U. S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from --------- to -----------
Commission file number 0-21455.
Decade Companies Income Properties - A Limited Partnership
(Exact name of small business issuer as specified in its charter)
State of Wisconsin
39-1518732
(State or other jurisdiction
(IRS Employer of incorporation or organization)
Identification No.)
250 Patrick Blvd., Suite 140 Brookfield, Wisconsin 53045-5864
(Address of principal executive offices)
(414) 792-9200
(Issuer's telephone number)
Former name, former address and former fiscal year, if changed
since last report)
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
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 .
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed
by court. Yes No .
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:__.
Transitional Small Business Disclosure Format (check one): Yes
No X .
Decade Companies Income Properties - A Limited Partnership
Form 10-QSB
INDEX
September 30, 1998
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements (unaudited as to
September 30, 1998 and the three months and
nine months then ended).
Balance Sheet at September 30, 1998. 3
Statements of Operations for the three months
and nine months ended September 30, 1998 and 1997 4
Statements of Partners' Capital
for the nine months ended September 30, 1998
and the year ended December 31, 1997. 5
Statements of Cash Flows for the nine months
ended September 30, 1998 and 1997. 6
Notes to Financial Statements. 7
Item 2. Management's Discussion and Analysis 7 - 12
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 6. Exhibits and Reports on Form 8-K. 12
SIGNATURES 13
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEET
September 30, 1998
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,495,499
Escrow deposits 124,902
Prepaid expenses and other assets 45,199
Total Current Assets 2,665,600
INVESTMENT PROPERTIES, AT COST: 31,627,302
Less: accumulated depreciation (8,389,650)
Net Investment Property 23,237,652
OTHER ASSETS:
Utility deposits 43,415
Debt issue costs, net of accumulated
amortization 172,558
Total Other Assets 215,973
Total Assets 26,119,225
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and
accrued taxes 629,300
Tenant security deposits 125,031
Distributions payable 170,004
Accrued interest payable 36,673
Payables to affiliates 3,819,697
Mortgage notes payable 22,668,698
Total Liabilities 27,449,403
PARTNERS' CAPITAL:
General Partner Capital (85,526)
Limited Partners
(authorized--18,000 Interests;
outstanding--13,400.27 Interests) (1,244,652)
Total Partners' Capital (1,330,178)
Total Liabilities and
Partners' Capital 26,119,225
See Notes to Financial Statements.
<PAGE>
<TABLE>
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
<S> <C> <C> <C> <C>
Three Months Ended Nine Months Ended
9/30/98 9/30/97 9/30/98 9/30/97
Operating revenue:
Rental income 1,621,192 1,530,957 4,889,274 4,595,783
Operating expenses (622,798) (703,732) (2,047,052) (2,149,340)
Real estate taxes (188,494) (186,445) (551,377) (542,481)
Total operating
expenses (811,292) (890,177) (2,598,429) (2,691,821)
Net operating income 809,900 640,780 2,290,845 1,903,962
Interest expense (438,624) (451,251) (1,312,820) (1,326,763)
Depreciation (267,400) (280,900) (787,800) (832,400)
Amortization (8,512) (8,730) (26,187) (26,199)
Net income (loss) from
investment property 95,364 (100,101) 164,038 (281,400)
Other income (expenses):
Interest income 41,033 33,638 90,784 101,613
Partnership management (38,509) (22,988) (150,529) (266,201)
2,524 10,650 (59,745) (164,588)
NET INCOME (LOSS) 97,888 (89,451) 104,293 (445,988)
Net income (loss)
attributable to
General Partner(1%) 979 (895) 1,043 (4,460)
Net income (loss)
attributable to
Limited Partners (99%) 96,909 (88,556) 103,250 (441,528)
97,888 (89,451) 104,293 (445,988)
Net income (loss) per Limited
Partner Interest 7.23 (6.61) 7.71 (32.95)
See Notes to Financial Statements
</TABLE>
<PAGE>
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited as to the Nine Months Ended September 30, 1998)
General Limited
Partner Partners'
Capital Capital Total
BALANCES AT 12/31/96 (74,801) 472,061 397,260
Tender offer costs (203) (203)
Distributions to Partners (2,730) (670,018) (672,748)
Net (loss) for the year (6,538) (647,230) (653,768)
BALANCES AT 12/31/97 (84,069) (845,390) (929,459)
Distributions to Partners (2,500) (502,512) (505,012)
Net income for the period 1,043 103,250 104,293
BALANCES AT 9/30/98 (85,526) (1,244,652) (1,330,178)
() denotes deficit or deduction.
