-----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, CSiJg6+K9ZhbAUd7EIotU5A2tPzjEFRCF30IbP7k19COGDZAJjZtJOJr0kx8BXtY Mr69ojvZpzIFgKXfOXFuuw== 0000734761-96-000006.txt : 19960816 0000734761-96-000006.hdr.sgml : 19960816 ACCESSION NUMBER: 0000734761-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCNEIL REAL ESTATE FUND XXI L P CENTRAL INDEX KEY: 0000734761 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330030615 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13356 FILM NUMBER: 96612836 BUSINESS ADDRESS: STREET 1: 13760 NOEL RD,. SUITE 700, LB70 CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 2144485800 MAIL ADDRESS: STREET 1: 2711 LBJ FREEWAY, SUITE 900 CITY: DALLAS STATE: TX ZIP: 75234 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHMARK REALTY PARTNERS LTD DATE OF NAME CHANGE: 19920413 10-Q 1 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 period ended June 30, 1996 ------------------------------------------------------ OR [ ] 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 0-13356 -------- MCNEIL REAL ESTATE FUND XXI, L.P. - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 33-0030615 - ------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 13760 Noel Road, Suite 700, LB70, Dallas, Texas, 75240 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (214) 448-5800 ----------------------------- 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 and (2) has been subject to such filing requirements for the past 90 days. Yes X No___ MCNEIL REAL ESTATE FUND XXI, L.P. PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS - ------- -------------------- BALANCE SHEETS (Unaudited)
June 30, December 31, 1996 1995 --------------- -------------- ASSETS - ------ Real estate investments: Land..................................................... $ 3,607,306 $ 3,607,306 Buildings and improvements............................... 33,648,263 33,341,911 -------------- ------------- 37,255,569 36,949,217 Less: Accumulated depreciation and amortization......... (16,086,611) (15,278,026) -------------- ------------- 21,168,958 21,671,191 Cash and cash equivalents................................... 2,311,883 1,998,301 Cash segregated for security deposits....................... 170,348 167,007 Accounts receivable, net of allowance for doubtful accounts of $1,800 at December 31, 1995.................. 152,630 176,462 Escrow deposits............................................. 551,101 611,639 Deferred borrowing costs, net of accumulated amortization of $121,973 and $90,135 at June 30, 1996 and December 31, 1995, respectively................. 464,105 495,631 Prepaid expenses and other assets........................... 61,896 58,418 -------------- ------------- $ 24,880,921 $ 25,178,649 ============== ============= LIABILITIES AND PARTNERS' DEFICIT - --------------------------------- Mortgage notes payable, net................................. $ 21,897,114 $ 22,008,628 Mortgage note payable - affiliates.......................... 733,900 733,900 Accounts payable and accrued expenses....................... 291,071 300,985 Accrued property taxes...................................... 312,523 338,135 Payable to affiliates....................................... 4,587,084 4,217,978 Advances from affiliates.................................... 705,836 676,601 Security deposits and deferred rental revenue............... 211,793 196,320 -------------- ------------- 28,739,321 28,472,547 -------------- ------------- Partners' deficit: Limited partners - 50,000 Units authorized; 47,288 and 47,308 Units outstanding at June 30, 1996 and December 31, 1995, respectively, (24,949 Current Income Units outstanding at June 30, 1996 and December 31, 1995 and 22,339 and 22,359 Growth/Shelter Units outstanding at June 30, 1996 and December 31,1995, respectively) (3,502,204) (2,943,347) General Partner.......................................... (356,196) (350,551) -------------- ------------- (3,858,400) (3,293,898) -------------- ------------- $ 24,880,921 $ 25,178,649 ============== =============
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXI, L.P. STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, --------------------------------- --------------------------------- 1996 1995 1996 1995 -------------- --------------- -------------- -------------- Revenue: Rental revenue................ $ 1,605,888 $ 1,528,896 $ 3,199,384 $ 3,536,777 Interest...................... 31,826 33,919 53,875 59,242 Gain on disposition of real estate...................... - - - 1,615,811 ------------- ------------- ------------- ------------- Total revenue............... 1,637,714 1,562,815 3,253,259 5,211,830 ------------- ------------- ------------- ------------- Expenses: Interest...................... 471,064 554,370 984,980 1,303,673 Interest - affiliates......... 29,853 34,058 59,845 134,304 Depreciation and amortization................ 405,871 382,359 808,585 907,598 Property taxes................ 125,445 124,257 245,136 298,137 Personnel costs............... 168,161 184,114 375,353 414,084 Utilities..................... 