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, 1999
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 September 30, 1999
Units of Limited Partnership
Interest: $1,000 per unit 33,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1998 Form 10-K, filed with the
Securities and Exchange Commission on July 14, 1999
Parts III and IV - Form S-11 Registration Statement
and all amendments and supplements thereto
File No. 33-44238
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,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 261,927 $ 299,313
Investments in Securities 51,970 50,412
------------ ------------
Total Current Assets 313,897 349,725
Investments in Securities 396,221 382,611
Investments in Project Partnerships, Net 2,319,008 2,749,505
----------- -----------
Total Assets $ 3,029,126 $ 3,481,841
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 51,893 $ 52,109
----------- -----------
Total Current Liabilities 51,893 52,109
----------- -----------
Long-Term Liabilities:
Payable to General Partners 272,050 268,953
----------- -----------
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 30,1999 and March 31,1999) 2,769,409 3,220,449
General Partners (64,226) (59,670)
----------- -----------
Total Partners' Equity $ 2,705,183 $ 3,160,779
----------- -----------
Total Liabilities and Partners' Equity $ 3,029,126 $ 3,481,841
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 8 SEPTEMBER 30, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 372,398 $ 411,602
Investments in Securities 47,086 45,734
------------ ------------
Total Current Assets 419,484 457,336
Investments in Securities 377,359 365,098
Investments in Project Partnerships, Net 2,153,603 2,612,574
----------- -----------
Total Assets $ 2,950,446 $ 3,435,008
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 42,464 $ 42,668
----------- -----------
Total Current Liabilities 42,464 42,668
----------- -----------
Long-Term Liabilities:
Payable to General Partners 322,522 316,373
----------- -----------
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, 1999 and March 31,1999) 2,647,231 3,132,833
General Partners (61,771) (56,866)
----------- -----------
Total Partners' Equity $ 2,585,460 $ 3,075,967
----------- -----------
Total Liabilities and Partners' Equity $ 2,950,446 $ 3,435,008
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 9 SEPTEMBER 30, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 176,059 $ 195,618
Investments in Securities 30,457 29,663
------------ ------------
Total Current Assets 206,516 225,281
Investments in Securities 252,669 245,245
Investments in Project Partnerships, Net 2,505,682 2,818,653
----------- -----------
Total Assets $ 2,964,867 $ 3,289,179
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 24,277 $ 24,561
----------- -----------
Total Current Liabilities 24,277 24,561
----------- -----------
Long-Term Liabilities:
Payable to General Partners 191,408 183,028
----------- -----------
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, 1999 and March 31,1999) 2,776,527 3,105,611
General Partners (27,345) (24,021)
----------- -----------
Total Partners' Equity $ 2,749,182 $ 3,081,590
----------- -----------
Total Liabilities and Partners' Equity $ 2,964,867 $ 3,289,179
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 10 SEPTEMBER 30, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 190,062 $ 216,566
Investments in Securities 23,565 22,855
------------ ------------
Total Current Assets 213,627 239,421
Investments in Securities 204,941 198,073
Investments in Project Partnerships, Net 2,927,887 3,086,492
----------- -----------
Total Assets $ 3,346,455 $ 3,523,986
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 27,897 $ 28,101
----------- -----------
Total Current Liabilities 27,897 28,101
----------- -----------
Long-Term Liabilities:
Payable to General Partners 41,615 51,557
----------- -----------
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, 1999 and March 31,1999) 3,288,354 3,454,065
General Partners (11,411) (9,737)
----------- -----------
Total Partners' Equity $ 3,276,943 $ 3,444,328
----------- -----------
Total Liabilities and Partners' Equity $ 3,346,455 $ 3,523,986
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 11 SEPTEMBER 30, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 193,961 $ 223,024
Investments in Securities 23,486 22,713
------------ ------------
Total Current Assets 217,447 245,737
Investments in Securities 224,681 216,679
Investments in Project Partnerships, Net 3,625,800 3,701,295
----------- -----------
Total Assets $ 4,067,928 $ 4,163,711
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 27,552 $ 27,805
----------- -----------
Total Current Liabilities 27,552 27,805
----------- -----------
Long-Term Liabilities:
Payable to General Partners 5,572 20,638
----------- -----------
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 June 30, 1999 and March 31,1999) 4,040,447 4,120,106
General Partners (5,643) (4,838)
----------- -----------
Total Partners' Equity $ 4,034,804 $ 4,115,268
----------- -----------
Total Liabilities and Partners' Equity $ 4,067,928 $ 4,163,711
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
