SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-28340
AMERICAN TAX-EXEMPT BOND TRUST
(Exact name of registrant as specified in its charter)
Delaware 13-7033312
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Securi-
ties Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes X No ____
<PAGE>
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Balance Sheets
<CAPTION>
March 31, December 31,
1999 1998
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
Investment in First Mortgage
Bonds - at fair value (Note 2) $26,607,953 $26,607,953
Cash and cash equivalents 517,165 889,126
Marketable securities 300,000 0
Organization costs (net of
accumulated amortization of
$50,000 and $37,500, respectively) 0 12,500
Accrued interest receivable 185,160 182,058
Total assets $27,610,278 $27,691,637
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Due to affiliates $ 710,271 $ 640,178
Accounts payable 14,768 21,000
Total liabilities 725,039 661,178
Shareholders' equity:
Beneficial owner's equity-manager (21,626) (19,941)
Beneficial owners' equity-
shareholders (1,491,765
and 1,488,661 shares
issued and outstanding,
respectively) 25,281,211 25,389,056
Treasury shares of beneficial
interest (28,244 and 25,140 shares,
respectively) (536,636) (477,660)
Accumulated other comprehensive
income:
Net unrealized gain on First
Mortgage Bonds 2,162,290 2,139,004
Total shareholders' equity 26,885,239 27,030,459
Total liabilities and shareholders'
equity $27,610,278 $27,691,637
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Statements of Operations
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Revenues
Interest income:
First Mortgage Bonds (Note 2) $525,942 $506,531
Marketable Securities 5,168 9,287
Total revenues 531,110 515,818
Expenses:
General and administrative 25,724 12,457
General and administrative-
related parties (Note 3) 26,113 13,816
Loan servicing fees 14,656 14,656
Amortization of organization costs 12,500 2,500
Total expenses 78,993 43,429
Net income $452,117 $472,389
Allocation of net income
Shareholders $418,174 $438,243
Manager 4,224 4,427
Special distributions
to Manager (Note 3) 29,719 29,719
Net income $452,117 $472,389
Basic income per weighted average
-shareholders $ .29 $ .30
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Statement of Changes in Shareholders' Equity
(Unaudited)
<CAPTION>
Beneficial Beneficial
Owner's Owner's
Equity- Equity-
Total Shareholders Manager
<S> <C> <C> <C>
Balance at
January 1, 1999 $27,030,459 $25,389,056 $ (19,941)
Issuance of shares of
beneficial ownership interest 58,980 58,980 0
Comprehensive Income:
Net income 452,117 418,174 33,943
Other Comprehensive Income:
Net unrealized gain on
First Mortgage Bonds 23,286 0 0
Distributions (620,627) (584,999) (35,628)
Purchase of treasury shares of
beneficial interest (58,976) 0 0
Balance at
March 31, 1999 $26,885,239 $25,281,211 $ (21,626)
<CAPTION>
Treasury Accumulated
Shares of Other
Beneficial Comprehensive Comprehensive
Interest Income Income
<S> <C> <C> <C>
Balance at
January 1, 1999 $(477,660) $2,139,004 $3,903,172
Issuance of shares of beneficial
ownership interest 0 0 0
Comprehensive Income:
Net income 0 0 452,117
Other Comprehensive Income:
Net unrealized gain on
First Mortgage Bonds 0 23,286 23,286
Distributions 0 0 0
Purchase of treasury
shares of
beneficial
interest (58,976) 0 0
Balance at
March 31, 1999 $(536,636) $2,162,290 $ 475,403
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Statements of Cash Flows
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net income $452,117 $472,389
Adjustments to reconcile net
income to net cash
provided by operating activities
Amortization expense-
organization costs 12,500 2,500
Amortization expense-loan
origination costs 23,286 26,889
Changes in operating assets and
liabilities:
Decrease in accrued
interest receivable (3,102) (835)
Increase in due to affiliates 70,093 29,048
Decrease in accounts payable (6,232) (13,364)
Total adjustments 96,545 44,238
Net cash provided by operating
activities 548,662 516,627
Cash flows from investing activities:
Purchase of marketable securities (300,000) (300,000)
Increase in deferred costs 0 (26,614)
Net cash used in investing activities (300,000) (326,614)
Cash flows from financing activities:
Proceeds from issuance of shares
of beneficial interest 58,980 60,646
Distributions to shareholders (620,627) (622,321)
Purchase of treasury shares of
beneficial interest (58,976) (140,733)
Net cash used in
financing activities (620,623) (702,408)
Net decrease in cash and
cash equivalents (371,961) (512,395)
Cash and cash equivalents at
beginning of period 889,126 1,081,939
Cash and cash equivalents at
end of period $517,165 $ 569,544
See Accompanying Notes to Consolidated Financial Statements.
