<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
[ X ] SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
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 No. 1-12412
ARBOR PROPERTY TRUST
(Exact name of Registrant as specified in its Charter)
Delaware 23-2740383
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite800, One Tower Bridge, W. Conshohocken, PA 19428
(Address of principal executive offices) (Zip code)
(610) 941-2933
(Registrant's telephone number, including area code)
(Former name of registrant if changed since last report)
Indicate by checkmark 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 _______
APPLICABLE TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING
FIVE YEARS:
Indicate by checkmark whether the Registrant has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court. Yes _______ No _______
APPLI CABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date: 12,159,134 shares as of November
10, 1995.
ARBOR PROPERTY TRUST
QUARTERLY REPORT ON FORM 10-Q
FOR QUARTER ENDED SEPTEMBER 30, 1995
INDEX
Page
PART I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Balance Sheets as of September 30, 1995
and December 31, 1994 3
Condensed Consolidated Statements of Operations for the three and
nine month periods ended September 30, 1995 and September 30, 1994 4
Condensed Consolidated Statements of Cash Flows for the
nine month periods
ended September 30, 1995 and September 30, 1994 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 9
PART II - OTHER INFORMATION
Items 1 through 6. 11
SIGNATURES 12
EXHIBITS 13
<PAGE>
ARBOR PROPERTY TRUST
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
(Unaudited)
ASSETS
<S> <C> <C>
Investment in property, at cost:
Land $ 30,295 $ 30,295
Buildings and improvements 139,842 139,249
Capitalized lease 7,125 7,125
Personal property 1,172 1,075
Construction in progress 56 10
178,490 177,754
Less accumulated depreciation 29,809 26,621
148,681 151,133
Tenant security deposits 317 315
Cash and short-term investments - -
Accounts receivable (net of allowance for doubtful
accounts of $597 and $898, respectively) 7,993 7,306
Other assets, net 4,955 6,068
TOTAL ASSETS $161,946 $164,822
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Collateralized floating rate notes (net
of unamortized discounts of $68 and $86,
respectively) $117,932 $117,914
Distributions payable 2,127 3,321
Obligation under capitalized lease 7,005 6,994
Note payable to bank 5,650 4,300
Accounts payable and other liabilities 3,746 3,102
136,460 135,631
Commitments and Contingencies:
Shareholders' Equity:
Shares of beneficial interest, without par value:
Authorized: 5,000,000 preferred shares,
45,000,000 common shares, and 50,000,000
excess shares;
Issued and outstanding: 12,159,134 and
12,074,774 common shares, respectively 117,896 117,209
Distributions in excess of accumulated
earnings (92,410) (88,018)
25,486 29,191
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $161,946 $164,822
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
<PAGE>
ARBOR PROPERTY TRUST
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except shares and per share amounts)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues from rental operations $ 5,603 $ 5,273 $ 16,550 $ 15,745
Operating expenses, net of tenant
reimbursements (including fees to affiliate of
$106 and $100 for the three months, and $294
and $378 for the nine months, ending
September 30, 1995 and 1994, respectively) 416 458 1,240 1,523
Advisory and termination fees paid to
Advisor, discontinued 3/30/94 (including
$3,843 as a result of the termination of
the Advisory Agreement in 1994) -- -- -- 4,107
Provisions for doubtful accounts 59 227 69 300
Depreciation and amortization 1,102 1,057 3,278 3,092
Income from rental operations 4,026 3,531 11,963 6,723
Interest expense (includes amortization) 2,741 2,270 8,063 6,069
Other expenses, net of interest income 543 439 1,918 1,532
Income (loss) before gain on sale of
real estate 742 822 1,982 (878)
Gain on sale of real estate -- -- -- 839
Net income (loss) $ 742 $ 822 $ 1,982 $ (39)
Income (loss) per weighted average share:
Income (loss) before gain on sale
of real estate $ .06 $ .07 $ .16 $ (.07)
Gain on sale of real estate -- -- -- .07
Net income (loss) $ .06 $ .07 $ .16 $ ( -)
Weighted average number
of shares outstanding 12,156,942 11,990,044 12,135,977 11,559,144
</TABLE>
- ---------------
The accompanying notes are an integral part of these condensed consolidated
financial statements.
