UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES
EXCHANGE ACT OF 1934
For The Quarterly Period Ended September 30, 1996
Commission File Number 0-21762
Gateway Tax Credit Fund III Ltd.
(Exact name of Registrant as specified in its charter)
Florida 59-3090386
(State or other jurisdiction of ( I.R.S. Employer No.)
incorporation or organization)
880 Carillon Parkway, St. Petersburg, Florida 33716
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (813)573-3800
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
Number of Units
Title of Each Class September 30, 1996
Units of Limited Partnership
Interest: $1,000 per unit 33,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1995 Form 10-K, filed with the
Securities and Exchange Commission on June 27, 1996
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238
<PAGE>
PART I - Financial Information
Item 1. Financial Statements
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1996 1996
----------- -----------
SERIES 7 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 224,270 $ 259,782
Investments in Securities 43,272 42,189
Receivable from Project Partnerships 0 0
----------- ----------
Total Current Assets 267,542 301,971
Investments in Securities 451,295 436,329
Investments in Project
Partnerships, Net 5,011,821 5,464,982
----------- ----------
Total Assets $5,730,658 $6,203,282
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 50,822 $ 53,005
Payable to Project Partnerships 0 0
---------- ----------
Total Current Liabilities 50,822 53,005
Long-Term Liabilities:
Payable to General Partners 143,028 139,289
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at September 30, 1996 and
March 31, 1996) 5,572,718 6,042,156
General Partners (35,910) (31,168)
----------- ----------
Total Partners' Equity 5,536,808 6,010,988
----------- ----------
Total Liabilities and
Partners Equity $5,730,658 $6,203,282
=========== ==========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1996 1996
----------- ----------
SERIES 8 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 351,373 $ 295,021
Investments in Securities 38,354 37,407
Receivable from Project Partnerships 453 76,027
----------- ----------
Total Current Assets 390,180 408,455
Investments in Securities 427,075 413,585
Investments in Project
Partnerships, Net 5,216,011 5,658,160
----------- ----------
Total Assets $6,033,266 $6,480,200
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 41,328 $ 43,617
Payable to Project Partnerships 0 0
----------- ----------
Total Current Liabilities 41,328 43,617
Long-Term Liabilities:
Payable to General Partners 173,753 155,249
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at September 30, 1996 and
March 31, 1996) 5,847,628 6,306,146
General Partners (29,443) (24,812)
---------- ----------
Total Partners' Equity 5,818,185 6,281,334
----------- ----------
Total Liabilities and
Partners Equity $6,033,266 $6,480,200
=========== ==========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1996 1996
----------- ----------
SERIES 9 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 101,021 $ 112,252
Investments in Securities 26,585 25,978
Receivable from Project Partnerships 8,545 8,545
----------- ----------
Total Current Assets 136,151 146,775
Investments in Securities 288,870 280,586
Investments in Project
Partnerships, Net 4,162,238 4,397,301
----------- ----------
Total Assets $4,587,259 $4,824,662
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 23,621 $ 25,016
Payable to Project Partnerships 0 0
----------- ----------
Total Current Liabilities 23,621 25,016
Long-Term Liabilities:
Payable to General Partners 94,725 78,117
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at September 30, 1996 and
March 31, 1996) 4,479,061 4,729,151
General Partners (10,148) (7,622)
----------- ----------
Total Partners' Equity 4,468,913 4,721,529
----------- ----------
Total Liabilities and
Partners Equity $4,587,259 $4,824,662
=========== ==========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1996 1996
----------- ----------
SERIES 10 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 164,535 $ 162,576
Investments in Securities 19,646 19,125
Receivable from Project Partnerships 0 13,059
----------- ----------
Total Current Assets 184,181 194,760
Investments in Securities 227,973 220,599
Investments in Project
Partnerships, Net 3,677,467 3,788,041
----------- ----------
Total Assets $4,089,621 $4,203,400
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 27,444 $ 28,549
Payable to Project Partnerships 7,712 7,713
----------- ----------
Total Current Liabilities 35,156 36,262
Long-Term Liabilities:
Payable to General Partners 22,457 18,327
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at September 30, 1996 and
March 31, 1996) 4,035,868 4,151,503
General Partners (3,860) (2,692)
----------- ----------
Total Partners' Equity 4,032,008 4,148,811
----------- ----------
Total Liabilities and
Partners Equity $4,089,621 $4,203,400
=========== ==========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1996 1996
----------- ----------
SERIES 11 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 104,332 $ 365,027
Investments in Securities 19,595 18,995
Receivable from Project Partnerships 0 8,250
----------- ----------
Total Current Assets 123,927 392,272
Investments in Securities 238,611 230,179
Investments in Project
Partnerships, Net 4,345,576 4,340,316
----------- ----------
Total Assets $4,708,114 $4,962,767
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 23,143 $ 32,148
Payable to Project Partnerships 0 279,887
----------- ----------
Total Current Liabilities 23,143 312,035
Long-Term Liabilities:
Payable to General Partners 0 3,707
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at September 30, 1996 and
March 31, 1996) 4,684,113 4,646,546
General Partners 858 479
----------- ----------
Total Partners' Equity 4,684,971 4,647,025
----------- ---------
Total Liabilities and
Partners Equity $4,708,114 $4,962,767
=========== =========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
1996 1996
----------- ----------
TOTAL SERIES 7 - 11 (Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 945,531 $ 1,194,658
Investments in Securities 147,452 143,694
Receivable from Project Partnerships 8,998 105,881
------------ -----------
Total Current Assets 1,101,981 1,444,233
Investments in Securities 1,633,824 1,581,278
Investments in Project
Partnerships, Net 22,413,113 23,648,800
------------ -----------
Total Assets $25,148,918 $26,674,311
============ ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 170,348 $ 182,335
Payable to Project Partnerships 7,712 287,600
------------ -----------
Total Current Liabilities 178,060 469,935
Long-Term Liabilities:
Payable to General Partners 429,973 394,689
Partners' Equity:
Limited Partners (10,395 units for
Series 7, 9,980 for Series 8,
6,254 for Series 9, 5,043 for
Series 10 and 5,127 for Series 11
at September 30, 1996 and
March 31, 1996) 24,619,388 25,875,502
General Partners (78,503) (65,815)
------------ -----------
Total Partners' Equity 24,540,885 25,809,687
------------ -----------
Total Liabilities and
Partners Equity $25,148,918 $26,674,311
============ ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 7 ----------- ----------
Revenues:
Interest Income $ 11,059 $ 15,281
----------- -----------
Expenses:
Asset Management Fee-
General Partner 19,500 19,500
General and Administrative-
General Partner 2,970 1,699
General and Administrative-
Other 8,614 9,226
Amortization 5,486 5,379
----------- -----------
Total Expenses 36,570 35,804
Loss Before Equity in Losses of
Project Partnerships (25,511) (20,523)
Equity in Income (Losses) of Project
Partnerships (197,028) (238,034)
----------- -----------
Net Loss $ (222,539) $ (258,557)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (220,314) $ (255,971)
General Partners (2,225) (2,586)
----------- -----------
$ (222,539) $ (258,557)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (21.19) $ (24.62)
Number of Limited
Partnership Units Outstanding 10,395 10,395
