SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A-1
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
- - --- ACT OF 1934
For the quarterly period ended March 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- - --- EXCHANGE ACT OF 1934
Commission File Number 0-16816
SUMMIT TAX EXEMPT L.P. III
-------------------------------------------------------
(Exact names of registrant as specified in its charter)
<TABLE>
<S> <C>
Delaware 13-3442249
- - -------------------------------------------------------------- -----------------------------------
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
625 Madison Avenue, New York, New York 10022
- - -------------------------------------------------------------- -----------------------------------
(Address of principal executive offices) (Zip Code)
</TABLE>
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 - FINANCIAL INFORMATION
Item 1. Financial Statements
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
----------- -------------
<S> <C> <C>
ASSETS
Participating first mortgage bonds-at fair value $46,686,585 $46,686,585
Temporary investments 225,000 250,000
Cash and cash equivalents 408,602 347,908
Interest receivable, net 132,128 132,128
Deferred bond selection fees, net 714,279 729,686
Other assets 0 4,209
----------- -----------
Total assets $48,166,594 $48,150,516
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 93,841 $ 77,880
Due to affiliates 192,778 43,427
----------- -----------
Total liabilities 286,619 121,307
----------- -----------
Contingencies
Partners' capital (deficit):
BUC$holders (3,081,625 BUC$
issued and outstanding) 49,310,678 49,456,927
General partners (167,288) (164,303)
Net unrealized loss on participating
first mortgage bonds (1,263,415) (1,263,415)
----------- -----------
Total partners' capital 47,879,975 48,029,209
----------- -----------
Total liabilities and partners' capital $48,166,594 $48,150,516
=========== ===========
</TABLE>
See accompanying notes to financial statements
-2-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------
1996 1995
--------- ---------
<S> <C> <C>
Revenues:
Interest income:
Participating first mortgage bonds $699,417 $875,937
Temporary investments 3,314 6,036
-------- --------
Total revenues 702,731 881,973
-------- --------
Expenses:
General and administrative 46,690 47,442
Loan servicing fees 32,691 32,332
Amortization of deferred bond selection fees 15,407 15,408
-------- --------
Total expenses 94,788 95,182
-------- --------
Net income $607,943 $786,791
======== ========
Allocation of Net Income:
BUC$holders $531,709 $707,683
======== ========
General Partners:
Special distribution $ 65,383 $ 64,665
Other 10,851 14,443
-------- --------
$ 76,234 $ 79,108
======== ========
Net income per BUC $ .17 $ .23
======== ========
</TABLE>
See accompanying notes to financial statements
-3-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
Net Unrealized
Loss on Participating
Total BUC$holders General Partners First Mortgage Bonds
----------- ----------- ---------------- ----------------------
<S> <C> <C> <C> <C>
Partners' capital (deficit) -
January 1, 1996 $48,029,209 $49,456,927 $ (164,303) $(1,263,415)
Net income 607,943 531,709 76,234 0
Distributions (757,177) (677,958) (79,219) 0
----------- ----------- ----------- -----------
Partners' capital (deficit) -
March 31, 1996 $47,879,975 $49,310,678 $ (167,288) $(1,263,415)
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements
-4-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------
1996 1995
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Interest received $ 702,731 $ 865,472
Amount received which is due to affiliate 39,517 0
Fees and expenses paid (14,760) (47,989)
--------- ---------
Net cash provided by operating activities 727,488 817,483
--------- ---------
Cash flows from investing activities:
Net sale (purchase) of temporary investments 25,000 (159,104)
Cash flows from financing activities:
Distributions paid (691,794) (691,793)
---------- ---------
Net increase (decrease) in cash and cash equivalents 60,694 (33,414)
Cash and cash equivalents at beginning of period 347,908 75,950
---------- ---------
Cash and cash equivalents at end of period $ 408,602 $ 42,536
========== =========
Schedule reconciling net income to net cash flow
provided by operating activities:
Net income $ 607,943 $ 786,791
---------- ---------
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of deferred bond selection fees 15,407 15,408
Changes in:
Interest receivable 0 (16,501)
Other assets 4,209 5,323
Accounts payable and accrued expenses 15,961 (16,599)
Due to affiliates 83,968 43,061
---------- ---------
Total adjustments 119,545 30,692
---------- ---------
Net cash provided by operating activities $ 727,488 $ 817,483
========== =========
Supplemental schedule of financing activities
Distributions to partners $ 757,177 $ 756,458
Increase in distributions payable (65,383) (64,665)
---------- ---------
Distributions paid to partners $ 691,794 $ 691,793
========== =========
</TABLE>
See accompanying notes to financial statements
-5-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 1 - General
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 Summit Tax Exempt L.P. III (the "Partnership") as of
March 31, 1996 and the results of its operations and its cash flows for the
three months ended March 31, 1996 and 1995. However, the operating results for
the interim periods may not be indicative of the results expected for the full
year.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted. It is suggested that these financial statements be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K/A-1 filed with the Securities and
Exchange Commission for the year ended December 31, 1995.
