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 September 30, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13
OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-17695
HEALTHCARE PROPERTIES, L.P.
(Exact name of Registrant as specified in its charter)
DELAWARE 62-1317327
(State or other jurisdiction of (I.R.S. Employer
incorporation or oganization) Identification Number)
14160 DALLAS PARKWAY, SUITE 300, DALLAS, TEXAS 75240
(Address of principal executive office)
(972) 770-5600
(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 at least the past 90 days. YES x NO ___
<PAGE>
See notes to financial statements
1
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 8,966,688 $ 7,606,857
Accounts receivable, less allowance
for doubtful accounts of
$4,200,344
and $3,489,937 571,429 210,409
Prepaid Expenses and other 103,140 129,714
Deferred charges, less accumulated
amortization of $736,884 and
$734,146 528,470 614,051
Property and improvements, net 22,451,669 25,251,255
---------------- ---------------
Total assets $ 32,621,396 $ 33,812,286
================ ===============
</TABLE>
LIABILITIES AND PARTNERSHIP EQUITY
<TABLE>
<CAPTION>
Accounts payable and accrued
<S> <C> <C>
expenses $ 1,165,096 $ 1,526,209
Operating facility accounts payable 101,844 83,194
Mortgage loans payable-in-default 0 2,068,539
Mortgage loans payable 7,335,039 7,707,062
---------------- ---------------
Total liabilities 8,601,979 11,385,004
Partnership equity - 4,172,457 and
4,172,457 Partnership units
outstanding 24,019,417 22,427,282
---------------- ---------------
Total liabilities and equity $ 32,621,396 $ 33,812,286
================ ===============
</TABLE>
<PAGE>
See notes to finanaical statements
5
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended, Three months ended,
September 30, 1996 September 30, 1995
------------------ ------------------
Revenues:
<S> <C> <C>
Rental $ 1,115,121 $ 1,237,352
Net patient services 936,423 777,062
--------------- ---------------
2,051,544 2,014,414
--------------- ---------------
Expenses:
Facility operating expenses 916,522 867,094
Depreciation 342,901 402,157
Lease default expenses 45,869 112,419
Administrative and other 250,516 129,746
Bad debts 294,898 697,016
--------------- ---------------
1,850,706 2,208,432
--------------- ---------------
Income from operations 200,838 (194,018)
--------------- ---------------
Other Income (expenses):
Gain on sale 0 363,785
Interest income 59,526 52,618
Interest expenses (178,142) (267,539)
Amortization (28,527) (38,572)
--------------- ---------------
(147,143) 110,292
--------------- ---------------
Net Income (Loss) before extraordinary item 53,695 (83,726)
Extraordinary item - gain on
extinguishment of debt 0 2,006,309
--------------- ---------------
Net Income $ 53,695 $ 1,922,583
=============== ===============
NET EARNINGS PER UNIT $ .01 $ .45
=============== ===============
WEIGHTED AVERAGE
NUMBER OF UNITS 4,172,457 4,172,457
=============== ===============
</TABLE>
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Nine Months ended Nine months ended
September 30, 1996 September 30, 1995
------------------ ------------------
Revenues:
<S> <C> <C>
Rental $ 3,563,789 $ 3,893,335
Net patient services 1,722,662 3,027,937
--------------- ---------------
5,286,451 6,921,272
--------------- ---------------
Expenses:
Facility operating expenses 1,653,479 2,870,603
Depreciation 1,076,809 1,351,858
Lease default expenses 104,084 243,730
Administrative and other 969,788 857,971
Bad debts 710,407 1,033,845
--------------- ---------------
4,514,567 6,358,007
--------------- ---------------
Income from operations 771,884 563,265
--------------- ---------------
Other Income (expenses):
Gain on sale 637,528 363,785
Interest income 174,067 130,836
Interest expenses (608,455) (1,087,453)
Amortization (85,581) (134,934)
--------------- ---------------
117,559 (727,766)
--------------- ---------------
Net Income (Loss) before
extraordinary item 889,443 (164,501)
Extraordinary item-gain on
extinguishment of debt 702,692 2,006,309
--------------- ---------------
Net Income $ 1,592,135 $ 1,841,808
=============== ===============
NET EARNINGS PER UNIT $ .37 $ .43
=============== ===============
WEIGHTED AVERAGE
NUMBER OF UNITS 4,172,457 4,172,457
=============== ===============
</TABLE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENTS OF PARTNERSHIP EQUITY (DEFICIT)
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
Allocation of Net Earnings
(Loss) 98% 2% 100%
=== == ====
EQUITY (DEFICIT) at
<S> <C> <C> <C> <C> <C>
December 31, 1995 $ 22,449,617 $ (22,335) $ 22,427,282
