<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
--------------
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 1-9876
------
WEINGARTEN REALTY INVESTORS
---------------------------
(Exact name of registrant as specified in its charter)
Texas 74-1464203
- -------------------------------- -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2600 Citadel Plaza Drive, P.O. Box 924133,
Houston, Texas 77292-4133
- ----------------------------------------- -----------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 866-6000
--------------
- -------------------------------------------------------------------------------
(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. Yes ________. No ________.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. As of May 6, 1996, there were
26,547,174 common shares of beneficial interest of Weingarten Realty Investors,
$.03 par value, outstanding.
<PAGE>
PART 1
FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
WEINGARTEN REALTY INVESTORS
STATEMENTS OF CONSOLIDATED INCOME
(UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
1996 1995
---------- --------
<S> <C> <C>
Revenues:
Rentals.............................. $ 34,970 $29,698
Interest (including amounts from
related parties of $416 in 1996 and
$684 in 1995)....................... 874 1,460
Equity in earnings of real estate
joint ventures and partnerships..... 404 384
Other................................ 514 550
---------- --------
Total............................. 36,762 32,092
---------- --------
Expenses:
Depreciation and amortization........ 8,091 7,027
Operating............................ 5,383 4,923
Ad valorem taxes..................... 4,781 4,230
Interest............................. 5,011 3,414
General and administrative........... 1,367 1,275
---------- --------
Total............................. 24,633 20,869
---------- --------
Income from Operations................ 12,129 11,223
Gain on sales of property............. 496 141
---------- --------
Net Income............................ $ 12,625 $11,364
========== =======
Net Income per Common Share........... $ .48 $ .43
========== =======
Cash Dividends Declared per
Common Share......................... $ .62 $ .60
========== =======
Weighted Average Number of Common
Shares Outstanding................... 26,547 26,368
========== =======
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
WEINGARTEN REALTY INVESTORS
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
--------- ------------
ASSETS (unaudited)
<S> <C> <C>
Property................................ $ 874,729 $ 849,894
Accumulated depreciation................ (223,371) (216,657)
--------- ---------
Property - net......................... 651,358 633,237
Investment in Real Estate Joint
Ventures and Partnerships.............. 8,847 8,960
--------- ---------
Total........................... 660,205 642,197
Mortgage Bonds and Notes Receivable
from:
Affiliate (net of deferred gain of
$5,514)............................... 16,133 15,863
Real Estate Joint Ventures and
Partnerships.......................... 13,969 13,897
Marketable Debt Securities.............. 15,648 16,262
Unamortized Debt and Lease Costs........ 20,586 20,602
Accrued Rent and Accounts Receivable
(net of allowance for doubtful
accounts of $1,321 in 1996 and $1,436
in 995)................................ 8,463 13,357
Cash and Cash Equivalents............... 3,616 3,355
Other................................... 9,133 9,291
--------- ---------
Total....................... $ 747,753 $ 734,824
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt.................................... $ 318,419 $ 289,339
Accounts Payable and Accrued Expenses... 18,863 30,880
Other................................... 2,878 3,006
--------- ---------
Total........................... 340,160 323,225
--------- ---------
Shareholders' Equity:
Preferred shares of beneficial
interest-par value, $0.03 per share;
shares authorized: 10,000; shares
issued and outstanding: none..........
