|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: PALOMAR MEDICAL TECHNOLOGIES INC, 10-Q, 1998-11-13 |
Next: CTA INCORPORATED, 10-Q, 1998-11-13 |
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, 1998
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, 1998
Units of Limited Partnership
Interest: $1,000 per unit 36,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1998 Form 10-K, filed with the
Securities and Exchange Commission on July 13, 1998
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
SERIES 7 SEPTEMBER 30, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 244,472 $ 286,106
Investments in Securities 48,382 47,675
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 292,854 $ 333,781
Investments in Securities 419,098 404,220
Investments in Project Partnerships, Net 2,997,230 3,517,852
----------- -----------
Total Assets $ 3,709,182 $ 4,255,853
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 53,203 $ 55,760
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 53,203 55,760
----------- -----------
Long-Term Liabilities:
Payable to General Partners 227,556 226,886
----------- -----------
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 30,1998 and March 31,1998) 3,485,417 4,024,753
General Partners (56,994) (51,546)
----------- -----------
Total Partners' Equity $ 3,428,423 $ 3,973,207
----------- -----------
Total Liabilities and Partners' Equity $ 3,709,182 $ 4,255,853
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 8 SEPTEMBER 30, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 362,703 $ 410,727
Investments in Securities 43,573 42,967
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 406,276 $ 453,694
Investments in Securities 398,271 384,906
Investments in Project Partnerships, Net 3,063,013 3,608,229
----------- -----------
Total Assets $ 3,867,560 $ 4,446,829
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 44,094 $ 46,515
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 44,094 46,515
----------- -----------
Long-Term Liabilities:
Payable to General Partners 273,396 269,107
----------- -----------
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 30,1998 and March 31,1998) 3,602,194 4,177,520
General Partners (52,124) (46,313)
----------- -----------
Total Partners' Equity $ 3,550,070 $ 4,131,207
----------- -----------
Total Liabilities and Partners' Equity $ 3,867,560 $ 4,446,829
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 9 SEPTEMBER 30, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 160,398 $ 180,104
Investments in Securities 28,159 27,803
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 188,557 $ 207,907
Investments in Securities 267,288 259,181
Investments in Project Partnerships, Net 3,094,443 3,363,377
----------- -----------
Total Assets $ 3,550,288 $ 3,830,465
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 25,099 $ 26,911
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 25,099 26,911
----------- -----------
Long-Term Liabilities:
Payable to General Partners 159,462 151,733
----------- -----------
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 30,1998 and March 31,1998) 3,386,907 3,670,140
General Partners (21,180) (18,319)
----------- -----------
Total Partners' Equity $ 3,365,727 $ 3,651,821
----------- -----------
Total Liabilities and Partners' Equity $ 3,550,288 $ 3,830,465
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 10 SEPTEMBER 30, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 177,017 $ 202,435
Investments in Securities 23,207 22,865
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 200,224 $ 225,300
Investments in Securities 213,958 206,525
Investments in Project Partnerships, Net 3,223,060 3,352,669
----------- -----------
Total Assets $ 3,637,242 $ 3,784,494
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 28,424 $ 30,279
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 28,424 30,279
----------- -----------
Long-Term Liabilities:
Payable to General Partners 35,178 45,106
----------- -----------
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 30,1998 and March 31,1998) 3,582,084 3,716,198
General Partners (8,444) (7,089)
----------- -----------
Total Partners' Equity $ 3,573,640 $ 3,709,109
----------- -----------
Total Liabilities and Partners' Equity $ 3,637,242 $ 3,784,494
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 11 SEPTEMBER 30, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 183,678 $ 208,198
Investments in Securities 22,155 21,794
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 205,833 $ 229,992
Investments in Securities 231,297 222,768
Investments in Project Partnerships, Net 3,813,315 3,861,731
----------- -----------
Total Assets $ 4,250,445 $ 4,314,491
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 28,078 $ 29,179
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 28,078 29,179
----------- -----------
Long-Term Liabilities:
Payable to General Partners 7,355 17,499
----------- -----------
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 30,1998 and March 31,1998) 4,218,853 4,271,126
General Partners (3,841) (3,313)
----------- -----------
Total Partners' Equity $ 4,215,012 $ 4,267,813
----------- -----------
Total Liabilities and Partners' Equity $ 4,250,445 $ 4,314,491
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
TOTAL SERIES 7 - 11 SEPTEMBER 30, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,128,268 $ 1,287,570
Investments in Securities 165,476 163,104
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 1,293,744 $ 1,450,674
Investments in Securities 1,529,912 1,477,600
Investments in Project Partnerships, Net 16,191,061 17,703,858
----------- -----------
Total Assets $19,014,717 $20,632,132
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 178,898 $ 188,644
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 178,898 188,644
----------- -----------
Long-Term Liabilities:
Payable to General Partners 702,947 710,331
----------- -----------
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 30,1998 and March 31,1998) 18,275,455 19,859,737
General Partners (142,583) (126,580)
----------- -----------
Total Partners' Equity $18,132,872 $19,733,157
----------- -----------
Total Liabilities and Partners' Equity $19,014,717 $20,632,132
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 7 1998 1997
---- ----
Revenues:
Interest Income $ 11,391 $ 11,482
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,108 20,148
General and Administrative:
General Partner 4,734 4,154
Other 8,693 11,926
Amortization 5,551 5,743
----------- -----------
Total Expenses 41,086 41,971
