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 June 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 organization) Identification Number)
14160 Dallas Parkway, Ste 300 Dallas, Texas 75240
- --------------------------------------------------------------------------------
(Address of principal executive office)
(214) 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
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, 1996 December 31, 1995
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 8,864,076 $ 7,606,857
Accounts receivable, less allowance
for doubtful accounts of $3,905,447
and $3,489,937 73,967 210,409
Prepaid Expenses and other 94,824 129,714
Deferred charges, less accumulated
amortization of $708,357 and
$734,146 556,997 614,051
Property and improvements, net 22,785,601 25,251,255
---------------- ---------------
Total assets $ 32,375,465 $ 33,812,286
================ ===============
LIABILITIES AND PARTNERSHIP EQUITY
Accounts payable and accrued
expenses $ 938,703 $ 1,526,209
Operating facility accounts payable 10,223 83,194
Mortgage loans payable-in-default 0 2,068,539
Mortgage loans payable 7,460,817 7,707,062
---------------- ---------------
Total liabilities 8,409,743 11,385,004
Partnership equity - 4,172,457 and
4,172,457 Partnership units
outstanding 23,965,722 22,427,282
---------------- ---------------
Total liabilities and equity $ 32,375,465 $ 33,812,286
================ ===============
<FN>
See notes to financial statements.
</FN>
</TABLE>
1
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended, Three months ended,
June 30, 1996 June 30, 1995
------------- -------------
Revenues:
<S> <C> <C>
Rental $ 1,229,333 $ 1,328,373
Net patient services 207,727 1,214,110
--------------- ---------------
1,437,060 2,542,483
--------------- ---------------
Expenses:
Facility operating expenses 188,791 1,033,686
Depreciation 354,928 474,507
Lease default expenses 18,144 69,068
Administrative and other 303,792 362,757
Bad debts 245,094 168,414
--------------- ---------------
1,110,749 2,108,432
--------------- ---------------
Income from operations 326,311 434,051
--------------- ---------------
Other Income (expenses):
Gain on sale 637,528 0
Interest income 58,354 42,994
Interest expenses (196,982) (407,919)
Amortization (28,527) (48,181)
--------------- ---------------
470,373 (413,106)
--------------- ---------------
Net Income before extraordinary item 796,684 20,945
Extraordinary item - gain on
extinguishment of debt 702,692 0
--------------- ---------------
Net Income $ 1,499,376 $ 20,945
=============== ===============
NET EARNINGS PER UNIT $ .36 $ .01
=============== ===============
WEIGHTED AVERAGE
NUMBER OF UNITS 4,172,457 4,172,457
========= =========
<FN>
See notes to financial statements.
</FN>
</TABLE>
2
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months ended Six months ended
June 30, 1996 June 30, 1995
------------- -------------
Revenues:
<S> <C> <C>
Rental $ 2,448,668 $ 2,655,983
Net patient services 786,239 2,250,875
--------------- ---------------
3,234,907 4,906,858
--------------- ---------------
Expenses:
Facility operating expenses 736,957 2,003,509
Depreciation 733,908 949,701
Lease default expenses 58,215 131,311
Administrative and other 719,272 728,225
Bad debts 415,509 336,829
--------------- ---------------
2,663,861 4,149,575
--------------- ---------------
Income from operations 571,046 757,283
--------------- ---------------
Other Income (expenses):
Gain on sale 637,528 0
Interest income 114,541 78,218
Interest expenses (430,313) (819,914)
Amortization (57,054) (96,362)
--------------- ---------------
264,702 (838,058)
--------------- ---------------
Net Income (Loss) before
extraordinary item 835,748 (80,775)
Extraordinary item-gain on
extinguishment of debt 702,692 0
--------------- ---------------
Net Income (Loss) $ 1,538,440 $ (80,775)
=============== ===============
NET EARNINGS (LOSS) PER UNIT $ .37 $ (.02)
=============== ===============
WEIGHTED AVERAGE
NUMBER OF UNITS 4,172,457 4,172,457
========= =========
<FN>
See notes to financial statements.