ARBOR PROPERTY TRUST
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Nine months ended
September 30,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 1,982 $ (39)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Gain on sale of real estate -- (839)
Depreciation and amortization 3,278 3,092
Amortization of deferred financing costs 932 902
Amortization of floating rate notes discount 18 17
Termination of advisor agreement -- 3,843
Changes in assets and liabilities:
Increase in accrued rent receivable (704) (657)
Decrease in accounts receivable
and other assets 100 1,234
Increase
in accounts payable
and other liabilities 644 (844)
Net cash provided by operating activities 6,250 6,709
Cash flows from investing activities:
Proceeds from sale of real estate, net -- 1,435
Additions to buildings and improvements
and personal property (690) (646)
Construction expenditures (46) (335)
Net cash provided by (used in) investing activities (736) 454
Cash flows from financing activities:
Distributions paid (7,572) (9,389)
Proceeds from dividend reinvestment 708 948
Borrowing under bank line of credit 1,350 1,700
Net cash used in financing activities (5,514) (6,741)
Decrease in cash and
short-term investments 0 (422)
Cash and short-term investments,
beginning of period 0 885
Cash and short-term investments,
end of period 0 $ 1,307
Supplemental disclosure of cash flow information:
Interest paid $ 6,465 $ 4,393
</TABLE>
See Note 1 for disclosure of non-cash investing
and financing activities
- ---------------
The accompanying notes are an integral part of these condensed consolidated
financial statements.
ARBOR PROPERTY TRUST
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. DESCRIPTION OF BUSINESS AND MERGER TRANSACTION
Arbor Property Trust (the "Trust"), formed on September 8, 1993 as a
Delaware business trust, has an indefinite life and has elected real
estate investment trust ("REIT") status under the Internal Revenue Code of
1986, as amended, with the filing of its Federal Income Tax Return for the
year ended December 31, 1994. On February 28, 1994, EQK Green Acres, L.P.
(the "Partnership") merged with and into Green Acres Mall Corp., a
wholly-owned subsidiary of the Trust (the "Merger"). Prior to February 28,
1994, the Trust did not have significant operations. The Trust and the
Partnership are interchangeably referred to herein as the "Company".
The Partnership had been formed pursuant to an Agreement of Limited
Partnership dated as of June 30, 1986 (and amended and restated as of
August 27, 1986) to acquire and operate Green Acres Mall (the "Property"
or the "Mall"), a regional shopping mall located in Nassau County, Long
Island, New York. In 1991, the Partnership completed the conversion of a
leased industrial building, located adjacent to the Property, into a
convenience shopping center known as the Plaza at Green Acres (the
"Plaza").
Pursuant to the Merger, Unitholders of the Partnership received 10,172,639
Common Shares of Beneficial Interest of the Trust (the "Common Shares") on
account of their 98.98% percentage interest in the Partnership; the
General Partners of the Partnership received 104,830 Common Shares on
account of their 1.02% percentage interest in the Partnership; and the
Special General Partner of the Partnership received 1,316,251 Common
Shares in satisfaction of its residual interest in the Partnership.
Pursuant to the termination of the Partnership's advisory agreement (the
Advisory Agreement ), Equitable Realty Portfolio Management, Inc. (the
"Advisor") received 308,933 Common Shares on March 30, 1994 (see Note 3).
The issuance of 10,277,469 Common Shares to the Unitholders and the
General Partners on account of their respective percentage interests in
the Partnership represented a reorganization of entities under common
control and, accordingly, was accounted for in a manner similar to a
pooling of interests. The financial statements of the Partnership and the
Trust have been combined at historical cost retroactive to January 1,
1994. The issuance of these Common Shares has been reflected as of this
date at an amount that equals the Unitholders' and General Partners'
original contributions to the Partnership.
The issuances of Common Shares to the Special General Partner and the
Advisor have been reflected in the Company's condensed consolidated
financial statements as of March 31, 1994. The issuance of Common Shares
to the Special General Partner has increased the Company's carrying value
of land and buildings and improvements by $3,024,000 and $13,347,000,
respectively, representing the value of the Special General Partner's
residual interest in the Partnership in connection with the Merger. Annual
depreciation expense has increased by approximately $342,000 as a result
of the increase in the basis of the Mall. The issuance of Common Shares to
the Advisor was reflected as a charge to earnings during the first quarter
of 1994 in the amount of $3,843,000.
NOTE 2. BASIS OF PRESENTATION
The condensed consolidated financial statements have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
United States Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate to make the information
presented not misleading. The condensed consolidated financial statements
should be read in conjunction with the audited consolidated financial
statements and related notes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1994.
The condensed consolidated financial statements include the accounts of
the Trust and its wholly-owned subsidiary, Green Acres Mall Corp. All
significant intercompany transactions and balances have been eliminated.