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 8 ----------- ----------
Revenues:
Interest Income $ 14,448 $ 14,399
----------- ----------
Expenses:
Asset Management Fee-
General Partner 21,500 21,500
General and Administrative-
General Partner 3,275 1,923
General and Administrative-
Other 9,464 10,149
Amortization 3,745 3,888
----------- -----------
Total Expenses 37,984 37,460
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (23,536) (23,061)
Equity in Income (Losses) of Project
Partnerships (213,171) (285,312)
----------- -----------
Net Loss $ (236,707) $ (308,373)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (234,340) $ (305,289)
General Partners (2,367) (3,084)
----------- -----------
$ (236,707) $ (308,373)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (23.48) $ (30.59)
Number of Limited
Partnership Units Outstanding 9,980 9,980
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 9 ----------- ----------
Revenues:
Interest Income $ 5,780 $ 8,133
----------- -----------
Expenses:
Asset Management Fee-
General Partner 12,000 12,000
General and Administrative-
General Partner 1,828 1,073
General and Administrative-
Other 5,391 5,718
Amortization 1,779 1,507
----------- -----------
Total Expenses 20,998 20,298
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (15,218) (12,165)
Equity in Income (Losses) of Project
Partnerships (110,687) (40,489)
----------- -----------
Net Loss $ (125,905) $ (52,654)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (124,646) $ (52,127)
General Partners (1,259) (527)
----------- -----------
$ (125,905) $ (52,654)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (19.93) $ (8.33)
Number of Limited
Partnership Units Outstanding 6,254 6,254
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 10 ----------- ----------
Revenues:
Interest Income $ 6,025 $ 6,834
----------- -----------
Expenses:
Asset Management Fee-
General Partner 7,500 7,500
General and Administrative-
General Partner 1,142 672
General and Administrative-
Other 3,602 2,801
Amortization 1,476 1,453
----------- -----------
Total Expenses 13,720 12,426
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (7,695) (5,592)
Equity in Income (Losses) of Project
Partnerships (55,725) (40,713)
----------- -----------
Net Loss $ (63,420) $ (46,305)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (62,786) $ (45,842)
General Partners (634) (463)
----------- -----------
$ (63,420) $ (46,305)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (12.45) $ (9.09)
Number of Limited
Partnership Units Outstanding 5,043 5,043
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 11 ----------- ----------
Revenues:
Interest Income $ 7,392 $ 20,284
----------- -----------
Expenses:
Asset Management Fee-
General Partner 6,000 5,155
General and Administrative-
General Partner 915 993
General and Administrative-
Other 3,008 3,219
Amortization 1,663 1,198
----------- -----------
Total Expenses 11,586 10,565
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (4,194) 9,719
Equity in Income (Losses) of Project
Partnerships 23,411 (43,847)
----------- -----------
Net Loss $ 19,217 $ (34,128)
=========== ===========
Allocation of Net Loss:
Limited Partners $ 19,025 $(33,787)
General Partners 192 (341)
----------- -----------
$ 19,217 $ (34,128)
=========== ===========
Net Loss Per Limited
Partnership Unit $ 3.71 $ (6.59)
Number of Limited
Partnership Units Outstanding 5,127 5,127
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
TOTAL SERIES 7 - 11 ----------- ----------
Revenues:
Interest Income $ 44,704 $ 64,931
----------- -----------
Expenses:
Asset Management Fee-
General Partner 66,500 65,655
General and Administrative-
General Partner 10,130 6,360
General and Administrative-
Other 30,079 31,113
Amortization 14,149 13,425
----------- -----------
Total Expenses 120,858 116,553
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (76,154) (51,622)
Equity in Income (Losses) of Project
Partnerships (553,200) (648,395)
----------- -----------
Net Loss $ (629,354) $ (700,017)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (623,061) $ (693,016)
General Partners (6,293) (7,001)
----------- -----------
$ (629,354) $ (700,017)
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 7 ----------- ----------
Revenues:
Interest Income $ 21,940 $ 32,887
----------- -----------
Expenses:
Asset Management Fee-
General Partner 39,000 38,500
General and Administrative-
General Partner 5,920 5,560
General and Administrative-
Other 12,316 13,435
Amortization 10,946 11,026
----------- -----------
Total Expenses 68,182 68,521
Loss Before Equity in Losses of
Project Partnerships (46,242) (35,634)
Equity in Income (Losses) of Project
Partnerships (427,938) (516,035)
----------- -----------
Net Loss $ (474,180) $ (551,669)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (469,438) $ (546,152)
General Partners (4,742) (5,517)
----------- -----------
$ (474,180) $ (551,669)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (45.16) $ (52.54)
Number of Limited
Partnership Units Outstanding 10,395 10,395
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 8 ----------- ----------
Revenues:
Interest Income $ 25,776 $ 25,342
----------- ----------
Expenses:
Asset Management Fee-
General Partner 43,000 43,000
General and Administrative-
General Partner 6,528 6,305
General and Administrative-
Other 13,391 14,345
Amortization 6,060 6,337
----------- -----------
Total Expenses 68,979 69,987
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (43,203) (44,645)
Equity in Income (Losses) of Project
Partnerships (419,946) (413,351)
----------- -----------
Net Loss $ (463,149) $ (457,996)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (458,518) $ (453,416)
General Partners (4,631) (4,580)
----------- -----------
$ (463,149) $ (457,996)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (45.94) $ (45.43)
Number of Limited
Partnership Units Outstanding 9,980 9,980
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 9 ----------- -----------
Revenues:
Interest Income $ 11,449 $ 17,475
----------- -----------
Expenses:
Asset Management Fee-
General Partner 24,000 24,000
General and Administrative-
General Partner 3,644 3,519
General and Administrative-
Other 7,519 8,228
Amortization 3,558 3,073
----------- -----------
Total Expenses 38,721 38,820
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (27,272) (21,345)
Equity in Income (Losses) of Project
Partnerships (225,344) (55,941)
----------- -----------
Net Loss $ (252,616) $ (77,286)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (250,090) $ (76,513)
General Partners (2,526) (773)
----------- -----------
$ (252,616) $ (77,286)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (39.99) $ (12.23)
Number of Limited
Partnership Units Outstanding 6,254 6,254
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 10 ----------- -----------
Revenues:
Interest Income $ 13,033 $ 14,417
----------- -----------
Expenses:
Asset Management Fee-
General Partner 15,000 15,000
General and Administrative-
General Partner 2,276 2,198
General and Administrative-
Other 5,057 4,610
Amortization 2,936 2,848
----------- -----------
Total Expenses 25,269 24,656
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (12,236) (10,239)
Equity in Income (Losses) of Project
Partnerships (104,567) (25,769)
----------- -----------
Net Loss $ (116,803) $ (36,008)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (115,635) $ (35,648)
General Partners (1,168) (360)
----------- -----------
$ (116,803) $ (36,008)
=========== ===========
Net Loss Per Limited
Partnership Unit $ (22.93) $ (7.07)
Number of Limited
Partnership Units Outstanding 5,043 5,043
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
SERIES 11 ----------- -----------
Revenues:
Interest Income $ 15,996 $ 45,089
----------- -----------
Expenses:
Asset Management Fee-
General Partner 12,000 9,655
General and Administrative-
General Partner 1,820 1,699
General and Administrative-
Other 4,276 4,542
Amortization 3,525 1,852
----------- -----------
Total Expenses 21,621 17,748
----------- -----------