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (29,695) (30,489)
Equity in Losses of Project
Partnerships (274,517) (193,446)
---------- ----------
Net Loss $ (304,212) $ (223,935)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (301,170) $ (221,696)
General Partners (3,042) (2,239)
----------- -----------
$ (304,212) $ (223,935)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (28.97) $ (21.33)
============ ============
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
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 8 1998 1997
---- ----
Revenues:
Interest Income $ 11,954 $ 11,697
----------- -----------
Expenses:
Asset Management Fee-General Partner 23,047 22,214
General and Administrative:
General Partner 5,220 4,581
Other 9,650 12,357
Amortization 3,853 3,675
----------- -----------
Total Expenses 41,770 42,827
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (29,816) (31,130)
Equity in Losses of Project
Partnerships (264,536) (324,149)
---------- ----------
Net Loss $ (294,352) $ (355,279)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (291,408) $ (351,726)
General Partners (2,944) (3,553)
----------- -----------
$ (294,352) $ (355,279)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (29.20) $ (35.24)
============ ============
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
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 9 1998 1997
---- ----
Revenues:
Interest Income $ 6,438 $ 6,419
----------- -----------
Expenses:
Asset Management Fee-General Partner 12,648 12,399
General and Administrative:
General Partner 2,913 2,557
Other 5,219 6,669
Amortization 1,743 1,779
----------- -----------
Total Expenses 22,523 23,404
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (16,085) (16,985)
Equity in Losses of Project
Partnerships (124,372) (118,377)
---------- ----------
Net Loss $ (140,457) $ (135,362)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (139,052) $ (134,008)
General Partners (1,405) (1,354)
----------- -----------
$ (140,457) $ (135,362)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (22.23) $ (21.43)
============ ============
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
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 10 1998 1997
---- ----
Revenues:
Interest Income $ 6,407 $ 6,449
----------- -----------
Expenses:
Asset Management Fee-General Partner 8,525 7,750
General and Administrative:
General Partner 1,821 1,599
Other 3,529 4,198
Amortization 1,406 1,460
----------- -----------
Total Expenses 15,281 15,007
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (8,874) (8,558)
Equity in Losses of Project
Partnerships (64,109) (72,667)
---------- ----------
Net Loss $ (72,983) $ (81,225)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (72,253) $ (80,413)
General Partners (730) (812)
----------- -----------
$ (72,983) $ (81,225)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (14.33) $ (15.95)
============ ============
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
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 11 1998 1997
---- ----
Revenues:
Interest Income $ 6,990 $ 6,689
----------- -----------
Expenses:
Asset Management Fee-General Partner 6,820 6,200
General and Administrative:
General Partner 1,456 1,279
Other 3,192 3,875
Amortization 2,074 1,797
----------- -----------
Total Expenses 13,542 13,151
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (6,552) (6,462)
Equity in Losses of Project
Partnerships 17,656 (91,316)
---------- ----------
Net Loss $ 11,104 $ (97,778)
=========== ===========
Allocation of Net Loss:
Limited Partners $ 10,993 $ (96,800)
General Partners 111 (978)
----------- -----------
$ 11,104 $ (97,778)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ 2.14 $ (18.88)
============ ============
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
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
TOTAL SERIES 7 - 11 1998 1997
---- ----
Revenues:
Interest Income $ 43,180 $ 42,736
----------- -----------
Expenses:
Asset Management Fee-General Partner 73,148 68,711
General and Administrative:
General Partner 16,144 14,170
Other 30,283 39,025
Amortization 14,627 14,454
----------- -----------
Total Expenses 134,202 136,360
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (91,022) (93,624)
Equity in Losses of Project
Partnerships (709,878) (799,955)
---------- ----------
Net Loss $ (800,900) $ (893,579)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (792,891) $ (884,643)
General Partners (8,009) (8,936)
----------- -----------
$ (800,900) $ (893,579)
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 7 1998 1997
---- ----
Revenues:
Interest Income $ 22,571 $ 22,645
----------- -----------
Expenses:
Asset Management Fee-General Partner 44,216 39,648
General and Administrative:
General Partner 8,016 7,472
Other 11,520 14,299
Amortization 11,102 10,879
----------- -----------
Total Expenses 74,854 72,298
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (52,283) (49,653)
Equity in Losses of Project
Partnerships (492,501) (435,959)
---------- ----------
Net Loss $ (544,784) $ (485,612)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (539,336) $ (480,756)
General Partners (5,448) (4,856)
----------- -----------
$ (544,784) $ (485,612)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (51.88) $ (46.25)
============ ============
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
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 8 1998 1997
---- ----
Revenues:
Interest Income $ 23,842 $ 23,621
----------- -----------
Expenses:
Asset Management Fee-General Partner 46,094 43,714
General and Administrative:
General Partner 8,838 8,240
Other 12,969 14,951
Amortization 6,345 5,989
----------- -----------
Total Expenses 74,246 72,894
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (50,404) (49,273)
Equity in Losses of Project
Partnerships (530,733) (589,692)
---------- ----------
Net Loss $ (581,137) $ (638,965)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (575,326) $ (632,575)
General Partners (5,811) (6,390)
----------- -----------
$ (581,137) $ (638,965)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (57.65) $ (63.38)
============ ============
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
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 9 1998 1997
---- ----
Revenues:
Interest Income $ 12,826 $ 12,725
----------- -----------
Expenses:
Asset Management Fee-General Partner 25,296 24,399
General and Administrative:
General Partner 4,933 4,599
Other 7,121 8,056
Amortization 3,486 3,558
----------- -----------
Total Expenses 40,836 40,612
