EX-13 4 exh13b.txt EXHIBIT 13B [LETTERHEAD OF WIEN & MALKN LLP] November 29, 2002 TO PARTICIPANTS IN 60 EAST 42nd ST. ASSOCIATES L.L.C.: We enclose the operating report of the lessee, Lincoln Building Associa- tes, for the fiscal year of the lease ended September 30, 2002. The lessee reported profit of $13,889,578 subject to additional rent for the lease year ended September 30, 2002, as against profit of $16,115,379 subject to additional rent for the lease year ended September 30, 2001. Additional rent for the lease year ended September 30, 2002 was $7,998,589. $1,053,800 at $87,817 per month was advanced against additional rent so that the balance of additional rent is $6,944,789. Although total income of the lessee this lease year increased by approximately $1,200,000 over last year, additional costs, primarily attribut- able to insurance, basic rent, tenant installations and leasing commissions, resulted in a reduction in this year's additional rent distribution. Wien & Malkin LLP receives an additional payment for supervisory services of 10% of distributions in excess of 14% per annum on the cash investment. After deducting $16,480 for fees and costs relating to the conversion of 60 East 42nd St. Associates to a limited liability company, including $15,330 to Wien & Malkin LLP, as approved by the participants, $6,928,309 is available for distribution. Accordingly, Wien & Malkin LLP received $692,831 of the additional rent and the balance of $6,235,478 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 $6,235,478 represents a return of about 89.1% on the cash investment of $7,000,000. Regular monthly distribut- ions are at the rate of about 14.9% a year, so that distributions for the year ending December 31, 2002 will be about 104.0% per annum. If you have any question about the enclosed material, please communi- cate with the undersigned. Cordially yours, WIEN & MALKIN LLP By: Stanley Katzman SK:fm Encs. 60 East 42nd St. Associates L.L.C. Computation of Additional Payment for Supervisory Services and Distribution For the Lease Year Ended September 30, 2002 Secondary additional rent $6,944,789 Primary additional rent, 2002 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 7,998,589 Less: Fees and costs relating to the conversion of 60 East 42nd St. Associates to a limited liability company, including $15,330 to Wien & Malkin LLP, as approved by the participants 16,480 Total rent to be distributed 7,982,109 Less: 14% return on $7,000,000 investment 980,000 Subject to additional payment at 10% to Wien & Malkin LLP $ 7,002,109 Additional payment at 10% $ 700,211 Paid to Wien & Malkin LLP as advance for additional payment 7,380 Balance of additional payment to Wien & Malkin LLP $ 692,831 Summary: Additional distribution to participants $ 6,235,478 Payment to Wien & Malkin LLP, as above 692,831 Total secondary additional rent available for distribution to participants and payment to Wien & Malkin LLP $ 6,928,309 [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, 2002 for the determination of additional rent due to 60 East 42nd St. Associates L.L.C. in accordance with paragraph 2(B) of the lease, as modified, between Lincoln Building Associates and 60 East 42nd St. Associates L.L.C. 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 L.L.C., and should not be used for any other purpose. New York, New York October 31, 2002 Lincoln Building Associates Special Purpose Statement of Income and Expense October 1,2001 through September 30, 2002 Income: Rent income $ 35,940,039 Net electric income 1,021,173 Other income 1,371,471 Total Income $ 38,332,683 Expenses: Basic rent expense 1,912,979 Real estate taxes 5,652,924 Labor costs 6,724,889 Repairs, supplies and improvements 5,143,605 Steam 664,167 Management and leasing 1,481,707 Professional fees 691,651 Insurance 343,885 Water and sewer charges 120,453 Miscellaneous 653,045 Total Expenses 23,389,305 Net Income subject to additional rent 14,943,378 Less, Net income subject to primary additional rent 1,053,800 Net Income Subject to secondary additional rent $13,889,578 Secondary additional rent at 50% $ 6,944,789 Computation of Additional Rent due Landlord: Primary additional rent $ 1,053,800 Secondary additional rent 6,944,789 Total Additional rent 7,998,589 Less, Advances against additional rent 1,053,800 Additional rent due landlord $ 6,944,789 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.