Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
|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.
For the transition period from _______ to _______
Commission File Number 0-21552
ATEL Cash Distribution Fund IV, L.P.
(Exact name of registrant as specified in its charter)
California 94-3145429
(State or other jurisdiction of (I. R. S. Employer
incorporation or organization) Identification No.)
235 Pine Street, 6th Floor, San Francisco, California 94104
(Address of principal executive offices)
Registrant's telephone number, including area code: (415)989-8800
Indicate by a 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 |_|
DOCUMENTS INCORPORATED BY REFERENCE
None
<PAGE>
Part I FINANCIAL INFORMATION
Item 1. Financial Statements.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
BALANCE SHEETS
JUNE 30, 1997 AND DECEMBER 31, 1996
(Unaudited)
ASSETS
1997 1996
---- ----
Cash and cash equivalents $253,294 $696,421
Accounts receivable 3,688,935 633,329
Investments in leases 34,279,086 52,264,526
---------------- ----------------
$38,221,315 $53,594,276
================ ================
LIABILITIES AND PARTNERS' CAPITAL
Non-recourse debt $10,600,226 $20,450,921
Lines of credit 500,000 1,500,000
Accounts payable:
Equipment purchases - 42,227
General partners 63,091 74,487
Other 130,195 138,590
Deposit due to lessee - 97,772
Accrued interest payable 53,813 96,904
Unearned operating lease income 315,600 463,160
---------------- ----------------
Total liabilities 11,662,925 22,864,061
Partners' capital:
General partners 78,190 67,497
Limited partners 26,480,200 30,662,718
---------------- ----------------
Total partners' capital 26,558,390 30,730,215
---------------- ----------------
$38,221,315 $53,594,276
================ ================
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
INCOME STATEMENTS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Six Months Three Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
Revenues:
Lease revenues:
<S> <C> <C> <C> <C>
Operating leases $3,911,379 $5,187,709 $1,615,492 $2,455,382
Direct financing leases 567,157 593,495 275,030 302,313
Leveraged leases 124,026 94,266 62,013 47,133
Gain on sale of assets 1,104,635 790,390 577,280 757,992
Interest income 16,958 11,665 6,716 4,362
Other income 1,142 2,601 - 1,679
---------------- ---------------- ---------------- ----------------
5,725,297 6,680,126 2,536,531 3,568,861
Expenses:
Depreciation 2,747,687 3,798,393 1,191,244 1,898,714
Interest 681,579 986,666 248,204 481,182
Amortization 513,600 248,713 321,582 120,238
Equipment and incentive management fees 413,307 483,298 208,282 260,607
Administrative cost reimbursements 140,256 116,694 70,355 70,874
Other 86,793 58,388 66,388 37,927
Provision for losses 57,231 66,796 25,343 35,689
Professional fees 15,512 23,261 10,641 16,401
---------------- ---------------- ---------------- ----------------
4,655,965 5,782,209 2,142,039 2,921,632
---------------- ---------------- ---------------- ----------------
Net income $1,069,332 $897,917 $394,492 $647,229
================ ================ ================ ================
Net income:
General partners $10,693 $8,979 $3,945 $6,472
Limited partners 1,058,639 888,938 390,547 640,757
---------------- ---------------- ---------------- ----------------
$1,069,332 $897,917 $394,492 $647,229
================ ================ ================ ================
Net income per limited partnership unit $0.14 $0.12 $0.05 $0.09
Weighted average number of units
outstanding 7,487,350 7,488,100 7,487,350 7,487,350
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
SIX MONTH PERIOD ENDED JUNE 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Limited Partners General
Units Amount Partners Total
<S> <C> <C> <C> <C>
Balance December 31, 1996 7,487,350 $30,662,718 $67,497 $30,730,215
Distributions to limited partners (5,241,157) - (5,241,157)
Net income 1,058,639 10,693 1,069,332
---------------- ---------------- ---------------- ----------------
Balance June 30, 1997 7,487,350 $26,480,200 $78,190 $26,558,390
================ ================ ================ ================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
STATEMENTS OF CASH FLOWS
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Six Months Three Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
Operating activities:
<S> <C> <C> <C> <C>
Net income $1,069,332 $897,917 $394,492 $647,229
Adjustments to reconcile net income to net
cash (used in) provided by
operations:
Depreciation 2,747,687 3,798,393 1,191,244 1,898,714
Amortization 513,600 248,713 321,582 120,238
Leveraged lease income (124,026) (94,266) (124,026) (50,851)