Net Income 38,283 781 39,064
-------------- ------------ --------------
EQUITY (DEFICIT) at
March 31, 1996 22,487,900 (21,554) 22,466,346
Net Income 1,469,388 29,988 1,499,376
-------------- ------------ --------------
EQUITY (DEFICIT) at
June 30, 1996 23,957,288 8,434 23,965,722
Net Income 52,621 1,074 53,695
-------------- ------------ --------------
EQUITY at
September 30, 1996 $ 24,009,909 $ 9,508 $ 24,019,417
============== ============ ==============
</TABLE>
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine months ended Nine months ended
September 30, 1996 September 30, 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net Income $ 1,592,135 $ 1,841,808
Adjustments to reconcile net loss to
net cash provided by operating activities:
Gain on extinguishment of debt (702,692) (2,006,309)
Gain sale (637,528) (363,785)
Bad debts 710,407 1,033,845
Depreciation and amortization 1,162,390 1,486,792
Changes in assets and liabilities:
Accounts receivable (1,071,427) (420,177)
Prepaid expenses 25,802 10,756
Accounts payable &
accrued expenses 494,816 (357,041)
------------- -------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 1,573,903 1,225,889
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds on sale of property 2,246,114 2,958,287
Purchases of property and improvement (19,624) (760)
Cash forfeiture on transfer of properties 0 (68,219)
------------- -------------
NET CASH PROVIDED
IN INVESTING ACTIVITIES 2,226,490 2,889,308
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgage loans payable (2,440,562) (1,850,559)
------------- -------------
NET CASH USED
FINANCING ACTIVITIES (2,440,562) (1,850,559)
------------- -------------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 1,359,831 2,264,638
CASH AND CASH EQUIVALENTS
Beginning of Period 7,606,857 5,606,274
------------- -------------
CASH AND CASH EQUIVALENTS
End of Period $ 8,966,688 $ 7,870,912
============= =============
</TABLE>
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
NOTE TO FINANCIAL STATEMENTS
Nine months ended September 30, 1996
(Unaudited)
A. ACCOUNTING POLICIES
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary have been included. Operating
results are not necessarily indicative of the results that may be expected for
the year ending December 31, 1996. The financial statements should be read in
conjunction with the consolidated financial statements and the footnotes thereto
included in Registrant's annual report on Form 10-K for the year ended December
31, 1995.
B. TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES OF THE GENERAL
PARTNER
Effective July 1, 1993, Capital Realty Group Senior Housing,
Inc. ("CRGSH") replaced Jacques-Miller, Inc. and Jacques and Associates, L.P.
as the sole General Partner of the Registrant.
Personnel working at the Property sites and certain home office
personnel who perform services for the Registrant are employees as of February
1, 1995 of Capital Senior Living, Inc. (CSL), an affiliate of CRGSH and prior to
February 1, 1995 were employees of CRGSH. The Registrant reimburses CRGSH or CSL
for the salaries, related benefits, and overhead reimbursements of such
personnel as reflected in the accompanying financial statements. Reimbursements
and fees paid to the general partner and affiliates of the general partner are
as follows:
<TABLE>
<CAPTION>
Nine months ended Nine months ended
September 30, 1996 September 30, 1995
<S> <C> <C>
Salary and benefit reimbursements $ 1,066,835 $ 1,865,718
Administrative reimbursements 220,019 187,609
Asset management fees 560,477 530,518
Property management fees 117,465 209,134
General partner management fees 48,485 63,695
-------------- --------------
$ 2,013,281 $ 2,856,674
============= ==============
</TABLE>
C. VALUATION OF RENTAL PROPERTY
During 1991 and the first half of 1992, the Registrant experienced
defaults by the lessee/operators under eight of its property leases. The result
of these numerous defaults is that many of the Registrant's leases have been
restructured or the properties have been sold or deeded back to their lender.
Specifically, Countryside, with a carrying value of $1,815,932 was sold on May
1, 1996 to a third party buyer for $2,200,000. The Foothills property, with a
carrying value of $2,122,179, was deeded to the lender in lieu of foreclosure on
July 19, 1995. Diablo/Tamarack, with a carrying value of $2,071,332, was deeded
to the lender in lieu of foreclosure on August 1, 1995. Additionally, the
Cambridge facility, which had been under a Chapter 11 Reorganization Plan, was
discharged from Bankruptcy Court on August 1, 1996.