Loss Before Equity in Losses of
Project Partnerships (5,625) 27,341
Equity in Income (Losses) of Project
Partnerships 43,571 (29,488)
----------- -----------
Net Loss $ 37,946 $ (2,147)
=========== ===========
Allocation of Net Loss:
Limited Partners $ 37,567 $ (2,126)
General Partners 379 (21)
----------- -----------
$ 37,946 $ (2,147)
=========== ===========
Net Loss Per Limited
Partnership Unit $ 7.33 $ (0.41)
Number of Limited
Partnership Units Outstanding 5,127 5,127
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
1996 1995
TOTAL SERIES 7 - 11 ----------- ------------
Revenues:
Interest Income $ 88,194 $ 135,210
------------ ------------
Expenses:
Asset Management Fee-
General Partner 133,000 130,155
General and Administrative-
General Partner 20,188 19,281
General and Administrative-
Other 42,559 45,160
Amortization 27,025 25,136
------------ ------------
Total Expenses 222,772 219,732
------------ ------------
Loss Before Equity in Losses of
Project Partnerships (134,578) (84,522)
Equity in Income (Losses) of Project
Partnerships (1,134,224) (1,040,584)
------------ ------------
Net Loss $(1,268,802) $(1,125,106)
============ ============
Allocation of Net Loss:
Limited Partners $(1,256,114) $(1,113,855)
General Partners (12,688) (11,251)
------------ ------------
$(1,268,802) $(1,125,106)
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
General
Limited Partners' Total
Partners' Equity Partners'
Equity (Deficit) Equity
SERIES 7 ----------- ----------- -----------
Balance at
March 31, 1995 $ 7,046,659 $ (21,021) $ 7,025,638
Distributions 0 0 0
Net Loss (546,152) (5,517) (551,669)
----------- ---------- -----------
Balance at
September 30, 1995 $ 6,500,507 $ (26,538) $ 6,473,969
=========== ========== ===========
Balance at
March 31, 1996 $ 6,042,156 $ (31,168) $ 6,010,988
Net Loss (469,438) (4,742) (474,180)
----------- ---------- -----------
Balance at
September 30, 1996 $ 5,572,718 $ (35,910) $ 5,536,808
=========== ========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
General
Limited Partners' Total
Partners' Equity Partners'
Equity (Deficit) Equity
SERIES 8 ----------- ----------- -----------
Balance at
March 31, 1995 $ 7,495,677 $ (12,797) $ 7,482,880
Distributions 0 0 0
Net Loss (453,416) (4,580) (457,996)
----------- ---------- -----------
Balance at
September 30, 1995 $ 7,042,261 $ (17,377) $ 7,024,884
=========== ========== ===========
Balance at
March 31, 1996 $ 6,306,146 $ (24,812) $ 6,281,334
Net Loss (458,518) (4,631) (463,149)
----------- ---------- -----------
Balance at
September 30, 1996 $ 5,847,628 $ (29,443) $ 5,818,185
=========== ========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
General
Limited Partners' Total
Partners' Equity Partners'
Equity (Deficit) Equity
SERIES 9 ----------- ----------- -----------
Balance at
March 31, 1995 $ 5,228,817 $ (2,575) $ 5,226,242
Distributions 0 0 0
Net Loss (76,513) (773) (77,286)
----------- ---------- -----------
Balance at
September 30, 1995 $ 5,152,304 $ (3,348) $ 5,148,956
=========== ========== ===========
Balance at
March 31, 1996 $ 4,729,151 $ (7,622) $ 4,721,529
Net Loss (250,090) (2,526) (252,616)
----------- ---------- -----------
Balance at
September 30, 1996 $ 4,479,061 $(10,148) $ 4,468,913
=========== ========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
General
Limited Partners' Total
Partners' Equity Partners'
Equity (Deficit) Equity
SERIES 10 ----------- ----------- -----------
Balance at
March 31, 1995 $ 4,338,647 $ (802) $ 4,337,845
Distributions 0 0 0
Net Loss (35,648) (360) (36,008)
----------- ---------- -----------
Balance at
September 30, 1995 $ 4,302,999 $ (1,162) $ 4,301,837
=========== ========== ===========
Balance at
March 31, 1996 $ 4,151,503 $ (2,692) $ 4,148,811
Net Loss (115,635) (1,168) (116,803)
----------- ---------- -----------
Balance at
September 30, 1996 $ 4,035,868 $ (3,860) $ 4,032,008
=========== ========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 AND 1995:
General
Limited Partners' Total
Partners' Equity Partners'
Equity (Deficit) Equity
SERIES 11 ----------- ----------- -----------
Balance at
March 31, 1995 $ 4,800,616 $ 1,564 $ 4,802,180
Distributions (46,690) 0 (46,690)
Net Loss (2,126) (21) (2,147)
----------- ---------- -----------
Balance at
September 30, 1995 $ 4,751,800 $ 1,543 $ 4,753,343
=========== ========== ===========
Balance at
March 31, 1996 $ 4,646,546 $ 479 $ 4,647,025
Net Income (Loss) 37,567 379 37,946
----------- ---------- -----------
Balance at
September 30, 1996 $ 4,684,113 $ 858 $ 4,684,971
=========== ========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
FOR THE SIX MONTHS ENDED September 30, 1996 AND 1995:
General
Limited Partners' Total
Partners' Equity Partners'
Equity (Deficit) Equity
TOTAL SERIES 7-11 ----------- ----------- -----------
Balance at
March 31, 1995 $28,910,416 $ (35,631) $28,874,785
Distributions (46,690) 0 (46,690)
Net Loss (1,113,855) (11,251) (1,125,106)
----------- ---------- -----------
Balance at
September 30, 1995 $27,749,871 $ (46,882) $27,702,989
=========== ========== ===========
Balance at
March 31, 1996 $25,875,502 $ (65,815) $25,809,687
Net Loss (1,256,114) (12,688) (1,268,802)
----------- ---------- -----------
Balance at
September 30, 1996 $24,619,388 $ (78,503) $24,540,885
=========== ========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED September 30, 1996 AND 1995:
1996 1995
SERIES 7 ----------- ---------
Cash Flows from Operating Activities:
Net Income (Loss) $ (474,180) $ (551,669)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by (Used in)
Operating Activities:
Amortization 10,946 11,026
Accreted Interest Income
on Investments in Securities (16,048) (15,916)
Equity in (Income)/Losses of
Project Partnerships 427,938 516,035
Interest Income from
Changes in Operating Assets and Liabilities:
Increase in Payable to
General Partners 1,556 7,100
----------- -----------
Net Cash Provided by (Used in)
Operating Activities (49,788) (33,424)
----------- -----------
Cash Flows from Investing Activities:
Investments in Project Partnerships (3,333) (421,182)
(Increase) Decrease in Receivable
from Project Partnerships 0 0
Acquisition Fees and Expenses (272) (2,142)
Distributions Received from
Project Partnerships 17,881 15,104
Increase (Decrease) in Payable -
General Partners - Acquisition Fees 0 0
Project Partnerships 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 14,276 (408,220)
----------- -----------
Cash Flows from Financing Activities:
Distributions 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 0 0
----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents (35,512) (441,644)
Cash and Cash Equivalents at
Beginning of Year 259,782 656,686
----------- -----------
Cash and Cash Equivalents at
End of Year $ 224,270 $ 215,042
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED September 30, 1996 AND 1995:
1996 1995
SERIES 8 ----------- ---------
Cash Flows from Operating Activities:
Net Income (Loss) $ (463,149) $ (457,996)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by (Used in)
Operating Activities:
Amortization 6,060 6,337
Accreted Interest Income
on Investments in Securities (14,436) (14,351)
Equity in (Income)/Losses of
Project Partnerships 419,946 413,351
Interest Income from
Changes in Operating Assets and Liabilities:
Increase in Payable to
General Partners 16,215 21,943
----------- -----------
Net Cash Provided by (Used in)
Operating Activities (35,364) (30,716)
----------- -----------
Cash Flows from Investing Activities:
Investments in Project Partnerships 453 20,897
(Increase) Decrease in Receivable
from Project Partnerships 75,574 141,139
Acquisition Fees and Expenses 0 0
Distributions Received from
Project Partnerships 15,689 9,891
Increase (Decrease) in Payable -
General Partners - Acquisition Fees 0 0
Project Partnerships 0 (241,400)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 91,716 (69,473)
----------- -----------
Cash Flows from Financing Activities:
Distributions 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 0 0
----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents 56,352 (100,189)
