<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTIONS 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended: Commission File Number:
SEPTEMBER 30, 1997 33-2320
EXCEL PROPERTIES, LTD.
(Exact name of registrant as specified in its charter)
CALIFORNIA 87-0426335
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
16955 VIA DEL CAMPO, SUITE 110 SAN DIEGO, CALIFORNIA 92127
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (619) 485-9400
Securities registered pursuant to Section 12(b) of the Act: NONE
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.
(1) Yes X No
----- -----
(2) Yes X No
----- -----
<PAGE> 2
EXCEL PROPERTIES, LTD.
INDEX TO FINANCIAL STATEMENTS
----------
<TABLE>
<CAPTION>
PAGE
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<S> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
Balance Sheets
September 30, 1997 (Unaudited)
December 31, 1996 ...................................... 3
Statements of Income
Three Months Ended September 30, 1997 (Unaudited)
Three Months Ended September 30, 1996 (Unaudited)
Nine Months Ended September 30, 1997 (Unaudited)
Nine Months Ended September 30, 1996 (Unaudited)........ 4
Statements of Changes in Partners' Equity
Nine Months Ended September 30, 1997 (Unaudited)
Nine Months Ended September 30, 1996 (Unaudited)........ 5
Statements of Cash Flows
Nine Months Ended September 30, 1997 (Unaudited)
Nine Months Ended September 30, 1996 (Unaudited)........ 6
Notes to Financial Statements.............................. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.................... 10
PART II. OTHER INFORMATION.......................................... 12
</TABLE>
2
<PAGE> 3
EXCEL PROPERTIES, LTD.
BALANCE SHEETS
----------
<TABLE>
<CAPTION>
SEPTEMBER 30,
1997 DECEMBER 31,
(UNAUDITED) 1996
------------- ------------
ASSETS
<S> <C> <C>
Real estate:
Land $ 2,857,264 $ 2,917,587
Buildings 4,417,199 4,557,955
Less: accumulated depreciation (1,332,692) (1,261,704)
------------- ------------
Net real estate 5,941,771 6,213,838
Cash 653,418 1,393,367
Escrow deposits -- 963,968
Accounts receivable, less allowance for bad debts of
$182,106 and $181,019 in 1997 and 1996, respectively 20,195 79,217
Notes receivable 1,003,458 1,009,023
Interest receivable and other assets 7,707 5,890
------------- ------------
Total assets $ 7,626,549 $ 9,665,303
============= ============
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts payable:
Affiliates $ 7,387 $ 864
Other 1,371 935
Tenant security deposits 5,000 5,000
Deferred rental income 10,408 39,099
------------- ------------
Total liabilities 24,166 45,898
------------- ------------
Partners' Equity:
General partner's equity 3,402 23,573
Limited partners' equity, 235,308 units
authorized, 135,299 units issued
and outstanding in 1997 and 1996,
respectively 7,598,981 9,595,832
------------- ------------
Total partners' equity 7,602,383 9,619,405
------------- ------------
Total liabilities and partners' equity $ 7,626,549 $ 9,665,303
============= ============
</TABLE>
The accompanying notes are an integral part
of the financial statements.
3
<PAGE> 4
EXCEL PROPERTIES, LTD.
STATEMENTS OF INCOME - UNAUDITED
----------
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------ -----------------------
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenue:
Base rent $ 213,659 $ 250,142 $ 643,686 $ 764,457
Percentage rents -- 44,344 -- 44,344
Interest income 22,330 46,900 123,135 147,884
--------- --------- --------- ---------
Total revenue 235,989 341,386 766,821 956,685
--------- --------- --------- ---------
Expenses:
Accounting and legal 13,650 10,372 56,105 32,148
Administrative 2,700 2,700 8,100 8,100
Bad debts (52,042) 44,612 39,777 129,425
Management fees 2,464 2,870 5,842 7,319
Office expenses 4,536 1,455 12,082 9,865
Property taxes -- 6,100 -- --
Depreciation 35,503 43,677 107,852 135,099
--------- --------- --------- ---------
Total expenses 6,811 111,786 229,758 321,956
--------- --------- --------- ---------
Income before real estate sales 229,178 229,600 537,063 634,729
Gain - sale of real estate 17,593 -- 17,593 206,761
--------- --------- --------- ---------
Net income $ 246,771 $ 229,600 $ 554,656 $ 841,490
========= ========= ========= =========
Net income allocated to:
General partner $ 2,468 $ 2,733 $ 5,547 $ 27,707
Limited partners 244,303 226,867 549,109 813,783
--------- --------- --------- ---------
Total $ 246,771 $ 229,600 $ 554,656 $ 841,490
========= ========= ========= =========
Net income per weighted average
limited partnership unit $ 1.81 $ 1.68 $ 4.06 $ 6.01
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
4
<PAGE> 5
EXCEL PROPERTIES, LTD.
