<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
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 0-17461
Southeastern Income Properties II Limited Partnership
-----------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Virginia 54-2839837
- --------------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Five Cambridge Center, Boston, MA 02142-1493
- --------------------------------------- ------------------------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (617) 234-3000
Indicate by check mark whether Registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
1 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
PART 1 - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets (Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
--------------------- --------------------
<S> <C> <C>
Assets
Real Estate, at cost:
Land $ 1,111,622 $ 1,930,156
Buildings and building improvements 11,914,289 14,200,144
Personal property 2,056,747 2,381,325
--------------------- --------------------
15,082,658 18,511,625
Less: Accumulated depreciation 5,841,644 6,606,923
--------------------- --------------------
9,241,014 11,904,702
Other Assets:
Cash and cash equivalents 4,293,215 1,160,850
Tenant security deposits 84,874 79,220
Deferred loan costs, net of accumulated amortization
of $176,432 (1998) and $157,032 (1997) 36,193 55,593
Other assets 546,967 436,258
--------------------- --------------------
Total Assets $ 14,202,263 $ 13,636,623
===================== ====================
Liabilities and Partners' Capital
Liabilities:
Mortgage note payable $ 3,926,701 $ 3,955,975
Prepaid rent 7,770 11,724
Accrued interest payable 32,400 32,400
Tenant security deposits payable 75,092 80,418
Accounts payable and accrued expenses 163,407 26,209
--------------------- --------------------
Total Liabilities 4,205,370 4,106,726
--------------------- --------------------
Partners' Capital:
General partner's equity 9,135 527
Special limited partner's deficit (1,137,445) (1,254,577)
Limited partner unit holders equity-
50,000 units authorized, 35,801 outstanding 11,125,203 10,783,947
--------------------- --------------------
Total Partners' Capital 9,996,893 9,529,897
--------------------- --------------------
Total Liabilities and Partners' Capital $ 14,202,263 $ 13,636,623
===================== ====================
</TABLE>
See notes to consolidated financial statements.
2 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statements of Operations (Unaudited)
<TABLE>
<CAPTION>
For the Nine Months Ended
September 30, September 30,
1998 1997
-------------------- ------------------
<S> <C> <C>
Revenues:
Rental $ 2,165,717 $ 2,685,243
Interest income 48,193 18,845
Other income 126,454 254,192
Gain on sale of property 511,367 -
-------------------- ------------------
Total revenues 2,851,731 2,958,280
-------------------- ------------------
Expenses:
Leasing 101,102 121,095
General and administrative 171,061 257,215
Management fees 133,425 168,654
Utilities 165,578 261,085
Repairs and maintenance 398,484 511,571
Insurance 88,814 116,775
Taxes 114,596 197,878
-------------------- ------------------
Total operating expenses 1,173,060 1,634,273
Other Expenses:
Partnership expense 59,864 133,216
Interest expense 282,632 437,746
Depreciation and amortization 471,390 629,541
-------------------- ------------------
Total expenses 1,986,946 2,834,776
-------------------- ------------------
Income before extraordinary item 864,785 123,504
Extraordinary gain on extinguishment of debt - 757,801
-------------------- ------------------
Net income $ 864,785 $ 881,305
==================== ==================
Net income allocated:
General Partner $ 8,648 $ 8,813
==================== ==================
Special Limited Partner $ 121,070 $ 123,383
==================== ==================
Limited Partners $ 735,067 $ 749,109
==================== ==================
Net income per limited partner unit:
Income before extraordinary item $ 20.53 $ 2.93
Extraordinary gain - 17.99
-------------------- ------------------
Net income allocated per unit $ 20.53 $ 20.92
==================== ==================
Distributions per unit:
Limited Partners $ 11.00 $ -
==================== ==================
</TABLE>
See notes to consolidated financial statements.
