<PAGE>
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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 31, 1999
--------------
Commission file number 0-16856
-------
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
(Exact name of registrant as specified in its charter)
DELAWARE 13-3368726
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
411 West Putnam Avenue, Suite 270, Greenwich, CT 06830
(Address of principal executive offices)
(203) 862-7444
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by checkmark 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
----
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<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
FORM 10-Q - MARCH 31, 1999
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
BALANCE SHEETS - March 31, 1999 and December 31, 1998 ........... 1
STATEMENTS OF INCOME - For the three months ended March 31,
1999 and 1998 .............................................. 2
STATEMENT OF PARTNERS' EQUITY - For the three months ended
March 31, 1999 ............................................. 3
STATEMENTS OF CASH FLOWS - For the three months ended
March 31, 1999 and 1998 .................................... 4
NOTES TO FINANCIAL STATEMENTS ................................... 5-11
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS ......................... 12-13
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS ........................................... 14
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K ............................ 14
SIGNATURES................................................................ 15
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
------------ ------------
ASSETS
<S> <C> <C>
Investments in mortgage loans (net of allowance for loan losses of
$1,915,000 and $11,733,380 at March 31, 1999 and
December 31, 1998, respectively) $ 16,216,033 $ 17,016,033
Cash and cash equivalents 3,971,561 2,992,413
Other receivable 11,383 10,761
------------ ------------
$ 20,198,977 $ 20,019,207
============= ============
LIABILITIES AND PARTNERS' EQUITY
Liabilities
Accounts payable and accrued expenses $ 215,412 $ 94,992
Commitments and contingencies
Partners' equity
Limited partners' equity (187,919 units
issued and outstanding) 19,484,001 19,426,135
General partners' equity 499,564 498,080
------------ ------------
Total partners' equity 19,983,565 19,924,215
------------ ------------
$ 20,198,977 $ 20,019,207
============= ============
</TABLE>
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
STATEMENTS OF INCOME
For the three months ended
March 31,
-------------------------------
1999 1998
------------ ------------
[S] [C] [C]
Revenues
Short term investment interest $ 32,095 $ 36,834
Other income 46,070 5,700
----------- -----------
78,165 42,534
----------- -----------
Costs and expenses
General and administrative expenses 18,815 24,497
----------- -----------
Net income $ 59,350 $ 18,037
=========== ===========
Net income attributable to
Limited partners $ 57,866 $ 17,586
General partners 1,484 451
----------- -----------
$ 59,350 $ 18,037
=========== ===========
Net income per unit of limited partnership
interest (187,919 units outstanding) $ .31 $ .09
=========== ===========
See notes to financial statements. 2
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
STATEMENT OF PARTNERS' EQUITY
General Limited Total
Partners' Partners' Partners'
Equity Equity Equity
---------- ------------- -------------
Balance, January 1, 1999 $ 498,080 $ 19,426,135 $ 19,924,215
Net income for the three months
ended March 31, 1999 1,484 57,866 59,350
--------- ------------ ------------
Balance, March 31, 1999 $ 499,564 $ 19,484,001 $ 19,983,565
========= ============ ============
See notes to financial statements. 3
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the three months ended
March 31,
----------------------------
1999 1998
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities
Net income $ 59,350 $ 18,037
Changes in assets and liabilities
Other receivable (622) (78)
Accounts payable and accrued expenses 120,420 5,680
-------- -----
Net cash provided by operating activities 179,148 23,639
-------- ------
Cash flows from investing activities
Payments received from sale of mortgage loan, net 800,000 -
----------- -----------
Net increase in cash and cash equivalents 979,148 23,639
Cash and cash equivalents, beginning of period 2,992,413 2,908,425
----------- -----------
Cash and cash equivalents, end of period $ 3,971,561 $ 2,932,064
============ ===========
</TABLE>
See notes to financial statements. 4
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
FORM 10-Q - MARCH 31, 1999
1 INTERIM FINANCIAL INFORMATION
The summarized financial information contained herein is unaudited;
however, in the opinion of management, all adjustments (consisting only
of normal recurring accruals) necessary for a fair presentation of such
financial information have been included. The accompanying financial
statements, footnotes and discussions should be read in conjunction
with the financial statements, related footnotes and discussions
contained in the Resources Accrued Mortgage Investors 2 L.P. (the
"Partnership") annual report on Form 10-K for the year ended December
31, 1998. The results of operations for the three months ended March
31, 1999, are not necessarily indicative of the results to be expected
for the full year.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investments in mortgage loans
The Partnership principally invested in zero coupon senior and junior
mortgage loans on properties owned or acquired by limited partnerships
originally sponsored by affiliates of the General Partners. These loans
generally contain provisions whereby the Partnership may be entitled to
additional interest represented by participation in the appreciation of
the underlying property.
