AMERICAN INSURED MORTGAGE INVESTORS L P SERIES 86, 10-Q, 1994-11-14

AMERICAN INSURED MORTGAGE INVESTORS L P SERIES 86
10-Q, 1994-11-14
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<PAGE>1

FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended September 30, 1994
--------------------

Commission file number 0-15615
-----------------

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86
- -----------------------------------------------------------------
(Exact name of registrant as specified in charter)

Delaware 13-2943272
- ------------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

11200 Rockville Pike, Rockville, Maryland 20852
- ----------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)

(301) 468-9200
- -----------------------------------------------------------------
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months and (2) has been
subject to such filing requirements for the past 90 days. Yes [X]
No [ ]

As of November 14, 1994, 9,576,290 depositary units of limited
partnership interest were outstanding.<PAGE>

<PAGE>2
AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

INDEX TO FORM 10-Q

FOR THE QUARTER ENDED September 30, 1994

Page
----
PART I. Financial Information (Unaudited)

Item 1. Financial Statements

Balance Sheets - September 30, 1994 and
December 31, 1993 . . . . . . . . . . . . . 3

Statements of Operations - for the
three and nine months ended
September 30, 1994 and 1993 . . . . . . . . 4

Statement of Changes in Partners' Equity -
for the nine months ended September 30,
1994 . . . . . . . . . . . . . . . . . . . 5

Statements of Cash Flows - for the
nine months ended September 30, 1994
and 1993 . . . . . . . . . . . . . . . . . 6

Notes to Financial Statements . . . . . . . . 7

Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . 20

PART II. Other Information

Item 6. Exhibits and Reports on Form 8-K . . . . . . 29

Signature . . . . . . . . . . . . . . . . . . . . . . 30<PAGE>

<PAGE>3

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

BALANCE SHEETS

ASSETS
<TABLE><CAPTION>
September 30, December 31,
1994 1993
-------------- -------------
(Unaudited)
<S> <C> <C>
Investment in mortgages, at
fair value
Originated insured mortgages $118,477,467 $ --
Acquired insured mortgages 38,708,882 --
------------- -------------
Total 157,186,349 --
------------- -------------
Investment in mortgages, at
amortized cost, net of
unamortized premium and
discount:
Originated insured mortgages -- 113,074,158
Acquired insured mortgages -- 3,012,158
------------- -------------
Total -- 116,086,316
------------- -------------
Mortgages held for disposition,
at lower of cost or market -- 18,955,472

Asset held for sale under
coinsurance program -- 32,103,528

Cash and cash equivalents 3,015,115 9,095,255

Investment in affiliate 480,000 1,730,087

Receivables and other assets 1,665,761 2,805,604
------------- -------------
Total assets $ 162,347,225 $ 180,776,262
============= =============

Distributions payable $ 3,020,912 $ 2,819,518

Note payable and due to
affiliate 480,000 1,737,723

Accounts payable and accrued
expenses 154,188 212,428
------------- -------------
Total liabilities 3,655,100 4,769,669
------------- -------------
Partners' equity:
Limited partners' equity 176,257,473 176,783,204
General partner's deficit (803,700) (776,611)<PAGE>

Net unrealized losses on
investment in mortgages (16,761,648) --
------------- -------------
Total partners' equity 158,692,125 176,006,593
------------- -------------
Total liabilities and
partners' equity $ 162,347,225 $ 180,776,262
============= =============
</TABLE>

The accompanying notes are an integral part
of these financial statements.
/PAGE
<PAGE>

<PAGE>4
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

STATEMENTS OF OPERATIONS

(Unaudited)

<TABLE><CAPTION>
For the three months ended For the nine months ended
September 30, September 30,
1994 1993 1994 1993
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Income:
Mortgage investment income $ 3,394,143 $ 3,979,704 $ 9,893,810 $ 11,260,036
Interest and other income 59,846 8,970 325,251 30,995
------------ ------------ ------------ ------------
3,453,989 3,988,674 10,219,061 11,291,031
------------ ------------ ------------ ------------
Expenses:
Asset management fee to related
parties 407,139 423,570 1,163,669 1,270,710
General and administrative 117,103 119,938 466,269 304,658
Interest expense to affiliate 17,400 34,754 86,909 104,263
------------ ------------ ------------ ------------
541,642 578,262 1,716,847 1,679,631
------------ ------------ ------------ ------------
Earnings before loan loss and
gain on mortgage disposition 2,912,347 3,410,412 8,502,214 9,611,400

Loan loss -- -- (115,301) --
Gain on mortgage disposition -- -- 1,129,973 --
------------ ------------ ------------ ------------
Net earnings $ 2,912,347 $ 3,410,412 $ 9,516,886 $ 9,611,400
============ ============ ============ ============
Net earnings allocated to:
Limited partners - 95.1% $ 2,769,642 $ 3,243,302 $ 9,050,559 $ 9,140,441
General partner - 4.9% 142,705 167,110 466,327 470,959
------------ ------------ ------------ ------------
$ 2,912,347 $ 3,410,412 $ 9,516,886 $ 9,611,400
============ ============ ============ ============
Net earnings per Unit of
limited partnership interest $ .29 $ .34 $ .95 $ .95
============ ============ ============ ============

</TABLE>

The accompanying notes are an integral part
of these financial statements.<PAGE>

/PAGE
<PAGE>

<PAGE>5
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

STATEMENT OF CHANGES IN PARTNERS' EQUITY

For the nine months ended September 30, 1994

(Unaudited)

