UNITED STATES
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, 1996
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: 33-70654
AMERICAN ASSET ADVISERS TRUST, INC.
MARYLAND CORPORATION IRS IDENTIFICATION NO.
76-0410050
8 GREENWAY PLAZA, SUITE 824 HOUSTON, TX 77046
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.
X Yes No
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION
H (1) (a) AND (b) OF FORM 10-Q AND IS, THEREFORE, FILING THIS FORM WITH THE
REDUCED DISCLOSURE FORMAT.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
AMERICAN ASSET ADVISERS TRUST, INC.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1996 AND DECEMBER 31, 1995
<CAPTION>
June 30, December 31,
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
CASH & CASH EQUIVALENTS $ 2,957,500 $ 1,564,961
ACCOUNTS RECEIVABLE 3,700 0
PROPERTY:
Escrow deposits 100,000 0
Land 2,152,103 2,152,103
Buildings 4,436,074 4,436,074
6,688,177 6,588,177
Accumulated depreciation (138,419) (81,512)
TOTAL PROPERTY 6,549,758 6,506,665
NET INVESTMENT IN DIRECT FINANCING LEASE 581,277 582,753
OTHER ASSETS:
Acquisition costs 162,149 77,761
Accrued rental income 46,248 23,845
Organization costs, net of accumulated
amortization of $130,024 and $99,130,
respectively 365,589 214,638
TOTAL OTHER ASSETS 573,986 316,244
TOTAL ASSETS 10,666,221 8,970,623
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable 18,303 67,481
Compensation payable 150,000 150,000
Security deposit 15,050 15,050
TOTAL LIABILITIES 183,353 232,531
MINORITY INTEREST 1,634,396 1,596,169
SHAREHOLDERS' EQUITY
Common stock, $.01 par value, 25,000,000
shares authorized, 1,028,253 and 827,876
shares issued and outstanding, respectively 10,283 8,279
Additional paid-in capital 9,233,743 7,438,368
Accumulated distributions in excess of earnings (395,554) (304,724)
TOTAL SHAREHOLDERS' EQUITY 8,848,472 7,141,923
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 10,666,221 $ 8,970,623
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
AMERICAN ASSET ADVISERS TRUST, INC.
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND JUNE 30, 1995
(Unaudited)
<CAPTION>
Quarter Year to Date
1996 1995 1996 1995
<S> <C> <C> <C> <C>
REVENUES
Rental income from operating leases $ 181,131 $ 77,889 $ 362,462 $ 155,777
Earned income from direct financing leases 13,920 14,066 27,858 28,088
Interest income 40,226 37,135 72,529 66,707
TOTAL REVENUES 235,277 129,090 462,849 250,572
EXPENSES
Administrative 8,544 0 17,088 0
Amortization 15,447 15,447 30,894 30,576
Depreciation 28,461 11,881 56,907 24,215
Directors' fees 3,000 3,000 7,500 9,000
Filing fees 125 810 375 1,060
Legal & professional fees 3,863 10,157 14,775 19,111
Printing 1,682 3,081 4,004 4,257
Travel 0 863 885 1,330
Other 1,434 763 2,923 1,931
TOTAL EXPENSES 62,556 46,002 135,351 91,480
INCOME BEFORE MINORITY INTEREST IN
NET INCOME OF CONSOLIDATED JOINT VENTURE 172,721 83,088 327,498 159,092
MINORITY INTEREST IN NET INCOME OF
CONSOLIDATED JOINT VENTURE (37,342) (15,953) (74,683) (31,906)
NET INCOME $ 135,379 $ 67,135 $ 252,815 $ 127,186
NET INCOME PER SHARE $ 0.13 $ 0.10 $ 0.25 $ 0.21
WEIGHTED AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 1,028,253 633,601 1,002,281 595,936
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
AMERICAN ASSET ADVISERS TRUST, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(Unaudited)
<CAPTION>
Accumulated
Additional Distributions
Common Paid in in Excess of
Stock Capital Earnings Total
<S> <C> <C> <C> <C>
Balance at December 31, 1995 $ 8,279 $ 7,438,368 $ (304,724) $ 7,141,923
Issuance of common stock 2,004 2,001,764 2,003,768
Issuance costs (202,498) (202,498)
Distributions (162,724) (162,724)
Net income 117,436 117,436
Balance at March 31, 1996 $ 10,283 $ 9,237,634 $ (350,012) $ 8,897,905
Issuance costs (3,891) (3,891)
Distributions (180,921) (180,921)
Net income 135,379 135,379
Balance at June 30, 1996 $ 10,283 $ 9,233,743 $ (395,554) $ 8,848,472
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
AMERICAN ASSET ADVISERS TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND JUNE 30, 1995
(Unaudited)
<CAPTION>
Quarter Year to Date
1996 1995 1996 1995
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 135,379 $ 67,135 $ 252,815 $ 127,186
Adjustments to reconcile net income
to net cash flows from operating activities:
Amortization 15,447 15,447 30,894 30,576
Depreciation 28,461 11,881 56,907 24,215
(Increase) decrease in accounts receivable 103,783 (5,034) (3,700) (10,034)
