<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark one)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 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 0-17589
NTS-PROPERTIES VII, LTD.
(Exact name of registrant as specified in its charter)
Florida 61-1119232
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
10172 Linn Station Road
Louisville, Kentucky 40223
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, (502) 426-4800
including area code
Not Applicable
Former name, former address and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (l) 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, and (2) has been subject to such filing requirements
for the past 90 days.
YES X NO
Exhibit Index: See page 13
Total Pages: 14
<PAGE>
TABLE OF CONTENTS
Pages
PART I
Item 1. Financial Statements
Balance Sheets and Statement of Partners' Equity
as of March 31, 1996 and December 31, 1995 3
Statements of Operations
For the three months ended March 31, 1996 and 1995 4
Statements of Cash Flows
For the three months ended March 31, 1996 and 1995 5
Notes To Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-12
PART II
1. Legal Proceedings 13
2. Changes in Securities 13
3. Defaults upon Senior Securities 13
4. Submission of Matters to a Vote of Security Holders 13
5. Other Information 13
6. Exhibits and Reports on Form 8-K 13
Signatures 14
- 2 -
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
NTS-PROPERTIES VII, LTD.
BALANCE SHEETS AND STATEMENT OF PARTNERS' EQUITY
<CAPTION>
As of As of
March 31, 1996 December 31, 1995*
-------------- ------------------
<S> <C> <C>
ASSETS
Cash and equivalents $ 486,468 $ 377,212
Cash and equivalents - restricted 86,466 55,014
Investment securities -- 103,908
Accounts receivable 13,743 8,098
Land, buildings and amenities, net 11,271,320 11,405,597
Other assets 169,154 159,119
----------- -----------
$12,027,151 $12,108,948
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Mortgages payable $ 5,472,849 $ 5,509,479
Accounts payable - operations 69,159 53,878
Distributions payable 63,426 64,471
Security deposits 35,010 33,480
Other liabilities 29,101 3,323
----------- -----------
5,669,545 5,664,631
Partners' equity 6,357,606 6,444,317
----------- -----------
$12,027,151 $12,108,948
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
-------- ------- -----
<S> <C> <C> <C>
PARTNERS' EQUITY
Capital contributions, net of
offering costs $ 10,935,700 $ 100 $ 10,935,800
Net income (loss) - prior years (2,553,698) (25,794) (2,579,492)
Net income - current year 17,913 181 18,094
Cash distributions declared to
date (1,955,662) (19,754) (1,975,416)
Repurchase of limited
partnership units (41,380) -- (41,380)
------------ ---------- ------------
Balances at March 31, 1996 $ 6,402,873 $ (45,267) $ 6,357,606
============ ========== ===========
</TABLE>
* Reference is made to the audited financial statements in the Form 10-K as
filed with the Commission on March 29, 1996.
- 3 -
<PAGE>
<TABLE>
NTS-PROPERTIES VII, LTD.
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended
March 31,
---------
1996 1995
---- ----
<S> <C> <C>
Revenues:
Rental income $ 506,853 $ 466,289
Interest and other income 4,977 3,212
--------- ---------
511,830 469,501
Expenses:
Operating expenses 88,648 89,529
Operating expenses - affiliated 56,141 62,193
Amortization of capitalized leasing costs 255 2,507
Interest expense 115,069 118,335
Management fees 26,144 24,268
Real estate taxes 25,778 26,568
Professional and administrative expenses 12,582 14,250
Professional and administrative expenses
- affiliated 32,389 24,618
Depreciation and amortization 136,730 151,960
--------- ---------
493,736 514,228
--------- ---------
Net income (loss) $ 18,094 $ (44,727)
========= =========
Net income (loss) allocated to the limited
partners $ 17,913 $ (44,280)
========= =========
Net income (loss) per limited partnership
unit $ .03 $ (.07)
========= =========
Weighted average number of limited
partnership units 636,252 638,265
========= =========
</TABLE>
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<PAGE>
<TABLE>
NTS-PROPERTIES VII, LTD.
