FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
X Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended June 30, 1996 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: 0-17582
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Delaware 47-0719051
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
Suite 400, 1004 Farnam Street, Omaha, Nebraska 68102
(Address of principal executive offices) (Zip Code)
(402) 444-1630
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES X NO
<PAGE> - i -
Part I. Financial Information
Item 1. Financial Statements
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, 1996 Dec. 31, 1995
-------------- --------------
<S> <C> <C>
Assets
Cash and temporary cash investments, at cost which
approximates market value $ 1,845,201 $ 1,813,499
Investment in mortgage-backed securities (Note 5) 8,910,698 9,361,640
Investment in preferred real estate participations (PREPs),
net of valuation allowance (Note 6) - -
Interest receivable 61,470 64,454
Other assets 46,798 49,375
-------------- --------------
$ 10,864,167 $ 11,288,968
============== ==============
Liabilities and Partners' Capital
Liabilities
Accounts payable (Note 7) $ 44,047 $ 58,676
Distribution payable (Note 4) 208,240 213,157
-------------- --------------
252,287 271,833
-------------- --------------
Partners' Capital
General Partner 100 100
Beneficial Unit Certificate Holders
($11.71 per BUC in 1996 and $12.16 in 1995) 10,611,780 11,017,035
-------------- --------------
10,611,880 11,017,135
-------------- --------------
$ 10,864,167 $ 11,288,968
============== ==============
</TABLE>
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
For the For the For the Six For the Six
Quarter Ended Quarter Ended Months Ended Months Ended
June 30, 1996 June 30, 1995 June 30, 1996 June 30, 1995
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Income
Mortgage-backed securities income $ 168,964 $ 183,019 $ 338,523 $ 368,597
Equity in earnings of property partnerships 2,573 1,716 42,727 37,997
Interest income on temporary cash investments 21,908 20,986 45,531 40,817
--------------- --------------- --------------- ---------------
193,445 205,721 426,781 447,411
Expenses
General and administrative expenses (Note 7) 46,850 44,468 91,805 89,084
--------------- --------------- --------------- ---------------
Net income $ 146,595 $ 161,253 $ 334,976 $ 358,327
=============== =============== =============== ===============
Net income allocated to:
General Partner $ 3,145 $ 3,294 $ 6,328 $ 6,626
BUC Holders 143,450 157,959 328,648 351,701
--------------- --------------- --------------- ---------------
$ 146,595 $ 161,253 $ 334,976 $ 358,327
=============== =============== =============== ===============
Net income per BUC $ .16 $ .18 $ .36 $ .39
=============== =============== =============== ===============
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE> - 1 -
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
STATEMENT OF PARTNERS' CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Beneficial Unit
General Certificate
Partner Holders Total
-------------- ---------------- ---------------
<S> <C> <C> <C>
Partners' Capital (excluding net unrealized holding (gains) losses)
Balance at December 31, 1995 $ 100 $ 10,994,431 $ 10,994,531
Net income 6,328 328,648 334,976
Cash distributions paid or accrued (Note 4) (6,328) (626,481) (632,809)
-------------- ---------------- ---------------
100 10,696,598 10,696,698
-------------- ---------------- ---------------
Net unrealized holding (gains) losses
Balance at December 31, 1995 - 22,604 22,604
Net change - (107,422) (107,422)
-------------- ---------------- ---------------
- (84,818) (84,818)
-------------- ---------------- ---------------
Balance at June 30, 1996 $ 100 $ 10,611,780 $ 10,611,880
============== ================ ===============
</TABLE>
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Six For the Six
Months Ended Months Ended
June 30, 1996 June 30, 1995
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities
Net income $ 334,976 $ 358,327
Adjustments to reconcile net income to net cash
provided by operating activities
Equity in earnings of property partnerships (42,727) (37,997)
Amortization of discount on mortgage-backed securities (5,254) (4,659)
Decrease in interest receivable 2,984 1,252
Decrease in other assets 2,577 2,552
Decrease in accounts payable (14,629) (5,611)
--------------- ---------------
Net cash provided by operating activities 277,927 313,864
Cash flows from investing activities
