<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, 1995 . . . . . . .
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- --- EXCHANGE ACT OF 1934
For the transition period from ______________ to ______________
COMMISSION FILE NO.
0-17183
------------
MURRAY INCOME PROPERTIES II, LTD.
(Exact Name of Registrant as Specified in its Charter)
TEXAS 75-2085586
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
5550 LBJ FREEWAY, SUITE 675, DALLAS, TEXAS 75240
(Address of principal executive offices) (Zip Code)
(214) 991-9090
(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 (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.
Yes X No
--- ---
<PAGE> 2
MURRAY INCOME PROPERTIES II, LTD.
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September, December 31,
1995 1994
--------------- --------------
(unaudited)
<S> <C> <C>
Assets
Investment properties, at cost:
Land $ 5,789,291 $ 5,789,291
Buildings and improvements 17,391,970 17,389,603
----------- -----------
23,181,261 23,178,894
Less accumulated depreciation 6,073,265 5,515,370
----------- -----------
Net investment properties 17,107,996 17,663,524
Investment in joint venture, at equity 1,558,089 1,602,538
Cash and cash equivalents 907,539 919,644
Certificates of deposit 890,000 888,000
Accounts and notes receivable, net of allowance
of $15,566 and $19,879 in 1995 and 1994,
respectively 462,739 432,684
Other assets, at cost, net of accumulated
amortization of $331,056 and $281,154 in
1995 and 1994, respectively 233,625 261,081
----------- -----------
$21,159,988 $21,767,471
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable $ 7,827 $ 11,005
Accrued property taxes 200,792 268,290
Security deposits and other liabilities 93,403 95,778
Deferred income 58,731 62,976
----------- -----------
Total liabilities 360,753 438,049
----------- -----------
Partners' equity:
General Partners:
Capital contributions 1,000 1,000
Cumulative net earnings 516,987 487,641
Cumulative cash distributions (519,677) (491,982)
----------- -----------
(1,690) ( 3,341)
----------- -----------
Limited Partners (314,687 interests):
Capital contributions, net of offering costs 27,029,395 27,029,395
Cumulative net earnings 9,445,505 8,620,268
Cumulative cash distributions (15,673,975) (14,316,900)
----------- -----------
20,800,925 21,332,763
----------- -----------
Total partners' equity 20,799,235 21,329,422
----------- -----------
$21,159,988 $21,767,471
=========== ===========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE> 3
MURRAY INCOME PROPERTIES II, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF EARNINGS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
1995 1994 1995 1994
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Income:
Rental $659,901 $ 634,532 $1,951,389 $1,914,974
Interest 25,149 18,970 71,941 50,815
Equity in earnings of joint
venture 30,243 25,254 88,001 81,921
-------- --------- ---------- ----------
715,293 678,756 2,111,331 2,047,710
-------- --------- ---------- ----------
Expenses:
Depreciation 185,247 187,290 557,895 562,356
Property operating 159,381 160,708 488,450 489,677
General and administrative 57,647 63,171 214,716 223,481
Bad debts (recoveries), net (2,067) (1,025) (4,313) (3,976)
-------- --------- ---------- ----------
400,208 410,144 1,256,748 1,271,538
-------- --------- ---------- ----------
Net Earnings $315,085 $ 268,612 $ 854,583 $ 776,172
======== ========= ========== ==========
Earnings per limited
partnership interest $ .97 $ .82 $ 2.62 $ 2.38
======== ========= ========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
MURRAY INCOME PROPERTIES II, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CHANGES IN PARTNERS' EQUITY
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
---------- ---------- -------------
<S> <C> <C> <C>
Nine months ended September 30, 1994:
Balance at December 31, 1993 $ (4,944) $22,076,183 $22,071,239
Net earnings 27,867 748,305 776,172
Cash distributions (26,893) (1,317,747) (1,344,640)
---------- ----------- -----------
Balance at September 30, 1994 $ ( 3,970) $21,506,741 $21,502,771
========== =========== ===========
Nine months ended September 30, 1995:
Balance at December 31, 1994 $ (3,341) $21,332,763 $21,329,422
Net earnings 29,346 825,237 854,583
Cash distributions (27,695) (1,357,075) (1,384,770)
---------- ----------- -----------
Balance at September 30, 1995 $ (1,690) $20,800,925 $20,799,235
========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
MURRAY INCOME PROPERTIES II, LTD.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-----------------------------------
1995 1994
---------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 854,583 $ 776,172
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Bad debts (recoveries), net (4,313) (3,976)