The Partnership accounts for its investments in mortgage loans under
the following methods:
Investment method
Mortgage loans representing transactions in which the Partnership
is considered to have substantially the same risks and potential
rewards as the borrower are accounted for as investments in real
estate rather than as loans. Although the transactions are
structured as loans, due to the terms of the zero coupon mortgage,
it is not readily determinable at inception that the borrower will
continue to maintain a minimum investment in the property. Under
this method of accounting, the Partnership will recognize as
revenue the lesser of the amount of interest as contractually
provided for in the mortgage loan, or its pro rata share of the
actual cash flow from operations of the underlying property
inclusive of depreciation and interest expense on any senior
indebtedness.
Interest method
Under this method of accounting, the Partnership recognizes revenue
as interest income over the term of the mortgage loan so as to
produce a constant periodic rate of return. Interest income will
not be recognized as revenue during periods where there are
concerns about the ultimate realization of the interest or loan
principal.
Allowance for loan losses
An allowance for loan losses is established based upon a periodic
review of each of the mortgage loans in the Partnership's portfolio. In
performing this review, management considers the estimated net
realizable value of the mortgage loan or collateral as well as other
factors, such as the current occupancy, the amount and status of any
senior debt, the prospects for the
5
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
FORM 10-Q - MARCH 31, 1999
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Allowance for loan losses (continued)
property and the economic situation in the region where the property is
located. Because this determination of net realizable value is based
upon projections of future economic events which are inherently
subjective, the amounts ultimately realized at disposition may differ
materially from the carrying value as of March 31, 1999.
The allowance is inherently subjective and is based upon management's
best estimate of current conditions and assumptions about expected
future conditions. The Partnership may provide for additional losses in
subsequent periods and such provisions could be material.
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES
The Managing General Partner of the Partnership, RAM Funding, Inc. and
the Associate General Partner, Presidio AGP Corp. are wholly-owned
subsidiaries of Presidio Capital Corp. ("Presidio"). The General
Partners and certain affiliates of the General Partners, are general
partners in several other limited partnerships which are also
affiliated with Presidio, and which are engaged in businesses that are,
or may be in the future, in direct competition with the Partnership.
Subject to the rights of the Limited Partners under the Limited
Partnership Agreement, Presidio controls the Partnership through its
indirect ownership of the General Partners. On August 28, 1997, an
affiliate of NorthStar Capital Partners acquired all of the Class B
shares of Presidio. This acquisition, when aggregated with previous
acquisitions, caused NorthStar Capital Partners to acquire indirect
control of the General Partners. Effective July 31, 1998, Presidio is
indirectly controlled by NorthStar Capital Investment Corp.
("NorthStar"), a Maryland Corporation.
Presidio entered into a management agreement with NorthStar Presidio
Management Company LLC ("NorthStar Presidio"), an affiliate of
NorthStar. Under the terms of the management agreement, NorthStar
Presidio provides the day-to-day management of Presidio and its direct
and indirect subsidiaries and affiliates. For the quarter ended March
31, 1999 the Partnership did not incur any reimbursable expenses and
for the quarter ended March 31, 1998, reimbursable expenses due to
NorthStar amounted to $1,000.
As of March 31, 1999, an affiliate of Presidio has acquired 17.385
units of limited partnership interest of the Partnership. These units
represent 9.3% of the issued and outstanding limited partnership units.
The General Partners are allocated 2.5% of the net income or loss of
the Partnership and are entitled to 2.5% of distributions. The 2.5%
shall be apportioned 98% to the Managing General Partner and 2% to the
Associate General Partner. For the quarters ended March 31, 1999 and
1998, the Managing General Partner and Associate General Partner were
allocated net income of $1,454 and $30 and $442 and $9, respectively.
