<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 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 0-23158
CRONOS GLOBAL INCOME FUND XIV, L.P.
(Exact name of registrant as specified in its charter)
California 94-3163375
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
444 Market Street, 15th Floor, San Francisco, California 94111
(Address of principal executive offices) (Zip Code)
(415) 677-8990
(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 [X] No [ ]
<PAGE> 2
CRONOS GLOBAL INCOME FUND XIV, L.P.
REPORT ON FORM 10-Q FOR THE QUARTERLY
PERIOD ENDED JUNE 30, 1997
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - June 30, 1997 (unaudited) and December 31, 1996 4
Statements of Operations for the three and six months ended June 30, 1997 and 1996 (unaudited) 5
Statements of Cash Flows for the six months ended June 30, 1997 and 1996 (unaudited) 6
Notes to Financial Statements (unaudited) 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of 10
Operations
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 13
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Presented herein are the Registrant's balance sheets as of June 30, 1997
and December 31, 1996, statements of operations for the three and six
months ended June 30, 1997 and 1996, and statements of cash flows for
the six months ended June 30, 1997 and 1996.
3
<PAGE> 4
CRONOS GLOBAL INCOME FUND XIV, L.P.
BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
----------- -----------
<S> <C> <C>
Assets
------
Current assets:
Cash and cash equivalents, includes $1,183,724 at June 30, 1997
and $1,730,128 at December 31, 1996 in interest-bearing accounts $ 1,215,001 $ 1,730,504
Net lease receivables due from Leasing Company
(notes 1 and 2) 1,052,809 1,173,515
----------- -----------
Total current assets 2,267,810 2,904,019
----------- -----------
Container rental equipment, at cost 53,106,373 52,798,896
Less accumulated depreciation 12,091,152 10,575,957
----------- -----------
Net container rental equipment 41,015,221 42,222,939
----------- -----------
Organizational costs, net 297,239 435,983
----------- -----------
$43,580,270 $45,562,941
=========== ===========
Partners' Capital
Partners' capital:
General partner $ 333 $ 776
Limited partners 43,579,937 45,562,165
----------- -----------
Total partners' capital 43,580,270 45,562,941
----------- -----------
$43,580,270 $45,562,941
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
CRONOS GLOBAL INCOME FUND XIV, L.P.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------- --------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net lease revenue (notes 1 and 3) $1,277,794 $1,796,352 $2,498,145 $3,566,930
Other operating expenses:
Depreciation 844,329 842,545 1,689,910 1,686,097
Other general and administrative expenses 29,907 22,016 51,165 44,654
---------- ---------- ---------- ----------
874,236 864,561 1,741,075 1,730,751
---------- ---------- ---------- ----------
Earnings from operations 403,558 931,791 757,070 1,836,179
Other income:
Interest income 14,636 22,049 34,692 43,222
Net gain on disposal of equipment 18,589 10,693 52,892 52,791
---------- ---------- ---------- ----------
33,225 32,742 87,584 96,013
---------- ---------- ---------- ----------
Net earnings $ 436,783 $ 964,533 $ 844,654 $1,932,192
========== ========== ========== ==========
Allocation of net earnings:
General partner $ 66,932 $ 89,030 $ 141,002 $ 183,376
Limited partners 369,851 875,503 703,652 1,748,816
---------- ---------- ---------- ----------
$ 436,783 $ 964,533 $ 844,654 $1,932,192
========== ========== ========== ==========
Limited partners' per unit share of net earnings $ .13 $ .30 $ .24 $ .59
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
CRONOS GLOBAL INCOME FUND XIV, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
-----------------------------
June 30, June 30,
1997 1996
----------- -----------
<S> <C> <C>
Net cash provided by operating activities $ 2,550,061 $ 3,421,060
Cash flows provided by (used in) investing activities:
Proceeds from sale of container rental equipment 240,941 180,555
Purchase of container rental equipment (456,362) (122,400)
Acquisition fees paid to general partner (22,818) (306,120)
----------- -----------
Net cash used in investing activities (238,239) (247,965)
----------- -----------
Cash flows used in financing activities:
Distributions to partners (2,827,325) (3,664,942)
----------- -----------
Net decrease in cash and cash equivalents (515,503) (491,847)
Cash and cash equivalents at January 1 1,730,504 1,919,339
----------- -----------
Cash and cash equivalents at June 30 $ 1,215,001 $ 1,427,492
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
CRONOS GLOBAL INCOME FUND XIV, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(1) Summary of Significant Accounting Policies
(a) Nature of Operations
Cronos Global Income Fund XIV, L.P. (the "Partnership") is a
limited partnership organized under the laws of the State of
California on July 30, 1992, for the purpose of owning and
leasing marine cargo containers. Cronos Capital Corp. ("CCC") is
the general partner and, with its affiliate Cronos Containers
Limited (the "Leasing Company"), manages the business of the
Partnership. The Partnership shall continue until December 31,
2012, unless sooner terminated upon the occurrence of certain
events.