97,408 101,357 210,490 221,238 Repair and maintenance........ 175,433 165,503 351,538 347,943 Property management fees - affiliates........... 85,525 80,281 167,347 193,546 Other property operating expenses.................... 106,291 120,605 212,560 275,595 General and administrative.... 17,630 18,371 33,573 37,178 General and administrative - affiliates.................. 187,047 211,042 368,354 407,487 ------------- ------------- ------------- ------------- Total expenses.............. 1,869,728 1,976,317 3,817,761 4,540,783 ------------- ------------- ------------- ------------- Net income (loss)................ $ (232,014) $ (413,502) $ (564,502) $ 671,047 ============= ============ ============= ============= Net income (loss) allocable to limited partners - Current Income Unit................... $ (20,881) $ (37,215) $ (50,805) $ 60,394 Net income (loss) allocable to to limited partners - Growth/ Shelter Unit.................. (208,813) (372,152) (508,052) 603,942 Net income (loss) allocable to General Partner............ (2,320) (4,135) (5,645) 6,711 ------------- ------------- ------------- ------------- Net income (loss)................ $ (232,014) $ (413,502) $ (564,502) $ 671,047 ============= ============= ============= ============= Net income (loss) per limited partnership unit: Current Income Units.......... $ (.84) $ (1.49) $ (2.04) $ 2.42 ============= ============ ============= ============= Growth/Shelter Units.......... $ (9.34) $ (16.64) $ (22.74) $ 27.01 ============= ============ ============ =============
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXI, L.P. STATEMENTS OF PARTNERS' DEFICIT (Unaudited) For the Six Months Ended June 30, 1996 and 1995
Total General Limited Partners' Partner Partners Deficit --------------- --------------- --------------- Balance at December 31, 1994.............. $ (348,843) $ (2,774,251) $ (3,123,094) Net income General Partner........................ 6,711 - 6,711 Current Income Units................... - 60,394 60,394 Growth/Shelter Units................... - 603,942 603,942 ------------- ------------- ------------- Total net income.......................... 6,711 664,336 671,047 ------------- ------------- ------------- Balance at June 30, 1995.................. $ (342,132) $ (2,109,915) $ (2,452,047) ============= ============= ============= Balance at December 31, 1995.............. $ (350,551) $ (2,943,347) $ (3,293,898) Net loss General Partner........................ (5,645) - (5,645) Current Income Units................... - (50,805) (50,805) Growth/Shelter Units................... - (508,052) (508,052) ------------- ------------- ------------- Total net loss............................ (5,645) (558,857) (564,502) ------------- ------------- ------------- Balance at June 30, 1996.................. $ (356,196) $ (3,502,204) $ (3,858,400) ============= ============= =============
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXI, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Increase in Cash and Cash Equivalents
Six Months Ended June 30, ------------------------------------------- 1996 1995 ------------------- ----------------- Cash flows from operating activities: Cash received from tenants........................ $ 3,231,345 $ 3,711,266 Cash paid to suppliers............................ (1,170,281) (1,189,938) Cash paid to affiliates........................... (166,595) (202,292) Interest received................................. 53,875 49,815 Interest received - affiliates.................... - 71,613 Interest paid..................................... (944,609) (1,293,137) Interest paid to affiliates....................... (24,443) (483,854) Property taxes paid............................... (238,126) (382,801) ----------------- -------------- Net cash provided by operating activities............ 741,166 280,672 ----------------- -------------- Cash flows from investing activities: Additions to real estate investments.............. (306,352) (269,023) Net proceeds from disposition of real estate...... - 2,199,917 Repayment of advances to affiliates............... - 300,000 ----------------- -------------- Net cash provided by (used in) investing activities.............................. (306,352) 2,230,894 ----------------- -------------- Cash flows from financing activities: Deferred borrowing costs paid..................... (312) - Principal payments on mortgage notes payable......................................... (120,920) (138,723) Repayment of advances from affiliates............. - (973,000) ----------------- -------------- Net cash used in financing activities................ (121,232) (1,111,723) ----------------- -------------- Net increase in cash and cash equivalents............ 313,582 1,399,843 Cash and cash equivalents at beginning of period............................................ 1,998,301 1,151,098 ----------------- -------------- Cash and cash equivalents at end of period........... $ 2,311,883 $ 2,550,941 ================= ==============
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXI, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Reconciliation of Net Income (Loss) to Net Cash Provided by Operating Activities