Common shares of beneficial interest -
par value, $0.03 per share; shares
authorized: 150,000; shares issued and
outstanding: 26,547 in 1996 and 26,546
in 1995................................ 796 796
Capital surplus......................... 406,797 410,803
--------- ---------
Shareholders' equity.................... 407,593 411,599
--------- ---------
Total.......................... $ 747,753 $ 734,824
========= =========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
WEINGARTEN REALTY INVESTORS
STATEMENTS OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------
1996 1995
--------- ---------
Cash Flows from Operating Activities:
<S> <C> <C>
Net income............................. $ 12,625 $ 11,364
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization..... 8,091 7,027
Equity in earnings of real estate
joint ventures and partnerships.. (404) (384)
Gain on sales of property......... (496) (141)
Amortization of direct financing
leases........................... 180 171
Changes in accrued rents and
accounts receivable.............. 4,953 6,225
Changes in other assets........... (990) (1,345)
Changes in accounts payable and
accrued expenses................. (11,960) (11,107)
Other, net........................ 15 18
-------- --------
Net cash provided by operating
activities.................... 12,014 11,828
-------- --------
Cash Flows from Investing Activities:
Investment in properties............... (25,362) (19,622)
Mortgage bonds and notes receivable:
Advances.......................... (487) (1,455)
Collections....................... 151 239
Proceeds from sales of property........ 486 184
Real estate joint ventures and
partnerships:
Investments....................... (24) (26)
Distributions..................... 351 245
Other.................................. 621 624
-------- --------
Net cash used in investing
activities.................... (24,264) (19,811)
-------- --------
Cash Flows from Financing Activities:
Proceeds from issuance of:
Debt.............................. 29,529 24,000
Common shares of beneficial
interest......................... 29
Principal payments of debt............. (303) (369)
Dividends paid......................... (16,459) (15,821)
Other.................................. (26) (101)
-------- --------
Net cash provided by financing
activities.................... 12,770 7,709
-------- --------
Net increase (decrease) in cash and
cash equivalents....................... 261 (274)
-------- --------
Cash and cash equivalents at January 1.. 3,355 3,295
-------- --------
Cash and cash equivalents at March 31... $ 3,616 $ 3,021
======== ========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
WEINGARTEN REALTY INVESTORS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
1. INTERIM FINANCIAL STATEMENTS
The consolidated financial statements included in this report are
unaudited, except for the balance sheet as of December 31, 1995. In the
opinion of the Registrant, all adjustments necessary for a fair
presentation of such financial statements have been included. Such
adjustments consisted of normal recurring items. Interim results are not
necessarily indicative of results for a full year.
The consolidated financial statements and notes are presented as permitted
by Form 10-Q, and do not contain certain information included in the
Company's annual financial statements and notes.
2. SIGNIFICANT ACCOUNTING POLICIES
Effective January 1, 1996, the Company adopted Statement of Financial
Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based
Compensation". As allowed under this statement, the Company has continued
to use the intrinsic value based method of accounting for such plans.
Also effective January 1, 1996, the Company adopted SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets
to be Disposed Of". The adoption of this standard did not result in the
impairment of any of the Company's long-lived assets.
3. DEBT
The Company's debt consists of the following:
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
--------- ------------
<S> <C> <C>
Fixed-rate debt payable to 2015 at 6.0%
to 10.5%............................... $189,137 $189,413
Notes payable under revolving credit
agreement............................. 103,000 73,500
Reverse repurchase agreements, due daily
and collateralized by $15.6 million
of marketable debt securities......... 11,900 11,900
Industrial revenue bonds to 2014 at 4.0%
to 6.6% at March 31, 1996............. 7,641 7,669
Obligations under capital leases........ 5,857 6,001
Other................................... 884 856
-------- --------
Total........................... $318,419 $289,339
======== ========
</TABLE>
At March 31, 1996, the variable interest rates for notes payable under the
revolving credit agreement and the reverse repurchase agreements were 6.1%
and 5.6%, respectively. The weighted average interest rate for the
Company's short-term debt for the period ended March 31, 1996 was 6.1%.
5
<PAGE>
The Company's debt can be summarized as follows:
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
--------- ------------
<S> <C> <C>
As to interest rate:
Fixed-rate debt (including amounts
fixed through interest rate swaps). $229,718 $229,994
Variable-rate debt.................. 88,701 59,345
-------- --------
Total........................... $318,419 $289,339
======== ========
As to collateralization:
Secured debt........................ $ 86,685 $ 87,133
Unsecured debt...................... 231,734 202,206
-------- --------
Total........................... $318,419 $289,339
======== ========
</TABLE>
4. PROPERTY
The Company's property consists of the following:
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
--------- ------------
<S> <C> <C>
Land................................. $156,987 $151,985
Land under development............... 39,281 40,464
Buildings and improvements........... 658,966 636,601
Construction in-progress............. 10,479 11,648
Property under direct financing
leases.............................. 9,016 9,196
-------- --------
Total............................. $874,729 $849,894
======== ========
</TABLE>
5. CARRYING CHARGES CAPITALIZED
During the periods shown, the following carrying charges were capitalized:
<TABLE>
<CAPTION>
1996 1995
------ ------
<S> <C> <C>
Interest.......... $ 427 $ 784
Ad valorem taxes.. 119 122
------ ------
Total.......... $ 546 $ 906
====== ======
</TABLE>
6
<PAGE>
PART 1
FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
Weingarten Realty Investors owned and operated 154 anchored shopping centers, 17
industrial properties, two multi-family residential projects, and one office
building at March 31, 1996. Of the Company's 174 developed properties, 134 are
located in Texas (including 84 in Houston and Harris County). The Company's
remaining properties are located in Louisiana (10), Arizona (6), Arkansas (6),
New Mexico (5), Oklahoma (4), Nevada (4), Kansas (2), Missouri (1), Maine (1)
and Tennessee (1). The Company has nearly 2,900 leases and 2,200 different
tenants. Leases for the Company's properties range from less than a year for
smaller spaces to over 25 years for larger tenants; leases generally include
minimum lease payments and contingent rentals for payment of taxes, insurance
and maintenance and for an amount based on a percentage of the tenants' sales.
