GTWY3
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, 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 December 31, 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 DECEMBER 31, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 259,285 $ 299,313
Investments in Securities 52,767 50,412
------------ ------------
Total Current Assets 312,052 349,725
Investments in Securities 403,206 382,611
Investments in Project Partnerships, Net 2,103,440 2,749,505
----------- -----------
Total Assets $ 2,818,698 $ 3,481,841
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 49,786 $ 52,109
----------- -----------
Total Current Liabilities 49,786 52,109
----------- -----------
Long-Term Liabilities:
Payable to General Partners 292,774 268,953
----------- -----------
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 December 31,1999 and March 31,1999) 2,542,654 3,220,449
General Partners (66,516) (59,670)
----------- -----------
Total Partners' Equity $ 2,476,138 $ 3,160,779
----------- -----------
Total Liabilities and Partners' Equity $ 2,818,698 $ 3,481,841
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 8 DECEMBER 31, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 368,393 $ 411,602
Investments in Securities 47,777 45,734
------------ ------------
Total Current Assets 416,170 457,336
Investments in Securities 383,641 365,098
Investments in Project Partnerships, Net 1,844,437 2,612,574
----------- -----------
Total Assets $ 2,644,248 $ 3,435,008
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 40,027 $ 42,668
----------- -----------
Total Current Liabilities 40,027 42,668
----------- -----------
Long-Term Liabilities:
Payable to General Partners 344,041 316,373
----------- -----------
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 December 31, 1999 and March 31,1999) 2,325,204 3,132,832
General Partners (65,024) (56,865)
----------- -----------
Total Partners' Equity $ 2,260,180 $ 3,075,967
----------- -----------
Total Liabilities and Partners' Equity $ 2,644,248 $ 3,435,008
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 9 DECEMBER 31, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 175,105 $ 195,618
Investments in Securities 30,862 29,663
------------ ------------
Total Current Assets 205,967 225,281
Investments in Securities 256,466 245,245
Investments in Project Partnerships, Net 2,265,943 2,818,653
----------- -----------
Total Assets $ 2,728,376 $ 3,289,179
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 22,671 $ 24,561
----------- -----------
Total Current Liabilities 22,671 24,561
----------- -----------
Long-Term Liabilities:
Payable to General Partners 203,205 183,028
----------- -----------
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 December 31, 1999 and March 31,1999) 2,532,312 3,105,611
General Partners (29,812) (24,021)
----------- -----------
Total Partners' Equity $ 2,502,500 $ 3,081,590
----------- -----------
Total Liabilities and Partners' Equity $ 2,728,376 $ 3,289,179
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 10 DECEMBER 31, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 189,381 $ 216,566
Investments in Securities 23,931 22,855
------------ ------------
Total Current Assets 213,312 239,421
Investments in Securities 208,481 198,073
Investments in Project Partnerships, Net 2,839,685 3,086,492
----------- -----------
Total Assets $ 3,261,478 $ 3,523,986
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 26,905 $ 28,101
----------- -----------
Total Current Liabilities 26,905 28,101
----------- -----------
Long-Term Liabilities:
Payable to General Partners 49,711 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 December 31, 1999 and March 31,1999) 3,197,194 3,454,065
General Partners (12,332) (9,737)
----------- -----------
Total Partners' Equity $ 3,184,862 $ 3,444,328
----------- -----------
Total Liabilities and Partners' Equity $ 3,261,478 $ 3,523,986
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 11 DECEMBER 31, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 194,205 $ 223,024
Investments in Securities 23,882 22,713
------------ ------------
Total Current Assets 218,087 245,737
Investments in Securities 228,792 216,679
Investments in Project Partnerships, Net 3,487,858 3,701,295
----------- -----------
Total Assets $ 3,934,737 $ 4,163,711
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 26,619 $ 27,805
----------- -----------
Total Current Liabilities 26,619 27,805
----------- -----------
Long-Term Liabilities:
Payable to General Partners 12,095 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 December 31, 1999 and March 31,1999) 3,903,053 4,120,106
General Partners (7,030) (4,838)
----------- -----------
Total Partners' Equity $ 3,896,023 $ 4,115,268
----------- -----------
Total Liabilities and Partners' Equity $ 3,934,737 $ 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 DECEMBER 31, MARCH 31,
1999 1999
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,186,369 $ 1,346,123
Investments in Securities 179,219 171,377
------------ ------------
Total Current Assets 1,365,588 1,517,500