TOTAL SERIES 7 - 11 SEPTEMBER 30, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,194,407 $ 1,346,123
Investments in Securities 176,564 171,377
------------ ------------
Total Current Assets 1,370,971 1,517,500
Investments in Securities 1,455,871 1,407,706
Investments in Project Partnerships, Net 13,531,980 14,968,519
----------- -----------
Total Assets $16,358,822 $17,893,725
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 174,083 $ 175,244
----------- -----------
Total Current Liabilities 174,083 175,244
----------- -----------
Long-Term Liabilities:
Payable to General Partners 833,167 840,549
----------- -----------
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, 1999 and March 31,1999) 15,521,968 17,033,064
General Partners (170,396) (155,132)
----------- -----------
Total Partners' Equity $15,351,572 $16,877,932
----------- -----------
Total Liabilities and Partners' Equity $16,358,822 $17,893,725
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 7 1999 1998
---- ----
Revenues:
Interest Income $ 10,835 $ 11,391
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,052 22,108
General and Administrative:
General Partner 5,109 4,734
Other 8,969 8,693
Amortization 4,368 5,551
----------- -----------
Total Expenses 40,498 41,086
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (29,663) (29,695)
Equity in Losses of Project
Partnerships (254,678) (274,517)
---------- ----------
Net Loss $ (284,341) $ (304,212)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (281,498) $ (301,170)
General Partners (2,843) (3,042)
----------- -----------
$ (284,341) $ (304,212)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (27.08) $ (28.97)
============ ============
Number of Limited Partnership Units
Outstanding 10,395 10,395
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 8 1999 1998
---- ----
Revenues:
Interest Income $ 11,285 $ 11,954
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,983 23,047
General and Administrative:
General Partner 5,633 5,220
Other 9,664 9,650
Amortization 3,260 3,853
----------- -----------
Total Expenses 41,540 41,770
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (30,255) (29,816)
Equity in Losses of Project
Partnerships (232,401) (264,536)
---------- ----------
Net Loss $ (262,656) $ (294,352)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (260,030) $ (291,408)
General Partners (2,626) (2,944)
----------- -----------
$ (262,656) $ (294,352)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (26.06) $ (29.20)
============ ============
Number of Limited Partnership Units
Outstanding 9,980 9,980
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 9 1999 1998
---- ----
Revenues:
Interest Income $ 6,234 $ 6,438
----------- -----------
Expenses:
Asset Management Fee-General Partner 12,615 12,648
General and Administrative:
General Partner 3,144 2,913
Other 5,564 5,219
Amortization 1,743 1,743
----------- -----------
Total Expenses 23,066 22,523
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (16,832) (16,085)
Equity in Losses of Project
Partnerships (170,140) (124,372)
---------- ----------
Net Loss $ (186,972) $ (140,457)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (185,102) $ (139,052)
General Partners (1,870) (1,405)
----------- -----------
$ (186,972) $ (140,457)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (29.60) $ (22.23)
============ ============
Number of Limited Partnership Units
Outstanding 6,254 6,254
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 10 1999 1998
---- ----
Revenues:
Interest Income $ 6,119 $ 6,407
----------- -----------
Expenses:
Asset Management Fee-General Partner 8,607 8,525
General and Administrative:
General Partner 1,965 1,821
Other 3,703 3,529
Amortization 1,406 1,406
----------- -----------
Total Expenses 15,681 15,281
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (9,562) (8,874)
Equity in Losses of Project
Partnerships (102,323) (64,109)
---------- ----------
Net Loss $ (111,885) $ (72,983)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (110,766) $ (72,253)
General Partners (1,119) (730)
----------- -----------
$ (111,885) $ (72,983)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (21.96) $ (14.33)
============ ============
Number of Limited Partnership Units
Outstanding 5,043 5,043
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 11 1999 1998
---- ----
Revenues:
Interest Income $ 6,752 $ 6,990
----------- -----------
Expenses:
Asset Management Fee-General Partner 6,930 6,820
General and Administrative:
General Partner 1,572 1,456
Other 3,246 3,192
Amortization 2,074 2,074
----------- -----------
Total Expenses 13,822 13,542
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (7,070) (6,552)
Equity in Losses of Project
Partnerships (30,224) 17,656
---------- ----------
Net Loss $ (37,294) $ 11,104
=========== ===========
Allocation of Net Loss:
Limited Partners $ (36,921) $ 10,993
General Partners (373) 111
----------- -----------
$ (37,294) $ 11,104
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (7.20) $ 2.14
============ ============
Number of Limited Partnership Units
Outstanding 5,127 5,127
============ ============
See accompanying notes to financial statements.