Increase (decrease) in accounts payable (33,083) (357) (49,178) 2,798
Cash receipts from direct financing lease
in excess of income recognized 747 601 1,476 1,246
Increase in escrow deposits - - (100,000) (75,000)
Escrow refunds from minority interest partners 48,100 - 48,100 -
Increase in accrued rental income (11,101) - (22,403) -
Increase in organization costs (90,506) - (181,845) (15,530)
Increase in minority interest 37,342 15,953 74,683 31,906
NET CASH FLOWS FROM OPERATING ACTIVITIES 234,569 105,626 107,749 117,363
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of real estate:
Accounted for under the operating method - (15,883) - (16,947)
Acquisition costs (10,382) (25,219) (84,388) (147,638)
NET CASH FLOWS FROM INVESTING ACTIVITIES (10,382) (41,102) (84,388) (164,585)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock, net of
issuance costs (3,891) 586,353 1,797,379 1,424,427
Increase in short-term notes receivable - (287,093) - (793,456)
Distributions paid to shareholders (180,921) (97,306) (343,645) (181,806)
Distributions to minority interest partners (42,278) (19,252) (84,556) (38,504)
NET CASH FLOWS FROM FINANCING ACTIVITIES (227,090) 182,702 1,369,178 410,661
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (2,903) 247,226 1,392,539 363,439
CASH and CASH EQUIVALENTS at beginning
of period 2,960,403 1,401,800 1,564,961 1,285,587
CASH and CASH EQUIVALENTS at end of
period $ 2,957,500 $ 1,649,026 $ 2,957,500 $ 1,649,026
See Notes to Consolidated Financial Statements.
</TABLE>
AMERICAN ASSET ADVISERS TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND JUNE 30, 1995
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
American Asset Advisers Trust, Inc. ("the Company") was
incorporated on August 17, 1993 as a Maryland corporation. The
initial issuance of 20,001 shares of stock for $200,010 was to
American Asset Advisers Realty Corporation. Commencing March 17,
1994, the Company offered up to 2,000,000 additional shares of
common stock together with 1,000,000 warrants. The warrants are
exercisable at $9 per share between April 1997 and April 1998.
The offering period terminated on March 15, 1996 with
subscriptions having been received for 1,028,253 shares. On June
18, 1996 the Company offered up to 2,853,659 additional shares of
its common stock. The offering will terminate June 17, 1998.
As of June 30, 1996, subscriptions had been received for
1,028,253 shares.
The Company was formed with the intention to qualify and to
operate as a real estate investment trust under federal tax laws.
The Company will acquire commercial and industrial properties
using invested and borrowed funds. The selection, acquisition
and supervision of the operation of properties is managed by
American Asset Advisers Realty Corporation, ("AAA"), a related
party.
The consolidated financial statements include the accounts of
American Asset Advisers Trust, Inc. and its majority interest in
two joint ventures.
The financial records of the Company are maintained on the
accrual basis of accounting whereby revenues are recognized when
earned and expenses are reflected when incurred. Rental income
is recorded ratably over the life of the lease.
For purposes of the statement of cash flows the Company considers
all highly liquid debt instruments purchased with a maturity of
three months or less to be cash equivalents. There has been no
cash paid for income taxes or interest during 1996 or 1995.
Real estate is leased to others on a net lease basis whereby all
operating expenses related to the properties including property
taxes, insurance and common area maintenance are the
responsibility of the tenant. The leases are accounted for under
the operating method or the direct financing method.
Under the operating method, the properties are recorded at cost.
Rental income is recognized ratably over the life of the lease
and depreciation is charged as incurred.
Under the direct financing method, properties are recorded at
their net investment. Unearned income is deferred and amortized
to income over the life of the lease so as to produce a
constant periodic rate of return.
Buildings are depreciated using the straight-line method over an
estimated useful life of 39 years.
Organization costs incurred in the formation of the Company are
amortized on a straight-line basis over five years.
Syndication costs incurred in the raising of capital through the
sale of common stock is treated as a reduction of shareholders'
equity.
