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 SEPTEMBER 30, 2000
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, 2000
Units of Limited Partnership
Interest: $1,000 per unit 36,799
DOCUMENTS INCORPORATED BY REFERENCE
Parts I and II, 1998 Form 10-K, filed with the
Securities and Exchange Commission on July 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,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 287,029 $ 324,156
Investments in Securities 55,827 54,067
----------- -----------
Total Current Assets 342,856 378,223
Investments in Securities 369,085 356,248
Investments in Project Partnerships, Net 1,855,145 2,237,728
----------- -----------
Total Assets $ 2,567,086 $ 2,972,199
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 52,072 $ 54,468
----------- -----------
Total Current Liabilities 52,072 54,468
----------- -----------
Long-Term Liabilities:
Payable to General Partners 315,828 312,688
----------- -----------
Partners' Equity (Deficit):
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, 2000 and March 31,
2000) 2,268,472 2,670,270
General Partners (69,286) (65,227)
----------- -----------
Total Partners' Equity 2,199,186 2,605,043
----------- -----------
Total Liabilities and Partners' Equity $ 2,567,086 $ 2,972,199
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 8 SEPTEMBER 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 382,678 $ 425,447
Investments in Securities 52,914 51,329
----------- -----------
Total Current Assets 435,592 476,776
Investments in Securities 350,216 338,702
Investments in Project Partnerships, Net 1,132,019 1,423,188
----------- -----------
Total Assets $ 1,917,827 $ 2,238,666
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 42,470 $ 45,318
----------- -----------
Total Current Liabilities 42,470 45,318
----------- -----------
Long-Term Liabilities:
Payable to General Partners 370,373 364,673
----------- -----------
Partners' Equity (Deficit):
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, 2000 and March 31, 2000) 1,577,559 1,898,013
General Partners (72,575) (69,338)
----------- -----------
Total Partners' Equity 1,504,984 1,828,675
----------- -----------
Total Liabilities and Partners' Equity $ 1,917,827 $ 2,238,666
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 9 SEPTEMBER 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 196,103 $ 209,964
Investments in Securities 31,409 30,560
----------- -----------
Total Current Assets 227,512 240,524
Investments in Securities 236,794 229,761
Investments in Project Partnerships, Net 2,008,289 2,303,872
----------- -----------
Total Assets $ 2,472,595 $ 2,774,157
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 24,236 $ 25,970
----------- -----------
Total Current Liabilities 24,236 25,970
----------- -----------
Long-Term Liabilities:
Payable to General Partners 224,123 214,521
----------- -----------
Partners' Equity (Deficit):
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, 2000 and March 31, 2000) 2,256,830 2,563,166
General Partners (32,594) (29,500)
----------- -----------
Total Partners' Equity 2,224,236 2,533,666
----------- -----------
Total Liabilities and Partners' Equity $ 2,472,595 $ 2,774,157
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 10 SEPTEMBER 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 201,834 $ 226,070
Investments in Securities 24,550 23,784
----------- -----------
Total Current Assets 226,384 249,854
Investments in Securities 194,846 188,259
Investments in Project Partnerships, Net 2,545,803 2,764,397
----------- -----------
Total Assets $ 2,967,033 $ 3,202,510
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 27,804 $ 29,116
----------- -----------
Total Current Liabilities 27,804 29,116
----------- -----------
Long-Term Liabilities:
Payable to General Partners 48,539 57,475
----------- -----------
Partners' Equity (Deficit):
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, 2000 and March 31, 2000) 2,905,963 3,128,940
General Partners (15,273) (13,021)
----------- -----------
Total Partners' Equity 2,890,690 3,115,919
----------- -----------
Total Liabilities and Partners' Equity $ 2,967,033 $ 3,202,510
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
BALANCE SHEETS
SERIES 11 SEPTEMBER 30, MARCH 31,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 205,064 $ 230,874
Investments in Securities 25,424 24,571
----------- -----------
Total Current Assets 230,488 255,445
Investments in Securities 216,157 208,405
Investments in Project Partnerships, Net 3,377,388 3,534,837
----------- -----------
Total Assets $ 3,824,033 $ 3,998,687
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 27,408 $ 28,842
----------- -----------
Total Current Liabilities 27,408 28,842
----------- -----------
Long-Term Liabilities:
Payable to General Partners 5,549 19,190
----------- -----------
Partners' Equity (Deficit):
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, 2000 and March 31, 2000) 3,799,156 3,957,139
General Partners (8,080) (6,484)
----------- -----------
Total Partners' Equity 3,791,076 3,950,655
----------- -----------
Total Liabilities and Partners' Equity $ 3,824,033 $ 3,998,687
=========== ===========
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,
