<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997
OR
Transition pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
COMMISSION FILE NUMBER 333-2522-01
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
Michigan 38-3144240
(State of Organization) (I.R.S. Employer Identification No.)
31700 Middlebelt Road
Suite 145
Farmington Hills,
Michigan 48334
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (810) 932-3100
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. Yes [X] No [ ]
Page 1 of 13
<PAGE> 2
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
INDEX
___________
PART I Pages
Item 1. Financial Statements:
Consolidated Balance Sheets as of June 30, 1997 and
December 31, 1996 3
Consolidated Statements of Income for the Periods
Ended June 30, 1997 and 1996 4
Consolidated Statements of Cash Flows for the Six
Months Ended June 30, 1997 and 1996 5
Notes to Consolidated Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-11
PART II
Item 5. Ratios of Earnings to Fixed Charges 12
Item 6.(a) Exhibits required by Item 601 of Regulation S-K 12
Item 6.(b) Reports on Form 8-K 12
Signatures 13
2
<PAGE> 3
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1997 AND DECEMBER 31, 1996
(IN THOUSANDS)
__________
<TABLE>
<CAPTION>
ASSETS 1997 1996
---- ----
<S> <C> <C>
Investment in rental property, net $ 568,296 $ 558,278
Cash and cash equivalents 1,355 9,236
Investment in Sun Home Services, Inc. ("SHS") 12,972 5,103
Other assets 16,938 12,439
--------- ---------
Total assets $ 599,561 $ 585,056
========= =========
LIABILITIES AND PARTNERS CAPITAL
Liabilities:
Debt $ 185,000 $ 185,000
Accounts payable and accrued expenses 8,987 7,718
Deposits and other liabilities 8,897 9,123
Distributions payable 9,244 ---
--------- ---------
Total liabilities 212,128 201,841
--------- ---------
Partners' Capital:
Preferred Operating Partnership Units ("POP Units"),
unlimited authorized, 1,325 issued and
outstanding in 1997 and 1996 35,783 35,783
Operating Partnership Units ("OP Units"), unlimited
authorized, 18,335 and 17,751 issued and
outstanding in 1997 and 1996, respectively
General partner 306,603 300,932
Limited partners 45,047 46,500
--------- ---------
Total partners' capital 387,433 383,215
--------- ---------
Total liabilities and partners' capital $ 599,561 $ 585,056
========= =========
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
3
<PAGE> 4
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED JUNE 30, 1997 AND 1996
(in thousands)
<TABLE>
<CAPTION>
FOR THE SIX FOR THE THREE
MONTHS ENDED MONTHS ENDED
JUNE 30 JUNE 30
------------- --------------
1997 1996 1997 1996
----- ----- ------ ------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 44,790 $ 29,254 $ 22,152 $ 17,259
Other income 1,836 1,337 1,081 890
-------- -------- -------- -------
Total revenues 46,626 30,591 23,233 18,149
-------- -------- -------- -------
Expenses:
Property operating and
maintenance 10,197 6,483 5,050 3,862
Real estate taxes 3,740 2,266 1,877 1,398
General and administrative 2,196 1,525 1,118 826
Depreciation and amortization 9,777 6,510 4,956 3,750
Interest 6,799 4,704 3,354 2,666
-------- -------- -------- -------
Total expenses 32,709 21,488 16,355 12,502
-------- -------- -------- -------
Income before extraordinary item 13,917 9,103 6,878 5,647
Extraordinary item, early
extinguishment of debt --- (6,896) --- (6,896)
-------- -------- -------- -------
Net income (loss) 13,917 2,207 6,878 (1,249)
Less distribution to Preferred
OP Units 1,252 417 626 417
-------- -------- -------- -------
Earnings (loss) attributable to
OP Units $ 12,665 $ 1,790 $ 6,252 $ (1,666)
======== ======== ======== ========
Net income (loss) attributed to:
General Partner $ 11,015 $ 1,462 $ 5,447 $ (1,475)
Limited Partners 1,650 328 805 (191)
-------- -------- -------- --------
$ 12,665 $ 1,790 $ 6,252 (1,666)
======== ======== ======== ========
Earnings per OP unit:
Income before extraordinary
item $ .70 $ .62 $ .34 $ .32
Extraordinary item -- (.49) -- (.42)
-------- -------- -------- --------
Net income $ .70 $ .13 $ .34 $ (.10)
======== ======== ======== ========
Weighted average OP units
outstanding 18,144 14,064 18,282 16,363
======== ======== ======== =======
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements.