Investments in Securities 1,480,586 1,407,706
Investments in Project Partnerships, Net 12,541,363 14,968,519
----------- -----------
Total Assets $15,387,537 $17,893,725
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 166,008 $ 175,244
----------- -----------
Total Current Liabilities 166,008 175,244
----------- -----------
Long-Term Liabilities:
Payable to General Partners 901,826 840,549
----------- -----------
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 December 31, 1999 and March 31,1999) 14,500,417 17,033,063
General Partners (180,714) (155,131)
----------- -----------
Total Partners' Equity $14,319,703 $16,877,932
----------- -----------
Total Liabilities and Partners' Equity $15,387,537 $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 DECEMBER 31,
(Unaudited)
SERIES 7 1999 1998
---- ----
Revenues:
Interest Income $ 11,144 $ 10,900
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,052 22,108
General and Administrative:
General Partner 3,095 2,328
Other 2,056 2,197
Amortization 4,368 5,551
----------- -----------
Total Expenses 31,571 32,184
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (20,427) (21,284)
Equity in Losses of Project
Partnerships (208,618) (213,811)
---------- ----------
Net Loss $ (229,045) $ (235,095)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (226,755) $ (232,744)
General Partners (2,290) (2,351)
----------- -----------
$ (229,045) $ (235,095)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (16.31) $ (22.39)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 8 1999 1998
---- ----
Revenues:
Interest Income $ 11,767 $ 11,469
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,983 23,047
General and Administrative:
General Partner 3,412 2,567
Other 2,181 2,311
Amortization 3,260 3,853
----------- -----------
Total Expenses 31,836 31,778
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (20,069) (20,309)
Equity in Losses of Project
Partnerships (305,211) (257,130)
---------- ----------
Net Loss $ (325,280) $ (277,439)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (322,027) $ (274,665)
General Partners (3,253) (2,774)
----------- -----------
$ (325,280) $ (277,439)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (22.60) $ (27.52)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 9 1999 1998
---- ----
Revenues:
Interest Income $ 6,468 $ 6,235
----------- -----------
Expenses:
Asset Management Fee-General Partner 12,615 12,648
General and Administrative:
General Partner 1,904 1,433
Other 1,036 1,490
Amortization 1,743 1,743
----------- -----------
Total Expenses 17,298 17,314
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (10,830) (11,079)
Equity in Losses of Project
Partnerships (235,852) (169,947)
---------- ----------
Net Loss $ (246,682) $ (181,026)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (244,215) $ (179,216)
General Partners (2,467) (1,810)
----------- -----------
$ (246,682) $ (181,026)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (39.05) $ (28.66)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 10 1999 1998
---- ----
Revenues:
Interest Income $ 6,364 $ 6,119
----------- -----------
Expenses:
Asset Management Fee-General Partner 8,607 8,525
General and Administrative:
General Partner 1,190 896
Other 1,118 1,021
Amortization 1,406 1,406
----------- -----------
Total Expenses 12,321 11,848
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (5,957) (5,729)
Equity in Losses of Project
Partnerships (86,124) (155,972)
---------- ----------
Net Loss $ (92,081) $ (161,701)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (91,160) $ (160,084)
General Partners (921) (1,617)
----------- -----------
$ (92,081) $ (161,701)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (10.90) $ (31.74)
============ ============
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 DECEMBER 31,
(Unaudited)
SERIES 11 1999 1998
---- ----
Revenues:
Interest Income $ 7,015 $ 6,778
----------- -----------
Expenses:
Asset Management Fee-General Partner 6,930 6,820
General and Administrative:
General Partner 953 717
Other 775 1,116
Amortization 2,074 2,074
----------- -----------
Total Expenses 10,732 10,727
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (3,717) (3,949)
Equity in Losses of Project
Partnerships (135,064) (33,849)
---------- ----------
Net Loss $ (138,781) $ (37,798)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (137,394) $ (37,420)
General Partners (1,387) (378)
----------- -----------
$ (138,781) $ (37,798)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (26.80) $ (7.30)
============ ============
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 DECEMBER 31,
(Unaudited)
TOTAL SERIES 7 - 11 1999 1998
---- ----
Revenues:
Interest Income $ 42,758 $ 41,501
----------- -----------
Expenses:
Asset Management Fee-General Partner 73,187 73,148
General and Administrative:
General Partner 10,554 7,941
Other 7,166 8,135
Amortization 12,851 14,627
----------- -----------
Total Expenses 103,758 103,851
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (61,000) (62,350)
Equity in Losses of Project
Partnerships (970,869) (830,709)