</TABLE>
<PAGE>
AMERICAN TAX-EXEMPT BOND TRUST
Notes to Financial Statements
March 31, 1999
(Unaudited)
Note 1 - General
American Tax-Exempt Bond Trust (the "Trust") was formed on
December 23, 1993 as a Delaware business trust for the primary
purpose of investing in tax-exempt first mortgage bonds ("First
Mortgage Bonds") issued by various state or local governments or
their agencies or authorities and secured by first mortgage loans
on multifamily residential apartment and retirement community
projects. Related AMI Associates, Inc. is the Manager ("Manager")
of the Trust.
Pursuant to the Redemption Plan which became effective October
15, 1996, the Trust is required to redeem eligible shares presented
for redemption for cash to the extent it has sufficient net proceeds
from the sale of shares under the Reinvestment Plan. As of March
31, 1999, the backlog of shares to be redeemed is 31,953.
The Trust has invested the Net Proceeds primarily in First Mort-
gage Bonds issued by various state or local governments or their
agencies or authorities which are secured by first mortgages and
related first mortgage loans financed by such bonds (collectively,
"Mortgage Loans") on multifamily residential apartment projects
owned or to be developed by third-party developers and, to a
lesser extent, by Affiliates of the Manager. The Trust is also per-
mitted to invest in other tax-exempt securities which have shorter
maturities than First Mortgage Bonds ("Tax-Exempt Securities").
However, all Tax-Exempt Securities owned by the Trust have
matured and the Trust does not anticipate making additional in-
vestments in Tax-Exempt Securities.
The Trust's marketable securities at March 31, 1999, consist en-
tirely of commercial paper, which have a carrying value that ap-
proximates their market value. The Trust follows the provisions of
the Financial Accounting Standards Board's Statement of Financial
Accounting Standards ("SFAS") SFAS No. 115 Accounting for
Certain Investments in Debt and Equity Securities. At March 31,
1999 and December 31, 1998, the Trust has classified its first mort-
gage bonds and marketable securities as available for sale.
The unaudited financial statements have been prepared on the
same basis as the audited financial statements included in the
Trust's Form 10-K for the year ended December 31, 1998. In the
opinion of the Manager, the accompanying unaudited financial
statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial
position of the Trust as of March 31, 1999, the results of operations
and its cash flows for the three months ended March 31, 1999 and
1998. However, the operating results for the three months ended
March 31, 1999 may not be indicative of the results for the year.
Certain information and note disclosures normally included in
financial statements prepared in accordance with generally ac-
cepted accounting principles have been omitted. It is suggested
that these financial statements be read in conjunction with the
financial statements and notes thereto included in the Trust's An-
nual Report on Form 10-K for the year ended December 31, 1998.
Note 2 - Investment in First Mortgage Bonds
General
The cost basis of the First Mortgage Bonds was $24,445,663 and
$24,468,949 at March 31, 1999 and December 31, 1998. The net
unrealized gain on First Mortgage Bonds of $2,162,290 and
$2,139,004 as of March 31, 1999 and December 31, 1998, respec-
tively, consists of gross unrealized gains and losses of $2,167,281
and $4,991, respectively, at March 31, 1999 and $2,150,794 and
$11,790, respectively, as of December 31, 1998.