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES
The Partnership invested in zero-coupon, nonrecourse senior and junior
mortgage loans. Collection of the amounts due on the Partnership's
junior mortgage loans is solely dependent upon the sale or refinancing
of the underlying properties at amounts sufficient to satisfy the
6
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
FORM 10-Q - MARCH 31, 1999
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)
Partnership's mortgage notes after payment of the senior mortgage notes
owned by unaffiliated third parties.
The Partnership currently has two outstanding mortgage loans.
Certain of the Partnership's mortgage notes contain a provision which
require the borrowers to provide current appraisals based upon certain
conditions or in some cases upon request.
The Partnership has prepared an internal valuation for the property
owned by High Cash Partners, L.P. ("High Cash"). This loan contains a
provision which requires that if an appraisal indicates the value of
all indebtedness senior to and including the Partnership's loan, taking
into account principal plus accrued interest in excess of 5% per annum,
exceeds 85% of the then current appraisal, the borrower must repay the
indebtedness to a point where the 85% loan to value ratio is restored.
Based upon an internal valuation, management does not believe that the
loan to value ratio has been exceeded.
Harborista Loan
A $10,000,000 second mortgage loan (`the Harborista Loan") to
Harborista Associates, L.P. was secured by an office building, commonly
known as the Harbor Plaza, located in Boston, Massachusetts (the
"Harbor Plaza"). The Harborista Loan was funded on February 13, 1989
and bore interest at the rate of 13.307% per annum, compounded monthly
and was originally due to mature on December 1, 1998, at which time a
balloon payment of approximately $36,000,000 would have been due and
payable. Harbor Plaza was also encumbered by a first mortgage loan in
the original amount of $24,475,000 held by Northwestern Mutual Life
Insurance Co. ("Northwestern"). The first mortgage was due to mature on
December 1, 1995, but was extended until January 1, 1999.
During 1993 management determined that interest on the Harborista Loan
should cease to accrue and that an allowance for loan losses was
necessary for the entire carrying value of the Harborista Loan which
amounted to $10,618,380.
On February 9, 1999, Northwestern filed a motion for foreclosure on its
mortgage.
On March 30, 1999, the Partnership sold its interest in the Harborista
Loan to an unaffiliated third party for gross proceeds of approximately
$1,000,000, exclusive of legal and other costs related to the
transaction of approximately $200,000. Accordingly, the Partnership
recorded $800,000 of recovery of loan losses with respect to the sale
of this loan as of December 31, 1998.
7
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
FORM 10-Q - MARCH 31, 1999
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)
Twin Oak loan
The Partnership holds a $1,200,000 second mortgage on the Twin Oak
property. The first mortgage on this property, which is held by an
unaffiliated third party, was due to mature on July 1, 1993. However,
during 1993, the mortgage loan was extended for three years until July
1, 1996. For the period between July 1996 and October 1997, the Twin
Oak borrower continued to make reduced mortgage payments to the first
mortgage lender in anticipation of a loan extension or modification.
During October 1997, the Twin Oak borrower and its first mortgage
lender formally agreed to extend the maturity date of the first
mortgage until July 1, 1998. In order for the Twin Oak borrower to
consummate this loan extension, the consent of the Partnership was
required. The Partnership agreed to consent on the condition that the
Twin Oak borrower either refinance both the first mortgage and the
Partnership's mortgage on or before July 1, 1998 or give the
Partnership a deed-in-lieu of foreclosure to the Twin Oak property. It
was the intention of the general partners of Twin Oak to sell the
property prior to the July 1, 1998 extended maturity date.
The property was marketed for sale, and Twin Oak entered into a formal
contract of sale with an unaffiliated third party in May of 1998. On
July 1, the first mortgage matured and was not repaid. However, the
purchaser failed to perform on this contract in August of 1998. The
property was again marketed for sale. On October 20, 1998, a formal
agreement was executed in which the first mortgage lender again agreed
to extend the maturity of the loan to July 1, 1999 in exchange for a
modification to the interest rate and payment of an extension fee. On
October 15, 1998, a new contract for sale was executed with Emmes
Ventures ("Emmes"), an affiliate of NorthStar, also an affiliate of the
general partners of Twin Oak and the Partnership.
