<PAGE>
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, 1999 or
-------------
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from to
-------------------- ------------------------
Commission file number 0-20103
--------------------------------------------------------
Wells Real Estate Fund IV, L.P.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-1915128
- ----------------- ----------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3885 Holcomb Bridge Road, Norcross, Georgia 30092
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 449-7800
-----------------------------
- -------------------------------------------------------------------------------
(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
--- ---
<PAGE>
Form 10-Q
---------
Wells Real Estate Fund IV, L.P.
-------------------------------
INDEX
-----
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - June 30, 1999
and December 31, 1998 ...................................... 3
Statements of Income for the Three Months and Six Months
Ended June 30, 1999 and 1998 ............................... 4
Statement of Partners' Capital for the Year Ended
December 31, 1998 and the Six Months Ended
June 30, 1999............................................... 5
Statements of Cash Flows for the Six
Months Ended June 30, 1999 and 1998 ........................ 6
Condensed Notes to Financial Statements..................... 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations.................................................. 8
PART II. OTHER INFORMATION .......................................... 14
2
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
BALANCE SHEETS
Assets June 30, 1999 December 31, 1998
------ ------------- -----------------
Investment in joint ventures (Note 2) $ 9,674,345 $ 9,846,448
Cash and cash equivalents 46,105 102,960
Due from affiliates 295,560 241,930
------------ ------------
Total assets $ 10,016,010 $ 10,191,338
============ ============
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable and accrued expenses $ 0 $ 4,244
Partnership distributions payable 269,400 248,091
------------ ------------
Total liabilities $ 269,400 252,335
------------ ------------
Partners' capital:
Limited partners
Class A - 1,322,909 Units outstanding 9,746,610 9,939,003
Class B - 38,551 Units outstanding 0 0
------------ ------------
Total partners' capital 9,746,610 9,939,003
------------ ------------
Total liabilities and partners' capital $ 10,016,010 $ 10,191,338
============ ============
See accompanying condensed notes to financial statements.
3
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(a Georgia Public Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------------- -------------------------------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Interest Income $ 0 $ 1,414 $ 698 $ 3,863
Equity in income of joint
ventures (Note 2) 204,977 206,610 380,708 351,132
--------- --------- --------- ---------
204,977 208,024 381,406 354,995
Expenses:
Legal and accounting 3,492 8,146 12,732 12,917
Computer costs 2,632 1,838 5,452 3,824
Partnership administration 12,859 10,761 28,180 19,127
--------- --------- --------- ---------
18,983 20,745 46,364 35,868
--------- --------- --------- ---------
Net income $ 185,994 $ 187,279 $ 335,042 $ 319,127
========= ========= ========= =========
Net income allocated to
Class A Limited Partners $ 185,994 $ 187,279 $ 335,042 $ 319,127
Net loss allocated to Class
B Limited Partners $ 0 $ 0 $ 0 $ 0
Net income per Class A
Limited Partner Unit $ 0.14 $ 0.14 $ 0.25 $ 0.24
Net loss per Class B Limited
Partner Unit $ 0 $ 0 $ 0 $ 0
Cash distribution per Class A
Limited Partner Unit $ 0.19 $ 0.19 $ 0.40 $ 0.36
</TABLE>
See accompanying condensed notes to financial statements.
4
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1998
AND SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
Limited Partners
-------------------------------------------
Class A Class B Total
------- ------- Partners'
Units Amount Units Amount Capital
--------- ----------- ------- -------- -------------
<S> <C> <C> <C> <C> <C>
BALANCE, December 31, 1997 1,322,909 $ 10,334,768 38,551 $ 0 $ 10,334,768
Net income 0 574,034 0 0 574,034
Partnership distribution 0 (969,799) 0 0 (969,799)
--------- ------------ ------ --- ------------
BALANCE, December 31, 1998 1,322,909 $ 9,939,003 38,551 0 9,939,003
Net income 0 335,042 0 0 335,042
Partnership distributions 0 (527,435) 0 0 (527,435)
--------- ----------- ------ --- ------------
BALANCE, June 30, 1999 1,322,909 $ 9,746,610 38,551 $ 0 $ 9,746,610
========= ============ ====== === ============
</TABLE>
See accompanying condensed notes to financial statements
5
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
----------------
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 335,042 $ 319,127
Adjustments to reconcile net income
to net cash used in operating
activities:
Equity in income of joint ventures (380,708) (351,132)
Changes in assets and liabilities:
Accounts payable (4,244) (88)
Due to affiliates 0 0
--------- ----------
Total adjustments (384,952) (351,220)
--------- ----------
Net cash used in operating
activities (49,910) (32,093)
--------- ----------
Cash flows from investing activities:
Investment in joint ventures (51,290) (33,419)
Distributions received from
joint ventures 550,471 476,122
--------- ----------
Net cash provided by
investing activities 499,181 442,703
Cash flows from financing activities:
Partnership distributions paid (506,126) (465,369)
--------- ----------
Net decrease in cash and cash equivalents (56,855) (54,759)
Cash and cash equivalents, beginning of year 102,960 163,903
--------- ---------
Cash and cash equivalents, end of period $ 46,105 $ 109,144
========= =========
</TABLE>
See accompanying condensed notes to financial statements.