Mortgage principal payments received 348,774 371,060
Distributions received from PREPs 42,727 37,997
--------------- ---------------
Net cash provided by investing activities 391,501 409,057
Cash flow used in financing activity
Distributions paid (637,726) (776,368)
--------------- ---------------
Net increase (decrease) in cash and temporary cash investments 31,702 (53,447)
Cash and temporary cash investments at beginning of period 1,813,499 1,551,380
--------------- ---------------
Cash and temporary cash investments at end of period $ 1,845,201 $ 1,497,933
=============== ===============
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE> - 2 -
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
1. ORGANIZATION
America First PREP Fund 2 Pension Series Limited Partnership (the Partnership)
was formed on February 2, 1988, under the Delaware Revised Uniform Limited
Partnership Act for the purpose of acquiring a portfolio of federally-insured
multifamily mortgages and other investments including preferred real estate
participations (PREPs). PREPs consist of equity interests which are intended
to provide the Partnership with a participation in the net cash flow and net
sale or refinancing proceeds of the properties collateralizing the mortgage
loans. The Partnership began operations with the first escrow closing on May
25, 1988, and will continue in existence until December 31, 2017, unless
terminated earlier under the provisions of the Partnership Agreement. The
General Partner of the Partnership is America First Capital Associates Limited
Partnership Six (AFCA 6).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Financial Statement Presentation
The financial statements of the Partnership are prepared without audit on
the accrual basis of accounting in accordance with generally accepted
accounting principles. The financial statements should be read in
conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the year ended December
31, 1995. In the opinion of management, all normal and recurring
adjustments necessary to present fairly the financial position at June
30, 1996, and results of operations for all periods presented have been
made.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
B) Investment in Mortgage-Backed Securities
Investment securities are classified as held-to-maturity,
available-for-sale, or trading. Investments classified as
held-to-maturity are carried at amortized cost. Investments classified as
available-for-sale are reported at fair value with any unrealized gains or
losses excluded from earnings and reflected as a separate component of
partners' capital. Subsequent increases and decreases in the net
unrealized gain/loss on the available-for-sale securities are reflected as
adjustments to the carrying value of the portfolio and adjustments to the
component of partners' capital. The Partnership does not have investment
securities classified as trading.
C) Investment in PREPs
The investment in PREPs consists of interests in limited partnerships
which own properties underlying the mortgage-backed securities and are
accounted for using the equity method. PREPs are not insured or
guaranteed. The value of these investments is a function of the value of
the real estate underlying the PREPs. The investments have been reduced to
zero and earnings are recorded to the extent that distributions are
received.
D) Allowance for Losses on Investments in PREPs
The allowance for losses on investments in PREPs is a valuation reserve
which has been established at a level that management feels is adequate to
absorb potential losses on investments in PREPs. The allowance is based
on management's best estimate of the net realizable value of such
properties; however, the ultimate realized values may vary from these
estimates. The allowance is periodically reviewed and adjustments are
made to the allowance when there are significant changes in the estimated
net realizable value of the properties underlying the PREPs.
<PAGE> - 3 -
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
E) Income Taxes
No provision has been made for income taxes since Beneficial Unit
Certificate (BUC) Holders are required to report their share of the
Partnership's income for federal and state income tax purposes.
F) Temporary Cash Investments
Temporary cash investments are invested in short-term debt securities
purchased with an original maturity of three months or less.
G) Net Income Per BUC
Net income per BUC has been calculated based on the number of BUCs
outstanding (905,974) for all periods presented.
