12
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 April 30, 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
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
BALANCE SHEETS
<CAPTION>
April 30,
October 31,
1999 1998
<S> <C>
<C>
ASSETS
Cash and cash equivalents $ 989,221 $
1,074,634
Real estate:
Land
2,312,300 2,312,300
Building and improvements 7,423,181
7,230,844
9,735,481
9,543,144
Accumulated depreciation (2,966,201)
(2,866,051)
6,769,280
6,677,093
Other assets 72,934
29,496
$ 7,831,435 $
7,781,223
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and other liabilities $ 123,403 $
293,750
Partners' capital (deficiency):
General partners (4,418,367)
(4,440,423)
Limited partners ($1,000 per Unit, 92,780 Units issued)
12,126,399 11,927,896
Total partners' capital 7,708,032
7,487,473
$ 7,831,435 $
7,781,223
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
INCOME STATEMENTS
Three and six months ended April 30, 1999 and 1998
<CAPTION>
Three months ended
Six months ended
April 30
April 30
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Revenues:
Rental $ $ $ $
Gains on sales of 285,757 412,858 518,145 1,197,131
real estate - - -
Interest and other 9,295,923
9,553 7,202 23,674 102,190
295,310 420,060 541,819 10,595,24
4
Expenses:
Property operating
Depreciation and 80,313 188,816 157,752 563,531
amortization
General and 56,882 72,355 104,092 142,624
administrative
28,892 97,753 59,416 206,453
166,087 358,924 321,260 912,608
Net income $ $ $ $
129,223 61,136 220,559 9,682,636
Net income allocated
to: $ $ $ $
Limited partners 116,301 55,022 198,503 9,643,965
General partners
12,922 6,114 22,056 38,671
$ $ $ $
129,223 61,136 220,559 9,682,636
Net income per Unit of
limited partnership $ $ $ $
interest 1.25 0.59 2.14 103.94
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
STATEMENT OF PARTNERS' CAPITAL
Six months ended April 30, 1999
<CAPTION>
Limited General
Partners Partners
Total
<S> <C> <C>
<C>
Partners' capital (deficiency)
at November 1, 1998 $ 11,927,896 $(4,440,423)
$ 7,487,473
Net income 198,503
22,056 220,559
Partners' capital (deficiency)
at April 30, 1999 $ 12,126,399
$(4,418,367) $ 7,708,032
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
STATEMENTS OF CASH FLOWS
Six months ended April 30, 1999 and 1998
<CAPTION>
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net income $ $
Adjustments to reconcile net income to 220,559 9,682,636
net cash
provided by operating activities:
Depreciation and amortization
Gains on sales of real estate 104,092 142,624
Increase in other assets -
(Decrease) increase in accounts (9,295,923
payable and other (47,380) )
liabilities:
(583,980)
(170,347)
247,787
Net cash provided by operating
activities 106,924 193,144
Cash flows from investing activities:
Additions to real estate
Proceeds from sales of real estate (192,337) (42,912)
-
26,089,585
Net cash (used in) provided by
investing activities (192,337) 26,046,673
Cash flows used in financing activities:
Distributions -
(31,865,39
4)
Decrease in cash and cash equivalents
(85,413) (5,625,577
Cash and cash equivalents at beginning of )
period
1,074,634
5,974,627
Cash and cash equivalents at end of $ $
period 989,221 349,050
Supplemental disclosure of non-cash
investing activities:
Reclassification of real estate held
for sale: $ - $
Decrease in real estate: - 2,630,000
Land -
Building and improvements 5,609,260
Accumulated depreciation
(4,396,168
)
Increase in real estate held for sale $ - $
3,843,092
See accompanying notes to financial statements.
</TABLE>
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
Notes to 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 periods. 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 $21,000 and $35,000 for the six
months ended April 30, 1999 and 1998, respectively. These
amounts are included in property operating expenses.
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
Notes to Financial Statements
Another affiliate of the Managing General Partner performs
administrative functions, processes certain investor
transactions and prepares tax information for the
Partnership. Effective November 1, 1998, the affiliate
reduced its fees for these services because of the greatly
reduced level of Partnership activity. For the six months
ended April 30, 1999 and 1998, the Partnership incurred
approximately $51,000 and $89,000, respectively, for these
services. These amounts are included in general and
administrative expenses.
<PAGE>
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.
As a result of the 1998 property sales, Partnership cash
flow from operations decreased during the three- and six-
month periods ended April 30, 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 by the end of 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 6%, and market
rental rates continue to be stable. During the second fiscal
quarter of 1999, occupancy at the property increased from
85% to 91%. 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.
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
During the six months ended April 30, 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 six months ended April 30, 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 $208,000, were for tenant improvements and
leasing commissions at the North Lake Plaza property.
The Partnership did not pay any cash distributions during
the six months ended April 30, 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 April 30, 1999, the Partnership has commitments to
fund approximately $56,000 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- and six-month periods ended April 30, 1999 as
compared to 1998 were primarily attributable to the
following:
In 1999, rental income, property operating expenses, and
general and administrative expenses decreased as a result of
the fiscal 1998 sales of the Westwood 10 (December 1997),
Carmel Park (December 1997), and Harborgate (July 1998)
properties.
<PAGE>
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 during the six-months
ended April 30, 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 1999
due to the sale of the Harborgate property in July 1998.
There were no other individually significant factors which
caused changes in revenues and expenses.
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.
<PAGE>
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
<PAGE>
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: June 10, 1999 By: /s/E.Davisson Hardman Jr.
E. Davisson Hardman, Jr.
President
Date: June 10, 1999 By:
/s/Charles M. Charrow
Charles M. Charrow
Controller
(Principal Financial and
Accounting Officer)
<PAGE>
DEAN WITTER REALTY INCOME PARTNERSHIP I, L.P.
Quarter Ended April 30, 1999
Exhibit Index
Exhibit No. Description
27 Financial Data Schedule
E1
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Registrant is a limited partnership which invest in real estate. 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> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> APR-30-1999
<CASH> 989,221
<SECURITIES> 0
<RECEIVABLES> 42,545
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 7,831,435<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,708,032<F2>
<TOTAL-LIABILITY-AND-EQUITY> 7,831,435<F3>
<SALES> 0
<TOTAL-REVENUES> 541,819<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 321,260
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 220,559
<INCOME-TAX> 0
<INCOME-CONTINUING> 220,559
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 220,559
<EPS-BASIC> 2.14<F5>
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net investments
in real estate of $6,769,280 and net deferred leasing commission of
$30,389.
<F2>Represents partners' capital.
<F3>Liabilities include accounts payable and other liabilities of $123,403.
<F4>Total revenues include rent of $518,145 and interest and other revenue
of $23,674.
<F5>Represents net income per Unit of limited partnership interest.
</FN>
</TABLE>