In the opinion of the Company all adjustments, which include only normal
recurring adjustments necessary to present fairly its consolidated
financial position as of September 30, 1995, its results of condensed
consolidated operations for the three and nine month periods ended
September 30, 1995 and 1994 and its condensed consolidated cash flows for
the nine month periods
ended September 30,
1995 and 1994, have been included in the accompanying unaudited condensed
consolidated financial statements.
Net income per share for the nine month periods ended September 30, 1995
and 1994 has been computed on the basis of the 12,136,977
and 11,559,144 weighted average
Common Shares
outstanding during the respective periods. Net income per share for the
three month periods ended September 30, 1995 and 1994 has been computed
using 12,156,942 and 11,990,044 weighted average Common Shares,
respectively.
Certain reclassifications have been made to the prior years condensed
consolidated financial statements in order to conform their presentation
to that used in the current year.
NOTE 3. ADVISORY AND MANAGEMENT AGREEMENTS
Prior to the termination of its Advisory Agreement as previously
discussed, Equitable Realty Portfolio Management, Inc., a wholly owned
subsidiary of Equitable Real Estate Investment Management, Inc.
("Equitable Real Estate"), acted as "Advisor" to the Company. Fees of
$100,000 were paid to the Advisor in 1994.
Pursuant to the Merger discussed in Note 1, on March 30, 1994, upon the
expiration of a 30 day transition period, the agreement with the Advisor
was terminated.
The Company had entered into a property management agreement with Compass
Retail, Inc. ("Compass"), a subsidiary of Equitable Real Estate, effective
January 1, 1991. Pursuant to this agreement, property management fees were
based on 4% of net rental and service income collected from tenants. In
connection with the Merger discussed in Note 1, the agreement with Compass
was amended and restated to extend its termination date by two years to
August 31, 1998, and to limit Compass' scope of responsibilities primarily
to accounting and financial services currently provided in connection with
the operations of the Property. Compass' compensation was reduced on March
1, 1994 from 4% to 2% of net rental and service income collected from
tenants. For the nine month periods ended September 30, 1995 and 1994,
management fees earned by Compass were $294,000 and $378,000,
respectively. The amount of such fees for the three month periods ended
September 30, 1995 and 1994 were $106,000 and $100,000, respectively.
NOTE 4. DISTRIBUTIONS
On August 14, 1995, the Trust made a distribution of $.175 per Common
Share (an aggregate of $2,127,000) to its Shareholders. In the second
quarter, distributions totaling $32,000 were reinvested pursuant to the
Company s Dividend Reinvestment Plan and 4,481 Common Shares were issued
under this Plan. In addition, a distribution in the amount of $.175 per
Common Share has been declared for payment on November 15, 1995 to the
shareholders of record on September 30, 1995.
NOTE 5. DEBT REFINANCING
The Company s floating rate notes are due August 19, 1998 and are
collateralized by a first mortgage on substantially all of the real
property comprising Green Acres Mall and a first leasehold mortgage on the
Plaza. The floating rate notes bear interest at a rate equal to 78 basis
points in excess of the three-month LIBOR, which is payable on a quarterly
basis from November 12, 1993. The interest rate is subject to reset on
such interest payment dates. The initial interest rate, 4.03%, was
effective for the period August 19, 1993 to November 11, 1993. The
interest rate at December 31, 1994 was 6.59% and was reset to 7.03% on
February 12, 1995, 6.84% on May 12, 1995, and 6.66% on August 12, 1995.
The average interest rate for the nine month periods ended September 30,
1995 and 1994 was 6.86% and 4.99%, respectively. The average interest rate
for the three month periods ended September 30, 1995 and 1994 was 6.86%
and 5.63%, respectively. In connection with the refinancing of the Company
s outstanding debt obligations in August 1993, the Company acquired an
interest rate cap which provides that the effective interest rate
applicable to the $118,000,000 face value of the notes will not exceed 9%
per annum through their maturity date. Should such debt s interest rate
rise above 9%, the Company would record amounts receivable from the
counter-party as a reduction to interest expense. In May 1995, the Company
entered into a swap transaction with Goldman Sachs Capital Markets, L.P.
which fixed the interest rate on the floating rate notes for the period of
August 12, 1995 through August 12, 1996 at 6.87%. This agreement fixed the
rate for a period of one year and eliminated the risk of increases in the
LIBOR rate. The Company is exposed to certain losses in the event of
non-performance by the counterparties to the interest rate cap and the
interest rate swap. The mortgage and indenture agreement relating to the
floating rate notes limit additional indebtedness that may be incurred by
the owner of Green Acres Mall, namely, Green Acres Mall Corp., a wholly
owned subsidiary of the Company. Those agreements also contain certain
other covenants which, among other matters, prioritize the payment of debt
service on the floating rate notes in relation to distributions from Green
Acres Mall Corp. Management believes it is in compliance with all
covenants under the indenture and line of credit agreements, discussed
below, at September 30, 1995.
