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, 1999
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>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
(A Delaware Limited Partnership)
CONSOLIDATED BALANCE SHEETS
---------------------------
June 30, 1999 December 31, 1998
------------- -----------------
(Unaudited)
-----------
ASSETS
------
<S> <C> <C>
Cash and cash equivalents $ 12,304,132 $ 11,971,405
Accounts receivable, less allowance for doubtful
accounts of $716,042 in 1999 and $686,042 in 1998 1,424,735 843,332
Prepaid expenses and other 35,399 36,605
Property and improvements, net 18,965,266 19,598,117
Deferred charges, less accumulated amortization
of $1,031,963 in 1999 and $981,895 in 1998 256,931 309,499
---------------- ----------------
$ 32,986,463 $ 32,758,958
================ ================
LIABILITIES AND PARTNERSHIP EQUITY
----------------------------------
Accounts payable and accrued expenses $ 613,940 $ 606,044
Operating facility accounts payable 154,426 102,665
Mortgage loans payable 5,817,933 6,128,656
--------------- ----------------
6,586,299 6,837,365
--------------- ----------------
Partnership equity:
Limited partners (4,148,325 units outstanding in 1999 and 1998)
26,328,116 25,869,116
General partner 72,048 52,477
--------------- ----------------
26,400,164 25,921,593
--------------- ----------------
$ 32,986,463 $ 32,758,958
=============== ================
</TABLE>
See notes to financial statements
1
<PAGE>
<TABLE>
<CAPTION>
HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(Unaudited)
Three months ended, Three months ended,
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
Revenues:
Rental $ 1,102,271 $ 1,063,469
Net patient services 1,370,147 1,163,961
--------------- ---------------
2,472,418 2,227,430
--------------- ---------------
Expenses:
Facility operating expenses 1,149,654 1,147,288
Depreciation 322,382 326,579
Administrative and other 332,046 348,120
Bad debts 15,000 15,000
--------------- ---------------
1,819,082 1,836,987
--------------- ---------------
Income from operations 653,336 390,443
--------------- ---------------
Other income (expenses):
Interest income 131,049 126,705
Interest expense (147,677) (160,423)
Amortization (26,284) (26,384)
--------------- ---------------
(42,912) (60,102)
--------------- ---------------
Net income $ 610,424 $ 330,341
=============== ===============
NET INCOME PER LIMITED $ .15 $ .08
PARTNERSHIP UNIT =============== ===============
WEIGHTED AVERAGE
NUMBER OF UNITS 4,148,325 4,156,240
=============== ===============
</TABLE>
See notes to financial statements
2
<PAGE>
<TABLE>
<CAPTION>
HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(Unaudited)
Six months ended, Six months ended,
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
Revenues:
Rental $ 2,195,042 $ 2,130,970
Net patient services 2,585,654 2,148,881
--------------- ---------------
4,780,696 4,279,851
--------------- ---------------
Expenses:
Facility operating expenses 2,312,230 2,255,645
Depreciation 644,620 651,943
Administrative and other 729,070 678,043
Bad debts 30,000 30,000
--------------- ---------------
3,715,920 3,615,631
--------------- ---------------
Income from operations 1,064,776 664,220
--------------- ---------------
Other income (expenses):
Interest income 264,514 240,149
Interest expense (298,176) (323,390)
Amortization (52,568) (52,366)
--------------- ---------------
(86,230) (135,607)
--------------- ---------------
Net income $ 978,546 $ 528,613
=============== ===============
NET INCOME PER LIMITED $ .24 $ .13
PARTNERSHIP UNIT =============== ===============
WEIGHTED AVERAGE
NUMBER OF UNITS 4,148,325 4,156,240
=============== ===============
</TABLE>
See notes to financial statements
3
<PAGE>
<TABLE>
<CAPTION>
HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF PARTNERSHIP EQUITY
---------------------------------------------
Limited General
Partners Partners Total
-------- -------- -----
<S> <C> <C> <C>
Allocation of Net Income 98% 2% 100%
=== == ====
EQUITY at
December 31, 1998 $ 25,869,116 $ 52,477 $ 25,921,593
Distributions (499,975) 0 (499,975)
Net Income 958,975 19,571 978,546
-------------- ------------ --------------
EQUITY at
June 30, 1999- Unaudited $ 26,328,116 $ 72,048 $ 26,400,164
============== ============ ==============
</TABLE>
See notes to financial statements
4
<PAGE>
<TABLE>
