<PAGE> 1
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
(Mark One)
[X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________________ to _______________.
Commission File Number 0-20180
INTERNATIONAL REALTY GROUP, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Delaware 62-1277260
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
111 Northwest 183rd Street, Suite 518, Miami, Florida 33169
- ------------------------------------------------------------------------------------------------------------------------
(Address of principal executive office) (Zip Code)
</TABLE>
305-944-8811
------------
(Registrant's telephone number, including area code)
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 No X
----- -----
The number of shares outstanding of each of Issuer's classes of common equity as
of November 1, 1997.
Common Stock, par value $.001 9,954,313
----------------------------- ------------------
Title of Class Number of Shares
Transitional Small Business Disclosure Format yes no X
------ ------
<PAGE> 2
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INTERNATIONAL REALTY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1997
(UNAUDITED, NOTE 1)
<TABLE>
<S> <C> <C>
ASSETS
REAL ESTATE, AT COST:
PROPERTY HELD FOR FUTURE DEVELOPMENT $ 10,556,100
RECEIVABLES:
DUE FROM CONTROLLING SHAREHOLDER 2,142,500
ACCOUNTS RECEIVABLE, DEEMED FULLY COLLECTIBLE 130,300
------------
2,272,800
CASH AND CASH EQUIVALENTS 41,200
FURNITURE, EQUIPMENT, AND IMPROVEMENTS 144,500
EXCESS OF COST OVER ESTIMATED FAIR VALUE OF
NET ASSETS ACQUIRED 110,000
OTHER ASSETS 125,600
-------------
TOTAL $ 13,250,100
=============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
MORTGAGES AND NOTES PAYABLE (NOTE 2) $ 1,221,600
ACCOUNTS PAYABLE 214,000
ACCRUED AND OTHER LIABILITIES 873,300
------------
$ 2,308,900
MINORITY INTEREST 1,326,800
SHAREHOLDERS' EQUITY:
COMMON STOCK, $.001 PAR; AUTHORIZED 10,000,000
SHARES; 9,954,313 SHARES ISSUED AT 9/30/97 10,000
CAPITAL IN EXCESS OF PAR 4,917,400
CONVERTIBLE NOTES (NOTE 3) 9,707,400
CUMULATIVE TRANSLATION ADJUSTMENT (220,400)
ACCUMULATED DEFICIT (4,784,400)
------------
9,629,900
LESS SHARES OF COMMON STOCK HELD IN TREASURY,
AT COST 15,500
------------
TOTAL SHAREHOLDERS' EQUITY 9,614,500
------------
TOTAL $ 13,250,100
============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
1
<PAGE> 3
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 1. FINANCIAL STATEMENTS, CONTINUED:
INTERNATIONAL REALTY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(UNAUDITED, NOTE 1)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30
---------------------------------- ------------------------------------
1997 1996 1997 1996
----------------- ---------------- ----------------- ------------------
<S> <C> <C> <C> <C>
REVENUES:
REVENUES FROM SERVICES PROVIDED $ 179,600 $ 89,900 $ 579,000 $ 456,100
----------- ----------- ----------- -----------
OPERATING EXPENSES:
AMORTIZATION AND DEPRECIATION 13,800 15,500 41,800 42,900
DIRECT 109,100 147,800 334,000 309,800
PAYROLL AND RELATED BENEFITS 52,300 54,700 150,300 201,700
SELLING, GENERAL & ADMINISTRATIVE 39,000 162,700 113,200 312,500
----------- ----------- ----------- -----------
214,200 380,700 639,200 866,900
----------- ----------- ----------- -----------
LOSS BEFORE OTHER INCOME (EXPENSE), MINORITY
INTEREST & PROVISION FOR INCOME
TAXES (BENEFIT) (34,600) (290,800) (60,300) (410,900)
OTHER INCOME (EXPENSE)
INTEREST INCOME 100 2,000 600 59,200
INTEREST EXPENSE (21,500) (30,800) (72,800) (95,400)
GAIN (LOSSES) ON EXCHANGE RATE FLUCTUATIONS 10,800 64,400 1,200 (78,100)
OTHER INCOME (EXPENSES) 5,200 -- 7,400 --
----------- ----------- ----------- -----------
LOSS BEFORE MINORITY INTEREST &
PROVISION FOR INCOME TAXES (BENEFIT) (40,000) (255,100) (123,900) (525,100)
MINORITY INTEREST IN INCOME (LOSS) OF
SUBSIDIARIES 1,800 16,800 (15,000) (10,200)
----------- ----------- ----------- -----------
LOSS BEFORE PROVISION FOR INCOME TAXES (41,700) (271,900) (108,900) (514,900)
PROVISION FOR INCOME TAXES 600 -- 600 32,400
----------- ----------- ----------- -----------
NET LOSS (42,400) $ (271,900) $ (109,600) $ (547,300)
=========== =========== =========== ===========
LOSS PER COMMON SHARE $ (0.00) $ (0.03) $ (0.01) $ (0.05)
