<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[XX] 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
For the transition period from to
------------------------- -----------------------
-------------------------
For Quarter Ended June 30, 1996 Commission File No. 0-18367
American Income Partners IV-D Limited Partnership
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-3036130
- -------------------------------- --------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
98 North Washington Street, Boston, MA 02114
- ---------------------------------------- --------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 854-5800
----------------------------
- ------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
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 the past 90 days. Yes X No
------ ------
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court 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 No
------ ------
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statement of Financial Position
at June 30, 1996 and December 31, 1995 3
Statement of Operations for the three and six
months ended June 30, 1996 and 1995 4
Statement of Cash Flows for the six months
ended June 30, 1996 and 1995 5
Notes to the Financial Statements 6-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-12
PART II. OTHER INFORMATION:
Items 1 - 6 13
</TABLE>
2
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
STATEMENT OF FINANCIAL POSITION
June 30, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
----------- ------------
<S> <C> <C>
ASSETS
- -------
Cash and cash equivalents $1,492,442 $2,000,212
Rents receivable, net of allowance
for doubtful accounts
of $75,000 at December 31, 1995 285,383 291,960
Accounts receivable - affiliate 173,965 213,685
Equipment at cost, net of accumulated
depreciation of $11,070,368 and
$10,767,778 at June 30, 1996 and
December 31, 1995, respectively 5,517,209 5,982,429
---------- ----------
Total assets $7,468,999 $8,488,286
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Notes payable $1,785,820 $2,095,524
Accrued interest 27,790 29,643
Accrued liabilities 12,500 20,000
Accrued liabilities - affiliate 16,468 --
Deferred rental income 200 11,551
Cash distributions payable to partners 685,569 685,569
---------- ----------
Total liabilities 2,528,347 2,842,287
---------- ----------
Partners' capital (deficit):
General Partners (189,239) (182,186)
Limited Partnership Interests
(1,085,941 Units; initial purchase
price of $25 each) 5,129,891 5,828,185
---------- ----------
Total partners' capital 4,940,652 5,645,999
---------- ----------
Total liabilities and partners'
capital $7,468,999 $8,488,286
========== ==========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
3
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
STATEMENT OF OPERATIONS
for the three and six months ended June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
-------------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
Income:
Lease revenue $653,830 $755,110 $1,230,482 $1,416,055
Interest income 23,532 33,631 47,348 66,011
Gain on sale of equipment 5,436 139,228 12,436 389,786
-------- -------- ---------- ----------
Total income 682,798 927,969 1,290,266 1,871,852
-------- -------- ---------- ----------
Expenses:
Depreciation 231,602 316,125 464,357 696,015
Interest expense 29,365 107,305 61,711 146,173
Equipment management fees
- affiliate 32,691 37,756 61,524 70,803
Operating expenses - affiliate - 19,579 43,180 36,883 82,306
affiliate -------- -------- ---------- ----------
Total expenses 313,237 504,366 624,475 995,297
-------- -------- ---------- ----------
Net income $369,561 $423,603 $ 665,791 $ 876,555
======== ======== ========== ==========
Net income
per limited partnership unit $ 0.34 $ 0.39 $ 0.61 $ 0.80
======== ======== ========== ==========
Cash distributions declared
per limited partnership unit $ 0.63 $ 0.63 $ 1.25 $ 1.25
======== ======== ========== ==========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
4
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
STATEMENT OF CASH FLOWS
for the six months ended June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
Cash flows from (used in) operating
activities:
Net income $ 665,791 $ 876,555
Adjustments to reconcile net income to
net cash from operating activities:
Depreciation 464,357 696,015
Gain on sale of equipment (12,436) (389,786)
Decrease in allowance for
doubtful accounts (75,000)
Changes in assets and liabilities
Decrease (increase) in:
rents receivable 81,577 153,207
accounts receivable - affiliate 39,720 (192,665)
Increase (decrease) in:
accrued interest (1,853) 8,537
accrued liabilities (7,500) (500)
accrued liabilities - affiliate 16,468 4,433
deferred rental income (11,351) (12,621)
----------- -----------
Net cash from operating
activities 1,159,773 1,143,175
----------- -----------
Cash flows from investing activities:
Proceeds from equipment sales 13,299 459,494
----------- -----------
Net cash from investing
activities 13,299 459,494
----------- -----------
Cash flows used in financing activities:
Principal payments - notes payable (309,704) (469,810)
Distributions paid (1,371,138) (1,371,138)
----------- -----------
Net cash used in financing
activities (1,680,842) (1,840,948)
----------- -----------
Net decrease in cash and cash
equivalents (507,770) (238,279)
Cash and cash equivalents at beginning
of period 2,000,212 2,441,119
----------- -----------
Cash and cash equivalents at end of
period $ 1,492,442 $ 2,202,840
=========== ===========
Supplemental disclosure of cash flow
information:
Cash paid during the period for
interest $ 63,564 $ 137,636
=========== ===========
</TABLE>
The accompanying notes are an integral part
of these financial statements.
