(A) As of December 31, 1997, IDS Life's portion of the Total Contract Owners' Equity was $25,877,976 (91%) and IDS Life owned 24,969,872 (91%) of the total Accumulation Units Outstanding.
Financial Condition and Results of Operations For the Year Ended December 31, 1997 Compared to the Year Ended December 31, 1996
Recorded net income for the year ended December 31, 1997 was $1,718,205 compared to net loss of $153,491 for the year ended December 31, 1996.
For the year ended December 31, 1997, the Account's recorded equity in earnings of its unconsolidated joint ventures (N/S Associates, Monmouth Associates and 1225 Connecticut) was $2,277,775 compared to $2,167,460 for the year ended December 31, 1996. The increase is due primarily to an increase in interest income earned by Monmouth Associates. The increase in earnings was partially offset by lower rental income achieved at Southridge and Northridge Malls due to lower effective rents.
Northridge Mall continues to be adversely affected by the perception that it is an unsafe place to shop. This perception has resulted in declining sales and occupancy over a three-year period. Compounding the problem of declining sales are the high operating costs for tenants at the mall. Occupancy has also been affected by tenant bankruptcies over the past years. As of December 31, 1997, occupancy of the mall shops was approximately 75%, including temporary tenants under short term leases. In August 1997, a movie theater, which occupied approximately 8% of the owned net rentable area at the property, vacated its space upon expiration of its lease. Northridge is attempting to lease this space to another movie theater operator, however, there can be no assurance the Northridge Mall will be successful.
Kohl's Department Store, a successful tenant occupying approximately 66,000 square feet of space at Southridge Mall, approached N/S Associates regarding an expansion of its tenant space and a reduction in its overall leasing costs. During the third quarter of 1995, N/S Associates and Kohl's entered into an amendment of its lease. Pursuant to the lease amendment, the term of Kohl's lease was extended from 2001 until 2015 and the tenant space was increased by approximately 19,000 square feet to approximately 85,000 square feet, exclusive of storage space. Kohl's is required to pay annual base rent of $9.25 per square foot, as well as one-half of its pro rata share for real estate taxes and a fixed amount for common area maintenance expense. Kohl's is also obligated to pay as additional rent a percentage of its gross receipts in excess of a minimum amount of annual sales determined after the tenant has occupied the entire leased space. N/S Associates was responsible for paying the costs of asbestos removal for the tenant space. Kohl's was obligated to pay other costs associated with the leased space, including tenant improvements and lease buy-out and relocation costs. The lease amendment also contains an operating covenant pursuant to which Kohl's is obligated to operate its retail store at Southridge Mall until 2005, subject to earlier termination under certain circumstances. Although the lease amendment reduces Kohl's overall rent, the expansion of its space and the extension of its lease term is expected to help stabilize the shopping center on a long-term basis by ensuring Kohl's continued occupancy and its contribution to customer traffic. As of December 31, 1997, occupancy of the portion of Southridge Mall owned by N/S Associates was approximately 97%, including temporary tenants under short-term leases.
Distributions from unconsolidated joint ventures increased from $2,358,370 in 1997 compared to $1,729,576 in 1996. The increase was primarily due to the Account's share of Monmouth Associates' distributions of $1,115,200. The increase was partially offset by decreased distributions from N/S Associates and 1225 Investment Corporation.
Net assets decreased from $35,906,465 at December 31, 1995 to $33,545,476 at December 31, 1996. During this same time period, the accumulation unit value decreased from $.99 to $.98. The Account experienced net terminations amounting to $2,207,498 for the year ended December 31, 1996 compared to net sales of $2,291,255 for the year ended December 31, 1995. The net sales for the year ended December 31, 1995 include approximately $24,700,000 for accumulation units purchased by IDS Life, which has been used to repay principal and accrued interest on the Account's revolving loan payable to IDS Life and to pay for contract surrenders, as discussed more fully below.