2000 2000
------- -------
(Unaudited) (Audited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 1,272,708 $ 1,416,511
Investments in Securities 190,124 184,311
---------- -----------
Total Current Assets 1,462,832 1,600,822
Investments in Securities 1,367,098 1,321,375
Investments in Project Partnerships, Net 10,918,644 12,264,022
----------- -----------
Total Assets $13,748,574 $15,186,219
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Payable to General Partners $ 173,990 $ 183,714
----------- -----------
Total Current Liabilities 173,990 183,714
----------- -----------
Long-Term Liabilities:
Payable to General Partners 964,412 968,547
----------- -----------
Partners' Equity (Deficit):
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, 2000 and March 31, 2000) 12,807,980 14,217,528
General Partners (197,808) (183,570)
----------- -----------
Total Partners' Equity 12,610,172 14,033,958
----------- -----------
Total Liabilities and Partners' Equity $13,748,574 $15,186,219
=========== ===========
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 2000 1999
---- ----
Revenues:
Interest Income $ 11,934 $ 10,835
----------- -----------
Expenses:
Asset Management Fee-General Partner 21,988 22,052
General and Administrative:
General Partner 5,862 5,109
Other 8,039 8,969
Amortization 3,549 4,368
----------- -----------
Total Expenses 39,438 40,498
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (27,504) (29,663)
Equity in Losses of Project
Partnerships (197,993) (254,678)
---------- ----------
Net Loss $ (225,497) $ (284,341)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (223,242) $ (281,498)
General Partners (2,255) (2,843)
----------- -----------
$ (225,497) $ (284,341)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (21.47) $ (27.08)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 12,650 $ 11,285
----------- -----------
Expenses:
Asset Management Fee-General Partner 22,914 22,983
General and Administrative:
General Partner 6,463 5,633
Other 8,522 9,664
Amortization 2,264 3,260
----------- -----------
Total Expenses 40,163 41,540
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (27,513) (30,255)
Equity in Losses of Project
Partnerships (128,130) (232,401)
---------- ----------
Net Loss $ (155,643) $ (262,656)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (154,086) $ (260,030)
General Partners (1,557) (2,626)
----------- -----------
$ (155,643) $ (262,656)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (15.44) $ (26.06)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 7,015 $ 6,234
----------- -----------
Expenses:
Asset Management Fee-General Partner 12,580 12,615
General and Administrative:
General Partner 3,608 3,144
Other 4,525 5,564
Amortization 1,430 1,743
----------- -----------
Total Expenses 22,143 23,066
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (15,128) (16,832)
Equity in Losses of Project
Partnerships (137,151) (170,140)
---------- ----------
Net Loss $ (152,279) $ (186,972)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (150,757) $ (185,102)
General Partners (1,522) (1,870)
----------- -----------
$ (152,279) $ (186,972)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (24.10) $ (29.60)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 6,947 $ 6,119
----------- -----------
Expenses:
Asset Management Fee-General Partner 8,577 8,607
General and Administrative:
General Partner 2,254 1,965
Other 3,308 3,703
Amortization 1,405 1,406
----------- -----------
Total Expenses 15,544 15,681
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (8,597) (9,562)
Equity in Losses of Project
Partnerships (114,234) (102,323)
---------- ----------
Net Loss $ (122,831) $ (111,885)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (121,603) $ (110,766)
General Partners (1,228) (1,119)
----------- -----------
$ (122,831) $ (111,885)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (24.12) $ (21.96)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 7,605 $ 6,752
----------- -----------
Expenses:
Asset Management Fee-General Partner 7,116 6,930
General and Administrative:
General Partner 1,804 1,572
Other 2,763 3,246
Amortization 2,073 2,074
----------- -----------
Total Expenses 13,756 13,822
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (6,151) (7,070)
Equity in Losses of Project
Partnerships (87,596) (30,224)
---------- ----------
Net Loss $ (93,747) $ (37,294)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (92,809) $ (36,921)
General Partners (938) (373)
----------- -----------
$ (93,747) $ (37,294)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (18.10) $ (7.20)
============ ============
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 THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
TOTAL SERIES 7 - 11 2000 1999
---- ----
Revenues:
Interest Income $ 46,151 $ 41,225
----------- -----------
Expenses:
Asset Management Fee-General Partner 73,175 73,187
General and Administrative:
General Partner 19,991 17,423
Other 27,157 31,146
Amortization 10,721 12,851
----------- -----------
Total Expenses 131,044 134,607
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (84,893) (93,382)
Equity in Losses of Project
