SECURITIES AND EXCHANGE
COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
March 31, 1995
(Quarter Ended)
0-9224
(Commission File Number)
Winthrop Partners 79 Limited Partnership
(Exact Name of Registrant as specified in its charter)
Massachusetts
(State or other jurisdiction of incorporation or organization)
04-2654152
(I.R.S. Employer Identification Number)
One International Place, Boston, Massachusetts
(Address of principal executive offices)
02110
(Zip Code)
(617) 330-8600
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the proceeding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
<PAGE>
PART 1 - FINANCIAL INFORMATION
<TABLE>
STATEMENTS OF INCOME
<S> <C> <C>
For the three months ended Three Months Ended
March 31, 1995 and 1994 March 31,
(Unaudited) (Note 1) 1995 1994
Income:
Rental income from real estate leases accounted
for under the operating method.............. $ 276,739 $ 270,559
Interest on short-term investments.............. 2,253 1,138
Interest income on real estate leases accounted
for under the financing method.............. 102,355 107,988
......................................... 381,347 379,685
Expenses:
Interest...................................... 76,846 88,868
Depreciation and amortization................. 37,418 47,387
Management fees................................. 6,259 6,030
General and administrative...................... 19,831 32,844
......................................... 140,354 175,129
Net income...................................... $ 240,993 $ 204,556
Net income allocated to General Partners........ $ 19,279 $ 16,364
Net income allocated to Limited Partners........ $ 221,714 $ 188,192
Net income per Unit of Limited Partnership
Interest...................................... $ 22.16 $ 18.81
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
BALANCE SHEETS
March 31, 1995 and December 31, 1994 March 31, 1995 December 31, 1994
(Note 1) (Unaudited) (Audited)
ASSETS
<S> <C> <C>
Real Estate Leased to Others:
Accounted for under the operating method, at
cost, net of accumulated depreciation of
$3,103,778 and $3,068,851 as of March 31,
1995 and December 31, 1994, respectively $ 5,469,444 $ 5,504,371
Accounted for under the financing method 3,263,556 3,322,188
8,733,000 8,826,559
Other Assets:
Cash and cash equivalents, at cost,
which approximates market value 272,204 193,224
Other, net of accumulated amortization of
$49,391 and $46,900 as of March 31, 1995
and December 31, 1994, respectively 205,874 214,954
$ 9,211,078 $ 9,234,737
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage notes payable $ 3,064,426 $ 3,124,047
Accounts payable and accrued expenses 34,980 28,956
Distributions payable to Partners 264,294 208,566
3,363,700 3,361,569
Partners' Capital:
Limited Partners
Units of Limited Partnership Interest,
$1,000 stated value per Unit; authorized 6,088,991 6,113,106
issued and outstanding - 10,005 Units (241,613) (239,938)
General Partners 5,847,378 5,873,168
$ 9,211,078 $ 9,234,737
</TABLE>
The accompanying notes are an integral part of these financial statements
<PAGE>
<TABLE>
STATEMENTS OF CASH FLOWS
For the three months ended Three Months Three Months
March 31, 1995 and 1994 Ended Ended
(Unaudited) (Note 1) March 31, 1995 March 31, 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $ 240,993 $ 204,556
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 37,418 47,387
Minimum lease payments received, net of
interest income earned, on leases
accounted for under the financing method 54,687 49,054
Changes in assets and liabilities:
Increase (decrease) in accounts payable
and accrued expenses 9,906 (76,984)
Increase in distribution payable to Partners 76,912 16,305
(Increase) decrease in other assets (17,841) (33,017)
Net cash provided by operating activities 402,075 207,301
Cash flows from financing activities:
Principal payments on mortgage notes (59,621) (54,015)
Cash distributions paid or accured to Partners (263,474) (186,536)
Net cash used by financing activities (323,095) (240,551)
Net increase in cash and cash equivalents 78,980 (33,250)
Cash and cash equivalents, beginning of period 193,224 300,817
Cash and cash equivalents, end of period $ 272,204 $ 267,567
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
For the three months ended Units of
March 31, 1995 and 1994 Limited General Limited
(Unaudited) (Note 1) Partnership Partners' Partners' Total
Interest Capital Capital Capital
<S> <C> <C> <C> <C>
Balance, December 31, 1994 10,005 $(239,938) $6,113,106 $5,873,168
Cash distributions paid or accrued (21,343) (245,440) (266,783)
Net income 19,279 221,714 240,993
Balance, March 31, 1995 10,005 $(242,002) $6,089,380 $5,847,378
Balance, December 31, 1993 10,005 $(226,051) $6,268,454 $6,042,403
Cash distributions paid or accrued (14,950) (171,586) (186,536)
Net income 16,364 188,192 204,556
Balance, March 31, 1994 10,005 $(224,637) $6,285,060 $6,060,423
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
(Unaudited)
1. Accounting and Financial Reporting Policies
The condensed financial statements included herein have been prepared by the
Registrant, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. The Registrant's accounting and financial
reporting policies are in conformity with generally accepted accounting
principles and include adjustments in interim periods considered necessary for a
fair presentation of the results of operations. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. It is suggested that these condensed
financial statements be read in conjunction with the financial statements and
the notes thereto included in the Registrant's latest annual report on Form
10-K.