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES OF COMMON STOCK 9,954,187 9,954,187 9,954,187 9,954,187
=========== =========== =========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
2
<PAGE> 4
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 1. FINANCIAL STATEMENTS, CONTINUED:
INTERNATIONAL REALTY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED, NOTE 1)
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<CAPTION>
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
SOURCES OF CASH:
CLIENTS AND OTHER $ 776,500
INTEREST 600
---------------
777,100
---------------
USES OF CASH:
CASH PAID FOR:
DIRECT COSTS 508,600
OPERATING 113,200
PAYROLL AND RELATED BENEFITS 150,300
TAXES 600
INTEREST 1,500
---------------
774,200
---------------
CASH PROVIDED BY OPERATING ACTIVITIES $ 2,900
CASH FLOWS FROM INVESTING ACTIVITIES:
ACQUISITION OF:
EQUIPMENT (3,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
SOURCES OF CASH:
DUE FROM CONTROLLING SHAREHOLDER 100,000
USES OF CASH:
PAYMENT OF NOTES PAYABLE 61,700
---------------
CASH USED IN FINANCING ACTIVITIES 38,300
EFFECT OF EXCHANGE RATES ON CASH AND (4,600)
CASH EQUIVALENTS ----------
INCREASE IN CASH AND CASH EQUIVALENTS 33,600
CASH AND EQUIVALENTS, BEGINNING 7,600
----------
CASH AND EQUIVALENTS, ENDING $ 41,200
==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
3
<PAGE> 5
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 1. FINANCIAL STATEMENTS, CONTINUED:
INTERNATIONAL REALTY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
NINE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED, NOTE 1)
- -------------------------------------------------------------------------------
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RECONCILIATION OF NET LOSS TO CASH FLOWS
PROVIDED BY OPERATING ACTIVITIES:
NET LOSS $ (109,600)
----------
ADJUSTMENTS TO RECONCILE NET LOSS TO
CASH PROVIDED BY OPERATING ACTIVITIES:
AMORTIZATION AND DEPRECIATION $ 41,800
MINORITY INTEREST (15,000)
CURRENCY FLUCTUATION (1,200)
CHANGES IN ASSETS & LIABILITIES:
ACCOUNTS RECEIVABLE 190,200
OTHER ASSETS (99,600)
ACCOUNTS PAYABLE: (130,600)
ACCRUED LIABILITIES AND OTHER 126,900
---------
TOTAL ADJUSTMENTS 112,500
---------
CASH PROVIDED BY OPERATING ACTIVITIES $ 2,900
=========
</TABLE>
4
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS.
<PAGE> 6
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 1. FINANCIAL STATEMENTS, CONTINUED:
INTERNATIONAL REALTY GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1997
(1) PRINCIPLES OF STATEMENT PRESENTATION
The unaudited consolidated financial statements include all adjustments which
are necessary, in the opinion of management, to fairly reflect the Company's
financial position and results of operations. All such adjustments are of a
normal recurring nature. The statements have been prepared using the accounting
policies described in the Company's 1996 Audited Financial Statements contained
in the Company's Form 10-KSB for the year ended December 31, 1996.
The Company has changed its balance sheet presentation to a non-classified
balance sheet due to the change from principally the service industry to
principally real estate holdings and made other reclassifications (See Item 2.
Management's Discussion and Analysis or Plan of Operations). Such change in
presentation had no effect on operations. Balances for the three and nine months
ended September 30, 1997 have been reclassified where appropriate to conform to
the comparable 1996 period's financial statement presentation.
(2) MORTGAGE AND NOTES PAYABLE
Mortgages and Notes Payable at September 30, 1997 is summarized as follows:
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Mortgage Note, bank $ 468,900
Note Payable, bank 639,400
----------
Total Payable to banks $1,108,300
Note Payable, unsecured 48,000
Note Payable, related party 15,300
Shareholder Loan 50,000
----------
$1,221,600
----------
</TABLE>
(3) CONVERTIBLE NOTE
Convertible Notes issued at August 19, 1996 are summarized as follows:
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$4,858,828 convertible into 52,875,030 shares
$4,848,558 convertible into 52,763,270 shares
---------- ------------------
$9,707,386 convertible into 105,638,300 shares
</TABLE>
Item 2. Management's Discussion and Analysis or Plan of Operations.
