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 December 31, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
--- EXCHANGE ACT OF 1934
Commission File Number 0-24656
LIBERTY TAX CREDIT PLUS III L.P.
--------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3491408
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
- - -------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
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
--- ---
<PAGE>
PART I - Financial Information
Item 1. Financial Statements
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
============ ============
December 31, March 31,
1997 1997
------------ ------------
ASSETS
Property and equipment at cost,
net of accumulated depreciation
of $71,764,548 and $63,453,107,
respectively $232,410,628 $240,343,013
Cash and cash equivalents 4,363,966 6,518,662
Cash held in escrow 16,855,775 15,777,598
Deferred costs, net of accumulated
amortization of $2,202,150
and $1,931,076, respectively 3,207,210 3,478,284
Other assets 3,356,137 2,753,083
------------ ------------
Total assets $260,193,716 $268,870,640
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage notes payable $199,028,546 $200,800,132
Due to debt guarantor 26,396,170 23,814,448
Accounts payable and other
liabilities 19,798,171 20,885,235
Due to local general partners and
affiliates 14,033,290 10,941,243
Due to general partners and
affiliates 1,953,589 2,305,530
------------- ------------
Total liabilities 261,209,766 258,746,588
------------- ------------
Minority interest 1,654,161 2,257,054
------------- ------------
Commitments and contingencies (Note 4)
Partners' capital:
Limited partners (139,101.5 BACs
issued and outstanding) (1,408,052) 9,023,785
General Partners (1,262,159) (1,156,787)
------------ ------------
Total partners' capital (2,670,211) 7,866,998
------------ ------------
Total liabilities and partners'
capital $260,193,716 $268,870,640
============ ============
See Accompanying Notes to Consolidated Financial Statements
-2-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
========================== ===========================
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------------- ---------------------------
1997 1996 1997 1996*
-------------------------- ---------------------------
<S> <C> <C> <C> <C>
REVENUES
Rental income $ 7,943,507 $ 7,922,093 $23,921,130 $23,415,227
Other 478,814 460,421 1,544,419 1,588,487
----------- ----------- ------------ ------------
8,422,321 8,382,514 25,465,549 25,003,714
----------- ----------- ------------ ------------
EXPENSES
General and
administrative 1,695,213 1,774,768 5,102,781 4,965,951
General and
administra-
tive-related
parties (Note 2) 820,084 669,768 2,702,842 2,007,940
Operating 811,718 914,939 2,579,963 2,775,326
Repairs and
maintenance 1,208,060 1,103,634 3,410,184 3,111,625
Real estate taxes 499,836 498,915 1,501,282 1,492,376
Insurance 377,697 409,857 1,140,667 1,140,516
Interest 4,000,061 3,973,944 11,952,592 11,890,515
Depreciation and
amortization 2,877,593 2,985,067 8,582,515 8,951,158
----------- ----------- ------------ ------------
Total Expenses 12,290,262 12,330,892 36,972,826 36,335,407
----------- ----------- ------------ ------------
Loss before
minority
interest and
extraordinary
item (3,867,941) (3,948,378) (11,507,277) (11,331,693)
Minority interest
in losses of
subsidiary
partnerships 34,842 36,072 107,386 113,688
----------- ----------- ------------ ------------
Loss before
extraordinary
item (3,833,099) (3,912,306) (11,399,891) (11,218,005)
Extraordinary
item -
forgiveness of
indebtedness
(Note 3) 862,682 0 862,682 0
----------- ----------- ------------ ------------
Net Loss $(2,970,417) $(3,912,306) $(10,537,209) $(11,218,005)
=========== =========== ============ ============
</TABLE>
*Reclassified for comparative purposes
See Accompanying Notes to Consolidated Financial Statements
-3-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Consolidated Statements of Operations
(continued)
(Unaudited)
<TABLE>
<CAPTION>
==========================================================
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------------- ---------------------------
1997 1996 1997 1996*
-------------------------- ---------------------------
<S> <C> <C> <C> <C>
Loss before
extra-ordinary
item - limited
partners $(3,794,768) $(3,873,183) $(11,285,892) $(11,105,825)
Extraordinary
item-limited
partners 854,055 0 854,055 0
----------- ----------- ------------ ------------
Net loss -
limited partners $(2,940,713) $(3,873,183) $(10,431,837) $(11,105,825)
=========== =========== ============ ============
