1
EXHIBIT 99.1
THE AMOCO BUILDING
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1995
15
2
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 The Amoco Building for the year ended December 31, 1995. 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 The Amoco Building for the year ended December 31,
1995, in conformity with generally accepted accounting principles.
Farmer, Fuqua, Hunt & Munselle, P.C.
Dallas, Texas
May 23, 1996
16
3
THE AMOCO BUILDING
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1995
REVENUES
Rental revenues $ 988,581
Tenant air conditioning charges 21,425
-------------
Total revenues 1,010,006
OPERATING EXPENSES
Utilities 330,868
Contract services 190,450
Salaries and benefits 135,059
Property taxes 108,847
Cleaning 85,012
Insurance 74,500
Supplies 20,199
Mechanical repairs 17,602
Professional services 2,334
Repairs and maintenance 1,913
-------------
Total direct operating expenses 966,784
-------------
REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $ 43,222
=============
The accompanying notes are an integral part of this statement.
17
4
THE AMOCO BUILDING
NOTES TO STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
DECEMBER 31, 1995
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION
The Amoco Building is an office building with 378,244 square feet,
located in New Orleans, Louisiana. During 1995, the property was
owned by 1340 Poydras New Orleans Ltd. Partnership.
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: SUBSEQUENT EVENT
The property was sold to Continental Mortgages and Equity Trust, a
California business trust, on April 15, 1996.
18