Minority interest in income (260,439) (153,451) (436,507) (450,731)
----------- ----------- ------------ -----------
Income before income from
equity investments, net
(loss) gain on sales and
extraordinary items 258,789 484,667 1,647,463 1,960,821
Income from equity investment 422,273 446,903 1,325,486 1,430,073
----------- ----------- ----------- -----------
Income before net (loss)
gain on sales and
extraordinary items 681,062 931,570 2,972,949 3,390,894
Net (loss) gain on sales (60,664) 141,131 1,051,822 141,131
----------- ----------- ----------- -----------
Income before
extraordinary items 620,398 1,072,701 4,024,771 3,532,025
Extraordinary gains 3,423,043 3,850,490
----------- ----------- ----------- -----------
Net income $ 620,398 $ 4,495,744 $ 4,024,771 $ 7,382,515
=========== =========== =========== ===========
Net income per share (7,206,642
shares outstanding):
Income before extraordinary
item $.09 $.15 $.56 $ .49
Extraordinary item .47 .53
---- ---- ---- -----
$.09 $.62 $.56 $1.02
==== ==== ==== =====
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-3-
<PAGE> 5
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------------------
1996 1997
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 4,024,771 $ 7,382,515
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 1,545,709 1,572,293
Income from equity investment
in excess of dividends received (468,381) (523,869)
Other noncash items 71,736
Extraordinary gains (3,850,490)
Net gain on sales of real estate (1,051,822) (141,131)
Net change in operating assets and liabilities 951,047 620,160
------------ -----------
Net cash provided by operating activities 5,001,324 5,131,214
------------ -----------
Cash flows from investing activities:
Proceeds from repayment of note receivable 110,750
Purchases of real estate and other capitalized costs (368,558)
Proceeds from sale of real estate 13,673,908 1,194,273
------------ -----------
Net cash provided by investing activities 13,305,350 1,305,023
------------ -----------
Cash flows from financing activities:
Dividends paid (4,486,135) (4,026,351)
Proceeds from note payable 2,480,000 1,600,000
Repayment of note payable (2,480,000)
Prepayment of mortgages payable (8,382,243) (5,450,000)
Payments of mortgage principal (835,745) (868,633)
Deferred refinancing costs (4,500)
Distributions to minority interest in excess of
minority interest in income (160,110) (149,763)
------------ -----------
Net cash used in financing activities (13,864,233) (8,899,247)
------------ -----------
Net increase (decrease) in cash and cash equivalents 4,442,441 (2,463,010)
Cash and cash equivalents, beginning of period 2,249,315 6,452,554
------------ -----------
Cash and cash equivalents, end of period $ 6,691,756 $ 3,989,544
============ ===========
Supplemental disclosure of cash flows information:
Interest paid $ 5,555,822 $ 4,810,513
============ ===========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
-4-
<PAGE> 6
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, 1996.
Note 2. Transactions with Related Parties:
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. For the
three-month and nine-month periods ended September 30, 1997, the Company
incurred asset management fees of $166,950 and $560,849, respectively, incentive
fees in like amount and general and administrative expense reimbursements of
$153,089 and $452,402, 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, 1996 and 1997 were $103,196 and $86,318, respectively.
Note 3. Dividends:
Dividends declared and paid to shareholders during the nine months ended
September 30, 1997 are summarized as follows:
<TABLE>
<CAPTION>
Quarter Ended Paid Per Share
------------- ---- ---------
<S> <C> <C>
December 31, 1996 $1,495,378 $0.20750
========== ========
March 31, 1997 $1,264,765 $0.17550
========== ========
June 30, 1997 $1,266,208 $0.17570
========== ========
</TABLE>
A dividend of $0.1759 per share was declared and paid in October 1997 for the
quarter ended September 30, 1997.
