<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[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
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 0-21518
IEA INCOME FUND XII, L.P.
(Exact name of registrant as specified in its charter)
California 94-3143940
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
444 Market Street, 15th Floor, San Francisco, California 94111
(Address of principal executive offices) (Zip Code)
(415) 677-8990
(Registrant's telephone number, including area code)
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> 2
IEA INCOME FUND XII, L.P.
REPORT ON FORM 10-Q FOR THE QUARTERLY
PERIOD ENDED JUNE 30, 1997
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - June 30, 1997 (unaudited) and December 31, 1996 4
Statements of Operations for the three and six months ended June 30, 1997 and 1996 (unaudited) 5
Statements of Cash Flows for the six months ended June 30, 1997 and 1996 (unaudited) 6
Notes to Financial Statements (unaudited) 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of 10
Operations
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Presented herein are the Registrant's balance sheets as of June 30,
1997 and December 31, 1996, statements of operations for the three
and six months ended June 30, 1997 and 1996, and statements of cash
flows for the six months ended June 30, 1997 and 1996.
3
<PAGE> 4
IEA INCOME FUND XII, L.P.
BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents, includes $1,631,376 at June 30, 1997
and $2,262,357 at December 31, 1996 in interest-bearing accounts $ 1,653,049 $ 2,262,639
Net lease receivables due from Leasing Company
(notes 1 and 2) 1,044,323 1,217,996
----------- -----------
Total current assets 2,697,372 3,480,635
----------- -----------
Container rental equipment, at cost 63,405,182 63,140,873
Less accumulated depreciation 17,776,635 15,961,254
----------- -----------
Net container rental equipment 45,628,547 47,179,619
----------- -----------
Organizational costs, net 38,292 145,611
----------- -----------
$48,364,211 $50,805,865
=========== ===========
Liabilities and Partners' Capital
Current liabilities
Accrued expenses $ 462,948 $ 462,948
Due to general partner (notes 1 and 3) 88,382 238,382
----------- -----------
Total current liabilities 551,330 701,330
----------- -----------
Partners' capital (deficit):
General partner (39,730) (25,428)
Limited partners 47,852,611 50,129,963
----------- -----------
Total partners' capital 47,812,881 50,104,535
----------- -----------
$48,364,211 $50,805,865
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
IEA INCOME FUND XII, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
----------------------------- ----------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net lease revenue (notes 1 and 4) $1,346,583 $1,759,415 $2,743,047 $3,622,333
Other operating expenses:
Depreciation 972,388 982,926 1,958,963 1,967,187
Other general and administrative expenses 33,282 24,795 50,541 48,192
---------- ---------- ---------- ----------
1,005,670 1,007,721 2,009,504 2,015,379
---------- ---------- ---------- ----------
Earnings from operations 340,913 751,694 733,543 1,606,954
Other income (expense):
Interest income 21,096 33,525 48,201 65,974
Net gain (loss) on disposal of equipment (626) 10,872 8,702 33,982
---------- ---------- ---------- ----------
20,470 44,397 56,903 99,956
---------- ---------- ---------- ----------
Net earnings $ 361,383 $ 796,091 $ 790,446 $1,706,910
========== ========== ========== ==========
Allocation of net earnings:
General partner $ 62,171 $ 92,695 $ 139,804 $ 198,652
Limited partners 299,212 703,396 650,642 1,508,258
---------- ---------- ---------- ----------
$ 361,383 $ 796,091 $ 790,446 $1,706,910
========== ========== ========== ==========
Limited partners' per unit share of net earnings $ .09 $ .20 $ .19 $ .43
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
IEA INCOME FUND XII, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
---------------------------------
June 30, June 30,
1997 1996
----------- ------------
<S> <C> <C>
Net cash provided by operating activities $ 2,931,817 $ 3,554,524
Cash flows provided by (used in) investing activities:
Proceeds from sale of container rental equipment 83,509 243,806
Purchases of container rental equipment (374,111) (221,850)
Acquisition fees paid to general partner (168,706) (451,093)
----------- -----------
Net cash used in investing activities (459,308) (429,137)
----------- -----------
Cash flows used in financing activities:
Distribution to partners (3,082,099) (3,698,520)
----------- -----------
Net decrease in cash and cash equivalents (609,590) (573,133)
Cash and cash equivalents at January 1 2,262,639 2,827,502
----------- -----------
Cash and cash equivalents at June 30 $ 1,653,049 $ 2,254,369
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
IEA INCOME FUND XII, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) Summary of Significant Accounting Policies
(a) Nature of Operations
IEA Income Fund XII, L.P. (the "Partnership") is a limited
partnership organized under the laws of the State of California on
August 28, 1991 for the purpose of owning and leasing marine cargo
containers. Cronos Capital Corp. ("CCC") is the general partner and,
with its affiliate Cronos Containers Limited (the "Leasing
Company"), manages and controls the business of the Partnership. The
Partnership shall continue until December 31, 2011, unless sooner
terminated upon the occurrence of certain events.
