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
June 30, 1995
(Quarter Ended)
2-71045
(Commission File Number)
Winthrop Partners 81 Limited Partnership
(Exact Name of Registrant as specified in its charter)
Massachusetts
(State or other jurisdiction of incorporation or organization)
04-2720480
(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
STATEMENTS OF INCOME
<TABLE>
For the three months ended Three Months Ended Six Months Ended
June 30, 1995 and 1994 June 30, June 30,
(Unaudited) (Note 1) 1995 1994 1995 1994
<S> <C> <C> <C> <C>
Income:
Rental income from real estate leases
accounted for under the operating method $ 68,992 $ 100,063 $ 143,227 $ 331,906
Interest on short-term investments 30,683 2,698 57,285 3,869
Interest income on real estate leases
accounted for under the financing method 5,397 6,072 10,968 12,303
105,072 108,833 211,480 348,078
Expenses:
Depreciation and amortization 12,469 55,389 39,244 110,778
Management fees 1,235 1,927 2,549 5,605
General and administrative 17,384 31,148 24,636 57,393
31,088 88,464 66,429 173,776
Operating income 73,984 20,369 145,051 174,302
Gain on sale of property - - 11,173 -
Net income $ 73,984 $ 20,369 $ 156,224 $ 174,302
Net income allocated to General Partners $ 5,919 $ 4,431 $ 12,498 $ 13,944
Net income allocated to Limited Partners $ 68,065 $ 15,938 $ 143,726 $ 160,358
Net income per Unit of Limited Partnership
Interest $ 2.71 $ 0.63 $ 5.72 $ 6.38
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BALANCE SHEETS
<TABLE>
June 30, 1995 and December 31, 1994 June 30, 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
$783,277 and $3,486,376 as of June 30,
1995 and December 31, 1994, respectively $ 1,475,968 $ 4,386,653
Accounted for under the financing method 234,105 252,598
1,710,073 4,639,251
Other Assets:
Cash and cash equivalents, at cost, which
approximates market value 268,408 179,327
Other 1,440 2,227
$ 1,979,921 $ 4,820,805
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 30,831 $ 27,653
Distributions payable to Partners 109,170 25,235
140,001 52,888
Partners' Capital:
Limited Partners
Units of Limited Partnership Interest, $500 stated value per Unit;
authorized - 50,000 Units; issued and outstanding -
25,109 Units 2,147,158 5,087,653
General Partners (307,238) (319,736)
1,839,920 4,767,919
$ 1,979,921 $ 4,820,805
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CASH FLOWS
<TABLE>
For the three months ended Six Months Six Months
June 30, 1995 and 1994 Ended Ended
(Unaudited) (Note 1) June 30, 1995 June 30, 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $ 156,224 $ 174,302
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 39,244 110,778
Minimum lease payments received, net of
interest income earned, on leases accounted
for under the financing method 18,494 14,456
Gain on property sold (11,173) -
Changes in assets and liabilities:
Increase in accounts payable
and accrued expenses 3,178 18,461
Increase in distribution payable
to Partners 83,935 106,045
Decrease in other assets 787 6,221
Net cash provided by operating activities 290,689 218,173
Cash flows from investing activities:
Net proceeds from sale of properties 2,882,613 -
Net cash provided by (used in) investing
activities 2,882,613 -
Cash flows from financing activities:
Cash distributions paid or accrued to
Partners 3,084,221 241,403
Net increase in cash and cash equivalents 89,081 (23,230)
Cash and cash equivalents, beginning of period 179,327 172,080
Cash and cash equivalents, end of period $ 268,408 $ 148,850
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
<TABLE>
For the six months ended
June 30, 1995 and 1994 Units of
(Unaudited) (Note 1) Limited General Limited
Partnership Partners' Partners' Total
Interest Capital Capital Capital
<S> <C> <C> <C> <C>
Balance, December 31, 1994 25,109 $ (319,736) $ 5,087,653 $ 4,767,917
Cash distributions - 3,084,221 3,084,221
Net income 12,498 143,726 156,224
Balance, June 30, 1995 25,109 $ (307,238) $ 2,147,158 $ 1,839,920
Balance, December 31, 1993 25,109 $ (330,889) $ 5,251,176 $ 4,920,287
Cash distributions paid or accrued - (241,403) (241,403)
Net income 13,944 160,358 174,302
Balance, June 30, 1994 25,109 $ (316,945) $ 5,170,131 $ 4,853,186
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 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 the
Frank's Nursery Store's real property lease 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.
