UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[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
[ ] Transition Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934.
For the transition period from N/A to N/A
Commission File Number 0-28332
BRAUVIN NET LEASE V, INC.
(Exact name of small business issuer in its charter)
Maryland 36-3913066
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 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 .
As of November 14, 1997, the registrant had 1,286,777 shares of
Common Stock outstanding.
Transitional Small Business Disclosure Format(check one)
Yes No X .
INDEX
PART I - FINANCIAL INFORMATION
Page
Item 1. Consolidated Financial Statements. . . . . . . . . . . . . . 3
Consolidated Balance Sheet at September 30, 1997 . . . . . . 4
Consolidated Statements of Operations, for the
nine months ended September 30, 1997 and 1996. . . . . . . . 5
Consolidated Statements of Operations, for the
three months ended September 30, 1997 and 1996 . . . . . . . 6
Consolidated Statements of Cash Flows for the
nine months ended September 30, 1997 and 1996. . . . . . . . 7
Notes to Consolidated Financial Statements . . . . . . . . . 8
Item 2. Management's Discussion and Analysis or Plan
of Operation . . . . . . . . . . . . . . . . . . . . . . . 15
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . .19
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . .19
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . .19
Item 4. Submission of Matters to a Vote of Security
Holders. . . . . . . . . . . . . . . . . . . . . . . . . . .19
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . .19
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . .19
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
The following Consolidated Balance Sheet as of September 30,
1997, Consolidated Statements of Operations for the nine months
ended September 30, 1997 and 1996, Consolidated Statements of
Operations for the three months ended September 30, 1997 and 1996
and Consolidated Statements of Cash Flows for the nine months ended
September 30, 1997 and 1996 for Brauvin Net Lease V, Inc. (the
"Fund") are unaudited but reflect, in the opinion of the
management, all adjustments necessary to make the consolidated
financial statements not misleading. All such adjustments are of
a normal recurring nature.
These consolidated financial statements should be read in
conjunction with the financial statements and notes thereto
included in the Fund's 1996 Annual Report on Form 10-KSB.
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30,
1997
ASSETS
Investment in real estate, at cost:
Land $ 3,980,765
Buildings 7,547,677
11,528,442
Less accumulated depreciation (379,282)
Net investment in real estate 11,149,160
Cash and cash equivalents 295,980
Organization costs (net of
accumulated amortization of
$25,083) 9,917
Deferred rent receivable 162,775
Prepaid expenses 4,108
Total Assets $11,621,940
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Accounts payable and accrued
expenses $ 13,829
Rents received in advance 76,776
Due to affiliates 54,745
Total Liabilities 145,350
Stockholders' Equity:
Preferred stock, $.01 par value,
1,000,000 shares authorized; none issued
Common stock, $.01 par value,
9,000,000 shares authorized;
1,286,777 shares issued
and outstanding 12,868
Additional paid-in capital 11,605,417
Retained deficit (141,695)
Total Stockholders' Equity 11,476,590
Total Liabilities and Stockholders'
Equity $11,621,940
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the nine months ended September 30, 1997 and 1996
(Unaudited)
1997 1996
INCOME
Rental $ 994,916 $ 750,274
Interest and other 24,842 118,364
Total income 1,019,758 868,638
EXPENSES
Directors fees 15,225 16,999
Advisory fees 131,251 114,631
Management fees 9,321 6,799
General and administrative 72,232 78,748
Acquisition costs 33,211 38,306
Depreciation and amortization 141,977 111,632
Total expenses 403,217 367,115
Net Income $ 616,541 $ 501,523
Net Income Per Share
(based on average shares
outstanding of 1,281,966
and 1,285,956, respectively
for the nine months ended
September 30, 1997 and 1996) $ .48 $ .39
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended September 30, 1997 and 1996
(Unaudited)
1997 1996
INCOME
Rental $ 336,652 $ 268,479
Interest and other 3,057 32,929
Total income 339,709 301,408
EXPENSES
Directors fees 4,081 5,001
Advisory fees 43,750 76,041
Management fees 2,833 2,132
General and administrative 22,281 14,781
Acquisition costs (5,134) 7,404
Depreciation and amortization 48,728 39,652
Total expenses 116,539 145,011
Net Income $ 223,170 $ 156,397
Net Income Per Share
(based on average shares
outstanding of 1,292,093
and 1,303,308, respectively
for the three months ended
September 30, 1997 and 1996) $ .17 $ .12
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1997 and 1996
(Unaudited)
1997 1996
Cash Flows From Operating Activities:
Net income $ 616,541 $ 501,523
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of organization costs 5,251 5,250
