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 June 30, 1997
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-15703
SUMMIT INSURED EQUITY L.P.
(Exact names of registrant as specified in its charter)
Delaware 13-2641866
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-5333
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>
PART I
Item 1. Financial Statements
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Statements of Financial Condition
(Unaudited)
============ ============
June 30, December 31,
1997 1996
------------ ------------
ASSETS
Property and equipment, net of accumulated
depreciation of $15,709,703 and $14,841,244,
respectively (Note 2) $ 69,813,104 $ 70,670,980
Cash and cash equivalents 2,810,420 2,398,013
Accounts receivable-tenants, net of allowance for
doubtful accounts of $501,083 and $302,609,
respectively 744,202 803,219
Deferred insurance costs, net of accumulated
amortization of $4,904,738 and $4,604,448,
respectively 1,101,066 1,401,356
Deferred refinancing costs, net of accumulated
amortization of $11,439 and $116,043,
respectively 14,959 17,599
Deferred leasing commissions, net of accumulated
amortization of $333,180 and $263,304,
respectively 470,567 468,653
Other assets 70,004 82,517
------------ ------------
Total Assets $ 75,024,322 $ 75,842,337
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Notes payable $ 5,263,509 $ 5,565,841
Accounts payable and other liabilities 470,714 475,862
Real estate taxes payable 596,873 564,012
Due to General Partners and affiliates 269,018 141,192
------------ ------------
Total Liabilities 6,600,114 6,746,907
------------ ------------
Contingencies (Note 5)
Partners' Capital (Deficit):
Limited Partners (4,000,000 BUC$
issued and outstanding) 68,687,683 69,352,193
General Partners (263,475) (256,763)
------------ ------------
Total Partners' Capital 68,424,208 69,095,430
------------ ------------
Total Liabilities and Partners' Capital $ 75,024,322 $ 75,842,337
============ ============
See Notes to Financial Statements
2
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Statements of Income
(Unaudited)
<TABLE>
<CAPTION>
=============================== ===============================
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------- -------------------------------
1997 1996 1997 1996
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 1,710,067 $ 1,698,687 $ 3,652,543 $ 3,571,216
Recovery of common area
maintenance charges 207,119 185,180 414,239 370,361
Real estate tax reimbursements 260,207 217,162 520,414 434,323
Interest income 14,049 8,294 24,866 15,009
Other 52,347 33,919 102,611 76,080
----------- ----------- ----------- -----------
Total revenues 2,243,789 2,143,242 4,714,673 4,466,989
----------- ----------- ----------- -----------
Expenses:
General and administrative 118,722 108,134 219,072 215,945
General and administrative-
related parties (Note 3) 140,591 132,112 273,776 333,252
Operating 33,345 40,475 89,034 86,358
Repairs and maintenance 257,124 240,047 531,722 456,324
Real estate taxes 268,894 280,785 537,787 561,569
Insurance 65,541 63,868 126,009 127,735
Interest 124,311 133,621 246,435 268,662
Depreciation and amortization 621,466 633,181 1,241,265 1,262,749
Bad debt 246,426 (191,189) 84,974 93,074
----------- ----------- ----------- -----------
Total expenses 1,876,420 1,441,034 3,350,074 3,405,668
----------- ----------- ----------- -----------
Net income $ 367,369 $ 702,208 $ 1,364,599 $ 1,061,321
=========== =========== =========== ===========
Allocation of Net Income:
Limited partners $ 255,965 $ 587,456 $ 1,135,493 $ 835,248
=========== =========== =========== ===========
General Partners $ 2,586 $ 5,934 $ 11,470 $ 8,437
=========== =========== =========== ===========
Special distributions to
General Partners $ 108,818 $ 108,818 $ 217,636 $ 217,636
=========== =========== =========== ===========
Net Income per BUC $ .06 $ .15 $ .28 $ .21
=========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
3
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Statement of Changes in Partners' Capital (Deficit)
(Unaudited)
============================================
Limited General
Total Partners Partners
------------ ------------ ------------
Partners' capital (deficit) -
January 1, 1997 $ 69,095,430 $ 69,352,193 $ (256,763)
Net income 1,364,599 1,135,493 229,106
Distributions (2,035,821) (1,800,003) (235,818)
------------ ------------ ------------
Partners' capital (deficit) -
June 30, 1997 $ 68,424,208 $ 68,687,683 $ (263,475)
============ ============ ============
See Notes to Financial Statements
4
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
==========================
Six Months Ended
June 30,
--------------------------
1997 1996
--------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,364,599 $ 1,061,321
----------- -----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,241,265 1,262,749