STATEMENTS OF CHANGES IN PARTNERS' EQUITY - UNAUDITED
----------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
------------------------------
1997 1996
------------ ------------
<S> <C> <C>
Balance at January 1 $ 9,619,405 $ 11,367,654
Net income 554,656 841,490
Partner distributions (2,571,678) (3,192,056)
------------ ------------
Balance at September 30 $ 7,602,383 $ 9,017,088
============ ============
</TABLE>
The accompanying notes are an integral part
of the financial statements.
5
<PAGE> 6
EXCEL PROPERTIES, LTD.
STATEMENTS OF CASH FLOWS - UNAUDITED
----------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
----------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 554,656 $ 841,490
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation 107,852 135,099
Allowance for doubtful accounts 39,777 129,425
Gain on sale of real estate (17,593) (206,761)
Changes in operating assets and liabilities:
(Increase) decrease in assets:
Accounts receivable 19,245 35,117
Interest receivable and other assets (1,816) (64)
Increase (decrease) in liabilities:,
Accounts payable 6,959 1,997
Property taxes payable -- 8,656
Deferred rental income (28,691) 2,812
----------- -----------
Net cash provided by operating activities 680,389 947,771
----------- -----------
Cash flows from investing activities:
Proceeds from escrow deposits 963,968 --
Proceeds from real estate sales 181,807 901,187
Collection of notes receivable 5,565 4,622
----------- -----------
Net cash provided by investing activities 1,151,340 905,809
----------- -----------
Cash flows from financing activities:
Cash distributions (2,571,678) (3,192,056)
----------- -----------
Net cash used by financing activities (2,571,678) (3,192,056)
----------- -----------
Net decrease in cash (739,949) (1,338,476)
Cash at January 1 1,393,367 1,817,201
----------- -----------
Cash at September 30 $ 653,418 $ 478,725
=========== ===========
</TABLE>
The accompanying notes are an integral part
of the financial statements.
6
<PAGE> 7
EXCEL PROPERTIES, LTD.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
----------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements reflect all adjustments of a recurring nature
which are, in the opinion of management, necessary for a fair presentation
of the financial statements. No adjustments were necessary which were not
of a recurring nature. These financial statements should be read in
conjunction with the financial statements and accompanying footnotes
included in the Partnership's December 31, 1996 Form 10-K.
ORGANIZATION
Excel Properties, Ltd. was formed in the State of California on September
19, 1985, for the purpose of, but not limited to, acquiring and operating
commercial real estate.
REAL ESTATE
Land and buildings are recorded at cost. Buildings are depreciated using
the straight-line method over the tax life of 31.5 years. The tax life
does not differ materially from the economic useful life. Expenditures for
maintenance and repairs are charged to expense as incurred. Significant
renovations are capitalized. The cost and related accumulated depreciation
of real estate are removed from the accounts upon disposition. Gains and
losses arising from the dispositions are reported as income or expense.
CASH DEPOSITS
At September 30, 1997, the carrying amount of the Partnership's cash
deposits total $653,418. The bank balances are $675,494 of which $200,000
is covered by federal depository insurance.
STATEMENT OF CASH FLOWS - SUPPLEMENTAL DISCLOSURE
There was no interest or taxes paid for the nine months ended September
30, 1997 or 1996. Also, the Partnership had no noncash investing or
financing transactions for the nine months ended September 30, 1997 or
1996.
INCOME TAXES
The Partnership is not liable for payment of any income taxes because as a
partnership, it is not subject to income taxes. The tax effects of its
activities accrue directly to the partners.
ACCOUNTS RECEIVABLE
All net accounts receivable are deemed to be collectible within the next
12 months.
Continued 7
<PAGE> 8
EXCEL PROPERTIES, LTD.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
----------
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED:
FINANCIAL STATEMENT ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reported period. Actual results could differ from those
estimates.