Interest income for the year ended December 31, 1996 primarily represents income earned on the Account's investment in the participation in a mortgage loan (Riverpoint Shopping Center). Interest income also includes interest earned on short term investments. The borrower had notified the Lenders that it was experiencing financial difficulties and approached the Lenders regarding a loan modification. During the third quarter of 1996, the Lenders and Borrowers finalized a loan modification whereby they reached an agreement to defer payment of a portion of the scheduled debt service from September 15, 1995 to July 15, 1996. In conjunction with the loan modification agreement, the scheduled maturity date of the loan was accelerated to December 31, 1997. Finally, the Lenders agreed to accept at certain dates through June 30, 1997 repayment of the loan at specified amounts. On December 24, 1996, the borrower repaid the lenders $27,400,000 (of which the Account's share was approximately $2,800,000) in full satisfaction of the loan as agreed upon.
The Account paid asset management and mortality expense risk fees of $1,011,135 and $1,086,516 for the years ended December 31, 1996 and 1995, respectively.
For the Year Ended December 31, 1997 Compared to the Year Ended December 31, 1996 At December 31, 1997, the Account had cash of approximately $83,000 as compared to approximately $103,000 at December 31, 1996. The Account financed a portion of the contract terminations during 1996 through additional investments made by IDS Life Insurance Company (IDS Life). The Account had experienced net contract terminations in 6 consecutive quarters.
Effective May 1, 1995, new contract sales of the Account were discontinued. Additional purchase payments continue to be accepted for existing contracts in amounts specified in the Account's prospectus, whether by means of the previously established bank authorizations or otherwise. Existing contracts also continue to be serviced and surrender requests will be honored.
IDS Life continues to purchase accumulation units in order to maintain the Account and its liquidity. IDS Life makes these payments so that no contract holder is disadvantaged because sales of new contracts have been discontinued. The initial payments for accumulation units that IDS Life made into the Account in 1995 were used to pay off the amount that the Account had borrowed under its revolving line of credit. IDS Life expects to continue to make additional payments into the Account for accumulation units as needed in order to fund all of the Account's obligations under the contracts such as paying death benefits and contract terminations.
Since the Account has experienced substantial net contract terminations over the past several years, the Account does not intend to acquire additional real estate related investments. During 1996, the Account liquidated two real estate related investments. Further, the Account intends to liquidate the real estate related investments that it currently holds when it becomes advantageous or necessary to do so. To the extent funds of the Account are not used to pay obligations of the Account, including those under existing contracts, or the redemption of accumulation units purchased by IDS Life, such funds will be invested in short-term debt instruments and possibly intermediate-term bonds with maturities of up to five years.
In February 1995, N/S Associates obtained a new mortgage loan secured by Southridge Mall in the principal amount of $35,000,000. The new mortgage loan has a term of seven years, bears interest at 8.35 percent per annum and requires monthly payments of interest only prior to maturity. A portion of the proceeds from the new mortgage loan was used to repay the two mortgage loans secured by Northridge Mall as well as the mortgage loan previously secured by Southridge Mall. Remaining net proceeds from the refinancing have been and will be used to pay tenant improvement and other capital costs at Northridge and Southridge Malls.
IDS Life continues to purchase accumulation units in order to maintain the Account and its liquidity. IDS Life makes these payments so that no contract holder is disadvantaged because sales of new contracts have been discontinued. The initial payments for accumulation units that IDS Life made into the Account were used to pay off the amount that the Account had borrowed under its revolving line of credit. IDS Life expects to continue to make additional payments into the Account for accumulation units as needed in order to fund all of the Account's obligations under the contracts such as paying death benefits and contract terminations. As of December 31, 1996, IDS Life had purchased approximately 24,969,872 accumulation units.
Through December 31, 1997, Monmouth Associates funded approximately $25,905,000 of the renovation loan for Monmouth Mall. Fundings of principal on the loan have been made from cash reserves held by Monmouth Associates, cash flow from interest and ground rent payments received from borrower/lessee and capital contributions made to Monmouth Associates by its partners pro rata based upon their respective interests. The aggregate amount of capital contributions to finance the loan, is approximately $9,830,000. The Account's share of these capital contributions is approximately $685,000. The aggregate amount of the renovation loan, including accrued and deferred interest of approximately $1,300,000, is currently expected to be no greater than $29,100,000. Remaining fundings for the renovation loan are expected to be made from cash flow and funds currently held by Monmouth Associates. Monmouth Associates may also be required to make certain additional loans to pay a portion of the costs of certain tenant improvements or other ordinary capital expenditures. In addition, Monmouth Associates may provide additional financing to the borrower/lessee in order to pay costs to be incurred in connection with the replacement of a department store tenant at Monmouth Mall.