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended
March 31,
---------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 18,094 $ (44,727)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Accrued interest on investment securities 1,408 --
Amortization of capitalized leasing costs 255 2,507
Depreciation and amortization 136,730 151,960
Changes in assets and liabilities:
Cash and equivalents - restricted (22,832) (20,930)
Accounts receivable (5,645) 3,189
Other assets (12,296) (14,054)
Accounts payable - operations 15,281 (10,461)
Security deposits 1,530 (977)
Other liabilities 25,778 26,147
--------- ---------
Net cash provided by operating activities 158,303 92,654
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to land, buildings and amenities (445) (29,722)
Maturity of investment securities 102,499 --
--------- ---------
Net cash provided by (used in) investing
activities 102,054 (29,722)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Cash and equivalents - restricted (8,620) --
Principal payments on mortgages payable (36,630) (33,672)
Cash distributions (64,471) (64,471)
Repurchase of limited partnership units (41,380) --
--------- ---------
Net cash used in financing activities (151,101) (98,143)
--------- ---------
Net increase (decrease) in cash and equivalents 109,256 (35,211)
CASH AND EQUIVALENTS, beginning of period 377,212 515,376
--------- ---------
CASH AND EQUIVALENTS, end of period $ 486,468 $ 480,165
========= =========
Interest paid on a cash basis $ 115,538 $ 118,498
========= =========
</TABLE>
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<PAGE>
NTS-PROPERTIES VII, LTD.
NOTES TO FINANCIAL STATEMENTS
The financial statements included herein should be read in conjunction with the
Partnership's 1995 Annual Report. In the opinion of the general partner, all
adjustments (only consisting of normal recurring accruals) necessary for a fair
presentation have been made to the accompanying financial statements for the
three months ended March 31, 1996 and 1995.
1. Cash and Equivalents - Restricted
---------------------------------
Cash and equivalents - restricted represents funds received for residential
security deposits, funds which have been escrowed with mortgage companies
for property taxes in accordance with the loan agreements, and funds
reserved by the partnership for the repurchase of limited partnership
units.
2. Mortgages Payable
-----------------
Mortgages payable consist of the following:
March 31, December 31,
1996 1995
---- ----
Mortgage payable to an insurance
company, bearing interest at a fixed
rate of 8.375%, due October 5, 2002,
secured by land and buildings $ 3,124,133 $ 3,134,609
Mortgage payable to an insurance
company, bearing interest at a fixed
rate of 8.375%, due October 5, 2002,
secured by land and buildings 961,272 964,495
Mortgage payable to an insurance
company, bearing interest at a fixed
rate of 8.5%, due November 15, 2005,
secured by land and building 1,387,444 1,410,375
---------- ----------
$ 5,472,849 $ 5,509,479
========== ==========
Based on the borrowing rates currently available to the Partnership for
mortgages with similar terms and average maturities, the fair value of
long-term debt is approximately $7,000,000.
3. Interest Repurchase Reserve
---------------------------
As of December 31, 1995, the Partnership had established an Interest
Repurchase Reserve in the amount of $127,653 pursuant to Section 16.4 of
the Partnership's Amended and Restated Agreement of Limited Partnership.
With these funds, the Partnership will be able to repurchase up to 31,913
Units at a price of $4.00 per Unit. As of March 31, 1996, the
- 6 -
<PAGE>
3. Interest Repurchase Reserve - Continued
---------------------------------------
Partnership had repurchased a total of 10,345 Units. Repurchased Units are
retired by the Partnership, thus increasing the share of ownership of each
remaining investor. The Interest Repurchase Reserve was funded from cash
reserves.
4. New Accounting Pronouncement
----------------------------
In March 1995, the Financial Accounting Standards Board issued Statement
No. 121 (the "Statement") on accounting for the impairment of long-lived
assets, certain identifiable intangibles, and goodwill related to assets to
be held and used. The Statement also establishes accounting standards for
long-lived assets and certain identifiable intangibles to be disposed of.
The Partnership adopted the Statement as of January 1, 1996 as required. No
adjustments were required.
5. Related Party Transactions
--------------------------
Property management fees of $26,144 and $24,268 were paid to NTS
Development Company, an affiliate of the general partner, during the three
months ended March 31, 1996 and 1995, respectively. The fee is paid monthly
in an amount equal to 5% of the gross revenues from the residential
properties and 6% of the gross revenues from the commercial property
pursuant to an agreement with the Partnership. Also permitted by the
partnership agreement, NTS Development Company will receive a repair and
maintenance fee equal to 5.9% of costs incurred which related to capital
improvements. The Partnership has incurred $706 as a repair and maintenance
fee during the three months ended March 31, 1995, and has capitalized this
cost as part of land, buildings and amenities. There was no similar fee
incurred during the three months ended March 31, 1996. The Partnership also
was charged the following amounts from NTS Development Company for the
three months ended March 31, 1996 and 1995. These charges include items
which have been expensed as operating expenses - affiliated or professional
and administrative expenses affiliated and items which have been
capitalized as other assets or as land, buildings and amenities. The
charges were as follows:
1996 1995
--------- --------
Leasing $ 10,341 $ 16,058
Administrative 38,912 30,787
Property manager 39,277 39,699
Other -- 267
-------- -------
$ 88,530 $ 86,811
======== =======
6. Reclassification of 1995 Financial Statements
---------------------------------------------
Certain reclassifications have been made to the March 31, 1995 financial
statements to conform with the March 31, 1996 classifications. These
classifications have no effect on previously reported operations.