5
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
Notes to the Financial Statements
June 30, 1996
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The financial statements presented herein are prepared in conformity with
generally accepted accounting principles and the instructions for preparing Form
10-Q under Rule 10-01 of Regulation S-X of the Securities and Exchange
Commission and are unaudited. As such, these financial statements do not
include all information and footnote disclosures required under generally
accepted accounting principles for complete financial statements and,
accordingly, the accompanying financial statements should be read in conjunction
with the footnotes presented in the 1995 Annual Report. Except as disclosed
herein, there has been no material change to the information presented in the
footnotes to the 1995 Annual Report.
In the opinion of management, all adjustments (consisting of normal and
recurring adjustments) considered necessary to present fairly the financial
position at June 30, 1996 and December 31, 1995 and results of operations for
the three and six month periods ended June 30, 1996 and 1995 have been made and
are reflected.
NOTE 2 - CASH
- -------------
At June 30, 1996, the Partnership had $1,485,000 invested in reverse
repurchase agreements secured by U.S. Treasury Bills or interests in U.S.
Government securities.
NOTE 3 - REVENUE RECOGNITION
- ----------------------------
Rents are payable to the Partnership monthly, quarterly or semi-annually and
no significant amounts are calculated on factors other than the passage of time.
The leases are accounted for as operating leases and are noncancellable. Rents
received prior to their due dates are deferred. Future minimum rents of
$7,628,040 are due as follows:
<TABLE>
<S> <C> <C>
For the year ending June 30, 1997 $1,799,554
1998 1,681,434
1999 1,368,531
2000 617,449
2001 617,449
Thereafter 1,543,623
-----------
Total $7,628,040
===========
</TABLE>
NOTE 4 - EQUIPMENT
- ------------------
The following is a summary of equipment owned by the Partnership at June 30,
1996. In the opinion of American Finance Group ("AFG"), the acquisition cost of
the equipment did not exceed its fair market value.
6
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
Notes to the Financial Statements
(Continued)
<TABLE>
<CAPTION>
Lease Term Equipment
Equipment Type (Months) at Cost
- -------------- ------------ ---------
<S> <C> <C>
Vessels 57-72 $ 6,412,930
Locomotives 21-120 4,787,949
Materials handling 3-60 2,693,802
Computers and peripherals 18-60 1,004,073
Construction and mining 6-60 469,477
Graphics, printing and display 24 390,511
Motor vehicles 12-60 360,547
Manufacturing 36-60 155,954
Tractors and heavy duty trucks 1-78 146,947
Communications 12-60 101,473
Photocopying 1-36 41,630
Research and test 30-78 22,284
------------
Total equipment cost 16,587,577
Accumulated depreciation (11,070,368)
------------
Equipment, net of accumulated depreciation $ 5,517,209
============
</TABLE>
At June 30, 1996, the Partnership's equipment portfolio included equipment
having a proportionate original cost of $11,200,873, representing approximately
68% of total equipment cost.
The summary above includes equipment with an original cost and net book value
of approximately $136,000 and $2,000, respectively, which was not subject to an
active lease agreement.
NOTE 5 - RELATED PARTY TRANSACTIONS
- -----------------------------------
All operating expenses incurred by the Partnership are paid by AFG on behalf
of the Partnership and AFG is reimbursed at its actual cost for such
expenditures. Fees and other costs incurred during each of the six month
periods ended June 30, 1996 and 1995, which were paid or accrued by the
Partnership to AFG or its Affiliates, are as follows:
<TABLE>
<CAPTION>
1996 1995
-------- ---------
<S> <C> <C>
Equipment management fees $61,524 $ 70,803
Administrative charges 10,500 10,500
Reimbursable operating expenses
due to third parties 26,383 71,806
------- --------
Total $98,407 $153,109
======= ========
</TABLE>
7
<PAGE>
All rents and proceeds from the sale of equipment are paid directly to either
AFG or to a lender. AFG temporarily deposits collected funds in a separate
interest-bearing escrow account prior to remittance to the Partnership. At June
30, 1996, the Partnership was owed $173,965 by AFG for such funds and the
interest thereon. These funds were remitted to the Partnership during July
1996.
