GTWY2
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 December 31, 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: (727)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 December 31, 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 DECEMBER 31, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 242,996 $ 286,106
Investments in Securities 49,844 47,675
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 292,840 $ 333,781
Investments in Securities 425,635 404,220
Investments in Project Partnerships, Net 2,775,287 3,517,852
----------- -----------
Total Assets $ 3,493,762 $ 4,255,853
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 52,018 $ 55,760
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 52,018 55,760
----------- -----------
Long-Term Liabilities:
Payable to General Partners 248,416 226,886
----------- -----------
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 December 31,1998 and March 31,1998) 3,252,673 4,024,753
General Partners (59,345) (51,546)
----------- -----------
Total Partners' Equity $ 3,193,328 $ 3,973,207
----------- -----------
Total Liabilities and Partners' Equity $ 3,493,762 $ 4,255,853
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 8 DECEMBER 31, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 361,164 $ 410,727
Investments in Securities 44,811 42,967
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 405,975 $ 453,694
Investments in Securities 404,190 384,906
Investments in Project Partnerships, Net 2,800,088 3,608,229
----------- -----------
Total Assets $ 3,610,253 $ 4,446,829
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 42,558 $ 46,515
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 42,558 46,515
----------- -----------
Long-Term Liabilities:
Payable to General Partners 295,064 269,107
----------- -----------
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 December 31,1998 and March 31,1998) 3,327,530 4,177,520
General Partners (54,899) (46,313)
----------- -----------
Total Partners' Equity $ 3,272,631 $ 4,131,207
----------- -----------
Total Liabilities and Partners' Equity $ 3,610,253 $ 4,446,829
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 9 DECEMBER 31, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 161,270 $ 180,104
Investments in Securities 28,884 27,803
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 190,154 $ 207,907
Investments in Securities 270,888 259,181
Investments in Project Partnerships, Net 2,919,488 3,363,377
----------- -----------
Total Assets $ 3,380,530 $ 3,830,465
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 24,487 $ 26,911
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 24,487 26,911
----------- -----------
Long-Term Liabilities:
Payable to General Partners 171,342 151,733
----------- -----------
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 December 31,1998 and March 31,1998) 3,207,691 3,670,140
General Partners (22,990) (18,319)
----------- -----------
Total Partners' Equity $ 3,184,701 $ 3,651,821
----------- -----------
Total Liabilities and Partners' Equity $ 3,380,530 $ 3,830,465
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 10 DECEMBER 31, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 177,013 $ 202,435
Investments in Securities 23,916 22,865
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 200,929 $ 225,300
Investments in Securities 217,257 206,525
Investments in Project Partnerships, Net 3,065,010 3,352,669
----------- -----------
Total Assets $ 3,483,196 $ 3,784,494
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 28,034 $ 30,279
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 28,034 30,279
----------- -----------
Long-Term Liabilities:
Payable to General Partners 43,223 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 December 31,1998 and March 31,1998) 3,422,000 3,716,198
General Partners (10,061) (7,089)
----------- -----------
Total Partners' Equity $ 3,411,939 $ 3,709,109
----------- -----------
Total Liabilities and Partners' Equity $ 3,483,196 $ 3,784,494
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 11 DECEMBER 31, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 186,863 $ 208,198
Investments in Securities 22,896 21,794
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 209,759 $ 229,992
Investments in Securities 235,122 222,768
Investments in Project Partnerships, Net 3,773,987 3,861,731
----------- -----------
Total Assets $ 4,218,868 $ 4,314,491
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 27,863 $ 29,179
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 27,863 29,179
----------- -----------
Long-Term Liabilities:
Payable to General Partners 13,791 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 December 31,1998 and March 31,1998) 4,181,433 4,271,126
General Partners (4,219) (3,313)
----------- -----------
Total Partners' Equity $ 4,177,214 $ 4,267,813
----------- -----------
Total Liabilities and Partners' Equity $ 4,218,868 $ 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 DECEMBER 31, MARCH 31,
1998 1998
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,129,306 $ 1,287,570
Investments in Securities 170,351 163,104
Receivable from Project Partnerships 0 0
------------ ------------
Total Current Assets $ 1,299,657 $ 1,450,674
Investments in Securities 1,553,092 1,477,600