Six Months Ended June 30, ---------------------------------------- 1996 1995 ----------------- --------------- Net income (loss).................................... $ (564,502) $ 671,047 --------------- -------------- Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization..................... 808,585 907,598 Amortization of deferred borrowing costs.......... 31,838 41,208 Amortization of discounts on mortgage notes payable................................... 9,406 11,367 Interest added to advances to affiliates, net of payments................................. - 62,186 Interest added to advances from affiliates, net of payments................................. 29,235 (292,371) Gain on disposition of real estate................ - (1,615,811) Changes in assets and liabilities: Cash segregated for security deposits........... (3,341) 48,631 Accounts receivable............................. 23,832 153,274 Escrow deposits................................. 60,538 (23,381) Prepaid expenses and other assets............... (3,478) (46,909) Accounts payable and accrued expenses........... (9,914) 67,777 Accrued property taxes.......................... (25,612) (74,421) Payable to affiliates........................... 369,106 398,741 Security deposits and deferred rental revenue....................................... 15,473 (28,264) --------------- -------------- Total adjustments............................. 1,305,668 (390,375) --------------- -------------- Net cash provided by operating activities............ $ 741,166 $ 280,672 =============== ==============
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXI, L.P. Notes to Financial Statements (Unaudited) June 30, 1996 NOTE 1. - ------- McNeil Real Estate Fund XXI, L.P., (the "Partnership"), formerly known as Southmark Realty Partners, Ltd. was organized on November 23, 1983 as a limited partnership under the provisions of the California Revised Limited Partnership Act to acquire and operate commercial and residential properties. The general partner of the Partnership is McNeil Partners, L.P. (the "General Partner"), a Delaware limited partnership, an affiliate of Robert A. McNeil ("McNeil"). The principal place of business for the Partnership and the General Partner is 13760 Noel Road, Suite 700, LB70, Dallas, Texas, 75240. In the opinion of management, the financial statements reflect all adjustments necessary for a fair presentation of the Partnership's financial position and results of operations. All adjustments were of a normal recurring nature. However, the results of operations for the six months ended June 30, 1996 are not necessarily indicative of the results to be expected for the year ending December 31, 1996. NOTE 2. - ------- The financial statements should be read in conjunction with the financial statements contained in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1995, and the notes thereto, as filed with the Securities and Exchange Commission, which is available upon request by writing to McNeil Real Estate Fund XXI, L.P. c/o McNeil Real Estate Management, Inc., Investor Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240. NOTE 3. - ------- The accompanying financial statements have been prepared assuming that the Partnership will continue as a going concern. The Partnership has previously relied on advances from affiliates to meet its debt obligations and to fund capital improvements. Additionally, the Partnership has had to defer payment of payables to affiliates in order to meet its working capital needs. Additionally, the Partnership is faced with mortgage note maturities of approximately $9.2 million in 1997 for which no extensions, modifications or refinancings have yet been negotiated. There is no guarantee that such negotiations can be completed. These conditions raise substantial doubt about the Partnership's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. NOTE 4. - ------- Certain reclassifications have been made to prior period amounts to conform to the current period presentation. NOTE 5. - ------- The Partnership pays property management fees equal to 5% of gross rental receipts for its residential properties and 6% of gross rental receipts for its commercial properties to McNeil Real Estate Management, Inc. ("McREMI"), an affiliate of the General Partner, for providing property management services for the Partnership's residential and commercial properties and leasing services for its residential properties. McREMI may also choose to provide leasing services for the Partnership's commercial properties, in which case McREMI will receive property management fees from such commercial properties equal to 3% of the property's gross rental receipts plus leasing commissions based on the prevailing market rate for such services where the property is located. The Partnership reimburses McREMI for its costs, including overhead, of administering the Partnership's affairs. The Partnership is paying an asset management fee which is payable to the General Partner. Through 