During the year ended 1996, a provision for loan losses of $1,515,000
was recorded on the Twin Oak loan. A $400,000 allowance for loan losses
was recorded during 1998 to reduce the carrying value of the loan to
the estimated amount anticipated to be received by the Partnership
under the terms outlined in this new contract.
On March 1, 1999, the Twin Oak property was sold to Emmes for a gross
purchase price of approximately $4,150,000 (subject to customary
adjustments at closing). The Twin Oak borrower used the proceeds from
the sale to repay the first mortgage holder and on May 5, 1999, the
Partnership received approximately $237,000 representing the carrying
value of the Twin Oak loan.
8
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
FORM 10-Q - MARCH 31, 1999
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)
Summary of mortgage activity is as follows:
<TABLE>
<CAPTION>
Three months ended Year ended
March 31, 1999 December 31, 1998
------------------------------------- -------------------------------------
Investment Interest Investment Interest
Method Method Total Method Method Total
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Opening balance $ 800,000 $16,216,033 $17,016,033 $ - $16,616,033 $16,616,033
Recovery of (provision for)
loan losses - - - 800,000 (400,000) 400,000
Payments received, net (800,000) - (800,000) - - -
----------- ----------- ----------- ---------- ----------- -----------
Ending balance $ - $16,216,033 $16,216,033 $ 800,000 $16,216,033 $17,016,033
=========== =========== =========== =========== =========== ===========
</TABLE>
9
<PAGE>
RESOURCES ACCRUED MORTGAGE INVESTORS 2 L.P.
NOTES TO FINANCIAL STATEMENTS
4 INVESTMENTS IN MORTGAGE LOANS AND ALLOWANCE FOR LOAN LOSSES (continued)
Information with respect to the Partnership's mortgage loans is as
follows:
<TABLE>
<CAPTION>
Original Mortgage Mortgage
Interest Compound Loan Maturity Amount Purchased
Description Rate % Period Type Date Date Advanced Interest
- ------------- ---------- -------- ------ ----- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Office Building
Harbor Plaza 13.307 Monthly 2nd 13-Feb-89 1-Dec-98 $ 10,000,000 $ 23,513
Boston, Mass (a) (e)
Shopping Centers
Sierra Marketplace (b) (c) 11.220 Monthly 1st 10-Feb-89 28-Feb-01 6,500,000 -
Reno, Nevada
Twin Oak (b) (f) 12.280 Annually 2nd 3-Apr-90 1-May-02 1,200,000 -
------------ --------
Ft. Lauderdale, Florida
$ 17,700,000 $ 23,513
============ ========
</TABLE>
<TABLE>
<CAPTION>
Interest recognized Carrying value
Mortgage -------------------------- -----------------------------
Placement March 31, 1998 and Reserves/ March 31, December 31,
Description Fees 1999 Prior Write-offs 1999 1998
- ------------- ---------- --------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Office Building
Harbor Plaza $ 594,867 $ - $ - $ - $ - $ 800,000
Boston, Mass (a) (e)
Shopping Centers
Sierra Marketplace (b) (c) 385,757 - 9,093,598 - 15,979,355 15,979,355
Reno, Nevada
Twin Oak (b) (f) 71,218 - 880,460 (1,915,000) 236,678 236,678
----------- --------- ----------- ----------- ------------ ------------
Ft. Lauderdale, Florida
$ 1,051,842 $ - $ 9,974,058 $ (1,915,000) $ 16,216,033 $ 17,016,033
=========== ========= =========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Contractual balance(d)
-----------------------------
March 31, December 31,
Description 1999 1998
- ------------- --------- -----------
<S> <C> <C>
Office Building
Harbor Plaza $ - $ 36,985,751
Boston, Mass (a) (e)
Shopping Centers
Sierra Marketplace (b) (c) 20,155,762 19,600,802
Reno, Nevada
Twin Oak (b) (f) 3,386,627 3,293,255
------------ ------------
Ft. Lauderdale, Florida
$ 23,542,389 $ 59,879,808
============ ============
</TABLE>
(a) This loan is accounted for under the investment method.
(b) These loans are accounted for under the interest method.
(c) The Partnership may be entitled to additional interest in the
appreciation of the property which is subordinated to a specified return
to the borrower. It is unlikely that the Partnership will realize any
additional interest from this loan.