3 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statements of Operations (Unaudited)
<TABLE>
<CAPTION>
For The Three Months Ended
September 30, September 30,
1998 1997
-------------------- ------------------
<S> <C> <C>
Revenues:
Rental $ 685,832 $ 832,166
Interest income 30,347 14,169
Other income 31,563 125,035
Gain on sale of property 511,367 -
-------------------- ------------------
Total revenues 1,259,109 971,370
-------------------- ------------------
Expenses:
Leasing 30,483 37,310
General and administrative 60,722 87,218
Management fees 43,576 50,557
Utilities 55,130 76,643
Repairs and maintenance 151,303 165,249
Insurance 35,558 45,824
Taxes 15,831 48,633
-------------------- ------------------
Total operating expenses 392,603 511,434
Other Expenses:
Partnership expense 5,320 33,894
Interest expense 94,707 94,518
Depreciation and amortization 148,190 169,143
-------------------- ------------------
Total expenses 640,820 808,989
-------------------- ------------------
Income before extraordinary item 618,289 162,381
Extraordinary gain on extinguishment of debt - 757,801
-------------------- ------------------
Net income $ 618,289 $ 920,182
==================== ==================
Net income allocated:
General Partner $ 6,183 $ 9,202
==================== ==================
Special Limited Partner $ 86,560 $ 128,825
==================== ==================
Limited Partners $ 525,546 $ 782,155
==================== ==================
Net income per limited partner unit:
Income before extraordinary item $ 14.68 $ 3.85
Extraordinary gain - 17.99
-------------------- ------------------
Net income allocated per unit $ 14.68 $ 21.84
==================== ==================
</TABLE>
See notes to consolidated financial statements.
4 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statement of Partners' Capital (Unaudited)
<TABLE>
<CAPTION>
Units of Special
Limited General Limited Limited
Partnership Partner's Partner's Partners' Total
Interest Equity Deficit Equity Capital
----------------- --------------- ----------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
Balance - January 1, 1998 35,801 $ 527 $ (1,254,577) $ 10,783,947 $ 9,529,897
Distributions - (40) (3,938) (393,811) (397,789)
Net income - 8,648 121,070 735,067 864,785
----------------- --------------- ----------------- ---------------- ----------------
Balance - September 30, 1998 35,801 $ 9,135 $ (1,137,445) $ 11,125,203 $ 9,996,893
================= =============== ================= ================ ================
</TABLE>
See notes to consolidated financial statements.
5 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
Consolidated Statements of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
For The Nine Months Ended
September 30, September 30,
1998 1997
--------------------- ---------------------
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 864,785 $ 881,305
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 451,990 602,341
Amortization 19,400 27,200
Gain on disposal of property (511,367) (757,801)
Changes in assets and liabilities:
Tenant security deposits (5,654) 60,869
Other assets (145,469) (20,851)
Prepaid rent (3,954) -
Tenant security deposits payable (5,326) -
Accounts payable and accrued expenses 137,198 7,720
--------------------- ---------------------
Net cash provided by operating activities: 801,603 800,783
--------------------- ---------------------
Cash Flows From Investing Activities:
Net proceeds from sale of property 2,984,900 -
Additions to building and improvements (227,075) (298,597)
--------------------- ---------------------
Net cash provided by (used in) investing activities 2,757,825 (298,597)
--------------------- ---------------------
Cash Flows From Financing Activities:
Principal payments on mortgage note (29,274) (58,170)
Payment of deferred loan costs - (331)
Cash distributions paid to partners (397,789) -
--------------------- ---------------------
Net cash used in financing activities (427,063) (58,501)
--------------------- ---------------------
Net increase in cash and cash equivalents 3,132,365 443,685
Cash and cash equivalents, beginning of period 1,160,850 647,080
--------------------- ---------------------
Cash and cash equivalents, end of period $ 4,293,215 $ 1,090,765
===================== =====================
Supplemental Disclosure of Cash Flow
Information:
Cash paid for interest $ 282,632 $ 437,746
===================== =====================
Supplemental Disclosure of Non-Cash Investing
and Financing Activities:
Sale of property in 1998 - see Note 3
Extraordinary gain on extinguishment of debt in 1997 - see Note 4.
</TABLE>
See notes to consolidated financial statements.
6 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. General
The consolidated financial statements included herein have been
prepared by Southeastern Income Properties II Limited Partnership
(the "Partnership"), without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. The
Partnership's accounting and financial reporting policies conform
with generally accepted accounting principles and include
adjustments in interim periods considered necessary for a fair
presentation of the results of operations. All adjustments are of
a normal recurring nature except as discussed in Notes 3 and 4.
