-----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, AjmEj6tzZuffg4AyF0nnSQdEaQV7bKq006nyzmepzO2dG1brNP2ShLmpuC58H0f+ dn4qYMJIPDAHSLc+TZwsfQ== 0000783414-97-000009.txt : 19970814 0000783414-97-000009.hdr.sgml : 19970814 ACCESSION NUMBER: 0000783414-97-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970813 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCNEIL REAL ESTATE FUND XXIII LP CENTRAL INDEX KEY: 0000783414 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 330139793 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15459 FILM NUMBER: 97658920 BUSINESS ADDRESS: STREET 1: 13760 NOEL RD STE 700 LB70 CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 2144485800 MAIL ADDRESS: STREET 2: 13760 NOEL ROAD SUITE 700 LB 70 CITY: DALLAS STATE: TX ZIP: 75240 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHMARK REALTY PARTNERS III 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, 1997 ---------------------------------------------------- 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 0-15459 --------- McNEIL REAL ESTATE FUND XXIII, L.P. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 33-0139793 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 13760 Noel Road, Suite 600, LB70, Dallas, Texas, 75240 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (972) 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 XXIII, L.P. PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS - ------- -------------------- BALANCE SHEETS (Unaudited)
June 30, December 31, 1997 1996 --------------- --------------- ASSETS - ------ Real estate investments: Land..................................................... $ 239,966 $ 239,966 Buildings and improvements............................... 6,075,732 6,029,898 -------------- -------------- 6,315,698 6,269,864 Less: Accumulated depreciation.......................... (3,054,860) (2,915,422) -------------- -------------- 3,260,838 3,354,442 Cash and cash equivalents................................... 331,509 193,812 Cash segregated for security deposits....................... 43,729 43,296 Accounts receivable and other assets........................ 17,267 13,249 Escrow deposits............................................. 51,228 96,624 -------------- ------------- $ 3,704,571 $ 3,701,423 ============== ============= LIABILITIES AND PARTNERS' EQUITY (DEFICIT) - ------------------------------------------ Mortgage note payable, net of discount...................... $ 3,742,732 $ 3,758,380 Accounts payable and accrued expenses....................... 71,197 73,579 Accrued property taxes...................................... 61,146 43,519 Payable to affiliates - General Partner..................... 327,923 258,782 Security deposits and deferred rental revenue............... 47,829 42,553 -------------- -------------- 4,250,827 4,176,813 -------------- -------------- Partners' equity (deficit): Limited partners - 45,000,000 Units authorized; 11,512,696 and 11,622,696 Units outstanding at June 30, 1997 and December 31, 1996, respectively (6,651,985 and 6,681,985 Current Income Units out- standing at June 30, 1997 and December 31, 1996, respectively, and 4,860,711 and 4,940,711 Growth/ Shelter Units outstanding at June 30, 1997 and December 31, 1996, respectively)....................... (5,398,007) (5,327,850) General Partner.......................................... 4,851,751 4,852,460 -------------- -------------- (546,256) (475,390) -------------- -------------- $ 3,704,571 $ 3,701,423 ============== ==============
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 XXIII, L.P. STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, --------------------------------- --------------------------------- 1997 1996 1997 1996 -------------- --------------- -------------- -------------- Revenue: Rental revenue................ $ 343,315 $ 325,699 $ 685,614 $ 644,567 Interest...................... 2,807 2,078 4,998 4,220 ------------- ------------- ------------- ------------- Total revenue............... 346,122 327,777 690,612 648,787 ------------- ------------- ------------- ------------- Expenses: Interest...................... 85,496 91,665 173,024 183,543 Depreciation.................. 70,886 66,639 139,438 130,536 Property taxes................ 30,573 31,000 61,146 59,752 Personnel expenses............ 42,261 45,339 94,183 100,780 Utilities..................... 26,516 25,990 58,068 62,849 Repair and maintenance........ 47,568 58,639 82,224 90,210 Property management fees - affiliates........... 17,030 16,311 34,417 32,272 Other property operating expenses.................... 13,969 17,612 27,059 35,336 General and administrative.... 