The Partnership commenced operations on January 29, 1993 when
the minimum subscription proceeds of $2,000,000 were obtained.
As of June 30, 1997, the Partnership operated 8,283 twenty-foot,
3,563 forty-foot and 98 forty-foot high-cube marine dry cargo
containers and 454 twenty-foot and 340 forty-foot refrigerated
cargo containers.
The Partnership offered 4,250,000 units of limited partnership
interests at $20 per unit, or $85,000,000. The offering
terminated on November 30, 1993, at which time 2,984,309 limited
partnership units had been purchased.
(b) Leasing Company and Leasing Agent Agreement
The Partnership has entered into a Leasing Agent Agreement
whereby the Leasing Company has the responsibility to manage the
leasing operations of all equipment owned by the Partnership.
Pursuant to the Agreement, the Leasing Company is responsible
for leasing, managing and re-leasing the Partnership's
containers to ocean carriers and has full discretion over which
ocean carriers and suppliers of goods and services it may deal
with. The Leasing Agent Agreement permits the Leasing Company to
use the containers owned by the Partnership, together with other
containers owned or managed by the Leasing Company and its
affiliates, as part of a single fleet operated without regard to
ownership. Since the Leasing Agent Agreement meets the
definition of an operating lease in Statement of Financial
Accounting Standards (SFAS) No. 13, it is accounted for as a
lease under which the Partnership is lessor and the Leasing
Company is lessee.
The Leasing Agent Agreement generally provides that the Leasing
Company will make payments to the Partnership based upon rentals
collected from ocean carriers after deducting direct operating
expenses and management fees to CCC and the Leasing Company. The
Leasing Company leases containers to ocean carriers, generally
under operating leases which are either master leases or term
leases (mostly two to five years). Master leases do not specify
the exact number of containers to be leased or the term that
each container will remain on hire but allow the ocean carrier
to pick up and drop off containers at various locations; rentals
are based upon the number of containers used and the applicable
per-diem rate. Accordingly, rentals under master leases are all
variable and contingent upon the number of containers used. Most
containers are leased to ocean carriers under master leases;
leasing agreements with fixed payment terms are not material to
the financial statements. Since there are no material minimum
lease rentals, no disclosure of minimum lease rentals is
provided in these financial statements.
(Continued)
7
<PAGE> 8
CRONOS GLOBAL INCOME FUND XIV, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(c) Basis of Accounting
The Partnership utilizes the accrual method of accounting. Net
lease revenue is recorded by the Partnership in each period
based upon its leasing agent agreement with the Leasing Company.
Net lease revenue is generally dependent upon operating lease
rentals from operating lease agreements between the Leasing
Company and its various lessees, less direct operating expenses
and management fees due in respect of the containers specified
in each operating lease agreement.
(d) Financial Statement Presentation
These financial statements have been prepared without audit.
Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally
accepted accounting procedures have been omitted. It is
suggested that these financial statements be read in conjunction
with the financial statements and accompanying notes in the
Partnership's latest annual report on Form 10-K.
The preparation of financial statements in conformity with
generally accepted accounting principles (GAAP) requires the
Partnership to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reported period. Actual results could differ from
those estimates.
The interim financial statements presented herewith reflect all
adjustments of a normal recurring nature which are, in the
opinion of management, necessary to a fair statement of the
financial condition and results of operations for the interim
periods presented.
