<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1997
-------------------
Commission file number 0-13563
--------------
DAMSON/BIRTCHER REALTY INCOME FUND - I
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 13-3264491
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
27611 La Paz Road, P.O. Box A-1, Laguna Niguel, California 92677-0100
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(Address of principal executive offices) (Zip Code)
(714) 643-7700
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(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year, if changed
since last report.)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 12(g), 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding twelve 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> 2
DAMSON/BIRTCHER REALTY INCOME FUND-I
QUARTERLY REPORT ON FORM 10-Q
FOR THE THREE MONTHS ENDED JUNE 30, 1997
-----------------------------------------
INDEX
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<TABLE>
<CAPTION>
Page
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<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statement of Net Assets in Liquidation -
June 30, 1997 (Unaudited)............................................. 3
Statement of Changes of Net Assets in Liquidation -
Three Months Ended June 30, 1997 (Unaudited).......................... 4
Balance Sheet -
December 31, 1996..................................................... 5
Statements of Operations (Unaudited) -
Three Months Ended March 31, 1997 and Three and Six Months
Ended June 30, 1996................................................... 6
Statement of Cash Flows (Unaudited) -
Six Months Ended June 30, 1996........................................ 7
Notes to Financial Statements (Unaudited)............................. 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations......................... 12
PART II. OTHER INFORMATION..................................................... 15
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
-----------------------------
ITEM 1. FINANCIAL STATEMENTS
--------------------
DAMSON/BIRTCHER REALTY INCOME FUND-I
STATEMENT OF NET ASSETS IN LIQUIDATION
JUNE 30, 1997
(UNAUDITED)
--------------------------------------
<TABLE>
<CAPTION>
ASSETS (Liquidation Basis):
- ---------------------------
<S> <C>
Properties held for sale $35,579,000
Cash and cash equivalents 729,000
Accounts receivable 124,000
Other assets 110,000
-----------
Total Assets 36,542,000
-----------
LIABILITIES (Liquidation Basis):
- -------------------------------
Accounts payable and accrued liabilities 920,000
Secured loan payable 2,833,000
Accrued expenses for liquidation 708,000
-----------
Total Liabilities 4,461,000
-----------
Net Assets in Liquidation $32,081,000
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 4
DAMSON/BIRTCHER REALTY INCOME FUND-I
STATEMENT OF CHANGES OF NET ASSETS IN LIQUIDATION
FOR THE PERIOD FROM APRIL 1, 1997 TO JUNE 30, 1997
(UNAUDITED)
--------------------------------------------------
<TABLE>
<S> <C>
Net assets in liquidation at March 31, 1997 $ 32,002,000
Increase (decrease) during period:
Operating activities:
Property operating income, net 796,000
Interest income 9,000
General and administrative expenses (357,000)
Interest expense on mortgage payable (64,000)
Leasing commissions (49,000)
------------
335,000
------------
Liquidating activities:
Distribution to partners (256,000)
------------
(256,000)
Net increase in assets in liquidation 79,000
------------
Net assets in liquidation at June 30, 1997 $ 32,081,000
============
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 5
DAMSON/BIRTCHER REALTY INCOME FUND-I
BALANCE SHEET
DECEMBER 31, 1996
------------------------------------
<TABLE>
<S> <C>
ASSETS
- ------
Properties held for sale (net of valuation $ 34,582,000
allowance of $5,418,000)
Cash and cash equivalents 711,000
Accounts receivable (net of allowance for
doubtful accounts of $46,000) 80,000
Accrued rent receivable 439,000
Prepaid expenses and other assets 670,000
------------
$ 36,482,000
============
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Accounts payable and accrued liabilities $ 937,000
Secured loan payable 2,932,000
------------
Total liabilities 3,869,000
------------
Partners' capital (deficit):
Limited Partners 33,104,000
General Partner (491,000)
------------
32,613,000
Commitments and contingencies
------------
$36,482,000
============
</TABLE>
Note: The balance sheet at December 31, 1996 has been prepared from the
audited financial statements as of that date.