---------- ----------
Net Loss $(1,031,869) $ (893,059)
=========== ===========
Allocation of Net Loss:
Limited Partners $(1,021,551) $ (884,128)
General Partners (10,318) (8,931)
----------- -----------
$(1,031,869) $ (893,059)
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 7 1999 1998
---- ----
Revenues:
Interest Income $ 32,649 $ 33,471
----------- -----------
Expenses:
Asset Management Fee-General Partner 66,156 66,324
General and Administrative:
General Partner 11,140 10,344
Other 14,063 13,717
Amortization 13,104 16,653
----------- -----------
Total Expenses 104,463 107,038
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (71,814) (73,567)
Equity in Losses of Project
Partnerships (612,827) (706,312)
---------- ----------
Net Loss $ (684,641) $ (779,879)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (677,795) $ (772,080)
General Partners (6,846) (7,799)
----------- -----------
$ (684,641) $ (779,879)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (65.20) $ (74.27)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 8 1999 1998
---- ----
Revenues:
Interest Income $ 34,127 $ 35,311
----------- -----------
Expenses:
Asset Management Fee-General Partner 68,949 69,141
General and Administrative:
General Partner 12,282 11,405
Other 15,214 15,280
Amortization 9,780 10,198
----------- -----------
Total Expenses 106,225 106,024
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (72,098) (70,713)
Equity in Losses of Project
Partnerships (743,689) (787,863)
---------- ----------
Net Loss $ (815,787) $ (858,576)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (807,629) $ (849,990)
General Partners (8,158) (8,586)
----------- -----------
$ (815,787) $ (858,576)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (80.92) $ (85.17)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 9 1999 1998
---- ----
Revenues:
Interest Income $ 18,842 $ 19,061
----------- -----------
Expenses:
Asset Management Fee-General Partner 37,845 37,944
General and Administrative:
General Partner 6,855 6,366
Other 8,511 8,611
Amortization 5,229 5,229
----------- -----------
Total Expenses 58,440 58,150
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (39,598) (39,089)
Equity in Losses of Project
Partnerships (539,492) (428,031)
---------- ----------
Net Loss $ (579,090) $ (467,120)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (573,299) $ (462,449)
General Partners (5,791) (4,671)
----------- -----------
$ (579,090) $ (467,120)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (91.67) $ (73.94)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 10 1999 1998
---- ----
Revenues:
Interest Income $ 18,492 $ 18,821
----------- -----------
Expenses:
Asset Management Fee-General Partner 25,821 25,575
General and Administrative:
General Partner 4,284 3,979
Other 6,209 5,995
Amortization 4,218 4,218
----------- -----------
Total Expenses 40,532 39,767
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (22,040) (20,946)
Equity in Losses of Project
Partnerships (237,426) (276,224)
---------- ----------
Net Loss $ (259,466) $ (297,170)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (256,871) $ (294,198)
General Partners (2,595) (2,972)
----------- -----------
$ (259,466) $ (297,170)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (50.94) $ (58.34)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 11 1999 1998
---- ----
Revenues:
Interest Income $ 20,433 $ 20,682
----------- -----------
Expenses:
Asset Management Fee-General Partner 20,790 20,460
General and Administrative:
General Partner 3,428 3,183
Other 5,321 5,481
Amortization 6,222 6,222
----------- -----------
Total Expenses 35,761 35,346
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (15,328) (14,664)
Equity in Losses of Project
Partnerships (203,917) (75,935)
---------- ----------
Net Loss $ (219,245) $ (90,599)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (217,053) $ (89,693)
General Partners (2,192) (906)
----------- -----------
$ (219,245) $ (90,599)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (42.34) $ (17.49)
============ ============
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 NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
TOTAL SERIES 7 - 11 1999 1998
---- ----
Revenues:
Interest Income $ 124,543 $ 127,346
----------- -----------
Expenses:
Asset Management Fee-General Partner 219,561 219,444
General and Administrative:
General Partner 37,989 35,277
Other 49,318 49,084
Amortization 38,553 42,520
----------- -----------
Total Expenses 345,421 346,325
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (220,878) (218,979)
Equity in Losses of Project
Partnerships (2,337,351) (2,274,365)
---------- ----------
Net Loss $(2,558,229) $(2,493,344)
=========== ===========
Allocation of Net Loss:
Limited Partners $(2,532,647) $(2,468,411)
General Partners (25,582) (24,933)
----------- -----------
$(2,558,229) $(2,493,344)
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (772,080) (7,799) (779,879)
----------- ----------- -----------
Balance at December 31,1998 $ 3,252,673 $ (59,345) $ 3,193,328