See Notes to Financial Statements.
STATEMENTS OF CASH FLOWS - (UNAUDITED)
For The Nine Months Ended September 30,
1998 1997
CASH PROVIDED BY OPERATIONS 1,305,092 501,491
INVESTING ACTIVITIES:
Cash (used in) investing activities
(Additions to investment properties) (245,894) (133,675)
FINANCING ACTIVITIES:
Principal payments on mortgage notes (230,189) (214,208)
Payment of debt issue costs (2,500) 0
Payment of tender offer costs 0 (203)
Distributions paid to limited partners (502,512) (502,512)
NET CASH (USED IN) FINANCING ACTIVITIES (735,201) (716,923)
INCREASE (DECREASE) IN CASH & CASH
EQUIVALENTS 323,997 (349,107)
CASH & CASH EQUIVALENTS AT THE BEGINNING
OF PERIOD 2,171,502 2,620,423
CASH & CASH EQUIVALENTS
AT THE END OF PERIOD 2,495,499 2,271,316
Supplementary disclosure of cash flow information:
Interest paid 1,291,924 1,305,490
Income taxes paid 0 0
See Notes to Financial Statements
Note A--Basis of Presentation
The accompanying unaudited financial statements have been prepared
in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form
10-QSB and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the three and nine month
periods ended September 30, 1998 are not necessarily indicative of
the results that may be expected for the year ended December 31,
1998. For further information, refer to the financial statements
and footnotes thereto included in the Partnership's annual report
on Form 10-KSB for the year ended December 31, 1997.
Note B--Subsequent Event- Refinancing of Meadows II mortgage loans
On September 30, 1998 the Partnership entered into a new nonrecourse
mortgage loan of $9,150,000. The Partnership's Meadows II property
secures the loan. Loan proceeds were used to pay off the
outstanding balances of the prior two loans of approximately $6.44
million. Although the note and mortgage were executed on September
30, 1998, the loan was not funded until the next day, October 1,
1998, and accordingly it is treated as a subsequent event for the
purpose of these financial statements. The loan bears interest at
a fixed rate of 7.25% per annum and is due in seven years on
September 30, 2005. The loan requires monthly payments of principal
and interest of $66,137 based on a 25 year amortization schedule.
A Reserve Account of $45,000 was established from the proceeds of
the loan. Monthly payments to the Reserve Account of $5,267 are
required. The funds in the Reserve Account shall be used for
capital improvements to the property, other than painting,
carpeting, and similar decorating work.
Item 2. Management's Discussion and Analysis.
Certain statements made in this report may constitute "forward-
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such forward-
looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from
any future results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, among
others, the following: general local economic and market conditions,
which will, among other things, affect occupancy levels and market
rents, availability and creditworthiness of prospective tenants, the
terms and availability of financing; adverse changes in the real
estate markets including, among other things, competition with other
companies and technology; risks of real estate development and
acquisition; governmental actions and initiatives; and
environmental/safety requirements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Partnership undertakes no
obligation to publicly release any revisions to these forward-
looking statements, which may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Results of Operations
Operating revenue from rental income was $1,621,200 in the quarter
ended September 30, 1998, compared to $1,531,000 for the same period
of 1997, an increase of 5.9%. For the nine month period ended
September 30, 1998 rental income was $4,889,300 compared to
$4,595,800 for the same period in 1997, an increase of 6.4%. Rental
income was provided by the three sites for the comparative three and
nine month periods as set forth below:
Percent
Three Months Ended Increase Increase
9/30/98 9/30/97 (Decrease) (Decrease)
Pelican Sound 695,900 684,200 11,700 1.7%
Meadows II 516,600 456,900 59,700 13.1%
Town Place 408,700 389,900 18,800 4.8%
Total 1,621,200 1,531,000 90,200 5.9%
Percent
For Nine Months Ended Increase Increase
9/30/98 9/30/97 (Decrease) (Decrease)
Pelican Sound 2,070,500 1,995,900 74,600 3.7%
Meadows II 1,547,600 1,390,700 156,900 11.3%
Town Place 1,271,200 1,209,200 62,000 5.1%
Total 4,889,300 4,595,800 293,500 6.4%
The increased revenues at all three sites are primarily attributable
to rent increases.
