SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1996
Commission File Number 0-16415
CUMBERLAND HEALTHCARE, L.P. I-A
(Exact name of Registrant as specified in its Charter)
Delaware 59-2660778
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
880 Carillon Parkway, St. Petersburg, Florida 33716
(Address of principal executive offices)
Registrant's telephone number (813) 573-3800
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 and
Exchange Act of 1934 during the preceding 12 months (or 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
Number of Units at
Title of Each Class June 30, 1996
Units of Limited Partnership
Interest: $1,000 per unit 30,000
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1995 Form 10-K, filed with the Securities and Exchange
Commission on April 12, 1996, Parts III and IV - Form S-11
Registration Statement and all amendments and supplements thereto
File No. 33-4301
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1996 1995
ASSETS (Audited)
Cash and Cash Equivalents $ 16,764,143 $ 1,626,628
Restricted Cash 30,068 59,272
Accounts Receivable (Net of Allowance of
$73,373 and $73,373) 1,160,791 705,511
Notes Receivable 1,000,000 0
Prepaid Expenses 137,939 74,681
Deferred Debt Costs (Net of Accumulated
Amortization of $52,054 and $42,336) 61,376 71,094
Intangible Assets (Net of Accumulated
Amortization of $38,832 and $33,285) 404,966 410,513
Investment Properties, at Cost (Net of
Accumulated Depreciation and Amortization
of $3,981,361 and $11,235,282) 7,568,139 19,159,419
Construction in Progress 0 74,324
Total Assets $ 27,127,422 $ 22,181,442
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts Payable $ 1,007,178 $ 955,713
Accrued Payroll 228,339 236,217
Interest Payable 9,446 34,646
Payable to Related Parties
- General Partner 8,151 11,054
- Affiliates 361,399 346,399
Mortgage Note Payable 4,720,868 7,946,917
Minority Interest 723,851 675,458
Total Liabilities 7,059,232 10,206,404
Partners' Equity:
Limited Partners (30,000 units outstanding
at June 30, 1996 and December 31, 1995) 20,192,906 12,261,618
General Partner (124,716) (286,580)
Total Partners' Equity 20,068,190 11,975,038
Total Liabilities and Partners' Equity $ 27,127,422 $ 22,181,442
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED
June 30, June 30,
1996 1995
Revenues:
Net Resident Service Revenues $ 3,664,107 $ 2,801,137
Rental Income 1,286,882 1,626,470
Interest Income 136,065 27,931
Total Revenues 5,087,054 4,455,538
Expenses:
Resident Service Expenses 3,218,920 2,371,957
Interest Expense - Affiliate 0 637
- Other 332,933 357,964
Rent Expense 125,392 150,142
Property Management Fees - General Partner 16,049 20,112
General and Administrative - Affiliates 18,454 14,118
- Other 93,507 61,659
Depreciation and Amortization 330,702 371,312
Total Expenses 4,135,957 3,347,901
Operating Income $ 951,097 $ 1,107,637
Minority Interest in Net (Income) Loss
of Consolidated Subsidiary (58,962) (41,475)
Income Before Extraordinary Item $ 892,135 $ 1,066,162
Extraordinary Item
Lease Termination Settlement 1,293,464 0
Gain on Sale of Assets 6,672,839 0
Net Income $ 8,858,438 $ 1,066,162
Allocation of Net Income
Limited Partners $ 8,681,269 $ 1,044,839
General Partner 177,169 21,323
Total Income $ 8,858,438 $ 1,066,162
Net Income Per $1,000 Limited Partnership Unit
Income Before Extraordinary Item $ 29.14 34.83
Extraordinary Item 260.23 0
Net Income $ 289.37 $ 34.83
Number of Limited Partnership Units 30,000 30,000
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
June 30, June 30,
1996 1995
Revenues:
Net Resident Service Revenues $ 1,856,024 $ 1,481,606
Rental Income 520,294 814,034
Interest Income 90,337 11,190
Total Revenues 2,466,655 2,306,830
Expenses:
Resident Service Expenses 1,597,688 1,210,891
Interest Expense - Other 153,778 154,800
Rent Expense 50,321 75,071
Property Management Fees - General Partner 6,574 10,062
General and Administrative - Affiliates (4,600) 367
- Other 52,373 34,521
Depreciation and Amortization 142,745 185,715
