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, 1999.
[ ]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)
(262) 792-9200
(Issuer's telephone number)
Not Applicable
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, 1999
PART I. FINANCIAL INFORMATION Page
Item 1.Financial Statements (unaudited as to
September 30, 1999 and the three months
and nine months then ended).
Balance Sheet at September 30, 1999. 3
Statements of Operations for the three
months and nine months ended September 30, 1999
and 1998 4
Statements of Partners' Capital
for the nine months ended September 30, 1999
and the year ended December 31, 1998. 5
Statements of Cash Flows for the nine months
ended September 30, 1999 and 1998. 6
Notes to Financial Statements. 7
Item 2. Management's Discussion and Analysis or Plan
of Operations 7 - 17
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 17
Item 6. Exhibits and Reports on Form 8-K. 17
SIGNATURES 18
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Decade Companies Income Properties - A Limited Partnership
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEET
September 30, 1999
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,693,859
Escrow deposits 298,650
Prepaid expenses and other assets 875
Total Current Assets 1,993,384
INVESTMENT PROPERTIES, AT COST: 32,230,682
Less: accumulated depreciation (9,409,939)
Net Investment Property 22,820,743
OTHER ASSETS:
Utility deposits 40,453
Debt issue costs, net of accumulated
amortization 306,633
Total Other Assets 347,086
Total Assets $25,161,213
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and
accrued taxes $ 608,348
Tenant security deposits 120,439
Distributions payable 170,504 Accrued
interest payable 81,656
Payables to affiliates 3,925,980
Mortgage notes payable 22,534,592
Total Liabilities 27,441,519
PARTNERS' CAPITAL:
General Partner Capital (91,991)
Limited Partners
(authorized--18,000 Interests;
outstanding--13,400.27 Interests) (2,188,315)
Total Partners' Capital (2,280,306)
Total Liabilities and Partners' Capital $25,161,213
See Notes to Unaudited Financial Statements.
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Nine Months Ended
9/30/99 9/30/98 9/30/99 9/30/98
Operating revenue:
Rental income $ 1,646,930 $1,621,192 $ 4,812,357 $4,889,274
Operating expenses (740,381) (622,798) (2,097,338) (2,047,052)
Real estate taxes (187,791) (188,494) (561,374) (551,377)
Total operating
expenses (928,172) (811,292) (2,658,712) (2,598,429)
Net operating income 718,758 809,900 2,153,645 2,290,845
Interest expense (448,424) (438,624) (1,340,406) (1,312,820)
Depreciation (251,300) (267,400) (747,650) (787,800)
Amortization (13,150) (8,512) (39,450) (26,187)
Net income (loss) from
investment property 5,884 95,364 26,139 164,038
Other income (expenses):
Interest income 21,233 41,033 61,335 90,784
Partnership
management (44,189) (38,509) (178,057) (150,529)
(22,956) 2,524 (116,722) (59,745)
NET INCOME (LOSS) $(17,072)$ 97,888 $ (90,583) $104,293
Net income (loss)
attributable to General
Partner(1%) $ (171)$ 979 $ (906) $ 1,043
Net income (loss)
attributable to Limited
Partners (99%) (16,901) 96,909 (89,677) 103,250
$ (17,072) $ 97,888 $ (90,583) $104,293
Net income (loss) per Limited
Partner Interest $ (1.26)$ 7.23 $ (6.69) $ 7.71
See Notes to Unaudited Financial Statements
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited as to the Nine Months Ended September 30, 1999)
General Limited
Partner Partners'
Capital Capital Total
BALANCES AT 12/31/97 $(84,069) $ (845,390) $ (929,459)
Distributions to Partners (3,201) (670,016) (673,217)
Net (loss) for the year (815) (80,720) (81,535)
BALANCES AT 12/31/98 $(88,085) $(1,596,126) $(1,684,211)
Distributions to Partners (3,000) (502,512) (505,512)
Net (loss) for the period (906) (89,677) (90,583)
BALANCES AT 9/30/99 $(91,991) (2,188,315) $(2,280,306)
() denotes deficit or deduction.
See Notes to Unaudited Financial Statements.