Number of BACs
outstanding 139,101.5 139,101.5 139,101.5 139,101.5
=========== =========== ============ ============
Per BAC:
Loss before
extraordinary
item $ (27.28) $ (27.84) $ (81.13) $ (79.84)
Extraordinary
item 6.14 0.00 6.14 0.00
----------- ----------- ------------ ------------
Net loss $ (21.14) $ (27.84) $ (74.99) $ (79.84)
=========== =========== ============ ============
</TABLE>
*Reclassified for comparative purposes
See Accompanying Notes to Consolidated Financial Statements
-4-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Consolidated Statement of Changes in Partners' Capital
(Unaudited)
=================================================
Limited General
Total Partners Partners
-------------------------------------------------
Partners' capital -
April 1, 1997 $ 7,866,998 $ 9,023,785 $(1,156,787)
Net loss (10,537,209) (10,431,837) (105,372)
----------- ----------- -----------
Partners' capital -
December 31, 1997 $(2,670,211) $(1,408,052) $(1,262,159)
========== ========== ==========
See Accompanying Notes to Consolidated Financial Statements
-5-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
================================
Nine Months Ended
December 31,
--------------------------------
1997 1996
--------------------------------
Cash flows from operating activities:
Net loss $(10,537,209) $(11,218,005)
Adjustments to reconcile net loss to
net cash (used in) provided by operating
activities:
Extraordinary item - forgiveness of
indebtedness (862,682) 0
Depreciation and amortization 8,582,515 8,951,158
Minority interest in loss of
subsidiaries (107,386) (113,688)
Increase in accounts
payable and other liabilities 2,675,618 2,310,644
(Increase) decrease in cash held
in escrow (1,142,596) 22,489
Increase in other assets (603,054) (534,440)
(Decrease) increase in due to
general partners and affiliates (351,941) 25,163
Increase in due to local
general partners and affiliates 149,038 260,390
Decrease in due to local general
partners and affiliates (556,991) (895,764)
Increase in due to debt guarantor 2,581,722 2,662,014
--------- ---------
Net cash (used in) provided by
operating activities (172,966) 1,469,961
--------- ---------
Cash flows from investing activities:
Improvements to property and
equipment (379,056) (574,660)
Decrease in cash held in escrow 64,419 628,000
----------- ---------
Net cash (used in) provided by
investing activities (314,637) 53,340
---------- ----------
See Accompanying Notes to Consolidated Financial Statements
-6-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
(continued)
(Unaudited)
=============================
Nine Months Ended
December 31,
-----------------------------
1997 1996
-----------------------------
Cash flows from financing activities:
Principal payments of mortgage
notes payable (13,371,586) (1,023,637)
Borrowing on mortgage notes 12,200,000 0
Increase in deferred costs 0 (43,990)
Decrease in capitalization of
consolidated subsidiaries
attributable to minority interest (495,507) (213,585)
----------- ----------
Net cash used in
financing activities (1,667,093) (1,281,212)
----------- ----------
Net increase (decrease)
in cash and cash equivalents (2,154,696) 242,089
Cash and cash equivalents at
beginning of period 6,518,662 8,420,959
----------- ----------
Cash and cash equivalents at
end of period $4,363,966 $8,663,048
=========== ==========
Supplemental disclosure of
non-cash activities:
Increase in due to local general
partners and affiliates 3,500,000 0
Forgiveness of indebtedness (Note 3):
Decrease in mortgage note
payable (600,000) 0
Decrease in accounts payable
and other liabilities (262,682) 0
See Accompanying Notes to Consolidated Financial Statements
-7-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1997
(Unaudited)
Note 1 - General
The consolidated financial statements include the accounts of Liberty Tax Credit
Plus III L.P. (the "Partnership") and 61 subsidiary partnerships (the
"subsidiary partnerships" or "Local Partnerships") in which the Partnership
holds a 98% limited partnership interest and 1 subsidiary partnership in which
the Partnership holds a 27% limited partnership interest (the other 71% limited
partnership interest is owned by an affiliate of the Partnership, with the same
management). Through the rights of the Partnership and/or an affiliate of a
General Partner, which affiliate has a contractual obligation to act on behalf
of the Partnership, to remove the general partner of the subsidiary local
partnerships and to approve certain major operating and financial decisions, the
Partnership has a controlling financial interest in the subsidiary partnerships.