<TABLE>
AMERICAN TAX-EXEMPT BOND TRUST
Notes to Financial Statements
March 31, 1999
(Unaudited)
Note 2 - Investment in First Mortgage Bonds
Information relating to investments in First Mortgage Bonds as of
March 31, 1999 and December 31, 1998 are as follows:
<CAPTION>
Date of Outstan-
Invest- ding Loan Loan
ment/Final Balance at Origina-
Descrip- Maturity March tion
Property tion Date 31, 1999 Costs
<S> <C> <C> <C> <C>
Reflections
Apartments 336
Casselbury, Apt. 12/95 -
Florida (A) Units 12/25 $10,700,000 $293,914
Rolling Ridge
Apartments 110
Chino Hills, Apt. 8/96-
California(B) Units 8/26 4,925,000 241,725
Lexington Trails
Apartments 200
Houston, Apt. 5/97-
Texas (C) Units 5/22 4,900,000 123,886
Highpointe Apartments
Harrisburg, 240
Pennsylvania Apt. 9/97-
(D) Units 6/06 3,250,000 237,917
$23,775,000 $897,442
<CAPTION>
Accumu-
lated Unrealized
Amorti- Gain (Loss)
zation at at Balance at Balance at
Mar. 31, March 31, March December
Property 1999 1999 31, 1999 31, 1998
<S> <C> <C> <C> <C>
Reflections
Apartments
Casselbury,
Florida (A) $ (95,522) $1,386,998 $12,285,390 $12,285,390
Rolling Ridge
Apartments
Chino Hills,
California(B) (64,460) 450,793 5,553,058 5,553,058
Lexington Trails
Apartments
Houston,
Texas (C) (23,745) 329,490 5,329,631 5,329,632
Highpointe Apartments
Harrisburg,
Pennsylvania
(D) (43,052) (4,991) 3,439,874 3,439,873
$(226,779) $2,162,290 $26,607,953 $26,607,953
<CAPTION>
Debt
Service
Earned Net
by the Less 1999 Interest
Trust Amorti- Earned
Property for 1999 zation for 1999
<S> <C> <C> <C>
Reflections
Apartments
Casselbury,
Florida (A) $240,750 $ (7,348) $233,402
Rolling Ridge
Apartments
Chino Hills,
California(B) 125,103 (6,043) 119,060
Lexington Trails
Apartments
Houston,
Texas (C) 110,250 (3,097) 107,153
Highpointe Apartments
Harrisburg,
Pennsylvania
(D) 73,125 (6,798) 66,327
$549,228 $(23,286) $525,942
(A) The interest rate for the Reflections is 9.00%. In addition to the
interest rate the Trust will be entitled to 25% of the cash flow, as defined.
(B) The interest rate for the Rolling Ridge is 9.00%. In addition to the
interest rate the Trust will be entitled to 30% of the cash flow, as defined.
(C) The interest rate for the Lexington Trails is 9.00%.
(D) The interest rate for the Highpointe is 9.00%.
</TABLE>
Note 3 - Related Party Transactions
<TABLE>
The costs incurred to related parties for the three months ended
March 31, 1999 and 1998 were as follows:
<CAPTION>
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Special distributions (i) $ 29,719 $ 29,719
Expense reimbursements (iii) 26,113 13,816
$ 55,832 $ 43,535
</TABLE>
In accordance with the Trust Agreement, the Manager received or
is entitled to receive (i) special distributions calculated as a per-
centage of total assets invested by the Trust; the total amount ac-
crued and unpaid as of March 31, 1999 and December 31, 1998
amounted to $225,641 and $195,922, respectively; (ii) a subordi-
nated incentive fee based on the gain on the sale of the tax-exempt
First Mortgage Bonds; (iii) reimbursement of certain administra-
tive costs incurred by the Manager or an affiliate on behalf of the
Trust; the total amount accrued and unpaid as of March 31, 1999
and December 31, 1998 amounted to $400,012 and $373,899, re-
spectively.
Note 4 - Subsequent Event
In May 1999, it is anticipated that distributions of approximately
$585,000 and $6,000 will be paid to the Shareholders and the Man-
ager, respectively, representing the 1999 first quarter distribution.
The distribution will be funded from cash collections of interest
income through approximately the distribution date, May 14,
1999.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Con-
dition and Results of Operations.
Liquidity and Capital Resources
The Trust has invested the Net Proceeds primarily in First Mort-
gage Bonds issued by various state or local governments or their
agencies or authorities which are secured by first mortgages and
related first mortgage loans financed by such bonds (collectively,
"Mortgage Loans") on multifamily residential apartment projects
owned or to be developed by third-party developers and, to a
lesser extent, by Affiliates of the Manager. The First Mortgage
Bonds have maturities ranging from June 2006 to August 2026,
although the Trust anticipates holding the First Mortgage Bonds
for approximately 10 to 12 years and has the right to cause repay-
ment of the bonds at that time. The Trust is also permitted to
invest in Tax-Exempt Securities. However, all Tax-Exempt Securi-
ties owned by the Trust have matured and the Trust does not
anticipate making additional investments in Tax-Exempt Securi-
ties.
During the quarter ended March 31, 1999, the Trust recorded an
unrealized gain on First Mortgage Bonds of $23,286 primarily due
to interest rate fluctuations. For a description of the Trust's in-
vestments in First Mortgage Bonds see Note 2 of Notes to the Fi-
nancial Statements.