Gain on sale of assets (1,104,635) (790,390) (577,280) (757,992)
Provision for losses 57,231 66,796 25,343 35,689
Changes in operating assets and liabilities:
Accounts receivable (3,055,606) 160,661 (3,174,611) 189,554
Notes receivable - 67,511 - 33,755
Bank overdrafts - - - (334,627)
Accounts payable, general partner (11,396) (59,579) (4,127) 41,084
Accounts payable, other (8,395) (86,794) 12,781 (23,604)
Accrued interest payable (43,091) 17,365 (11,536) 36,117
Deposits due to lessees (97,772) (771,024) - -
Unearned operating lease income (147,560) (95,445) (154,464) (56,467)
---------------- ---------------- ---------------- ----------------
Net cash (used in) from operations (204,631) 3,359,858 (2,100,602) 1,778,839
---------------- ---------------- ---------------- ----------------
Investing activities:
Proceeds from sales of assets 14,368,852 2,152,220 9,605,818 1,515,825
Reduction in investment in direct financing
leases 1,426,678 1,719,468 696,809 695,706
Reduction in investment in leveraged leases 177,571 13,007 82,492 13,007
Purchase of equipment on direct financing
leases (77,518) (898,949) - -
Purchase of equipment on operating leases (42,227) (1,569,753) - 42,228
---------------- ---------------- ---------------- ----------------
Net cash provided by investing activities 15,853,356 1,415,993 10,385,119 2,266,766
---------------- ---------------- ---------------- ----------------
</TABLE>
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
STATEMENTS OF CASH FLOWS
(Continued)
SIX AND THREE MONTH PERIODS ENDED
JUNE 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Six Months Three Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Financing activities:
Payments of non-recourse debt (9,850,695) (3,167,640) (6,213,264) (1,660,045)
Distributions to limited partners (5,241,157) (5,149,515) (2,620,581) (2,619,728)
Repayment of line of credit (1,000,000) - (500,000) -
Borrowings under lines of credit - 2,500,000 - 500,000
Repurchase of units - (2,929) - (2,929)
---------------- ---------------- ---------------- ----------------
Net cash (used in) provided by financing
activities (16,091,852) (5,820,084) (9,333,845) (3,782,702)
---------------- ---------------- ---------------- ----------------
Net (decrease) increase in cash and cash
equivalents (443,127) (1,044,233) (1,049,328) 262,903
Cash at beginning of period 696,421 1,355,258 1,302,622 48,122
================ ================ ================ ================
Cash at end of period $253,294 $311,025 $253,294 $311,025
================ ================ ================ ================
Supplemental disclosures of cash flow information:
Cash paid during period for interest $724,670 $969,301 $200,434 $445,065
================ ================ ================ ================
Supplemental schedule of non-cash transactions:
Operating lease assets reclassified to assets
held or sale or lease $133,552
================
</TABLE>
See accompanying notes.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
1. Summary of significant accounting policies:
Interim financial statements:
The unaudited interim financial statements reflect all adjustments which are, in
the opinion of the general partners, necessary to a fair statement of financial
position and results of operations for the interim periods presented. All such
adjustments are of a normal recurring nature. These unaudited interim financial
statements should be read in conjunction with the most recent report on Form
10K.
2. Organization and partnership matters:
ATEL Cash Distribution Fund IV, L.P. (the Partnership), was formed under the
laws of the State of California on September 19, 1991, for the purpose of
acquiring equipment to engage in equipment leasing and sales activities.
Contributions in the aggregate of $600 were received as of October 8, 1991, $100
of which represented the General Partner's continuing interest, and $500 of
which represented the Initial Limited Partners' capital investment.
Upon the sale of the minimum amount of Units of Limited Partnership interest
(Units) of $1,200,000 and the receipt of the proceeds thereof on March 6, 1992,
the Partnership commenced operations. The Fund or the General Partner on behalf
of the Fund, will incur costs in connection with the organization, registration
and issuance of the Units. The amount of such costs to be born by the Fund is
limited by certain provisions in the Agreement of Limited Partnership.
As of February 3, 1993, the Fund had received subscriptions for 7,500,000
Limited Partnership Units ($75,000,000) in addition to the Initial Limited
Partners' 50 Units and the Partnership's offering was closed.