Investments in Project Partnerships, Net 15,333,860 17,703,858
----------- -----------
Total Assets $18,186,609 $20,632,132
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 174,960 $ 188,644
Payable to Project Partnerships 0 0
----------- -----------
Total Current Liabilities 174,960 188,644
----------- -----------
Long-Term Liabilities:
Payable to General Partners 771,836 710,331
----------- -----------
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 December 31,1998 and March 31,1998) 17,391,326 19,859,737
General Partners (151,513) (126,580)
----------- -----------
Total Partners' Equity $17,239,813 $19,733,157
----------- -----------
Total Liabilities and Partners' Equity $18,186,609 $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 DECEMBER 31,
(Unaudited)
SERIES 7 1998 1997
---- ----
Revenues:
Interest Income $ 10,900 $ 11,190
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,108 20,148
General and Administrative:
General Partner 2,328 3,587
Other 2,197 2,382
Amortization 5,551 5,419
----------- -----------
Total Expenses 32,184 31,536
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (21,284) (20,346)
Equity in Losses of Project
Partnerships (213,811) (215,527)
---------- ----------
Net Loss $ (235,095) $ (235,873)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (232,744) $ (233,514)
General Partners (2,351) (2,359)
----------- -----------
$ (235,095) $ (235,873)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (22.39) $ (22.46)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 8 1998 1997
---- ----
Revenues:
Interest Income $ 11,469 $ 11,993
----------- -----------
Expenses:
Asset Management Fee-General Partner 23,047 22,214
General and Administrative:
General Partner 2,567 3,952
Other 2,311 2,325
Amortization 3,853 3,675
----------- -----------
Total Expenses 31,778 32,166
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (20,309) (20,173)
Equity in Losses of Project
Partnerships (257,130) (277,623)
---------- ----------
Net Loss $ (277,439) $ (297,796)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (274,665) $ (294,818)
General Partners (2,774) (2,978)
----------- -----------
$ (277,439) $ (297,796)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (27.52) $ (29.54)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 9 1998 1997
---- ----
Revenues:
Interest Income $ 6,235 $ 6,356
----------- -----------
Expenses:
Asset Management Fee-General Partner 12,648 12,398
General and Administrative:
General Partner 1,433 2,206
Other 1,490 1,580
Amortization 1,743 1,779
----------- -----------
Total Expenses 17,314 17,963
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (11,079) (11,607)
Equity in Losses of Project
Partnerships (169,947) (98,139)
---------- ----------
Net Loss $ (181,026) $ (109,746)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (179,216) $ (108,649)
General Partners (1,810) (1,097)
----------- -----------
$ (181,026) $ (109,746)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (28.66) $ (17.37)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 10 1998 1997
---- ----
Revenues:
Interest Income $ 6,119 $ 6,191
----------- -----------
Expenses:
Asset Management Fee-General Partner 8,525 7,749
General and Administrative:
General Partner 896 1,378
Other 1,021 1,129
Amortization 1,406 1,460
----------- -----------
Total Expenses 11,848 11,716
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (5,729) (5,525)
Equity in Losses of Project
Partnerships (155,972) (61,786)
---------- ----------
Net Loss $ (161,701) $ (67,311)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (160,084) $ (66,638)
General Partners (1,617) (673)
----------- -----------
$ (161,701) $ (67,311)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (31.74) $ (13.21)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 11 1998 1997
---- ----
Revenues:
Interest Income $ 6,778 $ 6,639
----------- -----------
Expenses:
Asset Management Fee-General Partner 6,820 6,199
General and Administrative:
General Partner 717 1,102
Other 1,116 1,284
Amortization 2,074 1,797
----------- -----------
Total Expenses 10,727 10,382
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (3,949) (3,743)
Equity in Losses of Project
Partnerships (33,849) (41,995)
---------- ----------
Net Loss $ (37,798) $ (45,738)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (37,420) $ (45,281)
General Partners (378) (457)
----------- -----------
$ (37,798) $ (45,738)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (7.30) $ (8.83)
============ ============
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 DECEMBER 31,
(Unaudited)
TOTAL SERIES 7 - 11 1998 1997
---- ----
Revenues:
Interest Income $ 41,501 $ 42,369
----------- -----------
Expenses:
Asset Management Fee-General Partner 73,148 68,708
General and Administrative:
General Partner 7,941 12,225
Other 8,135 8,700
Amortization 14,627 14,130
----------- -----------
Total Expenses 103,851 103,763
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (62,350) (61,394)
Equity in Losses of Project
Partnerships (830,709) (695,070)
---------- ----------
Net Loss $ (893,059) $ (756,464)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (884,128) $ (748,899)
General Partners (8,931) (7,565)
----------- -----------
$ (893,059) $ (756,464)