============ ============ ============
Balance at March 31, 1999 $ 3,220,449 $ (59,670) $ 3,160,779
Net Loss (677,795) (6,846) (684,641)
----------- ----------- -----------
Balance at December 31,1999 $2,542,654 $ (66,516) $ 2,476,138
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (849,990) (8,586) (858,576)
----------- ----------- -----------
Balance at December 31, 1998 $ 3,327,530 $ (54,899) $ 3,272,631
============ ============ ============
Balance at March 31, 1999 $ 3,132,833 $ (56,866) $ 3,075,967
Net Loss (807,629) (8,158) (815,787)
----------- ----------- -----------
Balance at December 31, 1999 $ 2,325,204 $ (65,024) $ 2,260,180
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (462,449) (4,671) (467,120)
----------- ----------- -----------
Balance at December 31, 1998 $ 3,207,691 $ (22,990) $ 3,184,701
============ ============ ============
Balance at March 31, 1999 $ 3,105,611 $ (24,021) $ 3,081,590
Net Loss (573,299) (5,791) (579,090)
----------- ----------- -----------
Balance at December 31, 1999 $ 2,532,312 $ (29,812) $ 2,502,500
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (294,198) (2,972) (297,170)
----------- ----------- -----------
Balance at December 31, 1998 $ 3,422,000 $ (10,061) $ 3,411,939
============ ============ ============
Balance at March 31, 1999 $ 3,454,065 $ (9,737) $ 3,444,328
Net Loss (256,871) (2,595) (259,466)
----------- ----------- -----------
Balance at December 31, 1999 $ 3,197,194 $ (12,332) $ 3,184,862
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (89,693) (906) (90,599)
----------- ----------- -----------
Balance at December 31, 1998 $ 4,181,433 $ (4,219) $ 4,177,214
============ ============ ============
Balance at March 31, 1999 $ 4,120,106 $ (4,838) $ 4,115,268
Net Loss (217,053) (2,192) (219,245)
----------- ----------- -----------
Balance at December 31, 1999 $ 3,903,053 $ (7,030) $ 3,896,023
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED DECEMBER 31, 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 (2,468,411) (24,933) (2,493,344)
----------- ----------- -----------
Balance at December 31, 1998 $17,391,326 $ (151,513) $17,239,813
============ ============ ============
Balance at March 31, 19999 $17,033,064 $ (155,132) $16,877,932
Net Loss (2,532,647) (25,582) (2,558,229)
----------- ----------- -----------
Balance at December 31, 1999 $14,500,417 $ (180,714) $14,319,703
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 7 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $ (684,641) $ (779,879)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 13,104 16,653
Accreted Interest Income on Investments
in Securities (22,948) (23,585)
Equity in Losses of Project Partnerships 612,827 706,312
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 21,497 17,789
----------- -----------
Net Cash Used in Operating Activities (60,161) (62,710)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 20,133 19,600
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 20,133 19,600
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (40,028) (43,110)
Cash and Cash Equivalents at Beginning of
Year 299,313 286,106
----------- -----------
Cash and Cash Equivalents at End of Year $ 259,285 $ 242,996
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 8 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $ (815,787) $ (858,576)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 9,780 10,198
Accreted Interest Income on Investments
in Securities (20,587) (21,128)
Equity in Losses of Project Partnership 743,689 787,863
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 25,028 22,000
----------- -----------
Net Cash Used in Operating Activities (57,877) (59,643)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 14,668 10,080
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 14,668 10,080
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (43,209) (49,563)
Cash and Cash Equivalents at Beginning of
Year 411,602 410,727
----------- -----------
Cash and Cash Equivalents at End of Year $ 368,393 $ 361,164
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 9 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $ (579,090) $ (467,120)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 5,229 5,229
Accreted Interest Income on Investments
in Securities (12,421) (12,789)
Equity in Losses of Project Partnerships 539,492 428,031
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 18,287 17,186
----------- -----------
Net Cash Used in Operating Activities (28,503) (29,463)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 7,990 10,629
Net Cash Provided by (Used in) ----------- -----------
Investing Activities 7,990 10,629
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (20,513) (18,837)
Cash and Cash Equivalents at Beginning of
Year 195,618 180,104
----------- -----------
Cash and Cash Equivalents at End of Year $ 175,105 $ 161,270
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 10 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $ (259,466) $ (297,170)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 4,218 4,218
Accreted Interest Income on Investments