NOTE 2 - Participating First Mortgage Bonds ("FMBs")
Pursuant to a review of the Partnership's financial statements by
the SEC staff in 1996 and in accordance with others in the industry, the
Partnership agreed that it will account for its investments in the FMBs as debt
securities under the provisions of Statement of Financial Accounting Standards
No. 115, "Accounting for Certain Investments in Debt and Equity Securities"
("SFAS 115") effective January 1, 1994, and has restated its financial
statements for the quarter ended March 31, 1996 and the year ended December 31,
1995 to reflect this change in accounting treatment.
The change in accounting treatment does not affect cash flow or
payments received by the Partnership from the properties, level of distribution
to BUC$Holders, the tax-exempt nature of the Partnership's net income or the
obligation under the FMBs.
The Partnership has a right to require redemption of the FMBs
approximately twelve years after their issuance. The Partnership anticipates
holding the FMBs for approximately 12 to 15 years from the date of issuance;
however, it can elect to hold until maturity. As such, SFAS 115 requires the
Partnership to classify these investments as "available for sale." Accordingly,
investments in FMBs are carried at their estimated fair values, with unrealized
gains and losses reported in a separate component of partners' capital. This
accounting resulted in cumulative net unrealized losses of approximately
$1,263,000 at March 31, 1996 and December 31, 1995. Again, unrealized holding
gains or losses do not affect the cash flow generated from property operations,
distributions to BUC$holders, the characterization of the tax-exempt income
stream or the financial obligations under the FMBs.
The Partnership periodically evaluates each FMB to determine
whether a decline in fair value below the FMB's cost basis is other than
temporary. Such a decline is considered to be other than temporary if, based on
current information and events, it is probable that the Partnership will be
unable to collect all amounts due according to the existing contractual terms of
the bonds. If the decline is judged to be other than temporary, the cost basis
of the bond is written down to its then estimated fair value, with the amount of
the write-down accounted for as realized loss.
Because the FMBs are not readily marketable, the Partnership
estimates fair value for each bond as the present value of its expected cash
flows using an interest rate for comparable tax-exempt investments. This process
is based upon projections of future economic events affecting the real estate
collateralizing the bonds, such as
-6-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 2 - Participating First Mortgage Bonds (continued)
property occupancy rates, rental rates, operating cost inflation and market
capitalization rates, and upon determination of an appropriate market rate of
interest, all of which are based on good faith estimates and assumptions
developed by the Partnership's management. Changes in market conditions and
circumstances may occur which would cause these estimates and assumptions to
change, therefore, actual results may vary from the estimates and the variance
may be material.
With respect to all FMBs, the difference between the stated
interest rates and the actual rates paid (whether deferred and payable out of
future cash flow or, ultimately, from sale or refinancing proceeds) on FMBs is
not accrued for financial statement purposes. Unrecorded contractual interest
income was approximately $195,000 and $243,000 for the three months ended March
31, 1996 and 1995, respectively.
The cost basis of the FMBs was $47,950,000 at March 31, 1996 and
December 31, 1995. The net unrealized loss on FMBs consists of gross unrealized
gains and losses of $488,045 and $1,751,460, respectively, at March 31, 1996 and
December 31, 1995.
-7-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 2 - Participating First Mortgage Bonds (continued)
Descriptions of the FMBs owned by the Partnership at March 31,
1996 are as follows:
<TABLE>
<CAPTION>
Annualized
Interest Rate
Paid for the Minimum
three months Annual Carrying
ended Pay Rate Stated Amount
March 31, at March Interest Maturity at March
Property Location 1996* 31, 1996* Rate* Call Date Date Face Amount 31, 1996 (C)
- - -------- -------- ----------- --------- ------ --------- --------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Players's Club (A) Fort Myers, FL 7.00% 7.00% 8.00% Aug. 1999 Aug. 2007 $ 7,200,000 $ 7,383,769
Lakepointe Stone Mountain, GA 6.00 6.00 8.50 Jan. 2000 Oct. 2007 15,100,000 14,886,559
Sunset Village Lancaster, CA 4.28 (B) 8.50 Mar. 2000 Mar. 2008 11,375,000 9,178,214
Sunset Creek Lancaster, CA 3.35 (B) 8.50 Mar. 2000 Mar. 2008 8,275,000 5,933,767
Orchard Mill Atlanta, GA 6.29 (B) 9.00 Apr. 2001 May 2009 10,500,000 9,304,276
----------- -----------
$52,450,000 $46,686,585
=========== ===========
</TABLE>
*The rate paid represents the interest recorded by the Partnership while the
stated rate represents the coupon rate of the FMB and the minimum pay rate
represents the minimum rate required to be paid under the respective forbearance
agreements.