The majority of the Company's anchor tenants are supermarket chains, drugstore
chains and other retailers which generally sell basic necessity-type items.
During this quarter, the Company renewed or released 354,000 square feet of
retail space comprising 108 leases. Net of capital costs for tenant
improvements, rental rates increased an average of 12.3% over the rates charged
to the prior tenants. Retail sales on the same store basis as reported by the
Company's tenants for the year ended December 31, 1995 were up 2%, with
supermarket operators up nearly 3% as compared to the prior year. Occupancy as
of March 31, 1996 for shopping centers and the total portfolio stands at 92%,
unchanged from year end and the first quarter of the prior year.
Acquisitions added 368,000 square feet to the Company's portfolio during the
first quarter of 1996 at a combined cost of $17.8 million. A 135,000 square
foot shopping center located in a suburb of Kansas City was purchased in March,
the Company's second center in this market. The Company purchased a 166,000
square foot center in Flagstaff, Arizona, its first center in this market and
its sixth center in Arizona. A 67,000 square foot center was purchased in
Houston. Subsequent to quarter-end, the Company closed its third acquisition in
Kansas City, a 135,000 square foot center costing $7.3 million. Presently, five
additional properties totaling 500,000 square feet are under contract or letter
of intent, however there is no assurance that these transactions will be
completed.
Leasing activity at the Company's two high-profile new development projects in
Houston is progressing as scheduled, with both centers over 90% leased.
Construction of these centers is generally complete except for tenant finish
work, which will be completed as the last few spaces are leased. The majority
of the 300,000 square feet from these two projects came on line prior to year-
end 1995. The Company has also begun construction of a new 30,000 square foot
shopping center, which will open in the second quarter of 1996.
FUNDS FROM OPERATIONS
The Company considers funds from operations to be an alternate measure of the
performance of an equity REIT since such measure does not recognize depreciation
and amortization of real estate assets as operating expenses. Management
believes that reductions for these charges are not meaningful in evaluating
income-producing real estate, which historically has not depreciated. The
National Association of Real Estate Investment Trusts defines funds from
operations as net income plus depreciation and amortization of real estate
assets, less gains and losses on sales of properties. Funds from operations do
not represent cash flows from operations as defined by generally accepted
accounting principles and should not be considered as an alternative to net
income as an indicator of the Company's operating performance or to cash flows
as a measure of liquidity.
Funds from operations increased to $20.2 million for the first quarter of 1996,
as compared to $18.2 million for the same period of 1995. Of this increase, $.3
million was non-recurring income. The remainder of the increase related
primarily to the impact of the Company's acquisitions and new developments
during the past 12 months and, to a lesser degree, the activity at its existing
retail properties.
7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company anticipates that cash flows from operating activities will continue
to provide adequate capital for all dividend payments in accordance with REIT
requirements, and that cash on hand, borrowings under its existing credit
facility, and the use of project financing as well as other debt and equity
alternatives will provide the necessary capital to achieve growth. Cash flow
from operating activities as reported in the Statements of Consolidated Cash
Flows increased to $12.0 million for the first three months of 1996, from $11.8
million for the same period of 1995, primarily due to the acquisition and
development of additional income-producing properties during the past year.
The Company's Board of Trust Managers approved an increase in the quarterly
dividend per common share from $.60 to $.62, effective this first quarter of
1996. The percentage of funds from operations paid out in cash dividends, or
dividend payout ratio, was 81.6% and 87.0% for the first quarters of 1996 and
1995, respectively.