9,636 10,559 22,868 21,446 General and administrative - affiliates.................. 35,368 35,023 69,051 70,856 Reorganization expenses....... - 999 - 5,362 ------------- ------------- ------------- ------------- Total expenses.............. 379,303 399,776 761,478 792,942 ------------- ------------- ------------- ------------- Net loss......................... $ (33,181) $ (71,999) $ (70,866) $ (144,155) ============= ============= ============= ============= Net loss allocated to limited partners - Current Income Units.................. $ (2,986) $ (6,480) $ (6,378) $ (12,974) Net loss allocated to limited partners - Growth/ Shelter Units................. (29,863) (64,799) (63,779) (129,739) Net loss allocated to General Partner............... (332) (720) (709) (1,442) ------------- ------------- ------------- ------------- Net loss......................... $ (33,181) $ (71,999) $ (70,866) $ (144,155) ============= ============= ============= ============= Net loss per thousand limited partnership units: Current Income Units.......... $ (.45) $ (.97) $ (.96) $ (1.94) ============ ============= ============= ============= Growth/Shelter Units.......... $ (6.14) $ (13.12) $ (13.12) $ (26.26) ============ ============= ============= =============
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 XXIII, L.P. STATEMENTS OF PARTNERS' EQUITY (DEFICIT) (Unaudited) For the Six Months Ended June 30, 1997 and 1996
Total General Limited Partners' Partner Partners Equity (Deficit) -------------- --------------- ---------------- Balance at December 31, 1995.............. $ 4,854,261 $ (5,145,030) $ (290,769) Redemption of limited partner units: Current Income Units................... - (2,737) (2,737) Growth/Shelter Units................... - (1,743) (1,743) ------------- ------------- ------------- Total redemption..................... - (4,480) (4,480) ------------- ------------- ------------- Net loss: General Partner........................ (1,442) - (1,442) Current Income Units................... - (12,974) (12,974) Growth/Shelter Units................... - (129,739) (129,739) ------------- ------------- ------------- Total net loss....................... (1,442) (142,713) (144,155) ------------- ------------- ------------- Balance at June 30, 1996.................. $ 4,852,819 $ (5,292,223) $ (439,404) ============= ============= ============= Balance at December 31, 1996.............. $ 4,852,460 $ (5,327,850) $ (475,390) Net loss: General Partner........................ (709) - (709) Current Income Units................... - (6,378) (6,378) Growth/Shelter Units................... - (63,779) (63,779) ------------- ------------- ------------- Total net loss....................... (709) (70,157) (70,866) ------------- ------------- ------------- Balance at June 30, 1997.................. $ 4,851,751 $ (5,398,007) $ (546,256) ============= ============= =============
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 XXIII, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Increase (Decrease) in Cash and Cash Equivalents
Six Months Ended June 30, ------------------------------------ 1997 1996 ---------------- --------------- Cash flows from operating activities: Cash received from tenants............................... $ 695,166 $ 658,764 Cash paid to suppliers................................... (247,343) (372,490) Cash paid to affiliates.................................. (34,327) (32,309) Interest received........................................ 4,998 4,220 Interest paid............................................ (164,363) (175,267) Property taxes paid and escrowed......................... (46,139) (53,383) -------------- -------------- Net cash provided by operating activities................... 207,992 29,535 -------------- -------------- Cash flows from investing activities: Additions to real estate investments..................... (45,834) (102,003) -------------- -------------- Cash flows from financing activities: Principal payments on mortgage note payable................................................ (24,461) (22,696) Redemption of limited partner units...................... - (4,480) -------------- -------------- Net cash used in financing activities....................... (24,461) (27,176) -------------- -------------- Net increase (decrease) in cash and cash equivalents.............................................. 137,697 (99,644) Cash and cash equivalents at beginning of period................................................... 193,812 233,222 -------------- -------------- Cash and cash equivalents at end of period.................. $ 331,509 $ 133,578 ============== ==============