Certain information and footnote disclosures normally included in
consolidated financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations. It is suggested
that these consolidated financial statements be read in
conjunction with the consolidated financial statements and notes
thereto included in the Partnership's Annual Report on Form 10-KSB
for the year ended December 31, 1997. Certain amounts have been
reclassified to conform to the September 30, 1998 presentation.
The accompanying consolidated financial statements reflect the
Partnership's results of operations for an interim period and are
not necessarily indicative of the results of operations for the
year ending December 31, 1998.
2. Taxable Income
The Partnership's results of operations on a tax basis are
expected to differ from net income for financial reporting
purposes primarily due to the accounting differences in the
recognition of depreciation and amortization.
3. Gain on Sale of Property
On August 13, 1998, the Partnership sold its Copper Croft
Apartments property to an unaffiliated third party for a purchase
price of $3,200,000. After closing costs and adjustments of
$215,100, the Partnership received net proceeds of $2,984,900. For
financial reporting purposes, the sale resulted in a gain of
approximately $511,000.
4. Extraordinary Gain on Extinguishment of Debt
The mortgage loan on the Partnership's St. Michaels property
matured June 1, 1997. As a result of the principal balance on the
mortgage loan being in excess of the property's value, the
Partnership was unable to refinance such loan or sell the property
at a value sufficient to satisfy the loan. As a result, the
mortgage lender foreclosed on the property as of August 1, 1997.
The Partnership recognized an extraordinary gain on extinguishment
of debt of $757,801 during the nine months ended September 30,
1997.
5. Related Party Transactions
Asset management fees paid or accrued by the Partnership to
affiliates of the General Partner, totaled $16,297 and $25,461
during the nine months ended September 30, 1998 and 1997,
respectively, and are included in management fees.
7 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
6. Distribution
In April 1998, the Partnership distributed $397,789.
7. Pro Forma Financial Information
The following pro forma consolidated condensed statements of
operations for the nine months ended September 30, 1998 and 1997,
gives effect to the sale of the Copper Croft Apartments property
on August 13, 1998 and the foreclosure of the St. Michaels
property on August 1, 1997. The adjustments to the pro forma
condensed statements of operations assume the transactions were
completed at the beginning of the period presented.
These proforma adjustments are not necessarily reflective of the
results that actually would have occurred if the sale and
foreclosure had been in effect, as of, and for the period
presented or what may be achieved in the future.
Pro Forma Consolidated Condensed Statement of Operations
For the nine months ended September 30, 1998
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
-------------------- --------------------- --------------------
<S> <C> <C> <C>
Revenues:
Rental $ 2,165,717 $ (369,773) $ 1,795,944
Interest 48,193 - 48,193
Other 126,454 (33,004) 93,450
Gain on sale of property 511,367 (511,367) -
-------------------- --------------------- --------------------
Total revenues 2,851,731 (914,144) 1,937,587
-------------------- --------------------- --------------------
Expenses:
Operating expenses 1,232,924 (261,160) 971,764
Interest expense 282,632 - 282,632
Depreciation and amortization 471,390 (67,740) 403,650
-------------------- --------------------- --------------------
Total expenses 1,986,946 (328,900) 1,658,046
-------------------- --------------------- --------------------
Net Income $ 864,785 $ (585,244) $ 279,541
==================== ===================== ====================
Net income allocated:
General Partner $ 8,648 $ (5,853) $ 2,795
==================== ===================== ====================
Special Limited Partner $ 121,070 $ (81,934) $ 39,136
==================== ===================== ====================
Limited Partners $ 735,067 $ (497,457) $ 237,610
==================== ===================== ====================
Net income allocated per
limited partner unit:
Net income $ 20.53 $ (13.89) $ 6.64
==================== ===================== ====================
</TABLE>
8 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
7. Pro Forma Financial Information (Continued)
For the nine months ended September 30, 1997
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
-------------------- --------------------- --------------------
<S> <C> <C> <C>
Revenues:
Rental $ 2,685,243 $ (928,699) $ 1,756,544
Interest 18,845 (1,051) 17,794
Other 254,192 (149,266) 104,926
-------------------- --------------------- --------------------
Total revenues 2,958,280 (1,079,016) 1,879,264
-------------------- --------------------- --------------------
Expenses:
Operating expenses 1,767,489 (702,808) 1,064,681
Interest expense 437,746 (153,558) 284,188
Depreciation and amortization 629,541 (245,409) 384,132
-------------------- --------------------- --------------------
Total expenses 2,834,776 (1,101,775) 1,733,001
-------------------- --------------------- --------------------
Income before
