-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NVz8LHPPXXnIc22WN8Dn6N3oRhA8l8/+aPvoGmf7TqZBjHB/RJ6YmA+TzyaYkzTn dCTXo4tymyh0uVHa7JP+Yg== 0000768834-96-000002.txt : 19960513 0000768834-96-000002.hdr.sgml : 19960513 ACCESSION NUMBER: 0000768834-96-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960510 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANGELES INCOME PROPERTIES LTD II CENTRAL INDEX KEY: 0000711642 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953793526 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-11767 FILM NUMBER: 96559846 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: P.O. BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 10QSB 1 FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Quarterly or Transitional Report (As last amended by 34-32231, eff. 6/3/93.) U.S. 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 March 31, 1996 [] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the transition period.........to......... Commission file number 0-11767 ANGELES INCOME PROPERTIES, LTD. II (Exact name of small business issuer as specified in its charter) California 95-3793526 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) One Insignia Financial Plaza, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) Issuer's telephone number (864) 239-1000 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 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS a) ANGELES INCOME PROPERTIES, LTD. II CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands, except unit data) March 31, 1996 Assets Cash and cash equivalents: Unrestricted $ 1,906 Restricted--tenant security deposits 247 Accounts receivable (net of allowance for doubtful accounts of $69) 104 Escrows for taxes 185 Restricted escrows 430 Other assets 497 Investment in, and advances of $43 to, 35 Joint Venture Investment properties Land $ 2,197 Buildings and related personal property 32,408 34,605 Less accumulated depreciation (21,718) 12,887 $ 16,291 Liabilities and Partners' Deficit Liabilities Accounts payable $ 89 Tenant security deposits 245 Accrued taxes 189 Other liabilities 279 Mortgage notes payable 16,656 Partners' Deficit General partners $ (450) Limited partners (99,851 units issued and outstanding) (717) (1,167) $ 16,291 See Accompanying Notes to Consolidated Financial Statements b) ANGELES INCOME PROPERTIES, LTD. II CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1996 1995 Revenues: Rental income $ 1,609 $ 1,912 Other income 69 70 Total revenues 1,678 1,982 Expenses: Operating 452 608 General and administrative 88 79 Maintenance 172 141 Depreciation 433 572 Interest 396 578 Property taxes 133 125 Bad debt expense 38 -- Total expenses 1,712 2,103 Equity in loss of Joint Venture (30) (19) Gain on transfer of property in foreclosure -- 1,385 Loss on disposal of property -- (40) (Loss) income before extraordinary item (64) 1,205 Extraordinary gain on extinguishment of debt -- 551 Net (loss) income $ (64) $ 1,756 Net (loss) income allocated to general partners (1%) $ (1) $ 18 Net (loss) income allocated to limited partners (99%) (63) 1,738 $ (64) $ 1,756 Per limited partnership unit: (Loss) income before extraordinary item $ (.63) $ 11.95 Extraordinary gain on debt -- 5.46 Net (loss) income $ (.63) $ 17.41 See Accompanying Notes to Consolidated Financial Statements c) ANGELES INCOME PROPERTIES, LTD. II CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Unit Partners Partners Total Original capital contributions 100,000 $ 1 $ 50,000 $ 50,001 Partners' deficit at December 31, 1995 99,851 $ (449) $ (654) $ (1,103) Net loss for the three months ended March 31, 1996 -- (1) (63) (64) Partners' deficit at March 31, 1996 99,851 $ (450) $ (717) $ (1,167) See Accompanying Notes to Consolidated Financial Statements
d) ANGELES INCOME PROPERTIES, LTD. II (Unaudited) CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
Three Months Ended March 31, 1996 1995 Cash flows from operating activities: Net (loss) income $ (64) $ 1,756 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Bad debt expense 38 -- Depreciation 433 572 Amortization of discounts, loan costs and lease commissions 30 39 Equity in loss of joint venture 30 19 Gain on transfer of property in foreclosure -- (1,385) Extraordinary gain on extinguishment of debt -- (551) Loss on disposal of asset -- 40 Change in accounts: Restricted cash (2) (10) Accounts receivable (32) (26) Escrows for taxes (89) (76) Other assets (10) 6 Accounts payable (58) (89) Tenant security deposit liabilities 2 6 Accrued taxes 75 66 Other liabilities 34 138 Net cash provided by operating activities 387 505 Cash flows from investing activities: Property improvements and replacements (64) (146) Deposits to restricted escrows (16) (34) Receipts from restricted escrows -- 25 Advances to Joint Venture (29) -- Net cash used in investing activities (109) (155) Cash flows from financing activities: Loan costs (10) -- Payments on mortgage notes payable (70) (63) Net cash used in financing activities (80) (63) Net increase in cash balance 198 287 Cash at beginning of period 1,708 1,063 Cash at end of period $ 1,906 $ 1,350 Supplemental disclosure of cash flow information: Cash paid for interest $ 370 $ 377 See Accompanying Notes to Consolidated Financial Statements