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (28,010) (27,887)
Equity in Losses of Project
Partnerships (258,084) (214,375)
---------- ----------
Net Loss $ (286,094) $ (242,262)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (283,233) $ (239,839)
General Partners (2,861) (2,423)
----------- -----------
$ (286,094) $ (242,262)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (45.29) $ (38.35)
============ ============
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
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 10 1998 1997
---- ----
Revenues:
Interest Income $ 12,702 $ 12,776
----------- -----------
Expenses:
Asset Management Fee-General Partner 17,050 15,250
General and Administrative:
General Partner 3,083 2,875
Other 4,974 5,161
Amortization 2,812 2,920
----------- -----------
Total Expenses 27,919 26,206
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (15,217) (13,430)
Equity in Losses of Project
Partnerships (120,252) (110,446)
---------- ----------
Net Loss $ (135,469) $ (123,876)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (134,114) $ (122,637)
General Partners (1,355) (1,239)
----------- -----------
$ (135,469) $ (123,876)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (26.59) $ (24.32)
============ ============
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
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 11 1998 1997
---- ----
Revenues:
Interest Income $ 13,904 $ 13,219
----------- -----------
Expenses:
Asset Management Fee-General Partner 13,640 12,200
General and Administrative:
General Partner 2,466 2,300
Other 4,365 4,746
Amortization 4,148 3,594
----------- -----------
Total Expenses 24,619 22,840
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (10,715) (9,621)
Equity in Losses of Project
Partnerships (42,086) (137,683)
---------- ----------
Net Loss $ (52,801) $ (147,304)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (52,273) $ (145,831)
General Partners (528) (1,473)
----------- -----------
$ (52,801) $ (147,304)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (10.20) $ (28.44)
============ ============
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
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
TOTAL SERIES 7 - 11 1998 1997
---- ----
Revenues:
Interest Income $ 85,845 $ 84,986
----------- -----------
Expenses:
Asset Management Fee-General Partner 146,296 135,211
General and Administrative:
General Partner 27,336 25,486
Other 40,949 47,213
Amortization 27,893 26,940
----------- -----------
Total Expenses 242,474 234,850
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (156,629) (149,864)
Equity in Losses of Project
Partnerships (1,443,656) (1,488,155)
---------- ----------
Net Loss $(1,600,285) $(1,638,019)
=========== ===========
Allocation of Net Loss:
Limited Partners $(1,584,282) $(1,621,639)
General Partners (16,003) (16,380)
----------- -----------
$(1,600,285) $(1,638,019)
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998 AND 1997:
Limited General
SERIES 7 Partners Partners Total
--------- -------- -----
Balance at March 31, 1997 $ 5,025,507 $ (41,437) $ 4,984,070
Net Loss (480,756) (4,856) (485,612)
----------- ----------- -----------
Balance at September 30,1997 $ 4,544,751 $ (46,293) $ 4,498,458
============ ============ ============
Balance at March 31, 1998 $ 4,024,753 $ (51,546) $ 3,973,207
Net Loss (539,336) (5,448) (544,784)
----------- ----------- -----------
Balance at September 30,1998 $ 3,485,417 $ (56,994) $ 3,428,423
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998 AND 1997:
Limited General
SERIES 8 Partners Partners Total
--------- -------- -----
Balance at March 31, 1997 $ 5,227,849 $ (35,704) $ 5,192,145
Net Loss (632,575) (6,390) (638,965)
----------- ----------- -----------
Balance at September 30,1997 $ 4,595,274 $ (42,094) $ 4,553,180
============ ============ ============
Balance at March 31, 1998 $ 4,177,520 $ (46,313) $ 4,131,207
Net Loss (575,326) (5,811) (581,137)
----------- ----------- -----------
Balance at September 30,1998 $ 3,602,194 $ (52,124) $ 3,550,070
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998 AND 1997:
Limited General
SERIES 9 Partners Partners Total
--------- -------- -----
Balance at March 31, 1997 $ 4,177,521 $ (13,194) $ 4,164,327
Net Loss (239,839) (2,423) (242,262)
----------- ----------- -----------
Balance at September 30,1997 $ 3,937,682 $ (15,617) $ 3,922,065
============ ============ ============
Balance at March 31, 1998 $ 3,670,140 $ (18,319) $ 3,651,821
Net Loss (283,233) (2,861) (286,094)
----------- ----------- -----------
Balance at September 30,1998 $ 3,386,907 $ (21,180) $ 3,365,727
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998 AND 1997:
Limited General
SERIES 10 Partners Partners Total
--------- -------- -----
Balance at March 31, 1997 $ 3,938,729 $ (4,841) $ 3,933,888
Net Loss (122,637) (1,239) (123,876)
----------- ----------- -----------
Balance at September 30,1997 $ 3,816,092 $ (6,080) $ 3,810,012
============ ============ ============
Balance at March 31, 1998 $ 3,716,198 $ (7,089) $ 3,709,109
Net Loss (134,114) (1,355) (135,469)
----------- ----------- -----------
Balance at September 30,1998 $ 3,582,084 $ (8,444) $ 3,573,640
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998 AND 1997:
Limited General
SERIES 11 Partners Partners Total
--------- -------- -----
Balance at March 31, 1997 $ 4,452,477 $ (1,481) $ 4,450,996
Net Loss (145,831) (1,473) (147,304)
----------- ----------- -----------
Balance at September 30,1997 $ 4,306,646 $ (2,954) $ 4,303,692
============ ============ ============
Balance at March 31, 1998 $ 4,271,126 $ (3,313) $ 4,267,813
Net Loss (52,273) (528) (52,801)
----------- ----------- -----------
Balance at September 30,1998 $ 4,218,853 $ (3,841) $ 4,215,012
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1998 AND 1997:
Limited General
TOTAL SERIES 7 - 11 Partners Partners Total
--------- -------- -----
Balance at March 31, 1997 $22,822,083 $ (96,657) $22,725,426
Net Loss (1,621,638) (16,381) (1,638,019)
----------- ----------- -----------
Balance at September 30,1997 $21,200,445 $ (113,038) $21,087,407
============ ============ ============
Balance at March 31, 1998 $19,859,737 $ (126,580) $19,733,157
Net Loss (1,584,282) (16,003) (1,600,285)
----------- ----------- -----------
Balance at September 30,1998 $18,275,455 $ (142,583) $18,132,872
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 7 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (544,784) $ (485,612)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 11,102 10,879
Accreted Interest Income on Investments
in Securities (15,586) (16,020)