in Securities (11,482) (11,783)
Equity in Losses of Project Partnerships 237,426 276,224
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (3,042) (4,128)
----------- -----------
Net Cash Used in Operating Activities (32,346) (32,639)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 5,161 7,217
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 5,161 7,217
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (27,185) (25,422)
Cash and Cash Equivalents at Beginning of
Year 216,566 202,435
----------- -----------
Cash and Cash Equivalents at End of Year $ 189,381 $ 177,013
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
SERIES 11 1999 1998
- -------- ---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $ (219,245) $ (90,599)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 6,222 6,222
Accreted Interest Income on Investments
in Securities (13,280) (13,458)
Equity in Losses of Project Partnerships 203,917 75,935
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners (9,729) (5,022)
----------- -----------
Net Cash Used in Operating Activities (32,115) (26,922)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 3,296 5,587
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 3,296 5,587
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (28,819) (21,335)
Cash and Cash Equivalents at Beginning of
Year 223,024 208,198
----------- -----------
Cash and Cash Equivalents at End of Year $ 194,205 $ 186,863
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(Unaudited)
TOTAL SERIES 7 - 11 1999 1998
- ------------------- ---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $(2,558,229) $(2,493,344)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Amortization 38,553 42,520
Accreted Interest Income on Investments
in Securities (80,718) (82,743)
Equity in Losses of Project Partnerships 2,337,351 2,274,365
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 52,041 47,825
----------- -----------
Net Cash Used in Operating Activities (211,002) (211,377)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 51,248 53,113
----------- -----------
Net Cash Provided by (Used in)
Investing Activities 51,248 53,113
----------- -----------
Increase (Decrease) in Cash and Cash
Equivalents (159,754) (158,264)
Cash and Cash Equivalents at Beginning of
Year 1,346,123 1,287,570
----------- -----------
Cash and Cash Equivalents at End of Year $ 1,186,369 $ 1,129,306
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 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 December 31, 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 December 31, 1999 Balance Sheet includes Investment in Securities
consisting of U.S. Treasury Security Strips which represents their cost,
plus accreted interest income of $180,629 for Series 7, $155,244 for Series
8, $87,263 for Series 9, $75,242 for Series 10 and $84,351 for Series 11.
Gross Unrealized
Estimated Market Cost Plus Gains and
Value Accreted Interest (Losses)
----------------- ----------------- ----------------
Series 7 $ 467,709 $ 455,973 $ 11,736
Series 8 435,816 431,418 4,398
Series 9 282,010 287,328 (5,318)
Series 10 235,116 232,412 2,704
Series 11 262,843 252,674 10,169
As of December 31, 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 $ 52,767 $ 47,777 $ 30,862
After 1 year through 5 years 208,488 195,241 118,653
After 5 years through 10 years 194,718 188,400 137,813
Over 10 years 0 0 0
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 455,973 $ 431,418 $ 287,328
========== ========== ==========
Series 10 Series 11 Total
-------- -------- --------
Due with 1 year $ 23,931 $ 23,882 $ 179,219
After 1 year through 5 years 89,728 96,323 708,433
After 5 years through 10 years 99,146 111,984 732,061
Over 10 years 19,607 20,485 40,092
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 232,412 $ 252,674 $1,659,805
========== ========== ==========
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, 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 $ 66,156 $ 66,324
Series 8 68,949 69,141
Series 9 37,845 37,944
Series 10 25,821 25,575
Series 11 20,790 20,460
-------- --------
Total $219,561 $219,444
======== ========
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 $ 11,140 $ 10,344
Series 8 12,282 11,405
Series 9 6,855 6,366
Series 10 4,284 3,979
Series 11 3,428 3,183
-------- --------
Total $ 37,989 $ 35,277
======== ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of December 31, 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 DECEMBER 31, 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) (6,114,474) (5,501,647)
Cumulative distributions received from
Project Partnerships (151,824) (131,691)
----------- -----------
Investment in Project Partnerships before
adjustment 1,465,791 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 (155,686) (142,581)
------------ ------------
Investments in Project Partnerships $ 2,103,440 $ 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 $473,057 for the period ended December 31, 1999 and cumulative suspended
losses of $253,695 for the year ended March 31, 1999 are not included.
