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EXHIBIT 99.0
Heritage on the River Apartments
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Statement of Revenues and
Direct Operating Expenses
Year Ended December 31, 1994
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Heritage on the River Apartments
Contents
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Report of Independent Certified Public Accountants 2
Financial Statement
Statement of revenue and direct operating expenses 3
Notes to statement of revenue and direct operating expenses 4
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Independent Auditors' Report
To the Board of Trustees
Continental Mortgage and Equity Trust
We have audited the accompanying statement of revenue and direct operating
expenses of Heritage on the River Apartments (a real estate project) for the
year ended December 31, 1994. This financial statement is the responsibility
of the management of Heritage on the River Apartments. Our responsibility is
to express an opinion on this financial statement 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 historical summary is free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the historical summary. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that out 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 the form 8-K of Continental Mortgage and Equity Trust) and, as
described in Note 1, is not intended to be a complete presentation of the
results of operations of Heritage on the River Apartments.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the revenue and direct operating expenses of Heritage on
the River Apartments, for the year ended December 31, 1994, in conformity with
generally accepted accounting principles.
BDO Seidman, LLP
December 20, 1995
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Heritage on the River Apartments
Statement of Revenues and Direct Operating Expenses
Year Ended December 31, 1994
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Revenues
Rental revenues $1,524,095
Other (Note 2) 78,552
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Total revenues 1,602,647
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Operating expenses
Payroll and related expenses 294,864
Repairs and maintenance 155,207
Utilities 149,668
Property taxes 130,200
Management fees (Note 3) 80,132
Property management 52,705
Administrative 43,546
Contract services 34,830
Insurance 29,952
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Total direct operating expenses 971,104
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Revenues in excess of direct operating expenses $ 631,543
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See accompanying notes to financial statements.
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Heritage on the River Apartments
Notes to Statement of Revenues and Direct Operating Expenses
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1. Basis of Presentation Heritage on the River Apartments is a
residential apartment complex located in
Jacksonville, Florida. There is a total of 310
rentable units. For the year ended December
31, 1994, and through the period ended
December 20, 1995, the property was owned by
Lifton-MAQ Associates. On December 20, 1995,
the property was acquired by Continental
Mortgage and Equity Trust.
The accompanying financial statement has been
prepared to substantially comply with the rules
and regulations of the Securities and Exchange
Commission for business combination accounted
for as a purchase. The statement of revenues
and direct operating expenses does not include
certain historical expenses, such as
depreciation and amortization, interest expense
or income taxes. Accordingly, this summary is
not intended to be a complete presentation of
the results of operations.
2. Other Income Other income consists of revenue for laundry,
late fees and vending.
3. Management Fees The property has a management agreement with
an affiliate Lifton-MAQ Associates. This
agreement requires Lifton-MAQ Associates to
pay 5% of gross revenues as a management fee.
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