The Company is qualified as a real estate investment trust
("REIT") under the Internal Revenue Code of 1986, and is,
therefore, not subject to Federal income taxes provided it meets
all conditions specified by the Internal Revenue Code for
retaining its REIT status, including the requirement that at
least 95% of its real estate investment trust taxable income is
distributed by March 15 of the following year.
The accompanying unaudited financial statements have been
prepared in accordance with the instructions to Form 10-Q and do
not include all of the disclosures required by generally
accepted accounting principles. The financial statements reflect
all normal and recurring adjustments which are, in the opinion of
management, necessary to present a fair statement of results for
the three and six month periods ended June 30, 1996 and June 30,
1995.
The financial statements of American Asset Advisers Trust, Inc.
contained herein should be read in conjunction with the
financial statements included in the Partnership's annual report
on Form 10-K for the year ended December 31, 1995.
2. RELATED PARTY TRANSACTIONS
20,001 shares of the Company's stock are owned by American Asset
Advisers Realty Corporation ("AAA"). The common stock of AAA is
wholly owned by H. Kerr Taylor, President and Director of the
Company. In addition, the Company has entered into an Omnibus
Services Agreement with AAA whereby AAA provides acquisition,
leasing, administrative and management services for the Company.
For the three and six months ended June 30, 1996, $8,544 and
$17,088 were paid to AAA for administrative services. No such
fees were paid to AAA during the six months ended June 30, 1995
for administrative services.
Certain costs have been incurred by AAA in connection with the
organization and syndication of the Company. Reimbursement of
these costs become obligations of the Company in accordance
with the terms of the offering. $3,119 and $54,660 of costs were
incurred by AAA for the three and six months ended June 30, 1996
in connection with the issuance and marketing of the Company's
stock. These costs are reflected as syndication costs. No
reimbursements were paid during the first six months of 1995 for
syndication costs.
Acquisition fees, including real estate commissions, finders
fees, consulting fees and any other non-recurring fees incurred
in connection with locating, evaluating and selecting properties
and structuring and negotiating the acquisition of properties are
included in the basis of the properties. $8,678 and $82,684 of
acquisition fees were incurred and paid to AAA for the three and
six months ended June 30, 1996. $40,425 and $162,844 of
acquisition fees were incurred and paid to AAA for the three and
six months ended June 30, 1995.
On August 22, 1995, the Board of Directors approved a special
compensation payment plan for H. Kerr Taylor in the amount of
$150,000 for services provided from August 1993 through
August 1995. In connection therewith, the Company executed a
demand note payable at the earlier of July 15, 1996 or the
receipt of subscriptions of $10,000,000 from the Company's
stock offering. The note shall be payable without any interest
in cash or stock depending on the availability of cash for such
payment. No compensation arrangements were considered by the
Board prior to this time because the Company had not raised
sufficient funds through its stock offering, as determined by the
judgment of the Board, considered necessary for any compensation
to be granted. The compensation had not been accrued prior to
August 22, 1995 because its payment was uncertain and the level
of compensation had not been determined until the August 22, 1995
Board meeting. As of the termination of the initial public
offering, the Company had sold in excess of $10,000,000.
Although Mr. Taylor can demand payment on the note, such demand
has not been made. The decision regarding the nature of the
payment, whether in stock or cash, will be made by the Board of
Directors at the time Taylor demands payment.
No decisions as yet have been made with respect to any additional
compensation for any period after August 1995. The Board of
Directors has commissioned an external study with respect to
the amount and type of compensation which could be paid in the
future to officers and/or directors, as well as the contingencies
and performance standards on which compensation will be
determined. Accordingly, the financial statements do not include
any accruals for compensation subsequent to August 1995.
On April 5, 1996, the Company entered into a joint venture with
AAA Net Realty Fund XI, Ltd. and AAA Net Realty Fund X, Ltd.,
affiliated partnerships, for the purchase of a property which
will be operated as a Just For Feet retail store in Tucson,
Arizona. The Company's interest in the joint venture is 51.9%.
This property is now under construction and there will be
no income produced until construction is completed and the joint
venture purchases the property. On September 12, 1995, the
Company entered into a joint venture agreement with AAA Net
Realty Fund XI, Ltd. for the purchase of a property which is
being operated as a Blockbuster Music Store in Wichita, Kansas.
The Company's interest in the joint venture is 51%.