Partnerships (665,104) (789,766)
---------- ----------
Net Loss $ (749,997) $ (883,148)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (742,497) $ (874,316)
General Partners (7,500) (8,832)
----------- -----------
$ (749,997) $ (883,148)
=========== ===========
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 2000 1999
---- ----
Revenues:
Interest Income $ 23,654 $ 21,505
----------- -----------
Expenses:
Asset Management Fee-General Partner 43,976 44,104
General and Administrative:
General Partner 9,119 8,045
Other 11,294 12,007
Amortization 7,098 8,736
----------- -----------
Total Expenses 71,487 72,892
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (47,833) (51,387)
Equity in Losses of Project
Partnerships (358,024) (404,209)
---------- ----------
Net Loss $ (405,857) $ (455,596)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (401,798) $ (451,040)
General Partners (4,059) (4,556)
----------- -----------
$ (405,857) $ (455,596)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (38.65) $ (43.39)
============ ============
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 SIX MONTHS ENDED SEPTEMBER 30,
(Unaudited)
SERIES 8 2000 1999
---- ----
Revenues:
Interest Income $ 25,009 $ 22,360
----------- -----------
Expenses:
Asset Management Fee-General Partner 45,828 45,966
General and Administrative:
General Partner 10,054 8,870
Other 11,865 13,033
Amortization 4,528 6,520
----------- -----------
Total Expenses 72,275 74,389
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (47,266) (52,029)
Equity in Losses of Project
Partnerships (276,425) (438,478)
---------- ----------
Net Loss $ (323,691) $ (490,507)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (320,454) $ (485,602)
General Partners (3,237) (4,905)
----------- -----------
$ (323,691) $ (490,507)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (32.11) $ (48.66)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 13,847 $ 12,374
----------- -----------
Expenses:
Asset Management Fee-General Partner 25,160 25,230
General and Administrative:
General Partner 5,612 4,951
Other 6,691 7,475
Amortization 2,860 3,486
----------- -----------
Total Expenses 40,323 41,142
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (26,476) (28,768)
Equity in Losses of Project
Partnerships (282,954) (303,640)
---------- ----------
Net Loss $ (309,430) $ (332,408)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (306,336) $ (329,084)
General Partners (3,094) (3,324)
----------- -----------
$ (309,430) $ (332,408)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (48.98) $ (52.62)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 13,726 $ 12,128
----------- -----------
Expenses:
Asset Management Fee-General Partner 17,154 17,214
General and Administrative:
General Partner 3,507 3,094
Other 4,863 5,091
Amortization 2,810 2,812
----------- -----------
Total Expenses 28,334 28,211
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (14,608) (16,083)
Equity in Losses of Project
Partnerships (210,621) (151,302)
---------- ----------
Net Loss $ (225,229) $ (167,385)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (222,977) $ (165,711)
General Partners (2,252) (1,674)
----------- -----------
$ (225,229) $ (167,385)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (44.22) $ (32.86)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 15,061 $ 13,418
----------- -----------
Expenses:
Asset Management Fee-General Partner 14,232 13,860
General and Administrative:
General Partner 2,806 2,475
Other 4,327 4,546
Amortization 4,146 4,148
----------- -----------
Total Expenses 25,511 25,029
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (10,450) (11,611)
Equity in Losses of Project
Partnerships (149,129) (68,853)
---------- ----------
Net Loss $ (159,579) $ (80,464)
=========== ===========
Allocation of Net Loss:
Limited Partners $ (157,983) $ (79,659)
General Partners (1,596) (805)
----------- -----------
$ (159,579) $ (80,464)
=========== ===========
Net Loss Per Number of Limited
Partnership Units $ (30.81) $ (15.54)
============ ============
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 2000 1999
---- ----
Revenues:
Interest Income $ 91,297 $ 81,785
----------- -----------
Expenses:
Asset Management Fee-General Partner 146,350 146,374
General and Administrative:
General Partner 31,098 27,435
Other 39,040 42,152
Amortization 21,442 25,702
----------- -----------
Total Expenses 237,930 241,663
----------- -----------
Loss Before Equity in Losses
of Project Partnerships (146,633) (159,878)
Equity in Losses of Project
Partnerships (1,277,153) (1,366,482)
---------- ----------
Net Loss $(1,423,786) $(1,526,360)
=========== ===========
Allocation of Net Loss:
Limited Partners $(1,409,548) $(1,511,096)
General Partners (14,238) (15,264)
----------- -----------
$(1,423,786) $(1,526,360)
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:
Limited General
SERIES 7 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 2000 $ 2,670,270 $ (65,227) $ 2,605,043
Net Loss (401,798) (4,059) (405,857)
----------- ----------- -----------
Balance at September 30,2000 $ 2,268,472 $ (69,286) $ 2,199,186
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:
Limited General