The accompanying notes are an integral part of these financial statements.
5
<PAGE> 6
DAMSON/BIRTCHER REALTY INCOME FUND-I
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months Six Months
Ended Ended Ended
March 31, 1997 June 30, 1996 June 30, 1996
-------------- ------------- -------------
<S> <C> <C> <C>
REVENUES
Rental income $ 1,479,000 $ 1,597,000 $ 3,146,000
Interest income 10,000 2,000 3,000
----------- ----------- -----------
Total revenues 1,489,000 1,599,000 3,149,000
----------- ----------- -----------
EXPENSES
Operating expenses 377,000 452,000 889,000
Real estate taxes 201,000 88,000 338,000
Amortization 70,000 44,000 84,000
General and administrative 369,000 244,000 478,000
Interest 66,000 86,000 156,000
Adjustment to carrying value of
real estate - 386,000 1,535,000
----------- ----------- -----------
Total expenses 1,083,000 1,300,000 3,480,000
----------- ----------- -----------
NET INCOME (LOSS) $ 406,000 $ 299,000 $ (331,000)
=========== =========== ===========
NET INCOME (LOSS) ALLOCABLE TO:
General Partner $ 4,000 $ 3,000 $ (3,000)
=========== =========== ===========
Limited Partners $ 402,000 $ 296,000 $ (328,000)
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE> 7
DAMSON/BIRTCHER REALTY INCOME FUND-I
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months
Ended
June 30, 1996
-------------
<S> <C>
Cash flows from operating activities:
Net loss $ (331,000)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Amortization 84,000
Adjustment to carrying value of real estate 1,535,000
Changes in:
Accounts receivable 5,000
Prepaid expenses and other assets (85,000)
Accrued rent receivable (40,000)
Accounts payable and accrued liabilities (252,000)
-----------
Net cash used in operating activities (916,000)
Cash flows from investing activities:
Investments in real estate (1,572,000)
-----------
Net cash used in investing activities (1,572,000)
Cash flows from financing activities:
Proceeds from secured loan payable 700,000
Secured loan payable (90,000)
Distributions -
-----------
Net cash provided by financing activities 610,000
Net decrease in cash and cash equivalents (46,000)
Cash and cash equivalents, beginning of period 301,000
-----------
Cash and cash equivalents, end of period $ 255,000
===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
7
<PAGE> 8
DAMSON/BIRTCHER REALTY INCOME FUND-I
NOTES TO FINANCIAL STATEMENTS - UNAUDITED
(1) Accounting Policies
The financial statements of Damson/Birtcher Realty Income Fund-I (the
"Partnership") included herein have been prepared by the General Partner,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. These financial statements include all adjustments
which are of a normal recurring nature and, in the opinion of the General
Partner, are necessary for a fair presentation. 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 the rules and regulations of the
Securities and Exchange Commission. These financial statements should be
read in conjunction with the financial statements and notes thereto
included in the Partnership's annual report on Form 10-K for the year
ended December 31, 1996.
Liquidation Basis of Accounting
On February 18, 1997, the Partnership mailed a Consent Solicitation to the
Limited Partners which sought their consent to dissolve the Partnership
and sell and liquidate all of its remaining properties as soon as
practicable, consistent with selling the Partnership's properties to the
best advantage under the circumstances. A majority in interest of the
Limited Partners consented by March 14, 1997. As a result, the Partnership
has adopted the liquidation basis of accounting as of March 31, 1997. The
difference between the adoption of the liquidation basis of accounting as
of March 14, 1997 and March 31, 1997 was not material.
Under the liquidation basis of accounting, assets are stated at their
estimated net realizable values and liabilities are stated at their
anticipated settlement amounts. The valuation of assets and liabilities
necessarily requires many estimates and assumptions, and there are
substantial uncertainties in carrying out the dissolution of the
Partnership. The actual values upon dissolution and costs associated
therewith could be higher or lower than the amounts recorded.