The average monthly gross potential rent per unit at the Apartments
for the third quarter of 1998 and for the nine month period of 1998,
and the comparative periods in 1997, is set forth below:
Number Three Months Ended Nine Months Ended
of Units 9/30/98 9/30/97 9/30/98 9/30/97
Pelican Sound 379 626 590 620 584
The Meadows II 316 600 582 594 577
Town Place 240 612 594 605 588
All Rental Units 935 613 589 607 583
"Gross potential rent" represents the asking rent established by the
Partnership for a vacant apartment plus the rent in effect for
occupied apartments.
The average occupancy level at the Apartments for the three and nine
month periods ended September 30, 1998, and the comparable periods
in 1997, is set forth below:
Three Months Ended Nine Months Ended
9/30/98 9/30/97 9/30/98 9/30/97
Pelican Sound 92.5% 97.0% 94.3% 97.3%
The Meadows II 87.8% 88.9% 90.3% 87.0%
Town Place 90.6% 91.0% 94.2% 92.8%
All Rental Units 90.5% 92.7% 92.9% 92.7%
The range of occupancy levels at the Apartments for the three and
nine month periods ended September 30, 1998, and the comparable
periods in 1997, is set forth below:
Three Months Ended Nine Months Ended
9/30/98 9/30/97 9/30/98 9/30/97
Pelican Sound 90.6-93.9% 96.5-97.3% 90.6-97.0% 96.0-98.5%
The Meadows II 86.1-90.3% 84.1-93.1% 86.1-94.7% 83.0-93.1%
Town Place 86.1-95.7% 88.8-93.3% 86.1-97.9% 88.8-94.7%
All Rental Units 89.4-91.8% 91.5-93.7% 89.4-95.2% 91.5-93.7%
Total rental expenses before depreciation and debt service in the
three month period ended September 30, 1998 decreased by $79,000,
from $890,000 to $811,000, compared to the same period of 1997. The
decrease was comprised of decreases at Town Place $48,000 and
Pelican Sound $42,000, offset by an increase at Meadows II of
$11,000.
For the nine month period total rental expense decreased in the 1998
period by $94,000 from $2,692,000 to $2,598,000. The decrease was
comprised of decreases at Pelican Sound of $35,000, and Town Place
of $62,000, offset by an increase at Meadows II of $3,000.
In the third quarter of 1998 the partnership reclassified to capital
expenditures previously expensed in the prior two quarters certain
improvements to the properties at Pelican Sound in the amount of
$15,000 ($9,000 for building exterior and $6,000 for pool deck) and
at Town Place of $55,000 (balcony replacements) for a total of
$70,000. These amounts are reflected as reductions in the operating
expenses for those sites and result in rather favorable comparisons
for the current quarter compared to the third quarter of the prior
year.
A summary of operating expenses before depreciation and debt service
by apartment site follows:
For the Three Months Ended
Increase Increase
(Decrease) (Decrease)
9/30/98 9/30/97 Amount Percent
Pelican Sound 308,000 350,000 (42,000) (12.0%)
Meadows II 292,000 281,000 11,000 3.9%
Town Place 211,000 259,000 (48,000) (18.5%)
Total 811,000 890,000 (79,000) (8.9%)
For The Nine Months Ended
Increase Increase
(Decrease) (Decrease)
9/30/98 9/30/97 Amount Percent
Pelican Sound 1,098,000 1,133,000 (35,000) (3.1%)
Meadows II 834,000 831,000 3,000 (0.4%)
Town Place 666,000 728,000 (62,000) (8.5%)
Total 2,598,000 2,692,000 (94,000) (3.5%)
As a result of increased revenue and reduced expenses, net income
from rental property operations before debt service and depreciation
was approximately $810,000 for the third quarter of 1998, compared
to $641,000 for the comparative period, an increase of approximately
$169,000. The increase was comprised of increases at Town Place
of $68,000, at Pelican Sound of $52,000, and at The Meadows II of
$49,000.