SERIES 8 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 2000 $ 1,898,013 $ (69,338) $ 1,828,675
Net Loss (320,454) (3,237) (323,691)
----------- ----------- -----------
Balance at September 30,2000 $ 1,577,559 $ (72,575) $ 1,504,984
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:
Limited General
SERIES 9 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 2000 $ 2,563,166 $ (29,500) $ 2,533,666
Net Loss (306,336) (3,094) (309,430)
----------- ----------- -----------
Balance at September 30,2000 $ 2,256,830 $ (32,594) $ 2,224,236
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:
Limited General
SERIES 10 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 2000 $ 3,128,940 $ (13,021) $ 3,115,919
Net Loss (222,977) (2,252) (225,229)
----------- ----------- -----------
Balance at September 30,2000 $ 2,905,963 $ (15,273) $ 2,890,690
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:
Limited General
SERIES 11 Partners Partners Total
--------- -------- -----
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
============ ============ ============
Balance at March 31, 2000 $ 3,957,139 $ (6,484) $ 3,950,655
Net Loss (157,983) (1,596) (159,579)
----------- ----------- -----------
Balance at September 30,2000 $ 3,799,156 $ (8,080) $ 3,791,076
============ ============ ============
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2000 AND 1999:
Limited General
TOTAL SERIES 7 - 11 Partners Partners Total
--------- -------- -----
Balance at March 31, 1999 $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
============ ============ ============
Balance at March 31, 2000 $14,217,528 $ (183,570) $14,033,958
Net Loss (1,409,548) (14,238) (1,423,786)
----------- ----------- -----------
Balance at September 30,2000 $12,807,980 $ (197,808) $12,610,172
============ ============ ============
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 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (405,857) $ (455,596)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 7,098 8,736
Accreted Interest Income on Investments
in Securities (14,597) (15,167)
Equity in Losses of Project Partnerships 358,024 404,209
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 745 2,881
----------- -----------
Net Cash Used in Operating Activities (54,587) (54,937)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 17,460 17,551
----------- -----------
Net Cash Provided by Investing
Activities 17,460 17,551
----------- -----------
Decrease in Cash and Cash Equivalents (37,127) (37,386)
Cash and Cash Equivalents at Beginning of
Year 324,156 299,313
----------- -----------
Cash and Cash Equivalents at End of Year $ 287,029 $ 261,927
=========== ===========
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 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (323,691) $ (490,507)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 4,528 6,520
Accreted Interest Income on Investments
in Securities (13,100) (13,612)
Equity in Losses of Project Partnership 276,425 438,478
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 2,853 5,944
----------- -----------
Net Cash Used in Operating Activities (52,985) (53,177)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 10,216 13,973
----------- -----------
Net Cash Provided by Investing
Activities 10,216 13,973
----------- -----------
Decrease in Cash and Cash Equivalents (42,769) (39,204)
Cash and Cash Equivalents at Beginning of
Year 425,447 411,602
----------- -----------
Cash and Cash Equivalents at End of Year $ 382,678 $ 372,398
=========== ===========
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 9 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (309,430) $ (332,408)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 2,860 3,486
Accreted Interest Income on Investments
in Securities (7,883) (8,219)
Equity in Losses of Project Partnerships 282,954 303,640
Changes in Operating Assets and
Liabilities:
Increase in Payable to General Partners 7,868 8,096
----------- -----------
Net Cash Used in Operating Activities (23,631) (25,405)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 9,770 5,846
----------- -----------
Net Cash Provided by Investing
Activities 9,770 5,846
----------- -----------
Decrease in Cash and Cash Equivalents (13,861) (19,559)
Cash and Cash Equivalents at Beginning of
Year 209,964 195,618
----------- -----------
Cash and Cash Equivalents at End of Year $ 196,103 $ 176,059
=========== ===========
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 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (225,229) $ (167,385)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 2,810 2,812
Accreted Interest Income on Investments
in Securities (7,351) (7,576)
Equity in Losses of Project Partnerships 210,621 151,302
Changes in Operating Assets and
Liabilities:
Decrease in Payable to General Partners (10,248) (10,146)
----------- -----------
Net Cash Used in Operating Activities (29,397) (30,993)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 5,161 4,489
----------- -----------
Net Cash Provided by Investing
Activities 5,161 4,489
----------- -----------
Decrease in Cash and Cash Equivalents (24,236) (26,504)
Cash and Cash Equivalents at Beginning of
Year 226,070 216,566