Decrease in accounts receivable-tenants 25,659 522,899
Increase in allowance for doubtful accounts 33,358 57,813
Decrease in other assets 12,513 30,574
Increase in due to General Partners and affiliates 127,826 83,232
Decrease in accounts payable and
other liabilities (5,148) (101,346)
Increase in real estate tax payable 32,861 30,481
----------- -----------
Total adjustments 1,468,334 1,886,402
----------- -----------
Net cash provided by operating activities 2,832,933 2,947,723
----------- -----------
Cash flows from investing activities:
Improvements to property and equipment (10,583) (40,877)
Leasing commissions paid (71,790) (131,600)
----------- -----------
Net cash used in investing activities (82,373) (172,477)
----------- -----------
Cash flows from financing activities:
Principal payment on notes payable (302,332) (113,322)
Distributions paid (2,035,821) (2,035,820)
----------- -----------
Net cash used in financing activities (2,338,153) (2,149,142)
----------- -----------
Net increase in cash and cash equivalents 412,407 626,104
Cash and cash equivalents - beginning of period 2,398,013 2,057,134
----------- -----------
Cash and cash equivalents - end of period $ 2,810,420 $ 2,683,238
=========== ===========
Supplemental information:
Interest paid $ 248,121 $ 268,662
=========== ===========
</TABLE>
See Notes to Financial Statements
5
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
June 30, 1997
(Unaudited)
Note 1 - General
Summit Insured Equity L.P., a Delaware limited partnership (the "Partnership"),
was organized on December 12, 1985 and had no operations until the commencement,
on December 23, 1986, of the public offering of beneficial unit certificates
(BUC$) representing assignments of limited partnership interests in the
Partnership. The General Partners of the Partnership (the "General Partners")
are Related Insured Equity Associates, Inc. (the "Related General Partner") and
Prudential-Bache Properties, Inc. ("PBP"). The General Partners manage and
control the affairs of the Partnership. The Partnership was formed to acquire,
on an all-cash basis, existing income producing shopping centers, and to
improve, operate, and hold such properties for investment.
These financial statements have been prepared without audit. In the opinion of
management, the financial statements contain all adjustments (consisting of only
normal recurring adjustments) necessary to present fairly the financial position
of the Partnership as of June 30, 1997, the results of its operations for the
three and six months ended June 30, 1997 and 1996 and its cash flows for the six
months ended June 30, 1997 and 1996. However, the operating results for the
interim periods may not be indicative of the results for the full year.
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these financial
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,
1996.
The Partnership reviews each of its property investments for possible impairment
at least annually, and more frequently if circumstances warrant. If this review
indicates that the carrying amount of the property may not be recoverable, the
Partnership estimates the future cash flows expected to result from the
operations of the property and its eventual sale. If the sum of these expected
future cash flows (undiscounted and without interest charges) is less than the
carrying amount of the property, it is written down to its estimated fair value.
The expected future cash flows used in this process rely upon estimates and
assumptions, including expense growth, occupancy, rental rates, and market
capitalization rates. The General Partners believe that the estimates and
assumptions used are appropriate. However, changes in market conditions and
circumstances may occur which would cause these estimates and assumptions to
change, resulting in revised cash flow projections. This, in turn, could lead to
future write-downs, which could be material. No write-downs for impairment have
been recorded as of June 30, 1997.
Certain reclassifications have been made to prior year amounts to conform with
current year's presentation.
6
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
June 30, 1997
(Unaudited)
Note 2 - Property and Equipment
The components of property and equipment are as follows:
June 30, December 31,
1997 1996
------------ ------------
Land $20,356,681 $20,356,681
Buildings and improvements 65,166,126 65,155,543
------------ ------------
85,522,807 85,512,224
Less: Accumulated depreciation (15,709,703) (14,841,244)
------------ ------------
$69,813,104 $70,670,980
============ ============
Amounts estimated to be recoverable from future operations and ultimate sales
were greater than the carrying value of each property owned at June 30, 1997 and
December 31, 1996. However, the carrying value of certain properties may be in
excess of their fair value as of such dates.