3. MAJOR TENANTS
The following schedule summarizes total rental income by lessee
for the three and six months ended June 30, 1996 and June 30, 1995:
Quarter Year to Date
1996 1995 1996 1995
Tandy Corporation $27,225 $27,225 $54,450 $54,450
America's Favorite Chicken Co. $22,842 $22,099 $45,902 $44,153
Blockbuster Music Retail, Inc. $94,575 $42,631 $189,150 $85,262
One Care Health Industries, Inc. $50,409 $0 $100,818 $0
4. EARNINGS PER SHARE
The number of shares used in earnings per share calculations for
the three and six months ended June 30, 1996 and June 30, 1995
are based on the weighted average number of shares of common
stock outstanding and, if dilutive, common stock equivalents
(stock warrants) of the Company using the modified treasury stock
method.
5. SUBSEQUENT EVENTS
In consideration that no payment has been demanded by Mr. Taylor
for the special compensation payment mentioned in Note 2, the
Board of Directors approved at its August 1, 1996 meeting the
payment of interest at an annual rate of 8% over a six month
period. This interest payment will be paid at the end of the six
month period in cash or in stock.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
American Asset Advisers Trust, Inc. ("the Company") was organized
on August 17, 1993 to acquire, either directly or through joint
venture arrangements, undeveloped, newly constructed and existing
net-lease real estate that is located primarily on corner or out-
parcel locations in strong commercial corridors, to lease to
tenants having a minimum net worth of $40 million on a net-lease
basis, to hold the properties with the expectation of equity
appreciation producing a steadily rising income stream for its
shareholders.
Liquidity and Capital Resources
The Company was organized August 17, 1993 with the intention to
qualify and to operate as a real estate investment trust under
federal tax laws. Commencing March 17, 1994, the Company offered
up to 2,000,000 additional shares of common stock together with
1,000,000 warrants. The offering period terminated on March 15,
1996 with subscriptions having been received for 1,028,253
shares. On June 18, 1996 the Company began a new offering of
2,853,659 shares of its common stock. The offering will
terminate on June 17. 1998. As of June 30, 1996, subscriptions
had been received for 1,028,253 shares.
On August 22, 1995, the Board of Directors approved a special
compensation payment for Mr. Taylor in the amount of $150,000.
Taylor has received no other compensation from the Company
for serving as its President. In connection with the special
compensation payment, the Company executed a demand note payable
at the earlier of July 15, 1996 or the receipt of $10,000,000
from the Company's stock offering. The note shall be payable in
cash or stock depending on the availability of cash for such
payment. No compensation arrangements were considered by the
Directors prior to August 22, 1995, because in their judgment,
the Company had not raised sufficient funds to award such
compensation. The compensation had not been accrued prior to
August 22, 1995 because its payment was uncertain and the level
of compensation had not been determined until the August 1995
meeting of the Board of Directors. As of the termination of the
initial public offering, the Company had sold in excess of
$10,000,000. Although Mr. Taylor can demand payment on the note,
such demand has not been made. The decision regarding the
nature of the payment, whether in stock or cash, will be made by
the Board of Directors at the time Taylor demands payment.
Should the note be paid in cash, such payment would reduce
the funds from operations available for distribution and,
therefore, would decrease distributions to shareholders.
On January 19, 1996, the Company entered into an agreement with
Tucson Oracle Limited Partnership for the purchase of a property
to be constructed in Tucson, Arizona. The property will be
acquired subject to a lease with Just For Feet, Inc. On April 5,
1996, the Company entered into a joint venture with two
affiliated partnerships for the purpose of acquiring this
property. The Company's interest in the joint venture is 51.9%
and the Company's share of the acquisition costs for the property
will approximate $1,826,589 plus $84,886 in acquisition
fees to affiliates. The property is under construction with an
estimated completion date of September 1996.
Results of Operations
Revenues for the three months ended June 30, 1996 were comprised
of $195,051 from the Company's real estate operations and
$40,226 from interest income. This represented an increase of
$103,096 in rental income over the three months ended June 30,
1995 and an increase of $3,091 in interest income. The Company's
rental income was generated from five properties during the first
two quarters of 1996 compared to three properties during the
first two quarters of 1995. The increase in activity also
resulted in a corresponding increase in expenses from
$46,002 during the second quarter of 1995 to $62,556 during the
second quarter of 1996. The Company recorded net income of
$135,379 for the three months ended June 30, 1996 as compared
to $67,135 for the three months ended June 30, 1995.
For the six months ended June 30, 1996, the Company's total
revenues of $462,849 were comprised of $390,320 from real estate
operations and $72,529 from interest income. As previously
discussed, the Company owned five properties for the first two
quarters of 1996 compared to three properties for the same period
in 1995. Expenses increased from $91,480 for the six months
ended June 30, 1995 to $135,351 for the six months ended June 30,
1996 and net income increased from $127,186 to $252,815 for the
same periods.
