<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): AUGUST 30, 1996
G&L REALTY CORP.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MARYLAND 1-12566 95-4449388
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
439 N. BEDFORD DRIVE
BEVERLY HILLS, CALIFORNIA 90210
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (310) 273-9930
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On August 30, 1996, G&L Medical Partnership, L.P. acquired the property
located at 436 North Bedford Drive in Beverly Hills, California (the "Property")
for approximately $18.1 million funded by a $15.2 million loan from Nomura Asset
Capital Corporation, $2.65 million in cash (of which approximately $1.8 million
was drawn against the Company's credit line) and an assumption of obligations
totaling $260,000. The Property consists of a three story medical office
building totaling 78,799 square feet of net rentable area and a 100,000 square
foot parking garage. As of August 30, 1996, the Property was 98.4% leased with
an effective average annual rent of $38.90 per square foot. The Property was
purchased from Loan Asset Structured Trust I, a Delaware trust (the "Seller"),
an affiliate of Nomura Asset Capital Corporation. The Seller is not affiliated
with the Company, any director or officer of the Company, or any associate of
any such director or officer.
G&L Realty Corp. (the "Company") controls G&L Medical Partnership, L.P.,
a Delaware limited partnership (the "Medical Partnership"), through its wholly
owned subsidiary G&L Medical, Inc., a Delaware corporation, which is the sole
general partner and 1% owner of the Medical Partnership. The sole limited
partner and 99% owner of the Medical Partnership is G&L Realty Partnership,
L.P., a Delaware limited partnership (the "Operating Partnership"). The Company
owns approximately 90% and is the sole general partner of the Operating
Partnership.
The Property, originally owned by the Operating Partnership, was subject
to a $28.5 million non-recourse loan (the "Loan"). The loan came due in August
1995, at which time the Company's management estimated that the value of the
Property was less than the amount of the Loan and began discussions with the
lender regarding a possible loan restructure. On May 24, 1996, ownership of the
Property was transferred to the Seller, which held the $28.5 million lien on the
Property, in satisfaction of the Loan. Pursuant to the terms of the transaction,
the Operating Partnership funded the security deposit obligations, paid $250,000
for a right of first refusal in the event the Seller sought to sell the
Property, and was retained to manage the Property. On August 30, 1996, the
Company, through the Medical Partnership, reacquired the Property from the
Seller.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(A) FINANCIAL STATEMENTS
Financial Statements for the acquired property are included on
pages 5 through 7 of this report.
(B) PRO FORMA FINANCIAL INFORMATION
Pro Forma Financial Information is presented on pages 8 through 14 of
this report.
Page 2
<PAGE>
(C) EXHIBITS
*10.36 Agreement of Purchase and Sale by and between Loan Asset
Structured Trust I, a Delaware trust ("Seller") and G&L Medical
Partnership, L.P., a Delaware limited partnership ("Buyer"),
dated August 29, 1996.
*10.37 Grant Deed in which Loan Asset Structured Trust I, a Delaware
trust ("Grantor"), grants certain real property to G&L Medical
Partnership, L.P., a Delaware limited partnership ("Grantee"),
recorded August 30, 1996.
--------------------
* Previously filed.
Page 3
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholders
G&L Realty Corp.:
We have audited the accompanying statement of revenues and certain
operating expenses of 436 North Bedford Drive (the "Property") for the year
ended December 31, 1995. This financial statement is the responsibility of the
Property's management. Our responsibility is to express an opinion on this
financial statement based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform our audit to obtain
reasonable assurance about whether the financial statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
The accompanying statement of revenues and certain operating expenses was
prepared for the purpose of complying with the rules and regulations of the
Securities and Exchange Commission for inclusion in the current report on Form
8-K of G&L Realty Corp. (described in Note 1) and is not intended to be a
complete presentation of the Property's revenues and operating expenses.
In our opinion, the financial statement presents fairly, in all material
respects, the revenues and certain operating expenses of the Property for the
year ended December 31, 1995 in conformity with generally accepted accounting
principles.