(2) Net Lease Receivables Due from Leasing Company
Net lease receivables due from the Leasing Company are determined by
deducting direct operating payables and accrued expenses, base
management fees payable, and reimbursed administrative expenses payable
to CCC and its affiliates from the rental billings payable by the
Leasing Company to the Partnership under operating leases to ocean
carriers for the containers owned by the Partnership. Net lease
receivables at June 30, 1997 and December 31, 1996 were as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---------- ------------
<S> <C> <C>
Lease receivables, net of doubtful accounts
of $122,020 at June 30, 1997 and $144,071
at December 31, 1996 $2,080,750 $2,184,535
Less:
Direct operating payables and accrued expenses 647,134 644,735
Damage protection reserve 141,381 143,887
Base management fees 203,414 181,305
Reimbursed administrative expenses 36,012 41,093
---------- ----------
$1,052,809 $1,173,515
========== ==========
</TABLE>
(Continued)
8
<PAGE> 9
CRONOS GLOBAL INCOME FUND XIV, L.P.
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(3) Net Lease Revenue
Net lease revenue is determined by deducting direct operating expenses,
base management fees and reimbursed administrative expenses to CCC and
its affiliates from the rental revenue billed by the Leasing Company
under operating leases to ocean carriers for the containers owned by the
Partnership. Net lease revenue for the three and six-month periods ended
June 30, 1997 and 1996 was as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------- --------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Rental revenue $2,009,696 $2,496,120 $4,028,544 $5,045,679
Less:
Rental equipment operating expenses 486,430 391,893 1,035,315 855,898
Base management fees 140,580 176,007 280,930 350,451
Reimbursed administrative expenses 104,892 131,868 214,154 272,400
---------- ---------- ---------- ----------
$1,277,794 $1,796,352 $2,498,145 $3,566,930
========== ========== ========== ==========
</TABLE>
9
<PAGE> 10
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
It is suggested that the following discussion be read in conjunction with the
Registrant's most recent annual report on Form 10-K.
1) Material changes in financial condition between June 30, 1997 and
December 31, 1996.
At June 30, 1997, the Registrant had $1,215,001 in cash and cash
equivalents, a decrease of $515,503 from the December 31, 1996 cash
balances. At June 30, 1997, the Registrant had approximately $123,000 in
cash generated from equipment sales reserved as part of its cash
balances. Throughout the remainder of 1997, the Registrant expects to
continue using cash generated from equipment sales to purchase and
replace containers which have been lost or damaged beyond repair.
The Registrant's operating performance contributed to an 11% decline in
net lease receivables at June 30, 1997 when compared to December 31,
1996. The Registrant's cash distribution from operations for the second
quarter of 1997 was 8.0% (annualized) of the limited partners' original
capital contribution, unchanged from the first quarter of 1997. These
distributions are directly related to the Registrant's results from
operations and may fluctuate accordingly.
During 1996, ocean carriers and other transport companies moved away
from leasing containers outright, as declining container prices,
favorable interest rates and the abundance of available capital resulted
in ocean carriers and transport companies purchasing a larger share of
equipment for their own account, reducing the demand for leased
containers. Once the demand for leased containers began to fall,
per-diem rental rates were also adversely affected, contributing to an
uncertain start to 1997. Since the beginning of the year, the container
leasing industry has experienced an upward trend in container
utilization. The impact of this trend on the utilization rates of the
Registrant has been mixed. The Registrant's dry container utilization
rate increased from 79% at December 31, 1996 to 82% at June 30, 1997,
while the refrigerated container utilization rate measured 79% at June
30, 1997, unchanged from December 31, 1996. During 1996, shipping lines
and other transport companies had reduced their leased fleets to minimal
levels in an attempt to reduce costs. However, increasing cargo volumes
and continued equipment imbalances within the container fleets of
shipping lines and transport companies have established a need for these
companies to replenish their leased fleets.
Although there has been a general improvement in container utilization
rates, per-diem rental rates continue to remain under pressure. The
decline in per-diem rental rates from those evidenced during 1996 can be
attributed to the following factors: three new leasing companies have
offered new containers and low rental rates in an effort to break into
the leasing market; established leasing companies have reduced rates to
very low levels; and a continued over supply of containers. Although
these conditions are expected to continue to impact the Registrant's
financial condition and operating performance throughout 1997, the
long-term outlook remains a positive one.
