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
September 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 and nine months ended Three Months Ended Nine Months Ended
September 30, 1995 and 1994 September 30, September 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 $ 71,835 $ 68,998 $ 214,612 $ 400,904
Interest on short-term investments 2,470 1,643 59,755 5,511
Interest income on real estate leases
accounted for under the financing method . 5,218 5,908 16,186 18,211
79,073 76,549 290,553 424,626
Expenses:
Depreciation and amortization 12,468 55,390 51,712 166,168
Management fees 1,271 1,520 3,820 7,124
General and administrative 3,513 21,652 28,149 79,007
17,252 78,562 83,681 252,299
Operating income 61,821 (2,013) 206,872 172,327
Gain (loss) on sale of property -- -- 11,173 --
Net income $ 61,821 $ (2,013) $ 218,045 $ 172,327
Net income allocated to General Partners $ 4,946 $ (161) $ 17,444 $ 13,786
Net income allocated to Limited Partners $ 56,875 $ (1,852) $ 200,601 $ 158,541
Net income per Unit of Limited Partnership
Interest $ 2.27 $ (0.07) $ 7.99 $ 6.31
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BALANCE SHEETS
<TABLE>
September 30, 1995 and December 31, 1994 September 30, 1995 December 31, 1994
(Note 1) (Unaudited) (Audited)
<S> <C> <C>
ASSETS
Real Estate Leased to Others:
Accounted for under the operating method, at
cost, net of accumulated depreciation of
$795,745 and $3,486,376 as of
September 30, 1995 and December 31,
1994, respectively $ 1,463,500 $ 4,386,653
Accounted for under the financing method 225,958 252,598
1,689,458 4,639,251
Other Assets:
Cash and cash equivalents, at cost, which
approximates market value 223,898 179,327
Other 1,440 2,227
$ 1,914,796 $ 4,820,805
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 12,102 $ 27,653
Distributions payable to Partners 82,358 25,235
94,460 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 2,122,628 5,087,653
General Partners (302,292) (319,736)
1,820,336 4,767,919
$ 1,914,796 $ 4,820,805
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF CASH FLOWS
For the nine months ended Nine Months Nine Months
September 30, 1995 and 1994 Ended Ended
(Unaudited) (Note 1) September 30, 1995 September 30, 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $ 218,045 $ 172,327
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 51,712 166,168
Minimum lease payments received, net of
interest income earned, on leases accounted
for under the financing method 26,641 21,884
Net (gain) loss from sale of property (11,173) --
Changes in assets and liabilities:
Increase (decrease) in accounts payable
and accrued expenses (15,551) 8,328
Increase (decrease) in distribution payable
to Partners 57,123 (107,012)
Increase in other assets 787 6,079
Net cash provided by operating activities 327,584 267,774
Cash flows from investing activities:
Proceeds from sale of property 2,882,613 --
Net cash provided by investing activities 2,882,613 --
Cash flows from financing activities:
Cash distributions paid or accrued to Partners (3,165,626) (266,483)
Net increase in cash and cash equivalents 44,571 1,291
Cash and cash equivalents, beginning of period 179,327 172,080
Cash and cash equivalents, end of period $ 223,898 $173,371
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Units of
For the nine months ended Limited General Limited
September 30, 1995 and 1994 Partnership Partners' Partners' Total
(Unaudited) (Note 1) 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 paid or accrued -- (3,165,626) (3,165,626)
Net income 17,444 200,601 218,048
Balance, September 30, 1995 25,109 $ (302,292) $ 2,122,628 $ 1,820,336
Balance, December 31, 1993 25,109 $ (330,889) $ 5,251,176 $ 4,920,287
Cash distributions paid or accrued -- (266,483) (266,483)
Net income 13,786 158,541 172,327
Balance, September 30, 1994 25,109 $ (317,103) $ 5,143,234 $ 4,826,131
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
September 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 GTE real property lease
under 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. The Partnership's reserve
balance is approximately $232,000.
General and administrative expense in the Third Quarter 1995 was reduced from
that in the Third 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 for the Seagate Property. Depreciation
and amortization in the Third Quarter 1995 was reduced from that in the Third
Quarter 1994 primarily due to the sale of the Seagate property.
The status of the Partnership's properties, Frank's Nursery and GTE North, is
unchanged from that provided in the 1994 Annual and 1995 Second Quarter Reports.
The Partnership's results of operations in future years may differ from those
experienced during the quarter ended September 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/ Anthony R. Page
Anthony R. Page
Chief Financial Officer
BY: /s/ Richard J. McCready
Richard J. McCready
Chief Operating Officer
DATED: November 14, 1995
<PAGE>
SUPPLEMENTARY INFORMATION
REQUIRED PURSUANT TO SECTION 9.4
OF THE PARTNERSHIP AGREEMENT
<TABLE>
1. Statement of Cash Available for Distribution:
September 30, 1995
(Unaudited)
<S> <C>
Net income $ 61,821
Add:Depreciation and amortization
charges to income not affecting
cash available for distribution 12,468
Minimum lease payments
received, net of interest
income earned,on leases
accounted for under the
financing method 8,147
Prepaid Rent 0
Withdrawal from Reserves 173
Cash Available for Distribution 82,609
Distributions allocated to General
Partners............................ $ 0
Distributions allocated to Limited
Partners............................ $ 82,609
</TABLE>
<TABLE>
2. Fees and other compensation paid or accrued by the Partnership to the
General Partners, or their affiliates, during the three months ended
September 30, 1995:
September 30, 1995
(Unaudited)
<S> <C>
Entity Receiving Form of
Compensation Compensation Amount
Winthrop Property Man-
Management agement Fees $ 1,271
General Partners Interest in Cash
Available for
Distribution $ 0
WFC Realty Interest in Cash
Co. Inc. Available for
Distribution $ 658
(200 units)
</TABLE>
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.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information
extracted from unaudited financial statements for the
nine month period ending September 30, 1995 and is
qualified in its entirety by reference to such financial
statements
</LEGEND>
<CIK> 0000351147
<NAME> Winthrop Partners 81 Limited Partnership
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1.00000
<CASH> 223,898
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,440
<PP&E> 2,485,203
<DEPRECIATION> 795,745
<TOTAL-ASSETS> 1,914,796
<CURRENT-LIABILITIES> 94,460
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 1,820,336
<TOTAL-LIABILITY-AND-EQUITY> 1,914,796
<SALES> 0
<TOTAL-REVENUES> 301,726
<CGS> 0
<TOTAL-COSTS> 31,969
<OTHER-EXPENSES> 51,712
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 218,045
<INCOME-TAX> 0
<INCOME-CONTINUING> 218,045
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 218,045
<EPS-PRIMARY> 7.99
<EPS-DILUTED> 0.00
</TABLE>