- 7 -
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
Results of Operations
- ---------------------
The occupancy levels at the Partnership's properties as of March 31 were as
follows:
1996 1995
---- ----
Wholly-owned Properties
- -----------------------
The Park at the Willows 98% 88%
Park Place Apartments Phase II 93% 89%
Property Owned in Joint Venture with
NTS-Properties IV and NTS-Properties
Plus Ltd. (ownership % at March 31,
1996)
- -----------------------------------
Blankenbaker Business Center 1A (31%) 100% 100%
Rental and other income generated by the Partnership's properties for the three
months ended March 31, 1996 and 1995 was as follows:
1996 1995
--------- ---------
Wholly-owned Properties
- -----------------------
The Park at the Willows $ 80,892 $ 73,363
Park Place Apartments Phase II $ 352,653 $ 323,173
Property owned in Joint Venture with
NTS- Properties IV and NTS-Properties
Plus Ltd. (ownership % at March 31,
1996)
- -------------------------------------
Blankenbaker Business Center 1A (31%)(1) $ 73,437 $ 70,961
(1) Revenues shown in this table represent the Partnership's share of
revenues generated by Blankenbaker Business Center 1A. The Partnership's
percentage interest in the joint venture was 31% during the three months
ended March 31, 1996 and 1995.
The Park at the Willows' occupancy increased from 88% at March 31, 1995 to 98%
at March 31, 1996. Average occupancy for the three month period ended March 31
increased from 83% in 1995 to 98% in 1996. Occupancy at residential properties
fluctuate on a continuous basis. Period ending occupancy percentages represent
occupancy only on a specific date; therefore, it is more meaningful to look at
average occupancy percentages
- 8 -
<PAGE>
Results of Operations - Continued
- ---------------------------------
which are more representative of the entire period's results. The increase in
rental and other income at The Park at the Willows for the three months ended
March 31, 1996 as compared to the same period in 1995 was due to the 15%
increase in average occupancy. The increase in rental and other income at The
Park at the Willows is partially offset by decreased income from fully furnished
units and decreased income collected for short term leases and from early lease
termination. Fully furnished units are apartments which rent at an additional
premium above base rent. Therefore, it is possible for occupancy to increase and
revenues from fully furnished units to decrease when the number of fully
furnished units rented decreases.
Park Place Apartments Phase II's occupancy increased from 89% at March 31, 1995
to 93% at March 31, 1996. Average occupancy for the three month period at Park
Place Apartments Phase II increased from 89% in 1995 to 94% in 1996. Rental and
other income at Park Place Apartments Phase II increased for the three months
ended March 31, 1996 as compared to the same period in 1995 as a result of the
increase in average occupancy, increased rental rates and increased income from
fully furnished units as a result of an increased number of fully furnished
units being leased.
A wholly-owned subsidiary of The Prudential Insurance Company of America
(Prudential Service Bureau, Inc.) has leased 100% of Blankenbaker Business
Center 1A through July 2005. In addition to monthly rent payments, Prudential
Service Bureau, Inc. is obligated to pay substantially all of the operating
expenses attributable to its space. Blankenbaker Business Center 1A's rental and
other income remained fairly constant for the three months ended March 31, 1996
as compared to the three months ended March 31, 1995.
If present trends continue, the Partnership will be able to continue at its
current level of operations without the need of any additional financing.
Current occupancy levels are considered adequate to continue the operation of
the Partnership's properties. See the Liquidity and Capital Resources section of
Item 2 for a discussion regarding the cash requirements of the Partnership's
current debt financings.
Interest and other income includes interest income from investments made by the
Partnership with cash reserves. The increase in interest income for the three
months ended March 31, 1996 as compared to the same period in 1995 is a result
of increased cash reserves being available for investment.
Operating expenses have remained fairly constant for the three months ended
March 31, 1996 as compared to the three months ended March 31, 1995.