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS (continued):
As of December 31, 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 DECEMBER 31, 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) (6,075,884) (5,332,195)
Cumulative distributions received from
Project Partnerships (118,873) (104,205)
----------- -----------
Investment in Project Partnerships before
adjustment 1,391,348 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 (96,684) (86,904)
------------ ------------
Investments in Project Partnerships $ 1,844,437 $ 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 $415,303 for the period ended December 31, 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 December 31, 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 DECEMBER 31, 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) (2,768,667) (2,229,175)
Cumulative distributions received from
Project Partnerships (81,429) (73,439)
----------- ----------
Investment in Project Partnerships before
adjustment 2,064,020 2,611,502
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 244,087 244,087
Accumulated amortization of acquisition
fees and expenses (42,164) (36,936)
------------ ------------
Investments in Project Partnerships $ 2,265,943 $ 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 December 31, 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 December 31, 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 DECEMBER 31, 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) (1,150,004) (912,578)
Cumulative distributions received from
Project Partnerships (88,487) (83,326)
----------- ----------
Investment in Project Partnerships before
adjustment 2,676,181 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 (33,234) (29,014)
------------- ------------
Investments in Project Partnerships $ 2,839,685 $ 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 December 31, 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 December 31, 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 DECEMBER 31, 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) (822,762) (618,845)
Cumulative distributions received from
Project Partnerships (66,779) (63,483)
----------- -----------
Investment in Project Partnerships before
adjustment 3,238,501 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 (40,978) (34,754)
------------ -----------
Investments in Project Partnerships $ 3,487,858 $ 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 December 31, 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 DECEMBER 31, 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) (16,931,791) (14,594,440)
Cumulative distributions received from
Project Partnerships (507,392) (456,144)
------------ -----------
Investment in Project Partnerships before
adjustment 10,835,841 13,224,440
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 (368,746) (330,189)
------------ ------------
Investments in Project Partnerships $12,541,363 $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
September 30, of each year:
1999 1998
SERIES 7 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 3,274,796 $ 2,995,833
Investment properties, net 35,485,091 36,860,307
Other assets 26,615 6,884
------------ ------------
Total assets $38,786,502 $39,863,024
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,193,548 $ 1,032,783
Long-term debt 36,681,296 36,833,524
------------ ------------
Total liabilities 37,874,844 37,866,307
------------ ------------
Partners' equity
Limited Partner 959,086 1,974,116
General Partners (47,428) 22,601
----------- -----------
Total Partners' equity 911,658 1,996,717
----------- -----------
Total liabilities and partners' equity $38,786,502 $39,863,024
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 3,330,475 $ 2,960,608
Expenses: ------------ ------------
Operating expenses 2,042,674 1,851,193
Interest expense 985,831 683,784
Depreciation and amortization 1,142,568 1,170,224
------------ ------------
Total expenses 4,171,073 3,705,201
------------ ------------
Net loss $ (840,598) $ (744,593)
============ ============
Other partners' share of net loss $ (8,406) $ (7,446)
============ ============
Partnerships' share of net loss $ (832,192) $ (737,147)
Suspended losses 219,365 30,835
------------ ------------
Equity in Losses of Project Partnerships $ (612,827) $ (706,312)
============ ============
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:
1999 1998
SERIES 8 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,765,258 $ 2,543,207
Investment properties, net 38,055,197 39,606,503
Other assets 46,215 49,859
------------ ------------
Total assets $40,866,670 $42,199,569
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,300,671 $ 1,210,173
Long-term debt 38,688,206 38,844,252
------------ ------------
Total liabilities 39,988,877 40,054,425
------------ ------------
Partners' equity
Limited Partner 1,028,575 2,258,796
General Partners (150,782) (113,652)
----------- -----------
Total Partners' equity 877,793 2,145,144
----------- -----------
Total liabilities and partners' equity $40,866,670 $42,199,569
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 3,184,330 $ 3,027,162
Expenses: ------------ ------------
Operating expenses 2,061,475 1,909,969
Interest expense 839,299 736,831