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 1999 1998
---- ----
Revenues:
Interest Income $ 41,225 $ 43,180
----------- -----------
Expenses:
Asset Management Fee-General Partner 73,187 73,148
General and Administrative:
General Partner 17,423 16,144
Other 31,146 30,283
Amortization 12,851 14,627
----------- -----------
Total Expenses 134,607 134,202
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (93,382) (91,022)
Equity in Losses of Project
Partnerships (789,766) (709,878)
---------- ----------
Net Loss $ (883,148) $ (800,900)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (874,316) $ (792,891)
General Partners (8,832) (8,009)
----------- -----------
$ (883,148) $ (800,900)
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 7 1999 1998
---- ----
Revenues:
Interest Income $ 21,505 $ 22,571
----------- -----------
Expenses:
Asset Management Fee-General Partner 44,104 44,216
General and Administrative:
General Partner 8,045 8,016
Other 12,007 11,520
Amortization 8,736 11,102
----------- -----------
Total Expenses 72,892 74,854
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (51,387) (52,283)
Equity in Losses of Project
Partnerships (404,209) (492,501)
---------- ----------
Net Loss $ (455,596) $ (544,784)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (451,040) $ (539,336)
General Partners (4,556) (5,448)
----------- -----------
$ (455,596) $ (544,784)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (43.39) $ (51.88)
============ ============
Number of Limited Partnership Units
Outstanding 10,395 10,395
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 8 1999 1998
---- ----
Revenues:
Interest Income $ 22,360 $ 23,842
----------- -----------
Expenses:
Asset Management Fee-General Partner 45,966 46,094
General and Administrative:
General Partner 8,870 8,838
Other 13,033 12,969
Amortization 6,520 6,345
----------- -----------
Total Expenses 74,389 74,246
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (52,029) (50,404)
Equity in Losses of Project
Partnerships (438,478) (530,733)
---------- ----------
Net Loss $ (490,507) $ (581,137)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (485,602) $ (575,326)
General Partners (4,905) (5,811)
----------- -----------
$ (490,507) $ (581,137)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (48.66) $ (57.65)
============ ============
Number of Limited Partnership Units
Outstanding 9,980 9,980
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 9 1999 1998
---- ----
Revenues:
Interest Income $ 12,374 $ 12,826
----------- -----------
Expenses:
Asset Management Fee-General Partner 25,230 25,296
General and Administrative:
General Partner 4,951 4,933
Other 7,475 7,121
Amortization 3,486 3,486
----------- -----------
Total Expenses 41,142 40,836
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (28,768) (28,010)
Equity in Losses of Project
Partnerships (303,640) (258,084)
---------- ----------
Net Loss $ (332,408) $ (286,094)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (329,084) $ (283,233)
General Partners (3,324) (2,861)
----------- -----------
$ (332,408) $ (286,094)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (52.62) $ (45.29)
============ ============
Number of Limited Partnership Units
Outstanding 6,254 6,254
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 10 1999 1998
---- ----
Revenues:
Interest Income $ 12,128 $ 12,702
----------- -----------
Expenses:
Asset Management Fee-General Partner 17,214 17,050
General and Administrative:
General Partner 3,094 3,083
Other 5,091 4,974
Amortization 2,812 2,812
----------- -----------
Total Expenses 28,211 27,919
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (16,083) (15,217)
Equity in Losses of Project
Partnerships (151,302) (120,252)
---------- ----------
Net Loss $ (167,385) $ (135,469)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (165,711) $ (134,114)
General Partners (1,674) (1,355)
----------- -----------
$ (167,385) $ (135,469)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (32.86) $ (26.59)
============ ============
Number of Limited Partnership Units
Outstanding 5,043 5,043
============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 11 1999 1998
---- ----
Revenues:
Interest Income $ 13,418 $ 13,904
----------- -----------
Expenses:
Asset Management Fee-General Partner 13,860 13,640
General and Administrative:
General Partner 2,475 2,466
Other 4,546 4,365
Amortization 4,148 4,148
----------- -----------
Total Expenses 25,029 24,619
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (11,611) (10,715)
Equity in Losses of Project
Partnerships (68,853) (42,086)
---------- ----------
Net Loss $ (80,464) $ (52,801)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (79,659) $ (52,273)
General Partners (805) (528)
----------- -----------
$ (80,464) $ (52,801)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (15.54) $ (10.20)
============ ============
Number of Limited Partnership Units
Outstanding 5,127 5,127
============ ============
See accompanying notes to financial statements.