2. FEES PAID TO GENERAL PARTNER
The Partnership has paid the General Partner or its affiliates the
following fees for the nine months ended September 30, 1997 and 1996:
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
Management fees $ 5,842 $ 7,319
Administrative fees 8,100 8,100
Accounting 4,860 14,460
</TABLE>
3. NOTES RECEIVABLE
The Partnership had the following notes receivable at September 30, 1997
and December 31, 1996:
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Note from sale of building, receipts of $1,390 per month
at 9% interest. Secured by building sold. Currently due. $ 136,336 $ 139,524
Note from sale of building, interest only receipts of
$5,366 per month at 8.5% interest. Secured by building
sold. Due November 2003. 757,500 757,500
Note from sale of building, receipts of $1,004 per month
at 8% interest. Secured by building sold. Due December
2001. 109,622 111,999
---------- ----------
Total notes receivable $1,003,458 $1,009,023
========== ==========
</TABLE>
Continued 8
<PAGE> 9
EXCEL PROPERTIES, LTD.
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
----------
4. MINIMUM FUTURE RENTALS
The Partnership leases single-tenant buildings to tenants under
noncancellable operating leases requiring the greater of fixed or
percentage rents. The leases are triple-net, requiring the tenant to pay
all expenses of operating the property such as insurance, property taxes,
repairs and utilities.
Minimum future rental revenue for the next five years for the commercial
real estate currently owned and subject to noncancellable operating leases
is as follows:
<TABLE>
<CAPTION>
YEAR ENDING DECEMBER 31,
------------------------
<S> <C>
1997, remaining three months $ 185,640
1998 732,002
1999 707,032
2000 646,040
2001 544,895
Thereafter 1,809,010
</TABLE>
5. SALE OF PROPERTY
In 1997, the Partnership sold a property leased by Kindercare in
Indianapolis, Indiana. The net proceeds for the building were $181,807 and
a gain of $17,593 was recognized on the sale. In 1996 the Partnership sold
two buildings in Coon Rapids, Minnesota that were on lease to Kentucky
Fried Chicken and Wendy's. The proceeds on the sale of the two buildings
which were sold together were $901,187. The Partnership recognized a gain
of $206,761 on the sale.
9
<PAGE> 10
EXCEL PROPERTIES, LTD.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
NATURE OF BUSINESS
Excel Properties, Ltd., a California limited partnership (the "Partnership"),
was organized to purchase commercial real estate properties for cash and to hold
these assets for long-term investment. The Partnership currently owns fifteen
properties. The general partners of the Partnership are Excel Realty Trust,
Inc., a Maryland corporation, and Gary B. Sabin, an individual. The Partnership
was formed on September 19, 1985, and will continue in existence until December
31, 2015, unless dissolved earlier under certain circumstances.
Properties that have been acquired by the Partnership are subject to long-term
triple-net leases. Such leases require the lessee to pay the prescribed minimum
rental plus all costs and expenses associated with the operations and
maintenance of the property. These expenses include real property taxes,
property insurance, repairs and maintenance and similar expenses, the net effect
being that, under normal circumstances, no expenses will offset the rental
payment. Most of the leases also provide some form of inflation hedge which
calls for the minimum rent to be increased, based upon adjustments in the
consumer price index, fixed rent escalation, or by receipt of a percentage of
the gross sales of the tenant.
Properties have been acquired free and clear of liens and encumbrances. The
Partnership may seek to finance one or more of the properties and distribute the
financing proceeds to the partners, but only if the financing proceeds equal or
exceed 100% of the Partnership's capital invested in the property or properties
(including a prorata amount of the Partnership's public offering unit selling
commissions and organization expenses). To date, no properties owned by the
Partnership have been the subject of any mortgage financing, therefore, at the
present time, all properties remain free and clear from any mortgage loan, lien
or encumbrance.
The principal investment objectives of the Partnership are to provide to its
limited partners: (1) preservation, protection and eventual return of the
investment, (2) distributions of cash from operations including property sales,
some of which may be a return of capital for tax purposes rather than taxable
income, (3) distributions of cash from financing the properties, and (4)
realization of long-term appreciation in value of the properties.
The general partners have selected properties they believe meet certain minimum
investment standards and that are most likely to accomplish the investment
objectives of the Partnership. Properties were acquired through arms-length
negotiations with third parties.
LIQUIDITY AND CAPITAL RESOURCES
As the Partnership has $653,418 at September 30, 1997, with no debt on any of
the properties it owns, management believes that the Partnership liquidity
remains in a good position. In October 1997, the Partnership distributed
accumulated cash to the partners in the amount of $430,000. The Partnership has
no debt and approximately $59,000 a month from rental revenue, net of bad debts
as of September 30, 1997. Management anticipates that rental revenue should be
enough to cover any Partnership expenses. Also, management does not expect the
Partnership to incur any significant operational expenses as the Partnership
properties are subject to triple-net leases.