The accompanying financial statements reflect the Partnership's results of
operations for an interim period and are not necessarily indicative of the
results of operations for the year ending December 31, 1995.
2. Taxable Income
The Partnership's taxable income for 1995 is expected to differ from
the net income for financial reporting purposes primarily due to the accounting
for certain real property leases under the financing method for financial
reporting purposes and the operating method for tax purposes and from the
difference between depreciation for financial reporting purposes and
depreciation for tax purposes calculated using the accelerated cost recovery
system.
3. Statements of Cash Flows
The following details supplemental cash flow information:
1995 1994
---- ----
Cash paid for interest $76,388 $88,991
<PAGE>
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Cash is required to pay the Partnership's management fees, operating, general
and administrative expenses and principal and interest on mortgage indebtedness.
The Partnership's rental and interest income is sufficient and is expected to be
sufficient in future years to pay all of these expenses as well as to provide
for cash distributions to the Partners from operations.
Rental income received by the Partnership in the First Quarter 1995 of
approximately $381,000 is approximately the same as that received in the First
Quarter of 1994.
All rental payments due to the Partnership from its ten leased properties are
current through the First Quarter.
The Partnership's results of operations in future years may differ from those
experienced during the quarter ended March 31, 1995, since the Partnership will
receive step rents and may receive percentage rent, as applicable, from those
tenants who operate retail stores in the Partnership's properties under net
leases. The Partnership may also sell some of its properties.
PART II - OTHER INFORMATION
All items are inapplicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Winthrop Partners 79 Limited Partnership
(Registrant)
BY: One Winthrop Properties, Inc.
Managing General Partner
BY: /s/ Jonathan W. Wexler
Jonathan W. Wexler
Chief Financial Officer
BY: /s/ Richard J. McCready
Richard J. McCready
Vice President
DATED: May 30, 1995
<PAGE>
SUPPLEMENTARY INFORMATION
REQUIRED PURSUANT TO SECTION 9.4
OF THE PARTNERSHIP AGREEMENT
1. Statement of Cash Available for Distribution:
March 31, 1995
(Unaudited)
Net income...........................$240,993
Add: Depreciation and amortiza-
tion charges to income not
affecting cash available for
distribution.................. 37,418
Minimum lease payments
received, net of interest
income earned, on leases
accounted for under the
financing method.............. 54,687
Reserves withdrawal........... 25
Less: Mortgage principal payments... (59,621)
Prepaid Rent.................. (10,003)
Cash Available for Distribution......$263,499
Distributions allocated to General
Partners............................$ 21,078
Distributions allocated to Limited
Partners............................$242,421
<PAGE>
2. Fees and other compensation paid or accrued by the Partnership to the
General Partners, or their affiliates, during the three months ended March
31, 1995:
March 31, 1995
(Unaudited)
Entity Receiving Form of
Compensation Compensation Amount
Winthrop Property Man-
Management agement Fees $ 6,259
General Partners Interest in Cash
Available for
Distribution $ 21,078
WFC Realty Interest in Cash
Co. Inc. Available for
(Initial Limited Distribution $ 121
Partner)
All other information required pursuant to Section 9.4 of the Partnership
Agreement is set forth in the attached Report on Form 10-Q or Partnership
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
three month period ending March 31, 1995 and is
qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000277886
<NAME> Winthrop Partners 79 Limited Partnership
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1.00000
<CASH> 272,204
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 205,874
<PP&E> 11,836,778
<DEPRECIATION> 3,103,778
<TOTAL-ASSETS> 9,211,078
<CURRENT-LIABILITIES> 299,274
<BONDS> 3,064,426
<COMMON> 0
0
0
<OTHER-SE> 5,847,378
<TOTAL-LIABILITY-AND-EQUITY> 9,211,078
<SALES> 0
<TOTAL-REVENUES> 381,347
<CGS> 0
<TOTAL-COSTS> 26,090
<OTHER-EXPENSES> 37,418
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 76,846
<INCOME-PRETAX> 240,993
<INCOME-TAX> 0
<INCOME-CONTINUING> 240,993
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 240,993
<EPS-PRIMARY> 22.160
<EPS-DILUTED> 0.000
</TABLE>