(A) Summit Tax Exempt L.P. II, of which the general partners are either the
same or affiliates of the General Partners of the Partnership, acquired the
other $2,500,000 of the Player's Club FMB.
(B) Pay rate is based on net cash flow generated by operations of the underlying
property.
(C) The FMBs are carried at their estimated fair market values at March 31,
1996.
-8-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 3 - Related Parties
Prudential-Bache Properties, Inc. ("PBP") and the Related General
Partner (collectively, 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 General Partners and their affiliates receive reimbursements for costs
incurred in connection with these services, the amount of which is limited by
the provisions of the Agreement of Limited Partnership (the "Partnership
Agreement"). The costs and expenses were:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------
1996 1995
--------- ---------
<S> <C> <C>
PBP and affiliates:
General and administrative $15,112 $15,493
------- -------
Related General Partner and affiliates:
Loan servicing fees 32,691 32,332
General and administrative 15,000 2,993
------- -------
47,691 35,325
------- -------
$62,803 $50,818
======= =======
</TABLE>
An affiliate of the Related General Partner receives loan
servicing fees (see above) in an amount of .25% per annum of the principal
amount outstanding of mortgage loans serviced by the affiliate.
A division of Prudential Securities Incorporated ("PSI"), an
affiliate of PBP, was responsible for the purchase, sale and safekeeping of the
Partnership's temporary investments in 1995. This account was maintained in
accordance with the Partnership Agreement.
PSI owns 17,700 BUC$ at March 31, 1996.
The Player's Club property (securing a $7,200,000 FMB in this
Partnership) also secures an FMB for $2,500,000 held by Summit Tax Exempt L.P.
II, of which the general partners are either the same or affiliates of the
General Partners of this Partnership. The original owner of the FMB is an
affiliate of the Related General Partner.
NOTE 4 - Contingencies
On or about October 18, 1993, a putative class action, captioned
Kinnes et al v. Prudential Securities Group, Inc. et al. (93 Civ. 654), was
filed in the United States District Court for the District of Arizona,
purportedly on behalf of investors in the Partnership against the Partnership,
PBP, PSI and a number of other defendants. On November 16, 1993, a putative
class action captioned Connelly et al v. Prudential-Bache Securities Inc. et al.
(93 Civ. 713) , was filed in the United States District Court for the District
of Arizona , purportedly on behalf of investors in the Partnership against the
Partnership, PBP, PSI and a number of other defendants. On January 3, 1992, a
putative class action, captioned Levine v. Prudential-Bache Properties Inc. et
al. (92 Civ. 52), was filed in the United States District Court for the Northern
District of Illinois purportedly on behalf of investors in the Partnership
against the General Partners, PSI and a number of other defendants. Subsequently
the Related General Partner exited the Levine litigation by way of settlement.
-9-
<PAGE>
SUMMIT TAX EXEMPT L.P. III
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(Unaudited)
NOTE 4 - Contingencies (continued)
By its April 14, 1994 order, the Judicial Panel on Multidistrict
Litigation transferred the Kinnes case, by order dated May 4, 1994, the Connelly
case, and by order dated July 13, 1994, the Levine Case, to a single judge of
the United States District Court for the Southern District of New York and
consolidated them for pretrial proceedings under the caption In re Prudential
Securities Incorporated Limited Partnerships Litigation (MDL Docket No. 1005).
On June 8, 1994 plaintiffs in the transferred cases filed a complaint that
consolidated the previously filed complaints and named as defendants, among
others, PSI, certain of its present and former employees and the General
Partners. The Partnership was not named a defendant in the consolidated
complaint, but the name of the Partnership was listed as being among the limited
partnerships at issue in the case.