The following discussion and analysis covers any material changes in
financial condition since December 31, 1996 and any material changes in the
results of operations for the three and nine months ended September 30, 1997, as
compared to the same period in 1996. This discussion and analysis should be read
in conjunction with "Management's Discussion and Analysis or Plan of Operations"
included in the Company's Form 10-KSB for the year ended December 31, 1996
5
<PAGE> 7
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 2, Management's Discussion and Analysis or Plan of Operations, CONTINUED:
GENERAL
The Company consummated a share exchange transaction on August 19, 1996
resulting in a reverse acquisition which has been accounted for in a manner
similar to a pooling of interests. Accordingly, the consolidated financial
statements for the three and nine month period ending September 30, 1997 and the
corresponding 1996 period have been retroactively restated to include the
accounts of the companies transferred in such pooling of interest.
ORGANIZATION AND BUSINESS
INTERNATIONAL REALTY GROUP, INC., together with its consolidated subsidiaries
(the "Company"), is a provider of commercial real estate and business valuations
and appraisals in the United States and Hungary and land development primarily
in Mexico. The Company will be developing its Mexican properties into various
resort and commercial developments. Once developed they will engage in the
marketing and operation of its properties and other ancillary real estate
activities. The Company is in the preliminary stages of seeking financing to
commence development projects. No development of the properties located in
Mexico will occur until after the conversion of the notes issued to DSC and
Hemisphere, which notes are collateralized by the properties located in Mexico.
The Company was incorporated in Delaware on April 13, 1970 and operated under
the name Bosco Resources Corporation until June 10, 1973, when it ceased
operations after its assets were nationalized without compensation by the Libyan
Government. The Company remained inactive until December 15, 1986 when it
acquired all of the outstanding shares of APPRAISAL GROUP, INC. in exchange for
4,150,000 shares of common stock (after a 1 for 8 reverse split) and changed its
name to APPRAISAL GROUP INTERNATIONAL INC. Subsequently, on August 10, 1989, the
Company's name was changed to INTERNATIONAL REALTY GROUP, INC.
RESULTS OF OPERATIONS:
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1996
Revenues increased for the three months ended September 30, 1997 totaled
$179,600 as compared to $89,900 for the same period in 1996, an increase of
approximately $89,700 or 50%. The Company's domestic and foreign valuation
subsidiaries Appraisal Group International, Inc. (AGII) based in Miami, Florida
and Appraisal Group International Rt.(AGI RT.) based in Budapest, Hungary
accounted for the Company's revenues. AGII had revenues of $165,400 for the
period, and AGI RT. had revenues of $14,200.
Operating expenses for the three months ended September 30, 1997 were $214,200
compared to $380,700 for the comparable period in 1996, a decrease of $166,500
or 44%. Of the total expenses, foreign operations accounted for 9% and domestic
operations accounted for 91%.
Selling, General and Administrative expenses for the period were $39,000
compared to $162,700 for the same period in 1996, a decrease of $123,700. A
significant amount of such decrease is attributable to the merger transaction
which closed during the 1996 comparable period, and the recognition of related
expenses for the merger was recognized during this period. Payroll and Related
Benefits for the period decreased from $54,700 in 1996 to $52,300 for the
current period. Direct expenses including the production of appraisal reports,
fees and related expenses for the period decreased from $147,800 in 1996 to
$109,100 for the current period. Amortization and Depreciation expense was
consistent between the periods.
6
<PAGE> 8
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 2, Management's Discussion and Analysis or Plan of Operations, CONTINUED:
Interest expense for the three months ended September 30, 1997 was $21,500
compared to $30,800 for the same period in 1996. The majority of interest
expense is attributable to debt for properties located in Mexico. Currency
translation gain was $10,800 for the current 1997 period compared to $64,400 for
the comparable period in 1996. Such translation gain is attributable to the
currency fluctuations of the Mexican peso during each such period.