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 XXIII, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Reconciliation of Net Loss to Net Cash Provided by Operating Activities
Six Months Ended June 30, ------------------------------------ 1997 1996 ---------------- ---------------- Net loss.................................................... $ (70,866) $ (144,155) -------------- -------------- Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation............................................. 139,438 130,536 Amortization of discount on mortgage note payable........................................... 8,813 8,418 Changes in assets and liabilities: Cash segregated for security deposits.................. (433) 12,078 Accounts receivable and other assets................... (4,018) 7,329 Escrow deposits........................................ 45,396 (11,608) Accounts payable and accrued expenses.................. (2,382) (53,033) Accrued property taxes................................. 17,627 16,610 Payable to affiliates - General Partner................ 69,141 70,819 Security deposits and deferred rental revenue.............................................. 5,276 (7,459) -------------- -------------- Total adjustments.................................... 278,858 173,690 -------------- -------------- Net cash provided by operating activities................... $ 207,992 $ 29,535 ============== ==============
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 XXIII, L.P. Notes to Financial Statements (Unaudited) June 30, 1997 NOTE 1. - ------- McNeil Real Estate Fund XXIII, L.P. (the "Partnership"), formerly known as Southmark Realty Partners III, Ltd., was organized on March 4, 1985 as a limited partnership under provisions of the California Revised Limited Partnership Act to acquire and operate 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 600, 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, 1997, are not necessarily indicative of the results to be expected for the year ending December 31, 1997. 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, 1996, and the notes thereto, as filed with the Securities and Exchange Commission, which is available upon request by writing to McNeil Real Estate XXIII, L.P., c/o The Herman Group, 2121 San Jacinto St., 26th Floor, Dallas, Texas 75201. NOTE 3. - ------- On June 30, 1994, the Partnership filed a voluntary petition for Chapter 11 reorganization. (The petition for Chapter 11 reorganization excluded the Partnership's interest in Beckley Associates, the owner of Harbour Club II Apartments.) The Partnership continued to conduct its affairs as a debtor-in-possession, subject to the jurisdiction and supervision of the Bankruptcy Court. The Partnership's First Amended Plan of Reorganization ("Reorganization Plan"), which contemplated a sale of Woodbridge Apartments, was submitted to the Bankruptcy Court on February 13, 1995. The Partnership's Disclosure Statement of Debtor-in-Possession ("Disclosure Statement") was approved by the Bankruptcy Court on February 14, 1995. The Partnership's Reorganization Plan and Disclosure Statement were submitted February 20, 1995, to a vote of the impaired creditors, as defined. The impaired creditors included a class of creditors who had filed a judgment lien against Woodbridge Apartments in connection with the Illinois rescission suit. The judgment lien creditors filed objections to confirmation of the Reorganization Plan. On April 18, 1995, the Bankruptcy Court did grant an order to sell Woodbridge Apartments but denied confirmation of the Reorganization Plan. The Partnership filed an appeal of the Bankruptcy Court's ruling and, in the meantime, attempted to settle the matter with the judgment lien creditors, which would allow for confirmation of the Reorganization Plan. On May 10, 1995, the Reorganization Plan was amended to provide for full payment to the judgment lien creditors. The Reorganization Plan, as amended, was subsequently confirmed by the Bankruptcy Court on May 17, 1995. Woodbridge Apartments was sold on May 25, 1995, and, in accordance with the Reorganization Plan, the first and second mortgage notes payable and the related outstanding accrued interest were paid. The Partnership also utilized $156,566 of the proceeds from the sale to pay the settlement and legal fees to the judgment lien creditors, as discussed above. On September 11, 1995, the Bankruptcy Court entered an Order Regarding Objections to Claims that allowed the Partnership to pay outstanding pre-petition claims totaling approximately $124,000 in October 1995. The Reorganization Plan specified that advances and fees owed to affiliates of the General Partner were limited to remaining cash, after the pre-petition