Depreciation 136,726 106,382
Acquisition costs charged off 33,211 38,306
Increase in deferred rent receivables (78,211) (63,423)
(Increase) decrease in prepaid expenses
and deferred acquisition costs (1,107) 5,999
Decrease (increase)in tenant receivables 378 (6,369)
Decrease in accounts payable and
accrued expenses (7,955) (500)
Increase in due to affiliates 812 56,538
Increase (decrease) in rent received
in advance 27,203 (7,000)
Net cash provided by operating
activities 732,849 636,706
Cash Flows From Investing Activities:
Purchase of properties (1,525,289) (1,456,083)
Acquisition costs -- (95,328)
Cash used in investing activities (1,525,289) (1,551,411)
Cash Flows From Financing Activities:
Issuance of stock 106,522 1,408,735
Selling commissions and other
offering costs (164,154) (124,287)
Dividends (678,458) (639,421)
Liquidations (200,590) (96,750)
Net cash (used in) provided by
financing activities (936,680) 548,277
Net decrease in cash
and cash equivalents (1,729,120) (366,428)
Cash and cash equivalents at
beginning of period 2,025,100 3,058,504
Cash and cash equivalents at
end of period $ 295,980 $ 2,692,076
Supplemental Cash Flow Information:
In 1997, Purchase of properties is net of $54,460 of acquisition
costs paid in 1996 and reclassified to land and building in 1997 in
conjunction with the acquisition of the related properties.
See notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Brauvin Net Lease V, Inc. (the "Fund") is a Maryland corporation
formed on October 14, 1993, which operates as a real estate
investment trust ("REIT") under federal tax laws. The Fund has
acquired properties that are leased to creditworthy corporate
operators of nationally or regionally established businesses
primarily in the retail and family restaurant sectors. All of the
leases are on a long-term "triple net" basis generally requiring
the corporate tenant to pay both base annual rent with mandatory
escalation clauses and all operating expenses. The Fund acquired a
Country Harvest Buffet Restaurant during the year ended December
31, 1994; an On the Border Restaurant, a Blockbuster Video, a
Chili's Restaurant, a Just for Feet and a Video Watch during the
year ended December 31, 1995; a Pier 1 Imports and a Taylor Rental
during the year ended December 31, 1996; and a Jiffy Lube and
Firestone facility during the quarter ended March 31, 1997.
The advisory agreement provides for Brauvin Realty Advisors V,
L.L.C. (the "Advisor"), an affiliate of the Fund, to be the advisor
to the Fund. The Fund registered the sale of up to 5,000,000
shares of common stock at $10.00 per share in an initial public
offering filed with the Securities and Exchange Commission
("Registration Statement") and the issuance of 500,000 shares
pursuant to the Fund's dividend reinvestment plan. On August 8,
1994, the Fund sold the minimum 120,000 shares required under its
Registration Statement and commenced its real estate activities.
The offering period for the sale of common stock terminated on
February 25, 1996. At September 30, 1997, the Fund had sold
1,286,777 shares and the gross proceeds raised were $13,429,110,
net of liquidations of $361,340, including $200,000 invested by the
Advisor, before reduction for selling commissions and other
offering costs.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Management's Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management 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 reporting
period. Actual results could differ from these estimates.
Accounting Method
The accompanying consolidated financial statements have been
prepared using the accrual method of accounting.
Rental Income
Rental income is recognized on a straight line basis over the
life of the related leases. Differences between rental income
earned and amounts due per the respective lease agreements are
credited or charged, as applicable, to deferred rent receivable.
Federal Income Taxes
For the year ending December 31, 1997, the Fund intends to be
treated as a REIT under the Internal Revenue Code Sections 856-860.
A REIT will generally not be subject to federal income taxation to
the extent that it distributes at least 95% of its taxable income
to its shareholders and meets certain asset and income tests as
well as other requirements. Accordingly, no provision has been made
for Federal income taxes in the financial statements.
Consolidation of Subsidiary
The Fund owns a 100% interest in one qualified REIT subsidiary,
Germantown Associates, Inc., which owns one Firestone/JiffyLube
property. The accompanying financial statements have consolidated
100% of the assets, liabilities, operations and stockholder's
equity of Germantown Associates, Inc. All significant intercompany
accounts have been eliminated.
Investment in Real Estate
The Fund's rental properties are stated at cost including
acquisition costs. Depreciation is recorded on a straight-line
basis over the estimated economic lives of the properties which
approximate 40 years.