----------- -----------
Cash and Cash Equivalents at End of Year $ 201,834 $ 190,062
=========== ===========
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 2000 1999
-------- ---- ----
Cash Flows from Operating Activities:
Net Loss $ (159,579) $ (80,464)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 4,146 4,148
Accreted Interest Income on Investments
in Securities (8,603) (8,774)
Equity in Losses of Project Partnerships 149,129 68,853
Changes in Operating Assets and
Liabilities:
Decrease in Payable to General Partners (15,075) (15,318)
----------- -----------
Net Cash Used in Operating Activities (29,982) (31,555)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 4,172 2,492
----------- -----------
Net Cash Provided by Investing
Activities 4,172 2,492
----------- -----------
Decrease in Cash and Cash Equivalents (25,810) (29,063)
Cash and Cash Equivalents at Beginning of
Year 230,874 223,024
----------- -----------
Cash and Cash Equivalents at End of Year $ 205,064 $ 193,961
=========== ===========
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 2000 1999
------------------- ---- ----
Cash Flows from Operating Activities:
Net Loss $(1,423,786) $(1,526,360)
Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Amortization 21,442 25,702
Accreted Interest Income on Investments
in Securities (51,534) (53,348)
Equity in Losses of Project Partnerships 1,277,153 1,366,482
Changes in Operating Assets and
Liabilities:
Decrease in Payable to General Partners (13,857) (8,543)
----------- -----------
Net Cash Used in Operating Activities (190,582) (196,067)
----------- -----------
Cash Flows from Investing Activities:
Distributions Received from Project
Partnerships 46,779 44,351
----------- -----------
Net Cash Provided by Investing
Activities 46,779 44,351
----------- -----------
Decrease in Cash and Cash Equivalents (143,803) (151,716)
Cash and Cash Equivalents at Beginning of
Year 1,416,511 1,346,123
----------- -----------
Cash and Cash Equivalents at End of Year $ 1,272,708 $ 1,194,407
=========== ===========
See accompanying notes to financial statements.
GATEWAY TAX CREDIT FUND III LTD.
(A Florida Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
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, 2000, 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.
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, 2000. 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, 2000 Balance Sheet includes Investment in Securities
consisting of U.S. Treasury Security Strips which represents their cost,
plus accreted interest income of $183,342 for Series 7, $159,019 for Series
8, $90,443 for Series 9, $79,002 for Series 10 and $89,629 for Series 11.
Gross Unrealized
Estimated Market Cost Plus Gains and
Value Accreted Interest (Losses)
----------------- ----------------- ----------------
Series 7 $ 446,101 $ 424,912 $ 21,189
Series 8 417,221 403,130 14,091
Series 9 270,953 268,203 2,750
Series 10 228,790 219,396 9,394
Series 11 258,968 241,581 17,387
As of September 30, 2000, the cost and accreted interest of debt
securities by contractual maturities is as follows:
Series 7 Series 8 Series 9
-------- -------- --------
Due with 1 year $ 55,827 $ 52,914 $ 31,409
After 1 year through 5 years 216,274 201,894 122,401
After 5 years through 10 years 152,811 148,322 114,393
Over 10 years 0 0 0
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 424,912 $ 403,130 $ 268,203
========== ========== ==========
Series 10 Series 11 Total
-------- -------- --------
Due with 1 year $ 24,550 $ 25,424 $ 190,124
After 1 year through 5 years 91,369 100,929 732,867
After 5 years through 10 years 82,786 115,228 613,540
Over 10 years 20,691 0 20,691
---------- ---------- ----------
Total Amount Carried on
Balance Sheet $ 219,396 $ 241,581 $1,557,222
========== ========== ==========
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, 2000 and 1999 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.
2000 1999
----- -----
Series 7 $ 43,976 $ 44,104
Series 8 45,828 45,966
Series 9 25,160 25,230
Series 10 17,154 17,214
Series 11 14,232 13,860
-------- --------
Total $146,350 $146,374
======== ========
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 $ 9,119 $ 8,045
Series 8 10,054 8,870
Series 9 5,612 4,951
Series 10 3,507 3,094
Series 11 2,806 2,475
-------- --------
Total $ 31,098 $ 27,435
======== ========
NOTE 5 - INVESTMENTS IN PROJECT PARTNERSHIPS:
As of September 30, 2000, 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,
2000 2000
-------------- -----------
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) (6,331,392) (5,973,368)
Cumulative distributions received from
Project Partnerships (175,011) (157,551)
----------- -----------
Investment in Project Partnerships before
adjustment 1,225,686 1,601,170
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 793,335 793,335
Accumulated amortization of acquisition
fees and expenses (163,876) (156,777)
------------ ------------
Investments in Project Partnerships $ 1,855,145 $ 2,237,728
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $942,371 for the period ended September 30, 2000 and cumulative
suspended losses of $650,567 for the year ended March 31, 2000 are not
included.