e) ANGELES INCOME PROPERTIES, LTD. II NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note A - Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the Managing General Partner, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1996, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1996. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-KSB for the fiscal year ended December 31, 1995. Certain reclassifications have been made to the 1995 information to conform to the 1996 presentation. Note B - Transactions with Affiliated Parties The Partnership has no employees and is dependent on the Managing General Partner and its affiliates for the management and administration of all partnership activities. The Partnership Agreement provides for payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following payments were paid to the Managing General Partner and affiliates for the three months ended March 31, 1996 and 1995: 1996 1995 (in thousands) Property management fees $79 $92 Reimbursements for services of affiliates 49 67 The Partnership insures its properties under a master policy through an agency and insurer unaffiliated with the Managing General Partner. An affiliate of the Managing General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which were later acquired by the agent who placed the current year's master policy. The current agent assumed the financial obligations to the affiliate of the Managing General Partner, who receives payment on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the Managing General Partner by virtue of the agent's obligations is not significant. Note B - Transactions with Affiliated Parties - (continued) Angeles Mortgage Investment Trust, ("AMIT"), a real estate investment trust, provided financing to the Princeton Meadows Golf Course Joint Venture ("Joint Venture") which is secured by the Joint Venture's investment property known as the Princeton Meadows Golf Course, in the original amount of $1,280,000 (see "Part II, Item 1. Legal Proceedings"). MAE GP Corporation ("MAE GP"), an affiliate of the Managing General Partner, owns 1,675,113 Class B Shares of AMIT. MAE GP has the option to convert these Class B Shares, in whole or in part, into Class A Shares on the basis of 1 Class A Share for every 49 Class B Shares. These Class B Shares entitle MAE GP to receive 1.2% of the distributions of net cash distributed by AMIT. The Class B Shares also entitle MAE GP to vote on the same basis as Class A Shares which allows MAE GP to vote approximately 37% of the total Shares (unless and until converted to Class A Shares at which time the percentage of the vote controlled represented by the Shares held by MAE GP would approximate 1.2% of the vote). Between the date of acquisition of these Shares (November 24, 1992) and March 31, 1995, MAE GP declined to vote these Shares. Since that date, MAE GP voted its shares at the 1995 annual meeting in connection with the election of trustees and other matters. MAE GP has not exerted, and continues to decline to exert, any management control over or participate in the management of AMIT. MAE GP may choose to vote these shares as it deems appropriate in the future. In addition, Liquidity Assistance, LLC, ("LAC"), an affiliate of the Managing General Partner and an affiliate of Insignia Financial Group, Inc., which provides property management and partnership administration services to the Partnership, owns 63,200 Class A Shares of AMIT. These Class A Shares entitle LAC to vote approximately 1.5% of the total shares. As part of a settlement of certain disputes with AMIT, MAE GP granted to AMIT an option to acquire the Class B Shares. This option can be exercised at the end of 10 years or when all loans made by AMIT to partnerships affiliated with MAE GP as of November 9, 1994, (which is the date of execution of a definitive Settlement Agreement) have been paid in full, but in no event prior to November 9, 1997. AMIT delivered to MAE GP cash in the sum of $250,000 at closing, which occurred April 14, 1995, as payment for the option. Upon exercise of the option, AMIT would remit to MAE GP an additional $94,000. Simultaneously with the execution of the option, MAE GP executed an irrevocable proxy in favor of AMIT the result of which is MAE GP will be able to vote the Class B Shares on all matters except those involving transactions between AMIT and MAE GP affiliated borrowers or the election of any MAE GP affiliate as an officer or trustee of AMIT. On those matters, MAE GP granted to the AMIT trustees, in their capacity as trustees of AMIT, proxies with regard to the Class B Shares instructing such trustees to vote said Class B Shares in accordance with the vote of the majority of the Class A Shares voting to be determined without consideration of the votes of "Excess Class A Shares" as defined in Section 6.13 of the Declaration of Trust of AMIT. Note C - Investment in Joint Venture The Partnership owns a 14.4% interest in the Joint