FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
QUARTERLY OR TRANSITIONAL REPORT
(As last amended by 34-32231, eff. 6/3/93.)
U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
(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, 1998
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 0-16684
MULTI-BENEFIT REALTY FUND '87-1
(Exact name of small business issuer as specified in its charter)
California 94-3026785
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Beattie Place
P. O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
Issuer's telephone number
Check whether the issuer (1) 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
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands, except unit data)
September 30, 1998
Assets
Cash and cash equivalents $ 1,143
Receivables and deposits 381
Restricted escrows 418
Other assets 256
Investment properties:
Land $ 1,742
Buildings and related personal property 22,529
24,271
Less accumulated depreciation (11,661) 12,610
$ 14,808
Liabilities and Partners' (Deficit) Capital
Liabilities
Accounts payable $ 147
Tenant security deposit liabilities 111
Accrued property taxes 347
Other liabilities 235
Mortgage notes payable 12,233
Partners' (Deficit) Capital
General Partner $ (136)
Limited Partner "A" Unit holders -
96,284 units issued and outstanding (2,061)
Limited Partner "B" Unit holders -
75,152 units issued and outstanding 3,932 1,735
$ 14,808
See Accompanying Notes to Consolidated Financial Statements
b)
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues:
Rental revenue $1,226 $1,182 $3,670 $3,513
Other income 88 89 244 244
Total revenues 1,314 1,271 3,914 3,757
Expenses:
Operating 621 609 1,705 1,696
General and administrative 58 101 193 229
Depreciation 257 252 765 733
Interest 249 251 748 753
Property taxes 90 89 265 272
Loss on disposal of property 23 86 23 86
Total expenses 1,298 1,388 3,699 3,769
Net income (loss) $ 16 $ (117) $ 215 $ (12)
Net income (loss) allocated
to general partners $ -- $ (1) $ 2 $ (--)
Net income (loss) allocated
to limited partners 16 (116) 213 (12)
$ 16 $ (117) $ 215 $ (12)
Net income (loss) per limited
partnership "A" and "B" units: $ 0.09 $ (.67) $ 1.24 $(0.07)
Distributions per limited
partnership "A" units $ 2.58 $ 7.07 $ 6.11 $14.16
See Accompanying Notes to Consolidated Financial Statements
c)
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
(Unaudited)
(in thousands, except unit data)
Total
General LIMITED PARTNERS Partners'
Partner "A" Units "B" Units Capital
Original capital contributions $ 1 $ 9,706 $ 7,538 $ 17,245
Limited partnership units at
December 31, 1997 and
September 30, 1998 -- 96,284 75,152 171,436
Partners' (deficit) capital at
December 31, 1997 $ (132) $(1,593) $ 3,839 $ 2,114
Distributions to partners (6) (588) -- (594)
Net income for the nine
months ended September 30, 1998 2 120 93 215
Partners' (deficit) capital at
September 30, 1998 $ (136) $(2,061) $ 3,932 $ 1,735
See Accompanying Notes to Consolidated Financial Statements
d)
MULTI-BENEFIT REALTY FUND '87-1
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Nine Months Ended
September 30,
1998 1997
Cash flows from operating activities:
Net income (loss) $ 215 $ (12)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation 765 733
Amortization of loan costs 47 47
Loss on disposal of property 23 86
Change in accounts:
Receivables and deposits (114) 80
Other assets 5 (14)
Accounts payable 42 (51)
Tenant security deposit liabilities (7) (17)
Accrued property taxes 76 85
Other liabilities 11 10
Net cash provided by operating activities 1,063 947
Cash flows from investing activities:
Property improvements and replacements (367) (442)
Net deposits to restricted escrows (46) (22)
Net cash used in investing activities (413) (464)
Cash flows from financing activities:
Loan costs paid -- (1)
Payments on mortgage notes payable (52) (48)
Distributions to partners (594) (1,377)
Net cash used in financing activities (646) (1,426)
Net increase (decrease) in cash and cash equivalents 4 (943)
Cash and cash equivalents at beginning of period 1,139 1,860
Cash and cash equivalents at end of period $1,143 $ 917
Supplemental disclosure of cash flow information:
Cash paid for interest $ 701 $ 706
See Accompanying Notes to Consolidated Financial Statements
e)
MULTI-BENEFIT REALTY FUND '87-1
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Multi-Benefit
Realty Fund '87-1 (the "Partnership") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of ConCap Equities, Inc. (the "General Partner"), all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three and nine month
periods ended September 30, 1998, are not necessarily indicative of the results
that may be expected for the fiscal year ending December 31, 1998. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Partnership's annual report on Form 10-KSB for the year
ended December 31, 1997.
Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.
Limited Partnership Units
The Partnership has issued two classes of Units, "A" Units and "B" Units. The
two classes of Units are entitled to different rights and priorities as to cash
distributions and partnership allocations. Both classes of Units represent
economic rights attributable to the limited partnership interests in the
Partnership and entitle the holders thereof ("Unit holders") to participate in
certain allocations and distributions of the Partnership.
NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all partnership activities.
The Partnership paid property management fees based upon collected gross rental
revenues for property management services as noted below for the nine month
periods ended September 30, 1998 and 1997, respectively. Such fees are included
in operating expense in the consolidated statements of operations and are
reflected in the following table. The Partnership Agreement provides for
reimbursement to the General Partner and its affiliates for certain costs
incurred in connection with the administration of Partnership activities. These
reimbursements are included in general and administrative and operating expense
and in investment properties.
The following transactions with the General Partner and/or its affiliates were
incurred during the nine months ended September 30:
1998 1997
(in thousands)
Property management fees $194 $185
Reimbursements for services of affiliates (1) 86 91
Partnership management fees (2) 53 123
(1)Included in "Reimbursements for services of affiliates" for the nine months
ended September 30, 1998 and 1997 is approximately $4,000 and $10,500,
respectively, in reimbursements for construction oversight costs. These
reimbursements are included in investment properties and operating expense.
(2)The Agreement provides for a fee equal to 9% of distributable cash from
operations (as defined in the Agreement) received by the limited partners be
paid to the General Partner for executive and administrative management
services. These fees are included in general and administrative expenses.
For the period of January 1, 1997 to August 31, 1997 the Partnership insured its
properties under a master policy through an agency affiliated with the General
Partner with an insurer unaffiliated with the General Partner. An affiliate of
the General Partner acquired, in the acquisition of a business, certain
financial obligations from an insurance agency, which was later acquired by the
agent who placed the master policy. The agent assumed the financial obligations
to the affiliate of the General Partner, which received payment on these
obligations from the agent. The amount of the Partnership's insurance premiums
accruing to the benefit of the affiliate of the General Partner by virtue of the
agent's obligations was not significant.
During December 1997, an affiliate of the General Partner (the "Purchaser")
commenced a tender offer for limited partnership interests in the Partnership.
The Purchaser offered to purchase up to 24,000 and 23,000 of the outstanding "A"
and "B" units, respectively, of limited partnership interest in the Partnership
at $50 and $25 per Unit, respectively, net to the seller in cash. During
February 1998 the tender offers were completed and the Purchaser acquired 21,457
and 13,822 of the outstanding "A" and "B" units, respectively, which represents
approximately 22% and 18% of the total outstanding "A" and "B" units,
respectively.
NOTE C - COMMITMENT
The Partnership is required by the Agreement to maintain working capital
reserves of not less than 5% of Net Invested Capital, as defined in the
Agreement. In the event expenditures are made from this reserve, operating
revenue shall be allocated to such reserve to the extent necessary to maintain
the foregoing level. Reserves, including cash and cash equivalents totaling
approximately $1,143,000, exceeded the reserve requirement of approximately
$759,000 at September 30, 1998.
NOTE D - DISTRIBUTIONS
The Partnership distributed cash from operations of approximately $588,000 and
$6,000 to the "A" unit limited partners and General Partner, respectively,
during the nine months ended September 30, 1998. Distributions of approximately
$1,363,000 and $14,000 were made to the "A" unit limited partners and General
Partner, respectively, during the nine months ended September 30, 1998.
NOTE E - TRANSFER OF CONTROL - SUBSEQUENT EVENT
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the General Partner. In addition, AIMCO also acquired approximately 51% of
the outstanding common shares of beneficial interest of Insignia Properties
Trust ("IPT"), the sole shareholder of the General Partner of the Partnership.
