<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------
FORM 10-Q
-----------
| X | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 29, 1997
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 number 0-14804
-------------------
GENERAL ELECTRIC CAPITAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 06-1109503
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
260 LONG RIDGE ROAD,
STAMFORD, CONNECTICUT 06927
(Address of principal executive offices) (Zip Code)
(203) 357-4000
(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 | |
At May 12, 1997, 101 shares of common stock with a par value of $10,000 were
outstanding.
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE
FORMAT.
<PAGE>
TABLE OF CONTENTS
PAGE
--------------
PART I - FINANCIAL INFORMATION.
Item 1. Financial Statements ............................. 1
Item 2. Management's Discussion and Analysis of Results of
Operations ....................................... 5
Exhibit 12. Computation of Ratio of Earnings to Fixed Charges
and Computation of Ratio of Earnings to Combined
Fixed Charges and Preferred Stock Dividends ...... 8
PART II - OTHER INFORMATION.
Item 6. Exhibits and Reports on Form 8-K ................. 9
Signatures ..................................................... 10
Index to Exhibits .............................................. 11
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS
(Unaudited)
THREE MONTHS ENDED
--------------------
MARCH 29, MARCH 30,
(In millions) 1997 1996
-------- --------
<S> <C> <C>
EARNED INCOME .......................................... $ 9,544 $ 7,245
-------- --------
EXPENSES
Interest ............................................... 1,783 1,735
Operating and administrative ........................... 3,524 2,185
Insurance losses and policyholder and annuity benefits . 2,244 1,602
Provision for losses on financing receivables .......... 312 213
Depreciation and amortization of buildings and equipment
and equipment on operating leases ..................... 570 493
Minority interest in net earnings of consolidated
affiliates ............................................ 30 44
-------- --------
8,463 6,272
-------- --------
EARNINGS
Earnings before income taxes ........................... 1,081 973
Provision for income taxes ............................. (327) (323)
-------- --------
NET EARNINGS ........................................... 754 650
Dividends .............................................. (300) (225)
Retained earnings at beginning of period ............... 11,354 9,518
-------- --------
RETAINED EARNINGS AT END OF PERIOD ..................... $ 11,808 $ 9,943
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
1
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF FINANCIAL POSITION
MARCH 29, DECEMBER 31,
(In millions) 1997 1996
-------- --------
(Unaudited)
<S> <C> <C>
ASSETS
Cash and equivalents ................................... $ 2,921 $ 3,234
Investment securities .................................. 59,775 59,872
Financing receivables:
Time sales and loans, net of deferred income ......... 60,681 62,832
Investment in financing leases, net of deferred income 39,088 39,575
-------- --------
99,769 102,407
Allowance for losses on financing receivables ........ (2,624) (2,693)
-------- --------
Financing receivables - net ........................ 97,145 99,714
Other receivables - net ................................ 15,562 15,962
Equipment on operating leases (at cost), less
accumulated amortization of $5,402 and $5,625 ......... 16,583 16,134
Intangible assets ...................................... 8,493 8,640
Other assets ........................................... 24,487 23,863
-------- --------
TOTAL ASSETS ..................................... $224,966 $227,419
======== ========
LIABILITIES AND EQUITY
Short-term borrowings .................................. $ 79,350 $ 77,945
Long-term borrowings:
Senior ............................................... 43,792 46,680
Subordinated ......................................... 996 996
Insurance liabilities, reserves and annuity benefits ... 61,152 61,327
Other liabilities ...................................... 15,180 15,925
Deferred income taxes .................................. 7,728 7,740
-------- --------
Total liabilities ................................ 208,198 210,613
-------- --------
Minority interest in equity of consolidated affiliates . 2,619 2,530
-------- --------
Capital stock .......................................... 11 11
Additional paid-in capital ............................. 2,325 2,316
Retained earnings ...................................... 11,808 11,354
Unrealized gains on investment securities .............. 180 668
Foreign currency translation adjustments ............... (175) (73)
-------- --------
Total equity ..................................... 14,149 14,276
-------- --------
TOTAL LIABILITIES AND EQUITY ..................... $224,966 $227,419
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
2
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED
--------------------
MARCH 29, MARCH 30,
(In millions) 1997 1996