(d) Contractual balance represents the amount that would be paid by the
borrower if the loan was liquidated (principal plus accrued interest
earned to date).
(e) This mortgage loan was repaid during the quarter ended March 31, 1999.
(f) On May 5, 1999, this loan was repaid.
10
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership initially invested the net proceeds of its public
offering in four zero coupon first and junior mortgage loans
aggregating $23,300,000. These loans are secured by properties owned
principally by privately and publicly syndicated limited partnerships
originally sponsored by affiliates of the general partners. The
Partnership currently has investments in two of these four mortgage
loans with outstanding balances of approximately $7,700,000 in
principal.
As of March 31, 1999, the Partnership had working capital reserves of
approximately $3,767,000. Working capital reserves are invested in
short-term instruments and are expected to be sufficient to pay
administrative expenses during the term of the Partnership. The
Partnership does not anticipate making any distributions from cash flow
during its first 8 to 12 years of operations, or until such time as the
mortgage loans mature or are prepaid.
On March 1, 1999, the Twin Oak Property was sold to Emmes Ventures, an
affiliate of NorthStar for a gross purchase price of approximately
$4,150,000 (subject to customary adjustments at closing). The Twin Oak
Borrower used the proceeds from the sale to repay the first mortgage to
Southern Life Mortgage and on May 5, 1999, the Partnership received
approximately $237,000 representing the carrying value of the Twin Oak
loan.
On March 30, 1999, the Partnership sold its interest in the Harborista
Loan to an unaffiliated third party for gross proceeds of approximately
$1,000,000, exclusive of legal and other costs related to the
transaction of approximately $200,000. As of December 31, 1998, the
Partnership recorded $800,000 of recovery of loan losses with respect
to this sale.
Results of operations
Net income increased for the three month period ended March 31, 1999 as
compared to the same period in 1998. The increase was principally due
to an increase in other income as a result of increase transfer fee
income and a decrease in general and administrative expenses, offset by
a decrease in short-term investment interest.
Costs and expenses decreased for the three month period ended March 31,
1999 as compared to the corresponding period in 1998 due to a decrease
in general and administrative expenses.
Inflation has not had a material effect on the Partnership's recent
operations or financial condition and is not expected to have a
material effect in the future.
Year 2000 compliance
The Year 2000 compliance issue concerns the inability of computerized
information systems and equipment to accurately calculate, store or use
a date after December 31, 1999, as a result of the year being stored as
a two digit number. This could result in a system failure or
miscalculations causing disruptions of operations. The Partnership and
NorthStar Presidio recognize the importance of ensuring that its
business operations are not disrupted as a result of Year 2000 related
computer system and software issues.
NorthStar Presidio is in the process of assessing its internal computer
information systems and is taking the steps necessary to remediate
these systems so that they will be Year 2000 compliant. In connection
therewith, NorthStar Presidio has installed a new fully compliant
accounting and reporting system.
11
<PAGE>
Year 2000 compliance (continued)
Because this assessment is ongoing, the total cost of bringing all
systems and equipment into Year 2000 compliance has not been fully
quantified. Based upon available information, NorthStar Presidio does
not believe that these costs will have a material adverse effect on the
Partnership's business, financial condition or results. However, it is
possible that there could be adverse consequences to the Partnership as
a result of Year 2000 issues that are outside the Partnership's
control.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
(a) None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None.
(b) Reports on Form 8-K: None.
13
<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.
RESOURCES ACCRUED MORTGAGE
INVESTORS 2 L.P.
By: RAM Funding, Inc.
Managing General Partner
By: /s/ Allan B. Rothschild
--------------------------------
Allan B. Rothschild
President
By: /s/ Lawrence Schachter
--------------------------------
Lawrence R. Schachter
Senior Vice President (Principal
Financial Officer and Principal
Accounting Officer)
Dated: May 12, 1999
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 3,971,561
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,982,944
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 20,198,977
<CURRENT-LIABILITIES> 215,412
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 19,983,565
<TOTAL-LIABILITY-AND-EQUITY> 20,198,977
<SALES> 0
<TOTAL-REVENUES> 78,165
<CGS> 0
<TOTAL-COSTS> 18,815
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 59,350
<INCOME-TAX> 0
<INCOME-CONTINUING> 59,350
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 59,350
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