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 7 1998 1997
---- ----
Revenues:
Interest Income $ 33,471 $ 33,835
----------- -----------
Expenses:
Asset Management Fee-General Partner 66,324 59,796
General and Administrative:
General Partner 10,344 11,059
Other 13,717 16,681
Amortization 16,653 16,298
----------- -----------
Total Expenses 107,038 103,834
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (73,567) (69,999)
Equity in Losses of Project
Partnerships (706,312) (651,486)
---------- ----------
Net Loss $ (779,879) $ (721,485)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (772,080) $ (714,270)
General Partners (7,799) (7,215)
----------- -----------
$ (779,879) $ (721,485)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (74.27) $ (68.71)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 8 1998 1997
---- ----
Revenues:
Interest Income $ 35,311 $ 35,614
----------- -----------
Expenses:
Asset Management Fee-General Partner 69,141 65,928
General and Administrative:
General Partner 11,405 12,192
Other 15,280 17,276
Amortization 10,198 9,664
----------- -----------
Total Expenses 106,024 105,060
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (70,713) (69,446)
Equity in Losses of Project
Partnerships (787,863) (867,315)
---------- ----------
Net Loss $ (858,576) $ (936,761)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (849,990) $ (927,393)
General Partners (8,586) (9,368)
----------- -----------
$ (858,576) $ (936,761)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (85.17) $ (92.93)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 9 1998 1997
---- ----
Revenues:
Interest Income $ 19,061 $ 19,081
----------- -----------
Expenses:
Asset Management Fee-General Partner 37,944 36,797
General and Administrative:
General Partner 6,366 6,805
Other 8,611 9,636
Amortization 5,229 5,337
----------- -----------
Total Expenses 58,150 58,575
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (39,089) (39,494)
Equity in Losses of Project
Partnerships (428,031) (312,514)
---------- ----------
Net Loss $ (467,120) $ (352,008)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (462,449) $ (348,488)
General Partners (4,671) (3,520)
----------- -----------
$ (467,120) $ (352,008)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (73.94) $ (55.72)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 10 1998 1997
---- ----
Revenues:
Interest Income $ 18,821 $ 18,967
----------- -----------
Expenses:
Asset Management Fee-General Partner 25,575 22,999
General and Administrative:
General Partner 3,979 4,253
Other 5,995 6,290
Amortization 4,218 4,380
----------- -----------
Total Expenses 39,767 37,922
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (20,946) (18,955)
Equity in Losses of Project
Partnerships (276,224) (172,232)
---------- ----------
Net Loss $ (297,170) $ (191,187)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (294,198) $ (189,275)
General Partners (2,972) (1,912)
----------- -----------
$ (297,170) $ (191,187)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (58.34) $ (37.53)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 11 1998 1997
---- ----
Revenues:
Interest Income $ 20,682 $ 19,858
----------- -----------
Expenses:
Asset Management Fee-General Partner 20,460 18,399
General and Administrative:
General Partner 3,183 3,402
Other 5,481 6,030
Amortization 6,222 5,391
----------- -----------
Total Expenses 35,346 33,222
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (14,664) (13,364)
Equity in Losses of Project
Partnerships (75,935) (179,678)
---------- ----------
Net Loss $ (90,599) $ (193,042)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (89,693) $ (191,112)
General Partners (906) (1,930)
----------- -----------
$ (90,599) $ (193,042)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (17.49) $ (37.28)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
TOTAL SERIES 7 - 11 1998 1997
---- ----
Revenues:
Interest Income $ 127,346 $ 127,355
----------- -----------
Expenses:
Asset Management Fee-General Partner 219,444 203,919
General and Administrative:
General Partner 35,277 37,711
Other 49,084 55,913
Amortization 42,520 41,070
----------- -----------
Total Expenses 346,325 338,613
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (218,979) (211,258)
Equity in Losses of Project
Partnerships (2,274,365) (2,183,225)
---------- ----------
Net Loss $(2,493,344) $(2,394,483)
=========== ===========
Allocation of Net Loss:
Limited Partners $(2,468,411) $(2,370,538)
General Partners (24,933) (23,945)
----------- -----------
$(2,493,344) $(2,394,483)
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (714,270) (7,215) (721,485)
----------- ----------- -----------
Balance at December 31,1997 $ 4,311,237 $ (48,652) $ 4,262,585
============ ============ ============
Balance at March 31, 1998 $ 4,024,753 $ (51,546) $ 3,973,207
Net Loss (772,080) (7,799) (779,879)
----------- ----------- -----------
Balance at December 31,1998 $ 3,252,673 $ (59,345) $ 3,193,328
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (927,393) (9,368) (936,761)
----------- ----------- -----------
Balance at December 31,1997 $ 4,300,456 $ (45,072) $ 4,255,384
============ ============ ============
Balance at March 31, 1998 $ 4,177,520 $ (46,313) $ 4,131,207
Net Loss (849,990) (8,586) (858,576)