Depreciation 557,895 562,356
Amortization of other assets 49,902 58,232
Amortization of deferred income (4,874) (4,874)
Change in assets and liabilities:
Accounts receivable (25,742) (1,880)
Other assets (22,446) (34,251)
Accounts payable (3,178) 2,929
Accrued property taxes, security deposits
and other liabilities and deferred income (69,244) (81,048)
---------- ----------
Net cash provided by operating activities 1,332,583 1,273,660
---------- ----------
Cash flows from investing activities:
Additions to investment properties (2,367) (13,600)
Purchases of certificates of deposit (597,000) (491,000)
Proceeds from redemptions of certificates of deposit 595,000 491,000
Distributions from joint venture, net 44,449 50,079
---------- ----------
Net cash provided by investing activities 40,082 36,479
---------- ----------
Cash flows from financing activities - cash distributions (1,384,770) (1,344,640)
---------- ----------
Net decrease in cash and cash equivalents (12,105) ( 34,501)
Cash and cash equivalents at beginning of period 919,644 864,451
---------- ----------
Cash and cash equivalents at end of period $ 907,539 $ 829,950
========== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
MURRAY INCOME PROPERTIES II, LTD.
(A LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. BASIS OF ACCOUNTING
Rental income is recognized as earned under the leases. Accordingly, the
Partnership accrues rental income for the full period of occupancy using the
straight line method over the related terms. At September 30, 1995 and
December 31, 1994, $244,006 and $232,922, respectively, of accounts receivable
related to such accruals.
Other assets consist primarily of deferred leasing costs which are
amortized using the straight line method over the lives of the related leases.
Depreciation is provided over the estimated useful lives of the respective
assets using the straight line method. The estimated useful lives of the
buildings and improvements range from three to twenty-five years.
The Partnership periodically reevaluates the propriety of the carrying
amounts of investment properties to determine whether current events and
circumstances warrant an adjustment to such carrying amounts. Such evaluations
are performed utilizing annual appraisals performed by independent appraisers
as well as internally developed estimates of expected undiscounted future cash
flows. In the event the carrying value of an individual property exceeds
expected future undiscounted cash flows, the property is written down to the
most recently appraised value. Since inception of the Partnership, none of the
Partnership's properties have required write downs.
No provision for income taxes has been made as the liabilities for such
taxes are those of the individual Partners rather than the Partnership. The
Partnership files its tax return on the accrual basis used for Federal income
tax purposes.
Earnings per limited partnership interest are based upon the limited
partnership interests outstanding at period-end and the net earnings allocated
to the Limited Partners in accordance with the terms of the Partnership
Agreement, as amended.
Certificates of deposit are held at commercial banks and are stated at
cost, which approximates market. For purposes of reporting cash flows, the
Partnership considers all certificates of deposit and highly liquid debt
instruments with original maturities of three months or less to be cash
equivalents.
2. PARTNERSHIP AGREEMENT
Pursuant to the terms of the Partnership Agreement, net profits or losses
of the Partnership and cash distributions are generally allocated 98% to the
Limited Partners and 2% to the General Partners, except that all depreciation
shall be allocated to those Limited Partners subject to Federal income taxes.
Cash distributions from the sale or refinancing of a property are allocated as
follows:
(a) First, all Cash Distributions from Sales or Refinancings shall be
allocated 99% to the Limited Partners and 1% to the Non-corporate General
Partner until the Limited Partners have been returned their Original
Invested Capital from Cash Distributions from Sales or Refinancings, plus
their Preferred Return from either Cash Distributions from Operations or
Cash Distributions from Sales or Refinancings.
6
<PAGE> 7
- --------------------------------------------------------------------------------
(b) Next, all Cash Distributions from Sales or Refinancings shall be
allocated 99% to the General Partners and 1% to the Non-corporate General
Partner in an amount equal to any unpaid Cash Distributions from
Operations subordinated to the Limited Partners' 7% non-cumulative annual
return. Such 99% shall be allocated 62 1/2% to the Non- corporate
General Partner and 37 1/2% to the Corporate General Partner.