For the nine month period net income from rental operations before
depreciation and debt service was approximately $2,291,000 for the
1998 period compared to $1,904,000 for the comparable 1997 period,
an increase of $387,000. The increase was comprised of increases
at the Meadows II of $154,000, at Town Place of $125,000, and at
Pelican Sound of $108,000.
As a result of the foregoing, net operating income before
depreciation and debt service, the following sets forth the
contributions by site including the percent of total for each site
for the periods for the three months ended:
Increase Increase
9/30/98 9/30/97 (Decrease) (Decrease)
Amount Percent Amount Percent Amount Percent
Pelican Sound 386,000 48% 334,000 52% 52,000 15.6%
Meadows II 225,000 28% 176,000 28% 49,000 27.8%
Town Place 199,000 24% 131,000 20% 68,000 51.9%
Total 810,000 100% 641,000 100% 169,000 26.4%
As a result of the foregoing, net operating income before depreciation
and debt service, the following sets forth the contributions by site for
the periods for the nine months ended:
Increase Increase
9/30/98 9/30/97 (Decrease) (Decrease)
Amount Percent Amount Percent Amount Percent
Pelican Sound 971,000 42% 863,000 45% 108,000 12.5%
Meadows II 714,000 31% 560,000 30% 154,000 27.5%
Town Place 606,000 27% 481,000 25% 125,000 26.0%
Total 2,291,000 100% 1,904,000 100% 387,000 20.3%
Interest expense for the third quarter of 1998 decreased $13,000 from
the comparative period and by $14,000 for the nine month period.
The net income before debt service from real estate activities is
reduced by deductions for depreciation and amortization which do not
affect cash flow. Depreciation decreased $13,500 for the third quarter
of 1998 compared to 1997, and by $44,600 for the nine month period. The
changes in amortization were not material.
The Partnership's net other expenses decreased during the nine month
period in 1998 by approximately $105,000. Partnership management
expenses decreased $116,000, offset by a decrease in interest income of
$11,000. The decrease in partnership management expenses of $116,000 is
primarily attributable to the nonrecurring litigation expenses incurred
in 1997 in the lawsuit against Arnold K. Leas, Wellington Management
Corporation, and WMC Realty, Inc. and for costs incurred for the proxy
solicitation to adopt an amendment to Section 8 of the Limited
Partnership Agreement encaptioned the "Fair Price Provision". The
decrease in interest earned is primarily attributable to income earned
from lower cash holdings in the current period.
As a result of the foregoing, the Partnership's net income for the
quarter ended September 30, 1998 was $98,000, compared to a loss of
$89,000 in the same period of 1997. For the nine month periods the
Partnership's net income for 1998 was $104,000, compared to a loss of
$446,000 for 1997.
Exclusive of depreciation and amortization, the Partnership's net income
for the quarters ended September 30, 1998 and 1997 was $374,000 and
$200,000, and for the nine month periods the net income exclusive of
depreciation and amortization was $918,000 of 1998 and $413,000 for
1997.
Liquidity and Source of Capital
At September 30, 1998 there was $2.6 million of cash and cash
equivalents and escrow deposits available to pay liabilities.
Liabilities not secured by mortgages are approximately $4.8 million at
September 30, 1998, of which approximately $900,000 is payable to an
affiliate of the General Partner and should be considered a long term
liability. The $900,000 represents real estate sales commissions earned
on prior real estate transactions, and interest thereon. Payment to the
affiliate is subordinated to the payment to the Limited Partners of 100%
of their original capital contributions plus a cumulative priority
return of 6% per annum, minus the sum of all prior cash distributions.
Approximately $2.9 million of the remaining short term liabilities
represents amounts due and payable to the General Partner ("deferred
fees") for acquisition services rendered from 1986 to 1993. The
outstanding deferred fees no longer bear interest and therefore
nonpayment does not cause additional expense to the Partnership.