extraordinary item 123,504 22,759 146,263
Extraordinary gain on
extinguishment of debt 757,801 (757,801) -
-------------------- --------------------- --------------------
Net Income $ 881,305 $ (735,042) $ 146,263
==================== ===================== ====================
Net income allocated:
General Partner $ 8,813 $ (7,350) $ 1,463
==================== ===================== ====================
Special Limited Partner $ 123,383 $ (102,906) $ 20,477
==================== ===================== ====================
Limited Partners $ 749,109 $ (624,786) $ 124,323
==================== ===================== ====================
Net income allocated per
limited partner unit:
Income before
extraordinary item $ 2.93 $ .54 $ 3.47
Extraordinary gain 17.99 (17.99) -
-------------------- --------------------- --------------------
Net income allocated per unit $ 20.92 $ (17.45) $ 3.47
==================== ===================== ====================
</TABLE>
9 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
Item 2. Management's Discussion and Analysis or Plan of Operation
Liquidity and Capital Resources
The matters discussed in this Form 10-QSB contain certain
forward-looking statements and involve risks and uncertainties
(including changing market conditions, competitive and regulatory
matters, etc.) The discussion of the Partnership's business and
results of operations, including forward-looking statements
pertaining to such matters, does not take into account the effects
of any changes to the Partnership's business and results of
operations. Accordingly, actual results could differ materially
from those projected in the forward-looking statements as a result
of a number of factors, including those identified herein.
The Partnership receives rental income from its properties and is
responsible for operating expenses, administrative expenses,
capital improvements and debt service payments. The Partnership's
remaining properties, which are residential apartment complexes
located in Virginia and North Carolina, are leased to tenants who
are subject to leases of up to one year.
The Partnership had $4,293,215 of cash and cash equivalents at
September 30, 1998. The increase of $3,132,365 in cash and cash
equivalents at September 30, 1998 as compared to December 31, 1997
was due to $801,603 of cash provided by operating activities and
$2,757,825 of cash provided by investing activities, which were
partially offset by $427,063 of distributions to partners and
principal payments on the mortgage note.
Net cash provided by operating activities increased primarily due
to the improved net income of the properties. All other increases
(decreases) in certain operating assets and liabilities are the
result of the timing of receipt and payment of various activities.
Net cash provided by investing activities consisted of $2,984,900
in net proceeds from the sale of the Partnership's Copper Croft
Apartments property ("Copper Croft") which was partially offset by
$227,075 in improvements to real estate.
It is expected that future rental revenue and other income from
the Partnership's remaining properties will continue to be
sufficient to cover all administrative expenses of the Partnership
and all operating expenses and debt service of the properties, as
well as necessary capital expenditures. As a result of the
continued capital improvements, it is expected that cash available
for distribution will remain limited. Future distribution levels
will be reviewed on a quarterly basis. In April 1998, the
Partnership distributed $397,789 from operations.
The Partnership has invested, and expects to continue to invest,
its unrestricted cash in money market instruments until required
for Partnership purposes. As of September 30, 1998, the
Partnership had $404,812 in reserves held by the mortgage lender,
the use of which is restricted for capital improvements to Hunters
Creek Apartments. Therefore, as of September 30, 1998, the
Partnership has total reserves of $4,698,027, which is expected to
be sufficient to satisfy working capital requirements of the
Partnership. The Partnership, as required by its partnership
agreement, must retain as working capital reserves an amount equal
to at least 1% of capital contributions of the unit holders.
The Partnership is in the process of reviewing the status of all
the properties with a view towards disposing of all its
properties, depending on property operations and market
conditions. In this regard, the Partnership sold its Copper Croft
property on August 13, 1998 and the Partnership's
10 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
Item 2. Management's Discussion and Analysis or Plan of Operation
(Continued)
Liquidity and Capital Resources (Continued)
Greenbryre Apartments property is currently under contract for
sale. The Partnership sold Copper Croft to an unaffiliated third
party for a purchase price of $3,200,000. For financial reporting
purposes, the sale resulted in a gain of $511,367. In addition,
the mortgage loan on the St. Michaels property ("St. Michaels")
matured June 1, 1997. As a result of the principal balance on the
mortgage loan being in excess of the property's value, the
Partnership was unable to refinance such loan or sell the property
at a value sufficient to satisfy the loan. As a result, the
mortgage lender foreclosed on the property as of August 1, 1997.