(c) Next, all Cash Distributions from Sales or Refinancings shall be
allocated 1% to the Non-corporate General Partner and 99% to the Limited
Partners and the General Partners. Such 99% will be allocated 85% to the
Limited Partners and 15% to the General Partners. Such 15% shall be
allocated 62 1/2% to the Non-corporate General Partner and 37 1/2% to the
Corporate General Partner.
3. INVESTMENT PROPERTY
The Partnership owns and operates Paddock Place Shopping Center in
Nashville, Tennessee, Germantown Collection Shopping Center located in
Germantown (Memphis), Tennessee and 1202 Industrial Place (an office/warehouse
facility) located in Grand Prairie, Texas.
4. INVESTMENT IN JOINT VENTURE
The Partnership owns a 15% interest in Tower Place Joint Venture, a joint
venture that owns and operates Tower Place Festival Shopping Center located in
Pineville (Charlotte), North Carolina. The Partnership accounts for the joint
venture by using the equity method. The remaining 85% interest in the joint
venture is owned by Murray Income Properties I, Ltd. ("MIP I"), an affiliated
real estate limited partnership. The Tower Place Joint Venture Agreement
provides that the Partnership will share profits, losses, and cash
distributions according to the Partnership's 15% ownership interest in the
joint venture.
5. OTHER
Information furnished in this interim report reflects all adjustments
consisting of normal recurring adjustments which, in the opinion of management,
are necessary to reflect a fair presentation of the results for the periods
presented.
The financial information included in this interim report as of September
30, 1995 and for the three and nine months ended September 30, 1995 and 1994
has been prepared by management without audit by independent public accountants
who do not express an opinion thereon. The Partnership's annual report
contains audited financial statements. The notes to the financial statements
in the Partnership's 1994 annual report are an integral part of the financial
statements presented herein.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 1995, the Partnership had cash, cash equivalents and
certificates of deposit of $1,797,539 including $1,778,401 invested in
certificates of deposit and other money market instruments. Such amounts
represent cash generated from operations and working capital reserves.
Rental income from leases is accrued using the straight line method over
the related lease terms. At September 30, 1995 and December 31, 1994, $244,006
and $232,922, respectively, of accounts receivable related to such accruals.
Accounts receivable also consist of tenant receivables, receivables for rent
collected (but not yet remitted by the property management companies managing
the properties), and interest receivable on short-term investments. The
increase in accounts receivable of $25,742 (exclusive of bad debts and
recoveries) from December 31, 1994 to September 30, 1995 is primarily due to an
increase in receivables for rent collected (but not yet remitted by the
property management companies) at Germantown and an increase in tenant
receivables at Paddock Place. As of September 30, 1995 and December 31, 1994,
the Partnership had allowances of $15,566 and $19,879, respectively, for
uncollectible accounts receivable.
The decrease in accrued property taxes of $67,498 from December 31, 1994
to September 30, 1995 is primarily due to payments of 1994 property taxes for
the Partnership's properties.
During the three months ended September 30, 1995, the Partnership made
Cash Distributions from Operations of $461,590 relating to the three-month
period ended June 30, 1995. Subsequent to September 30, 1995, the Partnership
made the regular Quarterly Cash Distributions from Operations of $461,590,
relating to the three months ended September 30, 1995. The funds distributed
were derived from the net cash flow generated from operations of the
Partnership's properties and from interest earned, net of administrative
expenses, on funds invested in short-term money market instruments and
certificates of deposit. In addition to the regular quarterly distribution,
the Partnership made a special distribution from operations totalling $80,277.
Funds for this special distribution came from, among other sources, higher
percentage rents (additional rents that are based upon a percentage of the
tenant's sales in excess of a base amount), an increase in interest income, and
the recovery of delinquent rents from former tenants. Due to the uncertain
nature of income from these sources, the General Partners believe it to be in
the best interest of the Partnership to maintain the regular distribution at
its current level and to make special distributions, if any, only as they are
warranted.
Future liquidity is currently expected to result from cash generated from
the operations of the Partnership's properties (which could be affected
negatively in the event of weakened occupancies and/or effective rental rates),
interest earned on funds invested in short-term money market instruments and
certificates of deposit, and ultimately through the sale of the Partnership's
properties.