<CAPTION>
HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(Unaudited)
Six months ended Six months ended
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 978,546 $ 528,613
Adjustments to reconcile net income to
net cash provided by operating activities:
Bad debts 30,000 30,000
Depreciation and amortization 697,188 704,309
Changes in assets and liabilities:
Accounts receivable (611,403) (70,230)
Prepaid expenses 1,206 21,255
Accounts payable &
accrued expenses 59,657 (101,247)
------------- -------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 1,155,194 1,112,700
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and improvement (11,769) (78,789)
------------- -------------
NET CASH USED IN
INVESTING ACTIVITIES (11,769) (78,789)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgage loans payable (310,723) (277,432)
Repurchased limited partner units 0 (144,791)
Increase in deferred changes 0 (9,062)
Distributions (499,975) 0
------------- -------------
NET CASH USED IN
FINANCING ACTIVITIES (810,698) (431,285)
------------- -------------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 332,727 602,626
CASH AND CASH EQUIVALENTS
Beginning of Period 11,971,405 10,722,118
------------- -------------
CASH AND CASH EQUIVALENTS
End of Period $ 12,304,132 $ 11,324,744
------------- =============
CASH PAID FOR INTEREST $ 298,176 $ 323,390
============= =============
</TABLE>
See notes to financial statements
5
<PAGE>
HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
(A Delaware Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
June 30, 1999 AND 1998
(Unaudited)
A. ACCOUNTING POLICIES
-------------------
The accompanying unaudited condensed consolidated 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, 1999. 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, 1998.
B. TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES OF THE GENERAL
----------------------------------------------------------------------
PARTNER
-------
Personnel working at the Cambridge facility and certain home office
personnel who perform services for the Registrant are employees of Capital
Senior Living, Inc. ("CSL"), which was until June 10, 1998, an affiliate of
Capital Realty Group Senior Housing, Inc. ("CRGSH"), the General Partner of the
Registrant. The Registrant reimburses CSL for the salaries, related benefits,
and overhead reimbursements of such personnel as reflected in the accompanying
financial statements. Reimbursements and fees paid to CRGSH and CSL are as
follows:
<TABLE>
<CAPTION>
Six months ended Six months ended
June 30, 1999 June 30, 1998
<S> <C> <C>
Salary and benefit reimbursements $ 1,513,483 $ 1,532,161
Administrative reimbursements 82,785 64,579
Asset management fees 234,000 275,567
Property management fees 178,053 150,072
General partner fees 47,387 42,749
-------------- --------------
$ 2,055,708 $ 2,065,128
============== ==============
</TABLE>
Currently, Capital Senior Living Properties, Inc., formerly an
affiliate of CRGSH, holds approximately 57% of the outstanding units of the
Registrant. The Registrant is included in the consolidated financial statements
of Capital Senior Living Properties, Inc. and its parent company, Capital Senior
Living Corporation, a public company that files with the Securities and Exchange
Commission.
On June 10, 1998, the sole owner of the General Partner, Capital Realty
Group Corporation, sold all of its shares of CRGSH common stock to Retirement
Associates, Inc. ("Associates") for $855,000. The source of the funds was a
Promissory Note for $855,000 with a five-year term and bearing an interest rate
of 10% per annum. The interest accrues on the Promissory Note and be payable at
the maturity of the Promissory Note. Associates is the maker of the Note and
Capital Realty Group Corporation is the payee. Mr. Robert Lankford is the
President of Associates and has brokered and continues to broker real estate as
an independent contractor with affiliates of Capital Senior Living Corporation.
6
<PAGE>
C. VALUATION OF RENTAL PROPERTY
----------------------------
Generally accepted accounting principles require that the Registrant
evaluate whether an event or circumstance has occurred that would indicate that
the estimated undiscounted future cash flows of its properties, taken
individually, will be less than the respective net book value of the properties.