Note 3 - Related Party Transactions
The costs and expenses incurred to related parties for the three and six months
ended June 30, 1997 and 1996 were as follows:
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
1997 1996 1997 1996
------------------- -------------------
Expense reimbursement (a) $28,209 $22,715 $48,391 $92,308
Property management fees (b) 102,021 100,806 206,083 223,431
Leasing costs (c) 2,320 2,959 3,220 6,106
Insurance services (d) 8,041 5,632 16,082 11,407
-------- -------- -------- --------
$140,591 $132,112 $273,776 $333,252
======== ======== ======== ========
(a) The General Partners and their affiliates perform services for the
Partnership which include, but are not limited to: accounting and financial
management, registrar, transfer and assignment functions, asset management,
investor communications; printing and other administrative services. The amount
of reimbursement from the Partnership is limited by the provisions of the
Partnership agreement.
(b) The Partnership's eleven properties are being managed by RCC Property
Advisors, Inc. (the "Property Manager"), an affiliate of the Related General
Partner.
(c) Leasing costs, representing travel and other reimbursable expenses incurred,
are paid to the Property Manager in connection with the lease-up of vacant space
and lease renewals. In addition, capitalized leasing commissions paid to the
Property Manager for the six months ended June 30, 1997 and the year ended
December 31, 1996 were approximately $41,000 and $251,000 respectively.
(d) Four of the officers of the Related General Partner have ownership interests
in Multi-Family Program Inc., a company which has provided insurance services
for the properties.
7
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
June 30, 1997
(Unaudited)
Note 3 - Related Party Transactions (continued)
The distributions earned by the General Partners for the three and six months
ended June 30, 1997 and 1996 were as follows:
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
1997 1996 1997 1996
------------------- -------------------
Special Distributions $108,818 $108,818 $217,636 $217,636
Regular Distributions of Adjusted
Cash from Operations 9,091 9,091 18,182 18,182
-------- -------- -------- --------
$117,909 $117,909 $235,818 $235,818
======== ======== ======== ========
As of June 30, 1997 Prudential Securities Incorporated ("PSI"), an affiliate of
PBP, owns 33,760 BUC$.
Note 4 - Notes Payable
On August 9, 1994, House of Fabrics, Inc. ("House of Fabrics"), a tenant at
Winery Square Shopping Center ("Winery Square"), closed a $350,000 promissory
note ("the Note") with High Peak Corporation ("Lender"), a third party lender,
for tenant improvements at the tenant's location. It was an amortizing note
carrying a fixed interest rate of 12%, maturing on August 1, 1999 and with fixed
monthly payments in the amount of $7,786 due and payable on the first day of
each month. As required by the Lender, the Partnership guaranteed the payment of
all principal, interest, any additional interest and other sums of any nature
whatsoever which may have or should have become due and payable pursuant to the
provisions of the Note (the "Guarantee"). On November 3, 1994, House of Fabrics
filed under Chapter 11 of the Bankruptcy Code and pursuant to subsequent court
proceedings, certain of House of Fabrics' leases were rejected and those stores
were closed including the Winery Square location. Pursuant to such proceedings,
as of March 1996, the tenant ceased operations and rental payments with respect
to the Winery Square location. Management has pursued various proposals to
re-lease the space and is currently in negotiations with a replacement tenant
for most of the space. Pursuant to the terms of the Guarantee, the Partnership
continued to make payments to the Lender of amounts due under the Note and
payments were current through January 17, 1997, at which time the balance of the
loan was paid off as described below.
Together with the Lender, the Partnership also pursued a claim in the bankruptcy
proceedings for amounts due from House of Fabrics under the Note and the lease.
In December 1996, in accordance with the Order Confirming House of Fabrics'
Third Amended Plan of Reorganization dated May 23, 1996 (as modified) stock
certificates evidencing 15,251 shares and 13,910 shares of House of Fabrics
common stock were issued to the Lender and the Partnership, respectively,
against their allowed respective claims of $265,981 and $242,491. Under an
agreement with the Lender, the stock issued to the Lender was assigned to the
Partnership on January 17, 1997, the balance of the loan ($212,309) due the
Lender was paid-off and the Partnership was fully released under its Guarantee.
The stock is thinly traded but all 29,161 shares were sold as of February 28,
1997 for $5 per share, netting the Partnership $143,978 after brokerage
commissions and fees.
8
<PAGE>
SUMMIT INSURED EQUITY L.P.
(a limited partnership)
Notes to Financial Statements
June 30, 1997
(Unaudited)
Note 5 - Contingencies
Previous quarterly and annual reports by the Partnership have disclosed the
commencement and status of the putative class action captioned Kinnes et al. v.