8
<PAGE> 9
RESULTS OF OPERATIONS
Rental income increased $36,415 for the nine months ended September 30,
1995 as compared to the same period in 1994. The following information details
the rental income generated, bad debt expense incurred, and average occupancy
for the periods shown for the Partnership's properties.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
PADDOCK PLACE SHOPPING CENTER
- -----------------------------
Rental income $274,068 $266,590 $811,056 $817,587
Bad debt expense (recovery) $ (2,067) $ (1,025) $ (4,313) $ (3,976)
Average occupancy 94% 95% 95% 96%
GERMANTOWN SHOPPING CENTER
- --------------------------
Rental income $264,353 $248,309 $785,112 $761,335
Bad debt expense (recovery) $ -0- $ -0- $ -0- $ -0-
Average occupancy 100% 100% 100% 100%
1202 INDUSTRIAL PLACE
- ---------------------
Rental income $121,480 $119,633 $355,221 $336,052
Average occupancy 100% 100% 100% 100%
</TABLE>
Rental income at Paddock Place decreased $6,531 for the nine months ended
September 30, 1995 as compared to the same period in 1994 primarily due to a
decrease in the reimbursement of real estate taxes partially offset by an
increase in percentage rent from J. Alexander's Restaurant.
Occupancy at Paddock Place Shopping Center in Nashville, Tennessee averaged
94% for the third quarter, a one percent decrease from the previous quarter.
One tenant who leased 1,254 square feet vacated its space prior to the
expiration of its lease. This tenant continued to pay rent until a replacement
tenant took occupancy under a new four year lease. Therefore, there was no
interruption of income to the Partnership on this space. As of September 30,
Paddock Place was 94% occupied.
Rental income at Germantown increased $23,777 for the nine months ended
September 30, 1995 as compared to the same period in 1994 due to an increase in
percentage rents received from two tenants and an increase in the reimbursement
of insurance costs.
Occupancy at the Germantown Collection in Germantown (Memphis), Tennessee
averaged 100% during the third quarter, unchanged from the previous quarter.
One tenant who occupies 4,003 square feet renewed its lease for an additional
two years. Some minor painting was completed at the property in August. As of
September 30, the Germantown Collection was 100% occupied.
Rental income at 1202 Industrial Place increased $19,169 for the nine
months ended September 30, 1995 as compared to the same period in 1994
primarily due to an increase in the reimbursement for common area maintenance
costs and real estate taxes.
Occupancy at 1202 Industrial Place in Grand Prairie (Dallas), Texas
remained 100% during the third quarter, unchanged from the previous quarter.
"Equity in earnings of joint venture", as reflected in the Statement of
Earnings, represents the Partnership's 15% interest in the earnings of Tower
Place Joint Venture. Rental income at Tower Place increased $65,567 for the
nine months ended September 30, 1995 as compared to the same period in
9
<PAGE> 10
1994 primarily due to an increase in occupancy offset by lower tenant
reimbursements for common area maintenance costs and real estate taxes. Tower
Place's total operating expenses increased with increases in repair and
maintenance costs, property management fees and utility costs being offset by
lower legal fees. The following information details the rental income
generated, bad debt expense incurred, and average occupancy for the periods
shown for Tower Place Shopping Center.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
TOWER PLACE SHOPPING CENTER
- ---------------------------
Rental income $401,903 $373,599 $1,214,977 $1,149,410
Bad debt expense (recovery) $ (2,182) $ -0- $ (4,319) $ 5,389
Average occupancy 96% 93% 96% 91%
</TABLE>
The Partnership's share of income from the joint venture increased $6,080
for the nine months ended September 30, 1995 as compared to the same period in
1994 for the reasons stated above.
Occupancy at Tower Place Festival in Pineville (Charlotte), North Carolina
averaged 96% during the third quarter, unchanged from the previous quarter.
One tenant who occupied 1,050 square feet vacated its space upon expiration of
its lease. This space was subsequently leased to a new tenant who will take
occupancy in November. In August a new lease for 1,610 square feet was signed
and this tenant will take occupancy in the fourth quarter. A tenant who
occupied 2,670 square feet moved to another space within the shopping center
which contains 1,260 square feet. As of September 30, Tower Place Festival was
98% leased.
Depreciation is provided over the estimated useful lives of the respective
assets using the straight line method. The estimated useful lives of the
building and improvements range from three to twenty-five years.