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 1999 1998
---- ----
Revenues:
Interest Income $ 81,785 $ 85,845
----------- -----------
Expenses:
Asset Management Fee-General Partner 146,374 146,296
General and Administrative:
General Partner 27,435 27,336
Other 42,152 40,949
Amortization 25,702 27,893
----------- -----------
Total Expenses 241,663 242,474
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (159,878) (156,629)
Equity in Losses of Project
Partnerships (1,366,482) (1,443,656)
---------- ----------
Net Loss $(1,526,360) $(1,600,285)
=========== ===========
Allocation of Net Loss:
Limited Partners $(1,511,096) $(1,584,282)
General Partners (15,264) (16,003)
----------- -----------
$(1,526,360) $(1,600,285)
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:
Limited General
SERIES 7 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 1999 $ 3,220,449 $ (59,670) $ 3,160,779
Net Loss (451,040) (4,556) (455,596)
----------- ----------- -----------
Balance at September 30,1999 $ 2,769,409 $ (64,226) $ 2,705,183
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:
Limited General
SERIES 8 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 1999 $ 3,132,833 $ (56,866) $ 3,075,967
Net Loss (485,602) (4,905) (490,507)
----------- ----------- -----------
Balance at September 30,1999 $ 2,647,231 $ (61,771) $ 2,585,460
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:
Limited General
SERIES 9 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 1999 $ 3,105,611 $ (24,021) $ 3,081,590
Net Loss (329,084) (3,324) (332,408)
----------- ----------- -----------
Balance at September 30,1999 $ 2,776,527 $ (27,345) $ 2,749,182
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:
Limited General
SERIES 10 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 1999 $ 3,454,065 $ (9,737) $ 3,444,328
Net Loss (165,711) (1,674) (167,385)
----------- ----------- -----------
Balance at September 30,1999 $ 3,288,354 $ (11,411) $ 3,276,943
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:
Limited General
SERIES 11 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 1999 $ 4,120,106 $ (4,838) $ 4,115,268
Net Loss (79,659) (805) (80,464)
----------- ----------- -----------
Balance at September 30,1999 $ 4,040,447 $ (5,643) $ 4,034,804
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998:
Limited General
TOTAL SERIES 7 - 11 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 19999 $17,033,064 $ (155,132) $16,877,932
Net Loss (1,511,096) (15,264) (1,526,360)
----------- ----------- -----------
Balance at September 30,1999 $15,521,968 $ (170,396) $15,351,572
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 7 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (455,596) $ (544,784)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 8,736 11,102
Accreted Interest Income on Investments
in Securities (15,167) (15,586)
Equity in Losses of Project Partnerships 404,209 492,501
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 2,881 (1,886)
----------- -----------
Net Cash Used in Operating Activities (54,937) (58,653)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 17,551 17,019
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 17,551 17,019
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (37,386) (41,634)
Cash and Cash Equivalents at Beginning of
Year 299,313 286,106
----------- -----------
Cash and Cash Equivalents at End of Year $ 261,927 $ 244,472
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 8 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (490,507) $ (581,137)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 6,520 6,345
Accreted Interest Income on Investments
in Securities (13,612) (13,971)
Equity in Losses of Project Partnership 438,478 530,733
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 5,944 1,868
----------- -----------
Net Cash Used in Operating Activities (53,177) (56,162)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 13,973 8,138
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 13,973 8,138
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (39,204) (48,024)
Cash and Cash Equivalents at Beginning of
Year 411,602 410,727
----------- -----------
Cash and Cash Equivalents at End of Year $ 372,398 $ 362,703
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 9 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (332,408) $ (286,094)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 3,486 3,486
Accreted Interest Income on Investments
in Securities (8,219) (8,463)
Equity in Losses of Project Partnerships 303,640 258,084
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 8,096 5,917
----------- -----------
Net Cash Used in Operating Activities (25,405) (27,070)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 5,846 7,364
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 5,846 7,364
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (19,559) (19,706)
Cash and Cash Equivalents at Beginning of
Year 195,618 180,104
----------- -----------
Cash and Cash Equivalents at End of Year $ 176,059 $ 160,398
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 10 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (167,385) $ (135,469)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 2,812 2,812
Accreted Interest Income on Investments
in Securities (7,576) (7,775)
Equity in Losses of Project Partnerships 151,302 120,252
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (10,146) (11,783)
----------- -----------
Net Cash Used in Operating Activities (30,993) (31,963)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 4,489 6,545
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 4,489 6,545
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (26,504) (25,418)
Cash and Cash Equivalents at Beginning of
Year 216,566 202,435
----------- -----------
Cash and Cash Equivalents at End of Year $ 190,062 $ 177,017
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 11 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (80,464) $ (52,801)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 4,148 4,148
Accreted Interest Income on Investments
in Securities (8,774) (8,891)
Equity in Losses of Project Partnerships 68,853 42,086
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (15,318) (11,244)
----------- -----------
Net Cash Used in Operating Activities (31,555) (26,702)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 2,492 2,182
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 2,492 2,182
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (29,063) (24,520)
Cash and Cash Equivalents at Beginning of
Year 223,024 208,198
----------- -----------
Cash and Cash Equivalents at End of Year $ 193,961 $ 183,678
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
TOTAL SERIES 7 - 11 1999 1998
- ------------------- ---- ----
Cash Flows from Operating Activities:
Net Loss $(1,526,360) $(1,600,285)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 25,702 27,893
Accreted Interest Income on Investments
in Securities (53,348) (54,686)
Equity in Losses of Project Partnerships 1,366,482 1,443,656
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (8,543) (17,128)
----------- -----------
Net Cash Used in Operating Activities (196,067) (200,550)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 44,351 41,248
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 44,351 41,248
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (151,716) (159,302)
Cash and Cash Equivalents at Beginning of
Year 1,346,123 1,287,570
----------- -----------
Cash and Cash Equivalents at End of Year $ 1,194,407 $ 1,128,268
=========== ===========
See accompanying notes to financial statements.