</FN>
</TABLE>
3
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENTS OF PARTNERSHIP EQUITY (DEFICIT)
<TABLE>
<CAPTION>
Limited General
Partners Partners Total
Allocation of Net Earnings
<S> <C> <C> <C>
(Loss) 98% 2% 100%
=== == ====
EQUITY (DEFICIT) at
December 31, 1994 $ 21,489,281 $ (312,332) $ 21,176,949
Net Income 960,336 289,997 1,250,333
-------------- ------------ --------------
EQUITY (DEFICIT) at
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 at
June 30, 1996 $ 23,957,288 $ 8,434 $ 23,965,722
============== ============ ==============
<FN>
See notes to financial statements.
</FN>
</TABLE>
4
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six months ended Six months ended
June 30, 1996 June 30, 1995
-------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net Income (Loss) $ 1,538,440 $ (80,775)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Gain on extinguishment of debt (702,692) 0
Gain sale (637,528) 0
Bad debts 415,509 336,829
Depreciation and amortization 790,962 1,046,063
Changes in assets and liabilities:
Accounts receivable (279,067) (560,505)
Prepaid expenses 34,118 19,259
Accounts payable &
accrued expenses 176,802 (65,510)
------------- -------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 1,336,544 695,361
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds on sale of property 2,246,114 0
Purchases of property and improvement (10,655) (760)
------------- -------------
NET CASH PROVIDED (USED)
IN INVESTING ACTIVITIES 2,235,459 (760)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgage loans payable (2,314,784) (231,705)
------------- -------------
NET CASH USED
FINANCING ACTIVITIES (2,314,784) (231,705)
------------- -------------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 1,257,219 462,896
CASH AND CASH EQUIVALENTS
Beginning of Period 7,606,857 5,606,274
------------- -------------
CASH AND CASH EQUIVALENTS
End of Period $ 8,864,076 $ 6,069,170
============= =============
<FN>
See notes to financial statements.
</FN>
</TABLE>
5
<PAGE>
HEALTHCARE PROPERTIES, L.P.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Six months ended June 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 HealthCare Properties, L.P. (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>
Six months ended Six months ended
June 30, 1996 June 30, 1995
-------------- -------------
<S> <C> <C>
Salary and benefit reimbursements $ 528,936 $ 1,384,351
Administrative reimbursements 109,101 94,891
Asset management fees 383,208 339,611
Property management fees 53,665 153,742
General partner management fees 28,781 45,092
------------- --------------
$ 1,103,691 $ 2,017,687
============= ==============
</TABLE>
C. VALUATION OF RENTAL PROPERTY
The Registrant was originally formed to own health care properties and
to net lease these properties to lessee/operators. However, 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 terminated as a
result of defaults. Specifically, Cambridge, with a carrying value of
$1,694,348, is in default on its lease payments and its property taxes and is
being operated in the bankruptcy proceeding of the lessee. 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.
6
<PAGE>
Countryside, with a carrying value of $1,750,961, was in default with its
lender, and was sold on May 1, 1996 and the lender was paid off in an agreed
upon settlement.
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 an estimated fair market
value.
The balance sheet of the Registrant as of June 30, 1996, shows total
assets of $32,375,465, total liabilities of $8,409,743, and Registrant equity of
$23,965,722.
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 June 30, 1996, 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.
Originally, the Registrant had purchased eight nursing homes and four
rehabilitation centers for a combined price of approximately $51.0 million. At
that time, Registrant's capital resources consisted of ownership interests in
these facilities subject to mortgage debt in the aggregate amount of
approximately $16.9 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 June 30, 1996, Registrant owns four nursing homes and four
rehabilitation centers. Five of these properties have mortgage debt.
As of June 30, 1996, Registrant had cash and cash equivalents
aggregating approximately $8,864,000. The cash and cash equivalents will be used
for working capital, negative cash flow, balloon notes due by 1996, emergency
reserves, and other restructuring requirements.
Potential additional 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.