As of September 30, 2000, 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,
2000 2000
-------------- -----------
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) (6,767,552) (6,491,127)
Cumulative distributions received from
Project Partnerships (135,820) (125,604)
----------- -----------
Investment in Project Partnerships before
adjustment 682,733 969,374
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 549,773 549,773
Accumulated amortization of acquisition
fees and expenses (100,487) (95,959)
------------ ------------
Investments in Project Partnerships $ 1,132,019 $ 1,423,188
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $996,257 for the period ended September 30, 2000 and cumulative
suspended losses of $678,455 for the year ended March 31, 2000 are not
included.
As of September 30, 2000, 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,
2000 2000
-------------- -----------
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) (3,008,894) (2,725,940)
Cumulative distributions received from
Project Partnerships (95,506) (85,736)
----------- ----------
Investment in Project Partnerships before
adjustment 1,809,716 2,102,440
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 244,087 244,087
Accumulated amortization of acquisition
fees and expenses (45,514) (42,655)
------------ ------------
Investments in Project Partnerships $ 2,008,289 $ 2,303,872
============ ============
(1) In accordance with the Partnership's accounting policy to not carry
Investments in Project Partnerships below zero, cumulative suspended losses
of $135,106 for the period ended September 30, 2000 and cumulative
suspended losses of $78,588 for the year ended March 31, 2000 are not
included.
As of September 30, 2000, 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,
2000 2000
-------------- -----------
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) (1,422,381) (1,211,760)
Cumulative distributions received from
Project Partnerships (105,778) (100,617)
----------- ----------
Investment in Project Partnerships before
adjustment 2,386,513 2,602,295
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 196,738 196,738
Accumulated amortization of acquisition
fees and expenses (37,448) (34,636)
------------- ------------
Investments in Project Partnerships $ 2,545,803 $ 2,764,397
============= ============
(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, 2000 and cumulative suspended
losses of $0 for the year ended March 31, 2000 are not included.
As of September 30, 2000, 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,
2000 2000
-------------- -----------
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) (911,155) (762,026)
Cumulative distributions received from
Project Partnerships (82,638) (78,466)
----------- -----------
Investment in Project Partnerships before
adjustment 3,134,249 3,287,550
Excess of investment cost over the
underlying assets acquired:
Acquisition fees and expenses 290,335 290,335
Accumulated amortization of acquisition
fees and expenses (47,196) (43,048)
------------ -----------
Investments in Project Partnerships $ 3,377,388 $ 3,534,837
============= =============
(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, 2000 and cumulative suspended losses of
$0 for the year ended March 31, 2000 are not included.
The following is a summary of Investments in Project Partnerships as of:
TOTAL SERIES 7 - 11 SEPTEMBER 30, MARCH 31,
2000 2000
-------------- -----------
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) (18,441,374) (17,164,221)
Cumulative distributions received from
Project Partnerships (594,753) (547,974)
------------ -----------
Investment in Project Partnerships before
adjustment 9,238,897 10,562,829
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 (394,521) (373,075)
------------ ------------
Investments in Project Partnerships $10,918,644 $12,264,022
============ =============
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:
2000 1999
SERIES 7 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 3,294,232 $ 3,093,395
Investment properties, net 34,400,647 35,859,651
Other assets 35,594 27,467
------------ ------------
Total assets $37,730,473 $38,980,513
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 973,606 $ 1,080,885
Long-term debt 36,579,442 36,700,244
------------ ------------
Total liabilities 37,553,048 37,781,129
------------ ------------
Partners' equity (deficit)
Limited Partner 239,108 1,243,935
General Partners (61,683) (44,551)
----------- -----------
Total Partners' equity 177,425 1,199,384
----------- -----------
Total liabilities and partners' equity $37,730,473 $38,980,513
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,165,438 $ 2,085,302
Expenses: ------------ ------------
Operating expenses 1,439,252 1,358,836
Interest expense 631,230 517,626
Depreciation and amortization 751,348 761,712
------------ ------------
Total expenses 2,821,830 2,638,174
------------ ------------
Net loss $ (656,392) $ (552,872)
============ ============
Other partners' share of net loss $ (6,564) $ (5,529)
============ ============
Partnerships' share of net loss $ (649,828) $ (547,343)
Suspended losses 291,804 143,134
------------ ------------
Equity in Losses of Project Partnerships $ (358,024) $ (404,209)
============ ============
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:
2000 1999
SERIES 8 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 2,853,433 $ 2,621,048
Investment properties, net 36,416,155 38,449,419
Other assets 35,313 49,851