Venture. The Partnership accounts for the Joint Venture on the equity method. AMIT currently provides financing to the Joint Venture, secured by the investment property, in the amount of $1,567,000. Condensed balance sheet information of the Joint Venture is as follows: March 31, 1996 (in thousands) Assets Cash $ 342 Deferred charges and other assets 131 Investment properties, net 1,893 Total $ 2,366 Liabilities and Partners' Deficit Notes payable to AMIT $ 1,567 Other liabilities 858 Partners' deficit (59) Total $ 2,366 The condensed profit and loss statement the Joint Venture are summarized as follows: Three Months Ended March 31, 1996 1995 (in thousands) Revenue $115 $105 Costs and expenses (324) (235) Net loss $(209) $(130) The Partnership's equity interest in the loss of the Joint Venture for the three months ended March 31, 1996, was $30,000 and was $19,000 for the three months ended March 31, 1995. Note C - Investment in Joint Venture - (continued) The Princeton Meadows Golf Course property had an underground fuel storage tank that was removed in 1992. This fuel storage tank caused contamination to the area. Management installed monitoring wells in the area where the tank was formerly buried. Some samples from these wells indicated lead and phosphorus readings that were higher than the range prescribed by the New Jersey Department of Environmental Protection ("DEP"). The Joint Venture notified DEP of the findings when they were first discovered. However, DEP had not given any directives as to corrective action until late 1995. In November 1995, representatives of the Joint Venture and the New Jersey DEP met and developed a plan of action to clean-up the contamination site at Princeton Meadows Golf Course. The Joint Venture has engaged an engineering firm to conduct consulting and compliance work and a second firm to perform the field work necessary for the clean-up. The Joint Venture has recorded a liability of $199,000 for the costs of the clean-up. The contracts have been executed and work has commenced with the expected completion date to be sometime in late 1996. The Managing General Partner believes the liability recorded is sufficient to cover all costs associated with this incident. Note D - Foreclosure of Executive Plaza On March 20, 1995, the Partnership negotiated a Deed in Lieu of Foreclosure for Executive Plaza Office Park located in Huntsville, Alabama. The total outstanding debt on the property at the time of foreclosure was $6,430,000 including $443,000 in accrued interest. The net gain on foreclosure amounted to $1,936,000 of which $1,385,000 represented a gain on transfer of property in foreclosure and $551,000 represented a gain on the extinguishment of related debt. The gain on transfer of assets represents the difference between fair value and the net book value of the property surrendered. The extraordinary gain represents the difference between the settlement amount of the debt and the recorded amount of the debt extinguished pursuant to the foreclosure. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS Results of Operations The Partnership's investment properties consist of three apartment complexes and one commercial property. The following table sets forth the average occupancy of the properties for the three months ended March 31, 1996 and March 31, 1995: Average Occupancy Property 1996 1995 Atlanta Crossing Shopping Center 90% 87% Montgomery, Alabama Deer Creek Apartments 95% 95% Plainsboro, New Jersey Georgetown Apartments 98% 97% South Bend, Indiana Landmark Apartments 95% 97% Raleigh, North Carolina The Partnership's net loss for the three months ended March 31, 1996, was $64,000 versus net income of $1,756,000 for the three months ended March 31, 1995. The decrease in net income is due primarily to the gain on foreclosure of Executive Plaza Office Park on March 20, 1995 (see discussion below). As a result of the foreclosure, the Partnership realized a decrease in rental income as well as a decrease in the following expenses: operating, depreciation, and interest expense. Maintenance expense increased due to an increase in snow removal costs at Deer Creek Apartments and Landmark Apartments due to the harsh winter in 1996. The Managing General Partner determined that past due amounts, from tenants of the Atlanta Crossing Shopping Center and Landmark Apartments, amounting to $38,000 were uncollectible, and therefore were reserved, resulting in bad debt expense for the three months ended March 31, 1996. Georgetown Apartments and Deer Creek Apartments realized losses on disposal of property during the first three months of 1995. These losses related to the write-offs of roofs due to replacement. These roofs were not fully depreciated at the time of the replacement. The Partnership has a 14.4% investment in the Princeton Meadows Golf Course Joint Venture. For the three months ended March 31, 1996, the Partnership realized equity in loss of the Joint Venture of $30,000 as compared to $19,000 for the three months ended March 31, 1995. The increased loss at Princeton Meadows Golf Course can be attributed to an increase in bad