Cash and Cash Equivalents at
Beginning of Year 295,021 343,908
----------- -----------
Cash and Cash Equivalents at
End of Year $ 351,373 $ 243,719
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED September 30, 1996 AND 1995:
1996 1995
SERIES 9 ----------- -----------
Cash Flows from Operating Activities:
Net Income (Loss) $ (252,616) $ (77,286)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by (Used in)
Operating Activities:
Amortization 3,558 3,073
Accreted Interest Income
on Investments in Securities (8,891) (8,907)
Equity in (Income)/Losses of
Project Partnerships 225,344 55,941
Interest Income from
Changes in Operating Assets and Liabilities:
Increase in Payable to
General Partners 15,213 14,865
----------- -----------
Net Cash Provided by (Used in)
Operating Activities (17,392) (12,314)
----------- -----------
Cash Flows from Investing Activities:
Investments in Project Partnerships 0 21,012
(Increase) Decrease in Receivable
from Project Partnerships 0 14,382
Acquisition Fees and Expenses 0 (5,124)
Distributions Received from
Project Partnerships 6,161 3,653
Increase (Decrease) in Payable -
General Partners - Acquisition Fees 0 5,124
Project Partnerships 0 (257,128)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 6,161 (218,081)
----------- -----------
Cash Flows from Financing Activities:
Distributions 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 0 0
----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents (11,231) (230,395)
Cash and Cash Equivalents at
Beginning of Year 112,252 386,116
----------- -----------
Cash and Cash Equivalents at
End of Year $ 101,021 $ 155,721
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED September 30, 1996 AND 1995:
1996 1995
SERIES 10 ----------- ---------
Cash Flows from Operating Activities:
Net Income (Loss) $ (116,803) $ (36,008)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by (Used in)
Operating Activities:
Amortization 2,936 2,848
Accreted Interest Income
on Investments in Securities (7,896) (7,828)
Equity in (Income)/Losses of
Project Partnerships 104,567 25,769
Interest Income from
Changes in Operating Assets and Liabilities:
Increase in Payable to
General Partners 3,026 (5,266)
----------- -----------
Net Cash Provided by (Used in)
Operating Activities (14,170) (20,485)
----------- -----------
Cash Flows from Investing Activities:
Investments in Project Partnerships 1 (8,198)
(Increase) Decrease in Receivable
from Project Partnerships 13,059 (18,598)
Acquisition Fees and Expenses 0 (96)
Distributions Received from
Project Partnerships 3,070 1,073
Increase (Decrease) in Payable -
General Partners - Acquisition Fees 0 0
Project Partnerships (1) (61,812)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 16,129 (87,631)
----------- -----------
Cash Flows from Financing Activities:
Distributions 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 0 0
----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents 1,959 (108,116)
Cash and Cash Equivalents at
Beginning of Year 162,576 318,131
----------- -----------
Cash and Cash Equivalents at
End of Year $ 164,535 $ 210,015
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED September 30, 1996 AND 1995:
1996 1995
SERIES 11 ----------- ---------
Cash Flows from Operating Activities:
Net Income (Loss) $ 37,946 $ (2,147)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by (Used in)
Operating Activities:
Amortization 3,525 1,852
Accreted Interest Income
on Investments in Securities (9,033) (8,911)
Equity in (Income)/Losses of
Project Partnerships (43,571) 29,488
Interest Income from
Changes in Operating Assets and Liabilities:
Increase in Payable to
General Partners (12,711) (49,988)
----------- -----------
Net Cash Provided by (Used in)
Operating Activities (23,844) (29,706)
----------- -----------
Cash Flows from Investing Activities:
Investments in Project Partnerships 33,464 (614,224)
(Increase) Decrease in Receivable
from Project Partnerships 8,250 0
Acquisition Fees and Expenses (178) (105,529)
Distributions Received from
Project Partnerships 1,500 0
Increase (Decrease) in Payable -
General Partners - Acquisition Fees 0 0
Project Partnerships (279,887) (19,486)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities (236,851) (739,239)
----------- -----------
Cash Flows from Financing Activities:
Distributions 0 (46,690)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 0 (46,690)
----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents (260,695) (815,635)
Cash and Cash Equivalents at
Beginning of Year 365,027 1,598,884
----------- -----------
Cash and Cash Equivalents at
End of Year $ 104,332 $ 783,249
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE SIX MONTHS ENDED September 30, 1996 AND 1995:
1996 1995
TOTAL SERIES 7 - 11 ----------- ---------
Cash Flows from Operating Activities:
Net Income (Loss) $(1,268,802) $(1,125,106)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by (Used in)
Operating Activities:
Amortization 27,025 25,136
Accreted Interest Income
on Investments in Securities (56,304) (55,913)
Equity in (Income)/Losses of
Project Partnerships 1,134,224 1,040,584
Interest Income from
Changes in Operating Assets and Liabilities:
Increase in Payable to
General Partners 23,299 (11,346)
------------ ------------
Net Cash Provided by (Used in)
Operating Activities (140,558) (126,645)
------------ ------------
Cash Flows from Investing Activities:
Investments in Project Partnerships 30,585 (1,001,695)
(Increase) Decrease in Receivable
from Project Partnerships 96,883 136,923
Acquisition Fees and Expenses (450) (112,891)
Distributions Received from
Project Partnerships 44,301 29,721
Increase (Decrease) in Payable -
General Partners - Acquisition Fees 0 5,124
Project Partnerships (279,888) (579,826)
------------ ------------
Net Cash Provided by (Used in)
Investing Activities (108,569) (1,522,644)
------------ ------------
Cash Flows from Financing Activities:
Distributions 0 (46,690)
------------ ------------
Net Cash Provided by (Used in)
Investing Activities 0 (46,690)
------------ ------------
Increase (Decrease) in Cash and
Cash Equivalents (249,127) (1,695,979)
Cash and Cash Equivalents at
Beginning of Year 1,194,658 3,303,725
------------ ------------
Cash and Cash Equivalents at
End of Year $ 945,531 $ 1,607,746
============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
September 30, 1996
NOTE 1 - ORGANIZATION:
Gateway Tax Credit Fund III Ltd. ("Gateway"), a Florida Limited
Partnership, was formed October 17, 1991 under the laws of Florida.
Gateway offered its limited partnership interests in Series. The
first Series for Gateway is Series 7. Operations commenced on July
16, 1992 for Series 7, January 4, 1993 for Series 8, September 30,
1993 for Series 9, January 21, 1994 for Series 10 and April 29,
1994 for Series 11. Each Series invests, as a limited partner, in
other limited partnerships ("Project Partnerships"), each of which
owns and operates apartment complexes eligible for Low-Income
Housing Tax Credits ("Tax Credits"), provided for in Section 42 of
the Internal Revenue Code of 1986. Gateway will terminate on
December 31, 2040 or sooner, in accordance with the terms of the
Limited Partnership Agreement. Gateway received capital
contributions of $1,000 from the General Partners and $36,799,000
from the investor Limited Partners.
Raymond James Partners, Inc. and RJ Credit Partners, Inc.,
wholly-owned subsidiaries of Raymond James Financial, Inc., are the
General Partner and Managing General Partner, respectively. The
Managing General Partner manages and controls the business of
Gateway.
Gateway received capital contributions of $10,395,000,
$9,980,000, $6,254,000, $5,043,000 and $5,127,000 from the investor
Limited Partners in Series 7, 8, 9, 10 and 11, respectively. Each
Series is treated as though it were a separate partnership,
investing in a separate and distinct pool of Project Partnerships.
Income or loss and all tax items from the Project Partnerships
acquired by each Series are specifically allocated among the
limited partners of such Series.
