<PAGE> 1
===============================================================================
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 JUNE 30, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 1-10643
---------------------
HALLWOOD REALTY PARTNERS, L.P.
(Exact name of registrant as specified in its charter)
---------------------
DELAWARE 75-2313955
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
3710 RAWLINS
SUITE 1500
DALLAS, TEXAS 75219-4298
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 528-5588
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 [ ]
THE REGISTRANT IS A LIMITED PARTNERSHIP AND ISSUES UNITS
REPRESENTING OWNERSHIP OF LIMITED PARTNER INTERESTS.
NUMBER OF UNITS OUTSTANDING AT AUGUST 8, 1997: 1,672,556 UNITS.
===============================================================================
PAGE 1
<PAGE> 2
HALLWOOD REALTY PARTNERS, L.P.
FORM 10-Q
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
PAGE
----
<S> <C> <C>
Item 1 Financial Statements:
Consolidated Balance Sheets as of June 30, 1997
and December 31, 1996 3
Consolidated Statements of Operations for the
Three and Six Months Ended June 30, 1997 and 1996 4
Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 1997 and 1996 5
Notes to Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations, Liquidity and Capital Resources 8
PART II - OTHER INFORMATION
Items 1 to 6 Other Information 11
Signatures 12
</TABLE>
PAGE 2
<PAGE> 3
HALLWOOD REALTY PARTNERS, L.P.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT UNIT AMOUNTS)
<TABLE>
<CAPTION>
JUNE 30, December 31,
1997 1996
------------ ------------
(UNAUDITED)
<S> <C> <C>
ASSETS
Real estate:
Land $ 56,546 $ 56,820
Buildings and improvements 258,297 257,913
Tenant improvements 18,225 18,578
------------ ------------
333,068 333,311
Accumulated depreciation (152,068) (150,434)
------------ ------------
Real estate, net 181,000 182,877
Cash and cash equivalents 4,413 3,556
Accounts receivable 1,345 1,606
Deferred lease commissions, net 7,126 6,959
Lease concessions 2,337 2,354
Loan reserves and escrows 7,600 7,739
Loan costs, net 3,439 3,691
Prepaid expenses and other assets, net 554 1,432
------------ ------------
Total assets $ 207,814 $ 210,214
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgages payable $ 159,499 $ 160,732
Unamortized mortgage payable forgiveness 9,766 10,456
Accounts payable and accrued expenses 4,117 4,834
Prepaid rent and security deposits 2,628 2,600
Payable to affiliates 116 908
------------ ------------
Total liabilities 176,126 179,530
------------ ------------
Partners' capital:
Limited partners - 1,672,556 units outstanding 31,371 30,377
General partner 317 307
------------ ------------
Total partners' capital 31,688 30,684
------------ ------------
Total liabilities and partners' capital $ 207,814 $ 210,214
============ ============
</TABLE>
See notes to consolidated financial statements.
PAGE 3
<PAGE> 4
HALLWOOD REALTY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER UNIT AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------- -------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES:
Property operations $ 13,312 $ 12,036 $ 26,085 $ 24,228
Interest 131 222 266 462
-------- -------- -------- --------
Total revenues 13,443 12,258 26,351 24,690
-------- -------- -------- --------
EXPENSES:
Property operations 5,408 5,678 11,229 11,560
Interest 3,239 3,513 6,456 7,045
Depreciation and amortization 3,010 4,715 5,995 9,428
General and administrative 850 676 1,667 1,501
-------- -------- -------- --------
Total expenses 12,507 14,582 25,347 29,534
-------- -------- -------- --------
NET INCOME (LOSS) $ 936 $ (2,324) $ 1,004 $ (4,844)
======== ======== ======== ========
ALLOCATION OF NET INCOME (LOSS):
Limited partners $ 927 $ (2,300) $ 994 $ (4,795)
General partner 9 (24) 10 (49)
-------- -------- -------- --------
Total $ 936 $ (2,324) $ 1,004 $ (4,844)
======== ======== ======== ========
NET INCOME (LOSS) PER UNIT AND
EQUIVALENT UNIT:
Primary $ .55 $ (1.35) $ .59 $ (2.78)
======== ======== ======== ========
Assuming full dilution $ .54 $ (1.35) $ .58 $ (2.78)
======== ======== ======== ========
WEIGHTED AVERAGE UNITS USED IN
COMPUTING NET INCOME (LOSS) PER
UNIT AND EQUIVALENT UNIT:
Primary 1,673 1,699 1,673 1,724
======== ======== ======== ========
Assuming full dilution 1,720 1,699 1,715 1,724
======== ======== ======== ========
</TABLE>
See notes to consolidated financial statements.