As a result of the market conditions in the real estate industry and
the historically unsatisfactory operating performance of certain of the rental
properties, the carrying values of the Foothills, Countryside, and
Diablo/Tamarack properties were written down $3,458,384 to the related
non-recourse debt value on these properties at December 31, 1993. At December
31, 1994, the Partnership concluded that the carrying value exceeded estimated
fair value on the Cambridge facility. As a result, the carrying value of the
Cambridge facility was written down $2,185,381 to the estimated fair market
value.
The balance sheet of the Registrant as of September 30, 1996, shows
total assets of $32,621,396, total liabilities of $8,601,979, and Registrant
equity of $24,019,417.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
Registrant commenced an offering to the public on August 31, 1987, of
depository units representing beneficial assignments of limited partnership
interests ("Units"). On October 14, 1987, Registrant commenced operations,
having previously accepted subscriptions for more than the specified minimum of
120,000 Units. As of August 30, 1989, the offering was closed except for Units
for sale to existing investors under the terms of a distribution reinvestment
plan. As of September 30, 1995, Registrant had sold Units aggregating
approximately $43.4 million. Due to the suspension of the distribution
reinvestment plan, Registrant does not anticipate any additional inflow of
investment.
As of September 30, 1996, the Registrant purchased eight nursing homes
and four rehabilitation centers for a combined price of approximately $ 51.0
million. After completing these acquisitions, Registrant's capital resources
consisted of ownership interests in these facilities subject to mortgage debt in
the aggregate amount of approximately $16 million which mortgage debt was
secured by eight of its properties in amounts equal to 40% - 60% of Registrant's
purchase price of the respective property. Most of these loans were non-recourse
to Registrant. As of September 30, 1996, Registrant owns four nursing homes and
four rehabilitation centers. Four of these properties have mortgage debt.
Potential sources of liquidity for Registrant include collection of
outstanding receivables and/or revenue participation related to various leased
facilities, collection on defaulted rent and/or damage settlements related to
leases in default, new mortgage financing on one or more of Registrant's
unencumbered assets, and a potential sale of one or more of the Registrant's
assets.
As of September 30, 1996, Registrant had cash and cash equivalents
aggregating $8,966,688. The cash and cash equivalents will be used for working
capital, negative cash flow, balloon notes due by 1997, emergency reserves, and
other restructuring requirements.
Registrant's general policy is to maintain sufficient cash and cash
equivalents to address disruptions of its lease revenues and to have adequate
additional funds for investment in existing assets for improvements. To the
extent that Registrant deems it necessary to take over the operations of any of
its facilities currently under long term net lease, such action would require
additional investment in working capital for operating reserves, capital
expenditures and related debt payments. As a consequence of prior defaults,
Registrant suspended cash distributions on July 1, 1991, pending successful
resolution of the various problems within its portfolio. Due to the uncertainty
of the timing and conditions under which the Liquidity Reserve (which was
suspended in March of 1991) might be reactivated, on August 15, 1991, Registrant
ceased accepting additional liquidation requests. As required by the Partnership
Agreement for Limited Partners to be paid their portion for federal income
taxes, a $250,000 cash distribution was made in June 1993. Future cash
distributions will be dependent upon improved operational income and successful
refinancing on certain Registrant mortgages. The Units are not publicly traded
and as a result the liquidity of each Limited Partner's individual investment is
limited.
Discussion of Three and Nine Months Ending September 30, 1996
Rental revenues for the nine months ended September 30, 1996, decreased
$329,546 from the comparable nine months ended September 30, 1995, due to the
sale of Heritage Manor on July 5, 1995 and the termination of its corresponding
rental revenues. Net patient services for the nine months ended September 30,
1996, decreased $1,305,275 from the nine months ended September 30, 1995, due to
the loss of operations on the Foothills facility to a court appointed receiver
in December, 1994, the sale of the Countryside facility on May 1, 1996 and the
loss of the Diablo/Tamarack facility on August 1, 1995. The Registrant gained
patient revenues from the inclusion of operations of the Cambridge Nursing Home
on August 1, 1996. Interest income for the nine months ended September 30, 1996
increased $43,231 from the nine months ended September 30, 1995 primarily due to
rising interest rates and increasing cash available for investment.
In July 1995, the Partnership incurred a $363,785 gain on sale of the
Heritage Manor facility. In addition, during the third quarter of 1995, the
Partnership incurred a $2,006,309 extraordinary gain on extinguishment of debt,
comprising a $895,005 gain on the transfer of the Diablo/Tamarack facility and a
$1,111,304 gain on the transfer of the Foothills facility. On May 1, 1996, the
Registrant sold the Countryside facility to a third party buyer for $2,200,000,
incurring a $637,528 gain on sale and a $702,692 extraordinary gain on
extinguishment of debt.