<TABLE><CAPTION>
Net
Unrealized
Losses on
General Limited Investment
Partner Partners in Mortgages Total
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Balance, December 31, 1993 $ (776,611) $176,783,204 $ -- $176,006,593

Net earnings 466,327 9,050,559 -- 9,516,886

Distributions paid or accrued,
including return of capital, of
$1.00 per Unit (493,416) (9,576,290) -- (10,069,706)

Net unrealized losses on investment
in mortgages -- -- (16,761,648) (16,761,648)
------------ ------------ ------------ ------------

Balance, September 30, 1994 $ (803,700) $176,257,473 $(16,761,648) $158,692,125
============ ============ ============ ============

Limited Partnership Units outstanding -
September 30, 1994 9,576,290
============

/TABLE
<PAGE>

The accompanying notes are an integral part
of these financial statements.
/PAGE
<PAGE>

<PAGE>6
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

STATEMENTS OF CASH FLOWS

(Unaudited)

<TABLE><CAPTION>
For the nine months
ended September 30,
1994 1993
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 9,516,886 $ 9,611,400
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Loan loss 115,301 --
Gain on mortgage disposition (1,129,973) --
Payments made and treated as an addition to
Assets Held for Sale Under Coinsurance Program -- (288,944)
Mortgage investment income accrued and treated
as an addition to Assets Held for Sale Under
Coinsurance Program -- (2,325,299)
Assets and liabilities:
Decrease in receivables and other assets 1,139,843 25,413
Decrease (increase) in investment in and due from affiliate 1,250,087 (216)
(Decrease) increase in note payable and due to affiliate (1,257,723) 6,813
Decrease in accounts payable and accrued expenses (58,240) (6,917)
------------ ------------
Net cash provided by operating activities 9,576,181 7,022,250
------------ ------------
Cash flows from investing activities:
Proceeds from disposition of Asset Held for Sale
Under Coinsurance Program 33,233,501 --
Investment in Acquired Insured Mortgages (39,730,658) --
Receipt of mortgage principal from scheduled payments 709,148 290,420
------------ ------------
Net cash (used in) provided by investing activities (5,788,009) 290,420
------------ ------------
Cash flows from financing activities:
Distributions paid to partners (9,868,312) (7,652,976)
------------ ------------
Net decrease in cash and cash equivalents (6,080,140) (340,306)

Cash and cash equivalents, beginning of period 9,095,255 2,557,009
------------ ------------
Cash and cash equivalents, end of period $ 3,015,115 $ 2,216,703
============ ============
</TABLE>

The accompanying notes are an integral part<PAGE>

of these financial statements.
/PAGE
<PAGE>

<PAGE>7

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

1. ORGANIZATION

American Insured Mortgage Investors L.P. - Series 86 (the Part-
nership) was formed under the Uniform Limited Partnership Act of the
state of Delaware on October 31, 1985. From inception through
September 6, 1991, affiliates of Integrated Resources, Inc. served as
managing general partner (with a partnership interest of 4.8%),
corporate general partner (with a partnership interest of 0.1%) and
associate general partner (with a partnership interest of 0.1%). All
of the foregoing general partners are sometimes collectively referred
to as former general partners.

Effective September 6, 1991, CRIIMI, Inc. (the General Partner)
succeeded the former general partners to become the sole general
partner of the Partnership. CRIIMI, Inc. is a wholly- owned
subsidiary of CRIIMI MAE Inc. (CRIIMI MAE), formerly CRI Insured
Mortgage Association, Inc., which is managed by an adviser whose
general partner is C.R.I., Inc. (CRI).

AIM Acquisition Partners, L.P. (the Advisor) serves as the
adviser of the Partnership. The general partner of the Advisor is AIM
Acquisition Corporation (AIM Acquisition) and the limited partners
include an entity owned by CRIIMI MAE and CRI. A sub-advisory
agreement exists whereby CRI/AIM Management, Inc. (the Sub-Advisor),
an affiliate of CRI, manages the Partnership's portfolio.

Until the change in the Partnership's investment policy, as
discussed below, the Partnership was in the business of originating
mortgage loans (Originated Insured Mortgages) and acquiring mortgage
loans (Acquired Insured Mortgages, and together with Originated
Insured Mortgages, referred to herein as Insured Mortgages). As of
September 30, 1994, the Partnership had invested in either Originated
Insured Mortgages which are insured or guaranteed, in whole or in
part, by the Federal Housing Administration (FHA) or Acquired Insured
Mortgages which are fully insured (as more fully described below).

Effective September 19, 1991, the General Partner changed, at the
Advisor's recommendation, the investment policies of the Partnership
to invest only in Acquired Insured Mortgages which are fully insured
or guaranteed by the Federal National Mortgage Association, the
Government National Mortgage Association (GNMA), FHA or the Federal
Home Loan Mortgage Corporation.

The Partnership's reinvestment period expires on December 31,
1994 and the Partnership Agreement states that the Partnership will
terminate on December 31, 2020, unless previously terminated under the
provisions of the Partnership Agreement.

The United States Congress recently repealed portions of the
Federal tax code which have had an adverse impact on tax-exempt
investors in "publicly traded partnerships." This tax code change,<PAGE>

<PAGE>8

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

1. ORGANIZATION - Continued

effective January 1, 1994, cleared away the major impediment standing
in the way of listing the Partnership's Units for trading on a
national stock exchange. As a result, the General Partner listed the
Partnership's Units for trading on the American Stock Exchange on
January 18, 1994 in order to provide investment liquidity as
contemplated in the Partnership's original prospectus. The Units are
traded under the symbol "AIJ."