4
<PAGE> 5
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(IN THOUSANDS)
__________
<TABLE>
<CAPTION>
1997 1996
------ -----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 12,665 $ 1,790
Adjustments to reconcile net income to net
cash provided by operating activities:
Extraordinary item, net of prepayment penalties -- 1,390
Depreciation and amortization costs 9,777 6,510
Deferred financing costs 77 158
(Increase) decrease in prepaid expenses and other assets (2,402) 1,358
Increase in accounts payable and other liabilities
1,670 6,886
-------- --------
Net cash provided by operating activities 21,787 18,092
-------- --------
Cash flows from investing activities:
Investment in rental properties (19,318) (58,115)
Investment in affiliates (7,869) 74
Note issued to officer of general partner (2,600) -
-------- ---------
Net cash used in investing activities (29,787) (58,041)
-------- --------
Cash flows from financing activities:
Distributions (16,376) (11,094)
Proceeds from borrowings -- 180,000
Repayments on borrowings -- (238,490)
Payments for deferred financing costs (51) (209)
Capital contribution 16,546 120,851
-------- --------
Net cash provided by financing activities 119 51,058
-------- --------
Net increase (decrease) in cash and cash equivalents (7,881) 11,109
Cash and cash equivalents, beginning of period 9,236 121
-------- --------
Cash and cash equivalents, end of period $ 1,355 $ 11,230
======== ========
Supplemental information:
OP units issued for rental properties -- $ 39,959
Debt assumed for rental properties -- $131,435
</TABLE>
The accompanying notes are an integral part of the consolidated
financial statements
5
<PAGE> 6
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
________
1. BASIS OF PRESENTATION:
These unaudited condensed consolidated financial statements of Sun
Communities Operating Limited Partnership, (the "Company"), have
been prepared pursuant to the Securities and Exchange Commission ("SEC")
rules and regulations and should be read in conjunction with the
financial statements and notes thereto of the Company as of December
31, 1996. The following notes to consolidated financial statements
present interim disclosures as required by the SEC. The accompanying
consolidated financial statements reflect, in the opinion of management,
all adjustments necessary for a fair presentation of the interim
financial statements. All such adjustments are of a normal and
recurring nature. Certain reclassifications have been made to
the prior period financial statements to conform with current
period presentation.
Sun Communities, Inc. ("Sun"), a self-administered and
self-managed Real Estate Investment Trust with no independent
operations of its own, is the sole general partner of the Company.
As general partner, Sun has unilateral control and complete
responsibility for management of the Company. Pursuant to the terms of
the Company's partnership agreement, the Company is required to reimburse
Sun for the net expenses incurred by Sun. Amounts paid on behalf of Sun
by the Company are reflected in the statement of operations as general
and administrative expenses. The balance sheet of Sun as of June 30,
1997 is identical to the accompanying Company balance sheet, except as
follows:
<TABLE>
<CAPTION>
AS PRESENTED
HEREIN SUN COMMUNITIES, INC.
JUNE 30, 1997 ADJUSTMENTS JUNE 30, 1997
----------------- ----------- -----------------
(AMOUNTS IN THOUSANDS)
<S> <C> <C> <C>
Other assets $ 16,938 $ (2,600) $ 14,338
========= ========= =========
Total assets $ 599,561 $ (2,600) $ 596,961
========= ========= =========
Minority interests . . . . . . . . . . . . . . . -- $ 80,830 $ 80,830
=========
Preferred OP Units . . . . . . . . . . . . . . . $ 35,783 (35,783)
General partner . . . . . . . . . . . . . . . . 306,603 (306,603)
Limited partners . . . . . . . . . . . . . . . . 45,047 (45,047)
Common stock . . . . . . . . . . . . . . . . . . 160 $ 160
Additional paid-in capital . . . . . . . . . . . 344,861 344,861
Distributions in excess of
accumulated earnings . . . . . . . . . . . . (29,245) (29,245)
Officers notes . . . . . . . . . . . . . . . . (11,773) (11,773)
Partners' capital/Stockholders' --------- --------- ---------
equity . . . . . . . . . . . . . . . . $ 387,433 (2,600) $ 304,003
========= ========= =========
Total liabilities and partners' capital/
stockholders' equity $ 599,561 $ (2,600) $ 596,961
========= ========= =========
</TABLE>
6
<PAGE> 7
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
________
2. RENTAL PROPERTY:
The following summarizes rental property (in thousands):
June 30, December 31,
1997 1996
--------- -----------
Land $ 60,929 $ 58,943
Land improvements and buildings 529,262 510,726
Furniture, fixtures, equipment 11,062 9,826
Property under development 6,878 9,318
--------- ---------
608,131 588,813
Accumulated depreciation (39,835) (30,535)
--------- ---------
Rental property, net $ 568,296 $ 558,278
========= =========
3. DEBT:
The following table sets forth certain information regarding debt at
June 30, 1997 (in thousands):
Secured term loan, interest at LIBOR
plus 1.50%, due November 1, 1997 $ 35,000
Senior notes, interest at 7.375%, due
May 1, 2001 65,000
Senior notes, interest at 7.625%, due
May 1, 2003 85,000
---------
$ 185,000
=========
4. NOTES RECEIVABLE:
Included in other assets at June 30, 1997 is a $2.6 million 10 year note to
an officer of the general partner, collateralized by 80,000 shares of
Sun Communities, Inc.'s common stock, with personal liability up to
1.3 million which bears interest at LIBOR + 1.75%.