The renovation is nearing completion with tenant improvement work and retainage work remaining. The occupancy of mall shops and outparcel space at the shopping center as of December 31, 1996 was approximately 83 percent. However, the mall shops and outparcel space are approximately 86 percent leased. Leasing and occupancy at the shopping center have been adversely affected by tenant bankruptcies occurring in 1995.
The Account had a loan outstanding in the principal amount of approximately $7,770,000, prior to its payoff in September 1996 as a result of the sale, secured by its wholly-owned real estate investment, West Springfield Terrace Apartments. The loan had an original term of seven years and bore interest at a rate of 9.5 percent per annum. The loan required monthly payments of principal and interest aggregating $824,000 per annum until November of 1996 when the remaining principal balance was due.
Independent Auditors' Report Balance Sheets, December 31, 1997 and 1996 Statements of Operations, years ended December 31, 1997, 1996 and 1995 Statements of Changes in Contract Owners' Equity, years ended December 31, 1997, 1996 and 1995 Statements of Cash Flows, years ended December 31, 1997, 1996 and 1995 Notes to Financial Statements Participation in Mortgage Loan on Real Estate and Interest Earned on Participation in Mortgage - Schedule III Real Estate Owned and Rental Income - Schedule IV
Independent Auditors' Report Combined Balance Sheets, December 31, 1997 and 1996 Combined Statements of Operations, years ended December 31, 1997, 1996 and 1995 Combined Statements of Partners' Capital Accounts, years ended December 31, 1997, 1996 and 1995 Combined Statements of Cash Flows, years ended December 31, 1997, 1996 and 1995 Notes to Combined Financial Statements Participation in Mortgage Loan on Real Estate and Interest Earned on Participation in Mortgage - Schedule III Combined Real Estate Owned and Rental Income - Schedule IV
Investments in short-term securities maturing more than 60 days from the valuation date are valued at the market price or approximate fair value based on current interest rates; those maturing in 60 days or less are valued at amortized cost. The Account also may invest in intermediate-term bonds with maturities of up to five years which are valued at fair value as determined by reference to market quotations, market indices, matrices and data from independent brokers.
The Account initially values real estate related investments at their cost (including acquisition or mortgage placement fees and other acquisition or placement expenses) unless circumstances otherwise indicate that a different value should be used. Subsequently, the value of these investments will be periodically reviewed by JMB Annuity Advisers (the Investment Adviser). Additionally, at the time of purchase and once every two years thereafter, each real property investment and each real property underlying a participating mortgage loan or land sale-leaseback investment will be appraised by an independent appraiser or an existing appraisal will be updated. The relative weight to be given to a particular methodology or other relevant factors in determining the estimated asset value of a particular real property will depend upon an assessment of the existing and anticipated market conditions and property specific factors relevant to such real property. There is no assurance that the assumptions, estimates and methodologies used in valuing the Account's real estate related investments will in fact prove accurate or that such values would in fact be realized. Such estimates involve subjective judgments as the actual price of real estate can only be determined between independent third parties in sales transactions. In addition, any expenses that may be borne by the Account in connection with the disposition of a real estate related investment are not deducted in determining its estimated value.
The Account also pays IDS Life an asset management fee equal, on an annual basis, to 1.25 percent of the average daily asset value, as defined, of the Account. A portion of this fee, equal to 0.95 percent of the average daily asset value, is paid by IDS Life to the Investment Adviser. The total fee may be adjusted upward to a maximum of 1.50 percent depending upon the performance of the Account's real property investments as measured against the The National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index. The performance-related portion of the fee is calculated and recorded on an annual basis when the NCREIF Property Index is released each year for the preceding calendar year. Any performance fee adjustment will be paid to the Investment Adviser. There were no performance fees for the years 1997, 1996 or 1995. For the years ended December 31, 1997, 1996 and 1995, the Account paid total asset management fees of $435,406, $561,742 and $603,620, respectively.
The Account pays for all operational expenses incurred on its behalf. For the years ended December 31, 1997, 1996 and 1995, IDS Life was reimbursed $11,019, $35,385 and $56,102, respectively, for personnel-related expenses incurred in the administration of the Account.