If such a shortfall exists and is material, then a write-down to fair value is
recorded. The Registrant performs such evaluations on an on-going basis. During
the six months ended June 30, 1999, based on the Registrant's evaluation of the
properties, the Registrant did not record any impairment.
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.
All of the net proceeds of the offering were originally invested in 12
properties or used for working capital reserves. The Registrant partially
financed the acquisition of eight of its original properties with non-recourse
debt. Four properties were initially unleveraged. As of March 31, 1999, four of
the original twelve properties had either been sold or deeded back to the
lender, leaving the Registrant with four properties secured by debt and four
properties unleveraged. With the exception of the Cambridge facility, which is
operated by the Registrant and consequently not leased to a third party
operator, the initial term of the seven properties with long-term net leases to
third party operators are due to expire in the years 2000 and 2001. Such leases
are subject to renewal and purchase options.
Potential sources of liquidity for Registrant include current holdings
of cash and cash equivalents, 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 June 30, 1999, Registrant had cash and cash equivalents
aggregating $12,304,132. The cash and cash equivalents will be used for working
capital and emergency reserves.
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. In the
event 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. Future cash distributions will be
dependent on the status of future operational control of these properties.
$250,000, $325,000, and $499,975 in cash distributions were made in June 1993,
July 1997, and April 1999, respectively. The Units are not publicly traded and
as a result the liquidity of each Limited Partner's individual investment is
limited. During 1998, the Registrant, in response to requests by holders of
units, repurchased 24,132 Units for a total amount of $144,791.
7
<PAGE>
Results of Operations
- ---------------------
Discussion of Six Months Ending June 30, 1999
---------------------------------------------
Rental revenues for the six months ended June 30, 1999 increased
$64,072 from the comparable six months ended June 30, 1998, due to increased
revenue participation from leased facilities. Net patient services for the six
months ended June 30, 1999 increased $436,773 from the six months ended June 30,
1998, and was primarily due to a 1998 Medicare charge of $139,000 and higher
reimbursement rates at the Cambridge facility. Interest income for the six
months ended June 30, 1999 increased $24,365 from the six months ended June 30,
1998 and was primarily due to increasing cash available for investment.
Facility operating expenses for the six months ended June 30, 1999
increased by $56,585 from the comparable 1998 period and is primarily due to
increased salaries and benefits at the Cambridge facility. Depreciation for the
six months ended June 30, 1999, decreased $7,323 from the comparable 1998
period. Administrative expenses increased $51,027 for the six months ended June
30, 1999 in comparison to 1998 and is primarily due to increased professional
fees incurred related to litigation on the McCurdy facility. There was no change
in bad debt expense for the six months ended June 30, 1999 in comparison to the
1998 period. Interest expense for the six months ended June 30, 1999 decreased
by $25,214 from the comparable 1998 period. Amortization expense for the six
months ended June 30, 1999 slightly increased $202 from the comparable 1998
period.
For the three months ended June 30, 1999 as compared with the three
months ended June 30, 1998, Registrant's revenue was impacted by the same shifts
of revenue as discussed above. Similarly, a comparison of second quarter 1999
operating expenses versus second quarter 1998 reflects the same variances as
discussed above with the exception of a decrease of $16,074 in administrative
and other expenses and a decrease of $100 in amortization expense for the three
months ended June 30, 1999 from the comparable 1998 period.
Cash and cash equivalents as of June 30, 1999 increased $332,727 over
the balance at December 31, 1998. Cash decreased by $269,899 for the six months
ending June 30, 1999 in comparison to 1998 primarily due to increased accounts
receivable at the Cambridge facility and a distribution made in April 1999. Net
accounts receivable of $1,424,735 at June 30, 1999 reflected an increase of
$581,403 over 1998 year-end balances and is due to delayed collection of
Medicaid and Medicare claims from the Cambridge facility. Accounts payable,
accrued expenses, and facility accounts payable balances increased $59,657 at
June 30, 1999, from December 31, 1998 and is primarily due to the increase in
operating payables at the Cambridge facility.
