3
UNITED
STATES SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
For the period ended January 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
________ to ________.
Commission File Number: 0-13260
DEAN WITTER REALTY INCOME PARTNERSHIP I,
L.P.
(Exact name of registrant as specified in governing
instrument)
Delaware 13-3174553
(State of organization)(IRS Employer Identification
No.)
2 World Trade Center, New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area
code: (212) 392-1054
Former name, former address and former fiscal year,
if changed since last report: not applicable
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 preceding 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
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
CONSOLIDATED BALANCE SHEETS
January
31,
October 31,
1999
1998 ASSETS
Cash and cash equivalents $
861,612 $
1,074,634
Real estate:
Land
2,312,300
2,312,300
Buildings and improvements
7,389,754
7,230,844
9,702,054 9,543,144
Accumulated depreciation
(2,911,450)
(2,866,051)
6,790,604 6,677,093
Other assets
73,368
29,496
$
7,725,584 $ 7,781,223
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and other liabilities $
146,775 $
293,750
Partners' capital (deficiency):
General partners
(4,431,289)
(4,440,423)
Limited partners ($1,000 per Unit, 92,780 Units
issued) 12,010,098 11,927,896
Total partners' capital
7,578,809
7,487,473
$
7,725,584 $ 7,781,223
See accompanying notes to consolidated financial
statements. DEAN WITTER REALTY INCOME
PARTNERSHIP I, L.P.
CONSOLIDATED INCOME STATEMENTS
Three months ended January 31, 1999 and 1998
1999 1998
Revenues:
Rental $
232,388 $
Gains on sales of real estate - 784,273
Interest and other
14,121
9,295,923
94,988
246,50
9 10,175,18 4
Expenses:
Property operating
77,439
Depreciation and amortization
47,210 374,715
General and administrative
30,524
70,269
108,700
155,173
553,684
Net income $
91,336 $
9,621,500
Net income allocated to:
Limited Partners $
82,202 $
General Partners
9,134 9,588,942
32,558
$
91,336 $
9,621,500
Net income per Unit of limited $
.89 $
partnership interest 103.35
See accompanying notes to consolidated financial
statements. DEAN WITTER REALTY INCOME
PARTNERSHIP I, L.P.
CONSOLIDATED STATEMENT OF PARTNERS'
CAPITAL
Three months ended January 31, 1999
Limited
General
Partners Partners
Total
Partners' capital (deficiency)
at November 1, 1998 $ 11,927,896
$(4,440,423)
$ 7,487,473
Net income 82,202
9,134 91,336
Partners' capital (deficiency)
at January 31, 1999
$ 12,010,098 $(4,431,289)
$ 7,578,809
See accompanying notes to consolidated financial
statements. DEAN WITTER REALTY INCOME
PARTNERSHIP I, L.P.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
Three months ended January 31,
1999 and 1998
1999
1998
Cash flows from operating activities:
Net income
$ $
Adjustments to reconcile net income to 91,336 9,621,500
net cash (used in)
provided by operating activities:
Depreciation and amortization
Gains on sales of real estate 47,210 70,269
(Increase) decrease in other assets -
Decrease in accounts payable and (9,295,923
other liabilities: (45,683) )
(146,975)
70,251
(280,491)
Net cash (used in) provided by
operating activities (54,112) 185,606
Cash flows from investing activities:
Additions to real estate
Proceeds from sales of real estate (158,910)
(34,037)
-
26,089,585
Net cash (used in) provided by
investing activities (158,910)
26,055,548
Cash flows used in financing activities:
Distributions -
(
3
1
,
3
9
8
,
4
0
2
)
Decrease in cash and cash equivalents
(213,022)
(5,157,248 Cash and cash equivalents at beginning of )
period
1,074,63
4 5,974,627
Cash and cash equivalents at end of $ $
period 861,612 817,379
See accompanying notes to consolidated financial
statements.
DEAN WITTER REALTY INCOME PARTNERSHIP I,
L.P.
Notes to Consolidated Financial Statements
1. The Partnership
Dean Witter Realty Income Partnership I,
L.P. (the "Partnership") is a limited
partnership organized under the laws of
the State of Delaware in 1983. The
Partnership's
fiscal year ends on October 31.
The Partnership's records are maintained on
the accrual basis of accounting for
financial reporting and tax purposes.
Net income per Unit of limited partnership
interest amounts
are calculated by dividing net income
allocated to the Limited Partners, in
accordance with the Partnership
Agreement, by the weighted average number
of Units outstanding.
In the opinion of management, the
accompanying financial
statements, which have not been audited,
include all
adjustments necessary to present fairly the
results for the interim period. Except for the
1998 gains on sales of real estate, such adjustments
consist only of normal recurring
accruals.
These financial statements should be read in
conjunction with the annual financial
statements and notes thereto included in
the Partnership's annual report on Form 10-K
filed with the Securities and Exchange
Commission for the year ended October 31,
1998. Operating results of interim periods may not be
indicative of the operating results for
the entire year.
2. Related Party Transactions
An affiliate of the Managing General
Partner provided property management services
for the North Lake Plaza property in
fiscal 1999, and the North Lake Plaza, Carmel
Park and Westwood 10 (both sold December 1997)
properties in fiscal 1998. The Partnership paid
the affiliate management fees of approximately
$9,000 and $23,000 for the three
months ended January 31, 1999 and 1998,
respectively. These amounts are included in
property operating expenses.
DEAN WITTER REALTY INCOME PARTNERSHIP I,
L.P.
Notes to Consolidated Financial Statements
Another affiliate of the Managing General
Partner performs
administrative functions, processes
certain investor transactions and prepares
tax information for the
Partnership. For the three months ended January
31, 1999 and 1998, the Partnership incurred
approximately $34,000 and $48,000,
respectively, for these services. These amounts
are included in general and administrative
expenses.