Also included in other assets at June 30, 1997 and 1996 are $4.2
million of second and third mortgage notes collateralized by
manufactured housing communities located in Alberta, Canada bearing
interest at an average rate of 17 percent.
5. OTHER INCOME:
The components of other income are as follows (in thousands):
Six Months Ended Three Months Ended
June 30, June 30,
1997 1996 1997 1996
----- ------ ----- ----
Interest:
Notes and mortgages $ 962 $ 742 $ 526 $ 376
Other 213 339 89 300
Other property revenues 279 226 127 114
Equity earnings - Sun Home
Services, Inc. ( SHS ) 382 30 339 100
------- ------- ------- -----
$ 1,836 $ 1,337 $ 1,081 $ 890
======= ======= ======= =====
7
<PAGE> 8
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
________
OVERVIEW
The following discussion and analysis of the consolidated financial
condition and results of operations should be read in conjunction with the
consolidated financial statements and Notes thereto. Capitalized terms are
used as defined elsewhere in this Form 10-Q.
RESULTS OF OPERATIONS
Comparison of the six months ended June 30, 1997 and 1996
For the six months ended June 30, 1997, net income before
distribution to Preferred OP Units increased 52.9 percent from $9.1
million to $13.9 million, when compared to the six months ended June 30,
1996. The increase was due to increased revenues of $16.0 million while
expenses increased by $11.2 million.
Rental income increased by $15.5 million from $29.3 million to $44.8
million or 53.1 percent, due to acquisitions ($13.6 million), lease
up of sites ($.7 million) and increases in rents and other community revenues
($1.2 million).
Other income increased by $.5 million from $1.3 million to $1.8 million or
37.3 percent due primarily to increased interest income and improved
results of SHS.
Property operating and maintenance increased by $3.7 million from $6.5
million to $10.2 million or 57.3 percent due primarily to acquisitions
($3.2 million).
Real estate taxes increased by $1.5 million from $2.3 million to $3.8
million or 65.0 percent due primarily to acquisitions ($1.3 million).
General and administrative expenses increased by $.7 million from $1.5
million to $2.2 million or 44.0 percent due primarily to increased
staffing to manage the growth of the company. General and administrative
expenses as a percentage of total revenues declined from 5.0 percent to
4.7 percent as a result of economies of scale resulting from the company's
growth.
Earnings before interest, taxes, depreciation and amortization ("EBITDA")
increased by $10.2 million from $20.3 million to $30.5 million or 50.0
percent. EBITDA declined as a percentage of revenues from 66.4 percent to
65.4 percent, primarily due to increased real estate taxes as a percentage
of total revenues.
Depreciation and amortization increased by $3.3 million from $6.5 million to
$9.8 million or 50.2 percent due primarily to acquisitions.
Interest expense increased by $2.1 million from $4.7 million to $6.8
million or 44.5 percent primarily due to increased average debt
outstanding.
The extraordinary item in the six months ended June 30, 1996 results
from the early extinguishment of debt and includes prepayment
penalties and related deferred financing costs.
8
<PAGE> 9
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
________
Comparison of the Three Months Ended June 30, 1997 and 1996
Rental income increased by $4.9 million from $17.3 million to $22.2 million
or 28.4 percent, due to acquisitions ($4.0 million), lease up of sites ($.3
million) and increases in rents and other community revenues ($.6 million).
Property operating and maintenance increased by $1.2 million from $3.9
million to $5.1 million or 30.8 percent, due primarily to acquisitions
($1.0 million).
Real estate taxes increased by $.5 million from $1.4 million to $1.9 million
or 34.3 percent due primarily to acquisitions ($.4 million).
General and administrative expenses increased by $.3 million from $.8
million to $1.1 million or 35.3 percent, due primarily to increased
staffing to manage the growth of the company. General and administrative
expenses as a percentage of total revenues increased from 4.6 percent to 4.8
percent.