2. BASIS OF PRESENTATION

In the opinion of the General Partner, the accompanying unaudited
financial statements contain all adjustments of a normal recurring
nature necessary to present fairly the financial position of the
Partnership as of September 30, 1994 and December 31, 1993 and the
results of its operations for the three and nine months ended
September 30, 1994 and 1993 and its cash flows for the nine months
ended September 30, 1994 and 1993.

These unaudited financial statements have been prepared pursuant
to the rules and regulations of the Securities and Exchange
Commission. Certain information and note disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. While
the General Partner believes that the disclosures presented are
adequate to make the information not misleading, it is suggested that
these financial statements be read in conjunction with the financial
statements and the notes to the financial statements included in the
Partnership's Annual Report filed on Form 10-K for the year ended
December 31, 1993.

3. SIGNIFICANT ACCOUNTING POLICIES

Investment in Mortgages
-----------------------
In May 1993, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 115 "Accounting
for Certain Investments in Debt and Equity Securities" (SFAS
115). This statement requires that investments in debt and equity
securities be classified into one of the following investment
categories based upon the circumstances under which such
securities might be sold: Held to Maturity, Available for Sale,
and Trading. Generally, certain debt securities that an
enterprise has both the ability and intent to hold to maturity
should be accounted for using the amortized cost method and all
other securities must be recorded at their fair values. This
statement is effective for fiscal years beginning after December
15, 1993. As such, the Partnership has implemented this
statement as of January 1, 1994.<PAGE>

<PAGE>9

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

3. SIGNIFICANT ACCOUNTING POLICIES - Continued

As of September 30, 1994, the weighted average remaining
term of the Partnership's Insured Mortgages was approximately 34
years. However, the Partnership Agreement states that the
Partnership will terminate in approximately 26 years, on December
31, 2020, unless previously terminated under the provisions of
the Partnership Agreement. As the Partnership is anticipated to
terminate prior to the weighted average remaining term of its
Insured Mortgages, the Partnership does not have the ability, at
this time, to hold its Insured Mortgages to maturity.
Consequently, the General Partner believes that the Partnership's
Insured Mortgages should be included in the Available for Sale
category. Although the Partnership's Insured Mortgages are
classified as Available for Sale for financial statement
purposes, the General Partner does not intend to voluntarily sell
such Insured Mortgages, other than those which may be sold as a
result of a default.

In connection with this classification, as of September 30,
1994, all of the Partnership's Insured Mortgages are recorded at
fair value, with the net unrealized gains or losses on the
Partnership's Investment in Mortgages reported as a separate
component of partners' equity. Subsequent increases or decreases
in the fair value of Insured Mortgages shall be included as a
separate component of partners' equity. Realized gains and
losses for Insured Mortgages classified as Available for Sale
will continue to be reported in earnings. The amortized cost of
the Insured Mortgages in this category is adjusted for
amortization of discounts and premiums to maturity. Such
amortization is included in mortgage investment income. Prior to
January 1, 1994, the Partnership accounted for its Investment in
Mortgages at amortized cost.

Reclassification
----------------
Certain amounts in the financial statements as of December
31, 1993 have been reclassified to conform with the 1994
presentation.

Statements of Cash Flows
------------------------
Interest paid to an affiliate of the Partnership during the
nine months ended September 30, 1994 was $46,586. No cash
payments were made for interest expense during the nine months
ended September 30, 1993.
4. INVESTMENT IN MORTGAGES

In connection with the Partnership's implementation of SFAS 115
on January 1, 1994 (see Note 3), the Partnership's Investment in
Mortgages is recorded at fair value, as estimated below, as of
September 30, 1994. The difference between the amortized cost and the<PAGE>

<PAGE>10

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

fair value of the Insured Mortgages represents the net unrealized
losses on the Partnership's Insured Mortgages and is reported as a
separate component of partners' equity as of September 30, 1994.

The fair value of the fully insured mortgage investments is based
on quoted market prices. In order to determine the fair value of the
coinsured mortgage portfolio, the Partnership valued the coinsured
mortgages as though they were fully insured (in the same manner fully
insured mortgages were valued). From this amount, the Partnership
deducted a discount factor from the face value of the loan. This
discount factor is based on the Partnership's historical analysis of
the difference in fair value between coinsured loans and fully insured
loans.

The following table summarizes the Partnership's Investment in
Mortgages as of September 30, 1994:

<TABLE><CAPTION>
Amortized Fair
Cost Value
------------ ------------
<S> <C> <C>
Investment in Mortgages:
Originated insured mortgages $131,390,533 $118,477,467
Acquired insured mortgages 42,557,464 38,708,882
------------ ------------
$173,947,997 $157,186,349
============ ============

/TABLE
<PAGE>
<PAGE>11

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

The following is a discussion of the Partnership's Investment in
Mortgages as of September 30, 1994 and December 31, 1993:

A. Fully Insured Originated Insured Mortgages and Acquired
Insured Mortgages

The former managing general partner, on behalf of the
Partnership, had invested in eight fully insured Originated
Insured Mortgages with an aggregate amortized cost of $69,259,353
and $69,539,851 as of September 30, 1994 and December 31, 1993,
respectively, and an aggregate face value of $66,688,363 and
$66,934,689, respectively. As of September 30, 1994, these
mortgages had an aggregate fair value of $64,388,088.

As of September 30, 1994, the Partnership had invested in
thirteen fully insured Acquired Insured Mortgages with an
aggregate amortized cost of $42,557,464, face value of
$42,498,596 and fair value of $38,708,882. As of December 31,
1993, the Partnership had invested in two fully insured Acquired
Insured Mortgages with an aggregate amortized cost of $3,012,158
and face value of $3,034,084. In addition, approximately $52,000
was available for reinvestment in Acquired Insured Mortgages as
of September 30, 1994.