Management anticipates that the Partnership's primary source of cash in 1997
will continue to come from rental of the real estate properties currently owned.
The Partnership may also, from time to time, sell certain properties which would
provide cash for distribution. Management anticipates that rental revenue will
be sufficient to cover the operating expenses of the Partnership and allow for
cash distributions to be made to the limited partners. The Partnership has the
policy of paying quarterly distributions to the limited partners of the actual
cash earned by the Partnership in the preceding quarter. Therefore, if expenses
were to increase or revenue were to decrease, the Partnership would decrease the
quarterly distributions to the limited partners. Management expects that the
liquidity of the Partnership will change if properties are sold and/or excess
cash is distributed to the unit holders (partners).
Continued 10
<PAGE> 11
The cash of the Partnership decreased by $739,949 at September 30, 1997 when
compared to December 31, 1996. This decrease was partly due to payments of
$2,571,678 in distributions to the partners during 1997. The partnership
received cash in 1997 from deposits related to a property sold in 1996 and
$181,807 in August 1997 related to the sale of a building leased to Kindercare
in Indianapolis, Indiana. Also, operations have provided $680,389 of cash.
The Partnership has purchased its properties for all cash. The Partnership may
finance one or more of its existing properties if, among other conditions: (1)
the property is held for at least two years (all properties have been owned by
the Partnership for more than two years), (2) the financing proceeds equal or
exceed the Partnership's investment in the property, and (3) the Partnership
distributes the financing proceeds to the partners. To date, the Partnership has
not leveraged any of its properties.
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the financial
statements and the notes thereto.
Comparison of the three months ended September 30, 1997 to the three months
ended September 30, 1996
Base rent decreased $36,483 or 15% from the previous year. During 1996, four
properties were sold which accounted for approximately $36,853 of rents in the
third quarter of 1996. Percentage rents decreased $44,344 due to the sale of
Denny's building in 1996 that generated all the percentage rents in 1996.
Interest income decreased $24,570 or 52% over 1996 due to finance charges to
Ponderosa Restaurant and Toddle House, charged in 1996 but not in 1997, and
larger cash balances in 1996 than 1997 from proceeds relating to property sales
before the funds were distributed to the partners.
Operating expenses decreased by $104,975 from the three months ended September
30, 1996 to the three months ended September 30, 1997. The net decrease was
primarily due to the $96,654 decrease in bad debt expense. The bad debt reserve
is from the Ponderosa Restaurant, who has vacated one of its premises and has
not been paying rent in accordance with the lease, and Toddle House, a tenant in
bankruptcy. In September 1997, Ponderosa paid $85,000 to settle outstanding
amounts which were reversed against the bad debt expense. Other expenses and
other income varied very little between the two accounting periods, except
depreciation expense which decreased $8,174 due to the sale of properties in
1996.
In 1997, the company recognized a gain of $17,593 relating to the sale of the
building leased to Kindercare in Indianapolis, Indiana. There were no sales in
the three months ended September 30, 1996.
Comparison of the nine months ended September 30, 1997 to the nine months ended
September 30, 1996
Base rent decreased $120,771 or 16% from the previous year. Four properties were
sold in 1996 which accounted for approximately $133,622 of rents in the first
nine months of 1996 and none in 1997. Percentage rents decreased $44,344 due to
the sale of Denny's building in 1996 that generated all the percentage rents in
1996.
Operating expenses decreased by $92,198 from the nine months ended September 30,
1996 to the nine months ended September 30, 1997. The net decrease was primarily
due to the $89,648 decrease in bad debt expense as discussed above. Accounting
and legal expenses increased by $23,957. The partnership paid $44,914 in legal
fees relating to Ponderosa Restaurant. Other expenses and other income varied
very little between the two accounting periods, except depreciation expense
which decreased $27,247 due to the sale of properties in 1996 and the sale of
the Kindercare property in 1997.
In 1996, the company recognized a gain of $206,761 relating to the sale of two
properties. In 1997, the company recognized a gain of $17,593 relating to the
sale of the Kindercare property.