Total Expenses 1,998,879 1,671,427
Operating Income $ 467,776 $ 635,403
Minority Interest in Net (Income) Loss
of Consolidated Subsidiary (68,266) (46,046)
Income Before Extraordinary Item $ 399,510 $ 589,357
Extraordinary Item
Gain on Sale of Assets 6,672,839 0
Net Income $ 7,072,349 $ 589,357
Allocation of Net Income
Limited Partners $ 6,930,902 $ 577,570
General Partner 141,447 11,787
Total Income $ 7,072,349 $ 589,357
Net Income Per $1,000 Limited Partnership Unit
Income Before Extraordinary Item $ 13.05 19.25
Extraordinary Item 217.98 0
Net Income $ 231.03 $ 19.25
Number of Limited Partnership Units 30,000 30,000
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED
June 30, June 30,
1996 1995
Cash Flows from Operating Activities:
Net Income $ 8,858,438 $ 1,066,162
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and Amortization 330,702 371,891
Gain on Sale of Assets (6,672,839) 0
Minority Interest in Net Income (Loss)
of Consolidated Subsidiary 58,962 41,475
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivabl (455,280) 395,599
(Increase) Decrease in Prepaid Expenses (63,258) (69,676)
(Increase) Decrease in Restricted Cash 29,204 (8,310)
Increase (Decrease) in Payable to Related
Parties 12,097 (7,504)
Increase (Decrease) in Payables
and Accruals 18,387 48,931
Net Cash Provided by Operating
Activities 2,116,413 1,837,989
Cash Flows from Investing Activities:
(Additions) to Investment Properties (85,655) (24,573)
(Additions) to Construction in Progress 0 (4,950)
Sale of Investment Properties 15,848,942 0
Net Cash Provided by (Used in)
Investing Activities 15,763,287 (29,523)
Cash Flows from Financing Activities:
Payments of Notes Payable (1,966,330) (681,637)
(Increase) Decrease in Deferred Debt Cost 0 (4,999)
Distribution to Partners:
Limited Partners (750,000) (750,000)
General Partner (15,305) (15,306)
Minority Interest (10,550) 0
Net Cash Provided by (Used in)
Financing Activities (2,742,185) (1,451,942)
Increase(Decrease)in Cash and Cash Equivalents 15,137,515 356,524
Cash and Cash Equivalents at Beginning
of Period 1,626,628 1,202,175
Cash and Cash Equivalents at End of Period $16,764,143 $ 1,558,699
Supplemental Disclosure of Cash Flow Information:
Interest Paid $ 358,133 $ 363,146
Non-cash Items:
Sale of Investment Properties
Notes Receivable 1,000,000 0
Assumed Mortgage 1,259,719 0
Miscellaneous Settlements (208,661) 0
Total $ 2,051,058 $ 0
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1996
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Preparation
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included in the Partnership's Form
10-K for the year ended December 31, 1995. In the opinion of management,
these financial statements include all adjustments, consisting only of
normal recurring adjustments, necessary to summarize fairly the Partnership's
financial position and results of operations. The results of operations for
the period may not be indicative of results to be expected for the year.
Reclassification
Certain items in the 1995 financial statements have been reclassified
for comparative purposes to conform with the financial statement presentation
used in the 1996 statements.
Consolidation
The accompanying consolidated financial statements include the accounts of
the company and all of its subsidiaries. Intercompany transactions and
balances have been eliminated. Minority interest is accounted for by using
the equity method.
NOTE 2 - COMPENSATION, REIMBURSEMENTS, AND ACCRUALS FOR GENERAL
PARTNERS AND AFFILIATES:
The General Partner and affiliates are entitled to the following types of
compensation and reimbursement for costs and expenses incurred for the
Partnership for the six months ended June 30, 1996:
Property Management Fees $ 16,049
General and Administrative Costs and Fees 18,454
Cash Distributions 15,305
NOTE 3 - INVESTMENT PROPERTIES
As of June 30, 1996 the Partnership owned, directly or through
limited partnership investments, an interest in four nursing home properties.