During the nine months ended September 30, 1994, the
Partnership purchased the following fully insured Acquired
Insured Mortgages:

Effective
Date of Purchase Interest
Complex Name Acquisition Price Rate
- ------------------------------ ----------- ----------- ---------
<S> <C> <C> <C>
Acquired Insured Mortgages
- --------------------------
Pleasantview Nursing Home January 1994 $ 3,496,416 7.847%
Oakwood Garden Apts. February 1994 10,130,271 7.601%
Cypress Cove February 1994 7,151,362 7.209%
Brighton Manor March 1994 1,034,042 7.565%
Maple Manor March 1994 1,264,331 7.343%
Regency Park Apts. March 1994 1,470,000 7.201%
Hickory Tree Apts. April 1994 3,519,405 7.478%
Oak Grove Apts. April 1994 7,111,913 7.539%
Mountain Village Apts. May 1994 1,351,350 7.596%
Sunflower Apts. May 1994 1,831,302 7.595%
Main Street Apts. September 1994 1,370,266 8.776%
-----------

Total 1994 investment in fully<PAGE>
<PAGE>12

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

insured Acquired Insured
Mortgages $39,730,658
===========
/TABLE
<PAGE>
<PAGE>13

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

In addition to base interest payments under Originated
Insured Mortgages, the Partnership is entitled to additional
interest based on a percentage of the net cash flow from the
underlying development and of the net proceeds from the
refinancing, sale or other disposition of the underlying
development (referred to as Participations). During the three
and nine months ended September 30, 1994, the Partnership
received $0 and $41,059, respectively, from the Participations.
During the three and nine months ended September 30, 1993, the
Partnership received $0 and $113,822, respectively, from the
Participations. These amounts are included in mortgage
investment income in the accompanying statements of operations.

B. Coinsured Mortgages
-------------------
As discussed in the Partnership's Annual Report on Form 10-K
for the year ended December 31, 1993, under the HUD coinsurance
program, both HUD and the coinsurance lender are responsible for
paying a portion of the insurance benefits if a mortgagor
defaults and the sale of the development collateralizing the
mortgage produces insufficient net proceeds to repay the mortgage
obligation. In such case, the coinsurance lender will be liable
to the Partnership for the first part of such loss in an amount
up to 5% of the outstanding principal balance of the mortgage as
of the date foreclosure proceedings are instituted or the deed is
acquired in lieu of foreclosure. For any loss greater than 5% of
the outstanding principal balance, the responsibility for paying
the insurance benefits will be borne on a pro-rata basis, 85% by
HUD and 15% by the coinsurance lender.

1. Coinsured by third parties
--------------------------
As of September 30, 1994 and December 31, 1993, the former
managing general partner, on behalf of the Partnership, had
invested in seven and eight coinsured mortgages,
respectively. Five are coinsured by unaffiliated third
party coinsurance lenders under the HUD coinsurance program.
As of September 30, 1994, three of the five coinsured
mortgages which are coinsured by unaffiliated third parties
are current with respect to the payment of principal and
interest. However, as of November 14, 1994, two of these
three coinsured mortgages are delinquent with respect to
payment of principal and interest. The General Partner is
attempting to collect the delinquent payments from the
coinsuring lender. As of September 30, 1994 and December
31, 1993, these three coinsured mortgages had an aggregate
amortized cost of $22,588,866 and $22,680,052, respectively,
and an aggregate face value of $21,864,342 and $21,945,884,
respectively. As of September 30, 1994, these three<PAGE>

<PAGE>14

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

coinsured mortgages had an aggregate fair value of
$19,469,739.

The following is a discussion of actual and potential
performance problems with respect to the remaining two
mortgage investments which are coinsured by an unaffiliated
third party:

The Originated Insured Mortgage on The Villas, a 405-unit
apartment complex located in Lauderhill, Florida, is
coinsured by the Patrician Mortgage Company (Patrician).
The mortgage had a carrying value of $15,794,447 and
$15,856,842 as of September 30, 1994 and December 31, 1993,
respectively, and a face value of $16,028,157 and
$16,090,551 as of September 30, 1994 and December 31, 1993,
respectively. As of September 30, 1994, this mortgage had a
fair value of $14,243,081. Since August 1, 1990, the
mortgagor has not made the full monthly payments of
principal and interest to Patrician. Patrician began
collecting rents from the project and continued to make the
monthly debt service payments to the Partnership through
February 1992. The Partnership and Patrician entered into a
modification agreement which provided for reduced payments
through July 1992, regular scheduled payments from August
1992 to December 1992, and then increased payments for a
period lasting approximately 10 years.

The mortgagor of the mortgage on The Villas was unable to
comply with the terms of the modification agreement, and as
a result, Patrician filed a foreclosure action on October
14, 1993. On November 2, 1993, the mortgagor of The Villas
filed for protection under Chapter 11 of the Federal
Bankruptcy Code. In November 1993, the bankruptcy court
issued an order establishing a cash collateral account for
the deposit of rental income and payment of operating
expenses of the property underlying the mortgage.
Consequently, in November 1993, the mortgagor began
remitting the property's net income before debt service to
Patrician, which in turn forwarded these funds to the
Partnership. As of November 14, 1994, the mortgagor has made
payments of principal and interest due on the original
mortgage through July 1994, and has made payments of
principal and interest due under the modification agreement
through August 1993. Patrician is currently litigating the
case in bankruptcy court in order to acquire and dispose of
the property.