<PAGE>
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
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, 1999, 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, because management believes that Gateway does not
have a
majority control of the major operating and financial policies of the
Project Partnerships in which it invests, 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, 1999. 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, 1999 Balance Sheet includes Investment in Securities
consisting of U.S. Treasury Security Strips which represents their cost,
plus accreted interest income of $172,847 for Series 7, $148,273 for Series
8, $83,061 for Series 9, $71,338 for Series 10 and $79,846 for Series 11.
Gross Unrealized
Estimated Market Cost Plus Gains and
Value Accreted Interest (Losses)
----------------- ----------------- ----------------
Series 7 $ 469,530 $ 448,191 $ 21,339
Series 8 437,559 424,445 13,114
Series 9 283,563 283,126 437
Series 10 236,789 228,506 8,283
Series 11 264,847 248,167 16,680
As of September 30, 1999, the cost and accreted interest of debt
securities by contractual maturities is as follows:
Series 7 Series 8 Series 9
-------- -------- --------
Due with 1 year $ 51,970 $ 47,086 $ 30,457
After 1 year through 5 years 205,022 192,172 116,975
After 5 years through 10 years 191,199 185,187 135,694
Over 10 years 0 0 0
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 448,191 $ 424,445 $ 283,126
========== ========== ==========
Series 10 Series 11 Total
-------- -------- --------
Due with 1 year $ 23,565 $ 23,486 $ 176,564
After 1 year through 5 years 88,270 94,648 697,087
After 5 years through 10 years 97,417 109,933 719,430
Over 10 years 19,254 20,100 39,354
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 228,506 $ 248,167 $1,632,435
========== ========== ==========
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 1999 and 1998 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.
1999 1998
----- -----
Series 7 $ 44,104 $ 44,216
Series 8 45,966 46,094
Series 9 25,230 25,296
Series 10 17,214 17,050
Series 11 13,860 13,640
-------- --------
Total $146,374 $146,296
======== ========
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.
Series 7 $ 8,045 $ 8,016
Series 8 8,870 8,838
Series 9 4,951 4,933
Series 10 3,094 3,083
Series 11 2,475 2,466
-------- --------
Total $ 27,435 $ 27,336
======== ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of September 30, 1999, the Partnership had acquired a 99% interest in
the profits, losses and tax credits as a limited partner in 39 Project
Partnerships which own and operate government assisted multi-family housing
complexes. Cash flows from operations are allocated according to each
Partnership agreement. Upon dissolution proceeds will be distributed
according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
SERIES 7 SEPTEMBER 30, MARCH 31,
1999 1999
-------------- -----------
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) (5,651,178) (5,501,647)
Cumulative distributions received from
Project Partnerships (140,684) (131,691)
----------- -----------
Investment in Project Partnerships before
adjustment 1,940,227 2,098,751
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 793,335 793,335
Accumulated amortization of acquisition
fees and expenses (146,950) (142,581)
------------ ------------
Investments in Project Partnerships $ 2,586,612 $ 2,749,505
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $396,826 for the period ended September 30, 1999 and cumulative
suspended losses of $253,692 for the year ended March 31, 1999 are not
included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1999, the Partnership had acquired a 99% interest in
the profits, losses and tax credits as a limited partner in 43 Project
Partnerships which own and operate government assisted multi-family housing
complexes. Cash flows from operations are allocated according to each
Partnership agreement. Upon dissolution proceeds will be distributed
according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
SERIES 8 SEPTEMBER 30, MARCH 31,
1999 1999
-------------- -----------
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) (5,538,272) (5,332,195)
Cumulative distributions received from
Project Partnerships (116,950) (104,205)
----------- -----------
Investment in Project Partnerships before
adjustment 1,930,883 2,149,705
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 549,773 549,773
Accumulated amortization of acquisition
fees and expenses (90,164) (86,904)
------------ ------------
Investments in Project Partnerships $ 2,390,492 $ 2,612,574
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $346,137 for the period ended September 30, 1999 and cumulative
suspended losses of $248,712 for the year ended March 31, 1999 are not
included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1999, the Partnership had acquired a 99% interest in
the profits, losses and tax credits as a limited partner in 24 Project
Partnerships which own and operate government assisted multi-family housing
complexes. Cash flows from operations are allocated according to each
Partnership agreement. Upon dissolution proceeds will be distributed
according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
SERIES 9 SEPTEMBER 30, MARCH 31,
1999 1999
-------------- -----------
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) (2,362,675) (2,229,175)
Cumulative distributions received from
Project Partnerships (79,285) (73,439)
----------- ----------
Investment in Project Partnerships before
adjustment 2,472,156 2,611,502
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 244,086 244,087