A summary of the Partnership's investment properties is as follows:
Operated Leased
Land $ 1,534,105 $ 250,038
Buildings 4,545,181 3,108,476
Furniture and Fixtures 1,312,164 799,536
Investment Properties, at Cost 7,391,450 4,158,050
Less: Accumulated Depreciation
and Amortization (2,324,625) (1,656,736)
Net Book Value $ 5,066,825 $ 2,501,314
The Partnership, directly or through a manager, operates three skilled
nursing facilities. Paramount Chateau, a 99-bed facility located in
California, for the six months ended June 30, 1996, had an average occupancy
rate of 86% that was comprised of 7% private, 9% Medicare,
69% Medicaid and 1% HMO. The average reimbursement rates were $99, $247,
$73 and $80 per day for private, Medicare, Medicaid, and HMO, respectively.
The average monthly revenue was $250,588. Pacific Palms, a 99-bed facility
located in California, for the six months ended June 30, 1996 had an average
occupancy rate of 30% that was comprised of 3% private, 3%
Medicare, 17% Medicaid and 7% HMO. The average reimbursement rates were $104,
$220, $73 and $206 per day for private, Medicare, Medicaid and HMO,
respectively. The average monthly revenue was $112,633. Olympic Healthcare,
a 60-bed skilled nursing facility with a 24-bed assisted living wing located in
Sequim, Washington, for the six months ended June 30, 1996, had an average
occupancy in the skilled nursing facility of 95% that was comprised of
36% private, 10% Medicare and 49% Medicaid. The average reimbursement rates
in the skilled nursing facility were $98, $193 and $101 per day for private,
Medicare and Medicaid, respectively. The average monthly revenue was $188,686.
The 24-bed assisted living wing maintained an average occupancy of 77% that
was comprised of 29% private and 48% Medicaid. The average reimbursement
rates were $58 and $54 per day for private and Medicaid, respectively.
The average monthly revenue was $30,932.
NOTE 4 - EXTRAORDINARY ITEM
On October 25, 1995, a Lease Termination Agreement was signed by
Cumberland Healthcare and FHP, Inc. relating to FHP-Norwalk (f/k/a Rancho
Los Padres) whereby Cumberland would receive an early lease termination payment.
A Management Agreement was also signed whereby Cumberland would become the
interim operator of the facility. Pursuant to the Lease Termination Agreement,
$1,566,174 was placed in escrow, and payment was contingent upon Cumberland
obtaining the appropriate license to operate and maintain the
FHP-Norwalk facility. In January 1996, the state of California - Department of
Health Services issued a license to Cumberland Healthcare to operate and
maintain Pacific Palms Skilled Nursing (f/k/a FHP-Norwalk, f/k/a Rancho Los
Padres). After various prorations, working capital advances and interest
earned, the net distribution from the escrow account to Cumberland was
$1,534,334 which is recorded as lease termination settlement, interest income
and deferred revenue in the period ending March 31, 1996.
Cumberland Healthcare, L.P. I-A ("Cumberland") and Life Care Centers of
America, Inc. ("LCCA"), effective August 4, 1995, entered into a Purchase and
Sale Agreement pursuant to which LCCA agreed to acquire seven nursing homes
from Cumberland for an aggregate purchase price of $17,900,000, subject to
certain prorations and adjustments. Cumberland owns six of these homes and
leases the seventh from an independent owner. The purchase price paid
by LCCA was as follows:
(a) LCCA assumed the indebtedness secured by a mortgage on the Rimrock
Facility of $1,259,719;
(b) LCCA delivered a purchase money note in the amount of $1,000,000
guaranteed by its principal shareholder to the Partnership ("the LCCA Note").