The mortgagor of The Villas mortgage is also the mortgagor
of the Originated Insured Mortgage on St. Charles Place-
Phase II, a 156-unit apartment complex located in Miramar,<PAGE>

<PAGE>15

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

Florida, which is also coinsured by Patrician. The St.
Charles Place-Phase II mortgage had a carrying value equal
to its face value of $3,090,181 and $3,098,630 as of
September 30, 1994 and December 31, 1993, respectively. As
of September 30, 1994, this mortgage had a fair value of
$2,747,675. These amounts represent the Partnership's
approximate 45% ownership interest in the mortgage. The
remaining 55% ownership interest is held by American Insured
Mortgage Investors L.P. - Series 88 (AIM 88), an affiliate
of the Partnership.

During 1993, the mortgagor of St. Charles Place-Phase II
paid its monthly principal and interest payments to
Patrician in arrears, and ceased making monthly debt service
payments in October 1993. As the mortgagor was unable to
bring the loan current, Patrician filed a foreclosure action
on October 14, 1993. On November 2, 1993, the mortgagor
filed for protection under Chapter 11 of the Federal
Bankruptcy Code. In November 1993, the bankruptcy court
issued an order establishing a cash collateral account for
the deposit of rental income and payment of operating
expenses of the property underlying the mortgage.
Consequently, in November 1993, the mortgagor began
remitting the property's net income before debt service to
Patrician, which in turn forwarded these funds to the
Partnership. As of November 14, 1994, the mortgagor has
made payments of principal and interest due on the mortgage
through April 1994 to the Partnership. Patrician is
currently litigating the case in bankruptcy court in order
to acquire and dispose of the property.

The General Partner is overseeing Patrician's efforts to
complete these foreclosure actions, including the subsequent
acquisition and disposition of the above two properties. As
the coinsurance lender, Patrician is liable to the
Partnership for the outstanding principal balance of both
mortgages plus all accrued but unpaid interest through the
date of such payment. If the sale of the properties
collateralizing the mortgages produces insufficient net
proceeds to repay the mortgage obligations to the
Partnership, Patrician will be liable to the Partnership for
the coinsurance lender's share of the deficiency. Based on
the General Partner's assessment of the collateral
underlying the mortgages, including information related to
the financial condition of Patrician, the General Partner
believes the carrying value of these assets is realizable.
As a result of Patrician's coinsurance obligation, these
mortgages were classified as Investment in Mortgages as of
September 30, 1994 and as Mortgages Held for Disposition as
of December 31, 1993. The Partnership intends to reinvest<PAGE>

<PAGE>16

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

any net disposition proceeds from these mortgages in fully
insured Acquired Insured Mortgages, provided the net
disposition proceeds are received prior to the expiration of
the Partnership's reinvestment period on December 31, 1994.

The General Partner intends to continue to oversee the
Partnership's interest in these mortgages to ensure that
Patrician meets its coinsurance obligations. The General
Partner's assessment of the realizability of The Villas and
St. Charles Place-Phase II mortgages is based on current
information, and to the extent current conditions change or
additional information becomes available, then the General
Partner's assessment may change. However, the General
Partner does not believe that there would be a material
adverse impact on the Partnership's financial condition or
its results of operations should Patrician be unable to
comply with its full coinsurance obligation.

2. Coinsured by affiliate
----------------------
a. As of December 31, 1993, the former managing general
partner, on behalf of the Partnership, had invested in three
coinsured originated mortgages where the coinsurance lender
is Integrated Funding, Inc. (IFI). As structured by the
former managing general partner, with respect to these
mortgages, the Partnership bears the risk of loss upon
default for IFI's portion of the coinsurance loss. In
January 1994, the Partnership disposed of one of these
mortgages, One East Delaware, which was classified as an
Asset Held for Sale Under Coinsurance Program as of December
31, 1993, as discussed below.<PAGE>

<PAGE>17

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

4. INVESTMENT IN MORTGAGES - Continued

As of September 30, 1994 and December 31, 1993, the
remaining two IFI coinsured mortgages, as shown in the table
below, are classified as Investment in Mortgages and are
current with respect to the payment of principal and
interest. The General Partner believes there is adequate
collateral value underlying the mortgages. Therefore, no
loan losses, other than that described below, were
recognized on these mortgages during the nine months ended
September 30, 1994 and 1993. As of September 30, 1994,
these two mortgages had an aggregate fair value of
$17,628,884.
<TABLE><CAPTION>

Amortized Face Amortized Face Loan Losses Recognized
Cost Value Cost Value for the nine months ended
September 30, September 30, December 31, December 31, September 30, September 30,
1994 1994 1993 1993 1994 1993
------------- ------------- ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Pembrook Apartments $15,626,229 $15,010,371 $15,684,341 $ 15,060,875 $ -- $ --
Spring Lake Village (a) 5,031,457 5,031,457 5,169,914 5,054,317 115,301(a) --

(a) In March 1994, the mortgage note was amended to reduce the mortgage interest rate from 8.75% to 7.00%. In
connection with the refinancing, the Partnership recognized a loan loss of $115,301 on the accompanying
statement of operations for the nine months ended September 30, 1994, primarily representing the unamortized
balance of acquisition and closing costs paid in connection with the origination of this mortgage.