Prudential Securities Group, Inc. et al. (CV-93-654) (D.Az.). This putative
class action was transferred, along with certain other cases, by the Judicial
Panel on Multidistrict Litigation to a single judge of the United States
District Court for the Southern District of New York (the "Court") for
consolidated and coordinated pre-trial proceedings under the caption In re
Prudential Securities Incorporated Limited Partnerships Litigation, MDL Docket
1005 (the "Class Action"). As previously disclosed in the last quarterly report,
the Related General Partner and certain of its affiliates entered, in December
1996, into a stipulation of settlement with counsel for plaintiffs to settle the
Class Action against the Related General Partner and certain of its affiliates
(the "Related Settlement").
On June 11, 1997, the Court issued orders that, inter alia, approved the
solicitation statement describing in detail the transactions contemplated
pursuant to the proposed Related Settlement, directed that it be mailed along
with the class notice to the members of the class and rescheduled the settlement
fairness hearing to consider the final approval of the Related Settlement for
August 28, 1997. In accordance with the Court's orders, the solicitation
statement and class notice were mailed to BUC$holders of the Partnership.
There can be no assurance that the conditions to the closing of the proposed
Related Settlement and Reorganization of the Partnership (as disclosed in
previous quarterly and annual reports and in the solicitation statement and
class notice) will be satisfied nor as to the time frame as to which the closing
may occur. In the event that the Related Settlement is not consummated, the
Related General Partner believes it has meritorious defenses to the Class Action
and intends to defend this action vigorously .
Note 6 - Subsequent Event
In August 1997, distributions of $900,001 and $9,091 were paid to the
BUC$holders and General Partners, respectively, from cash flow from operations
for the quarter ended June 30, 1997.
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Liquidity and Capital Resources
The Partnership's current primary source of funds is cash flow from operations
of eleven shopping centers.
During the six months ended June 30, 1997, cash and cash equivalents increased
by approximately $412,000. This increase is attributable to cash flow from
operations of $2,833,000, which exceeded debt payments of $302,000,
distributions of $2,036,000, improvements to property and equipment of $11,000
and leasing commissions of $72,000.
Future liquidity is expected to result from cash generated from the operations
of the properties, interest earned on the funds invested in short-term money
market instruments and ultimately through the sale or refinancing of the
properties. The Partnership anticipates that cash generated from operations will
provide sufficient liquidity to fund in future years the Partnership's operating
expenditures, debt service, future tenant and capital improvements and
distributions.
In August 1997, distributions of $900,001 and $9,091 were paid to the
BUC$holders and General Partners, respectively, from cash flow from operations
for the quarter ended June 30, 1997.
As more fully discussed in Results of Operations below, two anchor tenants
previously vacated their premises but continue to meet the terms of their lease,
including their rental payments.
For a discussion of the proposed settlement of the Class Action relating to the
Partnership, see Note 5 to the financial statements.
Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way. The Partnership's investments in properties are
diversified by location so that if one area of the country is experiencing
downturns in the economy, the remaining properties may be experiencing upswings.
However, the geographic diversification of the portfolio may not protect against
a general downturn in the national economy.
Results of Operations
Safeway, the anchor tenant of Cactus Village Shopping Center closed its facility
in December 1991 due to poor sales. However, the tenant continues to fully abide
by all aspects of its lease which will expire in September 2006. There have been
several proposals received for leasing this space, but as of August 14, 1997,
this space has not been re-leased.
In November 1995, Publix, the anchor tenant of Pablo Plaza Shopping Center in
Jacksonville, Florida, moved out of its space to a newer, larger space
approximately one mile away. Their lease expires in November 1998, and Publix
continues to abide by the terms of its lease, including rental payments. As of
August 14, 1997 , this space has not been re-leased. Management continues to
explore a variety of proposals to lease or sublease this space.
Net income decreased approximately $335,000 and increased approximately $303,000
for the three and six months ended June 30, 1997 as compared to 1996 for the
reasons discussed below.
10
<PAGE>
Revenues for the three and six months ended June 30, 1997 consisted primarily of
the results of the operations of the eleven shopping centers in which the
Partnership has invested. Rental income from these properties during the three
and six months ended June 30, 1997 increased approximately 1% and 2%,
respectively, as compared to 1996 primarily due to increases in occupancy at
Cactus Village and Highland as well as upward adjustments in 1997 and downward
adjustments in 1996 to prior year billings relating to certain tenants at Cactus
Village and Highland, respectively.