The LCCA Note matures on the fifth anniversary of its issuance date of
May 29, 1996 but may be accelerated at the option of the Partnership at the
end of two years. A portion of the accrued interest is payable monthly
and the balance is due on the maturity of the LCCA Note. However, if the
Partnership exercises its right to call the Note after two years, the accrued
interest which would otherwise be due at maturity will be canceled;
(c) Funds were wired in the amount of $1,829,930 to payoff the existing
loan on the Sun City facility; and
(d) The balance of the purchase price was paid in cash at closing by
federal funds wire transfer to the Partnership of $13,803,952.
Closing of the LCCA transaction was contingent upon approval of the plan
by a majority interest of the Limited Partners which was obtained on May 8,
1996. The sale resulted in a gain of $6,672,839. With the May 29, 1996,
consummation of the sale this leaves Cumberland with two 99-bed skilled
nursing facilities in Southern California, a 100-bed skilled nursing
facility in Ohio and half interest in a 60-bed skilled nursing facility in
Washington, which also has a 24-bed assisted living wing.
CUMBERLAND HEALTHCARE, L.P. I-A
(a Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Net resident service revenues increased by $862,970 (30.8%) for the six
months ended June 30, 1996, as compared to the same period in 1995. This
increase is primarily due to the conversion of Pacific Palms (f/k/a FHP-Norwalk,
f/k/a Rancho Los Padres) from a leased facility (FHP-Norwalk) to an operated
facility effective January 1, 1996, resulting in six months
of resident services revenue in the first six months of 1996, while there
was none for the same period in 1995. Resident services expenses increased
$846,963 (35.7%) for the six months ended June 30, 1996, as compared to the
same period in 1995. This increase is due to an increase in nursing expenses
from the use of additional ancillary services needed to accommodate
the higher resident acuity level and the conversion of Pacific Palms
(f/k/a Rancho Los Padres) from a leased facility (FHP-Norwalk) to an operated
facility effective January 1, 1996, resulting in six months of resident
services expense in the first six months of 1996, while there was none
for the same period in 1995.
Rental income decreased by $339,588 (20.9%) for the six months ended
June 30, 1996, as compared to the same period in 1995. This decrease is due
to the conversion of Pacific Palms (f/k/a FHP-Norwalk, f/k/a Rancho Los Padres)
from a leased facility (FHP-Norwalk) to an operated facility, effective
January 1, 1996, and the sale of seven nursing homes to LCCA
which closed on May 29, 1996.
Interest income increased by $108,134 (387.1%) for the six months ended
June 30, 1996, as compared to the same period in 1995. This increase is due
to increased cash balances in interest bearing accounts. These increased
balances are from the proceeds of the lease termination and the sale of the
seven nursing homes.
Interest expense decreased by $25,668 (7.2%) for the six months ended June
30, 1996, as compared to the same period in 1995. This decrease resulted from
a reduction of the average level of debt.
General and Administrative - Other expense increased by $31,848 (51.7%)
for the six months ended June 30, 1996, as compared to the same period in 1995.
This increase resulted from increased legal and consulting fees relating to the
negotiation of the sale of seven nursing homes to LCCA.
General and Administrative - Affiliates decreased by $4,336 (30.7%) for
the six months ended June 30, 1996, compared to the same period in 1995, due
to an increase in travel and overhead of affiliates directly related to and
allocated to resident service expenses while total General and Administrative
remained stable.
Depreciation and Amortization expense decreased by $40,610 for the six
months ended June 30, 1996, as compared to the same period in 1995. This
decrease was primarily due to the net effect of increased depreciation from
the new laundry facility placed in service at Paramount Chateau in January
1996 and decreased depreciation from the seven nursing homes sold to
LCCA in May 1996.
Cumberland Healthcare, L.P. I-A ("Cumberland") and Life Care Centers of
America, Inc. ("LCCA"), effective August 4, 1995, entered into a Purchase and
Sale Agreement pursuant to which LCCA agreed to acquire seven nursing homes
from Cumberland for an aggregate purchase price of $17,900,000, subject to
certain prorations and adjustments. Cumberland owns six of these homes and
leases the seventh from an independent owner. Closing of the LCCA transaction
was contingent upon approval of the plan by a majority interest of the Limited
Partners which was obtained on May 8, 1996. The sale resulted in a gain of
$6,672,839.