Property operating expenses consist primarily of utility costs, repair and
maintenance costs, leasing and promotion costs, real estate taxes, insurance,
and property management fees. Total property operating expenses remained flat
for the nine months ended September 30, 1995 as compared to the same period in
1994. Higher repair and maintenance costs and insurance costs were offset by
lower utility costs, landscaping costs, legal costs and real estate taxes.
Property operating expenses at Germantown decreased with decreases in utility
costs, landscaping costs and legal fees being offset by increases in repair and
maintenance costs related to painting the parking lot standards and minor roof
repairs. Property operating expenses at Paddock Place increased with increases
in landscaping costs and repair and maintenance costs related to minor roof
repairs being offset by lower utility costs and legal fees. Property operating
expenses at 1202 Industrial Place decreased primarily due to lower repair and
maintenance costs and real estate taxes.
General and administrative expenses incurred are related to legal and
accounting costs, rent, investor services costs, salaries and benefits and
various other costs required for the administration of the Partnership.
General and administrative expenses decreased $8,765 for the nine months ended
September 30, 1995 as compared to the same period in 1994 primarily as a result
of lower amortization of organization costs.
10
<PAGE> 11
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
3a Agreement of Limited Partnership of Murray
Income Properties II, Ltd. Reference is made to
Exhibit A of the Prospectus dated February 20,
1986 contained in Amendment No. 1 to
Partnership's Form S-11 Registration Statements
filed with the Securities and Exchange
Commission on February 13, 1986. (File No.
33-2294)
3b Amended and Restated Certificate and Agreement
of Limited Partnership dated as of November 15,
1989. Reference is made to Exhibit 3b to the
1989 Annual Report on Form 10- K filed with the
Securities and Exchange Commission on March 31,
1989. (File No. 0- 17183)
3c Amended and Restated Certificate and Agreement
of Limited Partnership dated as of January 10,
1990. Reference is made to Exhibit 3c to the
1989 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 31,
1989. (File No. 0-17183)
27 Financial Data Schedule
(b) Reports on Form 8-K filed during the quarter ended
September 30, 1995:
None
11
<PAGE> 12
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.
Murray Income Properties II, Ltd.
By: Murray Realty Investors IX, Inc.
A General Partner
Date: November 9, 1995 By: /s/ Mitchell Armstrong
--------------------------------
Mitchell Armstrong
President
Chief Financial Officer
12
<PAGE> 13
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
3a Agreement of Limited Partnership of Murray Income Properties
II, Ltd. Reference is made to Exhibit A of the Prospectus
dated February 20, 1986 contained in Amendment No. 1 to
Partnership's Form S-11 Registration Statements filed with
the Securities and Exchange Commission on February 13, 1986.
(File No. 33-2294)
3b Amended and Restated Certificate and Agreement of Limited
Partnership dated as of November 15, 1989. Reference is made
to Exhibit 3b to the 1989 Annual Report on Form 10- K filed
with the Securities and Exchange Commission on March 31,
1989. (File No. 0- 17183)
3c Amended and Restated Certificate and Agreement of Limited
Partnership dated as of January 10, 1990. Reference is made
to Exhibit 3c to the 1989 Annual Report on Form 10-K filed
with the Securities and Exchange Commission on March 31,
1989. (File No. 0-17183)
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MURRAY
INCOME PROPERTIES II, LTD. BALANCE SHEET AND STATEMENT OF EARNINGS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q FOR THE QUARTER ENDED
SEPTEMBER 30, 1995.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 907,539
<SECURITIES> 890,000
<RECEIVABLES> 478,305
<ALLOWANCES> 15,566
<INVENTORY> 0
<CURRENT-ASSETS> 2,260,278
<PP&E> 23,181,261
<DEPRECIATION> 6,073,265
<TOTAL-ASSETS> 21,159,988
<CURRENT-LIABILITIES> 208,619
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 20,799,235
<TOTAL-LIABILITY-AND-EQUITY> 21,159,988
<SALES> 0
<TOTAL-REVENUES> 715,293
<CGS> 0
<TOTAL-COSTS> 344,628
<OTHER-EXPENSES> 0
<LOSS-PROVISION> (2,067)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 315,085
<INCOME-TAX> 0
<INCOME-CONTINUING> 315,085
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 315,085
<EPS-PRIMARY> .97
<EPS-DILUTED> .97
</TABLE>
