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EXHIBIT 99.0
MCCALLUM GLEN APARTMENTS
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1994
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Independent Auditors' Report
To the Board of Trustees
Continental Mortgage and Equity Trust
We have audited the accompanying statement of revenues and direct operating
expenses of McCallum Glen Apartments for the year ended December 31, 1994.
This statement of revenues and direct operating expenses is the responsibility
of the Property's management. Our responsibility is to express an opinion on
this statement of revenues and direct operating expenses based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the statement of revenues and direct
operating expenses is free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the statement of revenues and direct operating expenses. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall statement of revenues and
direct operating expenses presentation. We believe that our audit provides a
reasonable basis for our opinion.
The accompanying financial statement is prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission (for
inclusion in Form 8-K of Continental Mortgage & Equity Trust) and, as described
in Note 1, is not intended to be a complete presentation of the results of
operations.
In our opinion, the statement of revenues and direct operating expenses
referred to above presents fairly, in all material respects, the revenues and
direct operating expenses of McCallum Glen Apartments for the year ended
December 31, 1994, in conformity with generally accepted accounting principles.
Dallas, Texas
August 31, 1995
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MCCALLUM GLEN APARTMENTS
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1994
REVENUES
Rental revenues $ 1,204,177
Other 40,730
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Total Revenues 1,244,907
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OPERATING EXPENSES
Administration 21,392
Insurance 27,793
Management Fees 62,579
Marketing 22,960
Payroll & benefits 184,083
Property Taxes 163,161
Repairs & Maintenance 90,773
Utilities 103,062
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Total Operating Expenses 675,803
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NET OPERATING INCOME $ 569,104
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The accompanying notes are an integral part of this statement.
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MCCALLUM GLEN APARTMENTS
NOTES TO STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
DECEMBER 31, 1994
NOTE 1: ORGANIZATION
McCallum Glen Apartments is a 275 unit apartment complex located in
Dallas, Texas. During 1994, the property was owned by SII - Glen,
Ltd., a Texas limited partnership.
The accompanying financial statement does not include a provision for
depreciation and amortization, interest expense or income taxes.
Accordingly, this statement is not intended to be a complete
presentation of the results of operations.
NOTE 2: OTHER INCOME
Other income consists of the following:
Reletting Income $ 21,039
Late fees 9,355
Application Fees 4,715
Vending income 4,621
NSF fees 1,000
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Total Other Income $ 40,730
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NOTE 3: MANAGEMENT FEES
The property has a management agreement with North American Property
Associates, Ltd. which calls for a fee equal to 5% of gross monthly
receipts, as defined.
NOTE 4: SUBSEQUENT EVENTS
In March 1995, SII - Glen, Ltd. filed for protection under Chapter 11
of the United States Bankruptcy Code.
The property was sold to Continental Mortgages and Equity Trust, a
California business trust on July 31, 1995.
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