The Partnership's fiscal quarter ends December 31. All subsidiaries have fiscal
quarters ending September 30. Accounts of the subsidiaries have been adjusted
for intercompany transactions from October 1 through December 31.
All intercompany accounts and transactions have been eliminated in
consolidation.
Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions from and cash
distributions to the minority interest partners.
Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $48,000 and $76,000 and $174,000 and $206,000 for the
three and nine months ended December 31, 1997 and 1996, respectively. The
Partnership's investment in each subsidiary is generally equal to the respective
subsidiary's partners' equity less minority interest capital, if any. In
consolidation, all subsidiary partnership losses are included in the
Partnership's capital account except for losses allocated to minority interest
capital.
The books and records of the Partnership are maintained on the accrual basis in
accordance with generally accepted accounting
-8-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1997
(Unaudited)
principles. In the opinion of the General Partners of the Partnership, the
accompanying unaudited financial statements contain all adjustments (consisting
only of normal recurring adjustments) necessary to present fairly the financial
position of the Partnership as of December 31, 1997, the results of operations
for the three and nine months ended December 31, 1997 and 1996 and cash flows
for the nine months ended December 31, 1997 and 1996. However, the operating
results for the nine months ended December 31, 1997 may not be indicative of the
results for the year.
Certain information and note disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted or condensed. These consolidated financial statements should
be read in conjunction with the financial statements and notes thereto included
in the Partnership's Annual Report on Form 10-K for the period ended March 31,
1997.
Note 2 - Related Party Transactions
Liberty Associates IV L.P. ("Liberty Associates"), an affiliate of the General
Partners, has a 1% and .998% interest as a Special Limited Partner in 61 and 1
of the Local Partnerships, respectively. Affiliates of the General Partners also
have a minority interest in certain Local Partnerships.
The costs incurred to related parties for the three and nine months ended
December 31, 1997 and 1996 were as follows:
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------------- ---------------------------
1997 1996 1997 1996*
-------------------------- ---------------------------
Partnership
management fees (a) $358,500 $187,500 $1,075,500 $ 562,500
Expense
reimbursement (b) 48,000 69,068 224,633 141,192
Property
management fees (c) 385,584 388,200 1,318,709 1,229,248
Local
administrative
fee (d) 28,000 25,000 84,000 75,000
-------- -------- ---------- ----------
$820,084 $669,768 $2,702,842 $2,007,940
======== ======== ========== ==========
*Reclassified for comparative purposes
-9-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1997
(Unaudited)
(a) The General Partners are entitled to receive a partnership management fee
after payment of all Partnership expenses, which together with the annual local
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. The partnership management fee subject to the foregoing
limitation, will be determined by the General Partners in their sole discretion
based upon their review of the Partnership's investments. Unpaid partnership
management fees for any year will be accrued without interest and will be
payable only to the extent of available funds after the Partnership has made the
distributions to the limited partners of sale or refinancing proceeds equal to
their original capital contributions plus a 10% priority return thereon (to the
extent not theretofore paid out of cash flow). Partnership management fees owed
to the General Partners amounting to approximately $1,374,000 and $1,774,000
were accrued and unpaid at December 31, 1997 and March 31, 1997, respectively.