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STATEMENTS OF CASH FLOWS - (UNAUDITED)
For The Nine Months Ended June 30,
1999 1998
CASH PROVIDED BY OPERATIONS $ 931,420 $ 554,946
INVESTING ACTIVITIES:
Additions to investment property (315,012) (74,821)
FINANCING ACTIVITIES:
Principal payments on mortgage notes (219,650) (154,484)
Payments of financing costs (65,000) -0-
Distributions paid to limited partners (502,512) (335,008)
Distributions paid to general partner (3,201) -0-
NET CASH (USED IN) FINANCING ACTIVITIES (790,363) (489,492)
INCREASE (DECREASE) IN CASH & CASH
EQUIVALENTS (173,955) (9,367)
CASH & CASH EQUIVALENTS AT THE BEGINNING
OF PERIOD 1,867,814 2,171,502
CASH & CASH EQUIVALENTS
AT THE END OF PERIOD $1,693,859 $2,162,135
Supplementary disclosure of cash flow information:
Interest paid $1,318,192 $ 860,257
Income taxes paid 0 0
See Notes to Unaudited Financial Statements
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Decade Companies Income Properties - A Limited Partnership
June 30, 1998
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Decade Companies Income Properties - A Limited Partnership
Form 10-QSB
September 30, 1999
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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, 1999 are not necessarily indicative of the
results that may be expected for the year ended December 31, 1999. 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, 1998.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Forward-Looking Information
Forward-looking statements in this report, including without limitation,
statements relating to Decade Companies Income Properties (the "Partnership")
plans, strategies, objectives, expectations, intentions and adequacy of
resources, are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that such
forwarded-looking statements involve risks and uncertainties including without
limitation the following: (i) consistent with the Limited Partnership
Agreement the Partnership's plans, strategies, objectives, expectations and
intentions are subject to change at any time at the discretion of the General
Partner; (ii) the Partnership's plans and results of operations will be
affected by the Partnership's ability to manage its growth (iii) other risks
and uncertainties indicated from time to time in the Partnership's filings
with the Securities and Exchange Commission.
Information contained in this Quarterly Report on Form 10-QSB contains
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, which can be identified by the use of
forward-looking terminology such as "may," "will," "expect, "anticipate,"
"estimate" or "continue" or the negative thereof or other variations thereon
or comparable terminology. There are number of important factors with respect
to such forward looking statements, including certain risks and uncertainties,
that could cause actual results to differ materially from those contemplated
in such forward-looking statements. Such factors, which could adversely
effect the Partnership's ability to obtain these results, include, among other
things, (i) the volume of transactions and prices for real estate in the real
estate markets generally, (ii) a general or regional economic downturn which
could create a recession in the real estate markets, (iii) the Partnership's
debt level and its ability to make interest and principal payments, (iv) an
increase in expenses related to new initiatives, investments in people and
technology, and service improvements, (v) the success of the new initiatives
and investments and (vi) other factors described elsewhere in this Quarterly
Report on Form 10-QSB including Year 2000 issues.
Results of Operations
Operating revenue from rental income was $1,647,000 in the quarter ended
September 30, 1999, compared to $1,621,200 for the same period of 1998, an
increase of 1.6%. Rental income was provided by the three sites for the
comparative three month periods as set forth below:
Percent
Three Months Ended Increase Increase
9/30/99 9/30/98 (Decrease) (Decrease)
Pelican Sound $ 710,400 $ 695,900 $ 14,500 2.1%
Meadows II 507,400 516,600 (9,200) (1.8%)
Town Place 429,200 408,700 20,500 5.0%)
Total $1,647,000 $1,621,200 $ 25,800 1.6%
The $26,000 increase in rental income for the third quarter, compared to the
prior year's third quarter, is attributed primarily to a 2.1% increase in
gross potential rent partially offset by a small decrease in occupancy (from
90.5% to 90.3%). The $26,000 increase consisted of an increase at Pelican
Sound of $15,000 and an increase at Town Place of $20,000, offset by a
decrease at Meadows II of $9,000. The $20,000 increase at Town Place is
attributed to a 1.8% increase in gross potential rent, and a 3.3% increase in
average occupancy (from 90.6% to 93.9%). The $15,000 increase at Pelican
Sound is attributed to a 1.7% increase in gross potential rent, and a 0.4%
increase in average occupancy (from 92.5% to 92.9%). The $9,000 net decrease
at The Meadows II is attributed to a 2.7% increase in gross potential rent
offset by a 3.5% decrease in average occupancy (from 87.8% to 84.3%). The
third quarter occupancy of 90.3% improved over the second quarter average of
89.3%.