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ........................................... $ 754 $ 650
Adjustments to reconcile net earnings to cash provided
from operating activities:
Provision for losses on financing receivables ........ 312 213
Depreciation and amortization of buildings and
equipment and equipment on operating leases ......... 570 493
Other - net .......................................... (50) 116
-------- --------
Cash provided from operating activities ............ 1,586 1,472
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers ......................... (10,362) (11,391)
Principal collections from customers ................... 10,250 11,876
Investment in assets on financing leases ............... (3,880) (2,914)
Principal collections on financing leases .............. 3,924 2,908
Net decrease in credit card receivables ................ 1,453 172
Buildings and equipment and equipment on
operating leases:
- additions ......................................... (1,285) (1,367)
- dispositions ...................................... 349 350
Payments for principal businesses purchased, net of
cash acquired ......................................... (27) (97)
Purchases of investment securities by insurance
affiliates and annuity businesses ..................... (4,562) (3,551)
Dispositions and maturities of investment securities by
insurance affiliates and annuity businesses ........... 4,460 3,158
Other - net ............................................ (1,538) (1,327)
-------- --------
Cash used for investing activities ................. (1,218) (2,183)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) .. 2,457 (1,414)
Newly issued debt - short-term (maturities 91-365 days) 963 882
- long-term senior .................. 3,700 7,657
Proceeds - non-recourse, leveraged lease debt .......... -- 236
Repayments and other reductions:
- short-term (maturities 91-365 days) (7,418) (5,479)
- long-term senior .................. (331) (314)
Principal payments - non-recourse, leveraged lease debt (129) (103)
Proceeds from sales of investment and annuity contracts 917 149
Redemption of investment and annuity contracts ......... (640) (478)
Dividends paid ......................................... (300) (225)
Issuance of variable cumulative preferred stock by
consolidated affiliate ................................ 100 --
-------- --------
Cash (used for) provided from financing activities . (681) 911
-------- --------
(DECREASE) INCREASE IN CASH AND EQUIVALENTS ............ (313) 200
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............ 3,234 1,949
-------- --------
CASH AND EQUIVALENTS AT END OF PERIOD .................. $ 2,921 $ 2,149
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
3
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying condensed quarterly financial statements represent the
adding together of General Electric Capital Services, Inc. and all
majority-owned and controlled affiliates (collectively called "the
Corporation" or "GECS"). All significant transactions among the parent and
consolidated affiliates have been eliminated. Certain prior period data
have been reclassified to conform to the current period presentation.
2. The condensed consolidated quarterly financial statements are unaudited.
These statements include all adjustments (consisting of normal recurring
accruals) considered necessary by management to present a fair statement of
the results of operations, financial position and cash flows. The results
reported in these condensed consolidated financial statements should not be
regarded as necessarily indicative of results that may be expected for the
entire year.
3. The Corporation has adopted Statement of Financial Accounting Standards
("SFAS") No. 125, Accounting for Transfers and Servicing of Financial
Assets and Extinguishments of Liabilities. Among other things, this
Statement distinguishes transfers of financial assets that are sales from
transfers that are secured borrowings, based on control of the transferred
assets. SFAS No. 125 applies to all transactions occurring after December
31, 1996; thus, adoption did not have an effect on the financial position
or results of operations of the Corporation.
4
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.
OVERVIEW
Net earnings for the first quarter of 1997 were $754 million, a $104 million
(16%) increase over the first quarter of 1996.
Earnings of the lending, leasing and equipment management businesses are
significantly influenced by the level of invested assets, the related financing
spreads (the excess of rates earned -- yields -- over rates on borrowings) and
the quality of those assets. The increase in net earnings for these businesses
principally resulted from a higher average level of invested assets as well as
increased financing spreads, reflecting both higher yields and lower borrowing
rates. Earnings growth from the consumer savings and insurance operations also
contributed to the increase in net earnings, principally reflecting the effects
of acquisitions during 1996. These increases were partially offset by higher
losses associated with the Corporation's equity investment in Montgomery Ward
Holding Corp.