In 1995, the Fund adopted Statement of Financial Accounting
Standards No. 121, "Accounting for the Impairment of Long-Lived
Assets and Long-Lived Assets to be Disposed of" (SFAS 121). The
Fund has performed an analysis of its long-lived assets, and the
Fund's management determined that there were no events or changes
in circumstances that indicated that the carrying amount of the
assets may not be recoverable at September 30, 1997. Accordingly,
no impairment loss has been recorded in the accompanying financial
statements.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid instruments
with an original maturity within three months from date of
purchase.
Estimated Fair Value of Financial Instruments
Disclosure of the estimated fair value of financial instruments
is made in accordance with the requirements of Statement of
Financial Accounting Standards No. 107, "Disclosure About Fair
Value of Financial Instruments." The estimated fair value amounts
have been determined by using available market information and
appropriate valuation methodologies. However, considerable
judgement is necessarily required in interpreting market data to
develop estimates of fair value.
The fair value estimates presented herein are based on
information available to management as of September 30, 1997, but
may not necessarily be indicative of the amounts that the Fund
could realize in a current market exchange. The use of different
assumptions and/or estimation methodologies may have a material
effect on the estimated fair value amounts. Although management is
not aware of any factors that would significantly affect the
estimated fair value amounts, such amounts have not been
comprehensively revalued for purposes of these financial statements
since that date, and current estimates of fair value may differ
significantly from amounts presented herein.
The carrying amounts of the following items are reasonable
estimates of fair value: cash and cash equivalents; accounts
payable and accrued expense; rents received in advance; and due to
affiliates.
Organization Costs
Organization costs represent costs incurred in connection with
the organization and formation of the Fund. Organization costs are
amortized over a period of five years using the straight line
method.
(2) RELATED PARTY TRANSACTIONS
The Fund is required to pay certain fees to the Advisor or its
affiliates pursuant to various agreements set forth in the
Prospectus and described below.
Pursuant to the terms of the Selling Agreement, Brauvin
Securities, Inc. ("BSI"), an affiliate of the Advisor, is entitled
to placement charges of 5.50% of the gross proceeds of the Fund's
offering, all of which will be re-allowed to placement agents. In
addition, BSI is entitled to a marketing and due diligence expense
allowance fee equal to 0.50% of the gross proceeds to reimburse
marketing and due diligence expenses, some portion of which may be
re-allowed to placement agents.
Pursuant to the terms of the Advisory Agreement, the Advisor is
entitled to receive acquisition fees for services rendered in
connection with the selection or acquisition of any property
however designated as real estate commissions, selection fees,
development fees, or any fees of a similar nature. Such
acquisition fees may not exceed the lesser of (a) such compensation
as is customarily charged in arm's-length transactions by others
rendering similar services as an ongoing business in the same
geographic locale and for comparable properties or (b) 3.5% of the
gross proceeds of the Fund's offering. The Fund will also
reimburse the Advisor an amount estimated to be 0.75% of the gross
proceeds of the offering in connection with any expenses attendant
to the acquisition of properties whether or not acquired.
Pursuant to the terms of the Advisory Agreement, the Advisor was
entitled to an annual advisory fee, payable monthly, in an amount
equal to 0.60% of the gross proceeds during the offering. Following
the termination of the offering, an amount equal to the greater of:
(i) 0.60% of gross proceeds, or (ii) $175,000.
Pursuant to the terms of the Management Agreement, Brauvin
Management Company ("BMC"), an affiliate of the Advisor, provided
leasing and re-leasing services to the Fund in connection with the
management of Fund's properties. The property management fee
payable to an affiliate of the Advisor shall not exceed the lesser
of: (a) fees which are competitive for similar services in the
geographical area where the properties are located; or (b) 1% of
the gross revenues of each property.
Fees, commissions and other expenses incurred and payable to the
Advisor or (refunded) from the Advisor or its affiliates for the
nine months ended September 30, 1997, and 1996 were as follows:
1997 1996
Selling commissions $128,130 $78,652
Due diligence fees (615) 12,042
Advisory fees 131,251 114,631
Dividend
reinvestment fees 1,096 1,291
Management fees 9,321 6,799
Nonaccountable fees 2,663 35,218
Acquisition fees
and expenses 22,591 164,625
$ 294,437 $ 413,258
As of September 30, 1997 the Fund had made all payments to
affiliates except for $53,914 for advisory fees and $831 for
management fees.