debt, insurance, and maintenance and repairs expense. The property's environmental issues (see "Note C - Investment in Joint Venture") necessitated a purchase of new insurance. The golf course also implemented a preventative maintenance program and repairs were made to the cart paths and course. On March 20, 1995, the Partnership negotiated a Deed in Lieu of Foreclosure for Executive Plaza Office Park located in Huntsville, Alabama, and as a result, the property was transferred to the wrap note holder. The Managing General Partner believed the Deed In Lieu of Foreclosure was in the best interest of the Partnership. The net gain on foreclosure amounted to $1,936,000 of which $1,385,000 represented a gain on transfer of property in foreclosure and $551,000 represented a gain on the extinguishment of related debt. As part of the ongoing business plan of the Partnership, the Managing General Partner monitors the rental market environment of each of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expense. As part of this plan, the Managing General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening market conditions, there is no guarantee that the Managing General Partner will be able to sustain such a plan. At March 31 1996, the Partnership had unrestricted cash of $1,906,000 versus $1,350,000 at March 31, 1995. Net cash provided by operating activities decreased primarily as a result of the decreased income for the three months ended March 31, 1996, as compared to the three months ended March 31, 1995. Net cash used in investing activities increased due to a decrease in property improvements and replacements. Net cash used in financing activities increased due to additional loan costs incurred during the first three months of 1996 and due to increased payments on mortgage notes payable. The first mortgages secured by Deer Creek Apartments and Landmark Apartments mature July 1996 and July 1997, respectively. The principal amounts due at maturity total $10,973,000. The Managing General Partner is currently negotiating a refinance of this indebtedness, however, the outcome of such negotiations cannot presently be determined. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. The mortgage indebtedness of $16,656,000 is being amortized over 30 years, 28.67 years and 20 years with maturity dates of July 1996, October 2003 and July 1997. The second mortgage on Georgetown Apartments is interest only with the principal balance due October 2003. Future cash distributions will depend on the levels of net cash generated from operations, refinancings, property sale and the availability of cash reserves. The Partnership's primary source of cash is from the operations of its properties and from financing placed on such properties. Cash from these sources is utilized for property operations, capital improvements, and/or repayment of debt. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the investment properties to adequately maintain the physical assets and other operating needs of the Partnership. Future cash distributions will depend on the levels of net cash generated from operations, refinancings and property sales. At this time, the Managing General Partner does not anticipate a cash distribution during fiscal 1996. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Angeles Mortgage Investment Trust ("AMIT"), a real estate investment trust, made a loan to the Joint Venture on a non-recourse basis in September 1991, in the amount of $1,280,000 secured by the Joint Venture's real property known as Princeton Meadows Golf Course. AMIT asserts that the loan is recourse by virtue of a certain amendment purportedly entered into as of November 1, 1992, but which the Partnership and the Joint Venture have been informed and believe were actually executed in December of 1992 ("Note Modification"). The Partnership and the Joint Venture have been further informed and believe that the amendment was executed at the direction of Angeles Corporation ("Angeles") by an individual in his purported capacity as an officer of the Managing General Partner of the Partnership and the Joint Venture at a time when such person was not in fact an officer of such entities. Accordingly, the Partnership and the Joint Venture filed Proofs of Claim in the Angeles bankruptcy proceeding with respect to such purported amendment. Additionally, the Partnership and the Joint Venture filed a Proof of Claim in the Angeles Funding Corporation and Angeles Real Estate Corporation bankruptcy proceedings on similar grounds. Both Angeles Funding Corporation and Angeles Real Estate Corporation are affiliates of Angeles. Angeles has agreed to cooperate with the Partnership and the Joint Venture in any action commenced by or against them by AMIT asserting that the original $1,280,000 obligation owed to AMIT is recourse to the Partnership. Angeles further agreed to waive the attorney-client privilege with respect to any information relating to the Note Modification. Accordingly, the Partnership and the Joint Venture withdrew their Proofs of Claim on August 9, 1995. The Partnership continues to have discussions with