Facility operating expenses for the nine months ended September 30,
1996, decreased by $1,217,124 from the comparable 1995 period primarily due to
the loss of operations of the Foothills facility, the Countryside facility and
the Diablo/Tamarack facility. Facility operating expenses include the operating
expenses of the Cambridge Nursing Home as of August 1, 1996. Depreciation for
the nine months ended September 30, 1996, decreased $275,049 from the comparable
1995 period and is primarily due to the loss of the Foothills, Countryside,
Diablo/Tamarack, and Heritage Manor facilities. Lease default expense decreased
$139,646 for the nine months ended September 30, 1996 from the comparable 1995
period due to decreasing legal fees incurred on the resolution of defaulted
leases. Administrative expenses, including fees to the General Partner,
increased $111,817 for the nine months ended September 30, 1996 in comparison to
1995 and is primarily due to increased administrative reimbursements and
professional fees. Bad debt expense for the nine months ended September 30, 1996
decreased $323,438 from the comparable 1995 period primarily due to the
decreasing bad debt provision on Partnership advances and rent provisions to the
Cambridge facility. Interest expense and amortization for the nine months ended
September 30, 1996 decreased by $478,998 and $49,353, respectively, from the
comparable 1995 period, and is primarily due to the loss of the Foothills,
Countryside, Diablo/Tamarack, and Heritage Manor facilities.
For the three months ended September 30, 1996 as compared with the
three months ended September 30, 1995, the Partnership's revenue and operating
expenses were impacted by the same shifts of revenue and expenses as discussed
above, with the exception of increased patient revenue and facility operating
expenses due to the inclusion of the Cambridge facility.
Cash and cash equivalents as of September 30, 1996 increased $1,359,831
over the balance at December 31, 1995. Increased cash for the nine months ending
September 30, 1996 in comparison to 1995 is primarily due to improved operating
cash flow from discontinued operations of the Foothills and sale proceeds from
the sale of the Heritage Manor facility and the Countryside facility. Net
accounts receivable of $571,429 at September 1996 reflected an increase of
$361,020 over 1995 year-end balances and is due to the inclusion of the
Cambridge facility operations as of August 1, 1996. Accounts payable, accrued
expenses, and facility accounts payable balances decreased $342,463 at September
30, 1996, from December 31, 1995 and is primarily due to accrued interest and
vacation expense write-offs on the transfer and sale of the Diablo/Tamarack,
Foothills, and Countryside facilities.
The following is a brief discussion of the status of Registrant's
properties:
Cedarbrook, Cane Creek, Crenshaw Creek and Sandy Brook facilities.
Rebound, Inc. ("Rebound") leased the Cedarbrook, Cane Creek, Crenshaw Creek
and Sandy Brook properties pursuant to a master lease with the Registrant.
Effective November 30, 1992, the Registrant and Rebound reached an
amended master lease agreement whereby Rebound agreed to resume increased rental
payments to the Registrant, the terms of the lease were extended from five to
nine years, Registrant gained a 10% ownership position in Rebound and
substantial penalty provisions were placed on Rebound in the event of default.
Additionally, Registrant forgave notes receivable from Rebound and received a
promissory note for $1,900,000 payable over three years that was convertible on
certain default conditions at the option of the Registrant to additional shares
of Rebound. During the second quarter ended June 30, 1993, Relife, Inc. acquired
Rebound resulting in payment of the $1,900,000 promissory note to the Registrant
and sale of Rebound stock for $939,025 in cash. The master lease negotiated with
Rebound was guaranteed by Relife, Inc. Due to low occupancy of the Sandybrook
facility, it was temporarily closed in 1994 and at this time Registrant cannot
determine when it might reopen. During 1994, Relife, Inc. was acquired by
HealthSouth Rehabilitation Corporation. Rental payments in March and April 1995
were discontinued by the new ownership causing an interruption in the master
lease. Registrant met with the new ownership and those payments were
subsequently made in the second quarter of 1995. Subsequent to that time period,
all payments have been made on a timely basis.
Two recourse loans, Cedarbrook and Cane Creek, were due in January 1996
in the aggregate amount of approximately $2,400,000.
The lender of both the Cane Creek and Cedarbrook notes agreed to extend
their loan to December 1, 2001, pending completion of final paperwork.