The Partnership adopted the liquidation basis of accounting on March 31,
1997. Comparison of results to prior years, therefore, is not practical.
The Statement of Net Assets in Liquidation and Statement of Changes of Net
Assets in Liquidation reflect the Partnership in the process of
liquidation. Prior financial statements reflect the Partnership as a going
concern.
Earnings Per Unit
The Partnership Agreement does not designate investment interests in
units. All investment interests are calculated on a "percent of
Partnership" basis, in part to accommodate original reduced rates on sales
commissions for subscriptions in excess of certain specified amounts.
A Limited Partner who was charged a reduced sales commission or no sales
commission was credited with proportionately larger Invested Capital and
therefore had a disproportionately greater interest in the capital and
revenues of the Partnership than a Limited Partner who paid commissions at
a higher
8
<PAGE> 9
DAMSON/BIRTCHER REALTY INCOME FUND-I
NOTES TO FINANCIAL STATEMENTS - UNAUDITED (Cont'd.)
(1) Accounting Policies (Cont'd.)
rate. As a result, the Partnership has no set unit value as all
accounting, investor reporting and tax information is based upon each
investor's relative percentage of Invested Capital. Accordingly, earnings
or loss per unit is not presented in the accompanying financial
statements.
Carrying Value of Real Estate (Prior to adoption of Liquidation Basis of
Accounting)
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121 "Accounting for the Impairment
of Long- Lived Assets and for Long-Lived Assets to Be Disposed Of," ("FAS
121"). This Statement requires that if the General Partner believes
factors are present that may indicate long-lived assets are impaired, the
undiscounted cash flows, before debt service, related to the assets should
be estimated. If these estimated cash flows are less than the carrying
value of the asset, then impairment is deemed to exist. If impairment
exists, the asset should be written down to the estimated fair value.
Further, assets held for sale, including any unrecoverable accrued rent
receivable or capitalized leasing commissions, were carried at the lower
of carrying value or fair value less estimated selling costs. Any
adjustment to carrying value was recorded as a valuation allowance against
property held for sale. Each reporting period, the General Partner
reviewed its estimates of fair value, which were decreased or increased up
to the original carrying value. Finally, assets held for sale are no
longer depreciated. The General Partner adopted FAS 121 at December 31,
1995 and the adoption did not have a material impact on the Partnership's
operations or financial position, as prior to December 31, 1995, the
Partnership had not had any properties held for sale.
As noted above, as of December 31, 1995 the General Partner decided to
account for the Partnership's properties as assets held for sale, instead
of for investment. Assuming an average 12 month holding period, the
General Partner compared the carrying value of each property to its
appraised value as of January 1, 1996. If the carrying value of a property
and certain related assets was greater than its appraised value, less
selling costs, the General Partner reduced the carrying value of the
property by the difference. Using this methodology, the General Partner
determined that The Cornerstone, Ladera I Shopping Center, Terracentre,
Arlington Executive Plaza and Washington Technical Center had carrying
values greater than they had appraised values, and therefore reduced their
carrying values by $1,600,000, $560,000, $590,000, $1,250,000 and $770,000
to $9,032,000, $6,234,000, $2,397,000, $2,740,000 and $2,612,000,
respectively.
Utilizing the same methodology, assuming a 12 month holding period, for
the year ended December 31, 1996, the General Partner determined that The
Cornerstone, Ladera-I Shopping Center and Oakpointe had carrying values
greater than their respective appraised values. As a result, the carrying
values were adjusted by $1,683,000, $398,000, and $253,000 to $8,960,000,
$5,900,000, and $7,700,000, respectively. In addition, during 1996, the
carrying values of Terracentre and Washington Technical Center were
increased by $190,000 and
9
<PAGE> 10
DAMSON/BIRTCHER REALTY INCOME FUND-I
NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)
(1) Accounting Policies (Cont'd.)
Carrying Value of Real Estate (Prior to adoption of Liquidation Basis of
Accounting) (Cont'd.)
$246,000 to their estimated fair values less selling costs of $2,900,000
and $3,020,000, respectively.