Operating profits and losses, cash distributions from operations
and Tax Credits from each Series are allocated 99% to the Limited
Partners in that Series and 1% to the General Partners. Profit or
loss and cash distributions from sales of property by each Series
are allocated as formulated in the Limited Partnership Agreement.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
Gateway utilizes an accrual basis of accounting whereby revenues
are recognized as earned and expenses are recognized as obligations
are incurred.
Gateway accounts for its investments as the limited partner in
Project Partnerships ("Investments in Project Partnerships") using
the equity method of accounting and reports the equity in losses of
the Project Partnerships on a 3-month lag in the Statement of
Operations. Under the equity method, the Investments in Project
Partnerships initially include:
1) Gateway's capital contribution,
2) Acquisition fees paid to the General Partner for services
rendered in selecting properties for acquisition, and
3) Acquisition expenses including legal fees, travel and
other miscellaneous costs relating to acquiring properties.
Quarterly the Investments in Project Partnerships are increased or
decreased as follows:
1) Increased for equity in income or decreased for equity in
losses of the Project Partnerships,
2) Decreased for cash distributions received from the Project
Partnerships,
3) Decreased for the amortization of the acquisition fees and
expenses,
4) In certain Project Partnerships, where Gateway's
investment was greater than Gateway's pro-rata share of the
book value of the underlying assets, decreased for the
amortization of the difference; and
5) In certain Project Partnerships, where Gateway's investment
was less than Gateway's pro-rata share of the book value of the
underlying assets, increased for the accretion of the
difference.
Amortization and accretion is calculated on a straight line basis
over 35 years, as this is the average estimated useful life of the
underlying assets. The net amortization and accretion is shown as
amortization expense on the Statements of Operations.
Pursuant to the limited partnership agreements for the Project
Partnerships, cash losses generated by the Project Partnerships are
allocated to the general partners of those partnerships. In
subsequent years, cash profits, if any, are first allocated to the
general partners to the extent of the allocation of prior years'
cash losses.
Since Gateway invests as a limited partner, and therefore is not
obligated to fund losses or make additional capital contributions,
it does not recognize losses from individual Project Partnerships
to the extent that these losses would reduce the investment in
those Project Partnerships below zero. The suspended losses will
be used to offset future income from the individual Project
Partnerships.
<PAGE>
Cash and Cash Equivalents
It is Gateway's policy to include short-term investments with
an original maturity of three months or less in Cash and Cash
Equivalents. Short-term investments are comprised of money market
mutual funds.
Concentrations of Credit Risk
Financial instruments which potentially subject Gateway to
concentrations of credit risk consist of cash investments in a
money market mutual fund that is a wholly-owned subsidiary of
Raymond James Financial, Inc.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with
generally accepted accounting principles requires the use of
estimates that affect certain reported amounts and disclosures.
These estimates are based on management's knowledge and experience.
Accordingly, actual results could differ from these estimates.
Investment in Securities
Effective April 1, 1994, Gateway adopted Statement of Financial
Accounting Standards No. 115, Accounting for Certain Investments in
Debt and Equity Securities ("FAS 115"). Under FAS 115, Gateway is
required to categorize its debt securities as held-to-maturity,
available-for-sale or trading securities, dependent upon Gateway's
intent in holding the securities. Gateway's intent is to hold all
of its debt securities (U. S. Treasury Security Strips) until
maturity and to use these reserves to fund Gateway's ongoing
operations. Interest income is recognized ratably on the U.S.
Treasury Strips using the effective yield to maturity.
Receivable from Project Partnerships
Receivable from Project Partnerships represents amounts due from
the Project Partnerships due to a change in the amount Gateway
agreed to pay the Project Partnerships and is secured with cash in
restricted escrow accounts.
Offering and Commission Costs
Offering and commission costs are charged against Limited
Partners' Equity upon admission of Limited Partners.
Income Taxes
No provision for income taxes has been made in these financial
statements, as income taxes are a liability of the partners rather
than of Gateway.
Fair Value of Financial Instruments
The fair value of investment securities is discussed in Note 3.
The fair value of current assets and current liabilities is assumed
to be equal to their reported carrying amounts due to their short
term nature. It is not practicable to estimate the fair value of
the long term payable to the general partner because it is
attributable to a related party transaction for which there would
be no fair market equivalent.
Basis of Preparation
The unaudited financial statements presented herein have been
prepared in accordance with the instructions to Form 10-Q and do
not include all of the information and note disclosures required by
generally accepted accounting principles. These statements should
be read in conjunction with the financial statements and notes
thereto included with the Partnership's Form 10-K for the year
ended March 31, 1996. In the opinion of management these financial
statements include adjustments, consisting only of normal recurring
adjustments, necessary to fairly summarize the Partnership's
financial position and results of operations. The results of
operations for the periods may not be indicative of the results to
be expected for the year.
NOTE 3 - INVESTMENT IN SECURITIES:
The September 30, 1996 Balance Sheet includes Investment in
Securities consisting of U.S. Treasury Security Strips which
represents their cost, plus accreted interest income of $114,349
for Series 7, $92,364 for Series 8, $47,031 for Series 9, $37,734
for Series 10 and $39,485 for Series 11.
Estimated Cost Plus Gross Unrealized
Market Accreted Gains and
Value Accreted Interest (Losses)
----------- ----------------- ---------------
Series 7 $ 503,885 $494,567 $ 9,318
Series 8 464,485 465,429 (944)
Series 9 302,594 315,455 (12,861)
Series 10 248,034 247,619 415
Series 11 268,220 258,206 10,014
<PAGE>
As of September 30, 1996 the cost and accreted interest of debt
securities by contractual maturities is as follows:
Series 7 Series 8 Series 9
---------- ---------- ----------
Due within 1 year $ 43,272 $ 38,354 $ 26,585
After 1 year
through 5 years 173,713 159,475 103,102
After 5 years
through 10 years 202,904 193,361 119,874
After 10 years 74,678 74,239 65,894
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 494,567 $ 465,429 $ 315,455
========== ========== ==========
Series 10 Series 11 Total
---------- ---------- ----------
Due within 1 year $ 19,646 $ 19,595 $ 147,452
After 1 year
through 5 years 79,975 77,494 593,759
After 5 years
through 10 years 86,357 93,889 696,385
After 10 years 61,641 67,228 343,680
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 247,619 $ 258,206 $1,781,276
========== ========== ==========
NOTE 4 - RELATED PARTY TRANSACTIONS:
The Payable to General Partners primarily represents the asset
management fees owed to the General Partners at the end of the
period. It is unsecured, due on demand and, in accordance with the
limited partnership agreement, non-interest bearing. Within the
next twelve months, the Managing General Partner does not intend to
demand payment on the portion of Asset Management fees payable
classified as long-term on the balance sheet.
The Payable to Project Partnerships represents unpaid capital
contributions to the Project Partnerships and will be paid after
certain performance criteria are met. Such contributions are in
turn payable to the general partners of the Project Partnerships.
For the periods ended September 30, 1996 and 1995 the General
Partners and affiliates are entitled to compensation and
reimbursement for costs and expenses incurred by Gateway as
follows:
Acquisition Fees - Acquisition fees are paid for services
rendered by the Managing General Partner in selecting properties
for acquisition and providing other services in connection with the
acquisition of interests in Project Partnerships. The acquisition
fees paid or payable to the General Partners will not exceed the
amount that is equal to 8% of the gross proceeds. For Series 11
the fees will not exceed an amount that is equal to 5% of the gross
proceeds. The fees paid are included in Investments in Project
Partnerships on the Balance Sheet.