The Specialty Insurance segment, principally GE Global Insurance Holding
Corporation, added to the increase in net earnings primarily due to increased
premium and investment income resulting from origination volume and continued
growth in the investment portfolios. These increases were partially offset by
increases in reserves for insurance losses, primarily related to the
corresponding increase in premium income.
OPERATING RESULTS
EARNED INCOME from all sources was $9,544 million for the first quarter of 1997,
a 32% increase compared with $7,245 million for the first quarter of 1996.
Earned income from the equipment management, consumer services, mid-market
financing, and specialized financing businesses increased $2,080 million (40%)
over the comparable prior-year period. A significant portion of this increase
was the contribution provided by the computer equipment businesses and the
consumer savings and insurance businesses acquired during 1996. The increase
also reflected a higher average level of invested assets, resulting from both
origination volume and acquisitions of portfolios and businesses. Earned income
of the Specialty Insurance segment increased $237 million (11%) to $2,320
million for the first quarter of 1997 compared with the first quarter of 1996.
The increase primarily reflected increased premium and investment income
resulting from origination volume and continued growth in the investment
portfolios.
INTEREST EXPENSE for the first quarter of 1997 was $1,783 million, 3% higher
than for the first quarter of 1996. The increase reflected the effects of higher
average borrowings used to finance asset growth, offset by the effects of lower
average interest rates. The composite interest rate on the Corporation's
borrowings for the first quarter of 1997 was 6.02% compared with 6.38% in the
first quarter of 1996.
OPERATING AND ADMINISTRATIVE EXPENSES were $3,524 million for the first quarter
of 1997, a 61% increase over the first quarter of 1996. The increase primarily
reflected costs associated with businesses and portfolios acquired over the past
year and higher investment levels. Included in this increase are costs of sales
and services of the computer equipment businesses acquired in 1996.
INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased 40% to $2,244
million for the first quarter of 1997, compared with $1,602 million for the
first quarter of 1996. The increase primarily reflected the consumer savings and
insurance businesses acquired in 1996 and growth in origination volume.
PROVISION FOR LOSSES ON FINANCING RECEIVABLES increased to $312 million for the
first quarter of 1997 from $213 million for the first quarter of 1996. These
provisions principally related to private-label and bank credit cards in the
Consumer Services segment which are discussed below under Portfolio Quality. The
increase principally reflects higher average receivable balances as well as
increased delinquencies in the consumer portfolio, consistent with industry
experience.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
(Continued).
DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT AND EQUIPMENT ON
OPERATING LEASES increased $77 million (16%) to $570 million for the first
quarter of 1997 compared with $493 million for the first quarter of 1996. The
increase was principally the result of higher levels of equipment on operating
leases, primarily reflecting a shift in auto lease volume from financing leases
to operating leases as well as origination volume and acquisition growth.
PROVISION FOR INCOME TAXES was $327 million for the first quarter of 1997 (an
effective tax rate of 30.2%), compared with $323 million for the first quarter
of 1996 (an effective tax rate of 33.2%). The higher provision for income taxes
reflected increased pre-tax earnings subject to statutory rates. The decrease in
the 1997 effective tax rate resulted primarily from increased tax credits and
decreases in taxes on non-U.S. income.
CAPITAL RESOURCES AND LIQUIDITY
Other Assets includes $228 million at March 29, 1997, representing the
Corporation's noncontrolling investment in common stock of Montgomery Ward
Holding Corp. ("MWHC"), down from $314 million at December 31, 1996. During the
first quarter of 1997, MWHC reported losses from operations, and the
Corporation's investment was reduced for its share of such losses. In addition
to the investment in MWHC common stock, the Corporation engages in various
ordinary course of business financing transactions with MWHC and affiliates. At
March 29, 1997, such investments, primarily financing receivables from MWHC and
affiliates, amounted to approximately $880 million, an increase of $133 million
from December 31, 1996, primarily resulting from increased inventory financing.