NOTE 6 - NOTES PAYABLE
- ----------------------
Notes payable at June 30, 1996 consisted of three installment notes totalling
$1,785,820 and payable to banks and institutional lenders. Two of the notes bear
fluctuating interest rates based on the London Inter-Bank Offered Rate plus a
margin (7.05% at June 30, 1996) and the remaining note bears a fluctuating
interest rate, tied to United States Treasury yields plus a margin (6.45% at
June 30, 1996). The notes are collateralized by the equipment and assignment of
the related lease payments and will be fully amortized by noncancellable rents.
The carrying amount of notes payable approximates fair value at June 30, 1996.
The annual maturities of the installment notes payable are as follows:
<TABLE>
<S> <C>
For the year ending June 30, 1997 $ 699,286
1998 679,185
1999 407,349
----------
Total $1,785,820
==========
</TABLE>
8
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
- --------------------------------------------------------------------------------
of Operations.
- --------------
Three and six months ended June 30, 1996 compared to the three and six months
- -----------------------------------------------------------------------------
ended June 30, 1995:
- --------------------
Overview
- --------
The Partnership was organized in 1989 as a direct-participation equipment
leasing program to acquire a diversified portfolio of capital equipment subject
to lease agreements with third parties. The Partnership's stated investment
objectives and policies contemplated that the Partnership would wind-up its
operations within approximately seven years of its inception. Accordingly, the
Managing General Partner is pursuing the remarketing of all of the Partnership's
remaining equipment and has engaged an investment adviser to solicit interested
third-party buyers. This effort is being undertaken in conjunction with certain
other affiliated partnerships and, if successful, would result in the sale of
each affected partnership's assets to a selected buyer. The Managing General
Partner believes this approach will (i) maximize the disposition prices of each
partnership's assets and (ii) prevent the incidence of future expenses to
operate a publicly-registered limited partnership with a declining asset base.
The Managing General Partner is evaluating expressions of interest submitted by
the investment adviser from a number of potential buyers, but is under no
obligation to accept any proposal. If successful, the Managing General Partner
anticipates that it would wind-up the operations of the Partnership and make a
liquidating distribution to the Partners, net of any cash reserves which the
Managing General Partner may consider appropriate, on or before December 31,
1996.
Results of Operations
- ---------------------
For the three and six months ended June 30, 1996, the Partnership recognized
lease revenue of $653,830 and $1,230,482, respectively, compared to $755,110 and
$1,416,055 for the same periods in 1995. The decrease in lease revenue from
1995 to 1996 was expected and resulted principally from primary lease term
expirations and the sale of equipment. The Partnership also earns interest
income from temporary investments of rental receipts and equipment sales
proceeds in short-term instruments.
The Partnership's equipment portfolio includes certain assets in which the
Partnership holds a proportionate ownership interest. In such cases, the
remaining interests are owned by AFG or an affiliated equipment leasing program
sponsored by AFG. Proportionate equipment ownership enables the Partnership to
further diversify its equipment portfolio by participating in the ownership of
selected assets, thereby reducing the general levels of risk which could result
from a concentration in any single equipment type, industry or lessee. The
Partnership and each affiliate individually report, in proportion to their
respective ownership interests, their respective shares of assets, liabilities,
revenues, and expenses associated with the equipment.
For the three months ended June 30, 1996, the Partnership sold equipment
having a net book value of $863 to existing lessees and third parties. These
sales resulted in a net gain, for financial statement purposes, of $5,436
compared to a net gain in 1995 of $139,228 on equipment having a net book value
of $30,600.
For the six months ended June 30, 1996, the Partnership sold equipment having
a net book value of $863 to existing lessees and third parties. These sales
resulted in a net gain, for financial statement purposes, of $12,436 compared to
a net gain in 1995 of $389,786 on equipment having a net book value of $69,708.
9
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
It cannot be determined whether future sales of equipment will result in a
net gain or a net loss to the Partnership, as such transactions will be
dependent upon the condition and type of equipment being sold and its
marketability at the time of sale. In addition, the amount of gain or loss
reported for financial statement purposes is partly a function of the amount of
accumulated depreciation associated with the equipment being sold.