6
<PAGE>
WELLS REAL ESTATE FUND IV, L.P.
(A Georgia Public Limited Partnership)
Condensed Notes to Financial Statements
June 30, 1999
(1) Summary of Significant Accounting Policies
------------------------------------------
(a) General
-------
Wells Real Estate Fund IV, L.P. (the "Partnership") is a Georgia public limited
partnership having Leo F. Wells, III and Wells Partners, L.P., as General
Partners. The Partnership was formed on October 25, 1990, for the purpose of
acquiring, developing, constructing, owning, operating, improving, leasing and
otherwise managing for investment purposes income-producing commercial
properties.
On March 4, 1991, the Partnership commenced an offering of up to $25,000,000 of
Class A or Class B limited partnership units ($10.00 per unit) pursuant to a
Registration Statement on Form S-11 under the Securities Act of 1933. The
Partnership did not commence active operations until it received and accepted
subscriptions for 125,000 units which occurred on May 13, 1991. The offering was
terminated on February 29, 1992, at which time the Partnership had obtained
total contributions of $13,614,652 representing subscriptions from 1,285 Limited
Partners.
The Partnership owns interests in properties through its equity ownership in the
following two joint ventures: (i) Fund III and Fund IV Associates, a joint
venture between the Partnership and Wells Real Estate Fund III, L.P. ( the "Fund
III - Fund IV Joint Venture"); and (ii) Fund IV and Fund V Associates, a joint
venture between the Partnership and Wells Real Estate Fund V, L.P. (the "Fund IV
- - Fund V Joint Venture").
As of June 30, 1999, the Partnership owned interests in the following properties
through its ownership of the foregoing joint ventures: (i) a retail shopping
center located in Stockbridge, Georgia, southeast of Atlanta (the "Stockbridge
Village Shopping Center"), which is owned by the Fund III - Fund IV Joint
Venture; (ii) a two-story office building located in Richmond, Virginia (the
"G.E. Building/Richmond"), which is owned by the Fund III - Fund IV Joint
Venture; (iii) two substantially identical two-story office buildings located in
Clayton County, Georgia (the "Medical Center Building"), which are owned by the
Fund IV - Fund V Joint Venture, and (iv) a four-story office building located in
Jacksonville, Florida (the "IBM Jacksonville Building"), which is owned by the
Fund IV - Fund V Joint Venture. All of the foregoing properties were acquired on
an all cash basis. For further information regarding these joint ventures and
properties, refer to the Partnership's Form 10-K for the year ended December 31,
1998.
(b) Basis of Presentation
---------------------
The financial statements of the Partnership have been prepared in accordance
with instructions to Form 10-Q and do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. These quarterly statements have not been examined by
independent accountants, but in the opinion of the General Partners, the
statements for the unaudited interim periods presented include all adjustments,
which are of a normal and recurring nature, necessary
7
<PAGE>
to present a fair presentation of the results for such periods. For further
information, refer to the financial statements and footnotes included in the
Partnership's Form 10-K for the year ended December 31, 1998.
(2) Investment in Joint Ventures
----------------------------
The Partnership owns interests in four properties as of June 30, 1999, through
ownership in two joint ventures. The Partnership does not have control over the
operations of the joint ventures; however, it does exercise significant
influence. Accordingly, investment in joint ventures is recorded on the equity
method. For further information, refer to Form 10-K of the Partnership for the
year ended December 31, 1998.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
The following discussion and analysis should be read in conjunction with the
accompanying financial statements of the Partnership and notes thereto. This
Report contains forward-looking statements, within the meaning of Section 27A of
the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934,
including discussion and analysis of the financial condition of the Partnership,
anticipated capital expenditures required to complete certain projects, amounts
of cash distributions anticipated to be distributed to Limited Partners in the
future and certain other matters. Readers of this Report should be aware that
there are various factors that could cause actual results to differ materially
from any forward-looking statement made in the Report, which include
construction costs which may exceed estimates, construction delays, lease-up
risks, inability to obtain new tenants upon the expiration of existing leases,
and the potential need to fund tenant improvements or other capital expenditures
out of operating cash flow.