Net resident service revenues increased by $374,418 (25.3%) for the
three months ended June 30, 1996, as compared to the same period in 1995.
This increase is primarily due to the conversion of Pacific Palms
(f/k/a FHP-Norwalk, f/k/a Rancho Los Padres) from a leased facility
(FHP-Norwalk) to an operated facility effective January 1, 1996 resulting
in three months of resident services revenues in 1996 compared to none in the
same period in 1995. Resident services expenses increased $386,797 (31.9%)
for the three months ended June 30, 1996, as compared to the same period in
1995. This increase is due to an increase in nursing expenses from the use
of additional ancillary services needed to accommodate the higher resident
acuity level and the conversion of Pacific Palms (f/k/a Rancho Los Padres)
from a leased facility (FHP-Norwalk) to an operated facility effective
January 1, 1996 resulting in three months of resident services expense in
1996 compared to none in the same period in 1995.
Rental income decreased by $293,740 (36.1%) for the three months ended
June 30, 1996, as compared to the same period in 1995. This decrease is due
to the conversion of Pacific Palms (f/k/a FHP-Norwalk, f/k/a Rancho Los Padres)
from a leased facility (FHP-Norwalk) to an operated facility effective
January 1, 1996 therefore there was three months of lease income
in 1995 while there was none for the same period in 1996. Also, the sale of
seven nursing homes to LCCA on May 29, 1996 resulted in two months in lease
income in 1996 as compared to the same period in 1995 which had three months
of lease income.
Interest income increased by $79,147 (707.3%) for the three months
ended June 30, 1996, as compared to the same period in 1995. This increase
is due to increased cash balances in interest bearing accounts resulting from
the proceeds received from the sale of seven nursing homes to LCCA and the
lease termination payment.
General and Administrative - Other expense increased by $17,852 (51.7%)
for the three months ended June 30, 1996, as compared to the same period in
1995. This increase resulted from increased legal and consulting fees relating
to the negotiation of the sale of seven nursing homes to LCCA.
General and Administrative - Affiliates expense decreased by $4,967 for
the three months ended June 30, 1996, compared to the same period in 1995,
due to an increase in the allocation of the travel and overhead of affiliates
directly to resident service expenses while total General and Administrative
remained stable.
Depreciation and Amortization expense decreased by $42,970 for the three
months ended June 30, 1996, as compared to the same period in 1995. This
decrease was primarily due to the net effect of increased depreciation from
the new laundry facility placed in service at Paramount Chateau in January
1996 and decreased depreciation from the seven nursing homes sold to
LCCA in May 1996.
The primary sources of funds for the period ended June 30, 1996, were
rental income, revenues from nursing home operations, proceeds from the sale
of seven California nursing homes, lease termination settlement and
collection of accounts receivable. These funds were used to pay nursing
home expenses, make cash distributions to the partners and reduce the
amount of outstanding indebtedness. As of June 30, 1996, the Partnership
has an interest in four nursing homes that have a combined net book value
of $7,568,139. Net book value is not necessarily representative of market
value.
In the opinion of the General Partner, there are no material trends,
favorable or unfavorable, in the Partnership's capital resources. The
resources will be sufficient to meet the Partnership's needs for the next
12 to 24 months. These sources include cash flows from operations, rental
income and current cash reserves.
Short-term liquidity requirements consist of funds needed to meet
commitments for debt service and administrative and operational expenses.
These short term needs will be funded by cash at June 30, 1996, plus 1996
rental income, interest income, and cash flows from operations. However, if
the future changes in the healthcare market would require extensive
capital expenditures by the Partnership in order for its facilities to
meet new licensure and/or marketplace standards, the Partnership may be
required to seek additional capital sources or increase its long term debt
in order to meet potential future expenditure requirements. The
General Partner is unable at this time to predict the extent of future capital
expenditure needs of the facilities resulting from future changes in the
nursing home industry.