3. PARTNERSHIP RESERVE ACCOUNT
The Partnership maintains a reserve account which consisted of the following
at June 30, 1996:
<TABLE>
<S> <C>
Cash and temporary cash investments $ 1,657,621
GNMA Certificates 1,590,802
FNMA Certificates 1,222,750
---------------
$ 4,471,173
===============
</TABLE>
The reserve account was established to maintain working capital for the
Partnership and is available for distribution to BUC Holders and for any
contingencies related to Permanent Investments and the operation of the
Partnership. See Note 5 regarding the investment in mortgage-backed
securities.
4. PARTNERSHIP INCOME, EXPENSES AND CASH DISTRIBUTIONS
The Partnership Agreement contains provisions for distributing the cash
available for distribution and for the allocation of income and expenses for
tax purposes among AFCA 6 and BUC Holders.
Cash distributions included in the financial statements represent the actual
cash distributions made during each period, and the cash distributions accrued
at the end of each period.
5. INVESTMENT IN MORTGAGE-BACKED SECURITIES
The mortgage-backed securities held by the Partnership represent Government
National Mortgage Association (GNMA) Certificates and Federal National
Mortgage Association (FNMA) Certificates. The GNMA Certificates are backed by
first mortgage loans on multifamily housing properties and pools of
single-family properties. The FNMA Certificates are backed by pools of
single-family properties. The GNMA Certificates are debt securities issued by
a private mortgage lender and are guaranteed by GNMA as to the full and timely
payment of principal and interest on the underlying loans. The FNMA
Certificates are debt securities issued by FNMA and are guaranteed as to the
full and timely payment of principal and interest on the underlying loans.
At June 30, 1996 the total amortized cost, gross unrealized holding gains,
gross unrealized holding losses, and aggregate fair value of
available-for-sale securities are $2,898,370, $17,640, $102,458 and $2,813,552,
respectively. The total amortized cost, gross unrealized holding gains, gross
unrealized holding losses, and aggregate fair value of held-to-maturity
securities are $6,097,146, $145,367, $289,214 and $5,953,299, respectively.
<PAGE> - 4 -
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
Descriptions of the Partnership's mortgage-backed securities at June 30,
1996, are as follows:
<TABLE>
<CAPTION>
Number Interest Maturity Carrying
Type of Security and Name Location of Units Rate Date Amount
---------------------------------- -------------------- -------- -------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Held-to-Maturity
GNMA Certificates:
Ashwood Apartments Tulsa, OK 144 9.25% 07/15/23 $ 558,705
Broadmoor Court Colorado Springs, CO 46 9.25% 10/15/29 582,609
Owings Chase Apartments Pikesville, MD 234 6.75% 12/15/23 3,213,492
Pools of single-family properties 8.74%(1) 2016 to 2018 1,742,340
--------------
6,097,146
--------------
Available-for-Sale
GNMA Certificates:
Pools of single-family properties 6.03%(1) 2008 804,444(2)
Pools of single-family properties 7.58%(1) 2008 786,358(2)
FNMA Certificates:
Pools of single-family properties 5.52%(1) 2000 1,222,750(2)
---------------
2,813,552
---------------
Balance at June 30, 1996 $ 8,910,698
===============
</TABLE>
(1) Represents yield to the Partnership.
(2) Reserve account asset - see Note 3.
Reconciliation of the carrying amount of the mortgage-backed securities is as
follows:
<TABLE>
<S> <C>
Balance at December 31, 1995 $ 9,361,640
Addition
Amortization of discount on mortgage-backed securities 5,254
Deductions
Mortgage principal payments received (348,774)
Net unrealized holding losses on available-for-sale securities (107,422)
---------------
Balance at June 30, 1996 $ 8,910,698
===============
</TABLE>
6. INVESTMENT IN PREPs
The Partnership's PREPs consist of interests in limited partnerships which own
multifamily properties financed by the Partnership. The limited partnership
agreements originally provided for the payment of a base return on the equity
provided to the limited partnerships and for the payment of additional amounts
out of a portion of the net cash flow or net sale or refinancing proceeds of
the properties subject to various priority payments. Certain of the
agreements have been amended to defer payment of the base return.