AMIT regarding resolution of this issue. No agreement has been reached with AMIT at this time. MAE GP Corporation ("MAE GP"), an affiliate of the Managing General Partner, owns 1,675,113 Class B Shares of AMIT. MAE GP has the option to convert these Class B Shares, in whole or in part, into Class A Shares on the basis of 1 Class A Share for every 49 Class B Shares. These Class B Shares entitle MAE GP to receive 1.2% of the distributions of net cash distributed by AMIT. The Class B Shares also entitle MAE GP to vote on the same basis as Class A Shares which allows MAE GP to vote approximately 37% of the total Shares (unless and until converted to Class A Shares at which time the percentage of the vote controlled represented by the Shares held by MAE GP would approximate 1.2% of the vote). Between the date of acquisition of these Shares (November 24, 1992) and March 31, 1995, MAE GP has declined to vote these shares. Since that date, MAE GP voted its shares at the 1995 annual meeting in connection with the election of trustees and other matters. MAE GP has not exerted, and continues to decline to exert, any management control over or participate in the management of AMIT. MAE GP may choose to vote these shares as it deems appropriate in the future. In addition, Liquidity Assistance, LLC, ("LAC"), an affiliate of the Managing General Partner and an affiliate of Insignia Financial Group, Inc., which provides property management and partnership administration services to the Partnership, owns 63,200 Class A Shares of AMIT. These Class A Shares entitle LAC to vote approximately 1.5% of the total shares. As part of a settlement of certain disputes with AMIT, MAE GP granted to AMIT an option to acquire the Class B Shares. This option can be exercised at the end of 10 years or when all loans made by AMIT to partnerships affiliated with MAE GP as of November 9, 1994, (which is the date of execution of a definitive Settlement Agreement) have been paid in full, but in no event prior to November 9, 1997. AMIT delivered to MAE GP cash in the sum of $250,000 at closing, which occurred April 14, 1995, as payment for the option. Upon exercise of the option, AMIT would remit to MAE GP an additional $94,000. Simultaneously with the execution of the option, MAE GP executed an irrevocable proxy in favor of AMIT the result of which is MAE GP will be able to vote the Class B Shares on all matters except those involving transactions between AMIT and MAE GP affiliated borrowers or the election of any MAE GP affiliate as an officer or trustee of AMIT. On those matters, MAE GP granted to the AMIT trustees, in their capacity as trustees of AMIT, proxies with regard to the Class B Shares instructing such trustees to vote said Class B Shares in accordance with the vote of the majority of the Class A Shares voting to be determined without consideration of the votes of "Excess Class A Shares" as defined in section 6.13 of the Declaration of Trust of AMIT. Also, Angeles, either directly or through an affiliate, maintained a central disbursement account (the "Account") for the properties and partnerships managed by Angeles and its affiliates, including the Registrant. Angeles caused the Partnership to make deposits to the Account ostensibly to fund the payment of certain obligations of the Partnership. Angeles further caused checks on such Account to be written to or on behalf of certain other partnerships. At least $63,412 deposited by or on behalf of the Partnership was used for purposes other than satisfying the liabilities of the Partnership. Accordingly, the Partnership filed a Proof of Claim in the Angeles bankruptcy proceedings for such amount. However, subsequently the Managing General Partner of the Partnership determined that the cost involved to pursue such claim would likely exceed any amount received, if in fact such claim were to be resolved in favor of the partnership. Therefore, the Partnership withdrew this claim on August 9, 1995. Except as mentioned above, the Partnership is not involved in any legal proceedings other than those arising in the normal course of business. The Managing General Partner believes that any losses experienced as a result of such proceedings will not have a material adverse effect upon the Partnership's operations. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. b) Reports on Form 8-K: None filed during the three months ended March 31, 1996. 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. ANGELES INCOME PROPERTIES, LTD. II By: Angeles Realty Corporation II Managing General Partner By: /s/Carroll D. Vinson Carroll D. Vinson President By: /s/Robert D. Long, Jr. Robert D. Long, Jr. Vice President/CAO Date: May 10, 1996 EX-27 2
5 This schedule contains summary financial information extracted from Angeles Income Properties Ltd II's 1996 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000711642 ANGELES INCOME PROPERTIES LTD. II 1,000 3-MOS DEC-31-1996 MAR-31-1996 1,906 0 104 0 0 2,872 34,605 21,718 16,291 523 16,656 0 0 0 (1,167) 16,291 0 1,678 0 0 1,712 0 396 (64) 0 (64) 0 0 0 (64) 0 0
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