1999, the Asset Management Fee is calculated as 1% of the Partnership's tangible asset value. Tangible asset value is determined by using the greater of (i) an amount calculated by applying a capitalization rate of 9% to the annualized net operating income of each property or (ii) a value of $10,000 per apartment unit for residential property and $50 per gross square foot for commercial property to arrive at the property tangible asset value. The property tangible asset value is then added to the book value of all other assets excluding intangible items. The fee percentage decreases subsequent to 1999. Total accrued but unpaid asset management fees of $2,733,637 were outstanding at June 30, 1996. The Partnership pays a disposition fee to an affiliate of the General Partner equal to 3% of the gross sales price for brokerage services performed in connection with the sale of the Partnership's properties. The fee is due and payable at the time the sale closes. In connection with the sales of Suburban Plaza and Wyoming Mall, total accrued but unpaid disposition fees of $346,050 were outstanding at June 30, 1996 and December 31, 1995. Prior to the restructuring of the Partnership, affiliates of the Original General Partner advanced funds to enable the Partnership to meet its working capital requirements. These advances were purchased by, and are now payable to, the General Partner. The total advances from affiliates at June 30, 1996 and December 31, 1995 consisted of the following: June 30, December 31, 1996 1995 --------- ------------ Advances purchased by General Partner................ $ 630,574 $ 630,574 Accrued interest payable............................. 75,262 46,027 -------- -------- $ 705,836 $ 676,601 ======== ======== Compensation and reimbursements paid to or accrued for the benefit of the General Partner and its affiliates are as follows: Six Months Ended June 30, ----------------------- 1996 1995 --------- ---------- Property management fees............................. $ 167,347 $ 193,546 Charged to gain on disposition of real estate: Disposition fee................................... - 346,050 Charged to interest -affiliates: Interest on advances from affiliates.............. 29,235 55,374 Interest on mortgage note payable - affiliates.... 30,610 78,930 Charged to general and administrative -affiliates: Partnership administration........................ 165,253 201,870 Asset management fee.............................. 203,101 205,617 -------- --------- $ 595,546 $1,081,387 ======== ========= Payable to affiliates at June 30, 1996 and December 31, 1995 consisted primarily of unpaid asset management fees, property management fees, disposition fees and partnership general and administrative expenses and are due and payable from current operations. NOTE 6. - ------- On March 31, 1995, Suburban Plaza was sold to an unrelated third party for a cash price of $6,910,000. Cash proceeds and the gain on the disposition are detailed below: Gain on Sale Cash Proceeds ------------ ------------- Sales price.............................. $ 6,910,000 $ 6,910,000 Selling costs............................ (293,754) (86,454) Retirement of mortgage discount.......... (683,198) Carrying value........................... (3,691,594) Accounts receivable...................... (315,979) Deferred borrowing costs................. (479) Prepaid expenses......................... (63,548) ---------- Gain on disposition of real estate...... $ 1,861,448 ========== Retirement of mortgage note............. (3,963,489) Retirement of mortgage notes - affiliates............................. (1,331,000) Accrued interest paid on retired notes.. (146,111) Real estate tax proration............... (38,368) Credit for security deposit liability... (22,325) ---------- Net cash proceeds....................... $ 1,322,253 ========== On March 31, 1995, Wyoming Mall was sold to an unrelated third party for a cash price of $9,250,000. The Partnership had a 50% undivided interest in the assets, liabilities and operations of Wyoming Mall, owned jointly with McNeil Real Estate Fund XXII, L.P. Cash proceeds and the loss on the disposition are detailed below: Gain on Sale Cash Proceeds ------------ -------------- Sales price............................. $ 4,625,000 $ 4,625,000 Selling costs........................... (234,838) (96,088) Mortgage note prepayment penalty........ (138,441) (138,441) Carrying value.......................... (4,325,663) Accounts receivable..................... (81,749) Deferred borrowing costs................ (49,910) Prepaid expenses........................ (40,036) ---------- Loss on disposition of real estate..... $ (245,637) ========== Retirement of mortgage note............. (3,452,337) Payment of 1994 taxes at closing........ (23,735) Real estate tax proration............... (14,154) Credit for security deposit liability... (22,581) ---------- Net cash proceeds....................... $ 877,664 ========== ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - ------- --------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- FINANCIAL CONDITION - ------------------- Net loss for the first six months of 1996 was $564,502 as compared to net income of $671,047 for the same period in 1995. On March 31, 1995, Wyoming Mall was sold to an unrelated third party for a cash price of $9,250,000. The Partnership had a 50% undivided interest in the assets, liabilities and operations of Wyoming Mall, owned jointly with McNeil Real Estate Fund XXII, L.P. The Partnership received net cash proceeds of $877,664 from the sale of the property and recorded a loss on disposition of real estate of $245,637. The Partnership recorded $256,873 of revenue and $268,760 of expense for the first six months of 1995 for Wyoming Mall. Suburban Plaza was sold to an unrelated third party for a cash price of $6,910,000. The Partnership received net cash proceeds of $1,322,253 and recorded a gain on disposition of real estate of $1,861,448. The Partnership recorded $306,747 of revenue and $328,237 of expense for the first six months of 1995 for Suburban Plaza. The Partnership's working capital needs have been supported by net proceeds from the December 1993 sale of Hickory Lake Apartments and the March 1995 sales of Suburban Plaza and Wyoming Mall and by deferring certain affiliate payables. The Partnership has had little ready cash reserves since its inception. It has been largely dependent on affiliates to support its operations. Although no additional advances from affiliates were required during the first six months of 1996, at June 30, 1996 the Partnership owed affiliate advances of $705,836 and payables to affiliates for property management fees, Partnership general and administrative expenses, asset management fees and disposition fees totaling $4,587,084. RESULTS OF OPERATIONS - --------------------- Revenue: Rental revenue increased by $76,992 for the three months and decreased by $337,393 for the six months ended June 30, 1996, as compared to the same periods in 1995. The overall decrease was primarily due to the sales of Suburban Plaza and Wyoming Mall, which contributed rental revenue of approximately $306,000 and $254,000, respectively, in the first half of 1995. Increased occupancy at Bedford Green Apartments and Wise County Plaza, and increased rental rates at Governour's Square partially offset the loss in rental revenue from the sold properties. During the first half of 1995, the partnership recognized a gain on disposition of real estate on Suburban Plaza of $1,861,448 and a loss on the sale of Wyoming Mall of $245,637. Expenses: Total expenses decreased by $106,589 and $723,022 for the three and six months ended June 30, 1996, respectively, as compared to the same periods in 1995. The decreases in interest expense, depreciation and amortization expense, property taxes, personnel costs, property management fees and other property operating expenses are primarily due to the sales of Suburban Plaza and Wyoming Mall in March 1995. Interest - affiliates decreased by $4,205 and $74,459 for the three and six months ended June 30, 1996, respectively, as compared to the same periods in 1995. The decrease was mainly due to the repayment of $973,000 of advances and $1,331,000 of mortgage notes payable from affiliates in the first half of 1995. General and administrative - affiliates decreased by $23,995 and $39,133 for the three and six months ended June 30, 1996, respectively, as compared to the same periods in 1995. The decrease was mainly due to a lower amount of overhead expenses being allocated to the Partnership by McREMI. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- At June 30, 1996, the Partnership held cash and cash equivalents of $2,311,883. Cash of $741,166 was provided by operating activities during the first six months of 1996 as compared to $280,672 provided during the same period of 1995. Cash received from tenants, cash paid to suppliers, cash paid to affiliates, interest paid, and property taxes paid decreased due to the sales of Suburban Plaza and Wyoming Mall. No interest was received from affiliates during the first six months of 1996 since the previous advances of $300,000 to McNeil Real Estate Fund XXII, L.P. ("McNeil XXII") for Wyoming Mall were paid off in 1995. With the proceeds from the sales of Suburban Plaza and Wyoming Mall, the Partnership was able to repay $973,000 of advances and $1,331,000 of mortgage notes payable from affiliates in the first half of 1995, thereby reducing the interest paid to affiliates during the first half of 1996. Cash used for additions to real estate totaled $306,352 for the six months ended June 30, 1996 as compared to $269,023 for the same period of the prior year. The Partnership received $2,199,917 of proceeds from the sales of Suburban Plaza and Wyoming Mall during the first six months of 1995. Additionally, the Partnership received $300,000 in 1995 from McNeil XXII for repayment of previous advances for Wyoming Mall. Principal payments on mortgage notes payable totaled $120,920 for the first six months of 1996 as compared to $138,723 for the same period in 1995. The decrease was due to the retirement of the mortgage notes