Results of Operations and Changes in Financial Conditions
- ---------------------------------------------------------
(a) General
- ------------
As of June 30, 1999, the properties owned by the Partnership were 91.19%
occupied. Gross revenues of the Partnership were $204,977 for the three months
ended June 30, 1999, and $381,406 for the six months ended June 30, 1999, as
compared to $208,024 for the three months ended June 30, 1998 and $354,995 for
the six months ended June 30, 1998. This increase in gross revenues was due
primarily to increased rental renewal rates and increased occupancy at the
Stockbridge Property. As a result, net income increased for the six months ended
June 30, 1999, as compared to the same period ended June 30, 1998.
Expenses of the Partnership increased from $35,868 for the six months ended June
30, 1998 to $46,364 for the six months ended June 30, 1999. The increased in
expenses was due to a substantial increase in administrative salary and costs.
The Partnership's net cash used in operating activities increased slightly for
1999, as compared to 1998, due to an increase in operating costs in 1999.
Distributions received from joint ventures increased while distributions paid to
limited partners increased. In addition, a $51,290 investment in the joint
ventures
8
<PAGE>
was made. As a result cash and cash equivalents decreased to $46,105 for
June 30, 1999, as compared to $109,144 for June 30, 1998.
The Partnership made cash distributions to the Limited Partners holding Class A
Units of $.19 per Unit for the three months ended June 30, 1999. No cash
distributions were made to the Limited Partners holding Class B Units or to the
General Partners. The Partnership's distributions paid and payable through the
second quarter of 1999 have been paid from net cash from operations and from
distributions received from its equity investment in joint ventures, and the
Partnership anticipates that distributions will continue to be paid on a
quarterly basis from such sources.
The Partnership is unaware of any known demands, commitments, events or capital
expenditures other than that which is required from the normal operations of its
properties that will result in the Partnership's liquidity increasing or
decreasing in any material way. The Partnership expects to meet liquidity
requirements and budget demands through cash flow from operations.
Year 2000
- ---------
The Partnership is presently reviewing the potential impact of Year 2000
compliance issues on its information systems and business operations. A full
assessment of Year 2000 compliance issues was begun in late 1997 and was
completed by March 31, 1999. Renovations and replacements of equipment have been
and are being made as warranted. The costs incurred by the Partnership and its
affiliates thus far for renovations and replacements have been immaterial. As of
June 30, 1999 all testing of systems has been completed.
As to the status of the Partnerships' information technology systems, it is
presently believed that all major systems and software are Year 2000 compliant.
At the present time, it is believed that all major non-information technology
systems are Year 2000 compliant. The cost to upgrade any noncompliance systems
is believed to be immaterial.
The Partnership has confirmed with the Partnership's vendors, including
third-party service providers such as banks, that their systems are Year 2000
compliant.
The Partnership relies on computers and operating systems provided by equipment
manufacturers, and also on application software designed for use with its
accounting, property management and investment portfolio tracking. The
Partnership has preliminary determined that any costs, problems or uncertainties
associated with the potential consequences of Year 2000 issues are not expected
to have a material impact on the future operations or financial condition of the
Partnership. The Partnership will perform due diligence as to the Year 2000
readiness of each property owned by the Partnership and each property
contemplated for purchase by the Partnership. The Partnership's reliance on
embedded computer systems (i.e. microcontrollers) is limited to facilities
related matters, such as office security systems and environmental control
systems.
The Partnership is currently formulating contingency plans to cover any areas of
concern. Alternate means of operating the business are being developed in the
unlikely circumstance that the computer and phone systems are rendered
inoperable. An off-site facility from which the Partnership could operate is
being sought as well as alternate means of communication with key third-party
vendors. A written plan is
9
<PAGE>
being developed for testing and dispensation to each staff member of the General
Partner of the Partnership.
Management believes that the Partnership's risk of Year 2000 problems is
minimal. In the unlikely event there is a problem, the worst case scenarios
would include the risks that the elevator or security systems within the
Partnership's properties would fail or the key third-party vendors upon which
the Partnership relies would be unable to provide accurate investor information.