NINE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1996
Revenues for the nine months ended September 30, 1997 totaled $579,000 as
compared to $456,100 for the same period in 1996, an increase of $122,900 or
22%. The Company's domestic and foreign valuation subsidiaries accounted for the
Company's revenues. AGII had revenues of $498,000 for the period, compared to
$243,100 for the same period in 1996, an increase of approximately 50%. AGII has
instituted certain marketing programs to reverse its declining sales over the
last few years, with the results beginning to show some effect. AGI RT. had
revenues of $71,000, compared to $199,500 for the same period in 1996. The
continued decline is attributed to the decrease in appraisal assignments with
the Hungarian government which is at the end of the privatization process. The
Company is focusing its marketing efforts towards expanding its presence in the
field of corporate liquidations on behalf of the Hungarian court.
Operating expenses for the nine months ended September 30, 1997 were $639,200
compared to $866,900 for the comparable period in 1996, a decrease of $227,700.
Of the total expenses, foreign operations accounted for 9% and domestic
operations accounted for 91%. Influencing the overall decline in expenses are
the following factors: (i) the expenses associated with the merger transaction
during 1996 and (ii) an overall endeavor by the Company to reduce its operating
expenses both on a foreign and domestic basis.
Selling, General and Administrative expenses for the period decreased from
$312,500 in 1996 to $113,200 for the current period, a decrease of $199,300.
Payroll and Related Benefits for the period decreased from $201,700 in 1996 to
$150,300 for the current period. Direct expenses including the production of
appraisal reports, fees and related expenses for the period increased from
$309,800 in 1996 to $334,000 for the current period, an increase of $24,200 or
7%, in spite of the fact revenues increased 22%. Amortization and Depreciation
expense was consistent between the periods.
Interest expense for the nine months ended September 30, 1997 were $72,800
compared to $95,400 for the same period in 1996. The majority of interest
expense is attributable to debt for properties located in Mexico. There was a
currency translation gain of $1,200 for the nine-month period ended September
30, 1997 compared to a currency translation expense of $78,100 for the
comparable nine-month period in 1996. Such translation gain or expense is
attributable to the currency fluctuations of the Mexican peso during each such
period.
LIQUIDITY AND CAPITAL RESOURCES:
Cash Flow From Operations. The Company incurred for the nine months ended
September 30, 1997, a net loss of $109,600 compared to a net loss of $547,300
for the comparable period in 1996. Cash flow provided by operations was $2,900.
Working Capital. The Company's current assets, consisting of cash and
receivables of approximately $2,272,800 exceed its current liabilities
consisting of accounts payable and accrued liabilities of approximately
$1,087,300, by approximately $1,185,500. Included in current liabilities are
accrued officer's salaries amounting to approximately $522,300.
7
<PAGE> 9
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 2, Management's Discussion and Analysis or Plan of Operations, CONTINUED:
Long Term Liabilities: Mortgage and Notes Payable for the nine months ended
September 30, 1997 were $1,221,600. Of this amount, mortgages to Mexican banks
for property currently held for future developed totaled $1,108,300. Of the
remainding $113,300, $97,900 is attributable to domestic operations ($50,000
shareholder loans and $47,500 notes payable) and $15,600 to foreign operations.
Land Development: Pursuant to the Company's reverse merger transaction with DSC,
S.A. de C.V. ("DSC") and Hemisphere Developments Limited ("Hemisphere"), the
Company acquired interests in five properties located in Mexico. The Company
believes that each of the Mexican properties is suitable for future development
as either a resort, residential or commercial property. Since the properties
secure the Company's obligations under the convertible notes issued to DSC and
Hemisphere in the aggregate amount of $9,707,386 ("Notes"). The Company does not
plan to undertake any development of such properties until after the Notes have
been converted. While no assurances can be given, the Company expects that the
conversion of the Notes (convertible into an aggregate of 105,638,300 shares of
the Company's Common Stock) will occur in the first quarter of 1998. The Company
has no interest obligations under the Notes. Any development of the properties
thereafter is contingent upon the Company obtaining necessary financing.
Potential sources of financing include mortgage financing from financial
institutions located in the United States or Mexico, or the issuance of equity
securities of the Company. The Company has no present understanding, agreement
or commitment for financing any such property and there can be no assurance that
financing will be available to the Company on commercially reasonable terms or
at all.
Currency Risk. The Company's operating entities are not subject to direct
currency conversion risks. The Company's primary operating entities provide
consulting services to their clients in their own geographic locations. All
domestic consulting services performed by AGII based in Miami, Florida are
reported and paid in U.S. dollars. All foreign consulting services, assets and
liabilities of AGI RT. based in Hungary, are translated into U.S. dollars at
period-end exchange rates with the resulting translation adjustment recorded in
accumulated translation adjustment in shareholder's equity.
