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EXHIBIT 99.2
2626 COLE
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 2626 Cole 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 2626 Cole for the year ended December 31, 1995,
in conformity with generally accepted accounting principles.
Farmer, Fuqua, Hunt & Munselle, P.C.
Dallas, Texas
February 18, 1997
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2626 COLE
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
Year Ended December 31, 1995
REVENUES
Net rental revenues $ 1,452,889
Other revenues 113,410
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Total revenues 1,566,299
OPERATING EXPENSES
Repairs and maintenance 259,264
Utilities 247,564
Property taxes 136,312
Salaries and benefits 73,453
Insurance 17,307
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Total direct operating expenses 733,900
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REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $ 832,399
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The accompanying notes are an integral part of this statement.
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2626 COLE
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
Year ended December 31, 1995
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION
2626 Cole is a 119,632 square-foot office building, located in
Dallas, Texas. During 1995, the property was owned by Amerus
Properties, 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:
Common area maintenance $ 76,021
Miscellaneous 37,389
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$ 113,410
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NOTE 3: ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 4: SUBSEQUENT EVENT
The property was sold to Continental Mortgage and Equity
Trust, a California business trust, on December 31, 1996.
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