<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
------------------------------------------
For Quarter Ended September 30, 1997
--------------------------------------------------------------
Commission file number 0-13563
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DAMSON/BIRTCHER REALTY INCOME FUND - I
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 13-3264491
- --------------------------------------------------------------------------------
(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
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(714) 643-7700
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- --------------------------------------------------------------------------------
(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 SEPTEMBER 30, 1997
---------------------------------------------
INDEX
<TABLE>
<CAPTION>
Page
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<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statement of Net Assets in Liquidation --
September 30, 1997 (Unaudited).................................... 3
Statement of Changes of Net Assets in Liquidation --
Three Months Ended September 30, 1997 (Unaudited)................. 4
Balance Sheet -
December 31, 1996................................................. 5
Statements of Operations (Unaudited) --
Three Months Ended March 31, 1997 and Three and Nine Months
Ended September 30, 1996.......................................... 6
Statement of Cash Flows (Unaudited) --
Nine Months Ended September 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
SEPTEMBER 30, 1997
(UNAUDITED)
--------------------------------------
<TABLE>
<S> <C>
ASSETS (Liquidation Basis):
- ---------------------------
Properties held for sale $35,798,000
Cash and cash equivalents 486,000
Accounts receivable 258,000
Other assets 199,000
-----------
Total Assets 36,741,000
-----------
LIABILITIES (Liquidation Basis):
- --------------------------------
Accounts payable and accrued liabilities 987,000
Secured loan payable 2,782,000
Accrued expenses for liquidation 708,000
-----------
Total Liabilities 4,477,000
-----------
Net Assets in Liquidation $32,264,000
===========
</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 JULY 1, 1997 TO SEPTEMBER 30, 1997
(UNAUDITED)
------------------------------------------------------
<TABLE>
<S> <C>
Net assets in liquidation at June 30, 1997 $32,081,000
Increase (decrease) during period:
Operating activities:
Property operating income, net 859,000
Interest income 8,000
General and administrative expenses (304,000)
Interest expense on mortgage payable (63,000)
Leasing commissions (61,000)
-----------
439,000
-----------
Liquidating activities:
Distribution to partners (256,000)
-----------
(256,000)
Net increase in assets in liquidation 183,000
-----------
Net assets in liquidation at September 30, 1997 $32,264,000
===========
</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>
<CAPTION>
<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 Nine Months
Ended Ended Ended
3/31/97 9/30/96 9/30/96
----------- ----------- -----------
<S> <C> <C> <C>
REVENUES
Rental income $ 1,479,000 $ 1,590,000 $ 4,737,000
Interest income 10,000 4,000 6,000
----------- ----------- -----------
Total revenues 1,489,000 1,594,000 4,743,000
----------- ----------- -----------
EXPENSES
Operating expenses 377,000 429,000 1,318,000
Real estate taxes 201,000 230,000 568,000
Amortization 70,000 56,000 140,000
General and administrative 369,000 230,000 708,000
Interest 66,000 84,000 240,000
Adjustment to carrying value of
real estate -- 335,000 1,870,000
----------- ----------- -----------
Total expenses 1,083,000 1,364,000 4,844,000
----------- ----------- -----------
NET INCOME (LOSS) $ 406,000 $ 230,000 $ (101,000)
=========== =========== ===========
NET INCOME (LOSS) ALLOCABLE TO:
General Partner $ 4,000 $ 2,000 $ (1,000)
=========== =========== ===========
Limited Partners $ 402,000 $ 228,000 $ (100,000)
=========== =========== ===========
</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>
Nine Months
Ended
9/30/96
------------
<S> <C>
Cash flows from operating activities:
Net loss $ (101,000)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Amortization 140,000
Adjustment to carrying value of real estate 1,870,000
Changes in:
Accounts receivable 4,000
Prepaid expenses and other assets (44,000)
Accrued rent receivable (135,000)
Accounts payable and accrued liabilities (221,000)
-----------
Net cash used in operating activities 1,513,000
Cash flows from investing activities:
Investments in real estate (1,907,000)
-----------
Net cash used in investing activities (1,907,000)
Cash flows from financing activities:
Proceeds from secured loan payable 700,000
Secured loan payable (137,000)
Distributions (255,000)
-----------
Net cash provided by financing activities 308,000
Net decrease in cash and cash equivalents (86,000)
Cash and cash equivalents, beginning of period 301,000
-----------
Cash and cash equivalents, end of period $ 215,000
===========
</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
September 30, 1997 and 1996, the Partnership incurred approximately
$43,000 and $49,000, respectively, of such expenses. For the nine
months there ended, such costs were $122,000 and $147,000,
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
$42,000 and $46,000 for the three months ended September 30, 1997 and
1996, respectively. For the nine months there ended, such fees were
$123,000 and $135,000, respectively. In addition, an affiliate of the
General Partner received $79,000 and $89,000 for the three months ended
September 30, 1997 and 1996, respectively, as reimbursement of costs of
on-site property management personnel and other reimbursable costs. For
the nine months there ended, such costs were $236,000 and $284,000,
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 September 30, 1997 and 1996, amounted to $61,000 and $76,000,
respectively. For the nine months there ended, such fees were $184,000
and $227,000, 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 September 30, 1997 and 1996,
10
<PAGE> 11
DAMSON/BIRTCHER REALTY INCOME FUND-I
NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)
(2) Transactions with Affiliates (Cont'd.)
amounted to $16,000 and $5,000, respectively. For the nine months
there ended, such fees were $25,000 and $13,000, respectively.
(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 September 30, 1997, include
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 September 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
<PAGE> 13
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.)
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 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 Partnership has the ability to borrow against this credit facility
(up to $1,500,000) through March 31, 1999, should its cash requirements
necessitate.
Results of Operations for the Three Months Ended September 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 September 30, 1997, the Partnership
generated $859,000 of net operating income from operations of its
properties. The slight decrease in net operating income for the three
months ended September 30, 1997 when compared to the same period in
1996 was primarily the result of the sale of Arlington Executive Plaza
in November 1996 ($49,000), and an increase in property taxes at
Oakpointe that resulted from a higher tax assessment in 1997
($114,000). These decreases were partially offset by higher rental
income at Terracentre as a result of higher occupancy in 1997
($53,000)and an increase in operating expense recoveries at Oakpointe
($32,000).
Interest income resulted from the temporary investment of Partnership
working capital. For the three months ended September 30, 1997,
interest income was approximately $8,000.
General and administrative expenses for the three months ended
September 30, 1997, include charges of $120,000 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 September 30, 1997, are direct
charges of $184,000, 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 September 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
13
<PAGE> 14
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.)
appropriate to include such adjustments in the results of operations
for prior periods.
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 September 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
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: November 13, 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: November 13, 1997 By: /s/ Brent R. Donaldson
----------------------
Brent R. Donaldson
President
Liquidity Fund Asset Management,
Inc.
16
<PAGE> 17
EXHIBIT INDEX
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER DESCRIPTION PAGE
- ------- ----------- ------------
27 Financial Data Schedule
<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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 486,000
<SECURITIES> 0
<RECEIVABLES> 258,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 943,000
<PP&E> 35,798,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 36,741,000
<CURRENT-LIABILITIES> 1,695,000
<BONDS> 2,782,000
0
0
<COMMON> 0
<OTHER-SE> 32,264,000
<TOTAL-LIABILITY-AND-EQUITY> 36,741,000
<SALES> 0
<TOTAL-REVENUES> 0<F1>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0<F1>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0<F1>
<INCOME-TAX> 0<F1>
<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 BASIS OF ACCOUNTING.
</FN>
</TABLE>