</TABLE>

b. Asset Held for Sale Under Coinsurance Program
----------------------------------------------
As of December 31, 1993, the former managing general
partner, on behalf of the Partnership, had invested in one
coinsured mortgage, One East Delaware, which was accounted
for as Asset Held for Sale Under Coinsurance Program. In
January 1994, the Partnership received net proceeds of
approximately $33.2 million from the prepayment of this
mortgage and recognized a gain of $1,129,973 in the
accompanying statement of operations for the nine months
ended September 30, 1994. As of September 30, 1994, the
Partnership has reinvested the net disposition proceeds in
fully insured Acquired Insured Mortgages.<PAGE>

<PAGE>18

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

5. DISTRIBUTIONS TO UNITHOLDERS

The distributions paid or accrued to Unitholders on a per Limited
Partnership Unit basis for the nine months ended September 30, 1994
and 1993 were as follows:

<TABLE><CAPTION>
1994 1993
-------- --------
<S> <C> <C>
Quarter ended March 31, $ .41(1) $ .23
Quarter ended June 30, .29(2) .21
Quarter ended September 30, .30(3) .29(4)
-------- --------
Total $ 1.00 $ .73
======== ========

(1) This amount includes approximately $.19 per Unit comprised of: (i) $.18
per Unit representing previously undistributed accrued interest
received from the disposition of the mortgage on One East Delaware and
(ii) $.01 per Unit representing previously undistributed accrued
interest received from two delinquent mortgages.

(2) This amount includes approximately $.04 per Unit representing
previously undistributed accrued interest received from two delinquent
mortgages.

(3) This amount includes approximately $.03 per Unit representing
previously undistributed accrued interest received from two delinquent
mortgages.

(4) In September 1993, the Partnership received $591,872 (approximately
$.06 per Unit) from the mortgage on Victoria Pointe Apartments-Phase II
(classified as AHFS), representing mortgage interest from October 1991
through June 1992, and a partial payment for July 1992. The
Partnership distributed approximately $.03 per Unit of this previously
undistributed interest and reserved approximately $.03 per Unit for the
continued funding of coinsurance expenses for the mortgages which are
classified as AHFS.
</TABLE>

The basis for paying distributions to Unitholders is cash flow
from operations, which is comprised of regular interest income and
principal from Insured Mortgages and gain, if any, from mortgage
dispositions. Although the Insured Mortgages yield a fixed monthly
mortgage payment once purchased, the cash distributions paid to the
Unitholders will vary during each quarter due to (1) the fluctuating
yields in the short-term money market where the monthly mortgage
payments received are temporarily invested prior to the payment of
quarterly distributions, (2) the reduction in the asset base and
monthly mortgage payments due to monthly mortgage payments received or<PAGE>

<PAGE>19

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

5. DISTRIBUTIONS TO UNITHOLDERS - Continued

mortgage dispositions, (3) variations in the cash flow attributable to
the delinquency or default of Insured Mortgages and the professional
fees and foreclosure and acquisition costs incurred in connection with
those Insured Mortgages and (4) variations in the Partnership's
operating expenses.

6. INVESTMENT IN AFFILIATE AND NOTE PAYABLE TO AFFILIATE

Effective December 31, 1991, American Insured Mortgage Investors-
Series 85, L.P. (AIM 85), an affiliated entity, transferred a GNMA
mortgage-backed security (the GNMA security) in the amount of
$4,696,548 to IFI in order to capitalize IFI with sufficient net worth
under HUD regulations. The Partnership and American Insured Mortgage
Investors L.P. - Series 88 (AIM 88), affiliates of the Partnership,
each issued a demand note payable to AIM 85 and recorded an investment
in IFI through an affiliate (AIM Mortgage, Inc.) at an amount
proportionate to each entity's coinsured mortgages for which IFI was
the mortgagee of record as of December 31, 1991. The Partnership
accounts for its investment in IFI under the equity method of
accounting. Interest expense on the note payable was based on an
interest rate of 8% per annum.

In 1992, IFI entered into an expense reimbursement agreement with
the Partnership, AIM 85 and AIM 88 (the AIM Funds) whereby IFI
reimburses the AIM Funds for general and administrative expenses
incurred on behalf of IFI. The expense reimbursement is allocated to
the AIM Funds based on an amount proportionate to each entity's
coinsured mortgage investments. The expense reimbursement, along with
the Partnership's equity interest in IFI's net income or loss,
substantially equals the Partnership's interest expense on the note
payable.

In April 1994, IFI received net proceeds of approximately $4.7
million from the prepayment of the GNMA security, which IFI
distributed to the AIM Funds, resulting in the recognition of income
of $16,151 by the Partnership, which is included in interest and other
income for the nine months ended September 30, 1994 on the
accompanying statements of operations. On June 30, 1994, the
Partnership repaid its note payable to AIM 85.

As a result of the prepayment, in April 1994 AIM 88 transferred
another GNMA mortgage-backed security in the amount of approximately
$2.0 million to IFI in order to capitalize IFI with sufficient net
worth under HUD regulations. The Partnership and AIM 85 each issued a
demand note payable to AIM 88 and recorded an investment in IFI
through an affiliate (AIM Mortgage, Inc.) in proportion to each
entity's coinsured mortgages for which IFI was the mortgagee of record
as of April 15, 1994. Interest expense on the note payable is based
on an interest rate of 7.25% per annum.<PAGE>

<PAGE>20

AMERICAN INSURED MORTGAGE INVESTORS L.P. - SERIES 86

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

7. TRANSACTIONS WITH RELATED PARTIES

In addition to the related party transactions described above in
Note 6, the General Partner and certain affiliated entities, during
the three and nine months ended September 30, 1994 and 1993, earned or
received compensation or payments for services from the Partnership as
follows:

<TABLE>
COMPENSATION PAID OR ACCRUED TO RELATED PARTIES
<CAPTION>
For the three months ended For the nine months ended
Capacity in Which September 30, September 30,
Name of Recipient Served/Item 1994 1993 1994 1993
- ----------------- ---------------------------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
CRIIMI, Inc. General Partner/Distribution $ 148,025 $ 143,088 $ 493,416 $ 360,190

AIM Acquisition Advisor/Asset Management Fee 407,139(1) 423,570(1) 1,163,669(2) 1,270,710(2)
Partners, L.P.(1)

CRI Affiliate of General Partner/
Expense Reimbursement 29,702 34,382 134,795 105,622

(1) Of the amounts paid to the Advisor, the Sub-advisor, CRI/AIM Management, Inc., earned a fee equal to $119,988
and $124,833, or 28% of Total Invested Assets, for the three months ended September 30, 1994 and 1993,
respectively.