The Partnership's business consists of leasing various types of equipment. As of
June 30, 1997, the original terms of the leases was from two to eight years.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
3. Investment in leases:
The Partnership's investment in leases consists of the following:
<TABLE>
<CAPTION>
Depreciation
Expense or Reclass-
December 31, Amortization ifications & June 30,
1996 Additions of Leases Dispositions 1997
---- --------- --------- -------------- ----
<S> <C> <C> <C> <C> <C>
Net investment in operating
leases $33,943,386 ($2,747,687) ($12,349,406) $18,846,293
Net investment in direct
financing leases 11,855,610 $77,518 (1,426,678) (884,146) 9,622,304
Net investment in leveraged
leases 4,844,014 - (53,545) - 4,790,469
Residual value interests 610,878 - - (28,821) 582,057
Equipment held for lease 16,464 - - (1,444) 15,020
Initial direct costs, net of
accumulated amortization
of $1,365,512 in 1996 and
$1,132,774 in 1997 1,300,152 - (513,600) (400) 786,152
Reserve for losses (305,978) (57,231) - - (363,209)
------------------- ---------------- ---------------- ---------------- ----------------
$52,264,526 $20,287 ($4,741,510) ($13,264,217) $34,279,086
=================== ================ ================ ================ ================
</TABLE>
The following schedule provides an analysis of the Partnership's investment in
property on operating leases by major classifications as of December 31, 1996,
acquisitions and dispositions during the quarters ended March 31, 1997 and June
30, 1997 and as of June 30, 1997.
<TABLE>
<CAPTION>
Acquisitions &
December 31, Dispositions June 30,
1996 1st Quarter 2nd Quarter 1997
---- ----------- ----------- ----
<S> <C> <C> <C> <C>
Transportation $21,497,670 ($7,105,011) ($26,223) $14,366,436
Corporate aircraft 9,635,969 (1,890,000) - 7,745,969
Printing 4,393,249 - - 4,393,249
Other 4,726,040 - (1,708,303) 3,017,737
Manufacturing 1,587,670 - - 1,587,670
Ground support equipment 1,127,988 - - 1,127,988
Mining 4,347,960 - (3,347,960) 1,000,000
Data processing 851,561 - - 851,561
Office equipment 216,080 - - 216,080
Materials handling 3,915,999 - (3,915,999) -
Construction equipment 4,985,297 - (4,985,297) -
---------------- ---------------- ---------------- ----------------
57,285,483 (8,995,011) (13,983,782) 34,306,690
Less accumulated depreciation (23,342,097) 3,234,447 4,647,253 (15,460,397)
---------------- ---------------- ---------------- ----------------
$33,943,386 ($5,760,564) ($9,336,529) $18,846,293
================ ================ ================ ================
</TABLE>
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
3. Investments in leases (continued):
All of the property on operating leases was acquired during 1992, 1993, 1994,
1995, 1996 and 1997.
At June 30, 1997, the aggregate amounts of future minimum lease payments are as
follows:
Year ending Direct
December 31, Financing Operating Total
1997 $1,778,905 $2,912,529 $4,691,434
1998 3,213,362 4,839,307 8,052,669
1999 2,221,426 3,987,706 6,209,132
2000 1,313,630 1,751,703 3,065,333
2001 808,909 1,203,959 2,012,868
Thereafter 394,796 1,503,753 1,898,549
---------------- ---------------- ----------------
$9,731,028 $16,198,957 $25,929,985
================ ================ ================
4. Non-recourse debt:
Notes payable to financial institutions are due in varying monthly, quarterly
and semi-annual installments of principal and interest. The notes are secured by
assignments of lease payments and pledges of the assets which were purchased
with the proceeds of the particular notes. Interest rates on the notes vary from
6.25% to 10.57%.
Future minimum principal payments of long-term non-recourse debt as of June 30,
1997 are as follows:
Year ending
December 31, Principal Interest Total
1997 $1,844,634 $391,078 $2,235,712
1998 3,165,268 580,968 3,746,236
1999 2,982,139 332,906 3,315,045
2000 1,553,973 151,791 1,705,764
2001 697,282 56,062 753,344
Thereafter 356,930 22,731 379,661
---------------- ---------------- ----------------
$10,600,226 $1,535,536 $12,135,762
================ ================ ================
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
5. Related party transactions:
The terms of the Agreement of Limited Partnership provide that the General
Partners and/or Affiliates are entitled to receive certain fees for equipment
acquisition, management and resale and for management of the Partnership.
The General Partners and/or Affiliates earned the following fees, commissions
and reimbursements, pursuant to the Limited Partnership Agreement as follows:
1997 1996
---- ----
Reimbursement of administrative costs $140,256 $116,694
Incentive and equipment management fees 413,307 483,298
---------------- ----------------
$553,563 $599,992
================ ================
The amounts above are gross amounts incurred by the General Partners and/or
Affiliates, including commissions to broker-dealers for the sales of Partnership
Units.