(2) Transactions with Affiliates
The Partnership has no employees and, accordingly, the General Partner and
its affiliates perform services on behalf of the Partnership in connection
with administering the affairs of the Partnership. The General Partner and
affiliates are reimbursed for their general and administrative costs
actually incurred and associated with services performed on behalf of the
Partnership. For the three months ended June 30, 1997 and 1996, the
Partnership incurred approximately $45,000 and $51,000, respectively, of
such expenses. For the six months there ended, such costs were $79,000 and
$98,000, respectively.
An affiliate of the General Partner provides property management services
with respect to the Partnership's properties and receives a fee for such
services not to exceed 3% of the gross receipts from the properties under
management. Such fees amounted to approximately $40,000 and $45,000 for
the three months ended June 30, 1997 and 1996, respectively. For the six
months there ended, such fees were $81,000 and $89,000, respectively. In
addition, an affiliate of the General Partner received $78,000 and
$106,000 for the three months ended June 30, 1997 and 1996, respectively,
as reimbursement of costs of on-site property management personnel and
other reimbursable costs. For the six months there ended, such costs were
$157,000 and $195,000, respectively.
As previously reported, on June 24, 1993, the Partnership completed its
solicitation of written consents from its Limited Partners. A majority in
interest of the Partnership's Limited Partners approved each of the
proposals contained in the Information Statement dated May 5, 1993. Those
proposals were implemented by the Partnership as contemplated by the
Information Statement as amendments to the Partnership Agreement, and are
reflected in these financial statements as such.
The amended Partnership Agreement provides for the Partnership's payment
to the General Partner of an annual asset management fee equal to .65% for
1997 and .75% for 1996 of the aggregate appraised value of the
Partnership's properties as determined by independent appraisal undertaken
in January of each year. Such fees for the three months ended June 30,
1997 and 1996, amounted to $61,000 and $76,000, respectively. For the six
months there ended, such fees were $122,000 and $151,000, respectively.
In addition, the amended Partnership Agreement provides for payment to the
General Partner of a leasing fee for services rendered in connection with
leasing space in a Partnership property after the expiration or
termination of leases. Fees for leasing services for the three months
ended June 30, 1997 and 1996, amounted to $9,000 and $3,000, respectively.
For the six months there ended, such fees were $9,000 and $8,000,
respectively.
10
<PAGE> 11
DAMSON/BIRTCHER REALTY INCOME FUND-I
NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)
(3) Commitments and Contingencies
Litigation
The Partnership is not a party to any material pending legal proceedings
other than ordinary routine litigation incidental to its business. It is
the General Partner's belief that the outcome of these proceedings will
not be material to the business or financial condition of the Partnership.
(4) Accrued Expenses for Liquidation
Accrued expenses for liquidation as of June 30, 1997, includes estimates
of costs to be incurred in carrying out the dissolution and liquidation of
the Partnership. These costs include estimates of legal fees, accounting
fees, tax preparation and filing fees, professional services, the general
partner's liability insurance and the pre-payment penalty and remaining
unamortized loan fees associated with the anticipated early retirement of
the mortgage loan secured by the Certified Warehouse property. The actual
costs could vary significantly from the related provisions due to the
uncertainty related to the length of time required to complete the
liquidation and dissolution and the complexities which may arise in
disposing of the Partnership's remaining assets.
11
<PAGE> 12
DAMSON/BIRTCHER REALTY INCOME FUND-I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
Since the completion of its acquisition program in September 1985, the
Partnership has been primarily engaged in the operation of its properties.
The Partnership's original objective had been to hold its properties as
long-term investments. However, an Information Statement, dated May 5,
1993, mandated that the General Partner seek a vote of the Limited
Partners no later than December 31, 1996, regarding prompt liquidation of
the Partnership in the event that properties with appraised values as of
January 1993 which constituted at least one half of the aggregate
appraised values of all Partnership properties as of that date were not
sold or under contract for sale by the end of 1996. Given the mandate of
the May 5, 1993 Information Statement, as of December 31, 1995, the
General Partner decided to account for the Partnership's properties as
assets held for sale, instead of for investment. In a Consent Solicitation
dated February 18, 1997, the Partnership solicited and received the
consent of the Limited Partners on March 14, 1997 to dissolve the
Partnership and sell and liquidate all of its remaining properties as soon
as practicable, consistent with selling the Partnership's properties to
the best advantage under the circumstances. The Partnership's properties
were held for sale throughout 1996 and continue to be held for sale.