Equity in Losses of Project Partnerships 492,501 435,959
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (1,886) (4,456)
----------- -----------
Net Cash Used in Operating Activities (58,653) (59,250)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series 0 0
(Increase) Decrease in Receivable from
Project Partnerships 0 0
Acquisition Fees and Expenses 0 0
Distributions Received from Project
Partnerships 17,019 18,280
Increase (Decrease) in Payable to Project
Partnerships - Capital Contributions 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 17,019 18,280
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (41,634) (40,970)
Cash and Cash Equivalents at Beginning of
Year 286,106 267,980
----------- -----------
Cash and Cash Equivalents at End of Year $ 244,472 $ 227,010
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 8 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (581,137) $ (638,965)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 6,345 5,989
Accreted Interest Income on Investments
in Securities (13,971) (14,394)
Equity in Losses of Project Partnership 530,733 589,692
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 1,868 3,369
----------- -----------
Net Cash Used in Operating Activities (56,162) (54,309)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series 0 0
(Increase) Decrease in Receivable from
Project Partnerships 0 453
Acquisition Fees and Expenses 0 0
Distributions Received from Project
Partnerships 8,138 13,241
Increase (Decrease) in Payable to Project
Partnerships - Capital Contributions 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 8,138 13,694
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (48,024) (40,615)
Cash and Cash Equivalents at Beginning of
Year 410,727 396,038
----------- -----------
Cash and Cash Equivalents at End of Year $ 362,703 $ 355,423
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 9 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (286,094) $ (242,262)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 3,486 3,558
Accreted Interest Income on Investments
in Securities (8,463) (8,783)
Equity in Losses of Project Partnerships 258,084 214,375
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 5,917 5,908
----------- -----------
Net Cash Used in Operating Activities (27,070) (27,204)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series (2,208) 0
(Increase) Decrease in Receivable from
Project Partnerships 2,208 0
Acquisition Fees and Expenses 0 0
Distributions Received from Project
Partnerships 7,364 7,173
Increase (Decrease) in Payable -
Other Series 1,003 0
Project Partnerships - Capital
Contributions (1,003) 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 7,364 7,173
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (19,706) (20,031)
Cash and Cash Equivalents at Beginning of
Year 180,104 161,813
----------- -----------
Cash and Cash Equivalents at End of Year $ 160,398 $ 141,782
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 10 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (135,469) $ (123,876)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 2,812 2,920
Accreted Interest Income on Investments
in Securities (7,775) (7,878)
Equity in Losses of Project Partnerships 120,252 110,446
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (11,783) (11,623)
----------- -----------
Net Cash Used in Operating Activities (31,963) (30,011)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series (1,003) 0
(Increase) Decrease in Receivable from
Project Partnerships 1,003 0
Acquisition Fees and Expenses 0 0
Distributions Received from Project
Partnerships 6,545 3,805
Increase (Decrease) in Payable -
Other Series 2,208 0
Project Partnerships - Capital
Contributions (2,208) (7,712)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 6,545 (3,907)
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (25,418) (33,918)
Cash and Cash Equivalents at Beginning of
Year 202,435 199,743
----------- -----------
Cash and Cash Equivalents at End of Year $ 177,017 $ 165,825
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 11 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (52,801) $ (147,304)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 4,148 3,594
Accreted Interest Income on Investments
in Securities (8,891) (9,063)
Equity in Losses of Project Partnerships 42,086 137,683
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (11,244) (6,612)
----------- ----------
Net Cash Used in Operating Activities (26,702) (21,702)
----------- ----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series 0 0
(Increase) Decrease in Receivable from
Project Partnerships 0 0
Acquisition Fees and Expenses 0 0
Distributions Received from Project
Partnerships 2,182 4,669
Increase (Decrease) in Payable to Project
Partnerships - Capital Contributions 0 0
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 2,182 4,669
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (24,520) (17,033)
Cash and Cash Equivalents at Beginning of
Year 208,198 169,385
----------- ----------
Cash and Cash Equivalents at End of Year $ 183,678 $ 152,352
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
TOTAL SERIES 7 - 11 1998 1997
- ------------------- ---- ----
Cash Flows from Operating Activities:
Net Loss $(1,600,285) $(1,638,019)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 27,893 26,940
Accreted Interest Income on Investments
in Securities (54,686) (56,138)
Equity in Losses of Project Partnerships 1,443,656 1,488,155
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (17,128) (13,414)
----------- -----------
Net Cash Used in Operating Activities (200,550) (192,476)
----------- -----------
Cash Flows from Investing Activities:
Increase in Receivable from Other Series (3,211) 0
(Increase) Decrease in Receivable from
Project Partnerships 3,211 453
Acquisition Fees and Expenses 0 0
Distributions Received from Project
Partnerships 41,248 47,168
Increase (Decrease) in Payable -
Other Series 3,211 0
Project Partnerships - Capital
Contributions (3,211) (7,712)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 41,248 39,909
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (159,302) (152,567)
Cash and Cash Equivalents at Beginning of
Year 1,287,570 1,194,959
----------- -----------
Cash and Cash Equivalents at End of Year $ 1,128,268 $ 1,042,392
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
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. As of September 30, 1998, Gateway
had received capital contributions of $1,000 from the General Partners and
$36,799,000 from the investor Limited Partners.