In the event that the elevator shuts down, the Partnership has devised a plan
for each building whereby the tenants will use the stairs until the elevators
are fixed. In the event that the security system shuts down, the Partnership has
devised a plan for each building to hire temporary on-site security guards. In
the event that a third-party vendor has Year 2000 problems relating to investor
information, the Partnership intends to perform a full system back-up of all
investor information as of December 31, 1999, so that the Partnership will have
accurate hard-copy investor information.
Property Operations
- -------------------
As of June 30, 1999, the Partnership owned interests in the following properties
through joint ventures:
IBM Jacksonville/Fund IV - Fund V Joint Venture
- -----------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 376,096 $ 365,896 $ 740,482 $ 731,888
--------- --------- --------- ---------
Expenses:
Depreciation 79,524 79,524 159,048 159,048
Management & leasing expenses 55,114 51,801 104,899 98,477
Other operating expenses 54,045 (7,083) 169,022 98,277
--------- --------- --------- ---------
188,683 124,242 432,969 355,802
--------- --------- --------- ---------
Net income $ 187,413 $ 241,654 $ 307,513 $ 376,086
========= ========= ========= =========
Occupied % 94% 100% 94% 100%
Partnership Ownership % in the 37.6% 37.6% 37.6% 37.6%
Fund IV - Fund V Joint Venture
Cash Distribution to Partnership $ 103,033 $ 94,905 $ 185,257 $ 170,119
Net Income Allocated to the
Partnership $ 70,420 $ 90,948 $ 115,547 $ 141,542
</TABLE>
Rental income for the IBM Jacksonville Property increased slightly in
1999, as compared to 1998 figures. Operating expenses increased in 1999,
due to substantial increase in the areas of repairs and maintenance, and
the reduction of CAM reimbursements for the period. The foregoing was as
a result of both IBM and Siemens reducing their leased space in the
building. Customized Transportation Inc. extended their lease for an
additional two years through February 28, 2001. Cash distributions
remained relatively stable for 1999 as compared to 1998. The Partnership
contributed cash fundings to the Joint Venture for tenant improvement in
proportion to its' ownership interests,
10
<PAGE>
and therefore, the Partnership's ownership interest in the Fund IV -
Fund V Joint Venture remained the same.
Net income allocated to the Partnership decreased for the six months
ended June 30, 1999, as compared to the same period in 1998, due
primarily to increased repairs and maintenance costs. Cash distributions
allocated to the Partnership increased due to the distribution of
amounts previously held in reserve. These amounts were withheld to cover
necessary tenant improvements which did not materialize.
The Medical Center Property/Fund IV - Fund V Joint Venture
- ----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
June 30, 1999 June 30, 1998 June 30,1999 June 30, 1998
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 121,106 $ 118,712 $ 265,684 $ 236,039
Interest Income 2,404 2,572 2,979 4,519
--------- --------- --------- ---------
123,510 121,284 268,663 240,558
--------- --------- --------- ---------
Expenses:
Depreciation 44,524 44,524 89,048 89,048
Management & leasing expenses 14,114 15,874 31,887 30,670
Other operating expenses 31,696 32,795 77,100 80,471
--------- --------- --------- ---------
90,334 93,193 198,035 200,189
--------- --------- --------- ---------
Net income $ 33,176 $ 28,091 $ 70,628 $ 40,369
========= ========= ========= =========
Occupied % 50% 82% 50% 82%
Partnership Ownership % in the
Fund IV-Fund V Joint Venture 37.6% 37.6% 37.6% 37.6%
Cash Distribution to Partnership $ 27,865 $ 30,258 $ 55,355 $ 54,400
Net Income Allocated to the
Partnership $ 12,466 $ 10,572 $ 26,538 $ 15,193
</TABLE>
Rental income for the Medical Center Property increased in 1999 over
1998, due primarily to an increase in the occupancy level of the
property in the fourth quarter of 1998. Operating expenses remained
relatively stable in 1999, as compared to 1998 figures. Cash
distributions allocated to the Partnership remained relatively stable
for the six months ended June 30, 1999 and 1998. One major tenant in the
property, Georgia Baptist Healthcare System did not renew their lease
which expired May 31, 1999. That created a vacancy of 17,847 square
feet. A new tenant, On Care Management has contracted to lease 4,348
rentable square feet of space for a term of 5 years commencing September
1, 1999 and ending August 31, 2004. It is anticipated that the final
cost to complete necessary tenant improvements for On Care Management
will be approximately $43,450, which will be contributed by Wells Fund
IV. All efforts are being made by the Partnership to find a tenant or
tenants to occupy the balance of the space.