Los Angeles, California
September 20, 1996
Page 4
<PAGE>
436 NORTH BEDFORD DRIVE
STATEMENTS OF REVENUES AND CERTAIN OPERATING EXPENSES
<TABLE>
<CAPTION>
YEAR ENDED SIX-MONTHS ENDED
DECEMBER 31, 1995 JUNE 30, 1996
(UNAUDITED)
----------------- -----------------
<S> <C> <C>
REVENUES:
Rental $3,094,437 $1,460,134
Tenant reimbursements 112,648 52,124
Parking 445,753 209,729
Other 23,092 1,622
---------- ----------
Total revenues 3,675,930 1,723,609
CERTAIN OPERATING EXPENSES 975,153 489,101
---------- ----------
REVENUES IN EXCESS OF CERTAIN
OPERATING EXPENSES $2,700,777 $1,234,508
========== ==========
</TABLE>
See accompanying Note to Statements of Revenues and Certain Operating Expenses
Page 5
<PAGE>
436 NORTH BEDFORD DRIVE
NOTE TO STATEMENTS OF REVENUES AND CERTAIN OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1995 AND SIX-MONTH PERIOD ENDED JUNE 30, 1996
(INFORMATION RELATING TO THE SIX-MONTH PERIOD ENDED JUNE 30, 1996 IS UNAUDITED)
1. BASIS OF PRESENTATION
The Property, consisting of a three story medical office building totaling
78,799 square feet of net rentable area and a 100,000 square foot parking garage
located in Beverly Hills, California, was purchased by G&L Medical Partnership,
L.P., a Delaware limited partnership (the "Medical Partnership"), from Loan
Asset Structured Trust I, a Delaware trust (the "Seller"), on August 30, 1996
for approximately $18.1 million. G&L Realty Corp. (the "Company") controls the
Medical Partnership through its wholly owned subsidiary G&L Medical, Inc., a
Delaware corporation, which is the sole general partner and 1% owner of the
Medical Partnership. The sole limited partner and 99% owner of the Medical
Partnership is G&L Realty Partnership, L.P., a Delaware limited partnership (the
"Operating Partnership"). The Company owns approximately 90% and is the sole
general partner of the Operating Partnership.
The Property, originally owned by the Operating Partnership, was subject to
a $28.5 million non-recourse loan (the "Loan"). The Loan came due in August
1995, at which time the Company's management estimated that the value of the
Property was less than the amount of the Loan and began discussions with the
lender regarding a possible loan restructure. On May 24, 1996, ownership of the
Property was transferred to the Seller, which held the $28.5 million lien on
the Property, in satisfaction of the Loan. Pursuant to the terms of the
transaction, the Operating Partnership funded the security deposit obligations,
paid $250,000 for a right of first refusal in the event the Seller sought to
sell the Property, and was retained to manage the Property. On August 30, 1996,
the Company, through the Medical Partnership, reacquired the Property from the
Seller.
The accompanying statements of revenues and certain operating expenses are
based upon the actual amounts incurred by the Company prior to May 24, 1996 and
the actual revenues and certain operating expenses incurred by the Seller
between May 24, 1996 and June 30, 1996. Interest, depreciation and amortization
not directly related to the future operations of the Property have been excluded
in accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange
Commission. The Company is not aware of any material factors relating to the
Property that would cause the reported financial information not to be
necessarily indicative of future operating results. Revenues and certain
operating expenses for the two ownership periods in 1996 were as follows:
Page 6
<PAGE>
436 NORTH BEDFORD DRIVE
STATEMENTS OF REVENUES AND CERTAIN OPERATING EXPENSES
<TABLE>
<CAPTION>
JANUARY 1, 1996 TO MAY 24, 1996 TO
MAY 23, 1996 JUNE 30, 1996
(UNAUDITED) (UNAUDITED)
------------------ ----------------
<S> <C> <C>
REVENUES:
Rental $1,177,537 $282,597
Tenant reimbursements 42,570 9,554
Parking 171,991 37,738
Other 1,307 315
---------- --------
Total revenues 1,393,405 330,204
CERTAIN OPERATING EXPENSES 383,681 105,420
---------- --------
REVENUES IN EXCESS OF CERTAIN
OPERATING EXPENSES $1,009,724 $224,784
========== ========
</TABLE>
The unaudited statement of revenues and certain operating expenses for the
six-month period ended June 30, 1996 has been prepared in accordance with the
Company's accounting policies. In the opinion of management, all adjustments and
eliminations, consisting only of normal recurring adjustments, necessary to
present fairly the statement of revenue and certain operating expenses of the
Property for the six-month period ended June 30, 1996, have been included. The
results of operations for this interim period are not necessarily indicative of
the results for a full year.