Raymond James Partners, Inc. and Raymond James Tax Credit Funds, 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 will be 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 will be specifically allocated
among the limited partners of such Series.
Operating profits and losses, cash distributions from operations and Tax
Credits from each Series are generally 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 in
curred.
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, and
3) Decreased for the amortization of the acquisition fees and expenses.
Amortization is calculated on a straight line basis over 35 years, as
this is the average estimated useful life of the underlying assets. The
amortization 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.
Gateway recognizes a decline in the carrying value of its investment in
the Project Partnerships when there is evidence of a non-temporary decline
in the recoverable amount of the investment. There is a possibility that
the estimates relating to reserves for non-temporary declines in carrying
value of the investments in Project Partnerships may be subject to material
near term adjustments.
Gateway, as a limited partner in the Project Partnerships, is subject to
risks inherent in the ownership of property which are beyond its control,
such as fluctuations in occupancy rates and operating expenses, variations
in rental schedules, proper maintenance and continued eligibility of tax
credits. If the cost of operating a property exceeds the rental income
earned thereon, Gateway may deem it in its best interest to voluntarily
provide funds in order to protect its investment.
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.
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, 1998. 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, 1998 Balance Sheet includes Investment in Securities
consisting of U.S. Treasury Security Strips which represents their cost,
plus accreted interest income of $157,694 for Series 7, $133,373 for Series
8, $73,151 for Series 9, $62,052 for Series 10 and $68,256 for Series 11.
Gross Unrealized
Estimated Market Cost Plus Gains and
Value Accreted Interest (Losses)
----------------- ----------------- ----------------
Series 7 $ 529,412 $ 467,480 $ 61,932
Series 8 492,001 441,843 50,158
Series 9 319,989 295,447 24,542
Series 10 268,493 237,165 31,328
Series 11 297,057 253,452 43,605
As of September 30, 1998, the cost and accreted interest of debt
securities by contractual maturities is as follows:
Series 7 Series 8 Series 9
-------- -------- --------
Due with 1 year $ 49,107 $ 44,188 $ 28,519
After 1 year through 5 years 193,769 180,505 112,420
After 5 years through 10 years 224,604 217,150 130,218
Over 10 years 0 0 24,290
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 467,480 $ 441,843 $ 295,447
========== ========== ==========
Series 10 Series 11 Total
-------- -------- --------
Due with 1 year $ 23,559 $ 22,522 $ 167,895
After 1 year through 5 years 85,191 88,383 660,268
After 5 years through 10 years 93,094 104,641 769,707
Over 10 years 35,321 37,906 97,517
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 237,165 $ 253,452 $1,695,387
========== ========== ==========
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 12 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 six months ended September 30 1998 and 1997 the General Partners
and affiliates are entitled to compensation and reimbursement for costs and
expenses incurred by Gateway as follows:
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.
1998 1997
----- -----
Series 7 $ 44,216 $ 39,648
Series 8 46,094 43,714
Series 9 25,296 24,399
Series 10 17,050 15,250
Series 11 13,640 12,200
-------- --------
Total $146,296 $135,211
======== ========
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.
1998 1997
----- -----
Series 7 $ 8,016 $ 7,472
Series 8 8,838 8,240
Series 9 4,933 4,599
Series 10 3,083 2,875
Series 11 2,466 2,300
-------- --------
Total $ 27,336 $ 25,486
======== ========
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of September 30, 1998, the Partnership had acquired an interest
(generally 99%) in 133 Project Partnerships which own and operate
government assisted multi-family housing complexes (Series 7-39, Series 8-
43, Series 9-24, Series 10-15 and Series 11-12).
The following is a summary of Investments in Project Partnerships as of:
SERIES 7 SEPTEMBER 30, MARCH 31,
1998 1998
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 7,732,089 $ 7,732,089
Cumulative equity in losses of Project
Partnerships (1) (5,275,427) (4,782,926)
Cumulative distributions received from
Project Partnerships (118,283) (101,264)
----------- -----------
Investment in Project Partnerships before
adjustment 2,338,379 2,847,899
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 793,335 793,335
Accumulated amortization of acquisition
fees and expenses (134,484) (123,382)
------------ ------------
Investments in Project Partnerships $ 2,997,230 $ 3,517,852
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $102,777 for the period ended September 30, 1998 and $82,376 for the
year ended March 31, 1998 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1998, the Partnership had acquired an interest
(generally 99%) in 133 Project Partnerships which own and operate
government assisted multi-family housing complexes (Series 7-39, Series 8-
43, Series 9-24, Series 10-15 and Series 11-12).