Payment to the General Partner of the deferred fees was delayed in order
to provide additional liquidity to the Partnership for working capital
and to preserve the ability of the Partnership to acquire additional
properties, if deemed advisable. The actual timing of the payment to
the General Partner of the deferred fees of approximately $2.9 million
will take into account the amount of cash reserves to be set aside that
the General Partner deems necessary or appropriate for the operation and
protection of the Partnership.
During the first nine months of 1998, cash and cash equivalents
increased by $323,000. During the period $1,305,000 was provided by
operating activities, $246,000 was used in investing activities and
approximately $735,000 was used in financing activities as shown herein
on the Statements of Cash Flows.
Cash flows provided by operating activities of $1,305,000 was primarily
comprised of net income of $918,000 before depreciation and
amortization, increased by the net change in operating assets and
liabilities of $387,000.
Cash used in investing activities of $246,000 was entirely comprised of
capitalized expenditures.
Net cash used by financing activities of $735,000 was comprised of cash
distributions paid to limited partners of $503,000, and mortgage
principal repayments of $230,000 and $2,000 of new debt issue costs.
The Partnership expects to meet its short-term liquidity requirements,
including capital expenditures relating to maintaining its existing
Apartments, generally through its working capital and net cash provided
by operating activities. The Partnership considers its cash provided by
operating activities to be adequate to meet operating requirements and
payments of distributions. The Partnership also expects to meet its
long-term liquidity requirements, such as scheduled mortgage debt
maturities, and capital improvements through the use of its working
capital cash reserves and the issuance of replacement mortgage
financing.
The Agreement of Limited Partnership provides that the Partnership will
make distributions for each calendar quarter of Cash Flow less amounts
set aside for Reserves. In July the Partnership paid to the Limited
Partners the June declaration of $167,500 ($12.50 per Interest). The
Partnership and declared a similar amount payable for the third quarter
of 1998 to be paid in October 1998. The distribution payable to the
General Partner of $2,500 for the year-to-date was accrued and payment
will be made subsequently. The Partnership intends, but is not
required, to continue to make cash distributions to the Limited Partners
each quarter in the same amount.
The outstanding principal balance on mortgage notes was reduced by
$230,000 during the nine month period. Scheduled regular monthly
mortgage debt principal reductions are approximately $48,000 over the
balance of the year. This excludes the note on Pelican Sound Apartments
which is due in December 1998 with a balloon payment of $9.7 million.
The note provides that the term may be extended for another five years
if the loan is not refinanced and in September the Partnership gave
notice to the lender that it wishes to extend the term of the loan.
Effective October 1, 1998 the Partnership obtained new mortgage
financing on The Meadows II Apartments of $9,150,000 to replace the two
existing mortgage loans that total approximately $6.44 million
(including the outstanding loan from the Department of Housing and Urban
Development) (see Subsequent Event footnote to financial statements).
Additional liquidity of approximately $2.5 million was provided by the
new loan.
The Partnership is also exploring the possibility of refinancing the
outstanding mortgage loans on Pelican Sound Apartments and Town Place
Apartments if lower interest rates are available. The Town Place
mortgage bears interest at 8.25% per annum fixed until maturity in May
2003. The Pelican Sound mortgage bears interest at 7% per annum fixed
until maturity in December 1998 at which time the interest rate may be
increased to a fixed rate not to exceed 9% per annum.
Year 2000 Issue
The Year 2000 issue is the result of computer programs being written
using two digits rather than four to define the applicable year.
Computer equipment and software and devices with imbedded technology
that are time-sensitive may recognize a date using "00" as the year 1900
rather than the year 2000. This could result in a system failure or
miscalculations causing disruptions of operations, including, among
other things, a temporary inability to process transactions, send
invoices, or engage in similar normal business activities.