6. Partner's capital:
The Fund is authorized to issue up to 7,500,000 Units of Limited Partnership
interest in addition to the Initial Limited Partners.
The Fund's Net Profits, Net Losses and Tax Credits are to be allocated 99% to
the Limited Partners and 1% to the General Partners.
As more fully described in the Agreement of Limited Partnership, available Cash
from Operations and Cash from Sales or Refinancing shall be distributed as
follows:
First, 5% of Distributions of Cash from Operations to the General Partner
as Incentive Management Fees.
Second, the balance to the Limited Partners until the Limited Partners have
received aggregate Distributions, as defined, in an amount equal to
their Original Invested Capital, as defined, plus a 10% per annum
cumulative (compounded daily) return on their Adjusted Invested
Capital, as defined.
<PAGE>
ATEL CASH DISTRIBUTION FUND IV, L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
6. Partner's capital (continued):
Third, the General Partner will receive as Incentive Management Fees, the
following:
(A) 10% of remaining Cash from Operations, as defined,
(B) 15% of remaining Cash from Sales or Refinancing, as defined.
Fourth, the balance to the Limited Partners.
7. Line of credit:
The Partnership participates with the General Partner and certain of its
Affiliates in a $90,000,000 revolving credit agreement with a group of financial
institutions which expires on October 28, 1997. The agreement includes an
acquisition facility to be used by the Partnership and Affiliates to provide
bridge financing for assets on leases. Draws on the acquisition facility by any
individual borrower are secured only by that borrower's assets, including
equipment and related leases.
At June 30, 1997, the Partnership had $500,000 of borrowings under the line of
credit.
The credit agreement includes certain financial covenants applicable to each
borrower. The Partnership was in compliance with its covenants as of June 30,
1997.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capital Resources and Liquidity
Funds which have been received, but which have not yet been invested in leased
equipment, are invested in interest-bearing accounts or high-quality/short-term
commercial paper. The Partnership's public offering provided for a total maximum
capitalization of $75,000,000. As of February 3, 1992, the Partnership had
received and accepted subscriptions for a total of 7,500,000 Units ($75,000,000)
and the offering was closed.
The Partnership's primary source of liquidity during 1996 were lease revenues,
proceeds from the sales of lease assets and borrowings under the line of credit.
The liquidity of the Partnership will vary in the future, increasing to the
extent cash flows from leases exceed expenses, and decreasing as lease assets
are acquired, as distributions are made to the limited partners and to the
extent expenses exceed cash flows from leases.
The Partnership currently has available adequate reserves to meet contingencies,
but in the event those reserves were found to be inadequate, the Partnership
would likely be in a position to borrow against its current portfolio to meet
such requirements. The general partner envisions no such requirements for
operating purposes.
The Partnership participates with the General Partner and certain of its
affiliates in a $90,000,000 revolving line of credit with a financial
institution. The line of credit expires on October 28, 1997.
As of June 30, 1997, the Partnership had borrowed approximately $38,342,000,
with a remaining unpaid balance of $10,600,226. Borrowings are to be
non-recourse to the Partnership, that is, the only recourse of the lender will
be to the equipment or corresponding lease acquired or secured with the loan
proceeds. The general partner expects that aggregate borrowings in the future
will be approximately 40% of aggregate equipment cost. In any event, the
Agreement of Limited Partnership limits such borrowings to 40% of the total cost
of equipment, in aggregate.
No commitments of capital have been or are expected to be made other than for
the acquisition of additional equipment. As of June 30, 1997, there were no such
commitments.
If inflation in the general economy becomes significant, it may affect the
Partnership inasmuch as the residual (resale) values and rates on re-leases of
the Partnership's leased assets may increase as the costs of similar assets
increase. However, the Partnership's revenues from existing leases would not
increase, as such rates are generally fixed for the terms of the leases without
adjustment for inflation.
If interest rates increase significantly, the lease rates that the Partnership
can obtain on future leases will be expected to increase as the cost of capital
is a significant factor in the pricing of lease financing. Leases already in
place, for the most part, would not be affected by changes in interest rates.
<PAGE>
Cash Flows, 1997 vs. 1996:
Six months:
During the first six months of 1997, proceeds from asset sales and operating
lease revenues were the primary sources of cash flows.
Cash flows from operations declined by $3,564,489 from $3,359,858 in 1996 to
($204,631) in 1997. The decrease is a result of decreased operating lease
revenues and increased balances of receivables (due to sales of certain assets).