-5-
<PAGE> 7
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, 1996
and 1997 are as follows:
<TABLE>
<CAPTION>
1996 1997
---- ----
<S> <C> <C>
Per Statements of Income:
Rental income from operating leases $ 8,978,389 $ 9,026,191
Interest from direct financing leases 2,570,949 1,858,063
Adjustments:
Rental income attributable to
minority interests (1,437,986) (1,442,244)
Share of interest income from equity
investment's direct financing lease 3,291,380 3,341,474
----------- -----------
$13,402,732 $12,783,484
=========== ===========
</TABLE>
For the nine-month periods ended September 30, 1996 and 1997, the Company earned
its proportionate net lease revenues from its investments from the following
lease obligors:
<TABLE>
<CAPTION>
1996 % 1997 %
---- ---- ---- ----
<S> <C> <C> <C> <C>
Marriott International, Inc. (a) $ 3,291,380 25% $ 3,341,474 26%
Information Resources Incorporated (b) 2,187,010 17 2,187,010 17
The Titan Corporation (b) 1,514,275 11 1,532,993 12
New WAI, L.P./Warehouse Associates 1,120,577 8 1,089,141 9
EnviroWorks, Inc. 1,040,818 8 1,040,818 8
Wal-Mart Stores, Inc. 787,062 6 798,876 6
Kmart Corporation 671,981 5 709,145 6
Childtime Childcare Inc. 556,844 4 598,841 5
Neodata Corporation 427,504 3 440,796 3
CalComp Technology, Inc. 271,404 2 331,775 3
Harvest Foods, Inc. 929,411 7 291,762 2
US West Communications, Inc. 166,950 1 166,950 1
Safeway Stores Incorporated 131,775 1 106,313 1
Kroger Co. 112,854 1
Affiliated Foods Southwest, Inc. 34,736
Empire of America Realty Credit Corp. 188,322 1
Best Buy Co., Inc. 117,419 1
----------- --- ----------- ---
$13,402,732 100% $12,783,484 100%
=========== === =========== ===
</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> 8
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 Courtyard by Marriott hotels to a
wholly-owned subsidiary of Marriott International, Inc. Summarized financial
information of Marcourt is as follows:
<TABLE>
<CAPTION>
(in thousands)
December 31, 1996 September 30, 1997
----------------- ------------------
<S> <C> <C>
Assets $149,694 $149,572
Liabilities 106,002 103,620
Shareholders' equity 43,692 45,952
Nine Months Ended
September 30, 1996 September 30, 1997
------------------ ------------------
Revenue $ 14,088 $ 14,223
Interest and other expense (8,344) (8,134)
-------- --------
Net income $ 5,744 $ 6,089
======== ========
</TABLE>
Note 6. Properties Formerly Leased to Harvest Foods, Inc.:
In February 1992, the Company and Carey Institutional Properties Incorporated
("CIP(TM)"), an affiliate, purchased, through wholly-owned subsidiaries, 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.
In June 1996, Harvest filed a voluntary bankruptcy petition and, in March 1997,
the Bankruptcy Court approved Harvest's motion to disaffirm the master lease.
Harvest subsequently vacated the properties. Under its ruling, the Bankruptcy
Court allowed the Company and CIP(TM) to establish its unsecured claim for lease
rejection damages at $10,000,000 and ordered Harvest to pay $150,000 in full
satisfaction and settlement of any post-petition obligation for real estate
taxes. The bankruptcy claim is pending and the Company and CIP(TM) may not
realize the full amount of the bankruptcy claim.
In March 1997, the Company and CIP(TM) entered into net leases with The Kroger
Co. and Affiliated Foods Southwest, Inc. for four supermarkets in Conway and
North Little Rock, Arkansas. In September 1997, the Company and CIP(TM) sold
three properties at an aggregate price of $2,400,000 (of which the Company's
share was $1,200,000). In connection with the sale, the Company recognized a
gain of $141,131. The Company and CIP(TM) are currently evaluating various
offers for the lease or purchase of the vacated properties and are continuing
their remarketing efforts.
Note 7. 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 for the purpose of
purchasing an office building in Stamford, Connecticut. The Company contributed
$3,200,000 for a 68.085% general partnership interest and CPA(R):9 contributed
$1,500,000 for a 31.915% limited partnership interest.
-7-
<PAGE> 9
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
The limited partnership, Hope St. Connecticut Limited Partnership ("Hope
Street") used the capital contributions and assumed a limited recourse mortgage
loan of $6,300,000 to purchase the property and assumed an existing net lease,
as lessor, with Xerox Corporation ("Xerox"), as lessee. Xerox did not renew the
lease and vacated the property in August 1995. The mortgage loan matured in
September 1995, at which time a $6,300,000 balloon payment was scheduled to be
paid.
Hope Street was unsuccessful in its efforts to remarket the property and find a
new lessee even at a substantially lower annual rent. Under the circumstances,
the Company's attempt to negotiate a restructuring of the loan with the lender
was unsuccessful. In December 1996, the Board of Directors of the Company and
the Corporate General Partners of CPA(R):9 approved a transaction allowing the
Company to transfer its interest in Hope Street to CPA(R):9 for a minimal
consideration. For financial reporting purposes, a gain of $3,423,043,
recognized in connection with the transfer of Hope Street's assets and
liabilities to CPA(R):9 was deferred. On September 23, 1997, the lender
completed a foreclosure action against Hope Street at which time ownership of
the property was transferred to the lender in satisfaction of the mortgage debt,
and, as a result, the conditions for deferral of the gain were eliminated.
Accordingly, the Company has recognized an extraordinary gain of $3,423,043.
-8-
<PAGE> 10
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
Item 2. - MANAGEMENT'S DISCUSSION OF OPERATIONS
Results of Operations:
Income before extraordinary gains and gains and losses from the sale of
real estate increased by $250,000 and $418,000 for the three-month and
nine-month periods ended September 30, 1997 as compared with the similar periods
ended September 30, 1996. The increases in earnings before gains and losses were
due to decreases in interest and property expenses and, for the nine-month
period, an increase in equity income. This was partially offset by a decrease in
lease revenues and an increase in general and administrative expenses.