Operating revenue from rental income for the nine month period ended September
30, 1999 was $4,812,400 compared to $4,889,300 for the same period in 1998, a
decrease of 1.6%. Rental income was provided by the three sites for the
comparative nine month periods as set forth below:
Percent
For Nine Months Ended Increase Increase
9/30/99 9/30/98 (Decrease) (Decrease)
Pelican Sound $2,069,300 $2,070,500 $ (1,200) (0.1%)
Meadows II 1,521,700 1,547,600 (25,900) (1.7%)
Town Place 1,221,400 1,271,200 (49,800) (3.9%)
Total $4,812,400 $4,889,300 $ (76,900) (1.6%)
The $77,000 decrease in rental income for the nine month period, compared to
the prior year's same nine month period, is attributed primarily to a 3.4%
decrease in occupancy (from 93.0% to 89.6%), partially offset by a 2.8%
increase in gross potential rent. The $77,000 decrease consisted of decreases
at all three apartment sites: Town Place ($1,000), Meadows II ($26,000), and
Pelican Sound ($50,000). The $50,000 decrease at Pelican Sound is attributed
to a 2.4% increase in gross potential rent, offset by a 2.2% decrease in
average occupancy (from 94.3% to 92.1%). The $26,000 decrease at The Meadows
II is attributed to a 3.1% increase in gross potential rent offset by a 4.7%
decrease in average occupancy (from 90.3% to 85.6%). The $1,000 decrease at
Town Place is attributed to a 2.9% increase in gross potential rent, offset by
a 3.2% decrease in occupancy (from 94.2% to 91.0%). The decrease in
occupancy for the nine month period is viewed as a direct response to the
efforts made during 1999 to increase asking rents. Although occupancy
decreased at all three apartment sites for the nine months in 1999 compared to
the prior period, the General Partner does not believe this is the start of a
trend to lower occupancy and revenues.
The average monthly gross potential rent per unit at the Apartments for the
third quarter of 1999 and for the nine month period of 1999, and the
comparative periods in 1998, is set forth below:
Number Three Months Ended Nine Months Ended
of Units 9/30/99 9/30/98 9/30/99 9/30/98
Pelican Sound 379 $637 $626 $635 $620
The Meadows II 316 $616 $600 $612 $594
Town Place 240 $623 $612 $622 $605
All Rental Units 935 $625 $614 $624 $607
"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 third quarter ended
September 30, 1999 and for the nine month period of 1999, and the comparable
periods in 1998, is set forth below:
Three Months Ended Nine Months Ended
9/30/99 9/30/98 9/30/99 9/30/98
Pelican Sound 92.9% 92.5% 92.1% 94.3%
The Meadows II 84.3% 87.8% 85.6% 90.3%
Town Place 93.9% 90.6% 91.0% 94.3%
All Rental Units 90.3% 90.5% 89.6% 92.9%
The range of occupancy levels at the Apartments for the third quarter period
ended September 30, 1999 and for the nine month period of 1999, and the
comparable periods in 1998, is set forth below:
Three Months Ended Nine Months Ended
9/30/99 9/30/98 9/30/99 9/30/98
Pelican Sound 92.1-93.9% 89.4-91.8% 88.5-94.2% 89.4-95.2%
The Meadows II 79.4-88.9% 86.1-90.3% 79.0-89.1% 86.1-94.7%
Town Place 93.2-94.8% 86.1-95.7% 85.6-94.8% 86.1-97.9%
All Rental Units 88.3-92.5% 89.4-91.8% 87.9-92.5% 89.4-95.2%
Total rental expenses before depreciation and debt service in the three month
period ended September 30, 1999 increased by $118,000 (14.5%), from $811,000
to $929,000, compared to the same period of 1998. The increase was comprised
of increases at Pelican Sound of $71,000, Meadows II of $38,000, and at Town
Place of $9,000. The increases for the quarter are primarily attributable to
the timing of incurring repairs, maintenance and similar costs which were
incurred in the third quarter.