As of January 31, 1999, the affiliates were
owed a total of approximately $15,000 for these
services.
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Liquidity and Capital Resources
The Partnership raised $92,780,000 in a
public offering which was terminated in 1984.
The Partnership has no plans to raise additional
capital.
The Partnership purchased six properties
and made one investment in the partnership
which owned the Century Square property on an
all-cash basis. The Partnership's acquisition
program has been completed. No additional
investments are planned.
As a result of the 1998 property sales,
Partnership cash flow from operations decreased
during the three-month period ended January 31,
1999 as compared to 1998.
The Managing General Partner is currently
marketing for sale the North Lake Plaza
property, with the objective of completing
the property sale in fiscal 1999. However,
there can be no assurance that this property
will be sold.
Currently, the vacancy rate in the retail
market in Altamonte Springs, Florida, the
location of the North Lake Plaza Shopping
Center, is approximately 10%, and market
rental rates continue to be stable. However,
developers continue to break ground on new
retail projects throughout the Central Florida
region, and many real estate investors consider
sub-markets such as Altamonte Springs to
be overbuilt. During the three months ended
January 31, 1999, occupancy at the property
increased slightly to 85%. Development of
nearby office projects and the scheduled
expansion of North Lake Boulevard (which
borders the
shopping center) are anticipated to increase
traffic at the property. The lease for Home
Depot (for approximately 50% of the
property's space) is scheduled to expire in
2003. Home Depot continues to sub-lease its
space to Burlington Coat Factory but remains
obligated to pay rent under the lease. The
lease of Marshalls Inc., (for approximately 21%
of the space) is schedule to expire in 2002.
DEAN WITTER REALTY INCOME PARTNERSHIP I,
L.P.
During the three months ended January 31, 1999,
the North Lake Plaza property generated
positive cash flow from operations, and it
is anticipated that the property will continue
to do so during the period the
Partnership continues to own it.
During the three months ended January 31,
1999, the
Partnership's capital expenditures exceeded its
cash flow from operations. This deficiency was
funded from Partnership cash reserves.
The capital expenditures incurred,
which totaled approximately $175,000, were
for tenant improvements and leasing
commissions at the North Lake Plaza property.
The Partnership did not pay any cash
distributions during the three months ended
January 31, 1999. Generally, future cash
distributions will be paid from proceeds
received from the sale of the North Lake Plaza
property and cash reserves.
As of January 31, 1999, the Partnership has
commitments to fund approximately $40,000 of
capital expenditures at the North Lake Plaza
property.
The Partnership believes that its cash reserves
are adequate for its needs in fiscal 1999.
Except as discussed above and in the
consolidated financial
statements, the Managing General Partner is not
aware of any trends or events, commitments or
uncertainties that may have a material impact on
liquidity.
Operations
Fluctuations in the Partnership's operating
results for the three-month period ended
January 31, 1999 as compared to 1998 were
primarily attributable to the following:
During the three months ended January 31,
1999, rental income, property operating
expenses, and general and administrative
expenses decreased as a result of the 1998
sales of the Westwood 10, Carmel Park, and
Harborgate properties.
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
The gains on sales of real estate in fiscal
1998 resulted from the sales of the Carmel
Park and Westwood 10
properties.
Interest and other income decreased in fiscal
1999 primarily because the Partnership earned
interest in 1998 on the proceeds from the
sales of properties until such proceeds were
distributed to Limited Partners.
Depreciation and amortization expenses decreased
in fiscal 1999 due to the sale of the
Harborgate property in July 1998.
Inflation
Inflation has been consistently low during
the periods presented in the financial
statements and, as a result, has not had a
significant effect on the operations of the
Partnership or its properties.
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
PART II - OTHER INFORMATION
Item 6. Exhibits & Reports on Form 8-K
(a) Exhibits.
An exhibit index has been filed as
part of this Report on Page E1.
(b) Reports on Form 8-K
None
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.
DEAN WITTER REALTY
INCOME PARTNERSHIP I, L.P.
By: Dean Witter Realty
Income Properties I Inc.
Managing General
Partner
Date: March 16, 1999 By: /s/E. Davisson
Hardman, Jr.
E. Davisson Hardman,
Jr. President
Date: March 16, 1999 By: /s/Charles M.
Charrow
Charles M. Charrow
Controller
(Principal
Financial and Accounting
Officer)
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
Quarter Ended January 31, 1999
Exhibit Index
Exhibit No. Description
27 Financial Data Schedule
E1
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Registrant is a limited partnership which invests in real estate, and real
estate joint ventures. In accordance with industry practice, its balance
sheet is unclassified. For full information, refer to the accompanying
unaudited financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> JAN-31-1999
<CASH> 861,612
<SECURITIES> 0
<RECEIVABLES> 40,848
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 7,725,584<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,578,809<F2>
<TOTAL-LIABILITY-AND-EQUITY> 7,725,584<F3>
<SALES> 0
<TOTAL-REVENUES> 246,509<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 155,173
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 91,336
<INCOME-TAX> 0
<INCOME-CONTINUING> 91,336
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 91,336
<EPS-PRIMARY> .89<F5>
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivable, total assets include net investments
in real estate of $6,790,604 and net deferred leasing commissions of
$32,520.
<F2>Represents partners' capital.
<F3>Liabilities include accounts payable and other liabilties of $146,775.
<F5>Represents net income per Unit of limited partnership interest.
<F4>Total revenues include rent of $232,388 and interest and other revenue of
$14,121.
</FN>
</TABLE>