September 30, September 30,
1996 1995
----------- -----------
Series 7 $ 0 $ 0
Series 8 0 0
Series 9 0 5,124
Series 10 0 1,496
Series 11 0 86,984
---------- ----------
Total $ 0 $ 93,604
========== ==========
Acquisition Expenses - Affiliates of the General Partners are
reimbursed for acquisition expenses incurred on behalf of Gateway.
These expenses are included in Investments in Project Partnerships
on the Balance Sheet.
September 30, September 30,
1996 1995
---------- ----------
Series 7 $ 272 $ 2,142
Series 8 0 0
Series 9 0 0
Series 10 0 (1,400)
Series 11 178 18,545
---------- ---------
Total $ 450 $ 19,287
========== ==========
Asset Management Fee - The Managing General Partner is entitled
to receive an annual asset management fee equal to the greater of
(i) $2,000 for each limited partnership in which Gateway invests,
or (ii) 0.275% of Gateway's gross proceeds from the sale of limited
partnership interests. In either event (i) or (ii), the maximum
amount may not exceed 0.2% of the aggregate cost (Gateway's capital
contribution plus Gateway's share of the Properties' mortgage) of
Gateway's interest in properties owned by the Project Partnerships.
The asset management fee will be paid only after all other expenses
of Gateway have been paid. These fees are included in the
Statement of Operations.
<PAGE>
September 30, September 30,
1996 1995
---------- ----------
Series 7 $ 39,000 $ 38,500
Series 8 43,000 43,000
Series 9 24,000 24,000
Series 10 15,000 15,000
Series 11 12,000 9,655
---------- ----------
Total $ 133,000 $ 130,155
========== ==========
General and Administrative Expenses - The Managing General
Partner is reimbursed for general and administrative expenses of
Gateway on an accountable basis. This expense is included in the
Statement of Operations.
September 30, September 30,
1996 1995
---------- ----------
Series 7 $ 5,920 $ 5,560
Series 8 6,528 6,305
Series 9 3,644 3,519
Series 10 2,276 2,198
Series 11 1,820 1,699
---------- ----------
Total $ 20,188 $ 19,281
========== ==========
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of September 30, 1996, the Partnership had acquired an
interest in 39 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
September 30, MARCH 31,
1996 1996
SERIES 7 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 7,732,089 $ 7,728,757
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 1,028 644
Cumulative equity in losses of
Project Partnerships (3,364,689) (2,936,751)
Cumulative distributions received
from Project Partnerships (57,907) (40,026)
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 793,335 793,063
Accumulated amortization of
acquisition fees and expenses (92,035) (80,705)
------------ ------------
Investments in
Project Partnerships $ 5,011,821 $ 5,464,982
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization of the difference between the book value of the
underlying assets of the Project Partnerships over or under the
purchase price. At September 30, 1996 these excess costs were
$25,166 and March 31, 1996 these excess costs were $28,498.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1996, the Partnership had acquired an
interest in 43 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1996 1996
SERIES 8 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 7,586,105 $ 7,586,558
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 1,965 1,607
Cumulative equity in losses of
Project Partnerships (2,828,747) (2,408,801)
Cumulative distributions received
from Project Partnerships (43,625) (27,936)
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 549,773 549,773
Accumulated amortization of
acquisition fees and expenses (49,460) (43,041)
------------ ------------
Investments in
Project Partnerships $ 5,216,011 $ 5,658,160
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization of the difference between the book value of the
underlying assets of the Project Partnerships over or under the
purchase price. At September 30, 1996 these excess costs were
$25,283 and March 31, 1996 these excess costs were $24,830.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1996, the Partnership had acquired an
interest in 24 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1996 1996
SERIES 9 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 4,932,192 $ 4,932,192
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 799 871
Cumulative equity in losses of
Project Partnerships (970,767) (745,423)
Cumulative distributions received
from Project Partnerships (24,570) (18,409)
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 244,087 244,087
Accumulated amortization of
acquisition fees and expenses (19,503) (16,017)
------------ ------------
Investments in
Project Partnerships $ 4,162,238 $ 4,397,301
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization of the difference between the book value of the
underlying assets of the Project Partnerships over or under the
purchase price. At September 30, 1996 and March 31, 1996 these
excess costs were ($5,076).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1996, the Partnership had acquired an
interest in 15 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1996 1996
SERIES 10 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 3,914,672 $ 3,914,673
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) (406) (282)
Cumulative equity in losses of
Project Partnerships (394,495) (289,928)
Cumulative distributions received
from Project Partnerships (24,082) (21,012)
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 196,738 196,738
Accumulated amortization of
acquisition fees and expenses (14,960) (12,148)
------------ ------------
Investments in
Project Partnerships $ 3,677,467 $ 3,788,041
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization of the difference between the book value of the
underlying assets of the Project Partnerships over or under the
purchase price. At September 30, 1996 and March 31, 1996 these
excess costs were ($9,822).
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1996, the Partnership had acquired an
interest in 12 Project Partnerships for the Series which own and
operate government assisted multi-family housing complexes. The
Partnership, as the Investor Limited Partner pursuant to the
Project Partnership Agreements has generally acquired an ownership
interest of 99% in these Project Partnerships.
The following is a summary of Investments in Project Partnerships
as of:
SEPTEMBER 30, MARCH 31,
1996 1996
SERIES 11 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 4,170,003 $ 4,203,467
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets (1) 1,379 758
Cumulative equity in losses of
Project Partnerships (100,623) (144,194)
Cumulative distributions received
from Project Partnerships (1,500) 0
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 290,335 290,157
Accumulated amortization of
acquisition fees and expenses (14,018) (9,872)
------------ ------------
Investments in
Project Partnerships $ 4,345,576 $ 4,340,316
============ ============
(1) Includes amounts representing accumulated accretion or
(amortization of the difference between the book value of the
underlying assets of the Project Partnerships over or under the
purchase price. At September 30, 1996 these excess costs were
$57,589 and March 31, 1996 these excess costs were $29,433.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project
Partnerships:
September 30, MARCH 31,
1996 1996
TOTAL SERIES 7 - 11 ---------- ----------
Capital Contributions to Project
Partnerships (purchase price paid
for limited partner interests in
Project Partnerships) $ 28,335,061 $ 28,365,647
Accumulated amortization of excess
of purchase price of Project
Partnerships over book value
of underlying assets 4,765 3,598
Cumulative equity in losses of
Project Partnerships (7,659,321) (6,525,097)
Cumulative distributions received
from Project Partnerships (151,684) (107,383)
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 2,074,268 2,073,818
Accumulated amortization of
acquisition fees and expenses (189,976) (161,783)
------------- -------------
Investments in
Project Partnerships $ 22,413,113 $ 23,648,800
============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:
1996 1995
SERIES 7 ----------- ----------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,339,353 $ 1,950,554
Investment properties, net 40,149,882 41,600,587
Other assets 113,530 63,604
------------- -------------
Total assets $ 42,602,765 $ 43,614,745
============= =============
Liabilities and Partners' Equity
Current liabilities $ 1,076,455 $ 1,340,526
Long-term debt 37,183,790 37,116,251