The General Partner has undertaken various initiatives intended to
ensure that the computer equipment and software that it uses on behalf
of the Partnership will function properly with respect to dates in the
Year 2000 and thereafter. For this purpose, the term "computer
equipment and software" includes systems that are commonly thought of as
IT systems, including accounting, data processing, and telephone/PBX
systems, and other miscellaneous systems as well as systems that are not
commonly thought of as IT systems, such as alarm systems, fax machines,
or other miscellaneous systems. Both IT and non-IT systems may contain
imbedded technology, which complicates the General Partner's Year 2000
identification, assessment, remediation, and testing efforts. Based
upon its identification and assessment efforts to date, the General
Partner believes that certain of the computer equipment and software it
currently uses on behalf of the Partnership will require replacement or
modification. In addition, in the ordinary course of replacing computer
equipment and software, the General Partner attempts to obtain
replacements that are Year 2000 compliant.
The General Partner has identified those areas that could be affected by
the "Year 2000" issue and has developed a plan to resolve this issue.
The General Partner believes that by modifying certain existing hardware
and software and, in other cases, converting to new application systems,
the Year 2000 problem can be resolved without significant operational
difficulties. Utilizing both internal and external resources to
identify and assess needed Year 2000 remediation, the General Partner
currently anticipates that its Year 2000 identification, assessment,
remediation and testing efforts will be completed by June 30, 1999 and
that such efforts will be completed prior to any currently anticipated
impact on its computer equipment and software. The General Partner
estimates that as of September 30, 1998, it had completed approximately
35% of the initiatives that it believes will be necessary to fully
address potential Year 2000 issues relating to its computer equipment
and software. The projects comprising the remaining 65% of the
initiatives are in process and expected to be completed on or about June
30, 1999.
The General Partner has also initiated formal communications with all of
its significant suppliers to determine the extent to which the
Partnership's interface systems are vulnerable to those third parties'
failure to remediate their own Year 2000 issues.
The General Partner believes that the cost of its Year 2000
identification, assessment, remediation and testing efforts, as well as
currently anticipated costs to be incurred by the Partnership with
respect to Year 2000 issues of third parties, will not exceed $50,000.
Such expenditures will be funded from operating cash flows. As of
September 30, 1998 the Partnership had incurred costs of approximately
$16,000 related to its Year 2000 identification, assessment, remediation
and testing efforts. All of the $16,000 relates to analysis, repair or
replacement of existing software, upgrades of existing software, or
evaluation of information received from significant vendors or service
providers. Other non-Year 2000 IT efforts have not been materially
delayed or impacted by Year 2000 initiatives.
The General Partner presently believes that the Year 2000 issue will not
pose significant operational problems for the Partnership. However, if
all Year 2000 issues are not properly identified, or assessment,
remediation and testing are not effected timely with respect to Year
2000 problems that are identified, there can be no assurance that the
Year 2000 issue will not materially adversely impact the Partnership's
results of operations or adversely affect the Partnership's
relationships with customers, vendors, or others. Additionally, there
can be no assurance that the Year 2000 issues of other entities will not
have a material adverse impact on the Partnership's systems or results
of operations.
PART II.
OTHER INFORMATION
Item 1. Legal Proceeding.
There is no material pending litigation.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
The Partnership did not file any reports on Form 8-K during the three
months ended September 30, 1998.
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.
DECADE COMPANIES INCOME PROPERTIES -
A LIMITED PARTNERSHIP
(Registrant)
By: DECADE COMPANIES
(General Partner)
Date: November 16, 1998 By:/s/ Jeffrey Keierleber
Jeffrey Keierleber
General Partner and Principal
Financial and Accounting Officer
of Registrant
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE>
<MULTIPLIER>
<S>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 2,620,401
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 45,199
<PP&E> 31,627,302
<DEPRECIATION> 8,389,650
<TOTAL-ASSETS> 26,119,225
<CURRENT-LIABILITIES> 4,081,463
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (1,330,178)
<TOTAL-LIABILITY-AND-EQUITY> 26,119,225
<SALES> 4,889,274
<TOTAL-REVENUES> 4,980,058
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,562,945
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,312,820
<INCOME-PRETAX> 104,293
<INCOME-CONTINUING> 104,293
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 104,293
<EPS-PRIMARY> 7.71
<EPS-DILUTED> 7.71
</TABLE>