Page 7
<PAGE>
G&L REALTY CORP.
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The pro forma financial statement information is based on the historical
financial statements of the Company and should be read in conjunction with all
of the financial statements previously filed by the Company with the Securities
Exchange Commission including the Company's Form 10-Q and Form 10-K.
The pro forma financial information is unaudited and is not necessarily
indicative of the consolidated results which actually would have occurred if the
transactions had been consummated on the dates described below, nor does it
purport to represent the Company's financial position and results of operations
for future periods.
The accompanying unaudited Pro Forma Condensed Consolidated Balance Sheet
as of June 30, 1996 is presented as if the Property were acquired on June 30,
1996. The accompanying unaudited Pro Forma Condensed Consolidated Statements of
Operations for the year ended December 31, 1995 and the six-month period ended
June 30, 1996 are presented as if the Property were acquired on January 1, 1995.
The accompanying unaudited pro forma financial statements give effect to
(i) actual operating revenues and expenses for the year ended December 31, 1995
and the six-month period ended June 30, 1996 of the Property, (ii) the net
adjustment resulting from reduced depreciation, elimination of amortization of
deferred loan costs related to the previous ownership by G&L Realty Partnership,
L.P. and the addition of amortization costs incurred in connection with
acquisition financing costs, and (iii) elimination of interest expense on the
$28.5 million mortgage loan previously secured by the Property and inclusion of
the interest expense relating to the purchase money mortgage.
Page 8
<PAGE>
G&L REALTY CORP.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
As Previously Pro Forma Pro Forma
Stated Adjustments Statement
-------------------------------------------
<S> <C> <C> <C>
ASSETS
- ------
Rental properties:
Land $ 14,055,674 $ 2,675,000 $ 16,730,674
Buildings and improvements, net 58,959,630 15,422,100 74,381,730
------------ ----------- ------------
Total rental properties 73,015,304 18,097,100 91,112,404
Cash and cash equivalents 2,746,260 (75,300) 2,670,960
Accounts receivable, net 380,502 380,502
Tenant rent and reimbursements receivable, net 373,333 373,333
Unbilled rent receivable, net 1,324,214 1,324,214
Mortgage loans and bonds receivable 44,235,415 44,235,415
Deferred charges and other assets, net 6,084,085 (751,700) 5,332,385
------------ ----------- ------------
TOTAL ASSETS $128,159,113 $17,270,100 $145,429,213
============ =========== ============
LIABILITIES AND STOCKHOLDERS EQUITY
- -----------------------------------
Liabilities:
Notes payable $100,352,993 $17,000,000 $117,352,993
Accounts payable and other liabilities 2,183,496 2,183,496
Distributions payable 1,459,529 1,459,529
Tenant security deposits 785,943 270,100 1,056,043
------------ ----------- ------------
Total liabilities 104,781,961 17,270,100 122,052,061
Minority interest in consolidated partnership (2,775,042) (2,775,042)
Minority interest in Operating Partnership 3,170,000 3,170,000
Stockholders' equity:
Common shares - $.01 par value, 50,000,000 shares
authorized, 4,062,500 shares issued and
outstanding as of 3/31/96 40,625 40,625
Preferred shares - $.01 par value, 10,000,000 shares
authorized, no shares issued and outstanding 0 0
Additional paid-in capital 23,710,054 23,710,054
Net income in excess of distributions (768,485) (768,485)
------------ ----------- ------------
Total stockholders' equity 22,982,194 22,982,194
------------ ----------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY $128,159,113 $17,270,100 $145,429,213
============ =========== ============
</TABLE>
See accompanying notes to Pro Forma Condensed Consolidated Financial Statements.