(b) The Partnership reimburses the General Partners and their affiliates for
actual Partnership operating expenses incurred by the General Partners and their
affiliates on the Partnership's behalf. The amount of reimbursement from the
Partnership is limited by the provisions of the Partnership Agreement. Another
affiliate of the Related General Partner performs asset monitoring for the
Partnership. These services include site visits and evaluations of the
subsidiary partnerships' performance.
(c) The subsidiary partnerships incurred property management fees amounting to
$472,493 and $484,266, $1,570,057 and $1,522,214 for the three and nine months
ended December 31, 1997 and 1996, respectively, of which $385,584 and $388,200,
$1,318,709 and $1,229,248 for the three and nine months ended December 31, 1997
and 1996, respectively, were incurred to affiliates of the subsidiary
partnerships' general partners. Included in amounts incurred to affiliates of
the subsidiary partnerships' general partners were $40,577 and $18,307, $119,776
and $56,505 for the three and nine months ended December 31, 1997 and 1996,
respectively, which were also incurred to affiliates of the Related General
Partner.
-10-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1997
(Unaudited)
(d) Liberty Associates IV L.P., a special limited partner of the subsidiary
partnerships, is entitled to receive a local administrative fee of up to $2,500
per year from each subsidiary partnership.
Note 3 - Mortgage Notes Payable
Jefferson Place, L.P.
- - ---------------------
Jefferson Place, L.P. ("Jefferson Place") refinanced its existing indebtedness
by borrowing $12,200,000 from the City of Olathe, Kansas, as of July 1, 1997.
The loan bears interest at the rate of 8.5% per annum, and matures on July 1,
2023. A prior indebtedness of Jefferson Place, in the principal amount of
$12,800,000 and on which approximately $3,700,000 in interest had been accrued
but not paid, was repaid from proceeds of the new loan; a subordinated loan in
the approximate amount of $3,500,000 remains outstanding, and approximately
$863,000 of former mortgage debt and accrued but unpaid interest was forgiven.
In connection with this refinancing, the Partnership granted the general partner
of Jefferson Place the option to acquire the Partnership's interest in Jefferson
Place on or after December 31, 2002, for a price equal to the sum of $10, plus
the amount by which the fair market value of the Jefferson Place Project exceeds
$12,800,000, provided that the purchase price shall not exceed the amount that
the Partnership would have received under the Partnership Agreement of Jefferson
Place if the refinancing had not occurred.
The status of the loan modification with respect to Williamsburg Residential II,
L.P. has remained the same since the events reported in Form 10-Q dated
September 30, 1997.
Note 4 - Commitments and Contingencies
The following disclosures include changes and/or additions to disclosures
regarding the subsidiary partnerships which were included in the Partnership's
Annual report on Form 10-K for the period ended March 31, 1997 (see Note 3 for a
discussion of the resolution of the contingency regarding Jefferson Place, L.P.
and Williamsburg Residential II, L.P.).
West 132nd Development Partnership
- - ----------------------------------
West 132nd Development Partnership ("West 132nd") has received notification of
default on its mortgages due to its arrears on the
-11-
<PAGE>
LIBERTY TAX CREDIT PLUS III L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1997
(Unaudited)
mortgage debt and related escrow accounts. As of March 31, 1997, West 132nd owed
approximately $48,000 toward its prior monthly installments, inclusive of
principal, interest and escrows. However, as of February 1, 1998, these payments
have been made and the mortgages are current.
-12-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
- - -------------------------------
The Partnership's primary source of funds include (i) working capital reserves
in the original amount of 3.5% of gross equity raised and (ii) cash
distributions from the operations of the Local Partnerships.