PAGE 4
<PAGE> 5
HALLWOOD REALTY PARTNERS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
------------------------
1997 1996
---------- ----------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ 1,004 $ (4,844)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 5,995 9,428
Amortization of mortgage principal forgiveness (834) (670)
Lease concessions 17 333
Changes in assets and liabilities:
Receivables 261 494
Deferred lease commissions (1,193) (1,435)
Prepaid expenses and other assets, net 617 374
Accounts payable and other liabilities (1,481) (842)
---------- ----------
Net cash provided by operating activities 4,386 2,838
---------- ----------
INVESTING ACTIVITIES:
Property and tenant improvements (2,431) (2,890)
Tenant improvement escrow 566 --
Property acquisition (646) (1,699)
Mortgage receivable principal payments 46 42
---------- ----------
Net cash used for investing activities (2,465) (4,547)
---------- ----------
FINANCING ACTIVITIES:
Mortgage principal payments (1,638) (1,549)
Mortgage principal proceeds 549 --
Purchase of Units -- (1,793)
Loan fees 25 (54)
---------- ----------
Net cash used for financing activities (1,064) (3,396)
---------- ----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 857 (5,105)
BEGINNING CASH AND CASH EQUIVALENTS 3,556 14,302
---------- ----------
ENDING CASH AND CASH EQUIVALENTS $ 4,413 $ 9,197
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid in cash during the period $ 7,068 $ 7,763
========== ==========
</TABLE>
See notes to consolidated financial statements.
PAGE 5
<PAGE> 6
HALLWOOD REALTY PARTNERS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(UNAUDITED)
1 ORGANIZATION AND ACCOUNTING POLICIES
Hallwood Realty Partners, L.P. ("HRP"), a publicly traded Delaware limited
partnership, is engaged in diversified real estate activities, including
the acquisition, ownership and operation of commercial office and
industrial real estate and other real estate related assets. The limited
partners' interests are traded on the American Stock Exchange under the
symbol "HRY". As of June 30, 1997, there were 1,672,556 units outstanding.
Hallwood Realty Corporation ("HRC or General Partner"), a Delaware
corporation and wholly-owned subsidiary of The Hallwood Group Incorporated
("Hallwood"), is HRP's general partner and is responsible for asset
management of the partnership and its real estate properties. Hallwood
Commercial Real Estate, Inc. ("HCRE"), another wholly-owned subsidiary of
Hallwood, provides property management services for HRP's real estate
properties.
The consolidated financial statements have been prepared in accordance
with the instructions to Form 10-Q and do not include all of the
information and disclosures required by generally accepted accounting
principles, although, in the opinion of management, all adjustments
considered necessary for a fair presentation have been included. These
financial statements should be read in conjunction with the audited
consolidated financial statements and related disclosures thereto included
in Form 10-K for the year ended December 31, 1996. Certain
reclassifications have been made to prior period amounts to conform to the
classifications used in the current period. The reclassifications had no
effect on the previously reported net loss.
Statement of Financial Accounting Standards No. 128, "Earnings Per Share"
specifies new computation, presentation and disclosure requirements. The
statement will be effective for both interim and annual periods ending
after December 31, 1997. Management believes that the adoption of this
statement will not have any impact on the earnings per unit presented.
2 TRANSACTIONS WITH RELATED PARTIES
HRC and HCRE are compensated for services provided to HRP and its real
estate properties and are set forth in the following table for the periods
presented (in thousands):
<TABLE>
<CAPTION>
ENTITY THREE MONTHS SIX MONTHS
PAID OR ENDED ENDED
REIMBURSED JUNE 30, JUNE 30,
---------- --------------- ---------------
1997 1996 1997 1996
------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Asset management fee HRC $ 118 $ 114 $ 221 $ 225
Property management fee HCRE 404 370 748 723
Lease commissions HCRE 464 384 809 784
Construction fees HCRE 81 110 149 154
Acquisition fee HRC 7 -- 7 17
Reimbursements of costs (a) HRC 569 536 1,214 1,211
</TABLE>
(a) These costs are mostly recorded as general and administrative expenses and
represent reimbursement, at cost, for partnership level salaries, employee
and director insurance, and certain overhead costs. HRP pays, on a monthly
basis, the balance of its account with HRC.