N/S Associates acquired its interest in the shopping center for a purchase price of approximately $115,401,000, of which $96,865,000 was paid in cash at closing. In February 1995, the mortgage loan secured by the property was repaid with a portion of the proceeds from a new mortgage loan in the principal amount of $35,000,000. The new mortgage loan has a term of seven years, bears interest at 8.35 percent per annum and requires monthly payments of interest only prior to maturity. Proceeds from the new mortgage loan were also used to repay the two mortgage loans secured by Northridge Mall. The remaining net proceeds from the new loan were used to pay approximately $2,900,000 of tenant improvement and other capital costs incurred for Northridge and Southridge Malls.
IDS Life, on behalf of the Account, entered into a joint venture partnership called Monmouth Associates, which on October 27, 1988 (i) acquired certain land underlying a super regional shopping center in Eatontown, New Jersey known as Monmouth Mall, (ii) leased the land to the owner of the shopping center pursuant to a long-term ground lease, and (iii) executed a first leasehold mortgage loan to the owner of the shopping center secured by the leasehold real estate and the improvements thereon as more fully described below. The owner of the shopping center (the Borrower/Lessee) is a partnership whose partners are not affiliated with Monmouth Associates.
Summary of Real Estate Investment Made Through Monmouth Associates Eatontown, New Jersey - Monmouth Mall
Monmouth Associates entered into an agreement whereby the land underlying the mall is leased back to the Borrower/Lessee under a long-term ground lease. The long-term ground lease, which has a term of 75 years, provides for monthly base rent aggregating $1,170,000 annually with minimum payments of $650,000. The long-term ground lease also provides for contingent rent, payable quarterly out of the excess, if any, of substantially all of the gross receipts from the shopping center received by the Borrower/Lessee over certain base amounts, equal to the sum of (x) a specified annual amount of $520,000 per annum, increased until paid at the "applicable rate" of interest payable under the first leasehold mortgage loan described below (such amount as so increased herein called the "rent shortfall amount"), plus (y) 15 percent of the balance of such excess gross receipts remaining after deducting the aggregate amount paid at such time of the rent shortfall amount under the long-term ground lease and the "interest shortfall amount" under the first leasehold mortgage loan as described below.
In addition, Monmouth Associates made a first leasehold participating mortgage loan in the original principal amount of $128,920,000 to the Borrower/Lessee which is secured by the leasehold real estate and the improvements thereon. The current loan amount is $127,670,000. The loan has a term of 15 years, which may be extended from time to time at the option of Monmouth Associates for up to an additional 20 years. The loan currently provides for monthly payments of base interest at a base rate of approximately 5.00 percent per annum for each loan year. The first leasehold mortgage also provides for quarterly payments of contingent interest, payable out of the excess, if any, of substantially all of the gross receipts from the shopping center received by the Borrower/Lessee over certain base amounts, equal to the sum of (x) the difference between the amount of interest payable on the loan at the "applicable rate" and that payable at the base rate described above, increased until paid at the applicable rate (such amount as so increased herein called the "interest shortfall amount"), plus (y) 45 percent of the balance of such excess gross receipts remaining after deducting the aggregate amount paid at such time of the rent shortfall amount under the ground lease and the interest shortfall amount under the first leasehold mortgage loan. The "applicable rate" under the loan currently is 8.97 percent per annum for each loan year thereafter. In addition, upon a joint sale or refinancing of the land and improvements or at maturity of the leasehold mortgage loan, Monmouth Associates is entitled to receive certain participations in the proceeds from such sale or refinancing after payment of its investment in the land and/or repayment of the principal amount of the leasehold mortgage loan. For financial reporting purposes, Monmouth Associates discontinued the accrual of contingent interest on the leasehold mortgage loan in April 1992 as a result of uncertainty as to the collectibility of such contingent interest in light of the previous decrease in the estimated value of Monmouth Mall. In addition, for financial reporting purposes, no contingent rent was accrued under the ground lease for 1997, 1996 or 1995. In 1995, Monmouth Associates wrote off the receivable balance of $3,576,000 primarily related to the accrued interest resulting from the difference between the accrual and pay rates ("contingent interest") recorded prior to 1992, due to the uncertainty as to the collectibility of these amounts.