Recovery of common area maintenance charges increased approximately $22,000 and
$44,000 for the three and six months ended June 30, 1997 as compared to 1996
primarily due to an underaccrual of such charges at Hickory Plaza and Cactus
Village in 1996.
Real estate tax reimbursements increased approximately $43,000 and $86,000 for
the three and six months ended June 30, 1997 as compared to 1996 primarily due
to an underaccrual of reimbursements at Mountain View and Forest Park in 1996.
Interest income increased approximately $6,000 and $10,000 for the three and six
months ended June 30, 1997 as compared to 1996 primarily due to higher cash and
cash equivalents balances in 1997.
Other income increased approximately $18,000 and $27,000 for the three and six
months ended June 30, 1997 as compared to 1996 primarily due to an underaccrual
of insurance reimbursements at Winery Square in 1996.
General and administrative expenses-related parties decreased approximately
$59,000 for the six months ended June 30, 1997 as compared to 1996 primarily due
to an underaccrual of expense reimbursements to PSI at December 31, 1995 as well
as a decrease in property management fees at Cactus, Winery Square and Forest
Park in 1997.
Operating expenses decreased approximately $7,000 for the three months ended
June 30, 1997 as compared to 1996 primarily due to the payment, in 1996, of
prior years' utilities for a tenant at Kokomo for which the reimbursement, which
offset the expense, was accrued in the second quarter of 1997.
Repairs and maintenance increased approximately $75,000 for the six months ended
June 30, 1997 as compared to 1996 primarily due to the painting of the building
at Hickory and increases in landscaping expenses at Cactus Village, Winery
Square, Westbird and Pablo.
Bad debt expense increased approximately $438,000 for the three months ended
June 30, 1997 as compared to 1996 primarily due to an increase in reserves in
1997 at Winery Square, Cactus Village and Highland.
11
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
This information is incorporated by reference to Note 5 to the financial
statements filed herewith in Item 1 of Part I of the Registrant's Quarterly
Report.
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information
Thomas F. Lynch, III ceased to serve as President, Chief Executive Officer,
Chairman of the Board of Directors and Director of Prudential-Bache Properties,
Inc. effective May 2, 1997. Effective May 2, 1997, Brian J. Martin was elected
President, Chief Executive Officer, Chairman of the Board of Directors and
Director of Prudential-Bache Properties, Inc.
Solicitation information was mailed to BUC$holders in connection with the
proposed Related Settlement (see Note 5 to the financial statements filed
herewith in Item 1 of Part I of the Registrant's Quarterly Report).
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule (filed herewith).
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter.
12
<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.
SUMMIT INSURED EQUITY L.P.
By: RELATED INSURED EQUITY ASSOCIATES, INC.
General Partner
Date: August 13, 1997 By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Vice President
(Principal Financial Officer)
Date: August 13, 1997 By: /s/ Richard A. Palermo
----------------------
Richard A. Palermo
Treasurer
(Principal Accounting Officer)
By: PRUDENTIAL-BACHE PROPERTIES, INC.
General Partner
Date: August 13, 1997 By: /s/ Eugene D. Burak
-------------------
Eugene D. Burak
Vice President
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information extracted from the financial
statements for Summit Insured Equity L.P. and is qualified in its entirety by
reference to such financial statements
</LEGEND>
<CIK> 0000801440
<NAME> Summit Insured Equity L.P.
<MULTIPLIER> 1
<S> <C>
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<PERIOD-TYPE> 6-MOS
<CASH> 2,810,420
<SECURITIES> 0
<RECEIVABLES> 1,080,169
<ALLOWANCES> 335,967
<INVENTORY> 0
<CURRENT-ASSETS> 70,004
<PP&E> 85,522,807
<DEPRECIATION> 15,709,703
<TOTAL-ASSETS> 75,024,322
<CURRENT-LIABILITIES> 1,336,605
<BONDS> 5,263,509
0
0
<COMMON> 0
<OTHER-SE> 68,424,208
<TOTAL-LIABILITY-AND-EQUITY> 75,024,322
<SALES> 0
<TOTAL-REVENUES> 4,714,673
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,018,665
<LOSS-PROVISION> 84,974
<INTEREST-EXPENSE> 246,435
<INCOME-PRETAX> 1,364,599
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,364,599
<EPS-PRIMARY> .28
<EPS-DILUTED> 0
</TABLE>