11
<PAGE>
The Stockbridge Village Shopping Center / Fund III - Fund IV Joint Venture
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------- ------------------------------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 321,880 $ 300,521 $ 647,050 $ 585,885
Interest income 2,800 1,965 6,300 3,930
--------- --------- --------- ---------
324,680 302,486 653,350 589,815
--------- --------- --------- ---------
Expenses:
Depreciation 89,126 86,120 177,310 170,867
Management & leasing expenses 29,466 26,360 62,650 54,823
Other operating expenses (20,081) 16,925 (2,743) 38,633
--------- --------- --------- ---------
98,511 129,405 237,217 264,323
--------- --------- --------- ---------
Net income $ 226,169 $ 173,081 $ 416,133 $ 325,492
========= ========= ========= =========
Occupied % 100% 97% 100% 97%
Partnership Ownership % 42.8% 42.7% 42.8% 42.7%
Cash distributed to the Partnership $ 134,561 $ 108,760 $ 254,105 $ 200,717
Net income allocated to the
Partnership $ 96,774 $ 73,906 $ 177,929 $ 138,931
</TABLE>
Rental income increased for the six months ended June 30, 1999, as compared to
the same periods in 1998, due to increased rental renewal rates and increased
occupancy. Other operating expenses decreased due primarily to differences in
the adjustment for prior year common area maintenance billings to tenants and
decreased expenditures for property taxes and parking lot repairs. Tenants are
billed an estimated amount for the current year common area maintenance which is
then reconciled the second quarter of the following year and the difference
billed to the tenant.
The Partnership's ownership in the Fund III - Fund IV Joint Venture increased in
1999, as compared to 1998, due to additional fundings by the Partnership, which
increased the Partnership's ownership in the Fund III - Fund IV Joint Venture.
12
<PAGE>
The G.E. Building / Richmond / Fund III - Fund IV Joint Venture
- -------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------- ----------------------------
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 131,856 $ 131,856 $ 263,712 $ 263,712
--------- --------- --------- ---------
Expenses:
Depreciation 49,053 49,053 98,112 98,106
Management & leasing expenses 10,179 10,095 20,274 20,109
Other operating expenses 2,113 97 3,358 15,552
--------- --------- --------- ---------
61,345 59,245 121,744 133,767
--------- --------- --------- ---------
Net income $ 70,511 $ 72,611 $ 141,968 $ 129,945
========= ========= ========= =========
Occupied % 100.0% 100.0% 100.0% 100.0%
Partnership Ownership % 42.8% 42.7% 42.8% 42.7%
Cash distributed to the Partnership $ 55,100 $ 54,731 $ 109,384 $ 101,832
Net income allocated to the
Partnership $ 30,170 $ 30,993 $ 60,694 $ 55,465
</TABLE>
Rental income has remained constant for 1999 and 1998. Net income and cash
distributions generated from the G.E. Building increased for the six months
ended June 30, 1999, as compared to the same period in 1998, due to increased
expenses for extraordinary roof repairs in the first quarter of 1998.
The Partnership's ownership in the Fund III - Fund IV Joint Venture increased in
1999, as compared to 1998, due to additional fundings by the Partnership, which
increased the Partnership's ownership.
13
<PAGE>
PART II - OTHER INFORMATION
Item 6(b). No reports on Form 8-K were filed during the second quarter
of 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
WELLS REAL ESTATE FUND IV, L.P.
(Registrant)
Dated: August 10, 1999 By: /s/Leo F. Wells, III
-------------------------------------------------
Leo F. Wells, III, as Individual General
Partner and as President, Sole Director and Chief
Financial Officer of Wells Capital,
Inc., the General Partner of Wells Partners, L.P.
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 46,105
<SECURITIES> 9,674,345
<RECEIVABLES> 295,560
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 10,016,010
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,016,101
<CURRENT-LIABILITIES> 269,400
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 9,746,610
<TOTAL-LIABILITY-AND-EQUITY> 10,016,010
<SALES> 0
<TOTAL-REVENUES> 381,406
<CGS> 0
<TOTAL-COSTS> 46,364
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 335,042
<INCOME-TAX> 335,042
<INCOME-CONTINUING> 335,042
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 335,042
<EPS-BASIC> .25
<EPS-DILUTED> 0
</TABLE>