These investments were all performing in accordance with their terms at March
29, 1997. No impairment writedown was considered necessary for investments in or
financing receivables with MWHC and affiliates at March 29, 1997. In addition to
the direct transactions with MWHC and affiliates, the Corporation also provides
financing to customers of MWHC and affiliates through GE Capital's wholly-owned
affiliate, Montgomery Ward Credit Corporation.
PORTFOLIO QUALITY
THE PORTFOLIO OF FINANCING RECEIVABLES, before allowance for losses, decreased
to $99.8 billion at March 29, 1997 from $102.4 billion at the end of 1996.
Financing receivables are the financing segment's largest asset and its primary
source of revenues. Related allowances for losses at March 29, 1997, aggregated
$2.6 billion (2.63% of receivables - the same as at the end of 1996) and are, in
management's judgment, appropriate given the risk profile of the portfolio. A
discussion about the quality of certain elements of the portfolio of financing
receivables follows. "Nonearning" receivables are those that are 90 days or more
delinquent and "reduced earning" receivables are commercial receivables whose
terms have been restructured to a below-market yield.
CONSUMER RECEIVABLES, primarily credit card and personal loans and auto loans
and leases, were $44.5 billion at March 29, 1997, a decrease of $1.7 billion
from the end of 1996. Nonearning receivables increased to $939 million at March
29, 1997, from $926 million at December 31, 1996. Write-offs of consumer
receivables increased to $293 million for the first quarter of 1997, compared
with $190 million for the first quarter of 1996. This increase was primarily
attributable to higher average receivable balances resulting from a combination
of origination volume and acquisitions of businesses and portfolios as well as
higher delinquencies, consistent with overall industry experience.
COMMERCIAL REAL ESTATE LOANS classified as financing receivables were $11.9
billion at March 29, 1997, compared with $12.1 billion at year-end 1996.
Nonearning and reduced earning receivables increased to $179 million at March
29, 1997, from $158 million at December 31, 1996. Write-offs of commercial real
estate loans were $6 million for the first quarter of 1997, compared with $10
million for the first quarter of 1996. At March 29, 1997, the commercial real
estate portfolio also included, in other assets, $1.6 billion of assets acquired
for resale from various financial institutions (the same as at year-end 1996)
and $2.4 billion of investments in real estate ventures ($2.5 billion at
year-end 1996).
OTHER FINANCING RECEIVABLES, totaling $43.4 billion at March 29, 1997 ($44.1
billion at December 31, 1996), consisted of a diverse commercial, industrial and
equipment loan and lease portfolio. Related nonearning and reduced-earning
receivables were $290 million at March 29, 1997, compared with $313 million at
year-end 1996.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
(Continued).
The Corporation held loans and leases to commercial airlines amounting to $8.4
billion at March 29, 1997, up from $8.2 billion at the end of 1996.
OTHER MATTERS
As 1997 progresses, management continues to believe that vigilant attention to
risk management and controllership and a strong focus on quality - complete
satisfaction of customer needs - position it to deal effectively with the
increasing competition in an ever-changing global economy.