Monmouth Associates is obligated to make certain additional loans to the Borrower/Lessee under certain circumstances to finance the cost of 60 percent of tenant improvements or other ordinary capital expenditures. In addition, in May 1994, Monmouth Associates made a loan to finance the cost of a renovation of the shopping center, which commenced during the third quarter of 1994. The renovation consists of, among other things, the addition of a food court and cinema and the re-merchandising of approximately 300,000 square feet of gross leasable area. The renovation loan from Monmouth Associates bears interest at a fixed interest rate of 10.5 percent per annum. In addition, Monmouth Associates' participation in certain levels of sale or refinancing proceeds from the property will be increased until Monmouth Associates has received aggregate payments equal to an internal rate of return of 11 percent per annum on its investments in the land and/or the first leasehold mortgage loan. The maximum amount of the renovation loan is $29,100,000, and the cost of the renovation is currently estimated to be $29,100,000, including accrued and deferred interest of approximately $1,300,000. As of December 31, 1997, Monmouth Associates had funded approximately $25,905,000, using its cash reserves, cash flow and additional capital contributions made pro rata based upon the respective interests of the joint venture partners in Monmouth Associates. The renovation loan requires monthly payments of interest only until maturity when the entire principal amount and any accrued and unpaid interest will be due. The renovation loan will mature contemporaneously with the first leasehold mortgage loan in October 2003, subject to acceleration or extension of the loan by Monmouth Associates under certain circumstances.
The Corporation has elected to qualify as a real estate investment trust (REIT) pursuant to sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code). For each taxable year that the Corporation qualifies as a REIT, the Corporation in general will not be subject to federal corporate income tax or the District of Columbia corporate franchise tax on its regular taxable income and will not be taxed on long-term capital gain income to the extent its income is distributed as dividends. If the Corporation were to fail to qualify as a REIT, it would be taxed at rates applicable to a corporation on its taxable income, whether or not distributed.
Summary information for the Account of its investments in Unconsolidated Joint Ventures as of and for the years ended December 31, 1997 and 1996 is as follows:
As of and for As of and for the year ended the year ended Dec. 31, 1997 Dec. 31, 1996
The ten-year loan required periodic payments of interest only and bore basic interest at the rate of 8.84 percent per annum in the first loan year, 8.75 percent per annum during the second loan year, increasing 0.50 percent per annum in the fourth and 0.25 percent per annum in the seventh loan year to a maximum rate of 9.50 percent per annum, payable monthly in advance. The loan also provided for additional annual simple accrual of interest at the rate of 2.00 percent per annum payable upon prepayment or maturity. For financial reporting purposes, commencing in August of 1991, the Account suspended recognition of income related to the simple accrual interest receivable (deferred until maturity).The loan also provided for additional interest in an amount equal to a percentage of annual gross income from the underlying property (exclusive of tenant reimbursement of expenses) in excess of a base amount and, on sale or repayment of the loan, an amount equal to a percentage of the subsequent increase in the value of the underlying property in excess of a specified amount. Such amounts of additional interest payments made by the Borrower would have been used to offset, on a dollar-for-dollar basis, the amount of accrued interest payable. The loan was generally non-recourse to the Borrower and its partners.
The Account paid $15,222,278 for the apartment complex in cash at closing, excluding closing costs and prorations. The Account also paid to IDS Life and the Investment Adviser their respective portions of the acquisition fee amounting to $274,834. At the time of the acquisition it was anticipated that an additional amount of approximately $1,450,000 would be used by the Account to pay the cost of upgrading kitchens and bathrooms and certain other upgrades and capital improvements at the complex. The renovation project was subsequently increased to include replacing certain carpets in units as they were renovated and to increase the number of units that received certain upgrades. The renovation project was completed during 1992 at an aggregate cost of approximately $1,900,000. The Account paid IDS Life and the Investment Adviser their respective portions of the acquisition fee amounting to $18,000 in connection with the renovation project.
The apartment complex was being managed for a fee equal to 5.00 percent of the gross revenues from the property, plus reimbursement of certain direct expenses of the manager.