----------- ----------- -----------
Balance at December 31,1998 $ 3,327,530 $ (54,899) $ 3,272,631
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (348,488) (3,520) (352,008)
----------- ----------- -----------
Balance at December 31,1997 $ 3,829,033 $ (16,714) $ 3,812,319
============ ============ ============
Balance at March 31, 1998 $ 3,670,140 $ (18,319) $ 3,651,821
Net Loss (462,449) (4,671) (467,120)
----------- ----------- -----------
Balance at December 31,1998 $ 3,207,691 $ (22,990) $ 3,184,701
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (189,275) (1,912) (191,187)
----------- ----------- -----------
Balance at December 31,1997 $ 3,749,454 $ (6,753) $ 3,742,701
============ ============ ============
Balance at March 31, 1998 $ 3,716,198 $ (7,089) $ 3,709,109
Net Loss (294,198) (2,972) (297,170)
----------- ----------- -----------
Balance at December 31,1998 $ 3,422,000 $ (10,061) $ 3,411,939
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (191,112) (1,930) (193,042)
----------- ----------- -----------
Balance at December 31,1997 $ 4,261,365 $ (3,411) $ 4,257,954
============ ============ ============
Balance at March 31, 1998 $ 4,271,126 $ (3,313) $ 4,267,813
Net Loss (89,693) (906) (90,599)
----------- ----------- -----------
Balance at December 31,1998 $ 4,181,433 $ (4,219) $ 4,177,214
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (2,370,538) (23,945) (2,394,483)
----------- ----------- -----------
Balance at December 31,1997 $20,451,545 $ (120,602) $20,330,943
============ ============ ============
Balance at March 31, 1998 $19,859,737 $ (126,580) $19,733,157
Net Loss (2,468,411) (24,933) (2,493,344)
----------- ----------- -----------
Balance at December 31,1998 $17,391,326 $ (151,513) $17,239,813
============ ============ ============
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 7 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (779,879) $ (721,485)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 16,653 16,298
Accreted Interest Income on Investments
in Securities (23,584) (24,281)
Equity in Losses of Project Partnerships 706,312 651,486
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 17,788 16,682
----------- -----------
Net Cash Used in Operating Activities (62,710) (61,300)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 19,600 21,520
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 19,600 21,520
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (43,110) (39,780)
Cash and Cash Equivalents at Beginning of
Year 286,106 267,980
----------- -----------
Cash and Cash Equivalents at End of Year $ 242,996 $ 228,200
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 8 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (858,576) $ (936,761)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 10,198 9,664
Accreted Interest Income on Investments
in Securities (21,128) (21,807)
Equity in Losses of Project Partnership 787,863 867,315
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 22,000 26,707
----------- -----------
Net Cash Used in Operating Activities (59,643) (54,882)
----------- -----------
Cash Flows from Investing Activities:
Decrease of Receivable from
Project Partnerships 0 453
Distributions Received from Project
Partnerships 10,080 15,967
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 10,080 16,420
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (49,563) (38,462)
Cash and Cash Equivalents at Beginning of
Year 410,727 396,038
----------- -----------
Cash and Cash Equivalents at End of Year $ 361,164 $ 357,576
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 9 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (467,120) $ (352,008)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 5,229 5,337
Accreted Interest Income on Investments
in Securities (12,788) (13,297)
Equity in Losses of Project Partnerships 428,031 312,514
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 17,185 19,449
----------- -----------
Net Cash Used in Operating Activities (29,463) (28,005)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 10,629 10,097
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 10,629 10,097
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (18,834) (17,908)
Cash and Cash Equivalents at Beginning of
Year 180,104 161,813
----------- -----------
Cash and Cash Equivalents at End of Year $ 161,270 $ 143,905
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 10 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (297,170) $ (191,187)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 4,218 4,380
Accreted Interest Income on Investments
in Securities (11,783) (11,938)
Equity in Losses of Project Partnerships 276,224 172,232
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (4,128) (3,061)
----------- -----------
Net Cash Used in Operating Activities (32,639) (29,574)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 7,217 3,805
Increase (Decrease) in Payable -
Project Partnerships 0 (7,712)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 7,217 (3,907)
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (25,422) (33,481)
Cash and Cash Equivalents at Beginning of
Year 202,435 199,743
----------- -----------
Cash and Cash Equivalents at End of Year $ 177,013 $ 166,262