The ultimate realization of residual value for any type of equipment is
dependent upon many factors, including AFG's ability to sell and re-lease
equipment. Changing market conditions, industry trends, technological advances,
and many other events can converge to enhance or detract from asset values at
any given time. AFG attempts to monitor these changes in order to identify
opportunities which may be advantageous to the Partnership and which will
maximize total cash returns for each asset.
The total economic value realized upon final disposition of each asset is
comprised of all primary lease term revenues generated from that asset, together
with its residual value. The latter consists of cash proceeds realized upon the
asset's sale in addition to all other cash receipts obtained from renting the
asset on a re-lease, renewal or month-to-month basis. The Partnership
classifies such residual rental payments as lease revenue. Consequently, the
amount of gain or loss reported in the financial statements is not necessarily
indicative of the total residual value the Partnership achieved from leasing the
equipment.
Depreciation expense for the three and six months ended June 30, 1996 was
$231,602 and $464,357, respectively, compared to $316,125 and $696,015 for the
same periods in 1995. For financial reporting purposes, to the extent that an
asset is held on primary lease term, the Partnership depreciates the difference
between (i) the cost of the asset and (ii) the estimated residual value of the
asset on a straight-line basis over such term. For purposes of this policy,
estimated residual values represent estimates of equipment values at the date of
primary lease expiration. To the extent that equipment is held beyond its
primary lease term, the Partnership continues to depreciate the remaining net
book value of the asset on a straight-line basis over the asset's remaining
economic life.
Interest expense was $29,365 and $61,711 or 4.5% and 5% of lease revenue for
the three and six months ended June 30, 1996, respectively, compared to $107,305
and $146,173 or 14.2% and 10.3% of lease revenue for the same periods in 1995.
Interest expense in the near term will fluctuate due to variable-rate financing
(see Note 6 herein). Over time, interest expense will decline as the principal
balance of notes payable is reduced through the application of rent receipts to
outstanding debt.
Management fees were 5% of lease revenue during each of the periods ended
June 30, 1996 and 1995 and will not change as a percentage of lease revenue in
future periods.
Operating expenses consist principally of administrative charges,
professional service costs, such as audit and legal fees, as well as printing,
distribution and remarketing expenses. In certain cases, equipment storage or
repairs and maintenance costs may be incurred in connection with equipment being
remarketed. Collectively, operating expenses represented 3% of lease revenue
for both the three and six months ended June 30, 1996 compared to 5.7% and 5.8%
of lease revenue for the same periods in 1995. The amount of future operating
expenses cannot be predicted with certainty; however, such expenses are usually
higher during the acquisition and liquidation phases of a partnership. Other
fluctuations typically occur in relation to the volume and timing of remarketing
activities.
10
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
Liquidity and Capital Resources and Discussion of Cash Flows
- ------------------------------------------------------------
The Partnership by its nature is a limited life entity which was
established for specific purposes described in the preceding "Overview". As an
equipment leasing program, the Partnership's principal operating activities
derive from asset rental transactions. Accordingly, the Partnership's principal
source of cash from operations is provided by the collection of periodic rents.
These cash inflows are used to satisfy debt service obligations associated with
leveraged leases, and to pay management fees and operating costs. Operating
activities generated net cash inflows of $1,159,773 and $1,143,175 in 1996 and
1995, respectively. Future renewal, re-lease and equipment sale activities will
cause a gradual decline in the Partnership's lease revenues and corresponding
sources of operating cash. Overall, expenses associated with rental activities,
such as management fees, and net cash flow from operating activities will
decline as the Partnership experiences a higher frequency of remarketing events.
Ultimately, the Partnership will dispose of all assets under lease.
This will occur principally through sale transactions whereby each asset will be
sold to the existing lessee or to a third party. Generally, this will occur
upon expiration of each asset's primary or renewal/re-lease term. In certain
instances, casualty or early termination events may result in the disposal of an
asset. Such circumstances are infrequent and usually result in the collection
of stipulated cash settlements pursuant to terms and conditions contained in the
underlying lease agreements.
Cash realized from asset disposal transactions is reported under
investing activities on the accompanying Statement of Cash Flows. During the
six months ended June 30, 1996, the Partnership realized $13,299 in equipment
sale proceeds compared to $459,494 in 1995. Future inflows of cash from asset
disposals will vary in timing and amount and will be influenced by many factors
including, but not limited to, the frequency and timing of lease expirations,
the type of equipment being sold, its condition and age, and future market
conditions.