------------ ------------
Total assets $39,304,901 $41,120,318
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 1,139,316 $ 1,156,406
Long-term debt 38,620,980 38,706,743
------------ ------------
Total liabilities 39,760,296 39,863,149
------------ ------------
Partners' equity (deficit)
Limited Partner (92,484) 1,402,952
General Partners (362,911) (145,783)
----------- -----------
Total Partners' equity (deficit) (455,395) 1,257,169
----------- -----------
Total liabilities and partners' equity $39,304,901 $41,120,318
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 2,186,453 $ 2,065,901
Expenses: ------------ ------------
Operating expenses 1,427,613 1,298,284
Interest expense 562,807 506,385
Depreciation and amortization 798,526 803,400
------------ ------------
Total expenses 2,788,946 2,608,069
------------ ------------
Net loss $ (602,493) $ (542,168)
============ ============
Other partners' share of net loss $ (8,266) $ (6,265)
============ ============
Partnerships' share of net loss $ (594,227) $ (535,903)
Suspended losses 317,802 97,425
------------ ------------
Equity in Losses of Project Partnerships $ (276,425) $ (438,478)
============ ============
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:
2000 1999
SERIES 9 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,733,235 $ 1,670,589
Investment properties, net 20,574,469 21,361,541
Other assets 5,611 6,568
------------ ------------
Total assets $22,313,315 $23,038,698
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 354,578 $ 362,788
Long-term debt 20,445,841 20,504,253
------------ ------------
Total liabilities 20,800,419 20,867,041
------------ ------------
Partners' equity (deficit)
Limited Partner 1,660,103 2,291,805
General Partners (147,207) (120,148)
----------- -----------
Total Partners' equity 1,512,896 2,171,657
----------- -----------
Total liabilities and partners' equity $22,313,315 $23,038,698
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 1,100,331 $ 1,043,098
Expenses: ------------ ------------
Operating expenses 717,304 651,637
Interest expense 305,362 255,022
Depreciation and amortization 420,566 443,146
------------ ------------
Total expenses 1,443,232 1,349,805
------------ ------------
Net loss $ (342,901) $ (306,707)
============ ============
Other partners' share of net loss $ (3,429) $ (3,067)
============ ============
Partnerships' share of net loss $ (339,472) $ (303,640)
Suspended losses 56,518 0
------------ ------------
Equity in Losses of Project Partnerships $ (282,954) $ (303,640)
============ ============
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:
2000 1999
SERIES 10 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,343,827 $ 1,345,308
Investment properties, net 14,519,761 15,003,743
Other assets 3,789 5,989
------------ ------------
Total assets $15,867,377 $16,355,040
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 280,428 $ 289,352
Long-term debt 13,393,689 13,418,579
------------ ------------
Total liabilities 13,674,117 13,707,931
------------ ------------
Partners' equity (deficit)
Limited Partner 2,390,346 2,773,494
General Partners (197,086) (126,385)
----------- -----------
Total Partners' equity 2,193,260 2,647,109
----------- -----------
Total liabilities and partners' equity $15,867,377 $16,355,040
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 713,644 $ 710,112
Expenses: ------------ ------------
Operating expenses 527,010 453,078
Interest expense 152,607 162,461
Depreciation and amortization 247,824 248,280
------------ ------------
Total expenses 927,441 863,819
------------ ------------
Net loss $ (213,797) $ (153,707)
============ ============
Other partners' share of net loss $ (3,176) $ (2,405)
============ ============
Partnerships' share of net loss $ (210,621) $ (151,302)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (210,621) $ (151,302)
============ ============
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:
2000 1999
SERIES 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 1,215,585 $ 1,093,783
Investment properties, net 12,825,775 13,401,509
Other assets 14,512 7,113
------------ ------------
Total assets $14,055,872 $14,502,405
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 331,863 $ 308,954
Long-term debt 10,608,709 10,736,223
------------ ------------
Total liabilities 10,940,572 11,045,177
------------ ------------
Partners' equity (deficit)
Limited Partner 3,146,070 3,416,236
General Partners (30,770) 40,992
----------- -----------
Total Partners' equity 3,115,300 3,457,228
----------- -----------
Total liabilities and partners' equity $14,055,872 $14,502,405
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 771,597 $ 781,733
Expenses: ------------ ------------
Operating expenses 451,090 387,736
Interest expense 221,266 214,950
Depreciation and amortization 257,847 254,810
------------ ------------
Total expenses 930,203 857,496
------------ ------------
Net loss $ (158,606) $ (75,763)
============ ============
Other partners' share of net loss $ (9,477) $ (6,910)
============ ============
Partnerships' share of net loss $ (149,129) $ (68,853)
Suspended losses 0 0
------------ ------------
Equity in Losses of Project Partnerships $ (149,129) $ (68,853)
============ ============
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:
2000 1999
TOTAL SERIES 7 - 11 ---- ----
SUMMARIZED BALANCE SHEETS
Assets:
Current assets $ 10,440,312 $ 9,824,123
Investment properties, net 118,736,807 124,075,863
Other assets 94,819 96,988