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 11 1998 1997
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (90,599) $ (193,042)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 6,222 5,391
Accreted Interest Income on Investments
in Securities (13,456) (13,744)
Equity in Losses of Project Partnerships 75,935 179,678
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (5,024) 337
----------- ----------
Net Cash Used in Operating Activities (26,922) (21,380)
----------- ----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 5,587 4,979
----------- ----------
Net Cash Provided by (Used in)
Investing Activities 5,587 4,979
----------- ----------
Increase (Decrease) in Cash and Cash
Equivalents (21,335) (16,401)
Cash and Cash Equivalents at Beginning of
Year 208,198 169,385
----------- ----------
Cash and Cash Equivalents at End of Year $ 186,863 $ 152,984
=========== ==========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND II LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
TOTAL SERIES 7 - 11 1998 1997
- ------------------- ---- ----
Cash Flows from Operating Activities:
Net Loss $(2,493,344) $(2,394,483)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 42,520 41,070
Accreted Interest Income on Investments
in Securities (82,739) (85,067)
Equity in Losses of Project Partnerships 2,274,365 2,183,225
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 47,821 60,114
----------- -----------
Net Cash Used in Operating Activities (211,377) (195,141)
----------- -----------
Cash Flows from Investing Activities:
(Increase) Decrease in Receivable from
Project Partnerships 0 453
Distributions Received from Project
Partnerships 53,113 56,368
Increase (Decrease in Payable -
Project Partnerships 0 (7,712)
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 53,113 49,109
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (158,264) (146,032)
Cash and Cash Equivalents at Beginning of
Year 1,287,570 1,194,959
----------- -----------
Cash and Cash Equivalents at End of Year $ 1,129,306 $ 1,048,927
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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 December 31, 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 December 31, 1998 Balance Sheet includes Investment in Securities
consisting of U.S. Treasury Security Strips which represents their cost,
plus accreted interest income of $165,693 for Series 7, $140,532 for Series
8, $77,476 for Series 9, $66,060 for Series 10 and $72,822 for Series 11.
Gross Unrealized
Estimated Market Cost Plus Gains and
Value Accreted Interest (Losses)
----------------- ----------------- ----------------
Series 7 $ 528,881 $ 475,479 $ 53,402
Series 8 491,458 449,001 42,457
Series 9 319,531 299,772 19,759
Series 10 267,848 241,173 26,675
Series 11 296,215 258,018 38,197
As of December 31, 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 $ 49,844 $ 44,811 $ 28,884
After 1 year through 5 years 196,935 183,305 113,988
After 5 years through 10 years 228,700 220,885 132,222
Over 10 years 0 0 24,678
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 475,479 $ 449,001 $ 299,772
========== ========== ==========
Series 10 Series 11 Total
-------- -------- --------
Due with 1 year $ 23,916 $ 22,896 $ 170,351
After 1 year through 5 years 86,568 89,921 670,717
After 5 years through 10 years 94,726 106,574 783,107
Over 10 years 35,963 38,627 99,268
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 241,173 $ 258,018 $1,723,443
========== ========== ==========
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 nine months ended December 31 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 $ 66,324 $ 59,796
Series 8 69,141 65,928
Series 9 37,944 36,797
Series 10 25,575 22,999
Series 11 20,460 18,399
-------- --------
Total $219,444 $203,919
======== ========
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 $ 10,344 $ 11,059
Series 8 11,405 12,192
Series 9 6,366 6,805
Series 10 3,979 4,253
Series 11 3,183 3,402
-------- --------
Total $ 35,277 $ 37,711
======== ========
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of December 31, 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 DECEMBER 31, 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) (5,489,238) (4,782,926)
Cumulative distributions received from
Project Partnerships (120,864) (101,264)
----------- -----------
Investment in Project Partnerships before
adjustment 2,121,987 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 (140,035) (123,382)
------------ ------------
Investments in Project Partnerships $ 2,775,287 $ 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 $113,211 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 December 31, 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 DECEMBER 31, 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) (5,159,952) (4,372,089)
Cumulative distributions received from
Project Partnerships (94,802) (84,722)
----------- -----------
Investment in Project Partnerships before
adjustment 2,331,351 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 (81,036) (70,838)
------------ ------------
Investments in Project Partnerships $ 2,800,088 $ 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 $122,624 for the period ended December 31, 1998 and $79,383 for the year
ended March 31, 1998 are not included.