The Partnership commenced operations on January 31, 1992, when the
minimum subscription proceeds of $2,000,000 were obtained. As of
June 30, 1997, the Partnership operated 9,349 twenty-foot, 5,307
forty-foot and 209 forty-foot high-cube marine dry cargo containers,
as well as 199 twenty-foot and 306 forty-foot marine refrigerated
cargo containers.
The Partnership offered 3,750,000 units of limited partnership
interest at $20 per unit, or $75,000,000. The offering terminated on
November 30, 1992, at which time 3,513,594 limited partnership units
had been purchased.
(b) Leasing Company and Leasing Agent Agreement
The Partnership has entered into a Leasing Agent Agreement whereby
the Leasing Company has the responsibility to manage the leasing
operations of all equipment owned by the Partnership. Pursuant to
the Agreement, the Leasing Company is responsible for leasing,
managing and re-leasing the Partnership's containers to ocean
carriers and has full discretion over which ocean carriers and
suppliers of goods and services it may deal with. The Leasing Agent
Agreement permits the Leasing Company to use the containers owned by
the Partnership, together with other containers owned or managed by
the Leasing Company and its affiliates, as part of a single fleet
operated without regard to ownership. Since the Leasing Agent
Agreement meets the definition of an operating lease in Statement of
Financial Accounting Standards (SFAS) No. 13, it is accounted for as
a lease under which the Partnership is lessor and the Leasing
Company is lessee.
The Leasing Agent Agreement generally provides that the Leasing
Company will make payments to the Partnership based upon rentals
collected from ocean carriers after deducting direct operating
expenses and management fees to CCC and the Leasing Company. The
Leasing Company leases containers to ocean carriers, generally under
operating leases which are either master leases or term leases
(mostly two to five years). Master leases do not specify the exact
number of containers to be leased or the term that each container
will remain on hire but allow the ocean carrier to pick up and drop
off containers at various locations; rentals are based upon the
number of containers used and the applicable per-diem rate.
Accordingly, rentals under master leases are all variable and
contingent upon the number of containers used. Most containers are
leased to ocean carriers under master leases; leasing agreements
with fixed payment terms are not material to the financial
statements. Since there are no material minimum lease rentals, no
disclosure of minimum lease rentals is provided in these financial
statements.
(Continued)
7
<PAGE> 8
IEA INCOME FUND XII, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(c) Basis of Accounting
The Partnership utilizes the accrual method of accounting. Net lease
revenue is recorded by the Partnership in each period based upon its
leasing agent agreement with the Leasing Company. Net lease revenue
is generally dependent upon operating lease rentals from operating
lease agreements between the Leasing Company and its various
lessees, less direct operating expenses and management fees due in
respect of the containers specified in each operating lease
agreement.
(d) Financial Statement Presentation
These financial statements have been prepared without audit. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
procedures have been omitted. It is suggested that these financial
statements be read in conjunction with the financial statements and
accompanying notes in the Partnership's latest annual report on Form
10-K.
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires the Partnership to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reported period. Actual
results could differ from those estimates.
The interim financial statements presented herewith reflect all
adjustments of a normal recurring nature which are, in the opinion
of management, necessary to a fair statement of the financial
condition and results of operations for the interim periods
presented.