10
<PAGE> 11
2) Material changes in the results of operations between the three and
six-month periods ended June 30, 1997 and the three and six-month
periods ended June 30, 1996.
Net lease revenue for the three and six-month periods ended June 30,
1997 was $1,277,794 and $2,498,145, respectively, a decline of
approximately 29% and 30% from the same periods in the prior year,
respectively. Gross rental revenue (a component of net lease revenue)
for the three and six-month periods ended June 30, 1997 was $2,009,696
and $4,028,544, respectively, reflecting a decline of 20% from the same
periods in 1996. During 1997, gross lease revenue was primarily impacted
by lower per-diem rental rates and utilization levels. Average dry cargo
container per-diem rental rates for the three and six-month periods
ended June 30, 1997 declined approximately 12% and 10%, respectively,
when compared to the same periods in the prior year, respectively.
Average refrigerated container per-diem rental rates for the three and
six-month periods ended June 30, 1997 declined approximately 11% and
13%, respectively, when compared to the same periods in the prior year.
Dry cargo utilization, which steadily increased since December 31, 1996,
did not recover to the same levels experienced during the three and
six-month periods ended June 30, 1996. Refrigerated container
utilization rates declined in each of the three and six-month periods
ended June 30, 1997, as many of the term leases entered into during the
Registrant's initial years of operations have since expired.
The Registrant's average fleet size and utilization rates for the three
and six-month periods ended June 30, 1997 and June 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
---------------------------- -----------------------------
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Average Fleet Size (measured in
twenty-foot equivalent units (TEU))
Dry cargo containers 15,610 15,445 15,524 15,458
Refrigerated cargo containers 1,135 1,153 1,139 1,153
Average Utilization
Dry cargo containers 81% 84% 79% 84%
Refrigerated cargo containers 76% 92% 76% 92%
</TABLE>
Rental equipment operating expenses were 24% and 26% of the Registrant's
gross lease revenue during the three and six-month periods ended June
30, 1997, as compared to 16% and 17% during the three and six-month
periods ended June 30, 1996, respectively. This increase was largely
attributable to an increase in costs associated with lower utilization
levels, including handling, storage and repositioning.
As reported in the Registrant's Current Report on Form 8-K and Amendment
No. 1 to Current Report on Form 8-K, filed with the Commission on
February 7, 1997 and February 26, 1997, respectively, Arthur Andersen,
London, England, resigned as auditors of The Cronos Group, a Luxembourg
Corporation headquartered in Orchard Lea, England (the "Parent
Company"), on February 3, 1997.
The Parent Company is the indirect corporate parent of Cronos Capital
Corp., the general partner of the Registrant. In its letter of
resignation to the Parent Company, Arthur Andersen states that it
resigned as auditors of the Parent Company and all other entities
affiliated with the Parent Company. While its letter of resignation was
not addressed to the general partner or the Registrant, Arthur Andersen
confirmed to the general partner that its resignation as auditors of the
entities referred to in its letter of resignation included its
resignation as auditors of Cronos Capital Corp. and the Registrant.
11
<PAGE> 12
Following Arthur Andersen's resignation, the Parent Company subsequently
received notification from the Securities and Exchange Commission that
it was conducting a private investigation of the Parent Company
regarding the events and circumstances leading to Arthur Andersen's
resignation. The results of this investigation are still pending.
Accordingly, the Registrant does not, at this time, have sufficient
information to determine the impact, if any, that the Securities and
Exchange Commission investigation of the Parent Company and the concerns
expressed by Arthur Andersen in its letter of resignation may have on
the future operating results and financial condition of the Registrant
or the Leasing Company's ability to manage the Registrant's fleet in
subsequent periods. However, the general partner of the Registrant does
not believe, based upon the information currently available to it, that
Arthur Andersen's resignation was triggered by any concern over the
accounting policies and procedures followed by the Registrant.
Arthur Andersen's report on the financial statements of Cronos Capital
Corp. and the Registrant, for either of the previous two years, has not
contained an adverse opinion or a disclaimer of opinion, nor was any
such report qualified or modified as to uncertainty, audit scope, or
accounting principles. During the Registrant's previous two fiscal years
and the subsequent interim period preceding Arthur Andersen's
resignation, there have been no disagreements between Cronos Capital
Corp. or the Registrant and Arthur Andersen on any matter of accounting
principles or practices, financial statement disclosure, or auditing
scope or procedure.