During the three months ended March 31, 1999, cash and cash
equivalents decreased approximately $372,000 due to the purchase
of marketable securities ($300,000) and distributions to sharehold-
ers ($621,000) which exceeded cash provided by operating activi-
ties ($549,000). Included in the adjustments to reconcile the net
income to cash provided by operating activities is amortization in
the amount of approximately $36,000.
Pursuant to the Redemption Plan which became effective October
15, 1996, the Trust is required to redeem eligible shares presented
for redemption for cash to the extent it has sufficient net proceeds
from the sale of shares under the Reinvestment Plan. As of March
31, 1999, the backlog of shares to be redeemed is 31,953.
The Trust expects that cash generated from its investments will be
sufficient to pay all of the Trust's expenses in the foreseeable fu-
ture. However, certain expense reimbursements totaling ap-
proximately $400,000 and $374,000 at March 31, 1999 and Decem-
ber 31, 1998, respectively, and the payment of a portion of the
special distribution totaling approximately $226,000 and $196,000
at March 31, 1999 and December 31, 1998, respectively, to the
Manager have been accrued and are unpaid. Without the Man-
ager's continued accrual without payment of the aforementioned
expense reimbursements and distributions the Trust will not be in
a position to maintain its current distribution level. The Manager
has continued allowing the accrual without payment of these
amounts but is under no obligation to continue to do so.
The Trust anticipates that cash generated from the operations of
the properties underlying its investment in First Mortgage Bonds
(taking into account its preferred position relative to other credi-
tors) will be sufficient to meet the required debt service payments
to the Trust with respect to the First Mortgage Bonds for the fore-
seeable future.
Distribution Policy
The level of future distributions will depend upon results of opera-
tions. Beginning in 1998, the Trust's distribution policy calls for
quarterly distributions which more closely reflect collections.
Notwithstanding the foregoing, the Trust may continue to accrue
expenses and fees paid to the Manager. Although under no obli-
gation to do so, to date the Manager has continued to supplement
the amount available for distribution by continuing to defer pay-
ment of its fees. As a result, the Trust was able to maintain an
annual distribution rate of $1.60 per share.
Of the total distributions of $620,627 and $622,321 paid during the
three months ended March 31, 1999 and 1998, $168,510 ($.11 per
share or 27%) and $149,932 ($.10 per share or 24%) represents a
return of capital determined in accordance with generally ac-
cepted accounting principles. As of March 31, 1999, the aggregate
amount of the distributions made since the commencement of the
Offering representing a return of capital, in accordance with gen-
erally accepted accounting principles, totaled $2,262,543. The
portion of the distributions which constitute a return of capital
was significant during the acquisition stage in order to maintain
level distributions to shareholders.
Management expects that cash flow from operations and contin-
ued deferral of payment of the Manager's expense reimbursement,
special distribution and loan servicing fee, will be sufficient to
permit the funding of distributions at the current level in the near
future.
Results of Operations
The results of operations for the three months ended March 31,
1999 and 1998 consisted primarily of interest income earned on
First Mortgage Bonds and marketable securities, net of general
and administrative, general and administrative-related parties and
loan servicing fees.
General and administrative expenses increased approximately
$13,000 for the three months ended March 31, 1999 as compared to
the corresponding period in 1998 primarily due to an increase in
computer consulting fees.
General and administrative-related parties increased approxi-
mately $12,000 for the three months ended March 31, 1999 as
compared to the corresponding period in 1998 primarily due to
higher expense reimbursements to affiliates of the Manager.
Amortization of organization costs increased $10,000 for the three
months ended March 31, 1999 as compared to the corresponding
period in 1998 due to the adoption of Statement of Position 98-5
Reporting on Costs of Start-Up Activity, pursuant to which the
Trust is required to charge all unamortized organization costs as
of January 1, 1999.
Accounting Standards Issued but not yet Adopted
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133 ("SFAS 133")
"Accounting for Derivative Instruments and Hedging Activities".
The Statement establishes accounting and reporting standards for
derivative instruments and hedging activities. This Statement is
effective for all fiscal quarters of fiscal years beginning after June
15, 1999. The adoption of SFAS 133 is not expected to have any
impact on the financial position or results of operations of the
Trust.
Year 2000 Compliance
The Trust utilizes the computer services of an affiliate of the Man-
ager. The affiliate of the Manager has upgraded its computer
information systems to be year 2000 compliant and beyond. The
Year 2000 compliance issue concerns the inability of a computer-
ized system to accurately record dates after 1999. The affiliate of
the Manager recently underwent a conversion of its financial sys-
tems applications and upgraded all of its non-compliant in-house
software and hardware inventory. The work stations that experi-
enced problems from the testing process were corrected with an
upgrade patch. The costs incurred by the Manager are not being
charged to the Trust. The most likely worst case scenario that the
Trust faces is that computer operations will be suspended for a
few days to a week at January 1, 2000. The Trust's contingency
plan is to have a complete backup done on December 31, 1999 and
both electronic and printed reports generated for all critical data
up to and including December 31, 1999.