Earnings before interest, taxes, depreciation and amortization
("EBITDA") increased by $3.1 million from $12.1 million to $15.2 million
or 25.9 percent. EBITDA declined as a percentage of revenues from 66.5
percent to 65.4 percent.
Depreciation and amortization increased by $1.2 million from $3.8 million
to $5.0 million or 32.2 percent due primarily to acquisitions.
Interest expense increased by $.7 million from $2.7 million to $3.4 million
or 25.8 percent due to increased debt outstanding.
The extraordinary item in the three months ended June 30, 1996 results
from the early extinguishment of debt and includes prepayment
penalties and related deferred financing costs.
9
<PAGE> 10
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
________
SAME PROPERTY INFORMATION
The following table reflects property-level financial information as of and
for the six months ended June 30, 1997 and 1996. The "Same Property"
data represents information regarding the operation of communities owned
as of January 1, 1996. Site, occupancy, and rent data for those
communities is presented as of the last day of each period
presented. The table excludes the 1,200 sites where the Company's interest
is in the form of a shared appreciation mortgage note.
<TABLE>
<CAPTION>
SAME PROPERTY TOTAL PORTFOLIO
------------------ -------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Property revenues, including other $ 25,096 $ 23,579 $ 45,069 $ 29,480
-------- -------- -------- --------
Property operating expenses:
Property operating and maintenance 4,833 4,516 10,197 6,483
Real estate taxes 1,929 1,750 3,740 2,266
-------- -------- -------- --------
Property operating expenses 6,762 6,266 13,937 8,749
-------- -------- -------- --------
Property EBITDA $ 18,334 $ 17,313 $ 31,132 $ 20,731
======== ======== ======== ========
Number of properties 52 52 84 77
Developed sites 17,535 16,970 30,400 27,380
Occupied sites 16,511 16,137 28,133 25,701(1)
Occupancy % 94.2% 95.1% 94.7%(1) 95.4%(1)
Weighted average monthly rent per
site $ 249 $ 237 $ 255(1) $ 247(1)
Sites available for development 1,732 2,643 3,312 2,872
Sites in development 398 624 736 643
</TABLE>
(1) Occupancy % and weighted average rent relates to manufactured
housing sites, excluding recreational vehicle sites.
On a same property basis, property revenues increased by $1.5 million
from $23.6 million to $25.1 million, or 6.4 percent, due primarily to
increases in rents and occupancy related charges including water and
property tax pass throughs. Also contributing to revenue growth was the
increase of 374 leased sites at June 30, 1997 compared to June 30, 1996.
Property operating expenses increased by $.5 million from $6.3 million
to $6.8 million, or 7.9 percent, due to increased occupancies and
costs and increases in assessments and millage rates by local taxing
authorities. Property EBITDA increased by $1.0 million from $17.3 million
to $18.3 million, or 5.9 percent.
10
<PAGE> 11
SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
________
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents decreased by $7.9 million to $1.4 million at
June 30, 1997 compared to $9.2 million at December 31, 1996 primarily because
cash used in investing activities exceeded cash provided by operating
activities.
Net cash provided by operating activities increased by $3.7 million to
$21.8 million for the six months ended June 30, 1997 compared to $18.1
million for the same period in 1996. Net income before depreciation and
amortization, minority interests and extraordinary item increased by
$12.8 million which was offset by $9.1 million of increases in other assets
and liabilities.
Net cash used in investing activities was $29.8 million for the six months
ended June 30, 1997 compared to $58.0 million for the same period in 1996.
$38.8 million of this decrease was due to acquisition related activities with
$10.5 million of the remaining balance attributable to the Company's
investment in affiliates and loan to an officer of the general partner.
Net cash provided by financing activities was $.1 million for the six months
ended June 30, 1997 primarily due to $16.5 million of capital contributions
exceeding $16.4 million of distributions paid. For the same period in 1996,
net cash provided by financing activities was $51.1 million due to
increased net borrowings and proceeds from capital contributions.
The Company expects to meet its short-term liquidity requirements generally
through its working capital provided by operating activities and
additional capital contributions. The Company considers these sources to
be adequate and anticipates they will continue to be adequate to meet
operating requirements, capital improvements, investment in site
development, and payment of distributions by the Company in accordance with
REIT requirements in both the short and long term.
The Company expects to meet certain long-term liquidity requirements such as
scheduled debt maturities and property acquisitions through the issuance of
equity or debt securities. The Company can also meet these requirements by
utilizing its $75 million line of credit which bears interest at LIBOR plus
1.25% and is due November 1, 1999.