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 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 DECEMBER 31, 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 (2,139,890) (1,711,859)
Cumulative distributions received from
Project Partnerships (65,263) (54,634)
----------- ----------
Investment in Project Partnerships before
adjustment 2,708,963 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 (33,562) (28,333)
------------ ------------
Investments in Project Partnerships $ 2,919,488 $ 3,363,377
============ ============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 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 DECEMBER 31, 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 (951,526) (675,302)
Cumulative distributions received from
Project Partnerships (66,571) (59,354)
----------- ----------
Investment in Project Partnerships before
adjustment 2,896,575 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 (28,303) (24,085)
------------- ------------
Investments in Project Partnerships $ 3,065,010 $ 3,352,669
============= ============
<PAGE>
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 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 DECEMBER 31, 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 (565,978) (490,043)
Cumulative distributions received from
Project Partnerships (49,396) (43,809)
----------- -----------
Investment in Project Partnerships before
adjustment 3,512,668 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 (29,016) (22,794)
------------ -----------
Investments in Project Partnerships $ 3,773,987 $ 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 DECEMBER 31, 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) (14,306,584) (12,032,219)
Cumulative distributions received from
Project Partnerships (396,896) (343,783)
------------ -----------
Investment in Project Partnerships before
adjustment 13,571,544 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 (311,952) (269,432)
------------ ------------
Investments in Project Partnerships $15,333,860 $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
September 30, of each year:
1998 1997
SERIES 7 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,995,833 $ 2,686,219
Investment properties, net 36,860,307 38,308,568
Other assets 6,884 90,325
------------ ------------
Total assets $39,863,024 $41,085,112
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,032,783 $ 1,128,853
Long-term debt 36,833,524 36,925,139
------------ ------------
Total liabilities 37,866,307 38,053,992
------------ ------------
Partners' equity
Limited Partner 1,974,116 3,029,581
General Partners 22,601 1,539
----------- -----------
Total Partners' equity 1,996,717 3,031,120
----------- -----------
Total liabilities and partners' equity $39,863,024 $41,085,112
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,960,608 $ 3,245,082
Expenses: ------------ ------------
Operating expenses 1,851,193 1,798,319
Interest expense 683,784 945,805
Depreciation and amortization 1,170,224 1,189,126
------------ ------------
Total expenses 3,705,201 3,933,250
------------ ------------
Net loss $ (744,593) $ (688,168)
============ ============
Other partners' share of net loss $ (7,446) $ (6,882)
============ ============
Partnerships' share of net loss $ (737,147) $ (681,286)
Suspended loss 30,835 29,800
------------ ------------
Equity in Losses of Project Partnerships $ (706,312) $ (651,486)
============ ============
<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
September 30, of each year:
1998 1997
SERIES 8 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,543,207 $ 2,281,379
Investment properties, net 39,606,503 41,162,473
Other assets 49,859 60,924
------------ ------------
Total assets $42,199,569 $43,504,776
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,210,173 $ 1,303,061
Long-term debt 38,844,252 39,022,328
------------ ------------
Total liabilities 40,054,425 40,325,389
------------ ------------
Partners' equity
Limited Partner 2,258,796 3,237,839
General Partners (113,652) (58,452)
----------- -----------
Total Partners' equity 2,145,144 3,179,387
----------- -----------
Total liabilities and partners' equity $42,199,569 $43,504,776
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 3,027,162 $ 3,064,262
Expenses: ------------ ------------
Operating expenses 1,909,969 1,875,622
Interest expense 736,831 843,794
Depreciation and amortization 1,219,861 1,228,622
------------ ------------
Total expenses 3,866,661 3,948,038
------------ ------------
Net loss $ (839,499) $ (883,776)
============ ============
Other partners' share of net loss $ (8,395) $ (8,838)
============ ============
Partnerships' share of net loss $ (831,104) $ (874,938)
Suspended loss 43,241 7,623
------------ ------------
Equity in Losses of Project Partnerships $ (787,863) $ (867,315)
============ ============
<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
September 30, of each year:
1998 1997
SERIES 9 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,622,538 $ 1,504,001
Investment properties, net 21,987,585 22,877,452
Other assets 8,552 8,094
------------ ------------
Total assets $23,618,675 $24,389,547
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 418,611 $ 482,877
Long-term debt 20,575,863 20,643,135
------------ ------------
Total liabilities 20,994,474 21,126,012
------------ ------------
Partners' equity
Limited Partner 2,710,554 3,298,749
General Partners (86,353) (35,214)