(2) Of the amounts paid to the Advisor, the Sub-advisor, CRI/AIM Management, Inc., earned a fee equal to $342,953
and $374,499, or 28% of Total Invested Assets, for the nine months ended September 30, 1994 and 1993,
respectively.
/TABLE
<PAGE>

<PAGE>21

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General
- -------
As of September 30, 1994, the Partnership had invested in 28
Insured Mortgages with an aggregate amortized cost of approximately
$173.9 million, face value of approximately $170.2 million and fair
value of approximately $157.2 million. In addition, approximately
$52,000 was available for reinvestment in Acquired Insured Mortgages
as of September 30, 1994.

The United States Congress recently repealed portions of the
Federal tax code which have had an adverse impact on tax-exempt
investors in "publicly traded partnerships." This tax code change,
effective January 1, 1994, cleared away the major impediment standing
in the way of listing the Partnership's Units for trading on a
national stock exchange. As a result, the General Partner listed the
Partnership's Units for trading on the American Stock Exchange on
January 18, 1994 in order to provide investment liquidity as
contemplated in the Partnership's original prospectus. The Units are
traded under the symbol "AIJ."

Results of Operations
- ---------------------
Net earnings decreased for the nine months ended September 30,
1994 as compared to the corresponding period in 1993 primarily due to
the decrease in mortgage investment income as described below.
Partially offsetting this decrease was the gain recognized from the
disposition of the mortgage on One East Delaware in January 1994. Net
earnings decreased for the three months ended September 30, 1994 as
compared to the corresponding period in 1993 primarily due to the
decrease in mortgage investment income as described below.

Mortgage investment income decreased for the three and nine
months ended September 30, 1994, as compared to the corresponding
periods in 1993. This decrease was primarily due to a decrease in
total invested assets during the three and nine months ended September
30, 1994, as compared to the corresponding periods in 1993,
attributable to the timing of the reinvestment of net disposition
proceeds. Approximately $42.3 million of net disposition proceeds
(which included approximately $2.6 million in accrued interest and
capital gain) were received in late December 1993 and January 1994
from the disposition of the mortgages on Victoria Pointe Apartments-
Phase II and One East Delaware, of which approximately $39.7 million
had been reinvested in mortgages through September 30, 1994. Also
contributing to the decrease in mortgage investment income was a
reduction in mortgage interest rates on Acquired Insured Mortgages
purchased during 1994 as compared to the mortgage interest rates on
Insured Mortgages which were disposed of in late 1993 and early 1994.

Interest and other income increased for the three and nine months
ended September 30, 1994, as compared to the corresponding periods in
1993, primarily due to the short-term investment of net disposition
proceeds, as previously discussed.<PAGE>

<PAGE>22

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Asset management fees decreased for the three and nine months
ended September 30, 1994 as compared to the corresponding periods in
1993, primarily due to the decrease in total invested assets, as
described above.

General and administrative expenses increased for the nine months
ended September 30, 1994, as compared to the corresponding period in
1993. This increase was due primarily to an increase in payroll
reimbursements and related expenses incurred in connection with the
mortgage dispositions, mortgage acquisitions, and mortgages with
performance problems, as described below. Also contributing to the
increase in general and administrative expenses was the payment in
1994 of a one-time fee in connection with the listing of the
Partnership's units on the American Stock Exchange.

Investment in Mortgages

As of December 31, 1993, the Partnership's Insured Mortgages were
recorded at amortized cost (excluding Mortgages Held for Disposition
which were recorded at the lower of cost or market). In connection
with the Partnership's implementation of Statement of Financial
Accounting Standards No. 115 "Accounting for Certain Investments in
Debt and Equity Securities" (SFAS 115) on January 1, 1994, the
Partnership's Investment in Mortgages is recorded at fair value, as
estimated below, as of September 30, 1994. The difference between the
amortized cost and the fair value of the Insured Mortgages represents
the net unrealized losses on the Partnership's Insured Mortgages and
is reported as a separate component of partners' equity as of
September 30, 1994.

<PAGE>23

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

The following table summarizes the Partnership's Investment in
Mortgages as of September 30, 1994:

The following is a discussion of the Partnership's Investment in
Mortgages as of September 30, 1994 and December 31, 1993:

A. Fully Insured Originated Insured Mortgages and Acquired
Insured Mortgages

During the nine months ended September 30, 1994, the
Partnership purchased the following fully insured Acquired
Insured Mortgages:<PAGE>

<PAGE>24

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Total 1994 investment in fully
insured Acquired Insured
Mortgages $39,730,658
===========
</TABLE>

<PAGE>25

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

acquired in lieu of foreclosure. For any loss greater than 5% of
the outstanding principal balance, the responsibility for paying
the insurance benefits will be borne on a pro-rata basis, 85% by
HUD and 15% by the coinsurance lender.