On August 9, 1995 PBP, PSI and other Prudential defendants entered
into a Stipulation and Agreement of Partial Compromise and Settlement with legal
counsel representing plaintiffs in the consolidated actions. The court
preliminarily approved the settlement agreement by order dated August 29, 1995
and, following a hearing held November 17, 1995, found that the agreement was
fair, reasonable, adequate and in the best interests of the plaintiff class. The
court gave final approval to the settlement, certified a class of purchasers of
specific limited partnerships, including the Partnership, released all settled
claims by members of the class against the PSI settling defendants and
permanently barred and enjoined class members from instituting, commencing or
prosecuting any settled claim against the released parties. The full amount due
under the settlement agreement has been paid by PSI. The consolidated action
remains pending against the Related General Partner and certain of its
affiliates.
The Related General Partner has been engaged in settlement
negotiations with counsel for the plaintiffs. In the event a settlement can not
be reached, the Related General Partner believes it has meritorious defenses to
the consolidated complaint and intends to vigorously defend against this action.
NOTE 5 - Subsequent Event
In May 1996, a distribution of approximately $678,000 and $14,000
was paid to the BUC$holders and General Partners, respectively, for the quarter
ended March 31, 1996.
-10-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
Summit Tax Exempt L.P. III (the "Partnership") has invested in
five tax-exempt participating first mortgage bonds ("FMBs") issued by various
state or local governments or their agencies or authorities. The FMBs are
secured by participating first mortgage loans on the properties.
At the beginning of the year, the Partnership had cash and
temporary investments of $598,000. After the payment of distributions and
receipt of the net cash flow from operations, the Partnership ended the quarter
with $634,000 in cash and temporary investments. The first quarter distribution
of $678,000 ($.22 per BUC) was paid to BUC$holders in May 1996 from cash flow
from operations. Interest payments from FMBs are anticipated to provide
sufficient liquidity to meet the operating expenditures of the Partnership in
future years and to fund distributions. The restructuring of FMBs in 1995 may
result in the General Partners' reducing the distributions to BUC$holders in
future periods.
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 FMBs are
secured by a Partnership interest in properties which 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.
Results of Operations
Pursuant to a review of the Partnership's financial statements by
the SEC staff in 1996 and in accordance with others in the industry, the
Partnership agreed that it will account for its investments in the FMBs as debt
securities under the provisions of Statement of Financial Accounting Standards
No. 115, "Accounting for Certain Investments in Debt and Equity Securities"
("SFAS 115") effective January 1, 1994, and has restated its financial
statements for the quarter ended March 1996 and the year ended December 31, 1995
to reflect this change in accounting treatment.
The change in accounting treatment does not affect cash flow or
payments received by the Partnership from the properties, level of distribution
to BUC$Holders, the tax-exempt nature of the Partnership's net income or the
obligation under the FMBs.
The Partnership has a right to require redemption of the FMBs
approximately twelve years after their issuance. The Partnership anticipates
holding the FMBs for approximately 12 to 15 years from the date of issuance;
however, it can elect to hold until maturity. As such, SFAS 115 requires the
Partnership to classify these investments as "available for sale." Accordingly,
investments in FMBs are carried at their estimated fair values, with unrealized
gains and losses reported in a separate component of partners' capital. This
accounting resulted in cumulative net unrealized losses of approximately
$1,263,000 at March 31, 1996 and December 31, 1995. Again, unrealized holding
gains or losses do not affect the cash flow generated from property operations,
distributions to BUC$holders, the characterization of the tax-exempt income
stream or the financial obligations under the FMBs.
The Partnership periodically evaluates each FMB to determine
whether a decline in fair value below the FMB's cost basis is other than
temporary. Such a decline is considered to be other than temporary if, based on
current information and events, it is probable that the Partnership will be
unable to collect all amounts due according to the existing contractual terms of
the bonds. If the decline is judged to be other than temporary, the cost basis
of the bond is written down to its then estimated fair value, with the amount of
the write-down accounted for as realized loss.
Because the FMBs are not readily marketable, the Partnership
estimates fair value for each bond as the present value of its expected cash
flows using an interest rate for comparable tax-exempt investments. This process
is based upon projections of future economic events affecting the real estate
collateralizing the bonds, such as property occupancy rates, rental rates,
operating cost inflation and market capitalization rates, and upon
-11-
<PAGE>
determination of an appropriate market rate of interest, all of which are based
on good faith estimates and assumptions developed by the Partnership's
management. Changes in market conditions and circumstances may occur which would
cause these estimates and assumptions to change, therefore, actual results may
vary from the estimates and the variance may be material.
Net income decreased by approximately $179,000 for the three
months ended March 31, 1996 as compared to the corresponding period in 1995 for
the reasons discussed below.