------------- -------------
Total liabilities 38,260,245 38,456,777
Partners' Equity
Limited Partner 4,288,875 5,180,762
General Partners 53,645 (22,794)
------------- -------------
4,342,520 5,157,968
Total liabilities and
partners' equity $ 42,602,765 $ 43,614,745
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 2,097,627 $ 2,050,010
Expenses:
Operating expenses 1,130,538 1,049,666
Interest expense 601,339 692,015
Depreciation and amortization 798,011 829,576
------------- -------------
Total expenses 2,529,888 2,571,257
Net loss $ (432,261) $ (521,247)
============= =============
Other partners' share
of net loss $ (4,323) $ (5,212)
Partnership's share of net loss $ (427,938) $ (516,035)
------------- -------------
Equity in Loss of
Project Partnerships $ (432,261) $ (521,247)
============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:
1996 1995
SERIES 8 ----------- ----------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,940,636 $ 2,194,959
Investment properties, net 43,223,971 42,239,537
Other assets 100,037 76,610
------------- -------------
Total assets $ 45,264,644 $ 44,511,106
============= =============
Liabilities and Partners' Equity
Current liabilities $ 1,503,086 $ 1,698,493
Long-term debt 39,051,248 36,790,934
------------- -------------
Total liabilities 40,554,334 38,489,427
Partners' Equity
Limited Partner 4,746,609 5,974,419
General Partners (36,299) 47,260
------------- -------------
4,710,310 6,021,679
Total liabilities and
partners' equity $ 45,264,644 $ 44,511,106
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 1,928,743 $ 1,866,311
Expenses:
Operating expenses 1,167,315 966,290
Interest expense 419,065 667,665
Depreciation and amortization 766,551 649,882
------------- -------------
Total expenses 2,352,931 2,283,837
Net loss $ (424,188) $ (417,526)
============= =============
Other partners' share
of net loss $ (4,242) $ (4,175)
Partnership's share of net loss $ (419,946) $ (413,351)
------------- -------------
Equity in Loss of
Project Partnerships $ (424,188) $ (417,526)
============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:
1996 1995
SERIES 9 ----------- ----------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,327,812 $ 2,021,377
Investment properties, net 23,963,097 23,872,706
Other assets 11,666 34,505
------------- -------------
Total assets $ 25,302,575 $ 25,928,588
============= =============
Liabilities and Partners' Equity
Current liabilities $ 661,878 $ 1,260,757
Long-term debt 20,698,907 20,016,935
------------- -------------
Total liabilities 21,360,785 21,277,692
Partners' Equity
Limited Partner 3,931,890 4,603,714
General Partners 9,900 47,182
------------- ------------
3,941,790 4,650,896
Total liabilities and
partners' equity $ 25,302,575 $ 25,928,588
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 1,072,472 $ 937,017
Expenses:
Operating expenses 560,402 444,256
Interest expense 299,612 322,857
Depreciation and amortization 440,078 226,410
------------- -------------
Total expenses 1,300,092 993,523
Net loss $ (227,620) $ (56,506)
============= =============
Other partners' share
of net loss $ (2,276) $ (565)
Partnership's share of net loss $ (225,344) $ (55,941)
------------- -------------
Equity in Loss of
Project Partnerships $ (227,620) $ (56,506)
============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:
1996 1995
SERIES 10 ----------- ----------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,083,948 $ 1,313,111
Investment properties, net 16,438,731 16,717,596
Other assets 25,714 20,256
------------- -------------
Total assets $ 17,548,393 $ 18,050,963
============= =============
Liabilities and Partners' Equity
Current liabilities $ 409,405 $ 774,571
Long-term debt 13,595,950 13,462,954
------------- -------------
Total liabilities 14,005,355 14,237,525
Partners' Equity
Limited Partner 3,503,506 3,757,245
General Partners 39,532 56,193
------------- -------------
3,543,038 3,813,438
Total liabilities and
partners' equity $ 17,548,393 $ 18,050,963
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 686,541 $ 624,964
Expenses:
Operating expenses 404,364 338,183
Interest expense 135,606 168,890
Depreciation and amortization 252,194 143,920
------------- -------------
Total expenses 792,164 650,993
Net loss $ (105,623) $ (26,029)
============= =============
Other partners' share
of net loss $ (1,056) $ (260)
Partnership's share of net loss $ (104,567) $ (25,769)
------------- -------------
Equity in Loss of
Project Partnerships $ (105,623) $ (26,029)
============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Series'
Project Partnerships as of June 30 of each year:
1996 1995
SERIES 11 ----------- ----------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,737,682 $ 2,902,441
Investment properties, net 14,619,930 11,985,313
Other assets 132,098 8,327
------------- -------------
Total assets $ 16,489,710 $ 14,896,081
============= =============
Liabilities and Partners' Equity
Current liabilities $ 1,179,857 $ 1,829,751
Long-term debt 11,050,478 8,730,636
------------- -------------
Total liabilities 12,230,335 10,560 387
Partners' Equity
Limited Partner 4,062,358 4,111,139
General Partners 197,017 224,555
------------- -------------
4,259,375 4,335,694
Total liabilities and
partners' equity $ 16,489,710 $ 14,896,081
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 698,965 $ 227,191
Expenses:
Operating expenses 334,443 166,832
Interest expense 202,677 66,164
Depreciation and amortization 117,834 23,981
------------- -------------
Total expenses 654,954 256,977
Net loss $ 44,011 $ (29,786)
============= =============
Other partners' share
of net loss $ 440 $ (298)
Partnership's share of net loss $ 43,571 $ (29,488)
------------- -------------
Equity in Loss of
Project Partnerships $ 44,011 $ (29,786)
============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
In accordance with the Partnership's policy of presenting the
financial information of the Project Partnerships on a three month
lag, below is the summarized financial information for the Project
Partnerships as of June 30 of each year:
1996 1995
TOTAL SERIES 7 - 11 ----------- ----------
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 8,429,431 $ 10,382,442
Investment properties, net 138,395,611 136,415,739
Other assets 383,045 203,302
------------- -------------
Total assets $147,208,087 $147,001,483
============= =============
Liabilities and Partners' Equity
Current liabilities $ 4,830,681 $ 6,904,098
Long-term debt 121,580,373 116,117,710
------------- -------------
Total liabilities 126,411,054 123,021,808
Partners' Equity
Limited Partner 20,533,238 23,627,279
General Partners 263,795 352,396
------------- -------------
20,797,033 23,979,675
Total liabilities and
partners' equity $147,208,087 $147,001,483
============= =============
SUMMARIZED STATEMENTS OF OPERATIONS:
Rental and other income $ 6,484,348 $ 5,705,493
Expenses:
Operating expenses 3,597,062 2,965,227
Interest expense 1,658,299 1,917,591
Depreciation and amortization 2,374,668 1,873,769
------------- -------------
Total expenses 7,630,029 6,756,587
Net loss $ (1,145,681) $ (1,051,094)
============= =============
Other partners' share
of net loss $ (11,457) $ (10,510)
Partnership's share of net loss $ (1,134,224) $ (1,040,584)
------------- ------------
Equity in Loss of
Project Partnerships $ (1,145,681) $ (1,051,094)
============= =============
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
September 30, 1996
Results of Operations, Liquidity and Capital Resources
The proceeds from Limited Partner investors' capital
contributions available for investment are used to acquire
interests in Project Partnerships. Project Partnership
acquisitions and the status of project operations are shown on the
following table:
As of September 30, 1995
Under Recently Fully
Construction Completed Operating Totals
Series 7 1 - 38 39
Series 8 4 1 38 43
Series 9 2 1 21 24
Series 10 1 3 11 15
Series 11 9 1 2 12
As of September 30, 1996
Under Recently Fully
Construction Completed Operating Totals
Series 7 - 1 38 39
Series 8 - - 43 43
Series 9 - 1 23 24
Series 10 - - 15 15
Series 11 1 2 9 12
The capital resources of each Series are used to pay General and
Administrative operating costs including personnel, supplies, data
processing, travel and legal and accounting associated with the
administration and monitoring of Gateway and the Project
Partnerships. The capital resources are also used to pay the Asset
Management Fee due the Managing General Partner, but only to the
extent that Gateway's remaining resources are sufficient to fund
Gateway's ongoing needs.