Operating expenses - affiliated decreased for the three months ended March 31,
1996 as compared to the same period in 1995 as a result of decreased leasing
costs at Blankenbaker Business Center 1A. Operating expenses affiliated are
expenses incurred for services performed by employees of NTS Development
Company, an affiliate of the General Partner.
- 9 -
<PAGE>
Results of Operations - Continued
- ---------------------------------
Amortization of capitalized leasing costs represents the amortization of various
costs which were capitalized during the initial leasing and start-up period of
Park Place Apartments Phase II. The amortization of capitalized leasing costs
has decreased for the three months ended March 31, 1996 as compared to the same
period in 1995 as a result of the costs capitalized during start-up having
become fully amortized during the first quarter of 1996.
The decrease in interest expense for the three months ended March 31, 1996 as
compared to the same period in 1995 is the result of the Partnership's
decreasing debt level as a result of principal payments made. See the Liquidity
and Capital Resources section of this item for details regarding the
Partnership's debt.
Management fees are calculated as a percentage of cash collections, however;
revenue for reporting purposes is on the accrual basis. As a result, the
fluctuations of revenues between periods will differ from the fluctuations of
management fee expense.
Real estate taxes and professional and administrative expenses have remained
fairly constant for the three months ended March 31, 1996 as compared to the
three months ended March 31, 1995.
Professional and administrative expenses - affiliated increased for the three
months ended March 31, 1996 as compared to the three months ended March 31, 1995
due to increased marketing and accounting salaries. Professional and
administrative expenses - affiliated are expenses incurred for services
performed by employees of NTS Development Company, an affiliate of the General
Partner.
Depreciation and amortization decreased for the three months ended March 31,
1996 as compared to the three months ended March 31, 1995 as a result of a
portion of the original tenant improvements at Blankenbaker Business Center 1A
becoming fully depreciated. Depreciation is computed using the straight-line
method over the estimated useful lives of the assets which are 10 - 30 years for
land improvements, 30 years for buildings, 5 - 30 years for building
improvements and 5 - 30 years for amenities. The aggregate cost of the
Partnership's properties for Federal tax purposes is approximately $13,800,000.
Liquidity and Capital Resources
- -------------------------------
Cash provided by operations was $158,303 and $92,654 for the three months ended
March 31, 1996 and 1995, respectively. These funds in conjunction with cash on
hand were used to pay a 2% (annualized) cash distribution of $63,426 (1996) and
a 2% (annualized) cash distribution of $64,471 (1995). The annualized
distribution rate is calculated as a percent of the original capital
contribution. The limited partners received 99% and the general partner received
1% of these distributions. The primary source of future liquidity and
distributions is expected to be derived from cash generated
- 10 -
<PAGE>
Liquidity and Capital Resources - Continued
- -------------------------------------------
by the Partnership's properties after adequate cash reserves are established for
future leasing and tenant finish costs. Cash reserves (which are unrestricted
cash and equivalents as shown on the Partnership's balance sheet as of March 31)
were $486,468 and $480,165 at March 31, 1996 and 1995, respectively.
As of March 31, 1996, the Partnership had two mortgage loans each with an
insurance company in the amount of $3,124,133 and $961,272. Both mortgages
currently bear a fixed interest rate of 8.375%, are secured by a first mortgage
on Park Place Apartments Phase II and are due October 5, 2002. Current monthly
principal payments on both mortgages are based upon a 27- year amortization
schedule. The outstanding principal balance at maturity based on the current
rate of amortization would be $3,607,560 ($2,758,723 and $848,837).
As of March 31, 1996, Blankenbaker Business Center 1A, a joint venture between
the Partnership, NTS-Properties IV and NTS-Properties Plus Ltd., affiliates of
the General Partner, had a mortgage payable with an insurance company (obtained
November 1994) in the amount of $4,427,069. The mortgage is recorded as a
liability of the Joint Venture and is secured by the assets of the Joint
Venture. The Partnership's proportionate interest in the mortgage at March 31,
1996 is $1,387,444. The mortgage bears interest at a fixed rate of 8.5% and is
due November 15, 2005. Current monthly principal payments are based upon an
11-year amortization schedule. At maturity, the mortgage will have been repaid
based on the current rate of amortization.
As of December 31, 1995, the Partnership had established an Interest Repurchase
Reserve in the amount of $127,653 pursuant to Section 16.4 of the Partnership's
Amended and Restated Agreement of Limited Partnership. With these funds, the
Partnership will be able to repurchase up to 31,913 Units at a price of $4.00
per Unit. As of March 31, 1996, the Partnership had repurchased a total of
10,345 Units. Repurchased Units are retired by the Partnership, thus increasing
the share of ownership of each remaining investor. The Interest Repurchase
Reserve was funded from cash reserves. The Partnership is currently
contemplating an additional funding to its Interest Repurchase Reserve in the
near term.