<PAGE> - 5 -
AMERICA FIRST PREP FUND 2 PENSION SERIES LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
Descriptions of the PREPs at June 30, 1996, are as follows:
<TABLE>
<CAPTION>
Carrying
Name Location Partnership Name Amount
-------------------------- -------------------- ----------------------------- -----------------
<S> <C> <C> <C>
Broadmoor Court Colorado Springs, CO Stazier Associates Colorado Springs, Ltd. $ 53,547
Owings Chase Apartments Pikesville, MD Owings Chase Limited Partnership 150,000
Ashwood Apartments Tulsa, OK 129th Street Limited Partnership -
Laurel Park Apartments Riverdale, GA Gold Key Venture -
-----------------
203,547
Less valuation allowance (203,547)
-----------------
Balance at June 30, 1996 $ -
=================
</TABLE>
Reconciliation of the carrying amount of the PREPs is as follows:
<TABLE>
<S> <C>
Balance at December 31, 1995 $ -
Addition
Equity in earnings of property partnerships 42,727
Deduction
Distributions received from PREPs (42,727)
-----------------
Balance at June 30, 1996 $ -
=================
</TABLE>
7. TRANSACTIONS WITH RELATED PARTIES
Substantially all the Partnership's general and administrative expenses are
paid by AFCA 6 or an affiliate and reimbursed by the Partnership. The amount
of such expenses reimbursed to AFCA 6 during 1996 was $86,792 ($32,952 for the
quarter ended June 30, 1996). The reimbursed expenses are presented on a cash
basis and do not reflect accruals made at quarter end.
AFCA 6 is entitled to an administrative fee of .35% per annum of the
outstanding principal amounts invested in mortgage-backed securities, PREPs,
and temporary cash investments to be paid by the Partnership to the extent
such amount is not paid by property owners. During 1996, AFCA 6 earned
administrative fees of $13,974 ($6,946 for the quarter ended June 30, 1996).
Of this amount, $12,814 ($6,366 for the quarter ended June 30, 1996) was paid
by the Partnership and the remainder was paid by property owners.
The general partner of the property partnership which owns Owings Chase
Apartments is principally owned by an employee of an affiliate of AFCA 6.
Such employee has a nominal interest in the affiliate. Affiliates of AFCA 6
also own small interests in the general partner. The general partner has a
nominal interest in the property partnership's profits, losses and cash flow
which is subordinate to the interest of the Partnership. The general partner
did not receive cash distributions from the property partnership in 1996.
An affiliate of AFCA 6 has been retained to provide property management
services for Laurel Park Apartments and Owings Chase Apartments. The fees for
services provided represent the lower of (i) costs incurred in providing
management of the property, or (ii) customary fees for such services
determined on a competitive basis and amounted to $19,131 ($9,535 for the
quarter ended June 30, 1996).
<PAGE> - 6 -
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The Partnership originally acquired: (i) five mortgage-backed securities
guaranteed as to principal and interest by the Government National Mortgage
Association (GNMA) collateralized by first mortgage loans on multifamily
housing properties located in four states, GNMA Certificates backed by pools
of single-family mortgages (the GNMA Certificates); and (ii) limited
partnership interests (PREPs) in five limited partnerships which own the
multifamily housing properties financed by the GNMA Certificates. The
Partnership has been repaid by GNMA on the mortgage-backed securities
collateralized by the Villages at Moonraker and Laurel Park Apartments.
During the second quarter of 1995, the Partnership withdrew as a limited
partner of the operating partnership which owns the Villages at Moonraker.
Therefore, the Partnership no longer has an equity interest in this property.
The Partnership continues to hold its equity interest in Laurel Park
Apartments. Collectively, the remaining GNMA Certificates and the PREPs are
referred to as the Permanent Investments.