3 DEPRECIATION OF REAL ESTATE ASSETS
During 1997, HRP completed a review of its real estate asset lives. In
light of recent improvements and actions taken to increase its preventative
maintenance programs, the estimated economic lives for HRP's buildings were
found to be generally longer than the useful lives being used for
depreciation purposes. Accordingly, effective January 1, 1997, HRP extended
the depreciable lives of certain building costs. The effect of this change
in estimate reduced depreciation and amortization expense and improved the
net results for the three and six months ended June 30, 1997 by
approximately $1,800,000 ($1.07 per unit) and $3,600,000 ($2.14 per unit),
respectively.
PAGE 6
<PAGE> 7
HALLWOOD REALTY PARTNERS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(UNAUDITED)
4 LITIGATION
On February 27, 1997, a lawsuit was filed in the Chancery Court for New
Castle County, Delaware, styled Gotham Partners, L.P. v. Hallwood Realty
Partners, L.P. and Hallwood Realty Corporation (C.A. No. 105578). The
complaint sought access to certain books and records of HRP, a list of the
limited partners and reimbursement of the plaintiff's expenses.
On June 25, 1997, plaintiff filed a motion to amend its complaint to add as
additional defendants Hallwood and the directors of the General Partner and
to include claims that the General Partner had breached its fiduciary
duties by not providing access to the books and records as requested, that
the General Partner, its directors and Hallwood had breached the
partnership agreement and their fiduciary duties by causing HRP to engage
in certain transactions, including a reverse unit split, an odd-lot tender
offer, grants of unit options and sales of units to Hallwood on terms that
plaintiff alleged were not fair to HRP, and that the defendants did not
disclose to HRP and its partners the value of HRP's assets and the reasons
for the various transactions complained of. The complaint as requested to
be amended seeks production of the requested documents, rescission of sales
of units to Hallwood, removal of the General Partner, unspecified damages
and reimbursement to HRP of its expenses in connection with the
transactions and payment of plaintiff's fees and expenses.
At the same time as the filing of the motion to amend the first complaint,
plaintiff filed a separate motion in the same court, styled Gotham
Partners, L.P. v. Hallwood Realty Partners, L.P., et al. (C.A. No. 15754),
alleging the same facts and demanding the same relief as plaintiff sought
to be included in the amended complaint in the first action.
On June 27, 1997, the parties entered into a Stipulation and Order under
which HRP provided to plaintiff copies of certain of the documents
requested. The other claims in the two actions remain outstanding.
Defendants believe that the claims are without merit and intend to defend
the cases vigorously, but because of its early stages, cannot predict the
outcome of the claims or any possible effect an adverse outcome might have.
PAGE 7
<PAGE> 8
HALLWOOD REALTY PARTNERS, L.P.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, LIQUIDITY AND CAPITAL RESOURCES
RESULTS OF OPERATIONS
SECOND QUARTER 1997 COMPARED TO SECOND QUARTER 1996
REVENUE FROM PROPERTY OPERATIONS increased $1,276,000, or 10.6%, for the second
quarter of 1997, compared to the 1996 second quarter. The following table
illustrates the components of the change, in thousands:
<TABLE>
<S> <C>
Rental income, net $ 1,103
Expense recoveries (3)
Other property income 176
--------
Net increase $ 1,276
========
</TABLE>
Rental income increased primarily as the result of a rise in average occupancy
between the comparable periods from 87.3% to 93.6%. As of June 30, 1997, HRP
had leases executed and in place for 94.7% of the portfolio's net rentable
square feet.
INTEREST INCOME fell $91,000 as a result of decreased earnings on overnight
investments due to lower average cash balances available for investment between
the periods.
PROPERTY OPERATING EXPENSES decreased $270,000, or 4.8%, for the second quarter
of 1997, compared to the same period in 1996. The following table illustrates
the components of the change, in thousands:
<TABLE>
<S> <C>
Administrative costs $ 47
Management fees 38
Utilities (165)
Services, including janitorial (4)
Repairs and maintenance (179)
Real estate taxes 12
Insurance (19)
-------
Net decrease $ (270)
=======
</TABLE>
Administrative costs grew due to increases in salary costs and certain
professional fees. Higher management fees were the result of an increase in net
rental income. Utilities decreased primarily due to implementation of an
energy-savings program at the properties in Atlanta that resulted in lower
billing rates by the local electric company. Repairs and maintenance declined
primarily due to maintenance costs performed on heating and air duct systems in
the 1996 period.
INTEREST EXPENSE diminished $274,000, or 7.8%, principally due to loan
modifications/renewals for First Maryland Building and Executive Park in 1996.