The following is a brief discussion of the status of Registrant's
properties:
Cedarbrook, Cane Creek, Crenshaw Creek and Sandybrook facilities.
Rebound, Inc. (a subsidiary of HealthSouth Corporation) leases the Cedarbrook,
Cane Creek, Crenshaw Creek and Sandybrook properties pursuant to a master lease
with the Registrant.
Due to low occupancy of the Sandybrook facility, it was closed in 1994.
Rental payments in March and April 1995 were discontinued by HealthSouth
Corporation ("HealthSouth") causing an interruption in the master lease.
Registrant met with HealthSouth 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. In February 1997, the Registrant was notified by
HealthSouth of the closing of the Cedarbrook facility due to the low occupancy.
HealthSouth has continued to make lease payments on a timely basis.
Effective August 5, 1999, HealthSouth agreed to transfer control of the
Cedarbrook and Sandybrook facilities to the Registrant. HealthSouth agreed,
however, to continue making its full lease payments to the Registrant with no
reduction in payment. The Registrant will explore its options with regard to
these properties, including the possibility of a sale of these assets.
8
<PAGE>
Two recourse loans, Cedarbrook and Cane Creek, were due in January 1996
in the aggregate amount of approximately $2,400,000. Both of these notes were
callable by the lenders at any time between January 1, 1993 and November 30,
1995; however, the lenders agreed not to exercise their call rights prior to
maturity on January 31, 1996 as long as the Partnership remained in compliance
with the loan agreements. Both of the lenders agreed to extend the maturity date
of their notes to December 1, 2001, pending completion of final loan documents.
The Registrant continues to make its loan payments under those two loans, though
with the transfer of control of Cedarbrook back to Registrant, it may be
required to pay the outstanding balance on the mortgage obligations.
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
of NCAC.
On August 1, 1996, the United States Bankruptcy Court approved the
transfer of the operations of NCA Cambridge Nursing Home to Cambridge Nursing
Home, LLC, a subsidiary of the Registrant, thereby releasing the operations of
the facility from the jurisdiction of the United States Bankruptcy Court. A
subsidiary of Registrant now operates this property.
Registrant has filed an administrative claim with the trustee of the
United States Bankruptcy Court for unpaid lease payments.
Trinity Hills, McCurdy, and Hearthstone facilities. The Trinity Hills
and Hearthstone lessees are current in their lease obligations to the
Registrant. In addition, the Registrant believes it likely that one 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. Only Hearthstone appears to be generating
cash flow sufficient to fund their lease obligations. Trinity Hills is, at this
time, not generating sufficient cash flow to fund its lease obligations from
property operations. However, the lessee at Trinity Hills continues to fund the
deficits and its lease payments. On August 5, 1999, the lessees of the McCurdy
facility verbally told management of the Registrant that because of the recent
poor financial condition of their facility, they would be unable to make a full
lease payment to Registrant. The Registrant is exploring its options in light of
this event which could include taking over the operations of this facility
immediately and/or selling this facility.
Year 2000 Issue
- ---------------
The Year 2000 Issue is the result of computer programs being written using two
digits rather than four to define the applicable year. Any of the Registrant's
computer programs or hardware that have date-sensitive software or embedded
chips may recognize the year 2000 as a date other than the year 2000. This could
result in a system failure or miscalculations causing disruptions of operations,
including, among other things, a temporary inability to process transactions,
send invoices, or engage in similar normal business activities. Based on ongoing
assessments, the Registrant has developed a program to modify or replace
significant portions of its software and certain hardware, which are generally
PC-based systems, so that those systems will properly utilize dates beyond
December 31, 1999. The Registrant substantially completed software reprogramming
and software and hardware replacement by December 31, 1998, with 100% completion
targeted for September 30, 1999. The Registrant presently believes that these
modifications and replacements of existing software and certain hardware will
mitigate the Year 2000 Issue. However, if such modifications and replacements
are not completed timely, the Year 2000 Issue could have a material impact on
the operations of the Registrant.
The Registrant has assessed its exposure to operating equipment, and such
exposure is not significant due to the nature of the Registrant's business.