As part of its comprehensive debt restructuring in 1993, the Company also
obtained a $3,400,000 unsecured line of credit facility from a bank.
Effective August 8, 1994 this line of credit was increased to $5,900,000
and its maturity extended to April 1995. In April 1995, this line of
credit was modified to allow the Company to elect an interest rate of
prime plus 1% or Euro-rate plus 2.5% and increase the amount available to
$6,900,000 and extend the maturity to December 31, 1995. The average
interest rate for the nine month periods ended September 1995 and 1994 was
9.18% and 7.90%,respectively. The average rate for the three month periods
ended September 30, 1995 and 1994 was 9.15% and 8.46%, respectively.
Beginning January 1, 1996, $3,000,000 of the outstanding balance of the
line of credit at maturity is due in seven equal monthly installments. The
remaining balance is due at the December 31, 1995 maturity date unless the
Company elects to extend the maturity until July 31, 1996. The line of
credit agreement also contains certain covenants which, among other
matters, limit the amount of the Company s annual dividend to an amount
that does not exceed operating cash flow (as defined), and require the
Company to maintain a quarterly debt service coverage ratio (as defined).
At September 30, 1995, the Company had borrowed $5,650,000 under this
credit facility. Subsequent to September 30, 1995, the Company paid down
$1,850,000 under this credit facility.
NOTE 6. SALE OF PROPERTY
In January 1994, the Company completed the sale to Home Depot of an
approximate two acre parking lot adjacent to the Property and received the
final installment of $1,500,000, and recognized an additional gain on sale
of $839,000, bringing the total gain on the transactions with Home Depot
to $1,279,000.
Home Depot opened for business in May 1994.
<PAGE>
ARBOR PROPERTY TRUST
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Recent Developments
On February 14, 1995, the Company announced that it had retained Goldman Sachs &
Co. in connection with a possible merger of the Company into another REIT or a
sale of the company's real estate. Subsequently, leadership of the majority in
the New York State Senate submitted a bill to repeal the New York State Real
Property Gains Tax which, in its present state, would burden the merger of the
Company or sale of its real estate by approximately $1.20 per share. On May 2,
1995, the Company announced that it postponed consideration of a merger or sale
pending resolution of the possible repeal of the Gains Tax.
On March 21, 1995, the Company announced a reduction in its quarterly dividend
from $.275 to $.175 per Common Share, establishing an annual dividend rate of
$.70 per Common Share. In its announcement of the dividend reduction, the
Company noted that the new dividend represents 90% of projected funds available
for distribution for the period April 1, 1995 through December 31, 1996. That
estimate was based upon (i)
continuation of the current interest rate on the
Company's collateralized floating rate notes; (ii) currently projected net
income from operation of the Green Acres Mall complex; (iii) estimated overhead
expenses for the Company; and (iv) projected capital expenditures.
Cash Flows from Operating, Investing, and Financing Activities
Cash flows from operating activities for the nine month periods ended September
30, 1995 and 1994 were $6,250,000 and $6,709,000, respectively. This decrease is
primarily a result of a higher interest expense of $1,994,000 in 1995 as
compared to 1994 due to the increase in interest rate on the floating rate
notes. The increase in interest expense in 1995 was partially offset by the
following items: payments of approximately $500,000 in the first quarter of 1994
to certain affiliates for management and advisory fees, an increase in revenue
from rental operations of $805,000 as a result of the remerchandising program
which the Mall commenced in 1992, the purpose of which was to improve the tenant
mix while increasing base rent, and a decrease in nonreimbursable repairs and
maintenance and associated fees to affiliates.
Cash flows from investing activities was $1,190,000 less for the nine month
period ended September 30, 1995 compared to the same period in 1994, primarily
as a result of proceeds from the completion of the sale of approximately two
acres to Home Depot in the first quarter. These proceeds were partially offset
by decreased capital expenditures in 1995 as compared to the same period in
1994.
Cash flows used in financing activities were $5,514,000 and $6,741,000 for the
nine month periods ended September 30, 1995 and 1994, respectively.