First Maryland's costs dropped $146,000 and is comprised of a $63,000 reduction
in cash interest paid to the lender and $83,000 increase in amortization of
mortgage principal forgiveness. Executive Park's costs decreased $90,000 due to
the reduction in its interest rate by more than 1%. All other interest costs
fell $38,000 due to a reduction in debt levels between the periods.
DEPRECIATION AND AMORTIZATION EXPENSE decreased $1,705,000 primarily due to an
extension of depreciable lives of certain building costs effective January 1,
1997 (see Note 3 to the Consolidated Financial Statements).
GENERAL AND ADMINISTRATIVE EXPENSES increased $174,000 due to increases in
overhead, salary and legal costs.
PAGE 8
<PAGE> 9
HALLWOOD REALTY PARTNERS, L.P.
RESULTS OF OPERATIONS - CONTINUED
FIRST SIX MONTHS OF 1997 COMPARED TO FIRST SIX MONTHS OF 1996
REVENUE FROM PROPERTY OPERATIONS increased $1,857,000, or 7.7%, for the first
six months of 1997, compared to the first six months of 1996. The following
table illustrates the components of the change, in thousands:
<TABLE>
<S> <C>
Rental income, net $ 1,631
Expense recoveries 72
Other property income 154
----------
Net increase $ 1,857
==========
</TABLE>
Rental income increased primarily as the result of a rise in average occupancy
between the comparable periods from 86.3% to 92.6%. As of June 30, 1997, HRP
had leases executed and in place for 94.7% of the portfolio's net rentable
square feet.
INTEREST INCOME fell $196,000 as a result of decreased earnings on overnight
investments due to lower average cash balances available for investment between
the periods.
PROPERTY OPERATING EXPENSES decreased $331,000, or 2.9%, for the first six
months of 1997, compared to the same period in 1996. The following table
illustrates the components of the change, in thousands:
<TABLE>
<S> <C>
Administrative costs $ 106
Management fees 21
Marketing and leasing (22)
Utilities (187)
Services, including janitorial 117
Repairs and maintenance (287)
Real estate taxes (16)
Insurance (63)
----------
Net decrease $ (331)
==========
</TABLE>
Administrative costs grew due to increases in salary costs and certain
professional fees. Service costs expanded due to increases in security patrol,
elevator servicing and cleaning costs. Utilities decreased primarily due to
implementation of an energy-savings program at the properties in Atlanta that
resulted in lower billing rates by the local electric company. Repairs and
maintenance declined primarily due to maintenance costs performed on heating
and air duct systems in the 1996 period.
INTEREST EXPENSE diminished $589,000, or 8.4%, principally due to loan
modifications/renewals for First Maryland Building and Executive Park in 1996.
First Maryland's costs dropped $322,000 and is comprised of a $159,000
reduction in cash interest paid to the lender and $163,000 increase in
amortization of mortgage principal forgiveness. Executive Park's costs
decreased $176,000 due to the reduction in its interest rate by more than 1%.
All other interest costs fell $91,000 due to a reduction in debt levels between
the periods.
DEPRECIATION AND AMORTIZATION EXPENSE decreased $3,433,000 primarily due to an
extension of depreciable lives of certain building costs effective January 1,
1997 (see Note 3 to the Consolidated Financial Statements).
GENERAL AND ADMINISTRATIVE EXPENSES increased $166,000 due to increases in
overhead, salary and legal costs.
PAGE 9
<PAGE> 10
HALLWOOD REALTY PARTNERS, L.P.
LIQUIDITY AND CAPITAL RESOURCES
HRP is engaged in diversified real estate activities, including the
acquisition, ownership and operation of commercial office and industrial real
estate and other real estate related assets. While it is HRC's primary
intention to operate HRP's existing real estate investments and to acquire and
operate additional real estate investments, HRC also continually evaluates each
of HRP's real estate investments in light of current economic trends and
operations to determine if any should be considered for disposal.
As of June 30, 1997, HRP owned twelve real estate properties located in six
states. Seven are commercial office building properties and five are industrial
park properties containing approximately 2,609,000 and 2,557,000 net rentable
square feet, respectively. HRP seeks to maximize the value of its real estate
by making capital and tenant improvements, by executing marketing programs to
attract and retain tenants and by controlling or reducing, where possible,
operating expenses.
HRP's cash position increased $857,000 during the first six months of 1997 from
$3,556,000 as of December 31, 1996 to $4,413,000 as of June 30, 1997. The
sources of cash during the period were $4,386,000 of cash provided by operating
activities, $549,000 of mortgage principal proceeds and $71,000 of
miscellaneous investing and financing receipts. Uses of cash during the period
were $1,865,000 of net property and tenant improvements, $646,000 of property
acquisition cost and $1,638,000 of mortgage principal payments.