The Partnership obtained long-term financing in connection with
certain equipment leases. The repayments of principal related to such
indebtedness are reported as a component of financing activities. Each note
payable is recourse only to the specific equipment financed and to the minimum
rental payments contracted to be received during the debt amortization period
(which period generally coincides with the lease rental term). As rental
payments are collected, a portion or all of the rental payment is used to repay
the associated indebtedness. In future periods, the amount of cash used to
repay debt obligations will decline as the principal balance of notes payable is
reduced through the collection and application of rents.
Cash distributions to the General Partners and Recognized Owners are
declared and generally paid within fifteen days following the end of each
calendar quarter. The payment of such distributions is presented as a component
of financing activities. For the six months ended June 30, 1996, the
Partnership declared total cash distributions of Distributable Cash From
Operations and Distributable Cash From Sales and Refinancings of $1,371,138. In
accordance with the Amended and Restated Agreement and Certificate of Limited
Partnership, the Recognized Owners were allocated 99% of these distributions, or
$1,357,427 and the General Partners were allocated 1%, or $13,711. The second
quarter 1996 cash distribution was paid on July 15, 1996.
Cash distributions paid to the Recognized Owners consist of both a
return of and a return on capital. To the extent that cash distributions
consist of Cash From Sales or Refinancings, substantially all of such cash
distributions should be viewed as a return of capital. Cash distributions do
not represent and are not indicative of yield on investment. Actual yield on
investment cannot be determined with any certainty until conclusion of the
Partnership and will be dependent upon the collection of all contracted rents,
the
11
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
generation of renewal and/or re-lease rents, and the residual value realized
for each asset at its disposal date. Market conditions, technological changes,
the ability of AFG to manage and remarket the assets, and many other events and
circumstances, could enhance or detract from individual asset yields and the
collective performance of the Partnership's equipment portfolio.
The Partnership's future cash distributions will be adversely affected
by the 1991 bankruptcy of Midway Airlines, Inc ("Midway"). Although this
bankruptcy had no immediate adverse effect on the Partnership's cash flow, as
the Partnership had almost fully leveraged its ownership interest in the
underlying aircraft leased to Midway, this event resulted in the Partnership's
loss of any future interest in the residual value of the aircraft. This
bankruptcy will have a material adverse effect on the ability of the Partnership
to achieve all of its originally intended economic benefits. However, the final
yield on capital will be dependent upon the collective performance results of
all the Partnership's equipment leases.
12
<PAGE>
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 1. Legal Proceedings
Response: None
Item 2. Changes in Securities
Response: None
Item 3. Defaults upon Senior Securities
Response: None
Item 4. Submission of Matters to a Vote of Security Holders
Response: None
Item 5. Other Information
Response: None
Item 6(a). Exhibits
Response: None
Item 6(b). Reports on Form 8-K
Response: None
13
<PAGE>
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below on behalf of the registrant and in the capacity and
on the dte indicated.
AMERICAN INCOME PARTNERS IV-D LIMITED PARTNERSHIP
By: AFG Leasing IV Incorporated, a Massachusetts
corporation and the Managing General Partner of
the Registrant
By: /s/ Michael J. Butterfield
---------------------------------------------
Michael J. Butterfield
Treasurer of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Accounting Officer)
Date: August 13, 1996
---------------------------------------------
By: /s/ Gary M. Romano
---------------------------------------------
Gary M. Romano
Clerk of AFG Leasing IV Incorporated
(Duly Authorized Officer and
Principal Financial Officer)
Date: August 13, 1996
---------------------------------------------
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,492,442
<SECURITIES> 0
<RECEIVABLES> 459,348
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,951,790
<PP&E> 16,587,577
<DEPRECIATION> 11,070,368
<TOTAL-ASSETS> 5,517,209
<CURRENT-LIABILITIES> 742,527
<BONDS> 1,785,820
0
0
<COMMON> 0
<OTHER-SE> 4,940,652
<TOTAL-LIABILITY-AND-EQUITY> 7,468,999
<SALES> 0
<TOTAL-REVENUES> 1,290,266
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 624,475
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 61,711
<INCOME-PRETAX> 665,791
<INCOME-TAX> 0
<INCOME-CONTINUING> 665,791
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 665,791
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