liabilities and reorganization expenses were paid. The Partnership had $37,228 of cash available to distribute to affiliate creditors. The remaining amounts owed to affiliates of the General Partner as of May 17, 1995, were discharged resulting in an extraordinary gain of $1,398,925 during the third quarter of 1995. On August 15, 1995, the Partnership sent an election form to each limited partner which allowed them to choose whether to redeem their interest in the Partnership. The redemption price was 1/1000th of a dollar per Unit. The limited partners were required to respond within 30 days, and at the close of the 30 day period, 311 limited partners had elected to redeem 4,485,345 Units. In connection with the redemption, the partnership obtained a "no-action" letter from the Securities and Exchange Commission ("SEC") that provided that (1) the redemption could be accomplished without compliance with Rule 13e-3 of the Securities Exchange Act of 1934, and (2) the SEC did not intend to pursue an enforcement action if the Reorganization Plan was consummated. Redemption of the affected Units was completed in January 1996. On November 18, 1995, the Partnership submitted a request for an Application to Close Case to the Bankruptcy Court, which was entered on December 11, 1995, and was approved on February 15, 1996. Expenses incurred by the Partnership in connection with its Chapter 11 filing have been expensed as "reorganization expenses" in the accompanying Statements of Operations. NOTE 4. - ------- The Partnership pays property management fees equal to 5% of the gross rental receipts for its property to McNeil Real Estate Management, Inc. ("McREMI"), an affiliate of the General Partner, for providing property management and leasing services. The Partnership reimburses McREMI for its costs, including overhead, of administering the Partnership's affairs. The Partnership incurs asset management fees which are 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 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. Asset management fees accrued prior to the confirmation of the Reorganization Plan were discharged pursuant to the Reorganization Plan. Total accrued but unpaid asset management fees incurred subsequent to confirmation of the Reorganization Plan in the amount of $165,166 were outstanding at June 30, 1997. 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, ---------------------- 1997 1996 --------- --------- Property management fees......................... $ 34,417 $ 32,272 Charged to general and administrative - affiliates: Partnership administration.................... 29,782 39,927 Asset management fee.......................... 39,269 30,929 -------- -------- $ 103,468 $ 103,128 ======== ======== Payable to affiliates - General Partner at June 30, 1997, and December 31, 1996, consists primarily of unpaid asset management fees and reimbursable costs that are due and payable from current operations. NOTE 5. - ------- The accompanying financial statements have been prepared assuming the Partnership will continue as a going concern. The Partnership has suffered recurring losses from operations. Operations at Harbour Club II Apartments, the Partnership's sole remaining property, are expected to be sufficient to provide cash for operating expenses and debt service for 1997. However, the property is in need of major capital improvements in order to maintain occupancy and rental rates at a level sufficient to fund operating expenses and debt service in future years. The Partnership's cash reserves are inadequate to fund the needed capital improvements, and it is unlikely that cash flow from operating activities will be sufficient to provide for the needed capital improvements. No outside sources of financing have been identified. Although affiliates of the Partnership have previously provided working capital for the Partnership, there can be no assurance that the Partnership will receive additional funds from the General Partner or other affiliates. Management is currently attempting to negotiate a restructuring or refinancing of the mortgage note payable to fund the needed capital improvements; however, such financing is not assured. If the Partnership is unable to obtain additional funds and cannot maintain operations at a level to pay operating expenses and debt service, Harbour Club II Apartments may ultimately be foreclosed on by the lender. 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. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - ------- --------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- The Partnership's operating activities provided $207,992 for the first six months of 1997 as compared to $29,535 for the first six months of 1996. The change in cash flow from operations was due to an increase in cash received from tenants and a decrease in cash paid to suppliers. See discussion of increase in rental revenue and decline in Partnership expenses below. Cash paid to suppliers decreased also due to a receipt of $50,000 for property replacements from escrow previously held by HUD, the former mortgage holder of Harbour Club II Apartments, in 1997. Cash used for additions to real estate improvements totaled $45,834 for the six months ended June 30, 1997 as compared to $102,003 for the same period of 1996. A greater amount was spent at Harbour Club II Apartments for hallway upgrades in 1996. Scheduled principal payments on mortgage note payable totaled $24,461 for the six months ended June 30, 1997 as compared to $22,696 for the same period of 1996. In accordance with terms of the Partnership's Reorganization Plan, the Partnership redeemed 4,485,345 limited partnership units from the limited partners for a total of $4,480 during the first half of 1996. Short-term liquidity: At June 30, 1997, the Partnership held $331,509 of cash and cash equivalents. The General Partner anticipates rental operations at Harbour Club II Apartments in 1997 will provide sufficient rental revenue to pay for the operating expenses of the property and debt service payments on the property's mortgage note. However, rental operations at Harbour Club II Apartments are not expected to be sufficient to fund necessary capital improvements to the property nor to pay the Partnership's other expenses. To the extent available, the Partnership will use its cash reserves to fund limited capital improvements and the Partnership's other expenses. Although the sale of Woodbridge Apartments in May 1995 provided some additional cash reserves for the Partnership, the Partnership still faces liquidity problems because of urgently needed capital improvements at Harbour Club II Apartments for which no financing has been secured. Operating activities at Harbour Club II Apartments for 1997 are expected to provide sufficient positive cash flow for normal operating expenses and debt service payments. However, the needed capital improvements will require the use of other sources of cash. No such sources have been identified. The Partnership has no established lines of credit from outside sources. Effective January 23, 1997, the mortgage note payable was sold by HUD to an unaffiliated lender. The General Partner has in the past, at its discretion, advanced funds to the Partnership that were used to fund working capital requirements. Such advances were discharged as a result of the Chapter 11 proceedings. 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: The Partnership has been in a distressed cash situation for several years. Although Harbour Club II Apartments is able to operate in such a manner as to provide for operating expenses and debt service payments, the property has not proven the capability to produce the cash flow necessary for capital improvements nor to support Partnership operations. The inability to make necessary capital improvements has led to deteriorating conditions at the property. In the opinion of management, if capital improvements are not made to make the property more marketable, the estimated fair value of the property may be further impaired. 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. The Partnership determined to evaluate market and other economic conditions to establish the optimum time to commence liquidation of the Partnership's property in accordance with the terms of the Amended Partnership Agreement. Although there can be no assurance as to the timing of the liquidation due to real estate market conditions, the general difficulty of disposing of real estate, and other general economic factors, it is anticipated that such liquidation would result in the dissolution of the Partnership followed by a liquidating distribution to Unitholders by December 2001. Distributions To maintain adequate cash balances, the Partnership suspended distributions to Current Income Unit holders in 1988. There have been no distributions to Growth/Shelter Unit 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. FINANCIAL CONDITION - ------------------- The occupancy rate at Harbour Club II Apartments decreased to 89% at June 30, 1997. The occupancy rate at December 31, 1996, was 92%. Harbour Club II Apartments was able to provide enough cash flow from operations to meet ordinary operating expenses as well as the debt service for its related mortgage note for the first six months of 1997; however, as discussed above, the property is