A NOTE FROM THE GENERAL PARTNER
Dear Unit Holders:
We are pleased to report that based upon the Partnership's lower mortgage debt service payments and strong first quarter results, the General Partner has elected to again increase the quarterly distribution. The distribution amount for the first quarter of 1999 is $594,610, or $.18 per unit held. The new amount represents a 2.9% increase from the $578,093 distributed in February 1999 for the fourth quarter of 1998.
As shown in the chart below and as indicated in our April 15, 1999 letter attached to the 1998 Annual Report, the aggregate value of the Partnership's nine properties is $79,600,000. This is an increase of 42.9% from the original cash purchase price of $55,688,754. This value is based upon the March 1999 appraisals conducted by Cushman and Wakefield. As we reported in our letter, the estimated net asset value of each unit, as of March 1999, increased to $14.32. This is an increase of 5.5% over the net asset value of $13.57 per unit reported in April 1998. Of course, the actual appreciation of the communities cannot be known until they are sold. Nevertheless, the annual appraisals do provide an indication of your investment's potential value. The General Partner does not anticipate a sale of any of the Partnership's nine communities until such time that the net asset value is greater than the adjusted capital contribution of $17.11 per unit. Please remember that the adjusted capital contribution is lower than the original capital contribution of $20.00 per unit, as a result of the partial return of capital from the Partnership's 1993 financing.
As always, please feel free to write to us or call us at 1-800-541-7767, if there is anything we can do to help you with your investment.
Sincerely,
Genesis Associates - The General Partner
UNIPROP, Inc. - its managing general partner
Paul M. Zlotoff, President