related to Wyoming Mall and Suburban Plaza when the properties were sold. Short-term liquidity - -------------------- For the remainder of 1996, present cash balances and operations of the properties are expected to provide sufficient cash for normal operating expenses, debt service payments and budgeted capital improvements. The Partnership has no established lines of credit from outside sources. Although affiliates of the Partnership have previously funded cash deficits, there can be no assurance the Partnership will receive additional funds. Other possible actions to resolve cash deficiencies include refinancing, deferring major capital or repair expenditures on Partnership properties except where improvements are expected to enhance the competitiveness and marketability of the properties, deferring payables to or arranging financing from affiliates or the ultimate sale of other properties. The General Partner has established a revolving credit facility not to exceed $5,000,000 in the aggregate which is available on a "first-come first-served" basis to the Partnership and other affiliated partnerships, if certain conditions are met. Borrowings under the facility may be used to fund deferred maintenance, refinancing obligations and working capital needs. There is no assurance that the Partnership will receive any additional funds under the facility because no amounts have been reserved for any particular partnership. As of June 30, 1996, $4,082,159 remained available for borrowing under the facility; however, additional funds could be available as other partnerships repay existing borrowings. This commitment will terminate on March 26, 1997. Additionally, the General Partner has, in its discretion, advanced funds to the Partnership in addition to the revolving credit facility. The General Partner is not obligated to advance funds to the Partnership and there is no assurance that the Partnership will receive additional funds. Long-term liquidity - ------------------- Operations of the Partnership's properties are expected to provide sufficient cash flow for operating expenses, debt service payments and capital improvements in the foreseeable future. The Partnership has significant mortgage maturities during 1997, and management expects to refinance these mortgage notes as they mature. If management is unable to refinance the mortgage notes as they mature; the Partnership will require other sources of cash. No such sources have been identified. These conditions raise substantial doubt about the Partnership's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Distributions - ------------- To maintain adequate cash balances of the Partnership, distributions to Current Income Unit holders were suspended in 1989. There have been no distributions to Growth/Shelter Units holders. Distributions to Unit holders will remain suspended for the foreseeable future. The General Partner will continue to monitor the cash reserves and working capital needs of the Partnership to determine when cash flows will support distributions to the Unit holders. PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K - ------- -------------------------------- (a) Exhibits. Exhibit Number Description ------- ----------- 4. Amended and Restated Limited Partnership Agreement dated March 26, 1992. (Incorpo- rated by reference to the Current Report of the Registrant on Form 8-K dated March 26, 1992, as filed on April 9, 1992). 11. Statement regarding computation of Net Income (Loss) per Limited Partnership Unit: Net income (loss) per limited partnership unit is computed by dividing net income (loss) allocated to the limited partners by the weighted average number of limited partnership units outstanding. Per unit information has been computed based on 24,949 Current Income Units outstanding in 1996 and 1995 and 22,339 and 22,359 Growth/Shelter Units outstanding in 1996 and 1995, respectively. 27. Financial Data Schedule for the quarter ended June 30, 1996. (b) Reports on Form 8-K. There were no reports on Form 8-K filed during the quarter ended June 30, 1996. MCNEIL REAL ESTATE FUND XXI, L.P. 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: McNEIL REAL ESTATE FUND XXI, L.P. By: McNeil Partners, L.P., General Partner By: McNeil Investors, Inc., General Partner August 14, 1996 By: /s/ Donald K. Reed - ------------------------ --------------------------------------- Date Donald K. Reed President and Chief Executive Officer August 14, 1996 By: /s/ Ron K. Taylor - ------------------------ --------------------------------------- Date Ron K. Taylor Acting Chief Financial Officer of McNeil Investors, Inc. August 14, 1996 By: /s/ Carol A. Fahs - ------------------------ --------------------------------------- Date Carol A. Fahs Chief Accounting Officer of McNeil Real Estate Management, Inc. EX-27 2
5 6-MOS DEC-31-1996 JUN-30-1996 2,311,883 0 152,630 0 0 0 37,255,569 (16,086,611) 24,880,921 0 22,631,014 0 0 0 (3,858,400) 24,880,921 3,199,384 3,253,259 0 0 2,772,936 0 1,044,825 (564,502) 0 (564,502) 0 0 0 (564,502) 0 0
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