----------- -----------
Total Partners' equity 2,624,201 3,263,535
----------- -----------
Total liabilities and partners' equity $23,618,675 $24,389,547
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,588,594 $ 1,679,490
Expenses: ------------ ------------
Operating expenses 961,715 870,225
Interest expense 383,094 473,440
Depreciation and amortization 676,140 651,496
------------ ------------
Total expenses 2,020,949 1,995,161
------------ ------------
Net loss $ (432,355) $ (315,671)
============ ============
Other partners' share of net loss $ (4,324) $ (3,157)
============ ============
Partnerships' share of net loss $ (428,031) $ (312,514)
Suspended loss 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (428,031) $ (312,514)
============ ============
<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
September 30, of each year:
1998 1997
SERIES 10 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,261,888 $ 1,150,150
Investment properties, net 15,345,920 15,823,792
Other assets 13,962 16,808
------------ ------------
Total assets $16,621,770 $16,990,750
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 325,022 $ 254,926
Long-term debt 13,477,037 13,537,580
------------ ------------
Total liabilities 13,802,059 13,792,506
------------ ------------
Partners' equity
Limited Partner 2,904,977 3,224,137
General Partners (85,266) (25,893)
----------- -----------
Total Partners' equity 2,819,711 3,198,244
----------- -----------
Total liabilities and partners' equity $16,621,770 $16,990,750
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,063,786 $ 1,031,627
Expenses: ------------ ------------
Operating expenses 692,735 602,548
Interest expense 270,405 218,730
Depreciation and amortization 379,660 384,321
------------ ------------
Total expenses 1,342,800 1,205,599
------------ ------------
Net loss $ (279,014) $ (173,972)
============ ============
Other partners' share of net loss $ (2,790) $ (1,740)
============ ============
Partnerships' share of net loss $ (276,224) $ (172,232)
Suspended loss 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (276,224) $ (172,232)
============ ============
<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
September 30, of each year:
1998 1997
SERIES 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,078,922 $ 839,203
Investment properties, net 13,622,732 14,105,776
Other assets 9,899 43,818
------------ ------------
Total assets $14,711,553 $14,988,797
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 303,521 $ 340,223
Long-term debt 10,808,677 10,918,135
------------ ------------
Total liabilities 11,112,198 11,258,358
------------ ------------
Partners' equity
Limited Partner 3,527,740 3,624,208
General Partners 71,615 106,231
----------- -----------
Total Partners' equity 3,599,355 3,730,439
----------- -----------
Total liabilities and partners' equity $14,711,553 $14,988,797
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,102,782 $ 1,093,944
Expenses: ------------ ------------
Operating expenses 548,853 524,330
Interest expense 252,526 356,593
Depreciation and amortization 378,105 394,514
------------ ------------
Total expenses 1,179,484 1,275,437
------------ ------------
Net loss $ (76,702) $ (181,493)
============ ============
Other partners' share of net loss $ (767) $ (1,815)
============ ============
Partnerships' share of net loss $ (75,935) $ (179,678)
Suspended loss 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (75,935) $ (179,678)
============ ============
<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
September 30, of each year:
1998 1997
TOTAL SERIES 7 - 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 9,502,388 $ 8,460,952
Investment properties, net 127,423,047 132,278,061
Other assets 89,156 219,969
------------ ------------
Total assets $137,014,591 $140,958,982
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 3,290,110 $ 3,509,940
Long-term debt 120,539,353 121,046,317
------------ ------------
Total liabilities 123,829,463 124,556,257
------------ ------------
Partners' equity
Limited Partner 13,376,183 16,414,514
General Partners (191,055) (11,789)
----------- -----------
Total Partners' equity 13,185,128 16,402,725
----------- -----------
Total liabilities and partners' equity $137,014,591 $140,958,982
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 9,742,932 $ 10,114,405
Expenses: ------------ ------------
Operating expenses 5,964,465 5,671,044
Interest expense 2,326,640 2,838,362
Depreciation and amortization 3,823,990 3,848,079
------------ ------------
Total expenses 12,115,095 12,357,485
------------ ------------
Net loss $ (2,372,163) $ (2,243,080)
============ ============
Other partners' share of net loss $ (23,722) $ (22,432)
============ ============
Partnerships' share of net loss $ (2,348,441) $ (2,220,648)
Suspended losses 74,076 37,423
------------ ------------
Equity in Losses of Project Partnerships $ (2,274,365) $ (2,183,225)
============ ============
<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 nine and three
months ended December 31, 1998 and December 31, 1997. The General and
Administrative expenses - General Partner and General and Administrative
expenses - Other for the nine and three months ended December 31, 1998 are
comparable to December 31, 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 increased from $651,486 for the nine months ended
December 31, 1997 to $706,312 for the nine months ended December 31, 1998.