Mortgage obligations coming due within the next three (3) years will be
reviewed prior to their due dates. Based on the Partnership's evaluation of
each property and its corresponding mortgage, current interest rates,
availability of funds and other relevant factors, each mortgage will be
either refinanced, paid off or the property abandoned. If needed for
mortgage funding, the Partnership has available income from rental property,
facility operational cash flows and current cash balances.
The cash balance, not including restricted cash, at June 30, 1996, was
$16,764,143. The Partnership had net income of $8,858,438. After adjusting
for depreciation, amortization, and changes in operating assets and
liabilities, net cash provided by operating activities was $2,116,413. The
net cash provided by investing activities was $15,763,287 which includes fixed
asset additions and the sale of investment properties. The net cash used
in financing activities was $2,742,185 and consisted of principal payments
on notes payable and distributions to partners. Significant changes to the
balance sheet which affected the cash flow of the Partnership
for the period primarily due to the start-up of operations of Pacific Palms
(f/k/a FHP-Norwalk, f/k/a Rancho Los Padres) with its accounts receivable
increasing from zero to $474,770. This was due to delays in licensing
approval, slow billing and a normal increase in Accounts Receivable. Prepaid
expenses increased $63,258 primarily from an increase in insurance rates
and the additional premium for Pacific Palms which was previously paid by
the lessee. Restricted cash decreased by $29,204 due to the net effect of
increased patient trust balances of $7,870 and the release of $37,074 from
the FHP capital improvements escrow account as part of the lease termination
agreement. Additions to investment properties increased primarily from
$74,324 being capitalized upon completion of a laundry addition at Paramount
Chateau The sale of the seven nursing homes provided $15,848,942 in cash
proceeds upon closing at May 29, 1996. Mortgage Notes Payable decreased by
$1,966,330 primarily due to the payoff of debt on the Sun City facility of
$1,814,307 from proceeds of the sale of the seven nursing homes. The
purchaser also assumed the $1,259,719 debt on the Rimrock facility.
Cash distributions to Limited Partners were discontinued during the
first quarter of 1988 and resumed in February 1992. The 1995 distribution
to Limited Partners totaled $1,500,000 (5% of the original capital of
$30,000,000). The February 1996 distribution to the Limited Partners was
$750,000 (2.5% of the original capital of $30,000,000). The July 1996
distribution to the Limited Partners was $13,200,000 (44% of the original
capital of $30,000,000). Future distributions will be at a level that is
warranted by the cash flow and profits of the Partnership.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits filed with this Report - None
(b) Reports on Form 8-K - Form 8-K filed on June 13, 1996
Date of Event: May 29, 1996
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, this report has been signed by the following persons
on behalf of the Registrant and in the capacities and on the dates indicated.
CUMBERLAND HEALTHCARE, L.P. I-A
By: Medical Investments Partners
By: RJ Health Properties, Inc.
Managing General Partner
Date: August 30, 1996 By: /s/Fred E. Whaley
President and Director
Date: August 30, 1996 By: /s/J. Davenport Mosby, III
Vice President and Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial informaiton extracted from
the quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the period ended June 30, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 16,764,143
<SECURITIES> 0
<RECEIVABLES> 1,234,164
<ALLOWANCES> 73,373
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 11,549,500
<DEPRECIATION> 3,981,361
<TOTAL-ASSETS> 27,127,422
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 5,444,719
0
0
<COMMON> 0
<OTHER-SE> 20,068,190
<TOTAL-LIABILITY-AND-EQUITY> 27,127,422
<SALES> 0
<TOTAL-REVENUES> 5,087,054
<CGS> 0
<TOTAL-COSTS> 3,344,312
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 332,933
<INCOME-PRETAX> 8,858,438
<INCOME-TAX> 0
<INCOME-CONTINUING> 892,135
<DISCONTINUED> 0
<EXTRAORDINARY> 7,966,303
<CHANGES> 0
<NET-INCOME> 8,858,438
<EPS-PRIMARY> 289.37<F2>
<EPS-DILUTED> 289.37<F2>
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>EPS is net income per $1,000 Limited Partnership unit.
</FN>
</TABLE>