Accumulated amortization of acquisition
fees and expenses (38,678) (36,936)
------------ ------------
Investments in Project Partnerships $ 2,677,564 $ 2,818,653
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $0 for the period ended September 30, 1999 and cumulative suspended
losses of $0 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1999, the Partnership had acquired a 99% interest in
the profits, losses and tax credits as a limited partner in 15 Project
Partnerships which own and operate government assisted multi-family housing
complexes. Cash flows from operations are allocated according to each
Partnership agreement. Upon dissolution proceeds will be distributed
according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
SERIES 10 SEPTEMBER 30, MARCH 31,
1999 1999
-------------- -----------
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 (1) (961,557) (912,578)
Cumulative distributions received from
Project Partnerships (87,815) (83,326)
----------- ----------
Investment in Project Partnerships before
adjustment 2,865,300 2,918,768
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 196,738 196,738
Accumulated amortization of acquisition
fees and expenses (30,422) (29,014)
------------- ------------
Investments in Project Partnerships $ 3,031,616 $ 3,086,492
============= ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $0 for the period ended September 30, 1999 and cumulative suspended
losses of $0 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of September 30, 1999, the Partnership had acquired a 99% interest in
the profits, losses and tax credits as a limited partner in 12 Project
Partnerships which own and operate government assisted multi-family housing
complexes. Cash flows from operations are allocated according to each
Partnership agreement. Upon dissolution proceeds will be distributed
according to each Partnership agreement.
The following is a summary of Investments in Project Partnerships as of:
SERIES 11 SEPTEMBER 30, MARCH 31,
1999 1999
-------------- -----------
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 (1) (657,474) (618,845)
Cumulative distributions received from
Project Partnerships (63,483) (63,483)
----------- -----------
Investment in Project Partnerships before
adjustment 3,407,085 3,445,714
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 290,335 290,335
Accumulated amortization of acquisition
fees and expenses (36,830) (34,754)
------------ -----------
Investments in Project Partnerships $ 3,660,590 $ 3,701,295
============= =============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $0 for the period September 30, 1999 and cumulative suspended losses of
$0 for the year ended March 31, 1999 are not included.
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,
1999 1999
-------------- -----------
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) (15,171,156) (14,594,440)
Cumulative distributions received from
Project Partnerships (488,217) (456,144)
------------ -----------
Investment in Project Partnerships before
adjustment 12,615,651 13,224,440
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 2,074,267 2,074,268
Accumulated amortization of acquisition
fees and expenses (343,044) (330,189)
------------ ------------
Investments in Project Partnerships $14,346,874 $14,968,519
============ =============
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:
1999 1998
SERIES 7 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 3,093,395 $ 2,745,205
Investment properties, net 35,859,651 37,221,049
Other assets 27,467 61,340
------------ ------------
Total assets $38,980,513 $40,027,594
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,080,885 $ 976,252
Long-term debt 36,700,244 36,837,474
------------ ------------
Total liabilities 37,781,129 37,813,726
------------ ------------
Partners' equity
Limited Partner 1,243,935 2,209,833
General Partners (44,551) 4,035
----------- -----------
Total Partners' equity 1,199,384 2,213,868
----------- -----------
Total liabilities and partners' equity $38,980,513 $40,027,594
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,085,302 $ 2,092,878
Expenses: ------------ ------------
Operating expenses 1,358,836 1,298,459
Interest expense 517,626 531,994
Depreciation and amortization 761,712 780,508
------------ ------------
Total expenses 2,638,174 2,610,961
------------ ------------
Net loss $ (552,872) $ (518,083)
============ ============
Other partners' share of net loss $ (5,529) $ (5,181)
============ ============
Partnerships' share of net loss $ (547,343) $ (512,902)
Suspended losses 143,134 20,401
------------ ------------
Equity in Losses of Project Partnerships $ (404,209) $ (492,501)
============ ============
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:
1999 1998
SERIES 8 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,621,048 $ 2,396,895
Investment properties, net 38,449,419 40,001,426
Other assets 49,851 48,690
------------ ------------
Total assets $41,120,318 $42,447,011
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,156,406 $ 1,187,110
Long-term debt 38,706,743 38,850,768
------------ ------------
Total liabilities 39,863,149 40,037,878
------------ ------------
Partners' equity
Limited Partner 1,402,952 2,533,962
General Partners (145,783) (124,829)
----------- -----------
Total Partners' equity 1,257,169 2,409,133
----------- -----------
Total liabilities and partners' equity $41,120,318 $42,447,011
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,065,901 $ 2,008,626
Expenses: ------------ ------------
Operating expenses 1,298,284 1,270,406
Interest expense 506,385 490,747