The following is a summary of Investments in Project Partnerships as of:
SERIES 8 SEPTEMBER 30, MARCH 31,
1998 1998
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 7,586,105 $ 7,586,105
Cumulative equity in losses of Project
Partnerships (1) (4,902,822) (4,372,089)
Cumulative distributions received from
Project Partnerships (92,860) (84,722)
----------- -----------
Investment in Project Partnerships before
adjustment 2,590,423 3,129,294
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 549,773 549,773
Accumulated amortization of acquisition
fees and expenses (77,183) (70,838)
------------ ------------
Investments in Project Partnerships $ 3,063,013 $ 3,608,229
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $108,921 for the period ended September 30, 1998 and $79,383 for the
year ended March 31, 1998 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1998, the Partnership had acquired an interest
(generally 99%) in 133 Project Partnerships which own and operate
government assisted multi-family housing complexes (Series 7-39, Series 8-
43, Series 9-24, Series 10-15 and Series 11-12).
The following is a summary of Investments in Project Partnerships as of:
SERIES 9 SEPTEMBER 30, MARCH 31,
1998 1998
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 4,914,116 $ 4,914,116
Cumulative equity in losses of Project
Partnerships (1,969,943) (1,711,859)
Cumulative distributions received from
Project Partnerships (61,998) (54,634)
----------- ----------
Investment in Project Partnerships before
adjustment 2,882,175 3,147,623
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 244,087 244,087
Accumulated amortization of acquisition
fees and expenses (31,819) (28,333)
------------ ------------
Investments in Project Partnerships $ 3,094,443 $ 3,363,377
============ ============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1998, the Partnership had acquired an interest
(generally 99%) in 133 Project Partnerships which own and operate
government assisted multi-family housing complexes (Series 7-39, Series 8-
43, Series 9-24, Series 10-15 and Series 11-12).
The following is a summary of Investments in Project Partnerships as of:
SERIES 10 SEPTEMBER 30, MARCH 31,
1998 1998
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 3,914,672 $ 3,914,672
Cumulative equity in losses of Project
Partnerships (795,554) (675,302)
Cumulative distributions received from
Project Partnerships (65,899) (59,354)
----------- ----------
Investment in Project Partnerships before
adjustment 3,053,219 3,180,016
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 196,738 196,738
Accumulated amortization of acquisition
fees and expenses (26,897) (24,085)
------------- ------------
Investments in Project Partnerships $ 3,223,060 $ 3,352,669
============= ============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1998, the Partnership had acquired an interest
(generally 99%) in 133 Project Partnerships which own and operate
government assisted multi-family housing complexes (Series 7-39, Series 8-
43, Series 9-24, Series 10-15 and Series 11-12).
The following is a summary of Investments in Project Partnerships as of:
SERIES 11 SEPTEMBER 30, MARCH 31,
1998 1998
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $ 4,128,042 $ 4,128,042
Cumulative equity in losses of Project
Partnerships (532,129) (490,043)
Cumulative distributions received from
Project Partnerships (45,991) (43,809)
----------- -----------
Investment in Project Partnerships before
adjustment 3,549,922 3,594,190
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 290,335 290,335
Accumulated amortization of acquisition
fees and expenses (26,942) (22,794)
------------ -----------
Investments in Project Partnerships $ 3,813,315 $ 3,861,731
============= =============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
The following is a summary of Investments in Project Partnerships as of:
TOTAL SERIES 7 - 11 SEPTEMBER 30, MARCH 31,
1998 1998
-------------- -----------
Capital Contributions to Project Partner-
ships and purchase price paid for limited
partner interests in Project Partnerships $28,275,024 $28,275,024
Cumulative equity in losses of Project
Partnerships (1) (13,475,875) (12,032,219)
Cumulative distributions received from
Project Partnerships (385,031) (343,783)
------------ -----------
Investment in Project Partnerships before
adjustment 14,414,118 15,899,022
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 2,074,268 2,074,268
Accumulated amortization of acquisition
fees and expenses (297,325) (269,432)
------------ ------------
Investments in Project Partnerships $16,191,061 $17,703,858
============ =============
<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:
1998 1997
SERIES 7 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,745,205 $ 2,553,915
Investment properties, net 37,221,049 38,684,533
Other assets 61,340 90,231
------------ ------------
Total assets $40,027,594 $41,328,679
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 976,252 $ 1,134,296
Long-term debt 36,837,474 36,935,137
------------ ------------
Total liabilities 37,813,726 38,069,433
------------ ------------
Partners' equity
Limited Partner 2,209,833 3,254,344
General Partners 4,035 4,902
----------- -----------
Total Partners' equity 2,213,868 3,259,246
----------- -----------
Total liabilities and partners' equity $40,027,594 $41,328,679
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,092,878 $ 2,158,653
Expenses: ------------ ------------
Operating expenses 1,298,459 1,197,337
Interest expense 531,994 630,765
Depreciation and amortization 780,508 792,801
------------ ------------
Total expenses 2,610,961 2,620,903
------------ ------------
Net loss $ (518,083) $ (462,250)
============ ============
Other partners' share of net loss $ (5,181) $ (4,623)
============ ============
Partnerships' share of net loss $ (512,902) $ (457,627)
Suspended loss 20,401 21,668
------------ ------------
Equity in Losses of Project Partnerships $ (492,501) $ (435,959)
============ ============
<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:
1998 1997
SERIES 8 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,396,895 $ 2,152,244
Investment properties, net 40,001,426 41,562,416
Other assets 48,690 58,329
------------ ------------
Total assets $42,447,011 $43,772,989
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,187,110 $ 1,280,837
Long-term debt 38,850,768 39,029,977
------------ ------------
Total liabilities 40,037,878 40,310,814