(3) DIVIDENDS
Below is a table summarizing the dividends declared:
Declaration Record Payment Dividend
Date(a) Dates Date Rate (b) Amount
5/2/96 1/1/96-3/31/96 5/15/96 .01918% $216,247
8/1/96 4/1/96-6/30/96 8/15/96 .01918 227,068
10/31/96 7/1/96-9/30/96 11/15/96 .01918 229,532
1/31/97 10/1/96-12/31/96 2/15/97 .01918 229,517
5/8/97 1/1/97-3/31/97 5/15/97 .01918 224,034
8/7/97 4/1/97-6/30/97 8/15/97 .01918 224,907
11/6/97 7/1/97-9/30/97 11/15/97 .01918 227,039
(a) Dividends were declared on a daily basis.
(b) The dividend rate is presented on a per day basis.
In order to qualify as a REIT, the Fund is required to distribute
dividends to its stockholders in an amount at least equal to 95% of
REIT taxable income of the Fund. The Fund intends to make
quarterly distributions to satisfy all annual distribution
requirements.
The dividend reinvestment plan ("Reinvestment Plan") is available
to the stockholders so that stockholders, if they so elect, may
have their distributions from the Fund invested in shares. The
price per share purchased through the Reinvestment Plan shall equal
$10 per share with the purchase of partial shares allowed. The
Fund has registered 500,000 shares for distribution solely in
connection with the Reinvestment Plan. Funds raised through the
Reinvestment Plan will be utilized to (i) purchase shares from
existing stockholders who have notified the Fund of their desire to
sell their shares or held for subsequent redemptions; or (ii)
purchase additional properties. The stockholders electing to
participate in the Reinvestment Plan will be charged a service
charge, in an amount equal to 1% of their distributions, which will
be paid to an affiliate of the Advisor to defray the administrative
costs of the Reinvestment Plan. At September 30, 1997, there were
approximately 36,343 shares purchased through the Reinvestment Plan
and approximately, 36,134 shares liquidated.
(4) Subsequent Events
On November 6, 1997, the Fund declared an ordinary income cash
dividend on a daily basis of 0.01918% (7.0% annualized) for each
day commencing July 1, 1997 through September 30, 1997 to holders
of record of the Fund's common stock as of the close of business on
each respective date. The dividend aggregated $227,039 and will be
paid on November 15, 1997.
Item 2. Management's Discussion and Analysis or Plan of Operations.
Liquidity and Capital Resources
As of September 30, 1997, the Fund had received $11,814,601 in
connection with the sale of shares, net of selling commissions and
other offering costs, including $200,000 paid by the Advisor for a
share of stock as disclosed in the prospectus and liquidations of
$361,340. The Fund acquired one property during the year ended
December 31, 1994 for $900,000 plus closing costs, acquired five
properties during the year ended December 31, 1995 for $6,511,400
plus closing costs and acquired two properties during the year
ended December 31, 1996 for $2,025,000 plus closing costs. On
February 20, 1997, effective as of January 20, 1997, the Fund
purchased a property leased to Bridgestone/Firestone Inc. and to
Jiffy Lube International of Maryland, Inc. for $1,450,000 plus
closing costs.
Upon the acquisition of the Firestone and Jiffy Lube property,
the Fund has invested all the proceeds of the offering allocable to
investments in real estate. The Fund has no material capital
commitments. In the opinion of management of the Fund, each
property is adequately covered by insurance. For further
information, refer to the financial statements and footnotes
thereto included in the Annual Report on Form 10-KSB for the year
ended December 31, 1996.
Compliance with 95% REIT taxable income test
The Fund is required, under the Code, to make distributions of
an amount not less than 95% of its REIT taxable income during the
year.
In accordance with the Fund's intent to maintain its
qualification as a REIT under the Code, the Fund intends to manage
its dividend distributions to approximate earnings during the year
to which they relate.
Cash Flows
During the nine months ended September 30, 1997, cash provided
by operating activities was $732,849 relating to property
operations. Cash flows used in investing activities of $1,525,289
related to the acquisition of one property, as discussed above.
Cash flows used in financing activities were $936,680 relating to
offering costs, dividends paid and liquidations. The Fund
anticipates that operating activities will continue to provide
sources of cash.
The Fund's cash flows during the nine months ended September 30,
1996 resulted principally from financing activities relating to the
issuance of stock, which generated $1,311,985, net of liquidations
of $96,750, less costs related thereto such as selling commissions
and other costs aggregating $124,287 and dividends to stockholders
of $639,421. Cash flows provided by operating activities were
$636,706 due principally to cash generated from property
operations. Cash flows used in investing activities were
$1,551,411 relating principally to the acquisition of the Pier One
Imports store purchased during the nine months ended September 30,
1996.
