UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________
FORM 10-Q/A
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from to .
Commission File Number : 0-14857
PAINEWEBBER EQUITY PARTNERS ONE LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Virginia 04-2866287
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
265 Franklin Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-8118
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 .
1. General
The accompanying financial statements, footnotes and discussion should be
read in conjunction with the financial statements and footnotes in the
Partnership's Annual Report for the year ended March 31, 1994.
In the opinion of management, the accompanying financial statements, which
have not been audited, reflect all adjustments necessary to present fairly
the results for the interim period. All of the accounting adjustments
reflected in the accompanying interim financial statements are of a normal
recurring nature.
2. Investments in Unconsolidated Joint Venture Partnerships
As of September 30, 1994 and 1993, the Partnership had investments in five
unconsolidated joint venture partnerships which own operating properties as
more fully described in the Partnership's Annual Report. The unconsolidated
joint ventures are accounted for by using the equity method. Under the
equity method, the assets, liabilities, revenues and expenses of the
unconsolidated joint ventures do not appear in the Partnership's financial
statements. Instead, the investments are carried at cost adjusted for the
Partnership's share of each venture's earnings, losses and distributions.
The Partnership reports its share of unconsolidated joint venture earnings
or losses three months in arrears.
Summarized operations of the unconsolidated joint ventures for the periods
indicated are as follows:
CONDENSED COMBINED SUMMARY OF OPERATIONS
For the three and six months ended June 30, 1994 and 1993
Three Months Ended Six Months Ended
June 30, June 30,
1994 1993 1994 1993
Revenues:
Rental revenues and
expense recoveries $2,526,000$2,549,000 $5,370,000$5,298,000
Interest and other income 44,000 53,000 71,000 81,000
2,570,000 2,602,000 5,441,000 5,379,000
Expenses:
Property operating expenses 911,000 958,000 1,717,000 1,808,000
Real estate taxes 676,000 620,000 1,385,000 1,323,000
Mortgage interest expense 445,000 329,000 671,000 657,000
Interest expense payable
to partner 200,000 200,000 400,000 400,000
Depreciation and
amortization 750,000 742,000 1,504,000 1,484,000
2,982,000 2,849,000 5,677,000 5,672,000
Net loss $ (412,000)$ (247,000) $ (236,000)$ (293,000)
Net loss:
Partnership's share of
combined income (loss) $ (424,000)$ (255,000) $ (337,000)$ (445,000)
Co-venturers' share of
combined income (loss) 12,000 8,000 101,000 152,000
$ (412,000) $(247,000) $ (236,000)$ (293,000)
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PAINEWEBBER EQUITY PARTNERS ONE LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(continued)
RESULTS OF OPERATIONS
The Partnership's net loss decreased by approximately $329,000 for the six
months ended September 30, 1994, when compared to the same period in the prior
year, due to a decrease in the Partnership's operating loss and an improvement
in the Partnership's recorded share of unconsolidated joint ventures'
operations. The Partnership's operating loss decreased by approximately
$221,000 primarily due to an increase in revenues of approximately $109,000, a
decrease in bad debt expense from the Crystal Tree Commerce Center of
approximately $72,000, a decrease in property operating expenses of
approximately $27,000 and an decrease in interest expense of approximately
$10,000. The increase in revenues was primarily the result of increased rental
income from the Crystal Tree Commerce Center due to a reduction in rental
concessions offered to the property's retail tenants. The occupancy level at
Crystal Tree has remained stable in the high 90's over the past two years.
However, the Partnership has used rental concessions as necessary to maintain
high occupancy levels despite the generally sluggish South Florida economy. In
addition, interest income increased as a result of an increase in the average
invested balances of the Partnership's cash reserves, along with an increase in
short-term interest rates. Property operating expenses decreased primarily due
to a decline in real estate taxes at the Crystal Tree Commerce Center. The
decrease in interest expense can be attributed to the modification and principal
paydown described above for the loan secured by the 625 North Michigan property,
which occurred in May 1994.
A favorable improvement in the Partnership's share of unconsolidated
ventures' operations also contributed to the decrease in net loss for the
current period. For the six months ended September 30, 1994, the Partnership's
share of unconsolidated ventures' losses decreased by approximately $108,000, as
compared to the prior period. This favorable change is primarily due to a
significant increase in rental income and a substantial decline in interest
expense at the Warner/Red Hill joint venture, in addition to a decrease in
property operating expenses, most notably at 625 North Michigan. Rental income
from Warner/Red Hill increased by approximately $237,000 over the prior period
as a result of the significant increase in occupancy achieved during fiscal
1994. Effective rental rates for office/R&D space in the Southern California
market in particular, remain depressed due to the significant existing
oversupply of competing space. In addition, the venture's interest expense
declined by approximately $214,000 as a result of the modification of the zero
coupon loan secured by the Warner/Red Hill property, as discussed further above.
The improved net operating results of the Warner/Red Hill joint venture were
partially offset by an increase in the net loss of the Monterra Apartments joint
venture. The joint venture's net loss increased primarily due to an increase in
interest expense as a result of the compounding of interest on Monterra's zero
coupon loan prior to its refinancing.
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PAINEWEBBER EQUITY PARTNERS ONE LIMITED PARTNERSHIP
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Partnership has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
PAINEWEBBER EQUITY PARTNERS ONE
LIMITED PARTNERSHIP
By: First Equity Partners, Inc.
Managing General Partner
By: /s/ Walter V. Arnold
Walter V. Arnold
Senior Vice President and
Chief Financial Officer
Dated: January 30, 1995