Revenues increased from $13,750 to $129,090 for the second
quarter of 1995 as compared to the second quarter of 1994. The
Company's real estate operations generated income of $91,955 from
three properties in 1995 while $4,840 was earned during the same
period in 1994 from one property which was acquired in June of
1994. Interest income also increased from $8,910 to $37,135
primarily because the Company has been operational throughout
1995. Proceeds from the Company's common stock offering were not
disbursed from the escrow account until May 9, 1994.
Consequently, no significant interest income was earned by the
Company until that time. The increased activity of the Company
resulted in a corresponding increase in administrative and
professional fees of approximately $18,000. The Company's net
income for the quarter totaled $67,135 compared to $3,000 for the
second quarter of 1994.
For the six months ended June 30, 1995, the Company's real estate
income was $183,865 compared to $4,840 for the six months ended
June 30, 1994. The Company received rental income from three
properties which have been leased throughout 1995. As previously
discussed the Company acquired its first property in June 1994.
Interest income for the six months ended June 30, 1995 totaled
$66,707 compared to $9,886 for the six months ended June 30,
1994. The Company recorded net income of $127,186 and $585 for
the six months ended June 30, 1995 and June 30, 1994,
respectively.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
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 11 - Computation of Earnings Per Share
Exhibit 27 - Financial Data Schedule
Report on Form 8-K:
Form 8-K was filed on April 18, 1996 to report the acquisition of a property
through a joint venture with two affiliates which will be operated as a
Just For Feet retail store upon completion of construction of the property.
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.
American Asset Advisers Trust, Inc.
(Registrant)
August 14, 1996 H. Kerr Taylor
Date H. Kerr Taylor, President
August 14, 1996 H. Kerr Taylor
Date H. Kerr Taylor, Chief Financial Officer
EXHIBIT 11
<TABLE>
AMERICAN ASSET ADVISERS TRUST, INC.
COMPUTATION OF EARNINGS PER SHARE
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND JUNE 30, 1995
<CAPTION>
Quarter Year to Date
1996 1995 1996 1995
<S> <C> <C> <C> <C>
PRIMARY EARNINGS PER SHARE:
Weighted average number of shares of
common stock outstanding 1,028,253 633,601 1,002,281 595,936
Additional shares assuming exercise of
stock warrants (1) 0 0 0 0
Total weighted average common and
common equivalent shares outstanding 1,028,253 633,601 1,002,281 595,936
Net income $ 135,379 $ 67,135 $ 252,815 $ 127,186
Earnings per common and common
equivalent share $ 0.13 $ 0.10 $ 0.25 $ 0.21
FULLY DILUTED EARNINGS PER SHARE:
Weighted average number of shares of
common stock outstanding 1,028,253 633,601 1,002,281 595,936
Additional shares assuming exercise of
stock warrants 312,476 186,874 299,490 174,698
Total weighted average common and
common equivalent shares outstanding 1,340,729 820,475 1,301,771 770,634
Net income (2) $ 168,462 $ 91,252 $ 322,132 $ 176,885
Earnings per common and common
equivalent share $ 0.13 $ 0.11 $ 0.25 $ 0.23
(1) Not applicable in 1996 or 1995 as computations of primary earnings per share exclude common stock equivalents
for any period in which their inclusion would increase the income per share amount otherwise computed.
(2) Includes adjustment for additional interest income from assumed net proceeds from exercise of warrants using
Modified Treasury Stock Method as follows:
Quarter Year to Date
1996 1995 1996 1995
$ 33,083 $ 24,117 $ 69,317 $ 49,699
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,957,500
<SECURITIES> 0
<RECEIVABLES> 3,700
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,961,200
<PP&E> 6,688,177
<DEPRECIATION> 138,419
<TOTAL-ASSETS> 10,666,221
<CURRENT-LIABILITIES> 168,303
<BONDS> 0
0
0
<COMMON> 10,283
<OTHER-SE> 8,838,189
<TOTAL-LIABILITY-AND-EQUITY> 10,666,221
<SALES> 390,320
<TOTAL-REVENUES> 462,849
<CGS> 0
<TOTAL-COSTS> 135,351
<OTHER-EXPENSES> 74,683
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 252,815
<INCOME-TAX> 0
<INCOME-CONTINUING> 252,815
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 252,815
<EPS-PRIMARY> .25
<EPS-DILUTED> 0
</TABLE>
