EX-13 3 r13beast.txt EXHIBIT 13B [LETTERHEAD OF WIEN & MALKIN LLP] November 30, 2001 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, 2001. The lessee reported profit of $16,115,379 subject to additional rent for the lease year ended September 30, 2001, as against profit of $12,346,749 for the lease year ended September 30, 2000. Additional rent for the lease year ended September 30, 2001 was $9,111,490; $1,053,800 at $87,817 per month was advanced against additional rent so that the balance of additional rent is $8,057,690. 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 $805,769 of the additional rent and the balance of $7,251,921 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 $7,251,921 represents a return of about 103.6% 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, 2001 will be about 118.5% 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:fm Encs. 60 East 42nd St. Associates Computation of Additional Payment for Supervisory Services and Distribution For the Lease Year Ended September 30, 2001 Secondary additional rent $ 8,057,690 Primary additional rent, 2001 Monthly distributions at about 14.9% per annum on $7,000,000 original investment $1,046,420 Additional monthly payment to Wien & Malkin LLP 7,380 1,053,800 Total rent to be distributed 9,111,490 14% return on $7,000,000 investment 980,000 Subject to additional payment at 10% to Wien & Malkin LLP $ 8,131,490 Additional payment at 10% $ 813,149 Paid to Wien & Malkin LLP as advances for additional payment 7,380 Balance of additional payment to Wien & Malkin LLP $ 805,769 Summary: Additional distribution to participants $ 7,251,921 Payment to Wien & Malkin LLP, as above 805,769 Total secondary additional rent available for distribution to participants and payment to Wien & Malkin LLP $ 8,057,690 [LETTERHEAD OF ROGOFF & COMPANY, P.C. CERTIFITED PUBLIC ACCOUNTANTS] Lincoln Building Associates 60 East 42nd Street New York, New York 10165 We have compiled a special-purpose statement of income and expense of Lincoln Building Associates for the lease year ended September 30, 2001 for the determination of additional rent due to 60 East 42nd St. Associates in accordance with paragraph 2(B) of the lease, as modified, between Lincoln Building Associates and 60 East 42nd St. Associates. Such report is not intended to be a presentation in conformity with generally accepted accounting principles. Our engagement was conducted in accordance with Statements for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting, in the form of financial statements, information that is representation of management. We have not audited or reviewed the accompanying special-purpose financial statement and , accordingly, do not express an opinion or any other form of assurance on it. This report is intended solely for the information and use of the managements of Lincoln Building Associates and 60 East 42nd St. Associates, and should not be used for any other purpose. New York, New York October 24, 2001 Lincoln Building Associates Special Purpose Statement of Income and Expense October 1,2000 through September 30, 2001 Income: Rent income $ 34,574,043 Net electric income 1,468,783 Other income 1,064,060 $ 37,106,886 Total Income Expenses: Basic rent expense 1,446,669 Real estate taxes 5,484,964 Labor costs 6,564,256 Repairs, supplies and improvements 3,351,483 Steam 868,194 Management and leasing 940,820 Professional fees 454,761 Insurance 165,624 Water and sewer charges 78,937 Miscellaneous 581,999 Total Expenses 19,937,707 Net Income subject to additional rent 17,169,179 Less, Net income subject to primary additional rent 1,053,800 Net Income Subject to secondary additional rent $ 16,115,379 Secondary additional rent at 50% $ 8,057,690 Computation of Additional Rent due Landlord: Primary additional rent $ 1,053,800 Secondary additional rent 8,057,690 Total Additional rent 9,111,490 Less, Advances against additional rent 1,053,800 Additional rent due landlord $ 8,057,690 See accompanying Accountants' Compilation Report and Selected Information. Lincoln Building Associates Selected Information 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.