The decrease in interest expense was due to the reduction of a mortgage
debt in connection with property dispositions in 1996, the prepayment at a
discount of the first priority mortgage loan on the properties formerly leased
to Harvest Foods, Inc. in the second quarter, the refinancing of the limited
recourse mortgage loan at a lower rate of interest on the Childtime Childcare,
Inc. properties in December 1996 as well as the continuing amortization of the
Company's remaining mortgage debt. Property expense decreased due to lower asset
management fees as the result of property dispositions in both 1996 and 1997.
Lease revenues decreased due to the sale of the Best Buy Co., Inc., Empire
of America Realty Credit Corp. and two Safeway Stores Incorporated properties in
1996 and the termination of the Harvest Foods, Inc. master lease for 15
properties in March 1997 pursuant to Harvest's voluntary bankruptcy petition.
The increase in general and administrative expenses was due, in part, to costs
related to the workout on the former Harvest properties. The increase in equity
income from the Company's investment in a real estate investment trust which
leases 13 Courtyard by Marriott hotels was due to higher percentage rents in
1997 and decreasing interest expense on the mortgage loan on the Courtyard by
Marriott properties which is fully amortizing over 16 3/4 years .
Since the termination of the Harvest master lease, the Company has entered
into new net leases at four of the properties and, during the third quarter,
sold three properties at a gain of $141,000. The Company is continuing its
remarketing efforts on the remaining eight properties. The Company's future
operating cash flow will be conditioned, in part, on the Company's success in
remarketing these remaining properties.
The Company realized extraordinary gains in connection with the
satisfaction of the first priority mortgage loan on the former Harvest
properties in the second quarter and, as more fully described in Note 7 to the
Consolidated Financial Statements, the disposition of a property in which the
Company had formerly owned an interest.
Financial Condition:
There has been no material change in the Company's financial condition
since December 31, 1996. Cash flow from operations of $5,131,000 was sufficient
to pay dividends of $4,026,000, scheduled mortgage principal payment
installments of $869,000 and distributions to an affiliate which owns minority
interests in two limited partnerships controlled by the Company. As a result of
the termination of the Harvest lease in March 1997, the Board of Directors
reduced the dividend rate in April 1997 in light of uncertainties as to the
adequacy of future operating cash flow. The Board of Directors subsequently
increased the dividend rates for the July and October 1997 dividends, although
such rates remain below the level of dividends paid prior to April 1997.
-9-
<PAGE> 11
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
Item 2. - MANAGEMENT'S DISCUSSION OF OPERATIONS, Continued
Financial Condition (continued):
Since December 31, 1996, cash balances have decreased by $2,463,000. This
decrease occurred because the Company used $3,850,000 in the second quarter to
satisfy the first mortgage loan on the former Harvest properties, which was paid
off at a substantial discount. The Company is attempting to negotiate with the
holder of a $1,500,000 subordinated mortgage loan on the former Harvest
properties in an attempt to reach a settlement. The holder of the debt is an
affiliate of Harvest.
A mortgage loan of $1,600,000 on one of the Company's properties leased to
Kmart Corporation matured in January 1997. The loan was paid by drawing a
$1,600,000 advance on the Company's revolving credit facility. The credit
facility initially matured in August 1997 and was extended through November 17,
1997. The Company has notified the lender that it will pay off the $1,600,000
advance on or before the maturity date and is not extending the credit
agreement. The Company has continued to monitor Kmart's credit rating. As
Kmart's credit prospects continue to improve, the Company is evaluating the
possibility of obtaining new limited recourse mortgage financing on its three
Kmart properties, in which event such funds could be used for new investments.
The Company's cash position has been favorably affected by the Advisor's
continuing its voluntary, temporary deferral of a portion of asset management
and performance fees. As of September 30, 1997, such deferral was $4,360,000.
-10-
<PAGE> 12
CORPORATE PROPERTY ASSOCIATES 10 INCORPORATED
PART II
Item 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
During the quarter ended September 30, 1997 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, 1997, the Company was
not required to file any reports on Form 8-K.
-11-
<PAGE> 13
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
11/10/97 By: /s/ Steven M. Berzin
-------- -----------------------
Date Steven M. Berzin
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
11/10/97 By: /s/ Claude Fernandez
-------- -----------------------
Date Claude Fernandez
Executive Vice President and
Chief Administrative Officer
(Principal Accounting Officer)
-12-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Form 10-Q
for the quarter ended September 30, 1997 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,989,544
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,989,544
<PP&E> 117,857,409
<DEPRECIATION> 10,988,118
<TOTAL-ASSETS> 123,001,585
<CURRENT-LIABILITIES> 5,412,253
<BONDS> 63,440,174
0
0
<COMMON> 7,217
<OTHER-SE> 50,243,177
<TOTAL-LIABILITY-AND-EQUITY> 123,001,585
<SALES> 0
<TOTAL-REVENUES> 11,198,705
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,832,160
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,896,585
<INCOME-PRETAX> 3,532,025
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,532,025
<DISCONTINUED> 0
<EXTRAORDINARY> 3,850,490
<CHANGES> 0
<NET-INCOME> 7,382,515
<EPS-PRIMARY> 1.02
<EPS-DILUTED> 1.02
</TABLE>