(2) Net Lease Receivables Due from Leasing Company
Net lease receivables due from the Leasing Company are determined by
deducting direct operating payables and accrued expenses, base management
fees payable, and reimbursed administrative expenses payable to CCC and
its affiliates from the rental billings payable by the Leasing Company to
the Partnership under operating leases to ocean carriers for the
containers owned by the Partnership. Net lease receivables at June 30,
1997 and December 31, 1996 were as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
----------- ------------
<S> <C> <C>
Lease receivables, net of doubtful accounts
of $325,555 at June 30, 1997 and $318,136
at December 31, 1996 $2,173,314 $2,377,329
Less:
Direct operating payables and accrued expenses 620,854 634,032
Damage protection reserve 165,989 196,373
Base management fees 298,959 282,898
Reimbursed administrative expenses 43,189 46,030
---------- ----------
$1,044,323 $1,217,996
========== ==========
</TABLE>
(Continued)
8
<PAGE> 9
IEA INCOME FUND XII, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(3) Due to General Partner
The amounts due to CCC at June 30, 1997 and December 31, 1996 consist of
acquisition fees.
(4) Net Lease Revenue
Net lease revenue is determined by deducting direct operating expenses,
base management fees and reimbursed administrative expenses to CCC and
its affiliates from the rental revenue billed by the Leasing Company
under operating leases to ocean carriers for the containers owned by the
Partnership. Net lease revenue for the three and six-month periods ended
June 30, 1997 and 1996 was as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
--------------------------------- -----------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
------------- ------------ ---------- -----------
<S> <C> <C> <C> <C>
Rental revenue $ 2,276,081 $ 2,726,723 $ 4,612,886 $ 5,543,149
Less:
Rental equipment operating expenses 652,195 635,453 1,311,863 1,242,387
Base management fees 156,321 186,487 318,083 378,627
Reimbursed administrative expenses 120,982 145,368 239,893 299,802
---------- ---------- ---------- ----------
$ 1,346,583 $ 1,759,415 $ 2,743,047 $ 3,622,333
========= ========= ========= =========
</TABLE>
9
<PAGE> 10
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
It is suggested that the following discussion be read in conjunction with the
Registrant's most recent annual report on Form 10-K.
1) Material changes in financial condition between June 30, 1997 and
December 31, 1996.
At June 30, 1997, the Registrant had $1,653,049 in cash and cash
equivalents, a decrease of $609,590 from the December 31, 1996 cash
balances. At June 30, 1997, the Registrant had approximately $58,000 in
cash generated from equipment sales reserved as part of its cash
balances. Throughout the remainder of 1997, the Registrant expects to
continue using cash generated from equipment sales to purchase and
replace containers which have been lost or damaged beyond repair.
The Registrant's operating performance contributed to a 14% decline in
net lease receivables at June 30,1 997 when compared to December 31,
1996. The Registrant's cash distribution from operations for the second
quarter of 1997 was 7.25% (annualized) of the limited partners' original
capital contribution, a decline of 0.5% (annualized) from the first
quarter of 1997. These distributions are directly related to the
Registrant's results from operations and may fluctuate accordingly.
During 1996, ocean carriers and other transport companies moved away from
leasing containers outright, as declining container prices, favorable
interest rates and the abundance of available capital resulted in ocean
carriers and transport companies purchasing a larger share of equipment
for their own account, reducing the demand for leased containers. Once
the demand for leased containers began to fall, per-diem rental rates
were also adversely affected, contributing to an uncertain start to 1997.
Since the beginning of the year, the container leasing industry has
experienced an upward trend in container utilization. The impact of this
trend on the utilization rates of the Registrant has been mixed. The
Registrant's dry container utilization rate increased from 77% at
December 31, 1996 to 80% at June 30, 1997, while the refrigerated
container utilization rates declined from 86% at December 31, 1996 to 82%
at June 30, 1997, respectively. During 1996, shipping lines and other
transport companies had reduced their leased fleets to minimal levels in
an attempt to reduce costs. However, increasing cargo volumes and
continued equipment imbalances within the container fleets of shipping
lines and transport companies have established a need for these companies
to replenish their leased fleets.
Although there has been a general improvement in container utilization
rates, per-diem rental rates continue to remain under pressure. The
decline in per-diem rental rates from those evidenced during 1996 can be
attributed to the following factors: three new leasing companies have
offered new containers and low rental rates in an effort to break into
the leasing market; established leasing companies have reduced rates to
very low levels; and a continued over supply of containers. Although
these conditions are expected to continue to impact the Registrant's
financial condition and operating performance throughout 1997, the
long-term outlook remains a positive one.
2) Material changes in the results of operations between the three and
six-month periods ended June 30, 1997 and the three and six-month periods
ended June 30, 1996.