The majority of the Partnership's cash flow is derived from operating
activities. Cash flows used in investing activities are for capital improvements
at the Partnership's properties. These improvements are funded by cash flow from
operations. Cash flows provided by investing activities are derived from the
maturity of investment securities. As part of its cash management activities,
the Partnership has purchased Certificates of Deposit or securities issued by
the U. S. Government with initial maturities of greater than three months to
improve its return on its cash reserves. The Partnership held the securities
until maturity. Cash flows used in financing activities are for cash
distributions, principal payments on mortgages payable and repurchases of
limited partnership Units. Cash flows used in
- 11 -
<PAGE>
Liquidity and Capital Resources - Continued
- -------------------------------------------
financing activities also include cash which has been reserved by the
Partnership for the repurchase of limited partnership Units. The Partnership
does not expect any material changes in the mix and relative cost of capital
resources from those in 1995.
The primary source of future liquidity and distributions is expected to be
derived from cash generated by the Partnership's operating properties after
adequate cash reserves are established for future leasing, renovations and
tenant finish costs. It is anticipated that the cash flow from operations and
cash reserves will be sufficient to meet the needs of the Partnership. The
Partnership had no material commitments for renovations or capital improvements
at March 31, 1996.
The table below presents that portion of the distributions that represent a
return of capital on a Generally Accepted Accounting Principle basis for the
three months ended March 31, 1996 and 1995.
Net Income Cash
(Loss) Distributions Return of
Allocated Declared Capital
--------- -------- -------
Limited Partners:
1996 $ 17,913 $ 62,792 $ 44,879
1995 (44,280) 63,826 63,826
General Partner:
1996 $ 181 $ 634 $ 453
1995 (447) 645 645
In an effort to continue to improve occupancy at the Partnership's residential
properties, the Partnership has an on-site leasing staff, employees of NTS
Development Company, at each of the apartment communities. The staff handles all
on-site visits from potential tenants, coordinates local advertising with NTS
Development Company's marketing staff, makes visits to local companies to
promote fully furnished units and works with current residents on lease
renewals.
The lease at Blankenbaker Business Center 1A provides for the tenant to
contribute toward the payment of common area expenses, insurance and real estate
taxes. This lease provision, along with the fact that residential leases are
generally for a period of one year, should protect the Partnership's operations
from the impact of inflation and changing prices.
- 12 -
<PAGE>
PART II. OTHER INFORMATION
1. Legal Proceedings
None
2. Changes in Securities
None
3. Defaults upon Senior Securities
None
4. Submission of Matters to a Vote of Security Holders
None
5. Other Information
None
6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K:
Form 8-K, dated February 1, 1996, was filed to report in Item 5
the fact that the Partnership has established an Interest
Repurchase Reserve pursuant to Section 16.4 of the Partnership's
Amended and Restated Agreement of Limited Partnership.
- 13 -
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, NTS-Properties VII, Ltd. has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
NTS-PROPERTIES VII, LTD.
(Registrant)
By: NTS-Properties Associates VII
By: NTS Capital Corporation,
General Partner
/s/ John W. Hampton
John W. Hampton
Senior Vice President
Date: May 14, 1996
- 14 -
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AS OF MARCH 31, 1996 AND FROM THE STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 572,934
<SECURITIES> 0
<RECEIVABLES> 13,743
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 11,271,320
<DEPRECIATION> 0<F2>
<TOTAL-ASSETS> 12,027,151
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 5,472,849
0
0
<COMMON> 0
<OTHER-SE> 6,357,606
<TOTAL-LIABILITY-AND-EQUITY> 12,027,151
<SALES> 506,853
<TOTAL-REVENUES> 511,830
<CGS> 0
<TOTAL-COSTS> 333,696
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 115,069
<INCOME-PRETAX> 18,094
<INCOME-TAX> 0
<INCOME-CONTINUING> 18,094
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,094
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>THE PARTNERSHIP HAS AN UNCLASSIFIED BALANCE SHEET; THEREFORE, THE VALUE
IS $0.
<F2>THIS INFORMATION IS NOT DISCLOSED IN THE PARTNERSHIP'S FORM 10-Q FILING.
</FN>
</TABLE>
