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BROOKFIELD CORPORATE CENTER
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 Brookfield Corporate Center 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 and 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 Brookfield Corporate Center for the year ended
December 31, 1994, in conformity with generally accepted accounting principles.
Farmer, Fuqua, Hunt & Munselle, P.C.
Dallas, Texas
February 8, 1996
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BROOKFIELD CORPORATE CENTER
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1994
REVENUES
Rental revenues $ 332,793
Common area maintenance charges 84,971
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Total Revenues 417,764
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OPERATING EXPENSES
Insurance 10,030
Postage and freight 1,220
Property taxes 28,158
Repairs and maintenance 31,442
Utilities 7,206
Other 2,032
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Total Operating Expenses 80,088
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REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $ 337,676
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The accompanying notes are an integral part of this statement.
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BROOKFIELD CORPORATE CENTER
NOTES TO STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
DECEMBER 31, 1994
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION
Brookfield Corporate Center consists of two warehouses with 32,020
and 31,484 square feet respectively, located in Fairfax County,
Virginia. The warehouses can be utilized as office space, as
well as storage space. During 1994, the property was owned by
Reynolds Metals Development Company.
The accompanying financial statement does not include a provision
for depreciation and amortization, bad debt expense, interest
expense or income taxes. Accordingly, this statement is not
intended to be a complete presentation of the results of
operations.
NOTE 2: OTHER EXPENSE
Other expense consists of the following:
Property owner's fees $ 1,171
Miscellaneous 861
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Total Other Expense $ 2,032
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NOTE 3: SUBSEQUENT EVENT
The property was sold to Continental Mortgages and Equity Trust, a
California business trust, on December 28, 1995.
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