in need of major capital improvements in order to compete in its local market. The Partnership is attempting to negotiate a restructuring or refinancing of the mortgage note payable to fund the necessary improvements; however, such restructuring or refinancing is not assured. Harbour Club II Apartments is part (Phase II) of a four-phase apartment complex located in Belleville, Michigan. Phases I and III of the complex are owned by partnerships in which the General Partner is the general partner; while Phase IV is owned by an unaffiliated partnership. McREMI managed all four phases of the complex until December 1992, when the property management agreement between McREMI and the unaffiliated partnership was canceled. Additionally, in January 1993, Phase I defaulted on its mortgage note. In the beginning of July 1997, the mortgage note was reinstated after Phase I has made all the delinquent payments and late charges. Regular monthly mortgage payments were resumed in July 1997. RESULTS OF OPERATIONS - --------------------- Revenue: Total Partnership revenues were $346,122 and $690,612 for the three and six months ended June 30, 1997, respectively, as compared to $327,778 and $648,787 for the same periods of 1996. Rental revenue at Harbour Club II Apartments increased $17,616 and $41,047, or 5.4% and 6.0%, for the three and six months ended June 30, 1997, respectively, as compared to the same periods of 1996. Increases in base rental rates at Harbour Club II Apartments were the principal factor leading to the increase in rental revenue. Interest income increased $729 and $778 for the three and six months ended June 30, 1997, respectively, as compared to the same periods of 1996. The increase was due to a higher amount of cash available for short-term investment in 1997. The Partnership held $331,000 of cash and cash equivalents at June 30, 1997 as compared to $134,000 at June 30, 1996. Expenses: Total Partnership expenses decreased $20,473 and $31,464, or 5.1% and 4.0%, for the three and six months ended June 30, 1997, respectively, as compared to the same periods of 1996. Repairs and maintenance decreased $11,071 and $7,986 for the three and six months ended June 30, 1997, respectively, as compared to the same periods of 1996 due to decreased replacement of floor coverings at Harbour Club II Apartments. Other property operating expenses decreased $3,643 and $8,277 at Harbour Club II Apartments for the three and six months ended June 30, 1997, respectively, compared to the same periods of 1996. The decrease was attributable to the accrual of HUD audit fees in 1996. No such fees were accrued in 1997 due to the sale of the mortgage note by HUD to an unaffiliated lender in January 1997. Reorganization expenses incurred by the Partnership in connection with its Chapter 11 filing were $999 and $5,362 for the three and six months ended June 30, 1996, respectively. No such costs were incurred in 1997. 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 30, 1992. (Incorporated by reference to the Current Report of the Registrant on Form 8-K dated March 30, 1992, as filed on April 10, 1992). 11. Statement regarding computation of Net Income (Loss) per Thousand Limited Partnership Units: Net income (loss) per thousand limited partner units is computed by dividing net income (loss) allocated to the limited partners by the weighted average number of limited partnership units outstanding expressed in thousands. Per unit information has been computed based on 6,652 and 6,682 Current Income Units (in thousands) outstanding in 1997 and 1996, respectively, and 4,861 and 4,941 Growth/Shelter Units (in thousands) outstanding in 1997 and 1996, respectively. 27. Financial Data Schedule for the quarter ended June 30, 1997. b) Reports on Form 8-K. There were no reports on Form 8-K filed during the quarter ended June 30, 1997. McNEIL REAL ESTATE FUND XXIII, L.P. (Debtor-in-Possession) 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 XXIII, L.P. By: McNeil Partners, L.P., General Partner By: McNeil Investors, Inc., General Partner August 13, 1997 By: /s/ Ron K. Taylor - ---------------- ---------------------------------------- Date Ron K. Taylor President and Director of McNeil Investors, Inc. (Principal Financial Officer) August 13, 1997 By: /s/ Carol A. Fahs - ---------------- ---------------------------------------- Date Carol A. Fahs Vice President of McNeil Investors, Inc. (Principal Accounting Officer) EX-27 2
5 6-MOS DEC-31-1997 JUN-30-1997 331,509 0 0 0 0 0 6,315,698 (3,054,860) 3,704,571 0 3,742,732 0 0 0 0 3,704,571 685,614 690,612 0 0 588,454 0 173,024 0 0 (70,866) 0 0 0 (70,866) 0 0
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