Page 9
<PAGE>
G&L REALTY CORP.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
As Previously Pro Forma Pro Forma
Stated Adjustments Statement
-----------------------------------------------
(Audited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
REVENUES:
Rental $16,801,193 $16,801,193
Tenant reimbursements 731,860 731,860
Parking 1,388,042 1,388,042
Interest, loan fees and related income 1,834,558 1,834,558
Other 651,884 651,884
----------- ---------- -----------
Total revenues 21,407,537 21,407,537
----------- ---------- -----------
EXPENSES:
Property operations 5,198,933 5,198,933
Earthquake costs (reimbursements) (133,162) (133,162)
Depreciation and amortization 4,047,277 (1,310,737) 2,736,540
416,700 416,700
Interest 6,372,002 (2,088,538) 4,283,464
1,435,300 1,435,300
General and administrative 1,639,678 1,639,678
----------- ---------- -----------
Total expenses 17,124,728 (1,547,275) 15,577,453
----------- ---------- -----------
Income from operations 4,282,809 1,547,275 5,830,084
Minority interest in consolidated partnership (130,987) (130,987)
Minority interest in Operating Partnership (417,016) (54,416) (471,432)
----------- ---------- -----------
Net income before extraordinary item 3,734,806 1,492,859 5,227,665
Extraordinary item (net of minority interest) (393,401) (393,401)
----------- ---------- -----------
Net income $ 3,341,405 $1,492,859 $ 4,834,264
=========== ========== ===========
Per share data:
Net income before extraordinary item $ 0.91 $ 1.03
Extraordinary item (0.09) (0.09)
----------- -----------
Net income $ 0.82 $ 0.94
=========== ===========
Weighted average number of outstanding shares 4,090,769 4,090,769
</TABLE>
See accompanying notes to Pro Forma Condensed Consolidated Financial Statements.
Page 10
<PAGE>
G&L REALTY CORP.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
As Previously Pro Forma Pro Forma
Stated Adjustments Statement
---------------------------------------------------------
<S> <C> <C> <C>
REVENUES:
Rental $ 7,673,169 $ 282,597 $ 7,955,766
Tenant reimbursements 257,095 9,554 266,649
Parking 632,952 37,738 670,690
Interest, loan fees and related income 3,271,221 3,271,221
Other 224,348 315 224,663
----------- ----------- -----------
Total revenues 12,058,785 330,204 12,388,989
----------- ----------- -----------
EXPENSES:
Property operations 2,463,932 105,420 2,569,352
Depreciation and amortization 1,657,335 (290,060)
208,500 1,575,775
Interest 4,296,703 (778,003)
717,700 4,236,400
General and administrative 922,841 922,841
Loss on disposition of rental property 4,873,788 (4,873,788)
----------- ----------- -----------
Total expenses 14,214,599 (4,910,231) 9,304,368
----------- ----------- -----------
Income (loss) from operations (2,155,814) 5,240,435 3,084,621
Minority interest in consolidated partnership (71,735) (71,735)
Minority interest in Operating Partnership 227,354 (533,173) (305,819)
----------- ----------- -----------
Net income (loss) before extraordinary gain (2,000,195) 4,707,262 2,707,067
Extraordinary gain on retirement of debt 9,310,730 (9,434,211) (123,481)
----------- ----------- -----------
Net income $ 7,310,535 $(4,726,949) $ 2,583,586
=========== =========== ===========
Per share data:
Before extraordinary gain $ (0.49) $ 0.67
Extraordinary gain 2.29 (0.03)
----------- -----------
Net income $ 1.80 $ 0.64
=========== ===========
Weighted average number of outstanding shares 4,062,470 4,062,470
</TABLE>
See accompanying Notes to Pro Forma Condensed Consolidated Financial Statements.