The sources of funds to pay the operating costs of each Series
are short-term investments and interest earned thereon, the
maturity of U.S. Treasury Security Strips ("Zero Coupon
Treasuries") which were purchased with funds set aside for this
purpose, and cash distributed to the Series from the operations of
the Project Partnerships.
Series 7 - Gateway closed this series on October 16, 1992 after
receiving $10,395,000 from 635 Limited Partner investors. Equity
in losses of Project Partnerships decreased from $516,035 for the
six months ended September 30,1995 to $427,938 for the six months
ended September 30, 1996. In general, it is common in the real
estate industry to experience losses for financial and tax
reporting purposes because of the non-cash expenses of depreciation
and amortization. As a result, management expects that this
Series, as well as the Series described below, will report its
equity in Project Partnerships as a loss for tax and financial
reporting purposes. Overall management believes the Project
Partnerships are operating as expected and are generating tax
credits which meet projections.
At September 30, 1996, the Series had $224,270 of short-term
investments (Cash and Cash Equivalents). It also had $494,567 in
Zero Coupon Treasuries. Management believes the sources of funds
are sufficient to meet current and ongoing operating costs for the
foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a
net loss of $474,180 for the six months ending September 30, 1996.
However, after adjusting for Equity in Losses of Project
Partnerships of $427,938 and the changes in operating assets and
liabilities, net cash used in operating activities was $49,788.
Cash provided by investing activities totaled $14,276 primarily
consisting of cash distributions from the Project Partnerships of
$17,881. There were no unusual events or trends to describe.
Expenses for the three and six months ended September 30, 1996
were comparable to the three and six months ended September 30,
1995. Interest income decreased for the three and six months
ended September 30, 1996 as compared to September 30, 1995 due to
lower interest rates and a decrease in the average balance of cash
available for investment. There were no unusual variations in the
operating results between these two periods.
Series 8 - Gateway closed this Series on June 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors. Equity in
losses of Project Partnerships were comparable for the three and
six months ended September 30, 1996 to the three and six months
ended September 30, 1995.
At September 30, 1996, the Series had $351,373 of short-term
investments (Cash and Cash Equivalents). It also had $465,429 in
Zero Coupon Treasuries. Management believes the sources of funds
are sufficient to meet current and ongoing operating costs for the
foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a
net loss of $463,149 for the six months ended September 30, 1996.
However, after adjusting for Equity in Losses of Project
Partnerships of $419,946 and the changes in operating assets and
liabilities, net cash used in operating activities was $35,364.
Cash provided by investing activities totaled $91,716 and was
primarily due to the reduction of a receivable from the Project
Partnerships and cash distributions from the Project Partnerships
of $15,689.
Income and expenses for the three and six months ended September
30, 1996 were comparable to the three and six months ended
September 30, 1995. There were no unusual variations in the
operating results between these two periods.
Series 9 - Gateway closed this Series on December 31, 1993 after
receiving $6,254,000 from 406 Limited Partner investors. Equity in
losses of Project Partnerships increased from $55,941 for the six
ended September 30, 1995 to $225,344 for the six months ended
September 30, 1996. This increase was due to 3 properties moving
from the construction and rent-up phases to fully operating in
1996.
At September 30, 1996, the Series had $101,021 of short-term
investments (Cash and Cash Equivalents). It also had $315,455 in
Zero Coupon Treasuries. Management believes the sources of funds
are sufficient to meet current and ongoing operating costs for the
foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a
net loss of $252,616 for the six months ended September 30, 1996.
After adjusting for Equity in Losses of Project Partnerships of
$225,344 and the changes in operating assets and liabilities, net
cash used in operating activities was $17,392. Cash provided by
investing activities totaled $6,161 received in cash distributions
from the Project Partnerships. There were no unusual events or
trends to describe.
Expenses for the three and six months ended September 30, 1996
were comparable to the three and six months ended September 30,
1995. Interest income decreased for the three and six months
ended September 30, 1996 as compared to September 30, 1995 due to
a decrease in the average balance of cash available for investment.
There were no unusual variations in the operating results between
these two periods.
Series 10 - Gateway closed this Series on January 21, 1994 after
receiving $5,043,000 from 325 Limited Partner investors. Equity in
Losses of Project Partnerships increased from $25,769 for the six
months ended September 30, 1995 to $104,567 for the six months
ended September 30, 1996 as 4 properties moved from the
construction and rent-up phases to fully operating in 1996.
At September 30, 1996, the Series had $164,535 of short-term
investments (Cash and Cash Equivalents). It also had $247,619 in
Zero Coupon Treasuries. Management believes the sources of funds
are sufficient to meet current and ongoing operating costs for the
foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had a
net loss of $116,803 for the six months ending September 30, 1996.
After adjusting for Equity in Losses of Project Partnerships of
$104,567 and the changes in operating assets and liabilities, net
cash used in operating activities was $14,170. Cash provided by
investing activities totaled $16,129 and was due to a reduction of
receivables from Project Partnerships of $13,059 and cash
distributions from Project Partnerships of $3,070. There were no
unusual events or trends to describe.
Interest income and expenses for the three and six months ended
September 30, 1996 were comparable to the three and six months
ended September 30, 1995. There were no unusual variations in the
operating results between these two periods.
Series 11 - Gateway closed this Series on April 29, 1994 after
receiving $5,127,000 from 330 Limited investors. Equity in Losses
of Project Partnerships increased from $29,488 of losses for the
six months ended September 30, 1995 to $43,571 of income for the
six months ended September 30, 1996 as seven properties moved from
the construction and rent-up phases to fully operating in 1996.
At September 30, 1996, the Series had $104,332 of short-term
investments (Cash and Cash Equivalents). It also had $258,206 in
Zero Coupon Treasuries. Management believes the sources of funds
are sufficient to meet current and ongoing operating costs for the
foreseeable future, and to pay part of the Asset Management Fee.
As disclosed on the statement of cash flows, the Series had net
income of $37,946 for the six months ending September 30, 1996.
After adjusting for Equity in Income of Project Partnerships of
$43,571 and the changes in operating assets and liabilities, net
cash used in operating activities was $23,844. Cash used in
investing activities totaled $236,851 and was used for the purchase
of Investments in Project Partnerships. There were no unusual
events or trends to describe.
Expenses for the three months ended September 30, 1996 were
comparable to the three months ended September 30, 1995. Expenses
for the six months ended September 30, 1996 as compared to the six
months ended September 30, 1995 increased mainly due to an increase
in the Asset Management Fee as the number of properties increased
year-to-date. Interest income decreased for the three and six
months ended September 30, 1996 as compared to September 30, 1995
due to a decrease in the average balance of cash available for
investment. <PAGE>
PART II. OTHER INFORMATION
ITEM 6 - EXHIBIT AND REPORTS ON FORM 8-K
a. Exhibits - NONE
b. Reports filed on Form 8-K - NONE
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed by the following persons on
behalf of the Registrant and in the capacities and on the dates
indicated.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
By: RJ Credit Partners, Inc.
Managing General Partner
Date: November 11, 1996 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: November 11, 1996 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<CASH> 945,531
<SECURITIES> 1,781,276
<RECEIVABLES> 8,998
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,101,981
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 25,148,918
<CURRENT-LIABILITIES> 178,060
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 24,540,885
<TOTAL-LIABILITY-AND-EQUITY> 25,148,918
<SALES> 0
<TOTAL-REVENUES> 88,194
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 222,772
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,268,802)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,268,802)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,268,802)
<EPS-PRIMARY> (34.13)<F1>
<EPS-DILUTED> (34.13)<F1>
<FN>
<F1>EPS IS NET INCOME (LOSS) PER $1,000 LIMITED PARTNERSHIP UNIT.
</FN>
</TABLE>