Total interest income from FMBs decreased by approximately
$177,000 for the three months ended March 31, 1996 as compared to the
corresponding period in 1995. This variance was primarily due to reduced debt
service payments received for the Sunset Village and Sunset Creek FMBs, which
were restructured in 1995.
Interest income from temporary investments decreased by
approximately $3,000 for the three months ended March 31, 1996 as compared to
the corresponding period 1995 primarily due to higher interest rates and
invested balances in 1995.
Total expenses remained fairly constant for the three months ended
March 31, 1996 as compared to the corresponding period in 1995 with less than a
1% decrease.
Property Information
The following table lists the FMBs the Partnership owns together
with occupancy rates of the underlying properties as of April 12, 1996:
<TABLE>
<CAPTION>
Annualized
Interest
Rate Paid Minimum
for the three Annual
Stated months ended Pay Rate at
Interest March 31, March 31,
Property Face Amount Occupancy Rate* 1996* 1996*
- - -------- ----------- --------- -------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Player's Club, Fort Myers, FL (A) $ 7,200,000 89.4% 8.00% 7.00% 7.00%
Lakepointe, Stone Mountain, GA 15,100,000 99.2 8.50 6.00 6.00
Sunset Village, Lancaster, CA 11,375,000 84.2 8.50 4.28 (B)
Sunset Creek, Lancaster, CA 8,275,000 87.9 8.50 3.35 (B)
Orchard Mill, Atlanta, CA 10,500,000 98.7 9.00 6.29 (B)
-----------
$52,450,000
===========
</TABLE>
*The rate paid represents the interest recorded by the Partnership while the
stated rate represents the coupon rate of the FMB and the minimum pay rate
represents the minimum rate required to be paid under the respective forbearance
agreements.
(A) Summit Tax Exempt L.P. II, of which the general partners are either the
same or affiliates of the General Partners of the Partnership, acquired the
other $2,500,000 of the Player's Club FMB.
(B) Pay rate is based on net cash flow generated by operations of the underlying
property.
-12-
<PAGE>
General
The determination as to whether it is the best interest of the
Partnership to enter into forbearance agreements on the FMBs or, alternatively,
to pursue its remedies under the loan documents, including foreclosure, is based
upon several factors including, but not limited to, property performance, owner
cooperation and projected legal costs.
From time to time, certain property owners have elected to
supplement the cash flow generated by the properties to meet the required FMB
interest payments. There can be no assurance that in the future any property
owner will elect to supplement property cash flow to satisfy bond interest
requirements, if necessary. The owner of the Sunset Village and Sunset Creek
properties supplemented the cash flow generated by the respective properties to
meet their interest payments during the first four months of 1995. No property
owner made supplementary payments during the three months ended March 31, 1996.
-13-
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - Incorporated by reference to Note 4 to the
financial statements filed herewith in Item 1 of Part 1 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 - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
4(a) Partnership Agreement, incorporated by reference to
Exhibit A to the Prospectus of Registrant, dated
February 25, 1987, filed pursuant to Rule 424(b) under the
Securities Act of 1933, File No. 33-13184.
4(b) Certificate of Limited Partnership is incorporated by
reference to Exhibit 4 to the Registration Statement on
Form S-11, File No. 33-13184.
27 Financial Data Schedule (filed herewith).
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter.
-14-
<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 TAX EXEMPT L.P. III
By: Related Tax Exempt Associates III, Inc.
A Delaware corporation, General Partner
Date: August 13, 1996 By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Vice President
Date: August 13, 1996 By: /s/ Lawrence J. Lipton
----------------------
Lawrence J. Lipton
Treasurer
(Principal Financial and Accounting Officer)
By: Prudential-Bache Properties, Inc.
A Delaware corporation, General Partner
Date: August 13, 1996 By: /s/ Eugene D. Burak
-------------------
Eugene D. Burak
Vice President
-16-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for Summit Tax Exempt L.P. III and is
qualified in its entirety by reference to such
financial statements
</LEGEND>
<CIK> 0000812220
<NAME> Summit Tax Exempt L.P. III
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> MAR-31-1996
<CASH> 408,602
<SECURITIES> 46,911,585
<RECEIVABLES> 846,407
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 48,166,594
<CURRENT-LIABILITIES> 286,619
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 47,879,975
<TOTAL-LIABILITY-AND-EQUITY> 48,166,594
<SALES> 0
<TOTAL-REVENUES> 702,731
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 94,788
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 607,943
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 607,943
<EPS-PRIMARY> .17
<EPS-DILUTED> 0
</TABLE>