Page 11
<PAGE>
G&L REALTY CORP.
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. GENERAL
G&L Realty Corp. (the "Company") was formed as a Maryland corporation on
September 15, 1993 by Daniel M. Gottlieb and Steven D. Lebowitz to continue the
ownership, management, acquisition and development operations of medical office
buildings conducted previously by G&L Development, the Company's predecessor.
All of the Company's assets are held by, and all of its operations are
conducted through the following Delaware limited partnerships:
G&L Realty Partnership, L.P. (the "Operating Partnership")
G&L Financing Partnership, L.P. (the "Financing Partnership")
(liquidated on August 17, 1995)
G&L Realty Financing Partnership II, L.P. (the "Realty Financing
Partnership")
G&L Medical Partnership, L.P. (the "Medical Partnership")
The Company, as the sole general partner and as owner of an approximately
90% ownership interest, controls the Operating Partnership. The Company
controlled the Financing Partnership through its wholly owned subsidiary, G&L
Financing, Inc., a Delaware corporation, which was the sole general partner and
1% owner of the Financing Partnership. The Operating Partnership was the sole
limited partner and 99% owner of the Financing Partnership. As a result of the
refinancing of debt, the Financing Partnership was liquidated effective August
17, 1995 and the assets it owned were transferred to its partners. The Company
also controls the Realty Financing Partnership through its wholly owned
subsidiary G&L Realty Financing II, Inc., a Delaware corporation, which is the
sole general partner and 1% owner of the Realty Financing Partnership. The sole
limited partner and 99% owner of the Realty Financing Partnership is the
Operating Partnership. In May 1996 and in conjunction with a financing
transaction, the Company transferred three buildings into a newly formed limited
partnership, the Medical Partnership, a Delaware limited partnership. The sole
limited partner and 99% owner of the Medical Partnership is the Operating
Partnership. The Company controls the Medical Partnership through its wholly
owned subsidiary G&L Medical, Inc., a Delaware corporation, which is the sole
general partner and 1% owner of the Medical Partnership.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business - The Company is a growth-oriented health care Real Estate
Investment Trust ("REIT") and invests in health care properties and debt
obligations secured by health care properties.
Basis of Presentation - The accompanying pro forma condensed consolidated
financial statements include the accounts of the Company. The interests in 435
North Roxbury Drive, Ltd. not owned by the Company have been reflected in
minority interests. All significant intercompany accounts and transactions have
been eliminated in consolidation.
Page 12
<PAGE>
Certain information and footnote disclosures normally included in annual
financial statements have been omitted. The Company believes that the
disclosures included in these pro forma financial statements are adequate for a
fair presentation and conform to reporting requirements established by the
Securities and Exchange Commission (SEC). The pro forma condensed consolidated
financial statements as presented herein should be read in conjunction with the
audited consolidated financial statements and notes thereto included in the
Company's annual report on Form 10-K for the year ended December 31, 1995 and
Form 10-Q for the quarter ended June 30, 1996, as filed with the SEC.
Per Share Data - Earnings per share are computed based upon the weighted
average number of common shares outstanding during the period. The treasury
stock method is used to determine the number of incremental common equivalent
shares resulting from options granted under the incentive and non-qualified
share options plans. The effect of such incremental common equivalent shares is
considered to be non-dilutive.