Depreciation and amortization 1,205,100 1,219,861
------------ ------------
Total expenses 4,105,874 3,866,661
------------ ------------
Net loss $ (921,544) $ (839,499)
============ ============
Other partners' share of net loss $ (11,264) $ (8,395)
============ ============
Partnerships' share of net loss $ (910,280) $ (831,104)
Suspended losses 166,591 43,241
------------ ------------
Equity in Losses of Project Partnerships $ (743,689) $ (787,863)
============ ============
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:
1999 1998
SERIES 9 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,761,152 $ 1,622,538
Investment properties, net 21,142,550 21,987,585
Other assets 4,756 8,552
------------ ------------
Total assets $22,908,458 $23,618,675
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 480,417 $ 418,611
Long-term debt 20,494,619 20,575,863
------------ ------------
Total liabilities 20,975,036 20,994,474
------------ ------------
Partners' equity
Limited Partner 2,055,953 2,710,554
General Partners (122,531) (86,353)
----------- -----------
Total Partners' equity 1,933,422 2,624,201
----------- -----------
Total liabilities and partners' equity $22,908,458 $23,618,675
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,647,668 $ 1,588,594
Expenses: ------------ ------------
Operating expenses 1,075,868 961,715
Interest expense 452,023 383,094
Depreciation and amortization 664,719 676,140
------------ ------------
Total expenses 2,192,610 2,020,949
------------ ------------
Net loss $ (544,942) $ (432,355)
============ ============
Other partners' share of net loss $ (5,450) $ (4,324)
============ ============
Partnerships' share of net loss $ (539,492) $ (428,031)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (539,492) $ (428,031)
============ ============
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:
1999 1998
SERIES 10 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,396,010 $ 1,261,888
Investment properties, net 14,885,171 15,345,920
Other assets 4,225 13,962
------------ ------------
Total assets $16,285,406 $16,621,770
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 358,885 $ 325,022
Long-term debt 13,411,288 13,477,037
------------ ------------
Total liabilities 13,770,173 13,802,059
------------ ------------
Partners' equity
Limited Partner 2,675,345 2,904,977
General Partners (160,112) (85,266)
----------- -----------
Total Partners' equity 2,515,233 2,819,711
----------- -----------
Total liabilities and partners' equity $16,285,406 $16,621,770
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,063,871 $ 1,063,786
Expenses: ------------ ------------
Operating expenses 702,532 692,735
Interest expense 234,082 270,405
Depreciation and amortization 368,340 379,660
------------ ------------
Total expenses 1,304,954 1,342,800
------------ ------------
Net loss $ (241,083) $ (279,014)
============ ============
Other partners' share of net loss $ (3,657) $ (2,790)
============ ============
Partnerships' share of net loss $ (237,426) $ (276,224)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (237,426) $ (276,224)
============ ============
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:
1999 1998
SERIES 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,189,993 $ 1,078,922
Investment properties, net 13,165,027 13,622,732
Other assets 6,024 9,899
------------ ------------
Total assets $14,361,044 $14,711,553
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 386,154 $ 303,521
Long-term debt 10,701,955 10,808,677
------------ ------------
Total liabilities 11,088,109 11,112,198
------------ ------------
Partners' equity
Limited Partner 3,250,949 3,527,740
General Partners 21,986 71,615
----------- -----------
Total Partners' equity 3,272,935 3,599,355
----------- -----------
Total liabilities and partners' equity $14,361,044 $14,711,553
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,142,365 $ 1,102,782
Expenses: ------------ ------------
Operating expenses 637,082 548,853
Interest expense 340,381 252,526
Depreciation and amortization 382,215 378,105
------------ ------------
Total expenses 1,359,678 1,179,484
------------ ------------
Net loss $ (217,313) $ (76,702)
============ ============
Other partners' share of net loss $ (13,396) $ (767)
============ ============
Partnerships' share of net loss $ (203,917) $ (75,935)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (203,917) $ (75,935)
============ ============
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:
1999 1998
TOTAL SERIES 7 - 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 10,387,209 $ 9,502,388
Investment properties, net 122,733,036 127,423,047
Other assets 87,835 89,156
------------ ------------
Total assets $133,208,080 $137,014,591
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 3,719,675 $ 3,290,110
Long-term debt 119,977,364 120,539,353
------------ ------------
Total liabilities 123,697,039 123,829,463
------------ ------------
Partners' equity
Limited Partner 9,969,908 13,376,183
General Partners (458,867) (191,055)
----------- -----------
Total Partners' equity 9,511,041 13,185,128
----------- -----------
Total liabilities and partners' equity $133,208,080 $137,014,591
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 10,368,709 $ 9,742,932