Depreciation and amortization 803,400 813,403
------------ ------------
Total expenses 2,608,069 2,574,556
------------ ------------
Net loss $ (542,168) $ (565,930)
============ ============
Other partners' share of net loss $ (6,265) $ (5,659)
============ ============
Partnerships' share of net loss $ (535,903) $ (560,271)
Suspended losses 97,425 29,538
------------ ------------
Equity in Losses of Project Partnerships $ (438,478) $ (530,733)
============ ============
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:
1999 1998
SERIES 9 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,670,589 $ 1,479,412
Investment properties, net 21,361,541 22,202,473
Other assets 6,568 82,523
------------ ------------
Total assets $23,038,698 $23,764,408
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 362,788 $ 392,488
Long-term debt 20,504,253 20,576,103
------------ ------------
Total liabilities 20,867,041 20,968,591
------------ ------------
Partners' equity
Limited Partner 2,291,805 2,875,492
General Partners (120,148) (79,675)
----------- -----------
Total Partners' equity 2,171,657 2,795,817
----------- -----------
Total liabilities and partners' equity $23,038,698 $23,764,408
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,043,098 $ 1,063,142
Expenses: ------------ ------------
Operating expenses 651,637 624,728
Interest expense 255,022 248,345
Depreciation and amortization 443,146 450,760
------------ ------------
Total expenses 1,349,805 1,323,833
------------ ------------
Net loss $ (306,707) $ (260,691)
============ ============
Other partners' share of net loss $ (3,067) $ (2,607)
============ ============
Partnerships' share of net loss $ (303,640) $ (258,084)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (303,640) $ (258,084)
============ ============
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:
1999 1998
SERIES 10 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,345,308 $ 1,217,315
Investment properties, net 15,003,743 15,467,235
Other assets 5,989 22,594
------------ ------------
Total assets $16,355,040 $16,707,144
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 289,352 $ 240,542
Long-term debt 13,418,579 13,486,584
------------ ------------
Total liabilities 13,707,931 13,727,126
------------ ------------
Partners' equity
Limited Partner 2,773,494 3,062,329
General Partners (126,385) (82,311)
----------- -----------
Total Partners' equity 2,647,109 2,980,018
----------- -----------
Total liabilities and partners' equity $16,355,040 $16,707,144
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 710,112 $ 699,651
Expenses: ------------ ------------
Operating expenses 453,078 423,532
Interest expense 162,461 142,440
Depreciation and amortization 248,280 255,146
------------ ------------
Total expenses 863,819 821,118
------------ ------------
Net loss $ (153,707) $ (121,467)
============ ============
Other partners' share of net loss $ (2,405) $ (1,215)
============ ============
Partnerships' share of net loss $ (151,302) $ (120,252)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (151,302) $ (120,252)
============ ============
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:
1999 1998
SERIES 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,093,783 $ 1,026,381
Investment properties, net 13,401,509 13,743,508
Other assets 7,113 11,223
------------ ------------
Total assets $14,502,405 $14,781,112
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 308,954 $ 345,386
Long-term debt 10,736,223 10,802,181
------------ ------------
Total liabilities 11,045,177 11,147,567
------------ ------------
Partners' equity
Limited Partner 3,416,236 3,561,589
General Partners 40,992 71,956
----------- -----------
Total Partners' equity 3,457,228 3,633,545
----------- -----------
Total liabilities and partners' equity $14,502,405 $14,781,112
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 781,733 $ 732,320
Expenses: ------------ ------------
Operating expenses 387,736 365,963
Interest expense 214,950 156,798
Depreciation and amortization 254,810 252,070
------------ ------------
Total expenses 857,496 774,831
------------ ------------
Net loss $ (75,763) $ (42,511)
============ ============
Other partners' share of net loss $ (6,910) $ (425)
============ ============
Partnerships' share of net loss $ (68,853) $ (42,086)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (68,853) $ (42,086)
============ ============
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:
1999 1998
TOTAL SERIES 7 - 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 9,824,123 $ 8,865,208
Investment properties, net 124,075,863 128,635,691
Other assets 96,988 226,370
------------ ------------
Total assets $133,996,974 $137,727,269
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 3,198,385 $ 3,141,778
Long-term debt 120,066,042 120,553,110
------------ ------------
Total liabilities 123,264,427 123,694,888
------------ ------------
Partners' equity
Limited Partner 11,128,422 14,243,205
General Partners (395,875) (210,824)
----------- -----------
Total Partners' equity 10,732,547 14,032,381
----------- -----------
Total liabilities and partners' equity $133,996,974 $137,727,269
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 6,686,146 $ 6,596,617
Expenses: ------------ ------------
Operating expenses 4,149,571 3,983,088
Interest expense 1,656,444 1,570,324
Depreciation and amortization 2,511,348 2,551,887
------------ ------------
Total expenses 8,317,363 8,105,299
------------ ------------
Net loss $ (1,631,217) $ (1,508,682)
============ ============
Other partners' share of net loss $ (24,177) $ (15,087)
============ ============