The following table shows the occupancy levels of the properties financed by
the Partnership at June 30, 1996.
<TABLE>
<CAPTION>
Number Percentage
Number of Units of Units
Property Name Location of Units Occupied Occupied
- ------------------------------------- ------------------ --------- ---------- -----------
<S> <C> <C> <C> <C>
Ashwood Apartments Tulsa, OK 144 138 96%
Broadmoor Court Colorado Springs, CO 46 45 98%
Laurel Park Apartments Riverdale, GA 387 376 97%
Owings Chase Apartments Pikesville, MD 234 222 95%
--------- ---------- -----------
811 781 96%
========= ========== ===========
</TABLE>
Distributions
Cash distributions paid or accrued per Beneficial Unit Certificate (BUC) were
as follows:
<TABLE>
<CAPTION>
For the Six For the Six
Months Ended Months Ended
June 30, 1996 June 30, 1995
-------------- --------------
<S> <C> <C>
Regular monthly distributions
Income $ .3628 $ .3882
Return of Capital .3288 .3359
-------------- --------------
$ .6916 $ .7241
============== ==============
Distributions
Paid out of cash flow (including mortgage principal payments) $ .6916 $ .7241
============== ==============
</TABLE>
Regular monthly distributions to investors consist primarily of interest and
principal received on GNMA and Federal National Mortgage Association (FNMA)
Certificates. Additional cash for distributions is received from PREPs and
temporary cash investments. The Partnership may draw on reserves to pay
operating expenses or to supplement cash distributions to BUC Holders. The
Partnership is permitted to replenish its reserves through the sale or
refinancing of assets. During the six months ended June 30, 1996, a net
amount of $50,941 ($27,938 for the quarter ended June 30, 1996) of
undistributed mortgage principal payments was placed in reserves. The total
amount held in reserves at June 30, 1996, was $4,471,173 of which $2,813,552
was invested in GNMA and FNMA Certificates.
<PAGE> - 7 -
The Partnership believes that cash provided by operating and investing
activities and, if necessary, withdrawals from the Partnership's reserves will
be adequate to meet its short-term and long-term liquidity requirements,
including the payments of distributions to BUC Holders. Under the terms of
the Partnership Agreement, the Partnership has the authority to enter into
short-term and long-term debt financing arrangements; however, the Partnership
currently does not anticipate entering into such arrangements. The
Partnership is not authorized to issue additional BUCs to meet short-term and
long-term liquidity requirements.
Asset Quality
The Partnership continues to receive the full amount of monthly principal and
interest payments on its GNMA and FNMA Certificates. The GNMA and FNMA
Certificates are fully guaranteed as to principal and interest by GNMA and
FNMA respectively. The obligations of GNMA are backed by the full faith and
credit of the United States government.
PREPs, however, are not insured or guaranteed. The value of these investments
is a function of the value of the real estate underlying the PREPs. It is the
policy of the Partnership to make a periodic review of the real estate
underlying the PREPs in order to establish, when necessary, a valuation
reserve on the investment in PREPs. The allowance for losses on investment in
PREPs is based on the fair value of the properties underlying the PREPs. The
fair value of the properties underlying the PREPs is based on management's
best estimate of the net realizable value of such properties; however, the
ultimate realized values may vary from these estimates. The allowance is
periodically reviewed and adjustments are made to the allowance when there are
significant changes in the estimated net realizable value of the properties
underlying the PREPs. Internal property valuations and reviews performed
during the six months ended June 30, 1996, indicated that the PREPs recorded
on the balance sheet at June 30, 1996, required no adjustments to their
current carrying amounts.
The overall status of the Partnership's other Permanent Investments has
generally remained constant since March 31, 1996.
RESULTS OF OPERATIONS
The table below compares the results of operations for each period shown.