Distributions paid by the Company in 1995 decreased by $1,817,000 as a result of
the reduction in the quarterly dividend rate to $.175 per Common Share from
$.275 per Common Share and was partially offset by a decrease in proceeds from
dividend reinvestment of $240,000. This activity was further offset by a
decrease in borrowings of $350,000 from the existing credit line. For the period
May 1994 through February 1995, the dividends from the Common Shares which were
issued in respect of the Special General Partner s residual interest in the
Partnership and the termination of the Advisory Agreement were obligated to be
reinvested in the Company through a dividend reinvestment plan in newly issued
Common Shares. After February 1995, no shareholders were obligated to
participate in the dividend reinvestment program.
<PAGE>
ARBOR PROPERTY TRUST
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Comparison of the Nine Month and Three Month Periods Ended
September 30, 1995 and 1994
For the nine month period ended September 30, 1995, the Company reported net
income of $1,982,000 or $.16 per weighted average Common Share, compared with a
net loss of $39,000 or less than one cent per weighted average Common Share for
the comparable period in 1994. For the three months ended September 30, 1995,
net income was $742,000 or $.06 per weighted average Common Share, compared to
net income of $822,000 or $.07 per weighted average Common Share, for the third
quarter of 1994. The 1994 results were impacted by the termination of the
Advisory Agreement which resulted in the issuance of 308,933 Common Shares to
the Advisor. The issuance of these Common Shares was reflected as a charge to
earnings of $3,843,000 during the first quarter of 1994. This charge was
partially offset by the gain on the sale to Home Depot of an approximate two
acre parking lot. The final payment relating to the sale was $1,500,000, and the
gain realized amounted to $839,000.
For the nine and three month periods ended September 30, 1995, revenues from
rental operations were $805,000, or 5%, and $330,000, or 6%, higher than the
comparable periods in 1994. This increase is a direct result of the
remerchandising program the Mall commenced in 1992. The significant amount of
lease rollovers in 1993 and 1994 enabled management to develop a remerchandising
plan aimed at achieving an improved tenant mix while increasing base rents.
Net operating expenses decreased $283,000 and $42,000 for the nine and three
month periods ended September 30, 1995, respectively, as compared to the same
periods in 1994. This decrease is attributable to a reduction in management fees
as described in Note 3 and a reduction in nonreimbursable repairs and
maintenance expenses that were a result of the severe weather in 1994.
Interest expense increased in the third quarter of 1995 compared with the
comparable period in 1994. The floating rate notes had a weighted average
interest rate during the third quarter of 1995 of 6.86% as compared to 5.63% for
the third quarter of 1994. The notes have a floating interest rate equal to 78
basis points in excess of three-month LIBOR.
Liquidity and Capital Resources
The Company s commitment to an annual dividend rate of $.70 per Common Share,
and the general concern that interest rates could continue to rise, lead to the
Company fixing the interest rate on the floating rate notes at an all-in cost of
6.87% for a one year period ending August 12, 1996. With the stabilization of
the interest rate, as well as the anticipated improvement in the operating
performance resulting from the remerchandising program, the Company anticipates
more than adequate funds from operations to support such dividend distributions.
The Company s cash position fluctuates considerably during the course of the
year, particularly as a consequence of the periodic expenditures for quarterly
real estate taxes, quarterly interest payments and quarterly dividend
distributions, all of which occur during the months of February, May, August and
November. To accommodate such peak cash requirements, the Company has a
revolving credit facility with a maximum of $6.9 million available. As of
November 10, 1995, the outstanding balance on this facility was $3,800,000.
Management believes the revolving credit facility is adequate to provide the
Company with its working capital needs.
<PAGE>
ARBOR PROPERTY TRUST
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
None.
Item 3. Defaults upon Senior 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:
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K:
None
<PAGE>
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.
Date: November
13,
1995 ARBOR PROPERTY TRUST
By:
Myles H. Tanenbaum
President
(Principal Executive and
Financial Officer)
By: _____________________________
Dennis J. Harkins
Treasurer and Controller
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 7,993
<ALLOWANCES> 597
<INVENTORY> 0
<CURRENT-ASSETS> 13,265
<PP&E> 178,490
<DEPRECIATION> 28,809
<TOTAL-ASSETS> 161,946
<CURRENT-LIABILITIES> 11,532
<BONDS> 124,937
<COMMON> 117,896
0
0
<OTHER-SE> (92,410)
<TOTAL-LIABILITY-AND-EQUITY> 161,946
<SALES> 0
<TOTAL-REVENUES> 16,550
<CGS> 0
<TOTAL-COSTS> 4,587
<OTHER-EXPENSES> 1,918
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,063
<INCOME-PRETAX> 1,982
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,982
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,982
<EPS-PRIMARY> $.16
<EPS-DILUTED> $.16
</TABLE>