10
<PAGE> 11
Net lease revenue for the three and six-month periods ended June 30, 1997
was $1,346,583 and $2,743,047, respectively, a decline of approximately
23% and 24% from same periods in the prior year, respectively. Gross
rental revenue (a component of net lease revenue) for the three and
six-month periods ended June 30, 1997 was $2,276,081 and $4,612,886,
respectively, reflecting a decline of 17% from each of the same periods
in the prior year. During 1997, gross lease revenue was primarily
impacted by lower per-diem rental rates and utilization levels. Average
dry cargo container per-diem rental rates for the three and six-month
periods ended June 30, 1997 declined approximately 12% and 9%,
respectively, when compared to the same periods in the prior year.
Average refrigerated container per diem rental rates for the three and
six-month periods ended June 30, 1997 declined approximately 41% and 21%,
respectively, when compared to the same periods in the prior year. Dry
cargo container utilization, which steadily increased since December 31,
1996, did not recover to the same levels experienced during the three and
six-month periods ended June 30, 1996. Refrigerated container utilization
rates declined in each of the three and six-month periods ended June 30,
1997, as many of the term leases entered into during the Registrant's
initial years of operation have since expired.
The Registrant's average fleet size and utilization rates for the three
and six-month periods ended June 30, 1997 and 1996 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ ------------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
-------------- -------------- -------------- ------------
<S> <C> <C> <C> <C>
Average Fleet Size (measured in
twenty-foot equivalent units (TEU))
Dry cargo containers 20,391 20,285 20,331 20,301
Refrigerated cargo containers 811 813 811 813
Average Utilization
Dry cargo containers 78% 83% 77% 83%
Refrigerated cargo containers 83% 89% 84% 90%
</TABLE>
Rental equipment operating expenses were 29% and 28% of the Registrant's
gross lease revenue during the three and six-month periods ended June 30,
1997, respectively, as compared to 23% and 22% during the three and
six-month periods ended June 30, 1996, respectively. This increase was
largely attributable to an increase in costs associated with lower
utilization levels, including handling, storage and repositioning.
As reported in the Registrant's Current Report on Form 8-K and Amendment
No. 1 to Current Report on Form 8-K, filed with the Commission on
February 7, 1997 and February 26, 1997, respectively, Arthur Andersen,
London, England, resigned as auditors of The Cronos Group, a Luxembourg
Corporation headquartered in Orchard Lea, England (the "Parent Company"),
on February 3, 1997.
11
<PAGE> 12
The Parent Company is the indirect corporate parent of Cronos Capital
Corp., the general partner of the Registrant. In its letter of
resignation to the Parent Company, Arthur Andersen states that it
resigned as auditors of the Parent Company and all other entities
affiliated with the Parent Company. While its letter of resignation was
not addressed to the general partner or the Registrant, Arthur Andersen
confirmed to the general partner that its resignation as auditors of the
entities referred to in its letter of resignation included its
resignation as auditors of Cronos Capital Corp. and the Registrant.
Following Arthur Andersen's resignation, the Parent Company subsequently
received notification from the Securities and Exchange Commission that it
was conducting a private investigation of the Parent Company regarding
the events and circumstances leading to Arthur Andersen's resignation.
The results of this investigation are still pending. Accordingly, the
Registrant does not, at this time, have sufficient information to
determine the impact, if any, that the Securities and Exchange Commission
investigation of the Parent Company and the concerns expressed by Arthur
Andersen in its letter of resignation may have on the future operating
results and financial condition of the Registrant or the Leasing
Company's ability to manage the Registrant's fleet in subsequent periods.
However, the general partner of the Registrant does not believe, based
upon the information currently available to it, that Arthur Andersen's
resignation was triggered by any concern over the accounting policies and
procedures followed by the Registrant.
Arthur Andersen's report on the financial statements of Cronos Capital
Corp. and the Registrant, for either of the previous two years, has not
contained an adverse opinion or a disclaimer of opinion, nor was any such
report qualified or modified as to uncertainty, audit scope, or
accounting principles. During the Registrant's previous two fiscal years
and the subsequent interim period preceding Arthur Andersen's
resignation, there have been no disagreements between Cronos Capital
Corp. or the Registrant and Arthur Andersen on any matter of accounting
principles or practices, financial statement disclosure, or auditing
scope or procedure.
