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below with their yield and discount to net asset value
(NAV):
Type of Discount
Partnership Investment Yield to NAV
American Insured Mortgage 86 M 10.6% 35%
American Insured Mortgage 88 M 9.1% 30%
Hutton/ConAm Realty Investors 4E 8.9% NA3
IDS/Balcor Income Properties E 11.1% 51%
Krupp Insured Plus M 10.9% 29%
Krupp Insured Plus II M 10.1% 13%
Shearson Lehman Sr. Income FundE 11.5% NA3
3 Not available.
Four of the above partnerships, those with an “M” in the
column entitled Type of Investment, did not own real
properties but invested in portfolios of federally insured
mortgages. Mr. Siwicki believed that they were “less risky
than their equity-based counterparts” and “would be
expected to have lower discounts to NAV compared to equity-
based real estate partnerships.” He selected the IDS
Balcor Income Properties, a partnership that owned only two
apartment buildings, as the limited partnership that was
most comparable to Hill House that owned a single property.
The data for IDS Balcor reported a yield of approximately
11 percent and a net asset value discount of 51 percent.
In identifying an appropriate income stream,
Mr. Siwicki noted that there was a "disconnect between the
performance of the [Hill House] partnership and the amount
of distributions being made". For that reason, he chose as
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