The functional currency of the Mexican companies is the U.S. dollar. Therefore,
all peso denominated transactions represent foreign currency transactions.
Foreign currency transaction gains and losses are included in determining net
income. All foreign currency transaction gains or losses in 1995 or 1996 were
attributable to the Mexican operations.
The Hungarian exchange rate used for the nine months ended September 30, 1997
and 1996 were HUF 195.48 and HUF 154.7, respectively. The Mexican exchange rate
used for the nine months ended September 30, 1997 and 1996 were MNP 7.8199 and
MNP 7.5374, respectively.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"), the Company is hereby
providing cautionary statements identifying important factors that could cause
the Company's actual results to differ materially from those projected in
forward-looking statements (as such term is defined in the Reform Act) made by
or on behalf of the Company herein or orally, whether in presentations, in
response to questions or otherwise. Any statements that express, or involve
discussions as to expectations, beliefs, plans, objectives, assumptions or
future events or performance (often, but not always, through the use of words or
phrases such as "will result", "are expected to", "will continue", "is
anticipated", "estimated", "projection" and "outlook") are not historical facts
and may be forward-looking and, accordingly, such statements involve estimates,
assumptions, and uncertainties which could cause actual results to differ
materially from those expressed in the forward-
8
<PAGE> 10
PART I: FINANCIAL INFORMATION, CONTINUED
ITEM 2, Management's Discussion and Analysis or Plan of Operations, CONTINUED:
looking statements. Such uncertainties include, among other, the following: (i)
the Company"s ability to obtain additional financing to implement its business
strategy; (ii) real estate investment risks, including the potential for
increases in real property taxes; (iii) real estate development risks, including
obtaining building permits or necessary zoning changes, construction delays
strikes, adverse weather conditions and other conditions beyond the control of
the Company; (iv) illiquidity of real estate investments; (v) the financial
condition of the Company's clients; (vi) imposition of new regulatory
requirements affecting the Company; (vii) a downturn in general or local
economic conditions where the Company owns real property; (viii) the delay or
failure to properly manage growth and successfully integrate acquired companies
and operations; (ix) lack of geographic diversification; (x) effect of uninsured
loss and (ix) other factors which are described in further detail in the
Company's filings with the Securities and Exchange Commission.
The Company cautions that actual results or outcomes could differ materially
from those expressed in any forward-looking statements made by or on behalf of
the Company. Any forward-looking statement speaks only as of the date on which
such statement is made, and the Company undertakes no obligation to update any
forward-looking statement or statements to reflect events or circumstances after
the date on which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it is not
possible for management to predict all of such factors. Further, management
cannot assess the impact of each such factor on the business or the extent to
which any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements.
PART II: OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS
None
ITEM 2: CHANGES IN SECURITIES
None
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5: OTHER INFORMATION
None
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits
27.1 Financial Data Schedule (For SEC purposes only)
B. Reports on Form 8-K
None
9
<PAGE> 11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
INTERNATIONAL REALTY GROUP, INC.
--------------------------------
(REGISTRANT)
DATE: DECEMBER 10, 1997 /s/ RICHARD M. BRADBURY
---------------------------------
RICHARD M. BRADBURY,
PRESIDENT, AND
CHIEF FINANCIAL OFFICER
10
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF INTERNATIONAL REALTY FOR THE THREE MONTH PERIOD ENDED
SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CURRENCY> U.S. DOLLAR
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 41,200
<SECURITIES> 0
<RECEIVABLES> 130,300
<ALLOWANCES> 0
<INVENTORY> 10,556,100<F1>
<CURRENT-ASSETS> 0
<PP&E> 388,200
<DEPRECIATION> 243,700
<TOTAL-ASSETS> 13,250,100
<CURRENT-LIABILITIES> 1,087,300
<BONDS> 1,221,600
0
0
<COMMON> 10,000
<OTHER-SE> 9,604,500
<TOTAL-LIABILITY-AND-EQUITY> 13,250,100
<SALES> 0
<TOTAL-REVENUES> 588,200
<CGS> 0
<TOTAL-COSTS> 639,200
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 72,800
<INCOME-PRETAX> (108,900)
<INCOME-TAX> 600
<INCOME-CONTINUING> (109,600)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (109,600)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> 0
<FN>
<F1>INVENTORY CONSISTS OF REAL ESTATE, AT COST, CURRENTLY HELD FOR FUTURE
DEVELOPMENT.
</FN>
</TABLE>