The Company's capital structure at March 31, 1996 remained very strong. The
debt to total market capitalization of 25% at March 31, 1996 was up slightly
from 22% at December 31, 1995, but still well below the average of over 40% for
all equity REITs. Total debt outstanding increased to $318.4 million at
quarter-end from $289.3 million at December 31, 1995. This increase was
primarily due to the previously mentioned acquisitions in March of 1996 and, to
a lesser degree, the Company's ongoing development efforts. These capital needs
were financed under the Company's revolving credit facility.
The Company has protection against interest rate increases through fixed-rate
loans and interest rate swap agreements on $229.7 million of the total debt
outstanding at March 31, 1996. For the quarter ended March 31, 1996, total
debt costs averaged 7.4% as compared to 7.3% for the same period of the prior
year. This minimal increase is a result of slight increases in market interest
rates over the last 12 months and the effect of the conversion of $116.5 million
of lower cost variable-rate debt to fixed-rate Medium Term Notes at an average
rate of 7.1%.
RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1996
Net income increased to $12.7 million, or $.48 per share, from $11.4 million, or
$.43 per share, for the first quarter of 1996 as compared with the same quarter
of 1995, an increase of 11.6% on a per share basis. Of this increase, $.3
million, or $.01 per share, represents the impact of non-recurring income
items. The remainder of the increase relates primarily to the Company's
acquisitions and new developments during the past 12 months.
Rental revenues were $35.0 million for 1996, as compared to $29.7 million for
1995, representing an increase of approximately $5.3 million or 17.8%. This
increase relates primarily to acquisitions and new development and, to a lesser
degree, the activity at the Company's existing retail properties.
Interest income decreased from $1.5 million in 1995 to $.9 million in 1996 due
primarily to the sale of $31.8 million of marketable debt securities in November
of 1995.
Interest expense increased $1.6 million to $5.0 million in 1996, from $3.4
million in 1995. This increase was due to an increase in average debt
outstanding between periods, from $235.3 million in 1995 to $293.4 million in
1996, and a slight increase in the average interest rate during the quarter from
7.3% in 1995 to 7.4% in 1996. Also contributing to the increase was a reduction
in construction activity at two of the Company's significant new development
projects, resulting in a decrease in the amount of interest capitalized from $.8
million in 1995 to $.4 million in 1996.
8
<PAGE>
The increase in the gain on sale of property from $.1 million in 1995 to to $.5
million in 1996 is due to the receipt in 1996 of insurance proceeds from a fire
which destroyed a part of a shopping center which the Company elected not to
rebuild.
The increases in depreciation and amortization, operating expenses and ad
valorem taxes were primarily the result of the Company's acquisition and new
development programs.
9
<PAGE>
PART II
OTHER INFORMATION
ITEM 1. THROUGH 3. - NONE
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
At the regular Annual Meeting of Shareholders of Weingarten Realty
Investors held on May 2, 1996, the following matters were submitted to a
vote of security holders:
(a) The election of the following trust managers to serve until the next
Annual Meeting of Shareholders or until their successors have been
elected and qualified: Stanford Alexander, Andrew M. Alexander,
Martin Debrovner, Melvin A. Dow, Stephen A. Lasher, Joseph W.
Robertson, Jr., Douglas W. Schnitzer, Marc J. Shapiro and J. T.
Trotter.
APPROVED - 21,988,222 shares were voted in favor and 60,075
shares were withheld.
(b) Ratification of the appointment of Deloitte & Touche LLP, independent
certified public accountants, as the Company's auditors for the year
ending December 31, 1996.
APPROVED - 21,878,398 shares were voted in favor, 131,920 shares
were voted against and 37,979 shares abstained from
voting.
(c) The amendment of the 1993 Incentive Share Plan of the Company to
increase the number of shares available thereunder from 500,000 to
1,000,000.
APPROVED - 19,635,242 shares were voted in favor, 2,168,860
shares were voted against and 264,195 shares abstained
from voting.
ITEM 5. NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits (numbered in accordance with Item 601 of Regulation S-K)
(11) A statement of computation of earnings per common share.
(12) A statement of computation of ratios of earnings and funds
from operations to fixed charges.
(27) Article 5 Financial Data Schedule (EDGAR filing only).
(b) Reports on Form 8-K
No reports on Form 8-K have been filed by the Registrant during the
quarter for which this report is filed.
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 thereunto duly authorized.