<TABLE>
<CAPTION>
For the For the Increase
Quarter Ended Quarter Ended (Decrease)
June 30, 1996 June 30, 1995 From 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
Mortgage-backed securities income $ 168,964 $ 183,019 $ (14,055)
Equity in earnings of property partnerships 2,573 1,716 857
Interest income on temporary cash investments 21,908 20,986 922
--------------- --------------- ---------------
193,445 205,721 (12,276)
General and administrative expenses (46,850) (44,468) 2,382
--------------- --------------- ---------------
Net income $ 146,595 $ 161,253 $ (14,658)
=============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
For the Six For the Six Increase
Months Ended Months Ended (Decrease)
June 30, 1996 June 30, 1995 From 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
Mortgage-backed securities income $ 338,523 $ 368,597 $ (30,074)
Equity in earnings of property partnerships 42,727 37,997 4,730
Interest income on temporary cash investments 45,531 40,817 4,714
--------------- --------------- ---------------
426,781 447,411 (20,630)
General and administrative expenses (91,805) (89,084) 2,721
--------------- --------------- ---------------
Net income $ 334,976 $ 358,327 $ (23,351)
=============== =============== ===============
</TABLE>
<PAGE> - 8 -
Mortgage-backed securities income decreased for the quarter and six months
ended June 30, 1996, compared to the same periods in 1995. This decrease was
primarily due to the continued amortization of the principal balances of the
mortgage-backed securities.
Equity in earnings of property partnerships is a function of the cash flow
received by the Partnership from its interest in the operating partnerships
which own the properties. Equity in earnings of property partnerships
increased for the quarter and six months ended June 30, 1996, compared to the
same periods in 1995. This increase was a result of an increase in cash flow
received from Ashwood Apartments during the quarter ended June 30, 1996 and
Broadmoor Court during the quarter ended March 31, 1996.
The increase in interest on temporary cash investments for the quarter and six
months ended June 30, 1996, compared to the same periods in 1995 was primarily
attributable to the increase in cash reserves as undistributed principal was
placed in reserves throughout 1995 and the first six months of 1996.
General and administrative expenses increased for the quarter and six months
ended June 30, 1996, due primarily to an increase in travel expenses incurred
during the quarter ended June 30, 1996.
<PAGE> - 9 -
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
4(a) Agreement of Limited Partnership dated May 25, 1988
(incorporated herein by reference to Form 10-Q dated
June 30, 1988 filed pursuant to Section 13 or 15(d) of
the Securities Act of 1934 by America First PREP Fund 2
Pension Series Limited Partnership (Commission File No.
33-13407)).
4(b) Form of Certificate of Beneficial Unit Certificate
(incorporated herein by reference to Form 10-Q dated
June 30, 1988 filed pursuant to Section 13 or 15(d) of
the Securities Act of 1934 by America First PREP Fund 2
Pension Series Limited Partnership (Commission File No.
33-13407)).
(b) Form 8-K
The registrant did not file a report on Form 8-K during the
quarter for which this report is filed.
<PAGE> - 10 -
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.
Dated: August 13, 1996 AMERICA FIRST PREP FUND 2
PENSION SERIES LIMITED PARTNERSHIP
By America First Capital
Associates Limited
Partnership Six, General
Partner
By America First Companies L.L.C.,
General Partner
By /s/ Michael Thesing
Michael Thesing
Vice President, Secretary,
Treasurer and Chief Financial
Officer
<PAGE> - 11 -
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,845,201
<SECURITIES> 8,910,698
<RECEIVABLES> 61,470
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,906,671
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,864,167
<CURRENT-LIABILITIES> 252,287
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 10,611,880
<TOTAL-LIABILITY-AND-EQUITY> 10,864,167
<SALES> 0
<TOTAL-REVENUES> 426,781
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 91,805
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 334,976
<INCOME-TAX> 0
<INCOME-CONTINUING> 334,976
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 334,976
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