Registrant is not aware of any external agent with a Year 2000 Issue that would
materially impact the Registrant's results of operations, liquidity, or capital
9
<PAGE>
resources. However, the Registrant has no means of determining whether or
ensuring that external agents will be year 2000 ready. The inability of external
agents to complete their year 2000 resolution process in a timely fashion could
materially impact the Registrant.
Management of the Registrant believes it has an effective program in place to
resolve the Year 2000 Issue in a timely manner. As noted above, the Registrant
has completed most but not all necessary phases of its year 2000 program. In the
event that the Registrant does not complete the current program or any
additional phases, the Registrant could incur disruptions to its operations.
Also, the Registrant has not been notified of any Year 2000 Issues with its
triple-net lessees. The inability of these lessees to complete their year 2000
resolution process in a timely fashion could materially impact the Registrant.
In addition, disruptions in the economy generally resulting from Year 2000
Issues could also materially adversely affect the Registrant. The Registrant
could be subject to litigation for computer systems failure. The amount of
potential liability and lost revenue cannot be reasonably estimated at this
time.
The Registrant currently has no contingency plans in place in the event it does
not complete all phases of its year 2000 program. The Registrant plans to
evaluate the status of completion in mid 1999 and determine whether such a plan
is necessary.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
----------------------------------------------------------
The Registrant's primary market risk exposure is from fluctuations in
interest rates and the effects of those fluctuations on the market values of its
cash equivalent short-term investments and floating interest rates on two
recourse loans. The cash equivalent short-term investments consist primarily of
overnight investments that are not significantly exposed to interest rate risk,
except to the extent that changes in interest rates will ultimately affect the
amount of interest income earned on these investments. Two of the Partnership's
recourse loans are subject to a floating interest rate determined by bank prime
rates, which are subject to market fluctuations in the lending markets. Changes
in debt interest rates will ultimately affect the amount of interest expense
accrued on these loans.
10
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
On June 17, 1998, Registrant filed a lawsuit in Dallas County against the lessee
of the McCurdy facility. The complaint sought a declaratory judgment affirming
that the lessee of the McCurdy facility ("the lessee") cannot exercise its
option to purchase the McCurdy facility until the end of its term in October
2001. The lessee had threatened to exercise this option immediately (subject to
a final determination of value). The lessee sought to dismiss this Dallas County
action based on jurisdictional grounds and this dismissal was granted on
November 6, 1998. On November 6, 1998, the Registrant was informed that the
lessee had filed a complaint for declaratory judgment in Evansville, Indiana
seeking to exercise its option to purchase the McCurdy facility. The Registrant
is vigorously challenging this action. On May 13, 1999, the parties entered into
a Stipulation to Stay Litigation without Prejudice and are attempting to
negotiate a resolution to this dispute. The parties are currently continuing
these negotiations. There is no guarantee these negotiations will be successful.
Item 2. Changes in Securities
---------------------
None.
Item 3. Defaults Upon Senior Securities
-------------------------------
None.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
None.
Item 5. Other Information
-----------------
None.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(A) Exhibit:
27.1 Financial Data Schedule
(B) Reports on Form 8-K
None.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HEALTHCARE PROPERTIES, L.P.
By: CAPITAL REALTY GROUP SENIOR HOUSING, INC.
General Partner
By: /s/ Robert Lankford
------------------------
Robert Lankford
President
Date: August 13, 1999
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Financial Data Sheet for Healthcare Properties, L.P.
</LEGEND>
<CIK> 0000814458
<NAME> HEALTHCARE PROPERTIES, L.P.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<EXCHANGE-RATE> 1
<CASH> 12,304,132
<SECURITIES> 0
<RECEIVABLES> 2,140,777
<ALLOWANCES> (716,042)
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 34,134,714
<DEPRECIATION> (15,169,448)
<TOTAL-ASSETS> 32,986,463
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 26,400,164
<TOTAL-LIABILITY-AND-EQUITY> 32,986,463
<SALES> 0
<TOTAL-REVENUES> 5,045,210
<CGS> 0
<TOTAL-COSTS> 3,715,920
<OTHER-EXPENSES> 52,568
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 298,176
<INCOME-PRETAX> 978,546
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 978,546
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