<PAGE>
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Cash is required to pay management fees and general and administrative
expenses. 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.
Rental Income received in the Second Quarter 1995 was reduced from that
received in the Second Quarter 1994 primarily due to the vacancy of the Seagate
property effective May 1, 1994. The interest income earned in the Second Quarter
1995 was increased from that earned in the Second Quarter 1994 primarily due to
the interest earned on proceeds from the January 1995 sale of the Seagate
property. General and administrative expense in the Second Quarter 1995 was
reduced from that in the Second Quarter 1994 primarily due to the sale of the
vacant Seagate property; during May and June 1994 the Partnership was
responsible for expenses including taxes, security and utilities.
The status of the Partnership's properties, Frank's Nursery and GTE North, is
unchanged from that provided in the 1994 Annual and 1995 First Quarter Reports.
The Partnership's results of operations in future years may differ from those
experienced during the quarter ended June 30, 1995, since the Partnership will
receive step rents from GTE North and may receive percentage rent, from Frank's
Nursery. The Partnership may also sell either 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 81
Limited Partnership
(Registrant)
BY: One Winthrop Properties, Inc.
Managing General Partner
BY: /s/ Carol J. C. Mills
Carol J. C. Mills
Vice President and chief financial officer
BY: /s/ Richard J. McCready
Richard J. McCready
Vice President
DATED: August 14, 1995
<PAGE>
SUPPLEMENTARY INFORMATION
REQUIRED PURSUANT TO SECTION 9.4
OF THE PARTNERSHIP AGREEMENT
1. Statement of Cash Available for Distribution:
June 30, 1995
(Unaudited)
<TABLE>
<S> <C>
Net income $ 73,984
Add: Depreciation and amortization
charges to income not
affecting cash available
for distribution 12,469
Minimum lease payments
received, net of interest
income earned, on leases
accounted for under the
financing method 7,968
Reserve 69
Less: Prepaid Rent (834)
Cash Available for Distribution $ 93,656
Distributions allocated to General
Partners $ 0
Distributions allocated to Limited
Partners $ 93,656
</TABLE>
2. Fees and other compensation paid or accrued by the Partnership to the
General Partners, or their affiliates, during the three months ended June
30, 1995:
June 30, 1995
(Unaudited)
<TABLE>
<S> <C> <C>
Entity Receiving Form of
Compensation Compensation Amount
Winthrop Property Man-
Management agement Fees $ 1,235
General Partners Interest in Cash
Available for
Distribution $ 0
WFC Realty Interest in Cash
Co. Inc. Available for
Distribution $ 746
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
Report.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
six month period ending June 30, 1995 and is
qualified in its entirety by reference to such financial
statements
</LEGEND>
<CIK> 0000351147
<NAME> Winthrop Partners 81 Limi
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1.00000
<CASH> 268,408
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,440
<PP&E> 2,493,350
<DEPRECIATION> 783,277
<TOTAL-ASSETS> 1,979,921
<CURRENT-LIABILITIES> 140,001
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 1,839,920
<TOTAL-LIABILITY-AND-EQUITY> 1,979,921
<SALES> 0
<TOTAL-REVENUES> 222,653
<CGS> 0
<TOTAL-COSTS> 27,185
<OTHER-EXPENSES> 39,244
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 156,224
<INCOME-TAX> 0
<INCOME-CONTINUING> 156,224
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 156,224
<EPS-PRIMARY> 5.720
<EPS-DILUTED> 0.000
</TABLE>