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
7
<PAGE>
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 Six months Ending June 30, 1996
Rental revenues for the six months ended June 30, 1996, decreased
$207,315 from the comparable six months ended June 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 six months ended June 30, 1996, decreased
$1,464,636 from the six months ended June 30, 1995, due to the loss of
operations on the Diablo/Tamarack facility on August 1, 1995 and due to the loss
of operations on the Countryside facility on May 1, 1996. Interest income for
the six months ended June 30, 1996 increased $36,323 from the six months ended
June 30, 1995 primarily due to rising interest rates and increasing cash
available for investment.
Facility operating expenses for the six months ended June 30, 1996,
decreased by $1,266,552 from the comparable 1995 period primarily due to the
loss of operations of the Diablo/Tamarack and Countryside facilities.
Depreciation for the six months ended June 30, 1996, decreased $215,793 from the
comparable 1995 period and is primarily due to the loss of the Diablo/Tamarack,
Countryside and Heritage Manor facilities. Lease default expense decreased
$73,096 for the six months ended June 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, decreased $8,953
for the second quarter ended 1996 in comparison to the second quarter ended
1995. Bad debt expense for the six months ended June 30, 1996 increased $78,680
from the comparable 1995 period and is primarily due to additional bad debt
allowances on general partner advances to the Cambridge facility. Interest
expense and amortization for the six months ended June 30, 1996 decreased by
$389,601 and $39,308, respectively, from the comparable 1995 period, and is
primarily due to the loss of the Diablo/Tamarack, Countryside, and Heritage
Manor facilities.
During the second quarter 1996, the Partnership incurred a $637,528
gain on sale and $702,692 extraordinary gain on extinguishment of debt due to
the sale of the Countryside facility.
For the three months ended June 30, 1996 as compared with the three
months ended June 30, 1995, the Partnership's revenue was impacted by the same
shifts of revenue as discussed above. Similarly, a comparison of second quarter
1996 operating expenses versus second quarter 1995 reflects the same variances
as discussed above.
Cash and cash equivalents as of June 30, 1996 increased $1,257,219
over the balance at December 31, 1995. Increased cash for the six months ending
June 30, 1996 in comparison to 1995 is primarily due to improved operating cash
flow from discontinued operations of the Diablo/Tamarack facility and decreased
interest expense. Net accounts receivable of $73,967 at June 1996 reflected a
decrease of $136,442 over 1995 year-end balances. The decreased accounts
receivable balance at June 30, 1996 is primarily due to account receivable
collections at the Countryside facility. Accounts payable, accrued expenses, and
facility accounts payable balances decreased $660,477 at June 30, 1996, from
December 31, 1995 and is primarily due to the loss of operations of the
Diablo/Tamarack 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.
8
<PAGE>
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 will continue uninterrupted, but will be
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 Cedarbrook
note was extended through June 30, 1996. Registrant is currently negotiating
with the lender to further extend the Cedarbrook loan.
The lender of the Cane Creek note agreed to extend the 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.
9
<PAGE>
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 will be 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. At this time, the Registrant is preparing documentation to bring the
facility out of bankruptcy.
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 is engaged in litigation in an attempt to recover damages
from defaulting lessees and their guarantors. Such actions involve claims
against prior operators of the Diablo/Tamarack facility. In certain cases
counterclaims against Registrant have been either threatened or filed.
Registrant does not believe any materially adverse judgments 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.
10
<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 duly authorized.
HEALTHCARE PROPERTIES, L.P.
By: CAPITAL REALTY GROUP SENIOR HOUSING, INC.
General Partner
By: ______________________
Keith Johannessen
President
Date: August , 1996
11
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0000814458
<NAME> HEALTHCARE PROPERTIES, L.P.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 8,864,076
<SECURITIES> 0
<RECEIVABLES> 3,979,414
<ALLOWANCES> (3,905,447)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 36,135,836
<DEPRECIATION> (13,350,235)
<TOTAL-ASSETS> 32,375,465
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 23,965,722
<TOTAL-LIABILITY-AND-EQUITY> 32,375,465
<SALES> 0
<TOTAL-REVENUES> 3,986,976
<CGS> 0
<TOTAL-COSTS> 2,663,861
<OTHER-EXPENSES> 57,054
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 430,313
<INCOME-PRETAX> 835,748
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 702,692
<CHANGES> 0
<NET-INCOME> 1,538,440
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