Also, effective October 1, 1998 IPT and AIMCO entered into an Agreement and plan
of Merger pursuant to which IPT is to be merged with and into AIMCO or a
subsidiary of AIMCO (the "IPT Merger"). The IPT Merger requires the approval of
the holders of a majority of the outstanding IPT Shares. AIMCO has agreed to
vote all of the IPT Shares owned by it in favor of the IPT Merger and has
granted an irrevocable limited proxy to unaffiliated representatives of IPT
to vote the IPT Shares acquired by AIMCO and its subsidiaries in favor of the
IPT Merger. As a result of AIMCO's ownership and its agreement, the vote of
no other holder of IPT is required to approve the merger. The General
Partner does not believe that this transaction will have a material effect on
the affairs and operations of the Partnership.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Partnership's investment properties consist of three apartment complexes.
The following table sets forth the average occupancy of the properties for each
of the nine months ended September 30, 1998 and 1997:
Average
Occupancy
Property 1998 1997
Carlin Manor Apartments
Columbus, Ohio (1) 92% 90%
Hunt Club Apartments
Indianapolis, Indiana (2) 96% 92%
Shadow Brook Apartments
West Valley City, Utah 96% 97%
(1)Although occupancy at Carlin Manor increased slightly, it remains subject to
market conditions affected by competition from new construction and first
time homebuyers due to favorable interest rates.
(2)The increase in occupancy at Hunt Club is attributable to incentive programs
offered during 1998.
The Partnership realized net income of approximately $215,000 for the nine
months ended September 30, 1998 as compared to a net loss of approximately
$12,000 for the nine months ended September 30, 1997. The Partnership realized
net income of approximately $16,000 for the three month period ended September
30, 1998 as compared to a net loss of approximately $116,000 for the three month
period ended September 30, 1997. The increase in net income for the three and
nine month periods ended September 30, 1998, is primarily attributable to an
increase in rental income due to increased rental rates at all of the
Partnership's investment properties. The incentive program offered at Hunt Club
Apartments did not have a material impact on rental income during 1998.
Additionally, improved occupancy at two of the Partnership's three properties,
as noted in the table above, contributed to the increase in rental income.
Also, contributing to the increase in net income are decreases in general and
administrative expense and in loss on property disposals. These decreases are a
result of lower management fees related to decreased distributions in 1998 and
major roof replacements in 1997, respectively. Partially offsetting the
increase in net income is an increase in depreciation expense. The increase in
depreciation expense is the result of the addition of approximately $494,000 of
capital improvements and replacements at the Partnership's properties over the
last twelve months.
Included in operating expense for the nine months ended September 30, 1998 is
approximately $71,000 of major repairs and maintenance comprised primarily of
parking lot repairs. Included in operating expense for the comparable period in
1997, is approximately $107,000 of major repairs and maintenance comprised
primarily of parking lot paving, landscaping costs, and window coverings.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of its investment properties to assess
the feasibility of increasing rents, maintaining or increasing occupancy levels
and protecting the Partnership from increases in expense. As part of this plan,
the General Partner attempts to protect the Partnership from the burden of
inflation-related increases in expenses by increasing rents and maintaining a
high overall occupancy level. However, due to changing market conditions, which
can result in the use of rental concessions and rental reductions to offset
softening market conditions, there is no guarantee that the General Partner will
be able to sustain such a plan.
At September 30, 1998, the Partnership had cash and cash equivalents of
approximately $1,143,000 as compared to approximately $917,000 at September 30,
1997. The net increase in cash and cash equivalents for the nine months ended
September 30, 1998 was approximately $4,000 compared to a net decrease of
approximately $943,000 for the nine months ended September 30, 1997. Net cash
provided by operating activities increased primarily due to the increase in net
income as discussed above. Also contributing to the increase in cash provided
by operations was an increase in accounts payable as a result of the timing of
payments. Partially offsetting the net increase in cash provided by operating
activities was an increase in receivables and deposits related to the timing of
cash receipts. Net cash used in investing activities decreased due to a
decrease in property improvements and replacements partially offset by an
increase in deposits to restricted escrows. Net cash used in financing
activities decreased due to a decrease in distributions to partners during the
nine months ended September 30, 1998, compared to the prior year.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the properties to adequately maintain the physical
assets and other operating needs of the Partnership and to comply with federal,
state and local legal and regulatory requirements. Such assets are currently
thought to be sufficient for any near-term needs of the Partnership. The
General Partner is currently assessing the need for capital
improvements at each of the Partnership's properties. To the extent that
additional capital improvements are required, the Partnership's distributable
cash flow, if any, may be adversely affected at least in the short term. The
mortgage indebtedness of approximately $12,233,000 is amortized over varying
periods and requires one balloon payment in October 2000 and two in November
2003. The General Partner will attempt to refinance such indebtedness or sell
the properties prior to such maturity dates. If the properties cannot be
refinanced or sold for a sufficient amount, the Partnership will risk losing
such properties through foreclosure. During the nine months ended September 30,
1998, distributions of approximately $588,000 and $6,000 were made to the "A"
Unit limited partners and the General Partner, respectively. Distributions of
approximately $1,363,000 and $14,000 were made to the "A" Unit limited partners
and the General Partner, respectively, during the nine months ended September
30, 1997. Future cash distributions will depend on the levels of net cash
generated from operations, refinancings, property sales, and the availability of
cash reserves. The Partnership's distribution policy will be reviewed on a
quarterly basis. There can be no assurance, however, that the Partnership will
generate sufficient funds from operations to permit further distributions to its
partners in 1998 or subsequent periods.