The Account has experienced substantial net contract terminations over the past several years, which have adversely affected its liquidity. In March 1994, the Account obtained a short-term revolving line of credit for up to $10 million from IDS Life to pay for contract surrenders and other obligations under the Contracts. On June 2, 1995, the line of credit was terminated and the Account repaid the outstanding balance under the line of credit with the proceeds from accumulation units purchased by IDS Life. As of December 31, 1997, IDS Life had cumulatively contributed $26,700,000 toward the purchase of accumulation units. IDS Life expects to continue to make additional payments into the Account for accumulation units in order to maintain the Account and its liquidity. As of December 31, 1997, IDS Life's portion of the Contract Owners' Equity was $25,877,976, which represents 91% of total Contract Owners' Equity.
Participation in Mortgage Loan on Real Estate and Interest Earned on Participation in Mortgage
(A) - Reconciliation of the carrying value of the participation in the mortgage loan:
Part 1 - Real Estate Owned at End of Year (A) Apartment Complex:
(B) Reserve for depreciation is not applicable as real estate owned is stated at estimated fair market value.
The Board of Directors of IDS Life Insurance Company and Contract Owners of IDS Life Account RE:
We have audited the accompanying combined financial statements of N/S Associates, Monmouth Associates and 1225 Investment Corporation, unconsolidated joint ventures of IDS Life Account RE (Note 1), as listed in the accompanying index. In connection with our audits of the combined financial statements, we also have audited the combined financial statement schedules as listed in the accompanying index. These combined financial statements and combined financial statement schedules are the responsibility of the Investment Adviser. Our responsibility is to express an opinion on these combined financial statements and combined financial statement schedules based on our audits.
In our opinion, the combined financial statements referred to above present fairly, in all material respects, the combined financial position of N/S Associates, Monmouth Associates and 1225 Investment Corporation, as of December 31, 1997 and 1996 and the results of their combined operations and combined cash flows for each of the years in the three year period ended December 31, 1997, in conformity with generally accepted accounting principles. Also, in our opinion, the related combined financial statement schedules, when considered in relation to the basic combined financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.
The preparation of the combined financial statements in conformity with generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The ventures have implemented Statement of Accounting Standards No. 95 "Statement of Cash Flows" which classifies receipts and payments according to whether they stem from operating, investing or financing activities. The ventures records amounts held in U.S. Government obligations at cost, which approximates market. For the purposes of these statements, the ventures' policy is to consider all such amounts held with original maturities of three months or less ($0 and $12,084,000 at December 31, 1997 and 1996, respectively) as cash equivalents with any remaining amounts reflected as short-term investments.
Maintenance and repair expenses are charged to operations as incurred. Significant costs of physical improvements are capitalized as part of investments in real estate.
A description of the venture agreements are contained in Note 4 of Notes to Financial Statements of the Account for the year ended December 31, 1997. Such note is incorporated herein by reference.
1998 . . . . . . . . . . $ -- 1999 . . . . . . . . . . -- 2000 . . . . . . . . . . -- 2001 . . . . . . . . . . 7,000,000 2002 . . . . . . . . . . 35,000,000 Thereafter. . . . . . . $ --
Minimum lease payments to be received in the future under the above operating lease agreements, are as follows: 1998 . . . . . . . . . . $20,406,724 1999 . . . . . . . . . . 18,824,571 2000 . . . . . . . . . . 17,086,220 2001 . . . . . . . . . . 14,761,601 2002 . . . . . . . . . . 13,683,666 Thereafter . . . . . . . 59,720,462 $144,483,244
N/S Associates has entered into a management agreement with Urban Retail Properties Company, (the "Retail Manager"). The Retail Manager is entitled to receive a fee of 3.75% of gross receipts from the operations of the Malls. Management fees earned by the Retail Manager are included in property operating expenses and aggregated approximately $1,057,000 and $1,132,000 for the periods ended December 31, 1997 and 1996, respectively.
In February 1998, the Investment Adviser authorized and paid a cash distribution to the partners aggregating $4,000,000. Each partner received its proportionate share based on its respective ownership percentage.
In February 1998, the Investment Advisor authorized and paid a cash distribution to the partners aggregating $2,500,000. Each partner received its proportionate share based on its respective ownership percentage.
Part 1 - Real Estate Owned at End of Year (C)
Part 2 - Rental Income Rents due and accrued at end of period Retail Properties: Northridge Mall, Milwaukee, WI $ 74,000 Southridge Mall, Greendale, WI $ 185,000 Office Building: 1225 Connecticut Ave., Washington, D.C. $ --