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 December 31, 1998, the Series had $242,996 of short-term investments
(Cash and Cash Equivalents). It also had $475,479 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
$779,879 for the nine months ended December 31, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $706,312 and the
changes in operating assets and liabilities, net cash used in operating
activities was $62,710 as a result of paying Asset Management Fees of
$41,000. Cash provided by investing activities totaled $19,610, 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 decreased from $867,315 for the nine months ended
December 31, 1997 to $787,863 for the nine months ended December 31, 1998.
At December 31, 1998, the Series had $361,164 of short-term investments
(Cash and Cash Equivalents). It also had $449,001 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
$858,576 for the nine months ended December 31, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $787,863 and the
changes in operating assets and liabilities, net cash used in operating
activities was $59,643 as a result of paying Asset Management Fees of
$39,000. Cash provided by investing activities totaled $10,080, 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 increased from $312,514 for the nine months ended December 31,
1997 to $428,031 for the nine months ended December 31, 1998. At December
31, 1998, the Series had $161,270 of short-term investments (Cash and Cash
Equivalents). It also had $299,772 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
$467,120 for the nine months ended December 31, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $428,031 and the
changes in operating assets and liabilities, net cash used in operating
activities was $29,463 as a result of paying Asset Management Fees of
$16,000. Cash provided by investing activities totaled $10,629, 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 increased from $172,232 for the nine months ended December 31,
1997 to $276,224 for the nine months ended December 31, 1998. At December
31, 1998, the Series had $177,013 of short-term investments (Cash and Cash
Equivalents). It also had $241,173 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
$291,170 for the nine months ended December 31, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $276,224 and the
changes in operating assets and liabilities, net cash used in operating
activities was $32,639 as a result of paying Asset Management Fees of
$26,000. Cash provided by investing activities totaled $7,217, 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 $179,678 for the nine months ended December 31,
1997 to $75,935 for the nine months ended December 31, 1998. At December
31, 1998, the Series had $186,863 of short-term investments (Cash and Cash
Equivalents). It also had $258,018 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
$90,599 for the nine months ended December 31, 1998. However, after
adjusting for Equity in Losses of Project Partnerships of $75,935 and the
changes in operating assets and liabilities, net cash used in operating
activities was $26,922 as a result of paying Asset Management Fees of
$23,000. Cash provided by investing activities totaled $5,587, 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: February 10, 1999 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: February 10, 1999 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 DECEMBER 31, 1998.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> DEC-31-1998
<CASH> 1,129,306
<SECURITIES> 1,723,443
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,299,657
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 18,186,609
<CURRENT-LIABILITIES> 174,960
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 17,239,813
<TOTAL-LIABILITY-AND-EQUITY> 18,186,609
<SALES> 0
<TOTAL-REVENUES> 127,346
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 346,325
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,493,344)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,493,344)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,493,344)
<EPS-PRIMARY> (67.08)<F1>
<EPS-DILUTED> (67.08)<F1>
<FN>
<F1>EPS IS NOT LOSS PER $1,000 LIMITED PARTNERSHIP UNIT
</FN>
</TABLE>
