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EXHIBIT 99.2
GROVE PARK APARTMENTS
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1995
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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 Grove Park Apartments 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 Grove Park Apartments for the year ended December
31, 1995, in conformity with generally accepted accounting principles.
Farmer, Fuqua, Hunt & Munselle, P.C.
Dallas, Texas
July 9, 1996
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GROVE PARK APARTMENTS
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1995
REVENUES
Net rental revenues $ 932,766
Other revenues 37,615
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Total revenues 970,381
OPERATING EXPENSES
Salaries and benefits 144,572
Property taxes 105,299
Utilities 90,814
Repairs and maintenance 81,474
Insurance 24,745
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Total direct operating expenses 446,904
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REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $ 523,477
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The accompanying notes are an integral part of this statement.
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GROVE PARK APARTMENTS
NOTES TO STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
DECEMBER 31, 1995
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION
Grove Park Apartments is a 188-unit apartment complex, located in
Plano, Texas. During 1995, the property was owned by Southwest
Properties Group, Inc.
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 REVENUES
Other revenues consist of the following:
Security deposits forfeited $ 11,419
Late fees 7,471
Interest income 6,894
Laundry revenue 4,410
Miscellaneous 4,321
Application fees 3,100
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$ 37,615
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NOTE 3: SUBSEQUENT EVENT
The property was sold to Continental Mortgages and Equity Trust, a
California business trust, on June 28, 1996.
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