Expenses: ------------ ------------
Operating expenses 6,519,631 5,964,465
Interest expense 2,851,616 2,326,640
Depreciation and amortization 3,762,942 3,823,990
------------ ------------
Total expenses 13,134,189 12,115,095
------------ ------------
Net loss $ (2,765,480) $ (2,372,163)
============ ============
Other partners' share of net loss $ (42,173) $ (23,722)
============ ============
Partnerships' share of net loss $ (2,723,307) $ (2,348,441)
Suspended losses 385,956 74,076
------------ ------------
Equity in Losses of Project Partnerships $ (2,337,351) $ (2,274,365)
============ ============
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 nine and three
months ended December 31, 1999 and December 31, 1998. The General and
Administrative expenses - General Partner and General and Administrative
expenses - Other for the three and nine months ended December 31, 1999 are
comparable to December 31, 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 nine months ended December 31, 1999 decreased
from $706,312 for the nine months ended December 31, 1998 to $612,827 as a
result of not including losses of $219,365 in 1999 as compared to $30,835
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 December 31, 1999, the Series had $259,285 of short-term investments
(Cash and Cash Equivalents). It also had $455,973 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
$684,641 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $612,827 and the
changes in operating assets and liabilities, net cash used in operating
activities was $60,161. Cash provided by investing activities totaled
$20,133 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 nine months ended December 31, 1999
decreased from $787,863 for the nine months ended December 31, 1998 to
$743,689 as a result of not including losses of $166,591 in 1999 as
compared to $43,241 in 1998, as these losses would reduce the investment in
certain Project Partnerships below zero. At December 31, 1999, the Series
had $368,393 of short-term investments (Cash and Cash Equivalents). It
also had $431,418 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
$815,787 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $743,689 and the
changes in operating assets and liabilities, net cash used in operating
activities was $57,877. Cash provided by investing activities totaled
$14,668, 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 nine months ended December 31, 1998 were comparable
for the nine months ended December 31, 1999. At December 31, 1999, the
Series had $175,105 of short-term investments (Cash and Cash Equivalents).
It also had $287,328 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
$579,090 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $539,492 and the
changes in operating assets and liabilities, net cash used in operating
activities was $28,503. Cash provided by investing activities totaled
$7,990, 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 nine months ended December 31, 1998 were comparable
for the nine months ended December 31, 1999. At December 31, 1999, the
Series had $189,381 of short-term investments (Cash and Cash Equivalents).
It also had $232,412 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
$259,466 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $237,426 and the
changes in operating assets and liabilities, net cash used in operating
activities was $32,346. Cash provided by investing activities totaled
$5,161, 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 nine months ended December 31, 1999 increased from
$75,935 for the nine months ended December 31, 1998 to $203,917. The
increase in equity in losses is due to several Project Partnerships
reporting income in 1998 and losses in 1999 as a result of ongoing
operations. At December 31, 1999, the Series had $194,205 of short-term
investments (Cash and Cash Equivalents). It also had $252,674 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
$219,245 for the nine months ended December 31, 1999. However, after
adjusting for Equity in Losses of Project Partnerships of $203,917 and the
changes in operating assets and liabilities, net cash used in operating
activities was $32,115. Cash provided by investing activities totaled
$3,296, 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: February 9, 2000 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: February 9, 2000 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
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1999.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> DEC-31-1999
<CASH> 1,186,369
<SECURITIES> 1,659,805
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,365,588
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,387,537
<CURRENT-LIABILITIES> 901,826
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 14,319,703
<TOTAL-LIABILITY-AND-EQUITY> 15,387,537
<SALES> 0
<TOTAL-REVENUES> 124,543
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 345,421
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,558,229)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,558,229)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,558,229)
<EPS-BASIC> (68.82)<F1>
<EPS-DILUTED> (68.82)<F1>
<FN>
<F1>EPS IS NET LOSS PER $1,000 LIMITED PARTNERSHIP UNIT.
</FN>
</TABLE>