Partnerships' share of net loss $ (1,607,040) $ (1,493,595)
Suspended losses 240,559 49,939
------------ ------------
Equity in Losses of Project Partnerships $ (1,366,481) $ (1,443,656)
============ ============
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations, Liquidity and Capital Resources
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, 1999 and September 30, 1998. The General and
Administrative expenses - General Partner and General and Administrative
expenses - Other for the three and six months ended September 30, 1999 are
comparable to September 30, 1998. 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 for the six months ended September 30, 1999 decreased
from $492,501 for the six months ended September 30, 1998 to $404,209 as a
result of not including losses of $143,134 in 1999 as compared to $20,401
in 1998, as these losses would reduce the investment in certain Project
Partnerships below zero. 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, 1999, the Series had $261,927 of short-term investments
(Cash and Cash Equivalents). It also had $448,191 in Zero Coupon
Treasuries with annual maturities providing $53,000 in fiscal year 2000
increasing to $80,000 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
$455,596 for the six months ended September 30, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $404,209 and the
changes in operating assets and liabilities, net cash used in operating
activities was $54,937. Cash provided by investing activities totaled
$17,551 consisting of cash distributions from the Project Partnerships.
There were no unusual events or trends to describe.
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 for the six months ended September 30, 1999
decreased from $530,733 for the six months ended September 30, 1998 to
$438,478 as a result of not including losses of $97,425 in 1999 as compared
to $29,538 in 1998, as these losses would reduce the investment in certain
Project Partnerships below zero. At September 30, 1999, the Series had
$372,398 of short-term investments (Cash and Cash Equivalents). It also
had $424,445 in Zero Coupon Treasuries with annual maturities providing
$48,000 in fiscal year 2000 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
$490,507 for the six months ended September 30, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $438,478 and the
changes in operating assets and liabilities, net cash used in operating
activities was $53,177. Cash provided by investing activities totaled
$13,973, 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 for the six months ended September 30, 1998 were comparable
for the six months ended September 30, 1999. At September 30, 1999, the
Series had $176,059 of short-term investments (Cash and Cash Equivalents).
It also had $283,126 in Zero Coupon Treasuries with annual maturities
providing $31,000 in fiscal year 2000 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
$332,408 for the six months ended September 30, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $303,640 and the
changes in operating assets and liabilities, net cash used in operating
activities was $25,405. Cash provided by investing activities totaled
$5,846, 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 for the six months ended September 30, 1998 were comparable
for the six months ended September 30, 1999. At September 30, 1999, the
Series had $190,062 of short-term investments (Cash and Cash Equivalents).
It also had $228,506 in Zero Coupon Treasuries with annual maturities
providing $24,000 in fiscal year 2000 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
$167,385 for the six months ended September 30, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $151,302 and the
changes in operating assets and liabilities, net cash used in operating
activities was $30,993. Cash provided by investing activities totaled
$4,489, 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 for the six months ended September 30, 1998 were comparable
for the six months ended September 30, 1999. At September 30, 1999, the
Series had $193,961 of short-term investments (Cash and Cash Equivalents).
It also had $248,167 in Zero Coupon Treasuries with annual maturities
providing $24,000 in fiscal year 2000 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
$80,464 for the six months ended September 30, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $68,853 and the
changes in operating assets and liabilities, net cash used in operating
activities was $31,555. Cash provided by investing activities totaled
$2,492, consisting of cash distributions from Project Partnerships. There
were no unusual events or trends to describe.
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: October 29, 1999 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: October 29, 1999 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUARTERLLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> SEP-30-1999
<CASH> 1,194,407
<SECURITIES> 1,632,435
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,370,971
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 16,358,822
<CURRENT-LIABILITIES> 174,083
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 15,351,572
<TOTAL-LIABILITY-AND-EQUITY> 16,358,822
<SALES> 0
<TOTAL-REVENUES> 81,785
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 241,633
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,526,360)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,526,360)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,526,360)
<EPS-BASIC> (41.06)<F1>
<EPS-DILUTED> (41.06)<F1>
<FN>
<F1>EPS IS NET LOSS PER $1,000 LIMITED PARTNERSHIP UNIT.
</FN>
</TABLE>