The Partnership recognized an extraordinary gain on extinguishment
of debt of $757,801 in 1997.
With respect to the pending sale of Greenbryre Apartments, it is
expected that the closing of this sale will occur in November
1998. The anticipated net sales proceeds from the sale is expected
to be approximately $5,100,000. There can be no assurance,
however, that the sale will be consummated, or if consummated, at
the current contract terms.
The Partnership is dependent upon the General Partner and the
managing agent for management and administrative services. The
General Partner and the managing agent have completed assessments
and believe that their computer systems will function properly
with respect to dates in the year 2000 and thereafter (the "Year
2000 Issue"). Accordingly, it is not expected that the Partnership
will incur any material costs associated with, or be materially
affected by, the Year 2000 Issue.
Results of Operations
The Partnership's net income for the nine months ended September
30, 1998 was $864,785, as compared to net income of $881,305 for
the nine months ended September 30, 1997. With respect to the
remaining properties, net income increased $133,278, from $146,263
in 1997 to $279,541 in 1998. The increase in net income was due to
improved operating results at the Partnership's two remaining
properties.
Total income decreased to $2,851,731 for the nine months ended
September 30, 1998 as compared to $2,958,280 for the nine months
ended September 30, 1997. Rental income decreased from $2,685,243
for the nine months ended September 30, 1997 to $2,165,717 for the
nine months ended September 30, 1998 as a result of the sale of
Copper Croft in August 1998 and the loss through foreclosure of
St. Michaels in August 1997. Rental revenue for the remaining
properties, however, increased by $39,400 for the first nine
months of 1998 as compared to the first nine months of 1997, due
to increased rental rates and stable occupancy. Average occupancy
at the remaining properties was 89% for the comparable periods.
Similarly, other income decreased by $127,738 as a result of the
sale of Copper Croft and the loss of St. Michaels. Other income
decreased by $11,476 at the Partnership's remaining properties.
Interest income increased as a result of higher average cash
balance available for investment.
Expenses declined from $1,634,273 for the nine months ended
September 30, 1997 to $1,173,060 for the nine months ended
September 30, 1998 primarily due to the St. Michaels foreclosure
and the sale of Copper Croft. The remaining properties' operating
expenses decreased approximately $93,000 due to a decrease in
repairs and maintenance expenditures. Depreciation expense
increased primarily due to the effect of current and prior years
fixed asset additions. Interest expense remained relatively
constant.
11 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10 - QSB SEPTEMBER 30, 1998
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27. Financial Data Schedule
(b) Reports of Form 8-K:
A Form 8-K was filed on August 14, 1998 to report the sale of
the Partnership's Copper Croft Apartments property.
12 of 13
<PAGE>
SOUTHEASTERN INCOME PROPERTIES II LIMITED PARTNERSHIP
FORM 10-QSB SEPTEMBER 30, 1998
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SOUTHEASTERN INCOME PROPERTIES II
LIMITED PARTNERSHIP
By: Winthrop Southeastern Limited Partnership
Its General Partner
By: Eight Winthrop Properties, Inc.,
Its General Partner
By: /s/ Michael L. Ashner
------------------------
Michael L. Ashner
Chief Executive Officer
By: /s/ Edward V. Williams
------------------------
Edward V. Williams
Chief Financial Officer
Dated: November 19, 1998
13 of 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Southeastern
Income Properties II Limited Partnership and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 4,293,215
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 15,082,658
<DEPRECIATION> 5,841,644
<TOTAL-ASSETS> 14,202,263
<CURRENT-LIABILITIES> 0
<BONDS> 3,926,701
<COMMON> 0
0
0
<OTHER-SE> 9,996,893
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 2,851,731<F1>
<CGS> 0
<TOTAL-COSTS> 1,644,450
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 282,632
<INCOME-PRETAX> 864,785
<INCOME-TAX> 0
<INCOME-CONTINUING> 864,785
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 864,785
<EPS-PRIMARY> 20.53
<EPS-DILUTED> 20.53
<FN>
<F1>
Revenues include gain on sale of property of $511,367.
</FN>
</TABLE>