Such revenues declined by $1,276,330 from 1996 to 1997.
Sources of cash from investing activities consisted almost exclusively of
proceeds from the sales of lease assets and from direct financing lease rents
accounted for as reductions of the net investment in such leases. Proceeds from
sales of assets increased from $2,152,220 in 1996 to $14,368,852 in 1997. A
large portion of the sales proceeds was used to pay off non-recourse debt
associated with the assets sold.
In 1997, there were no sources of cash from financing activities. Cash used to
pay non-recourse debt increased significantly. The increase resulted from sales
of certain leases which were financed primarily with non-recourse debt and upon
sale, the debt was repaid.
Three months:
The two major sources of cash for the second quarter were proceeds form lease
asset sales and operating lease rents.
Operating lease rents have decreased by $839,890 from the prior year due to
asset sales during the preceding twelve months.
Proceeds from lease assets sales were the most significant source of cash from
investing activities. They increased from $1,515,825 in 1996 to $9,605,818 in
1997 due to increased amounts of asset sales as noted above for the six month
period.
During the second quarter of 1997, there were no financing sources of cash.
Payments of non-recourse debt increased for the same reasons as noted above for
the six month period.
Results of Operations
In 1997, operations resulted in net income of $1,069,332 for the six month
period and $394,492 for the three month period. Operations in the 1996 resulted
in net income of $897,917 for the six month period and $647,229 for the three
month period.
1996 vs. 1995:
Revenues decreased from $6,680,126 in 1996 to $5,725,297 in 1997, a decrease of
$954,829. Operating lease revenues declined by $1,276,330 due to lease
terminations and sales of the related assets. This was partially offset by an
increase in gains recognized on sales of assets. Gains on sales of lease assets
increased from $790,390 in 1996 to $1,104,635 in 1997, an increase of $314,245.
Most of the assets sold were assets which had come off operating leases. The
original cost of operating lease assets sold increased from $4,279,977 in 1996
to $22,978,803 in 1997.
The Partnership's operating expenses decreased by $1,126,244 compared to 1996.
Combined, depreciation and amortization expenses decreased by $785,819. These
decreases resulted from the lease terminations and asset sales noted above.
Interest expense decreased compared to 1996 as a result of the debt repayments
noted above.
<PAGE>
PART II OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
Inapplicable.
Item 2. CHANGES IN SECURITIES.
Inapplicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
Inapplicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Inapplicable.
Item 5. OTHER INFORMATION.
Inapplicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Documents filed as a part of this report
1. Financial Statements
Included in Part I of this report:
Balance Sheets, June 30, 1997 and December 31, 1996.
Income statements for the six and three month periods
ended June 30, 1997 and 1996.
Statement of changes in partners' equity for the six
months ended June 30, 1997.
Statements of cash flows for the six and three month
periods ended June 30, 1997 and 1996.
Notes to the Financial Statements.
2. Financial Statement Schedules
All other schedules for which provision is made in the
applicable accounting regulations of the Securities and
Exchange Commission are not required under the related
instructions or are inapplicable, and therefore have been
omitted.
(b) Report on Form 8-K
None
<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.
Date:
August 14, 1997
ATEL CASH DISTRIBUTION FUND IV, L.P.
(Registrant)
By: ATEL Financial Corporation
General Partner of Registrant
By: /s/ A. J. BATT
---------------------------------
A. J. Batt
President and Chief Executive Officer
of General Partner
By: /s/ DEAN L. CASH
---------------------------------
Dean L. Cash
Executive Vice President
of General Partner
By: /s/ F. RANDALL BIGONY
--------------------------------------------
F. Randall Bigony
Principal financial officer of registrant
By: /s/ DONALD E. CARPENTER
--------------------------------------------
Donald E. Carpenter,
Principal accounting officer of
registrant
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> dec-31-1997
<PERIOD-START> jan-01-1997
<PERIOD-END> jun-30-1997
<CASH> 253,294
<SECURITIES> 0
<RECEIVABLES> 3,688,935
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 38,221,315
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 26,558,390
<TOTAL-LIABILITY-AND-EQUITY> 38,221,315
<SALES> 0
<TOTAL-REVENUES> 5,725,297
<CGS> 0
<TOTAL-COSTS> 3,830,362
<OTHER-EXPENSES> 86,793
<LOSS-PROVISION> 57,231
<INTEREST-EXPENSE> 681,579
<INCOME-PRETAX> 1,069,332
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,069,332
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,069,332
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