------------ ------------
Partners' equity
Limited Partner 2,533,962 3,517,799
General Partners (124,829) (55,624)
----------- -----------
Total Partners' equity 2,409,133 3,462,175
----------- -----------
Total liabilities and partners' equity $42,447,011 $43,772,989
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,008,626 $ 2,021,757
Expenses: ------------ ------------
Operating expenses 1,270,406 1,255,152
Interest expense 490,747 551,530
Depreciation and amortization 813,403 816,063
------------ ------------
Total expenses 2,574,556 2,622,745
------------ ------------
Net loss $ (565,930) $ (600,988)
============ ============
Other partners' share of net loss $ (5,659) $ (6,010)
============ ============
Partnerships' share of net loss $ (560,271) $ (594,978)
Suspended loss 29,538 5,286
------------ ------------
Equity in Losses of Project Partnerships $ (530,733) $ (589,692)
============ ============
<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:
1998 1997
SERIES 9 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,479,412 $ 1,426,611
Investment properties, net 22,202,473 23,091,859
Other assets 82,523 8,778
------------ ------------
Total assets $23,764,408 $24,527,248
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 392,488 $ 508,592
Long-term debt 20,576,103 20,645,826
------------ ------------
Total liabilities 20,968,591 21,154,418
------------ ------------
Partners' equity
Limited Partner 2,875,492 3,401,970
General Partners (79,675) (29,140)
----------- -----------
Total Partners' equity 2,795,817 3,372,830
----------- -----------
Total liabilities and partners' equity $23,764,408 $24,527,248
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,063,142 $ 1,114,021
Expenses: ------------ ------------
Operating expenses 624,728 577,980
Interest expense 248,345 318,207
Depreciation and amortization 450,760 434,374
------------ ------------
Total expenses 1,323,833 1,330,561
------------ ------------
Net loss $ (260,691) $ (216,540)
============ ============
Other partners' share of net loss $ (2,607) $ (2,165)
============ ============
Partnerships' share of net loss $ (258,084) $ (214,375)
Suspended loss 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (258,084) $ (214,375)
============ ============
<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:
1998 1997
SERIES 10 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,217,315 $ 1,097,193
Investment properties, net 15,467,235 15,949,744
Other assets 22,594 18,305
------------ ------------
Total assets $16,707,144 $17,065,242
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 240,542 $ 263,890
Long-term debt 13,486,584 13,538,658
------------ ------------
Total liabilities 13,727,126 13,802,548
------------ ------------
Partners' equity
Limited Partner 3,062,329 3,286,943
General Partners (82,311) (24,249)
----------- -----------
Total Partners' equity 2,980,018 3,262,694
----------- -----------
Total liabilities and partners' equity $16,707,144 $17,065,242
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 699,651 $ 688,913
Expenses: ------------ ------------
Operating expenses 423,532 398,430
Interest expense 142,440 145,835
Depreciation and amortization 255,146 256,210
------------ ------------
Total expenses 821,118 800,475
------------ ------------
Net loss $ (121,467) $ (111,562)
============ ============
Other partners' share of net loss $ (1,215) $ (1,116)
============ ============
Partnerships' share of net loss $ (120,252) $ (110,446)
Suspended loss 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (120,252) $ (110,446)
============ ============
<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:
1998 1997
SERIES 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,026,381 $ 672,719
Investment properties, net 13,743,508 14,234,970
Other assets 11,223 28,811
------------ ------------
Total assets $14,781,112 $14,936,500
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 345,386 $ 231,985
Long-term debt 10,802,181 10,919,656
------------ ------------
Total liabilities 11,147,567 11,151,641
------------ ------------
Partners' equity
Limited Partner 3,561,589 3,666,203
General Partners 71,956 118,656
----------- -----------
Total Partners' equity 3,633,545 3,784,859
----------- -----------
Total liabilities and partners' equity $14,781,112 $14,936,500
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 732,320 $ 722,192
Expenses: ------------ ------------
Operating expenses 365,963 350,042
Interest expense 156,798 248,214
Depreciation and amortization 252,070 263,010
------------ ------------
Total expenses 774,831 861,266
------------ ------------
Net loss $ (42,511) $ (139,074)
============ ============
Other partners' share of net loss $ (425) $ (1,391)
============ ============
Partnerships' share of net loss $ (42,086) $ (137,683)
Suspended loss 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (42,086) $ (137,683)
============ ============
<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:
1998 1997
TOTAL SERIES 7 - 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 8,865,208 $ 7,902,682
Investment properties, net 128,635,691 133,523,522
Other assets 226,370 204,454
------------ ------------
Total assets $137,727,269 $141,630,658
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 3,141,778 $ 3,419,600
Long-term debt 120,553,110 121,069,254
------------ ------------
Total liabilities 123,694,888 124,488,854
------------ ------------
Partners' equity
Limited Partner 14,243,205 17,127,259
General Partners (210,824) 14,545
----------- -----------
Total Partners' equity 14,032,381 17,141,804
----------- -----------
Total liabilities and partners' equity $137,727,269 $141,630,658
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 6,596,617 $ 6,705,536
Expenses: ------------ ------------
Operating expenses 3,983,088 3,778,941
Interest expense 1,570,324 1,894,551
Depreciation and amortization 2,551,887 2,562,458
------------ ------------
Total expenses 8,105,299 8,235,950
------------ ------------
Net loss $ (1,508,682) $ (1,530,414)
============ ============
Other partners' share of net loss $ (15,087) $ (15,305)
============ ============
Partnerships' share of net loss $ (1,493,595) $ (1,515,109)
Suspended losses 49,939 26,954
------------ ------------
Equity in Losses of Project Partnerships $ (1,443,656) $ (1,488,155)
============ ============
<PAGE>
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
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.