WEINGARTEN REALTY INVESTORS
---------------------------
(Registrant)
BY: /s/ Stanford Alexander
------------------------
Stanford Alexander
Chairman/Chief Executive Officer
(Principal Executive Officer)
BY: /s/ Stephen C. Richter
-------------------------
Stephen C. Richter
Vice President/Financial
Administration and Treasurer
(Principal Accounting Officer)
DATE: May 7, 1996
11
<PAGE>
EXHIBIT 11
WEINGARTEN REALTY INVESTORS
COMPUTATION OF EARNINGS PER COMMON SHARE
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------
1996 1995
-------- --------
SIMPLE EARNINGS PER SHARE:
<S> <C> <C>
Weighted Average Common Shares
Outstanding.......................... 26,547 26,368
======= =======
Simple Earnings Per share........... $ .48 $ .43
======= =======
PRIMARY EARNINGS PER SHARE (NOTE A):
Weighted Average Common Shares
Outstanding.......................... 26,547 26,368
Shares Issuable from Assumed
Conversion of Common Share Options
Granted and Outstanding.............. 45 12
------- -------
Weighted Average Common Shares
Outstanding, as Adjusted............. 26,592 26,380
======= =======
Primary Earnings Per Share.......... $ .47 $ .43
======= =======
FULLY DILUTED EARNINGS PER SHARE (NOTE A):
Weighted Average Common Shares
Outstanding.......................... 26,547 26,368
Shares Issuable from Assumed Conversion
of Common Share Options Granted and
Outstanding.......................... 45 12
------- -------
Weighted Average Common Shares
Outstanding, as Adjusted............. 26,592 26,380
======= =======
Fully Diluted Earnings Per Share.... $ .47 $ .43
======= =======
EARNINGS FOR SIMPLE, PRIMARY AND FULLY
DILUTED COMPUTATION:
Earnings.............................. $12,625 $11,364
======= =======
</TABLE>
- --------------------
Note A: This calculation is submitted in accordance with Regulation S-K item
601(b)(11) although not required by footnote 2 to paragraph 14 of APB
Opinion No. 15 because it results in dilution of less than 3%.
<PAGE>
EXHIBIT 12
WEINGARTEN REALTY INVESTORS
COMPUTATION OF RATIOS OF EARNINGS
AND FUNDS FROM OPERATIONS TO FIXED CHARGES
(DOLLAR AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------
1996 1995
--------- ----------
<S> <C> <C>
Net income.............................. $12,625 $11,364
Add:
Portion of rents representative of the
interest factor........................ 154 164
Interest on indebtedness................ 5,011 3,414
Amortization of debt cost............... 69 31
------- -------
Net income as adjusted................ $17,859 $14,973
======= =======
Fixed charges:
Interest on indebtedness................ $ 5,011 $ 3,414
Capitalized interest.................... 427 784
Amortization of debt cost............... 69 31
Portion of rents representative of the
interest factor........................ 154 164
------- -------
Fixed charges......................... $ 5,661 $ 4,393
======= =======
RATIO OF EARNINGS TO FIXED CHARGES...... 3.15 3.41
======= =======
Net income.............................. $12,625 $11,364
Depreciation and amortization........... 8,022 6,997
Gain on sales of property............... (496) (141)
------- -------
Funds from operations................. 20,151 18,220
Interest on indebtedness................ 5,011 3,414
------- -------
Funds from operations (as adjusted)... $25,162 $21,634
======= =======
RATIO OF FUNDS FROM OPERATIONS TO FIXED
CHARGES............................... 4.44 4.92
======= =======
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM WEINGARTEN
REALTY INVESTORS' QUARTERLY REPORT FOR THE PERIOD ENDED MARCH 31, 1996.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 3,616
<SECURITIES> 15,648
<RECEIVABLES> 9,784
<ALLOWANCES> 1,321
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 874,729
<DEPRECIATION> 223,371
<TOTAL-ASSETS> 747,753
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 796
<OTHER-SE> 406,797
<TOTAL-LIABILITY-AND-EQUITY> 747,753
<SALES> 0
<TOTAL-REVENUES> 36,762
<CGS> 0
<TOTAL-COSTS> 10,164
<OTHER-EXPENSES> 9,458
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,011
<INCOME-PRETAX> 12,129
<INCOME-TAX> 0
<INCOME-CONTINUING> 12,129
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,625
<EPS-PRIMARY> .48
<EPS-DILUTED> .47
</TABLE>