As of December 31, 1997 the Partnership has invested all of the net proceeds in
62 Local Partnerships. Approximately $1,434,000 of the purchase price remains to
be paid (which includes approximately $1,145,000 held in escrow). During the
nine months ended December 31, 1997, approximately $64,000 was paid to the Local
Partnerships, all of which was released from escrow.
During the nine months ended December 31, 1997, cash and cash equivalents of the
Partnership and its 62 consolidated Local Partnerships decreased by
approximately $2,155,000. This decrease was attributable to cash flow used in
operations ($173,000), improvements to property and equipment ($379,000),
principal payments of mortgage notes payable ($13,372,000) and a decrease in
capitalization of consolidated subsidiaries attributable to minority interest
($496,000) which exceeded borrowings on mortgage notes ($12,200,000) and a
decrease in cash held in escrow from investing activities ($64,000). The gross
amount of cash used in operating activities was increased by the payment of
certain accrued and unpaid management fees to the General Partners. Included in
the adjustments to reconcile the net loss to cash used in operating activities
is forgiveness of indebtedness income ($863,000), depreciation and amortization
($8,583,000) and an increase in due to debt guarantor of ($2,582,000).
The Partnership has a working capital reserve in the original amount of 3.5% of
gross equity raised of which approximately $288,000 and $2,548,000 remained
unused at December 31, 1997 and March 31, 1997, respectively.
Cash distributions received from the Local Partnerships remain relatively
immaterial. These distributions, as well as the working capital reserves
referred to in the preceding paragraph, will be used to meet the future
operating expenses of the Partnership. During the nine months ended December 31,
1997 and 1996, the amounts received from operations of the Local Partnerships
approximated $202,000 and $81,000, respectively.
Jefferson Place, L.P. ("Jefferson Place") refinanced its existing indebtedness
by borrowing $12,200,000 from the City of Olathe,
-13-
<PAGE>
Kansas, as of July 1, 1997. The loan bears interest at the rate of 8.5% per
annum, and matures on July 1, 2023. A prior indebtedness of Jefferson Place, in
the principal amount of $12,800,000 and on which approximately $3,700,000 in
interest had been accrued but not paid, was repaid from proceeds of the new
loan; a subordinated loan in the approximate amount of $3,500,000 remains
outstanding, and approximately $863,000 of former mortgage debt and accrued but
unpaid interest was forgiven. In connection with this refinancing, the
Partnership granted the general partner of Jefferson Place the option to acquire
the Partnership's interest in Jefferson Place on or after December 31, 2002, for
a price equal to the sum of $10, plus the amount by which the fair market value
of the Jefferson Place Project exceeds $12,800,000, provided that the purchase
price shall not exceed the amount that the Partnership would have received under
the Partnership Agreement of Jefferson Place if the refinancing had not
occurred.
For a discussion of contingencies affecting certain Local Partnerships, see Note
4 to the financial statements. Since the maximum loss the Partnership would be
liable for is its net investment in the respective Local Partnerships, the
resolution of the existing contingencies is not anticipated to impact future
results of operations, liquidity or financial condition in a material way.
However, the Partnership's loss of its investment in a Local Partnership will
eliminate the ability to generate future tax credits from such Local Partnership
and may also result in recapture of tax credits if the investment is lost before
the expiration of the compliance period.
Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed, that will or are likely to impact
liquidity in a material way. Management believes the only impact would be for
laws that have not yet been adopted. The portfolio is diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However, the geographic
diversifications of the portfolio may not protect against a general downturn in
the national economy. The Partnership has fully invested the proceeds of its
offering in 62 Local Partnerships, all of which fully have their tax credits in
place. The tax credits are attached to the project for a period of ten years and
are transferable with the property during the remainder of such ten year period.
If the General Partners determined that a sale of a property is warranted, the
remaining tax credits would transfer to the new owner, thereby adding value to
the property on the market, which are not included in the financial statement
carrying amount.