3. BUILDINGS AND IMPROVEMENTS
Buildings and improvements consist of the following:
<TABLE>
<CAPTION>
As Of June 30, 1996
(Unaudited)
As Previously Pro Forma Pro Forma
Stated Adjustments Statement
------------------------------------------------
<S> <C> <C> <C>
Buildings and improvements $64,218,490 $15,260,500 $79,478,990
Tenant improvements 3,706,420 161,600 3,868,020
Furniture, fixtures and equipment 309,665 309,665
----------- ----------- -----------
68,234,575 15,422,100 83,656,675
Less accumulated depreciation
and amortization (9,274,945) (9,274,945)
----------- ----------- -----------
Total $58,959,630 $15,422,100 $74,381,730
=========== =========== ===========
</TABLE>
Rental property is recorded at cost less accumulated depreciation.
Depreciation is computed on a straight-line basis over the estimated useful
lives of the assets, as follows:
Buildings and improvements................. 40 years
Tenant improvement......................... Life of lease
Furniture, fixtures and equipment.......... 5 years
Expenditures for maintenance and repairs are charged to operations as
incurred. Significant renovations and all costs directly related to
acquisitions are capitalized.
Page 13
<PAGE>
4. DEFERRED CHARGES AND OTHER ASSETS
Deferred charges and other assets consist of the following:
<TABLE>
<CAPTION>
As Of June 30, 1996
(Unaudited)
As Previously Pro Forma Pro Forma
Stated Adjustments Statement
------------------------------------------
<S> <C> <C> <C>
Loan fees $2,052,734 $ 19,100 $2,071,834
Pre-acquisition costs 814,230 (775,200) 39,030
Leasing commissions 643,733 4,400 648,133
Assets held for sale 3,005,251 3,005,251
Prepaid expense and other assets 209,285 209,285
---------- --------- ----------
6,725,233 (751,700) 5,973,533
Less accumulated amortization (641,148) (641,148)
---------- --------- ----------
Total $6,084,085 $(751,700) $5,332,385
========== ========= ==========
</TABLE>
Leasing commissions are amortized on a straight-line basis over the lives
of the leases, which range typically from five to ten years. Deferred loan fees
are amortized over the terms of the respective agreements.
5. PRO FORMA ESTIMATES AND ASSUMPTIONS
Depreciation and amortization - The expense amounts previously provided in
the Company's financial statements included depreciation and amortization of
rental property and other deferred expenses based upon costs associated with the
previous ownership by G&L Realty Partnership, L.P. Such expense associated with
the previous ownership has been eliminated in the pro forma adjustments. For
purposes of presenting the pro-forma statements of operations, the following
amounts have been included as pro forma adjustments to depreciation and
amortization expense:
<TABLE>
<CAPTION>
Year Ended Six Months Ended
Cost Basis December 31, 1995 June 30, 1996
---------------------------------------------------------
<S> <C> <C> <C>
Buildings and improvements $15,260,500 $381,600 $190,800
Tenant improvements 161,600 32,300 16,200
Loan fees 19,100 1,900 1,000
Leasing commissions 4,400 900 500
-------- --------
Expense Totals $416,700 $208,500
======== ========
</TABLE>
Interest - Interest expense associated with the previous $28.5 million
mortgage loan has been eliminated. In conjunction with the August 30, 1996
reacquisition of the Property, the Company incurred $17 million in new debt. The
following table represents the estimated interest costs associated with the
additional debt:
<TABLE>
<CAPTION>
Year Ended Six Months Ended
Loan Amount December 31, 1995 June 30, 1996
---------------------------------------------------------
<S> <C> <C> <C>
Fixed rate debt - 8.495 percent $15,200,000 $1,291,300 $645,700
Variable rate debt - 8.0 percent 1,800,000 144,000 72,000
---------- --------
Expense Totals $1,435,300 $717,700
========== ========
</TABLE>
Page 14
<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 hereunto duly authorized.
G&L REALTY CORP.
Date: November 1, 1996 /s/ Quentin Thompson
--------------------
Quentin Thompson
Chief Accounting Officer, Treasurer and
Secretary
Page 15