The Registrant retained a new auditor, Moore Stephens, P.C. ("Moore
Stephens") on April 10, 1997, as reported in the Registrant's Current
Report on Form 8-K, filed April 14, 1997.
The President of the Leasing Company, a subsidiary of the Parent
Company, along with two marketing Vice Presidents, resigned in June
1997. These vacancies were filled by qualified, long-time employees who
average over 15 years of experience in the container leasing industry,
therefore providing continuity in the management of the Leasing Company.
The Registrant and general partner do not believe these changes will
have a material impact on the future operating results and financial
condition of the Registrant.
Cautionary Statement
This Quarterly Report on Form 10-Q contains statements relating to
future results of the Registrant, including certain projections and
business trends, that are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from those projected as a result of certain risks and
uncertainties, including but not limited to changes in: economic
conditions; trade policies; demand for and market acceptance of leased
marine cargo containers; competitive utilization and per-diem rental
rate pressures; as well as other risks and uncertainties, including but
not limited to those described in the above discussion of the marine
container leasing business under Item 2., Management's Discussion and
Analysis of Financial Condition and Results of Operations; and those
detailed from time to time in the filings of Registrant with the
Securities and Exchange Commission.
12
<PAGE> 13
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit
No. Description Method of Filing
------- ----------- ----------------
<S> <C> <C>
3(a) Limited Partnership Agreement of the Registrant, amended and
restated as of December 2, 1992 *
3(b) Certificate of Limited Partnership of the Registrant **
10 Form of Leasing Agent Agreement with Cronos Containers Limited ***
27 Financial Data Schedule Filed with this document
</TABLE>
(b) Reports on Form 8-K
The Registrant filed a Report on Form 8-K, April 14, 1997, reporting the
appointment of the Registrant's successor certifying accountant.
- ----------
* Incorporated by reference to Exhibit "A" to the Prospectus of the
Registrant dated December 2, 1992, included as part of Registration
Statement on Form S-1 (No. 33-51810)
** Incorporated by reference to Exhibit 3.2 to the Registration Statement
on Form S-1 (No. 33-51810)
*** Incorporated by reference to Exhibit 10.2 to the Registration Statement
on Form S-1 (No. 33-51810)
13
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
CRONOS GLOBAL INCOME FUND XIV, L.P.
By Cronos Capital Corp.
The General Partner
By /s/ JOHN KALLAS
---------------------------------------
John Kallas
Vice President, Treasurer
Principal Finance & Accounting Officer
Date: August 14, 1997
14
<PAGE> 15
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Description Method of Filing
------- ----------- ----------------
<S> <C> <C>
3(a) Limited Partnership Agreement of the Registrant, amended and
restated as of December 2, 1992 *
3(b) Certificate of Limited Partnership of the Registrant **
10 Form of Leasing Agent Agreement with Cronos Containers Limited ***
27 Financial Data Schedule Filed with this document
</TABLE>
- ----------
* Incorporated by reference to Exhibit "A" to the Prospectus of the
Registrant dated December 2, 1992, included as part of Registration
Statement on Form S-1 (No. 33-51810)
** Incorporated by reference to Exhibit 3.2 to the Registration Statement
on Form S-1 (No. 33-51810)
*** Incorporated by reference to Exhibit 10.2 to the Registration Statement
on Form S-1 (No. 33-51810)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FORM THE BALANCE
SHEET AT JUNE 30, 1997 (UNAUDITED) AND THE STATEMENT OF OPERATIONS FOR THE
QUARTERLY PERIOD ENDED JUNE 30, 1997 (UNAUDITED) AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS INCLUDED AS PART OF ITS
QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD JUNE 30, 1997.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,215,001
<SECURITIES> 0
<RECEIVABLES> 1,052,809
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,267,810
<PP&E> 53,106,373
<DEPRECIATION> 12,091,152
<TOTAL-ASSETS> 53,580,270
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 43,580,270
<TOTAL-LIABILITY-AND-EQUITY> 43,580,270
<SALES> 0
<TOTAL-REVENUES> 2,498,145
<CGS> 0
<TOTAL-COSTS> 1,741,075
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 844,654
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