Transfer of Control - Subsequent Event
On October 1, 1998, Insignia Financial Group, Inc. completed its merger with and
into Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust, with AIMCO being the surviving corporation (the
"Insignia Merger"). As a result of the Insignia Merger, AIMCO acquired control
of the General Partner. In addition, AIMCO also acquired approximately 51% of
the outstanding common shares of beneficial interest of Insignia Properties
Trust ("IPT"), the sole shareholder of the General Partner of the Partnership.
Also, effective October 1, 1998 IPT and AIMCO entered into an Agreement and plan
of Merger pursuant to which IPT is to be merged with and into AIMCO or a
subsidiary of AIMCO (the "IPT Merger"). The IPT Merger requires the approval of
the holders of a majority of the outstanding IPT Shares. AIMCO has agreed to
vote all of the IPT Shares owned by it in favor of the IPT Merger and has
granted an irrevocable limited proxy to unaffiliated representatives of IPT to
vote the IPT Shares acquired by AIMCO and its subsidiaries in favor of the IPT
Merger. As a result of AIMCO's ownership and its agreement, the vote of no
other holder of IPT is required to approve the merger. The General
Partner does not believe that this transaction will have a material effect on
the affairs and operations of the Partnership.
Year 2000
GENERAL DESCRIPTION OF THE YEAR 2000 ISSUE AND THE NATURE AND EFFECTS OF THE
YEAR 2000 ON INFORMATION TECHNOLOGY (IT) AND NON-IT SYSTEMS
The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. The Partnership is
dependent upon the General Partner and its affiliates for management and
administrative services ("Managing Agent"). Any computer programs or hardware
that have date-sensitive software or embedded chips may recognize a date using
"00" as the year 1900 rather than the year 2000. This could result in a system
failure or miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send invoices, or
engage in similar normal business activities.
The Managing Agent has determined that it will be required to modify or replace
significant portions of its software and certain hardware so that those systems
will properly utilize dates beyond December 31, 1999. The Managing Agent
presently believes that with modifications or replacements of existing software
and certain hardware, the Year 2000 Issue can be mitigated. However, if such
modifications and replacements are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the Managing
Agent and the Partnership.
STATUS OF PROGRESS IN BECOMING YEAR 2000 COMPLIANT
The Managing Agent's plan to resolve the Year 2000 Issue involves the following
four phases: assessment, remediation, testing and implementation. To date, the
Managing Agent has fully completed its assessment of all information systems
that could be significantly affected by the Year 2000, and has begun the
remediation, testing and implementation phase on both hardware and software
systems. Assessments are continuing in regards to embedded systems in operating
equipment. The Managing Agent anticipates having all phases complete by June 1,
1999.
In addition to the areas the Partnership is relying on the Managing Agent to
verify compliance with, the Partnership has certain operating equipment,
primarily at the property sites, which needed to be evaluated for Year 2000
compliance. The focus of the General Partner was to the security systems,
elevators, heating-ventilation-air-conditioning systems, telephone systems and
switches, and sprinkler systems. The General Partner is currently engaged in the
identification of all non-compliant operational systems, and is in the process
of estimating the costs associated with any potential modifications or
replacements needed to such systems in order for them to be Year 2000 compliant.
It is not expected that such costs would have a material adverse affect upon
the operations of the Partnership.