Foothills facility. The mortgage loan on Foothills was in default from
April 1992 onward. During December 1994, the Registrant was ordered to turn over
management of the Foothills facility to a court appointed receiver. On July 19,
1995, the Registrant transferred the property to the lender, pursuant to a deed
in lieu of foreclosure. The documents for this transfer include a release of all
potential liability to the Registrant.
Countryside facility. The mortgage loan on Countryside was also in
default from April 1992 onward. On May 1, 1996, Registrant sold the Countryside
facility to a third party buyer for $2,200,000. With the sale proceeds,
Registrant paid off the lender on Countryside an amount agreed to by the lender
in full settlement of all obligations to the lender. Registrant netted $26,000
as a result of this agreed upon sale. Registrant also obtained a full release of
all potential liability from the lender.
Diablo/Tamarack facility. The mortgage loan on the Diablo/Tamarack
facility was also in default from April 1992 onward. In November 1994, the
lender attempted to appoint a receiver. The Registrant successfully opposed the
Motion and negotiated for a transition of this property which will not involve
ongoing liability to the Registrant. On July 31, 1995, the facility was deeded
to the lender in lieu of foreclosure and a release of all potential liability to
Registrant was obtained.
Cambridge facility. The lessee of the Cambridge facility, Nursing
Centers of America-Cambridge ("NCAC") , filed a voluntary petition under Chapter
11 of the Federal Bankruptcy Code in February of 1992. Registrant commenced
litigation against NCAC seeking full payment of future rentals under the lease
or the removal of NCAC from the direct operational control of the facility.
Based on certain interpretations of state regulations, the Registrant
could have become liable for approximately $1,400,000 in connection with the
recovery of prior Medicaid overpayments. Additionally, property taxes were owed
to the City of Cambridge. On May 24, 1993, Registrant reached an agreement with
the bankrupt operator of the Cambridge facility to repossess that facility
pending emergence from Bankruptcy Court. It became the responsibility of
Registrant to file a bankruptcy plan to take this property out of the
jurisdiction of the Bankruptcy Court. In December 1995, Registrant reached a
settlement with the State of Massachusetts and the City of Cambridge with regard
to the outstanding issues facing the Cambridge facility. This settlement was
approved by the United States Bankruptcy Court in Florida in the fourth quarter
of 1995. On August 1, 1996, Cambridge Nursing Home Limited Liability Company, a
subsidiary of the Registrant, acquired the assets of Cambridge Nursing Home,
thus releasing the current operations of the facility from the jurisdictions of
the Bankruptcy Court. The subsidiary of the Registrant now has the assets and
operates the property.
Heritage Manor facility. The Heritage Manor facility was sold in May
1995 for $3,075,000 and the Partnership netted $1,458,287 after payment of fees
and mortgage balance.
Trinity Hills, McCurdy, and Hearthstone facilities. The Registrant's
other facility lessees are all current in their lease obligations to the
Registrant. In addition, the Registrant believes it likely that two of these
lessees will pay additional rental amounts to the Registrant during future years
based upon increased revenues at those facilities. However, there can be no
assurance of such increased revenue. Two of these facilities appear to be
generating cash flow sufficient to fund their lease obligations, but Trinity
Hills is, at this time, not generating sufficient cash flow to fund its lease
obligations from property operations. However, the lessee continues to fund the
deficit lease cash flow.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Registrant has been engaged in litigation in an attempt to recover
damages from defaulting lessees and their guarantors. Such actions involve
claims against a prior operator of the Diablo/Tamarack facility. In certain
cases counterclaims against Registrant have been either threatened or filed.
Registrant does not believe any materially adverse judgements are likely from
these counter claims.
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
None.
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 duly authorized.
HEALTHCARE PROPERTIES, L.P.
By: CAPITAL REALTY GROUP SENIOR HOUSING, INC.
General Partner
By:
Keith Johannessen
President
Date:
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
FINANCIAL DATA SCHEDULE
</LEGEND>
<CIK> 0000814458
<NAME> HEALTHCARE PROPERTIES, L.P.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 8,966,688
<SECURITIES> 0
<RECEIVABLES> 4,771,773
<ALLOWANCES> (4,200,344)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 36,144,805
<DEPRECIATION> (13,693,136)
<TOTAL-ASSETS> 32,621,396
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 24,019,417
<TOTAL-LIABILITY-AND-EQUITY> 32,621,396
<SALES> 0
<TOTAL-REVENUES> 6,098,046
<CGS> 0
<TOTAL-COSTS> 4,514,567
<OTHER-EXPENSES> 85,581
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 608,455
<INCOME-PRETAX> 889,443
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 702,692
<CHANGES> 0
<NET-INCOME> 1,592,135
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