Results of Operations -Nine months ended September 30, 1997 and
1996. (Amounts rounded to nearest $000's)
The Fund generated net income of $617,000 for the nine months
ended September 30, 1997 as compared to net income of $502,000 for
the same nine month period in 1996.
Total income for the nine months ended September 30, 1997 was
$1,020,000 as compared to $869,000 for the same nine month period
in 1996, an increase of $151,000. The $151,000 increase resulted
primarily from additional rental income received from the nine
properties held during the nine months ended September 30, 1997 as
compared to seven properties held during the same nine month period
in 1996.
For the nine months ended September 30, 1997 total expenses were
$403,000 as compared to $367,000 for the same nine month period in
1996, an increase of $36,000. The increase was due primarily to an
increase in depreciation in the amount of $30,000 due to the
increased number of properties which were held for the nine months
ended September 30, 1997 as compared to the same nine month period
in 1996. Other expenses, such as advisory fees increased
approximately $17,000. Pursuant to the terms of the Advisory
Agreement, following the termination of the offering on February
25, 1996, the Advisor was entitled to an annual advisory fee,
payable monthly, in an amount equal to the greater of: (i) .60% of
gross proceeds, or (ii) $175,000. Accordingly, the Advisory fee is
$175,000 annually.
The On The Border Restaurant, located in Stafford, Texas,
discontinued its operations on May 29, 1996. Brinker Texas, L.P.,
the property's lease guarantor (and a wholly-owned subsidiary of
Brinker International) has stated its intention to honor the lease
and cooperate with the Fund to cause the property to be reoccupied.
Moreover, the adjacent highway is in the process of being widened
which has resulted in the condemnation of a portion of the frontage
of the parcel. The damages will be paid to On the Border
Corporation. The Fund will be compensated with an adjacent piece
of land owned by On The Border Corporation. The Fund is working
with Brinker International, in order to locate a subtenant for this
location. Potential subtenants are waiting for the location of new
parking, which should be resolved in the fourth quarter of 1997.
The Fund does not currently anticipate that this situation will
adversely affect the Funds's cash flow, as rent is currently paid
on the lease.
Country Harvest Buffet in Lynnwood, Washington closed in mid-June
1997 as a result of new competition from a new and larger buffet
restaurant opening in the immediate area. The tenant continues to
pay its rent on a timely basis. The Fund has approved a new
subtenant and is in the process of finalizing the terms of the
sublease. Under the terms of the sublease, Country Harvest Buffet
will remain on the lease.
Results of Operations - Three months ended September 30, 1997 and
1996. (Amounts rounded to nearest $000's)
The Fund generated net income of $223,000 for the three months
ended September 30, 1997 as compared to net income of $156,000 for
the same three month period in 1996.
Total income for the three months ended September 30, 1997 was
$340,000 as compared to $301,000 for the same three month period in
1996, an increase of $39,000. The $39,000 increase resulted
primarily from additional rental income received from the nine
properties held during the three months ended September 30, 1997 as
compared to seven properties held during the same three month
period in 1996.
For the three months ended September 30, 1997 total expenses were
$117,000 as compared to $145,000 for the same three month period in
1996, a decrease of $28,000. The decrease was due primarily to
advisory fees decreasing approximately $32,000. This variance was
caused by a third quarter adjustment made in 1996 to increase the
accrual of advisory fees consistent with terms of the advisory
agreement. Pursuant to the terms of the Advisory Agreement,
following the termination of the offering on February 25, 1996, the
Advisor was entitled to an annual advisory fee, payable monthly, in
an amount equal to the greater of: (i) .60% of gross proceeds, or
(ii) $175,000. Accordingly, the Advisory fee is $175,000 annually.
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.
Exhibit 27. Financial Data Schedule
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BRAUVIN NET LEASE V, INC.
BY: /s/ James L. Brault
James L. Brault
Executive Vice President and Secretary
DATE: November 14, 1997
BY: /s/ B. Allen Aynessazian
B. Allen Aynessazian
Chief Financial Officer
DATE: November 14, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 295,980
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 11,528,442 <F1>
<DEPRECIATION> 379,282
<TOTAL-ASSETS> 11,621,940
<CURRENT-LIABILITIES> 90,605
<BONDS> 0
0
0
<COMMON> 11,476,590 <F2>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,621,940
<SALES> 0
<TOTAL-REVENUES> 1,019,758 <F3>
<CGS> 0
<TOTAL-COSTS> 403,217 <F4>
<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> 616,541
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<F2> "COMMON" REPRESENTS TOTAL STOCKHOLDER'S EQUITY
<F3> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F4> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
</FN>
</TABLE>