RISK ASSOCIATED WITH THE YEAR 2000
The General Partner believes that the Managing Agent has an effective program in
place to resolve the Year 2000 issue in a timely manner and has appropriate
contingency plans in place for critical applications that could affect the
Partnership's operations. To date, the General Partner is not aware of any
external agent with a Year 2000 issue that would materially impact the
Partnership's results of operations, liquidity or capital resources. However,
the General Partner has no means of ensuring that external agents will be Year
2000 compliant. The General Partner does not believe that the inability of
external agents to complete their Year 2000 resolution process in a timely
manner will have a material impact on the financial position or results of
operations of the Partnership. However, the effect of non-compliance by
external agents is not readily determinable.
Other
Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Such forward-looking statements speak only as of the date
of this quarterly report. The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In March 1998, the Managing General Partner was named in a legal action entitled
ROSALIE NUANCES, ET AL. V. INSIGNIA FINANCIAL GROUP, INC., ET AL. in the
Superior Court of the State of California for the County of San Mateo. The
plaintiffs named as defendants, among others, the General Partner and several of
their affiliated partnerships and corporate entities. The complaint purports to
assert claims on behalf of a class of limited partners and derivatively on
behalf of a number of limited partnerships (including the Partnership) which are
named as nominal defendants, challenging the acquisition by Insignia Financial
Group, Inc. ("Insignia") and entities which were, at the time, affiliates of
Insignia ("Insignia Affiliates") of interests in certain general partner
entities, past tender offers by Insignia Affiliates to acquire limited
partnership units, the management of partnerships by Insignia Affiliates as well
as a recently announced agreement between Insignia and Apartment Investment and
Management Company. The complaint seeks monetary damages and equitable relief,
including judicial dissolution of the Partnership. On June 25, 1998, the
General Partner filed a motion seeking dismissal of the action. In lieu of
responding to the motion, plaintiffs have recently filed an amended complaint.
The General Partner has filed demurrers to the amended complaint which are
scheduled to be heard on January 8, 1999. The General Partner believes the
action to be without merit, and intends to vigorously defend it.
On July 30, 1998 certain entities claiming to own limited partnership interests
in certain limited partnerships whose general partners were, at the time,
affiliates of Insignia filed a complaint in the Superior Court of the State of
California, County of Los Angeles. The action, entitled EVEREST PROPERTIES LLC
V. INSIGNIA FINANCIAL GROUP, INC., involves 44 real estate limited partnerships
(including the Partnership) in which the plaintiffs allegedly own interests and
which Insignia Affiliates allegedly manage or control (the "Subject
Partnerships"). The complaint names as defendants Insignia, several Insignia
Affiliates alleged to be managing partners of the defendant limited
partnerships, the Partnership and the General Partner. Plaintiffs allege that
they have requested from, but have been denied by each of the Subject
Partnerships, lists of their respective limited partners for the purpose of
making tender offers to purchase up to 4.9% of the limited partner units of each
of the Subject Partnerships. The complaint also alleges that certain of the
defendants made tender offers to purchase limited partner units in many of the
Subject Partnerships, with the alleged result that plaintiffs have been deprived
of the benefits they would have realized from ownership of the additional units.
The plaintiffs assert eleven causes of action, including breach of contract,
unfair business practices, and violations of the partnership statutes of the
states in which the Subject Partnerships are organized. Plaintiffs seek
compensatory, punitive and treble damages. The General Partner filed an answer
to the complaint on September 15, 1998. The General Partner believes the claims
to be without merit and intends to defend the action vigorously.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature. The General Partner believes that all such other
matters are adequately covered by insurance and will be resolved without a
material adverse effect upon the business, financial condition, results of
operations, or liquidity of the Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
report.
b) Reports on Form 8-K :
None filed for the quarter ended September 30, 1998.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MULTI-BENEFIT REALTY FUND '87-1
By: CONCAP EQUITIES, INC.
General Partner
By: /s/Patrick Foye
Patrick Foye
Executive Vice President
By: /s/Timothy R. Garrick
Timothy R. Garrick
Vice President - Accounting
(Duly Authorized Officer)
Date: November 12, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Multi-Benefit Realty Fund '87-1 1998 Third Quarter 10-QSB and is
qualified in its entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000802200
<NAME> MULTI-BENEFIT REALTY FUND '87-1
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 1,143
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 24,271
<DEPRECIATION> 11,661
<TOTAL-ASSETS> 14,808
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 12,233
0
0
<COMMON> 0
<OTHER-SE> 1,735
<TOTAL-LIABILITY-AND-EQUITY> 14,808
<SALES> 0
<TOTAL-REVENUES> 3,914
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,699
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 748
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 215
<EPS-PRIMARY> 1.24<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
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