In May 1997, HRP acquired approximately 6.2 acres of land at the Corporate
Square office complex of which about half is a parking lot and the other half
is wooded land for a purchase price of $725,000, plus about $22,000 of
miscellaneous costs. The purchase price consists of a $75,000 cash down payment
and a $650,000 seven year, fully-amortizing non-recourse mortgage note with 0%
interest in the first year; 4% interest in years two and three; 6% interest in
years four and five; and 8% interest in years six and seven. The monthly
principal payments are $6,250 in the first two years and $8,333 thereafter. For
financial reporting purposes, the carrying values of the mortgage note and land
were reduced by $101,000 in order to reflect an imputed market interest rate of
8% for the mortgage note. HCRE has erected a "build to suit" sign in order to
further explore HRP's possibilities for the land's usage.
Substantially all of the buildings in eleven of HRP's properties were
encumbered by and pledged as collateral under non-recourse mortgages as of June
30, 1997. Based upon loan maturities currently in effect, in the aggregate, HRP
is required to pay about $1,460,000 of principal payments for the remainder of
1997. HRP doesn't have any mortgage loans maturing or requiring balloon
principal payments until the year 2000.
HRC anticipates tenant improvements and lease commissions for 1997 to decrease
as compared to the higher than usual level incurred during the year 1996. Based
on current estimates and budgets as of June 30, 1997, HRP anticipates
construction spending for tenant and capital improvements of about $1,200,000
and lease commission payments of about $600,000 for the remainder of 1997.
For the foreseeable future, management anticipates that mortgage principal
payments, tenant improvements and capital expenditures, and lease commissions
will be funded by the cash flow provided by operations. The primary source of
capital to fund acquisitions will be proceeds from the sale or financing of one
or more of its properties.
This Form 10-Q contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1924, which are intended to be covered by the safe harbors
created thereby. These statements include the plans and objectives of
management for future operations. The forward-looking statements included
herein are based on current expectations that involve numerous risks and
uncertainties. Assumptions relating to the foregoing involve judgments with
respect to, among other things, future economic, competitive and market
conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond the control of
HRP. Although HRP believes that the assumptions underlying the forward-looking
statements are reasonable, any of the assumptions could be inaccurate and,
therefore, there can be no assurance that the forward-looking statements
included in this Form 10-Q will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements included
herein, the inclusion of such information should not be regarded as a
representation by HRP or any other person that the objectives and plans of HRP
will be achieved.
PAGE 10
<PAGE> 11
HALLWOOD REALTY PARTNERS, L.P.
PART II - OTHER INFORMATION
Item
1 Legal Proceedings None.
2 Changes in Securities None.
3 Defaults upon Senior Securities None.
4 Submission of Matters to a Vote of Security Holders None.
5 Other Information None.
6 Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule Page 13
(b) Reports on Form 8-K None.
PAGE 11
<PAGE> 12
HALLWOOD REALTY PARTNERS, L.P.
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.
HALLWOOD REALTY PARTNERS, L.P.
(Registrant)
By: HALLWOOD REALTY CORPORATION
General Partner
Date: August 11, 1997 By: /s/ WILLIAM L. GUZZETTI
--------------- -----------------------------------
William L. Guzzetti
President
(Chief Operating Officer)
Date: August 11, 1997 By: /s/ JEFFREY D. GENT
--------------- -----------------------------------
Jeffrey D. Gent
Vice President - Finance
(Principal Financial and
Accounting Officer)
PAGE 12
<PAGE> 13
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
FINANCIAL DATA SCHEDULE FOR QUARTERLY REPORT ON FORM 10-Q
THREE MONTHS ENDED JUNE 30, 1997
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 4,413
<SECURITIES> 0
<RECEIVABLES> 1,345
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 333,068
<DEPRECIATION> 152,068
<TOTAL-ASSETS> 207,814
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 31,371
<OTHER-SE> 317
<TOTAL-LIABILITY-AND-EQUITY> 31,688
<SALES> 0
<TOTAL-REVENUES> 13,443
<CGS> 0
<TOTAL-COSTS> 9,268
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,239
<INCOME-PRETAX> 936
<INCOME-TAX> 0
<INCOME-CONTINUING> 936
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 936
<EPS-PRIMARY> 0.55
<EPS-DILUTED> 0.54
</TABLE>