-14-
<PAGE>
Results of Operations
- - ---------------------
Results of operations for the three and nine months ended December 31, 1997 and
1996 consisted primarily of (i) the results of the Partnership's investment in
the consolidated Local Partnerships and (ii) interest income earned on the
working capital reserve and funds not fully invested in Local Partnerships as
certain benchmarks, such as occupancy levels, must be attained prior to the
Partnership paying the acquisition costs in full.
Results of operations of the consolidated Local Partnerships for the three and
nine months ended December 31, 1997 continues to be in the form of rental income
with corresponding expenses divided among operations, depreciation and mortgage
interest.
Rental income increased less than 1% and approximately 2% for the three and nine
months ended December 31, 1997 as compared to the corresponding periods in 1996
primarily due to rental rate increases.
Total expenses, excluding general and administrative-related parties and
operating remained fairly consistent with a decrease of approximately 1% and an
increase of less than 1% for the three and nine months ended December 31, 1997
as compared to the corresponding periods in 1996.
General and administrative-related parties increased approximately $150,000 and
$695,000 for the three and nine months ended December 31, 1997 as compared to
the corresponding periods in 1996 primarily due to an increase in partnership
management fees payable to the General Partners, the change at two Local
Partnerships from an unaffiliated property manager to one which is an affiliate
and an increase in property management fees resulting from an increase in an
incentive management fee at another Local Partnership.
Operating decreased approximately $103,000 for the three months ended December
31, 1997 as compared to the corresponding period in 1996 primarily due to
decreases in utilities at two Local Partnership.
15
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
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
On November 25, 1997, an affiliate of Related Credit Properties III,
L.P. ("RCP") the general partner of the Partnership, purchased 100% of the stock
of Liberty GP III, Inc. ("LGP") the other general partner of the Partnership
(the "Transfer"). In addition to the Transfer, by acquiring the stock of LGP, an
affiliate of RCP also acquired LGP's general partner interest in Liberty
Associates IV L.P., the special limited partner of the Partnership. Pursuant to
the Partnership's Amended and Restated Partnership Agreement, the consent of the
limited partners was not required to approve the Transfer. In connection with
the Transfer, the Partnership paid to LGP the accrued asset management fees owed
to LGP in the aggregate amount of $737,750. See Note - Related Party
Transactions to the Financial Statements included in Part I of this Form 10-Q.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K - A report on Form 8-K dated November 25, 1997
was filed by the Partnership on December 5, 1997 which reported in Item 1. the
Transfer referred to in Item 5. Other Information of this form 10-Q.
-16-
<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.
LIBERTY TAX CREDIT PLUS III L.P.
--------------------------------
(Registrant)
By: RELATED CREDIT PROPERTIES III L.P.,
a General Partner
By: RELATED CREDIT PROPERTIES III INC.,
General Partner
Date: February 4, 1998
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes,
Senior Vice President
(principal financial officer)
Date: February 4, 1998
By: /s/ Glenn F. Hopps
------------------
Glenn F. Hopps,
Treasurer
(principal accounting officer)
By: LIBERTY GP III INC.,
a General Partner
Date: February 4, 1998
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes,
Senior Vice President
(principal financial officer)
Date: February 4, 1998
By: /s/ Glenn F. Hopps
------------------
Glenn F. Hopps,
Treasurer
(principal accounting officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information extracted from the financial
statements for Liberty Tax Credit Plus III L.P. and is qualified in its entirety
by reference to such financial statements
</LEGEND>
<CIK> 0000843076
<NAME> Liberty Tax Credit Plus III L.P.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 4,363,866
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 20,211,912
<PP&E> 304,175,176
<DEPRECIATION> 71,764,548
<TOTAL-ASSETS> 260,193,716
<CURRENT-LIABILITIES> 62,181,220
<BONDS> 199,028,546
0
0
<COMMON> 0
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