In regard to third parties, the Trust's Manager is in the process of
evaluating the potential adverse impact that could result from the
failure of material service providers to be Year 2000 compliant. A
detailed survey and assessment was sent to material third parties
in the fourth quarter of 1998. The Trust has received assurances
from a majority of its third parties with which it interacts that they
have addressed the Year 2000 issues and is evaluating these assur-
ances for their adequacy and accuracy. In cases where the Trust
has not received assurances from third parties, it is initiating fur-
ther mail and/or phone correspondence. The Trust relies heavily
on third parties and is vulnerable to the failures of third parties to
address their year 2000 issues. There can be no assurance given
that the third parties will adequately address their issues.
Quantitative and Qualitative Disclosures about Market Risk
The Trust is exposed to interest rate risk as it relates to its invest-
ments in First Mortgage Bonds. At March 31, 1999, 96% of the
Trusts assets are invested in four First Mortgage Bonds, all of
which have a fixed interest rate of 9% and maturities ranging from
10 to 30 years. The first mortgage bonds are classified as available
for sale and are carried at fair value with a net unrealized gain of
$2,162,290 reported as a separate component of other comprehen-
sive income. Two First Mortgage Bonds, representing 67% of the
total investment in First Mortgage Bonds, are also entitled to par-
ticipation in the cash flow of the underlying property, as defined.
The fair value of the First Mortgage Bonds is estimated by the
Manager based on the current interest rate environment for similar
securities, cash flow projections for the underlying properties, a
reversion estimate, prepayment assumptions and an estimate of
cash flow participation, when applicable. A 1% increase in the
current interest rate environment assumption at March 31, 1999
would result in a decrease of approximately $470,000 in the net
unrealized gain on First Mortgage Bonds.
The Trusts ultimate realized gain or loss as it relates to interest rate
fluctuations is dependent on when, and if, the Trust disposes of
the First Mortgage Bonds prior to maturity. The Trust has the
right to call the First Mortgage Bonds after a period of 10 to 12
years from the date of acquisition for face value. The First Mort-
gage Bonds are not allowed to be prepaid during the first five
years, and are subject to a prepayment premium in years six
through ten.
<PAGE>
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) 3. Exhibits
3(a) Certificate of Trust and Certificate of Amendment
of Certificate of Trust (incorporated by reference to Exhibit 3(a) to
the Registration Statement on Form S-11, File No. 33-73688).
3(b),4 Second Amended and Restated Business Trust
(incorporated by reference to Exhibit 3(b), 4 to the Registration
Statement on Form S-11, File No. 33-73688)
10(a) Escrow Agreement (incorporated by reference to
Exhibit 10(a) to the Registration Statement on Form S-11, File No.
33-73688).
10(b) Fee Agreement (incorporated by reference to Ex-
hibit 10 (b) to the Registration Statement on Form S-11, File No.
33-73688).
27 Financial Data Schedule (filed herewith)
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter
ended March 31, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securi-
ties Exchange Act of 1934, the registrant has duly caused this re-
port to be signed on its behalf by the undersigned, thereunto duly
authorized.
AMERICAN TAX-EXEMPT BOND TRUST
(Registrant)
By: RELATED AMI ASSOCIATES, INC.,
as Manager
Date: May 12, 1999
By: /s/ Alan P. Hirmes
Alan P. Hirmes
Senior Vice President and
Principal Financial Officer
Date: May 12, 1999
By: /s/ Glenn F. Hopps
Glenn F. Hopps
Treasurer and
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information extracted
from the financial statements for American Tax-Exempt Bond
Trust and is qualified in its entirety by reference to such financial
statements
</LEGEND>
<CIK> 0000916824
<NAME> American Tax-Exempt Bond Trust
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 817,165
<SECURITIES> 26,607,953
<RECEIVABLES> 185,160
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 27,610,278
<CURRENT-LIABILITIES> 725,039
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 26,885,239
<TOTAL-LIABILITY-AND-EQUITY> 27,610,278
<SALES> 0
<TOTAL-REVENUES> 531,110
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 78,993
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 452,117
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 452,117
<EPS-PRIMARY> .29
<EPS-DILUTED> 0
</TABLE>
