EX-13 3 east13b.txt EXHIBIT 13 B [LETTERHEAD OF WIEN & MALKIN LLP] November 30, 2000 TO PARTICIPANTS IN 60 EAST 42ND ST. ASSOCIATES: We enclose the operating report of the lessee, Lincoln Building Associates, for the fiscal year of the lease ended September 30, 2000. The lessee reported profit of $12,346,749 subject to additional rent for the lease year ended September 30, 2000, as against profit of $6,182,732 for the lease year ended September 30, 1999. Additional rent for the lease year ended September 30, 2000 was $7,227,175; $1,053,800 at $87,817 per month was advanced against additional rent so that the balance of additional rent is $6,173,375. Wien & Malkin LLP receives an additional payment for supervisory services of 10% of distributions in excess of 14% per annum on the cash investment. Accordingly, Wien & Malkin LLP received $617,337 of the additional rent and the balance of $5,556,038 is being distributed to the participants. A check for your share of the additional distribution and the computation of the additional payment to Wien & Malkin LLP and distribution are enclosed. The additional distribution of $5,556,038 represents a return of about 79.37% on the cash investment of $7,000,000. Regular monthly distributions are at the rate of about 14.9% a year, so that distributions for the year ending December 31, 2000 will be about 94.27% per annum. If you have any question about the enclosed material, please communicate with the undersigned. Cordially yours, WIEN & MALKIN LLP By: Stanley Katzman SK:jf Encs. -48- 60 East 42nd St. Associates Computation of Additional Payment for Supervisory Services and Distribution For the Lease Year Ended September 30, 2000 Secondary additional rent $ 6,173,375 Primary additional rent, 2000 Monthly distributions at about 14.9% per annum on original investment $1,046,420 Additional monthly payment to Wien & Malkin LLP 7,380 1,053,800 Total rent to be distributed 7,227,175 14% return on $7,000,000 investment 980,000 Subject to additional payment at 10% to Wien & Malkin LLP $ 6,247,175 Additional payment at 10% $ 624,717 Paid to Wien & Malkin LLP as advances for additional payment 7,380 Balance of additional payment to Wien & Malkin LLP $ 617,337 Summary: Additional distribution to participants $ 5,556,038 Payment to Wien & Malkin LLP, as above 617,337 Total secondary additional rent available for distribution to participants and payment to Wien & Malkin LLP $ 6,173,375 -49- [Rogoff & Comapny, P.C.] Lincoln Building Associates 60 East 42nd Street New York, New York 10165 Gentlemen: In accordance with our engagement, we have compiled the special-purpose statement of income and expense of Lincoln Building Associates for the lease year ended September 30, 2000. Our engagement included the examination of statements of receipts and disbursements for the property, together with supporting records, but did not include the verification by direct communication of the income from tenants or liabilities and disbursements to vendors. We have no knowledge of any contingent liabilities that should be disclosed. Based on our compilation, subject to the above, the accompanying special-purpose statement of income and expense presents fairly the net operating income, as defined, for the computation of additional rent, of Lincoln Building Associates, for the lease year ended September 30, 2000. New York, New York October 25, 2000 -50- Lincoln Building Associates Statement of Income and Expense October 1, 1997 through September 30, 1998 (Unaudited) Income: Rent $23,827,607 Electricity - net 838,186 Other income 724,952 Total Income $25,390,745 Expenses: Basic rent expense 1,087,839 Real estate taxes 5,353,821 Labor costs 5,589,029 Repairs, supplies and improvements 6,407,704 Steam 483,773 Management and leasing fees 1,381,258 Professional fees 320,071 Insurance 161,299 Water and sewer charges 154,361 Miscellaneous 338,487 Total Expenses 21,277,642 Net income subject to additional rent 4,113,103 Less, Net income subject to primary additional rent 1,053,800 Net income subject to secondary additional rent $ 3,059,303 Secondary additional rent @ 50% $ 1,529,651 Computation of Additional Rent due Landlord: Primary additional rent $ 1,053,800 Secondary additional rent 1,529,651 Total additional rent 2,583,451 Less, Advances against additional rent 1,053,800 Additional rent due landlord $ 1,529,651 The accompanying letter of transmittal and notes are an integral part of this statement. -51- Lincoln Building Associates Notes to Financial Statement Note 1 - The lease as modified effective January 1, 1977 provides for additional rent, as follows: Additional rent equal to the first $1,053,800 of the Lessee's net operating income, as defined, in each lease year. Further additional rent equal to 50% of the Lessee's remaining net operating income, as defined, in each lease year. -52-