At June 30, 1997, the Company's debt to total market capitalization
approximated 22% percent (assuming conversion of all Common and Preferred OP
Units to shares of common stock), with a weighted average maturity of
approximately 4.1 years and a weighted average interest rate of 7.5 percent.
Recurring capital expenditures approximated $1.9 million for the six months
ended June 30, 1997.
11
<PAGE> 12
PART II
ITEM 5. - RATIOS OF EARNINGS TO FIXED CHARGES
The Company's ratios of earnings to fixed charges for the years December
31, 1992, 1993, 1994, 1995 and 1996, and the six months ended June 30, 1997
were 1.05:1, 1.05:1, 2.79:1, 3.03:1, 2.49:1, and 2.49:1, respectively.
ITEM 6.(a) - EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-K
EXHIBIT NO. DESCRIPTION
------------ -----------
12.1 Ratios of Earnings to Fixed
27 Charges Financial Data
Schedule
ITEM 6.(b) - REPORTS ON FORM 8-K
The Company did not file any reports on Form 8-K during the period
covered by this Form 10-Q.
12
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: August 12, 1997
SUN COMMUNITIES OPERATING
LIMITED PARTNERSHIP
By: Sun Communities, Inc., General Partner
BY: /s/ Gary A. Shiffman
-------------------------------
Gary A. Shiffman, President
BY: /s/ Jeffrey P. Jorissen
-------------------------------
Jeffrey P. Jorissen, Chief
Financial Officer and Secretary
13
<PAGE> 14
EXHIBIT INDEX
PAGE
FILED NUMBER
EXHIBIT NO. DESCRIPTION HEREWITH HEREIN
----------- ----------- -------- ------
12.1 Ratio of Earnings to Fixed Charges X
27 Financial Data Schedule X
14
<PAGE> 1
EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
DIVIDENDS
The ratio of earnings to fixed charges for the Company (including its
predecessor-in-interest, Sundance Enterprises, Inc., the partnerships
affiliated with Sundance Enterprises, Inc., and the Company's
subsidiaries and majority-owned partnerships) presents the relationship of
the Company's earnings to its fixed charges. "Earnings" as used in the
computation, is based on net income (loss) from continuing operations (which
includes a charge to income for depreciation and amortization expense)
before income taxes, plus fixed charges. "Fixed charges" is comprised of
(I) interest charges, whether expensed or capitalized, and (ii) amortization
of loan costs and discounts or premiums relating to indebtedness of the
Company and its subsidiaries and majority-owned partnerships, excluding in
all cases items which would be or are eliminated in consolidation.
<TABLE>
6 MONTHS YEAR ENDED
ENDED DECEMBER 31,
6/30/97 1996 1995 1994 1993 1992
------- ------- ------- ------- ------- -------
(UNAUDITED, IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
Earnings: (1)
Net income (loss) $ 13,917 $ 21,953 $ 13,591 $ 8,924 $ 288 $ 272
Add fixed charges other
than capitalized interest 6,799 11,277 6,420 4,894 5,280 5,522
-------- -------- -------- ------- ------ ------
20,716 $ 33,230 $ 20,011 $ 13,818 $ 5,568 $ 5,794
======== ======== ======== ======== ======= =======
Fixed Charges:
Interest expense $ 6,799 $ 11,277 $ 6,420 $ 4,894 $ 5,280 $ 5,522
Preferred OP distribution 1,252 1,670 -- -- -- --
Capitalized interest 255 380 192 58 -- --
-------- -------- -------- -------- ------- --------
Total fixed charges $ 8,306 $ 13,327 $ 6,612 $ 4,952 $ 5,280 $ 5,522
======== ======== ======== ======== ======= ========
Ratio of Earnings to
Fixed Charges: 2.49:1 2.49:1 3.03:1 2.79:1 1.05:1 1.05:1
</TABLE>
(1) Before extraordinary item
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,355
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 608,131
<DEPRECIATION> 39,835
<TOTAL-ASSETS> 599,561
<CURRENT-LIABILITIES> 0
<BONDS> 185,000
0
0
<COMMON> 0
<OTHER-SE> 387,433
<TOTAL-LIABILITY-AND-EQUITY> 599,561
<SALES> 0
<TOTAL-REVENUES> 46,626
<CGS> 0
<TOTAL-COSTS> 13,937
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,799
<INCOME-PRETAX> 13,917
<INCOME-TAX> 0
<INCOME-CONTINUING> 13,917
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,665
<EPS-PRIMARY> .70
<EPS-DILUTED> .70
</TABLE>