As disclosed on the statement of operations for each Series, except as
described below, interest income is comparable for the six and three months
ended September 30, 1998 and September 30, 1997. The General and
Administrative expenses - General Partner and General and Administrative
expenses - Other for the three and six months ended September 30, 1998 are
comparable to September 30, 1997. There were no unusual variations in the
operating results between these two periods.
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. (Payment of any
Asset Management Fee unpaid at the time Gateway sells its interests in the
Project Partnerships is subordinated to the investors' return of their
original capital contribution.)
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 were comparable for the six months ended September 30,
1998 and September 30, 1997. 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 those 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, 1998, the Series had $244,472 of short-term investments
(Cash and Cash Equivalents). It also had $467,480 in Zero Coupon
Treasuries with annual maturities providing $50,000 in fiscal year 1999
increasing to $86,000 in fiscal year 2008. 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
$544,784 for the six months ended September 30, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $492,501 and the
changes in operating assets and liabilities, net cash used in operating
activities was $58,653 as a result of paying Asset Management Fees of
$41,000. Cash provided by investing activities totaled $17,019, consisting
of cash distributions from the Project Partnerships.
Series 8 - Gateway closed this Series on September 28, 1993 after
receiving $9,980,000 from 664 Limited Partner investors. Equity in Losses
of Project Partnerships were comparable for the six months ended September
30, 1998 and September 30, 1997. At September 30, 1998, the Series had
$362,703 of short-term investments (Cash and Cash Equivalents). It also
had $441,844 in Zero Coupon Treasuries with annual maturities providing
$45,000 in fiscal year 1999 increasing to $82,000 in fiscal year 2008.
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
$581,137 for the six months ended September 30, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $530,733 and the
changes in operating assets and liabilities, net cash used in operating
activities was $56,162 as a result of paying Asset Management Fees of
$39,000. Cash provided by investing activities totaled $8,138, consisting
of cash distributions from the Project Partnerships. There were no unusual
events or trends to describe.
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 were comparable for the six months ended September 30, 1998
and September 30, 1997. At September 30, 1998, the Series had $160,398 of
short-term investments (Cash and Cash Equivalents). It also had $295,447
in Zero Coupon Treasuries with annual maturities providing $29,000 in
fiscal year 1999 increasing to $47,000 in fiscal year 2009. 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
$286,094 for the six months ended September 30, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $258,084 and the
changes in operating assets and liabilities, net cash used in operating
activities was $27,070 as a result of paying Asset Management Fees of
$16,000. Cash provided by investing activities totaled $7,364, consisting
of cash distributions from the Project Partnerships. There were no unusual
events or trends to describe.
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 were comparable for the six months ended September 30, 1998
and September 30, 1998. At September 30, 1998, the Series had $177,017 of
short-term investments (Cash and Cash Equivalents). It also had $237,165
in Zero Coupon Treasuries with annual maturities providing $24,000 in
fiscal year 1999 increasing to $40,000 in fiscal year 2010. 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
$135,469 for the six months ended September 30, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $120,252 and the
changes in operating assets and liabilities, net cash used in operating
activities was $31,963 as a result of paying Asset Management Fees of
$26,000. Cash provided by investing activities totaled $6,545, consisting
of cash distributions from the Project Partnerships. There were no unusual
events or trends to describe.
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 decreased from $137,683 for the six months ended September 30,
1997 to $42,086 for the six months ended September 30, 1998. At September
30, 1998, the Series had $183,678 of short-term investments (Cash and Cash
Equivalents). It also had $253,452 in Zero Coupon Treasuries with annual
maturities providing $23,000 in fiscal year 1999 increasing to $44,000 in
fiscal year 2010. 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
$52,801 for the six months ended September 30, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $42,086 and the
changes in operating assets and liabilities, net cash used in operating
activities was $26,702 as a result of paying Asset Management Fees of
$23,000. Cash provided by investing activities totaled $2,182, consisting
of cash distributions from the Project Partnerships. There were no unusual
events or trends to describe.
<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: Raymond James Tax Credit Funds,Inc.
Date: November 13, 1998 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: November 13, 1998 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, 1998.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> SEP-30-1998
<CASH> 1,128,268
<SECURITIES> 1,695,388
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,293,744
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 19,014,717
<CURRENT-LIABILITIES> 178,898
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 18,132,872
<TOTAL-LIABILITY-AND-EQUITY> 19,014,717
<SALES> 0
<TOTAL-REVENUES> 85,8455
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 242,474
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,600,285)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,600,285)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,600,285)
<EPS-PRIMARY> (43.05)<F1>
<EPS-DILUTED> (43.05)<F1>
<FN>
<F1>EPS IS NET LOSS PER $1,000 LIMITED PARTNERSHIP UNIT.
</FN>
</TABLE>
|
|