7
<PAGE>
EXHIBIT 12
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
THREE MONTHS ENDED MARCH 29, 1997
(Unaudited)
RATIO OF
EARNINGS
TO
COMBINED
FIXED
RATIO OF CHARGES
EARNINGS AND
TO PREFERRED
FIXED STOCK
(Dollar amounts in millions) CHARGES DIVIDENDS
-------- --------
<S> <C> <C>
Net earnings ........................................... $ 754 $ 754
Provision for income taxes ............................. 327 327
Minority interest in net earnings of consolidated
affiliates ............................................ 30 30
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 1,111 1,111
-------- --------
Fixed charges:
Interest ............................................. 1,808 1,808
One-third of rentals ................................. 49 49
-------- --------
Total fixed charges .................................... 1,857 1,857
-------- --------
Less interest capitalized, net of amortization ......... 12 12
-------- --------
Earnings before provision for income taxes and minority
interest, plus fixed charges .......................... $ 2,956 $ 2,956
======== ========
Ratio of earnings to fixed charges ..................... 1.59
========
Preferred stock dividend requirements .................. $ --
Ratio of earnings before provision for income taxes to
net earnings .......................................... 1.43
Preferred stock dividend factor on pre-tax basis ....... --
Fixed charges .......................................... 1,857
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 1,857
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.59
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
8
<PAGE>
PART II--OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a. EXHIBITS.
Exhibit 12. Computation of ratio of earnings to fixed charges and
computation of ratio of earnings to combined fixed charges
and preferred stock dividends.
Exhibit 27. Financial Data Schedule (filed electronically only).
b. REPORTS ON FORM 8-K.
None.
9
<PAGE>
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.
GENERAL ELECTRIC CAPITAL SERVICES, INC.
---------------------------------------
(Registrant)
Date: May 13, 1997 By: /s/ J.A. Parke
-----------------------------------
J.A. Parke,
Senior Vice President, Finance
(Principal Financial Officer)
Date: May 13, 1997 By: /s/ J.C. Amble
-----------------------------------
J.C. Amble,
Vice President and Controller
(Principal Accounting Officer)
10
<PAGE>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
INDEX TO EXHIBITS
EXHIBIT NO. PAGE
- ------------- ------
12 Computation of ratio of earnings to fixed charges
and computation of ratio of earnings to combined
fixed charges and preferred stock dividends ....... 8
27 Financial Data Schedule (filed electronically only)
11
<PAGE>
<PAGE>
EXHIBIT 12
<TABLE>
<CAPTION>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
THREE MONTHS ENDED MARCH 29, 1997
(Unaudited)
RATIO OF
EARNINGS
TO
COMBINED
FIXED
RATIO OF CHARGES
EARNINGS AND
TO PREFERRED
FIXED STOCK
(Dollar amounts in millions) CHARGES DIVIDENDS
-------- --------
<S> <C> <C>
Net earnings ........................................... $ 754 $ 754
Provision for income taxes ............................. 327 327
Minority interest in net earnings of consolidated
affiliates ............................................ 30 30
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 1,111 1,111
-------- --------
Fixed charges:
Interest ............................................. 1,808 1,808
One-third of rentals ................................. 49 49
-------- --------
Total fixed charges .................................... 1,857 1,857
-------- --------
Less interest capitalized, net of amortization ......... 12 12
-------- --------
Earnings before provision for income taxes and minority
interest, plus fixed charges .......................... $ 2,956 $ 2,956
======== ========
Ratio of earnings to fixed charges ..................... 1.59
========
Preferred stock dividend requirements .................. $ --
Ratio of earnings before provision for income taxes to
net earnings .......................................... 1.43
Preferred stock dividend factor on pre-tax basis ....... --
Fixed charges .......................................... 1,857
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 1,857
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.59
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 29, 1997, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<CIK> 0000797463
<NAME> GENERAL ELECTRIC CAPITAL SERVICES, INC.
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-29-1997
<CASH> 2,921
<SECURITIES> 59,775
<RECEIVABLES> 99,769
<ALLOWANCES> 2,624
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 25,278
<DEPRECIATION> 6,705
<TOTAL-ASSETS> 224,966
<CURRENT-LIABILITIES> 0
<BONDS> 44,788
0
10
<COMMON> 1
<OTHER-SE> 14,138
<TOTAL-LIABILITY-AND-EQUITY> 224,966
<SALES> 0
<TOTAL-REVENUES> 9,544
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,524
<LOSS-PROVISION> 312
<INTEREST-EXPENSE> 1,783
<INCOME-PRETAX> 1,081
<INCOME-TAX> 327
<INCOME-CONTINUING> 754
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 754
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