The following is a discussion of actual and potential
performance problems with respect to the remaining two
mortgage investments which are coinsured by an unaffiliated
third party:

The mortgagor of the mortgage on The Villas was unable to
comply with the terms of the modification agreement, and as<PAGE>

<PAGE>26

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

a result, Patrician filed a foreclosure action on October
14, 1993. On November 2, 1993, the mortgagor of The Villas
filed for protection under Chapter 11 of the Federal
Bankruptcy Code. In November 1993, the bankruptcy court
issued an order establishing a cash collateral account for
the deposit of rental income and payment of operating
expenses of the property underlying the mortgage.
Consequently, in November 1993, the mortgagor began
remitting the property's net income before debt service to
Patrician, which in turn forwarded these funds to the
Partnership. As of November 14, 1994, the mortgagor has made
payments of principal and interest due on the original
mortgage through July 1994, and has made payments of
principal and interest due under the modification agreement
through August 1993. Patrician is currently litigating the
case in bankruptcy court in order to acquire and dispose of
the property.

The mortgagor of The Villas mortgage is also the mortgagor
of the Originated Insured Mortgage on St. Charles Place-
Phase II, a 156-unit apartment complex located in Miramar,
Florida, which is also coinsured by Patrician. The St.
Charles Place-Phase II mortgage had a carrying value equal
to its face value of $3,090,181 and $3,098,630 as of
September 30, 1994 and December 31, 1993, respectively. As
of September 30, 1994, this mortgage had a fair value of
$2,747,675. These amounts represent the Partnership's
approximate 45% ownership interest in the mortgage. The
remaining 55% ownership interest is held by American Insured
Mortgage Investors L.P. - Series 88 (AIM 88), an affiliate
of the Partnership.

<PAGE>27

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

As of September 30, 1994 and December 31, 1993, the
remaining two IFI coinsured mortgages, as shown in the table<PAGE>

<PAGE>28

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

below, are classified as Investment in Mortgages and are
current with respect to the payment of principal and
interest. The General Partner believes there is adequate
collateral value underlying the mortgages. Therefore, no
loan losses, other than that described below, were
recognized on these mortgages during the nine months ended
September 30, 1994 and 1993. As of September 30, 1994,
these two mortgages had an aggregate fair value of
$17,628,884.
<TABLE><CAPTION>

</TABLE>

Liquidity and Capital Resources
- -------------------------------
The Partnership's operating cash receipts, derived from payments
of principal and interest on Insured Mortgages, plus cash receipts
from interest on short-term investments, were sufficient to meet
operating requirements.

<PAGE>29

PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued

Unitholders will vary during each quarter due to (1) the fluctuating
yields in the short-term money market where the monthly mortgage
payments received are temporarily invested prior to the payment of
quarterly distributions, (2) the reduction in the asset base and
monthly mortgage payments due to monthly mortgage payments received or
mortgage dispositions, (3) variations in the cash flow attributable to
the delinquency or default of Insured Mortgages and the professional
fees and foreclosure and acquisition costs incurred in connection with
those Insured Mortgages and (4) variations in the Partnership's
operating expenses.

Net cash provided by operating activities increased for the nine
months ended September 30, 1994 as compared to the corresponding
period in 1993. This increase was primarily due to a decrease in
receivables and other assets attributable to the receipt in January
1994 of the remaining net disposition proceeds related to the December
1993 disposition of the mortgage on Victoria Pointe Apartments-Phase
II and receipt of accrued interest related to One East Delaware in
connection with the disposition of the mortgage as described below.
Also contributing to the increase in net cash provided by operating
activities was an increase in interest and other income and a decrease
in asset management fees, as previously discussed. These increases
were partially offset by a decrease in mortgage investment income, as
discussed above.

Net cash used in investing activities increased for the nine
months ended September 30, 1994 as compared to the corresponding
period in 1993 due to the 1994 investment of approximately $39.7
million in Acquired Insured Mortgages, which was partially offset by
the receipt of net disposition proceeds of approximately $33.2 million
from the disposition of the mortgage on One East Delaware.

Net cash used in financing activities increased for the nine
months ended September 30, 1994 as compared to the corresponding
period in 1993 as a result of an increase in distributions paid to
partners. This increase was primarily due to the 1994 distribution of
proceeds from the disposition of the mortgage on One East Delaware. <PAGE>

<PAGE>30

PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

No reports on Form 8-K were filed with the Securities and
Exchange Commission during the quarter ended September 30, 1994.

The exhibits filed as part of this report are listed below:

Exhibit No. Description

27 Financial Data Schedule<PAGE>

<PAGE>31

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

AMERICAN INSURED MORTGAGE
INVESTORS L.P. - SERIES 86
(Registrant)

By: CRIIMI, Inc.
General Partner

November 14, 1994 By: /s/ Cynthia O. Azzara
- ---------------------- -------------------------
Date Cynthia O. Azzara
Vice President and
Chief Financial Officer<PAGE>

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE THIRD QUARTER 10-Q AND IS QUALIFIED IN ITS ENTIRETY
BY REFENCE TO SUCH 10-Q.
</LEGEND>
<MULTIPLIER> 1,000

<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> SEP-30-1994
<CASH> 3,015
<SECURITIES> 0
<RECEIVABLES> 1,666
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 162,347
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 158,692
<TOTAL-LIABILITY-AND-EQUITY> 162,347
<SALES> 0
<TOTAL-REVENUES> 11,349
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,717
<LOSS-PROVISION> 115
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9,517
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,517
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,517
<EPS-PRIMARY> .95
<EPS-DILUTED> .95

</TABLE>