The Registrant retained a new auditor, Moore Stephens, P.C. ("Moore
Stephens") on April 10, 1997, as reported in the Registrant's Current
Report on Form 8-K, filed April 14, 1997.
The President of the Leasing Company, a subsidiary of the Parent Company,
along with two marketing Vice Presidents, resigned in June 1997. These
vacancies were filled by qualified, long-time employees who average over
15 years of experience in the container leasing industry, therefore
providing continuity in the management of the Leasing Company. The
Registrant and general partner do not believe these changes will have a
material impact on the future operating results and financial condition
of the Registrant.
Cautionary Statement
This Quarterly Report on Form 10-Q contains statements relating to future
results of the Registrant, including certain projections and business
trends, that are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those projected as a result of certain risks and
uncertainties, including but not limited to changes in: economic
conditions; trade policies; demand for and market acceptance of leased
marine cargo containers; competitive utilization and per-diem rental rate
pressures; as well as other risks and uncertainties, including but not
limited to those described in the above discussion of the marine
container leasing business under Item 2., Management's Discussion and
Analysis of Financial Condition and Results of Operations; and those
detailed from time to time in the filings of Registrant with the
Securities and Exchange Commission.
12
<PAGE> 13
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit
No. Description Method of Filing
--- ----------- ----------------
<S> <C> <C>
3(a) Limited Partnership Agreement of the Registrant, amended and *
restated as of December 2, 1991
3(b) Certificate of Limited Partnership of3the Registrant **
10 Form of Leasing Agent Agreement with Cronos Containers Limited ***
27 Financial Data Schedule Filed with this document
</TABLE>
(b) Reports on Form 8-K
The Registrant filed a Report on Form 8-K, April 14, 1997, reporting the
appointment of the Registrant's successor certifying accountant.
- ------------------
* Incorporated by reference to Exhibit "A" to the Prospectus of the
Registrant dated December 2, 1991, included as part of Registration
Statement on Form S-1 (No. 33-42697)
** Incorporated by reference to Exhibit 3.2 to the Registration Statement on
Form S-1 (No. 33-42697)
*** Incorporated by reference to Exhibit 10.2 to the Registration Statement
on Form S-1 (No. 33-42697)
13
<PAGE> 14
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.
IEA INCOME FUND XII, L.P.
By Cronos Capital Corp.
The General Partner
By /s/ JOHN KALLAS
---------------------
John Kallas
Vice President, Treasurer
Principal Finance & Accounting Officer
Date: August 14, 1997
14
<PAGE> 15
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description Method of Filing
--- ----------- ----------------
<S> <C> <C>
3(a) Limited Partnership Agreement of the Registrant, amended and *
restated as of December 2, 1991
3(b) Certificate of Limited Partnership of3the Registrant **
10 Form of Leasing Agent Agreement with Cronos Containers Limited ***
27 Financial Data Schedule Filed with this document
</TABLE>
- ------------------
* Incorporated by reference to Exhibit "A" to the Prospectus of the
Registrant dated December 2, 1991, included as part of Registration
Statement on Form S-1 (No. 33-42697)
** Incorporated by reference to Exhibit 3.2 to the Registration Statement on
Form S-1 (No. 33-42697)
*** Incorporated by reference to Exhibit 10.2 to the Registration Statement
on Form S-1 (No. 33-42697)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS CUSMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT JUNE 30, 1997 (UNAUDITED) AND THE STATEMENT OF OPERATIONS FOR THE
QUARTERLY PERIOD ENDED JUNE 30, 1997 (UNAUDITED) AND IS QUALIFIED IN ITS
ENTIRETY BY REFERNECE TO SUCH FINANCIAL STATEMENTS INCLUDED AS PART OF ITS
QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD JUNE 30, 1997
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,653,049
<SECURITIES> 0
<RECEIVABLES> 1,044,323
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,697,372
<PP&E> 63,405,182
<DEPRECIATION> 17,776,635
<TOTAL-ASSETS> 48,364,211
<CURRENT-LIABILITIES> 551,330
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 47,812,881
<TOTAL-LIABILITY-AND-EQUITY> 48,364,211
<SALES> 0
<TOTAL-REVENUES> 2,743,047
<CGS> 0
<TOTAL-COSTS> 2,009,504
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 790,446
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