Regular distributions through June 30, 1997 represent cash flow generated
from operations of the Partnership's properties and interest earned on the
temporary investment of working capital net of capital reserve
requirements. In December 1996, the Partnership made a special
distribution of $1,500,000, representing a portion of net proceeds from
the sale of Arlington Executive Plaza. Future cash distributions will be
made principally to the extent of cash flow attributable to operations and
sales of the Partnership's properties and interest earned on the
investment of capital reserves, after loan repayments, payment for capital
improvements to the Partnership's properties and providing for capital
reserves.
Certain of the Partnership's properties are not fully leased. The
Partnership is actively marketing the vacant space in these properties,
subject to the competitive environment in each of the market areas. To the
extent the Partnership is not successful in maintaining or increasing
occupancy levels at these properties, the Partnership's future cash flow
may be reduced.
On July 30, 1993, the Partnership obtained a loan secured by a First Deed
of Trust on the Certified Distribution Center in Salt Lake City, Utah. The
loan, in the amount of $3,500,000, carries a fixed interest rate of 9% per
annum over a 13-year fully amortizing term. The Partnership's first
payment of $38,138.82 was paid on September 1, 1993, with monthly
installments due thereafter. Proceeds from that loan, along with $500,000
of Partnership cash reserves, were used to retire the Partnership's then
existing debt of $4,000,000.
In March 1996, the Partnership entered into a loan agreement pursuant to
which it could borrow up to $1,500,000 (similar to a credit line
arrangement), evidenced by a note secured by a first deed of trust and
financing statement on the Ladera I Shopping Center in Albuquerque, New
Mexico. Pursuant to the note and loan agreement, the Partnership borrowed
$700,000 in March 1996. The
12
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DAMSON/BIRTCHER REALTY INCOME FUND-I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Cont'd.)
Liquidity and Capital Resources (Cont'd.)
Partnership made interest only payments at the rate of 1% over prime (the
loan rate was 9.25%) through November 1996, when the entire balance was
paid off utilizing a portion of the proceeds from the sale of Arlington
Executive Plaza.
The net proceeds of the foregoing loan were used to fund a portion of the
renovation and tenant improvements at The Cornerstone and tenant
improvements at Oakpointe. The Partnership has the abilitiy to borrow
against this credit facilty (up to $1,500,000) through March 3 1999,
should its cash requirements necessitate.
Results of Operations for the Three Months Ended June 30, 1997
Because the Partnership adopted the liquidation basis of accounting on
March 31, 1997, a comparison of the results of operations is not
practical. As the Partnership's assets (properties) are sold, the results
of operations will be generated from a smaller asset base, and are
therefore not comparable. The Partnership's operating results have been
reflected on the Statement of Changes of Net Assets in Liquidation since
March 31, 1997 (the date of adoption of the liquidation basis of
accounting).
For the three months ended June 30, 1997, the Partnership generated
$796,000 of net operating income from operations of its properties. The
decrease in net operating income for the three months ended June 30, 1997
when compared to the same period in 1996 is primarily the result of the
following: 1)the sale of Arlington Executive Plaza in November 1996
($113,000); 2) a tax adjustment that reduced property taxes in 1996 as a
result of a tax appeal at Oakpointe ($71,000); and, 3) a decrease in
rental income at The Cornerstone ($70,000) that resulted from lower
occupancy in 1997.
Interest income resulted from the temporary investment of Partnership
working capital. For the three months ended June 30, 1997, interest income
was approximately $9,000.