Management does not expect inflation to significantly impact the operations of
the Partnership due to the structure of its investment portfolio. The leases all
provide a minimum rental which the lessee is obligated to pay. Additionally,
Continued 11
<PAGE> 12
most leases contain some form of inflation hedge which provides for the rent to
be increased. The rent increases may be in the form of scheduled fixed minimum
rent increases, Consumer Price Index adjustments, or by participating in a
percentage of the gross sales volume of the tenant. Since the triple-net leases
require the lessees to pay for all property operating expenses, the net effect
is that the income should increase as operating expenses increase due to
inflation.
CERTAIN CAUTIONARY STATEMENTS
Certain statements in this Form 10-Q are not historical fact and constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results of the Partnership to be materially different from historical results or
from any results expressed or implied by such forward-looking statements. Such
risk, uncertainties and other factors include, but are not limited to, the
following risks:
Economic Performance and Value of Properties Dependent on Many Factors. Real
property investments are subject to varying degrees of risk. The economic
performance and values of real estate can be affected by many factors, including
changes in the national, regional and local economic climates, local conditions
such as an oversupply of space or reductions in demand for real estate in the
area, the attractiveness of the properties to tenants, competition from other
available space, the ability of the owner to provide adequate maintenance and
insurance and increased operating costs.
Dependence on Rental Revenue from Real Property. Since substantially all of the
Partnership's income is derived from rental revenue from real property, the
Partnership's income and funds for distribution would be adversely affected if a
significant number of the Partnership's tenants were unable to meet their
obligations to the Partnership or if the Partnership were unable to lease a
significant amount of space in its buildings on economically favorable lease
terms. There can be no assurance that any tenant whose lease expires in the
future will renew such lease or that the Partnership will be able to re-lease
space on economically advantageous terms.
Illiquidity of Real Estate Investments. Equity real estate investments are
relatively illiquid and therefore tend to limit the ability of the Partnership
to vary its portfolio promptly in response to changes in economic or other
conditions.
Risk of Bankruptcy of Tenants. The bankruptcy or insolvency of a tenant would
have an adverse impact on the property affected and on the income produced by
such property. Under bankruptcy law, a tenant has the option of assuming
(continuing) or rejecting (terminating) any unexpired lease. If the tenant
assumes its lease with the Partnership, the tenant must cure all defaults under
the lease and provide the Partnership with adequate assurance of its future
performance under the lease. If the tenant rejects the lease, the Partnership's
claim for breach of the lease would (absent collateral securing the claim) be
treated as a general unsecured claim. The amount of the claim would be capped at
the amount owed for unpaid pre-petition lease payments unrelated to the
rejection, plus the greater of one years' lease payments or 15% of the remaining
lease payments payable under the lease (but not to exceed the amount of three
years' lease payments).
Environmental Risks. Under various federal, state and local laws, ordinances and
regulations, the Partnership may be considered an owner or operator of real
property or may have arranged for the disposal or treatment of hazardous or
toxic substances and, therefore, may become liable for the costs of removal or
remediation of certain hazardous substances released on or in its property or
disposed of by it, as well as certain other potential costs which could relate
to hazardous or toxic substances (including governmental fines and injuries to
persons and property). Such liability may be imposed whether or not the
Partnership knew of, or was responsible for, the presence of such hazardous
toxic substances.
PART II. OTHER INFORMATION
Items 1 through 5 have been omitted since no events occurred with respect to
these items.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: 27.1 - Financial Data Schedule
Continued 12
<PAGE> 13
(b) Reports on Form 8-K
The Partnership filed no reports on Form 8-K during the quarter
ended September 30, 1997.
SIGNATURES
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.
Dated: November 11, 1997 EXCEL PROPERTIES, LTD.
(Registrant)
Excel Realty Trust, Inc.
(General Partner)
By: /s/ Gary B. Sabin
--------------------------------
Gary B. Sabin, President
By: /s/ David A. Lund
--------------------------------
David A. Lund, Principal Financial
Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 653,418
<SECURITIES> 0
<RECEIVABLES> 1,213,466
<ALLOWANCES> (182,106)
<INVENTORY> 0
<CURRENT-ASSETS> 1,684,778
<PP&E> 7,274,463
<DEPRECIATION> (1,332,692)
<TOTAL-ASSETS> 7,626,549
<CURRENT-LIABILITIES> 24,166
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 7,602,383
<TOTAL-LIABILITY-AND-EQUITY> 7,626,549
<SALES> 0
<TOTAL-REVENUES> 766,821
<CGS> 0
<TOTAL-COSTS> 229,758
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 554,656
<EPS-PRIMARY> 4.06
<EPS-DILUTED> 0
</TABLE>