------------ ------------
Total assets $129,271,938 $133,996,974
============ ============
Liabilities and Partners' Equity:
Current liabilities $ 3,079,791 $ 3,198,385
Long-term debt 119,648,661 120,066,042
------------ ------------
Total liabilities 122,728,452 123,264,427
------------ ------------
Partners' equity (deficit)
Limited Partner 7,343,143 11,128,422
General Partners (799,657) (395,875)
----------- -----------
Total Partners' equity 6,543,486 10,732,547
----------- -----------
Total liabilities and partners' equity $129,271,938 $133,996,974
============ ============
SUMMARIZED STATEMENTS OF OPERATIONS
Rental and other income $ 6,937,463 $ 6,686,146
Expenses: ------------ ------------
Operating expenses 4,562,269 4,149,571
Interest expense 1,873,272 1,656,444
Depreciation and amortization 2,476,111 2,511,348
------------ ------------
Total expenses 8,911,652 8,317,363
------------ ------------
Net loss $ (1,974,189) $ (1,631,217)
============ ============
Other partners' share of net loss $ (30,912) $ (24,177)
============ ============
Partnerships' share of net loss $ (1,943,277) $ (1,607,040)
Suspended losses 666,124 240,559
------------ ------------
Equity in Losses of Project Partnerships $ (1,277,153) $ (1,366,481)
============ ============
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, 2000 and September 30, 1999. The General and
Administrative expenses - General Partner and General and Administrative
expenses - Other for the three and six months ended September 30, 2000 are
comparable to September 30, 1999. 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, 2000 decreased
from $404,209 for the six months ended September 30, 1999 to $358,024 as a
result of not including losses of $291,804 in 2000 as compared to $143,134
in 1999, 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, 2000, the Series had $287,029 of short-term investments
(Cash and Cash Equivalents). It also had $424,912 in Zero Coupon
Treasuries with annual maturities providing $57,000 in fiscal year 2001
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
$405,857 for the six months ended September 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $358,024 and the
changes in operating assets and liabilities, net cash used in operating
activities was $54,587. Cash provided by investing activities totaled
$17,460 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, 2000
decreased from $438,478 for the six months ended September 30, 1999 to
$276,425 as a result of not including losses of $317,802 in 2000 as
compared to $97,425 in 1999, as these losses would reduce the investment in
certain Project Partnerships below zero.
At September 30, 2000, the Series had $382,678 of short-term investments
(Cash and Cash Equivalents). It also had $403,130 in Zero Coupon
Treasuries with annual maturities providing $54,000 in fiscal year 2001
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
$323,691 for the six months ended September 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $276,425 and the
changes in operating assets and liabilities, net cash used in operating
activities was $52,985. Cash provided by investing activities totaled
$10,216, 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, 2000 were comparable
for the six months ended September 30, 1999.
At September 30, 2000, the Series had $196,103 of short-term investments
(Cash and Cash Equivalents). It also had $268,203 in Zero Coupon
Treasuries with annual maturities providing $32,000 in fiscal year 2001
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
$309,430 for the six months ended September 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $282,954 and the
changes in operating assets and liabilities, net cash used in operating
activities was $23,631. Cash provided by investing activities totaled
$9,770, 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, 2000 increased from
$151,302 for the six months ended September 30, 1999 to $210,621 as a
result of increased repairs and maintenance expense as the buildings age.
At September 30, 2000, the Series had $201,834 of short-term investments
(Cash and Cash Equivalents). It also had $219,396 in Zero Coupon
Treasuries with annual maturities providing $25,000 in fiscal year 2001
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
$225,229 for the six months ended September 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $210,621 and the
changes in operating assets and liabilities, net cash used in operating
activities was $29,397. 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 six months ended September 30, 2000 increased from
$68,853 for the six months ended September 30, 1999 to $149,129 as a result
of increased repairs and maintenance expense as the buildings age.
At September 30, 2000, the Series had $205,064 of short-term investments
(Cash and Cash Equivalents). It also had $241,581 in Zero Coupon
Treasuries with annual maturities providing $26,000 in fiscal year 2001
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
$159,579 for the six months ended September 30, 2000. However, after
adjusting for Equity in Losses of Project Partnerships of $149,129 and the
changes in operating assets and liabilities, net cash used in operating
activities was $29,982. Cash provided by investing activities totaled
$4,172, 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: November 13, 2000 By:/s/ Ronald M. Diner
Ronald M. Diner
President
Date: November 13, 2000 By:/s/ Sandra L. Furey
Sandra L. Furey
Secretary and Treasurer