General and administrative expenses for the three months ended June 30,
1997, include charges of $114,000 from the General Partner and its
affiliates for services rendered in connection with administering the
affairs of the Partnership and operating the Partnership's properties.
Also included in general and administrative expenses for the three months
ended June 30, 1997, are direct charges of $243,000, relating to audit
fees, tax preparation fees, legal fees and professional services,
liability insurance expenses, costs incurred in providing information to
the Limited Partners and other miscellaneous costs.
Accrued expenses for liquidation, as reflected in the Statement of Net
Assets in Liquidation as of June 30, 1997, are not included in results of
operations for the three month period ended March 31, 1997. The
liquidation basis of accounting was adopted on March 31, 1997, therefore,
it was not appropriate to include such adjustments in the results of
operations for prior periods.
13
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DAMSON/BIRTCHER REALTY INCOME FUND-I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (Cont'd.)
Liquidity and Capital Resources (Cont'd.)
Interest expense resulted from interest on the first deed of trust on
Certified Distribution Center.
14
<PAGE> 15
DAMSON/BIRTCHER REALTY INCOME FUND-I
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
So far as is known to the General Partner, neither the Partnership nor its
properties are subject to any material pending legal proceedings.
On March 25, 1997, a limited partner named Bigelow/Diversified Secondary
Partnership Fund 1990 filed a purported class action lawsuit in the Court
of Common Pleas of Philadelphia County against Damson/Birtcher Partners,
Birtcher Investors, Birtcher/Liquidity Properties, Birtcher Investments,
L.F. Special Fund II, L.P., L.F. Special Fund I, L.P., Arthur Birtcher,
Ronald Birtcher, Robert Anderson, Richard G. Wollack and Brent R.
Donaldson alleging breach of fiduciary duty and breach of contract and
seeking to enjoin the Consent Solicitation dated February 18, 1997. On
April 18, 1997, the court denied the plaintiff's motion for a preliminary
injunction. On June 10, 1997, the court dismissed the plaintiff's
complaint on the basis of lack of personal jurisdiction and forum non
conveniens.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
27 - Financial Data Schedule
b) Reports on Form 8-K:
None filed in quarter ended June 30, 1997.
15
<PAGE> 16
DAMSON/BIRTCHER REALTY INCOME FUND-I
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.
DAMSON/BIRTCHER REALTY INCOME FUND-I
<TABLE>
<S> <C>
By: DAMSON/BIRTCHER PARTNERS By: BIRTCHER PARTNERS,
(General Partner) a California general partnership
By: BIRTCHER INVESTMENTS,
a California general partnership,
General Partner of Birtcher Partners
By: BIRTCHER LIMITED,
a California limited partnership,
General Partner of Birtcher Investments
By: BREICORP,
a California corporation,
formerly known as Birtcher
Real Estate Inc., General
Partner of Birtcher Limited
Date: August 12, 1997 By: /s/ ROBERT M. ANDERSON
--------------------------
Robert M. Anderson
Executive Director
BREICORP
By: LF Special Fund II, L.P.,
a California limited partnership
By: Liquidity Fund Asset Management, Inc.,
a California corporation, General
Partner of LF Special Fund II, L.P.
Date: August 12, 1997 By: /s/ BRENT R. DONALDSON
-------------------------------------
Brent R. Donaldson
President
Liquidity Fund Asset Management, Inc.
</TABLE>
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM STATEMENT OF
NET ASSETS IN LIQUIDATION OF DAMSON BIRTCHER REALTY INCOME FUND I AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 729,000
<SECURITIES> 0
<RECEIVABLES> 124,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 963,000
<PP&E> 35,579,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 36,542,000
<CURRENT-LIABILITIES> 1,628,000
<BONDS> 2,833,000
0
0
<COMMON> 0
<OTHER-SE> 32,081,000
<TOTAL-LIABILITY-AND-EQUITY> 36,542,000
<SALES> 0
<TOTAL-REVENUES> 0<F1>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0<F1>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0<F1>
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0<F1>
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Statement of Operation is not presented in
liquidation liquidation basis of accounting.
</FN>
</TABLE>