For the nine month period total rental expenses decreased by $61,000 (2.3%),
from $2,598,000 to $2,659,000. The increases were comprised of increases at
Pelican Sound of $12,000, at The Meadows II of $41,000, and Town Place of
$8,000.
A summary of operating expenses before depreciation and debt service by
apartment site follows:
For the Three Months Ended
Increase Increase
(Decrease) (Decrease)
9/30/99 9/30/98 Amount Percent
Pelican Sound $379,000 $308,000 $ 71,000 23.1%
Meadows II 330,000 292,000 38,000 13.0%
Town Place 220,000 211,000 9,000 4.3%
Total $929,000 $811,000 $118,000 14.5%
For The Nine Months Ended
Increase Increase
(Decrease) (Decrease)
9/30/99 9/30/98 Amount Percent
Pelican Sound $1,110,000 $1,098,000 $ 12,000 1.1%
Meadows II 875,000 834,000 41,000 4.9%
Town Place 674,000 666,000 8,000 1.2%
Total $2,659,000 $2,598,000 $ 61,000 2.3%
Net income from rental property operations before debt service, depreciation
and amortization, was approximately $718,000 for the third quarter of 1999,
compared to $810,000 for the comparative period, a decrease of approximately
$92,000. The decrease was comprised of decreases at Pelican Sound of $55,000,
and at Meadows II of $47,000, offset by an increase at Town Place of $10,000.
For the nine month period net income from rental operations before
depreciation, amortization, and debt service was approximately $2,153,000 for
the 1999 period compared to $2,291,000 for the comparable 1998 period, a
decrease of $138,000. The decrease was comprised of decreases at the Meadows
II of $67,000, Town Place of $59,000, and at Pelican Sound of $12,000.
As a result of the foregoing, a summary of net operating income before
depreciation, amortization, and debt service, by site including the percent of
total for each site for three month periods ended follows:
Increase Increase
9/30/99 9/30/98 (Decrease)(Decrease)
Amount Percent Amount Percent Amount Percent
Pelican Sound $331,000 46% $386,000 48% $(55,000) (14.2)
Meadows II 178,000 25% 225,000 28% (47,000) (20.9%)
Town Place 209,000 29% 199,000 24% 10,000 5.0%
Total $718,000 100% $810,000 100% $(92,000) (11.4%)
As a result of the foregoing, a summary of net operating income before
depreciation, amortization, and debt service, by site for the nine month
periods ended:
Increase Increase
9/30/99 9/30/98 (Decrease) (Decrease)
Amount Percent Amount Percent Amount Percent
Pelican Sound $ 959,000 45% $ 971,000 43% $ (12,000) (1.2%)
Meadows II 647,000 30% 714,000 31% (67,000) (9.4%)
Town Place 547,000 25% 606,000 26% (59,000) (9.7%)
Total $2,153,000 100% $2,291,000 100% $(138,000) (6.0%)
Interest expense for the third quarter of 1999 increased $10,000 from the
comparative period and increased $28,000 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 $16,000 for the third quarter of 1999 compared to 1998,
and decreased by $40,000 for the nine month period. Amortization increased
for the third quarter of 1999 by $4,600 and by $13,300 for the nine month
period.
The Partnership's net other expenses increased during the nine month period in
1999 by approximately $57,000. Partnership management expenses increased
$28,000 and interest income decreased $29,000. The decrease interest income
is attributable to a smaller investment portfolio to generate such income.
As a result of the foregoing, the Partnership's net loss for the quarter ended
September 30, 1999 was $17,000, compared to income of $98,000 in the same
period of 1998. For the nine month periods the Partnership's net loss for
1999 was $91,000, compared to net income of $104,000 for 1998.
Exclusive of depreciation and amortization, the Partnership's net income for
the quarters ended September 30, 1999 and 1998 was $247,000 and $373,000, and
for the nine month periods the net income exclusive of depreciation and
amortization was $697,000 of 1999 and $918,000 for 1998.
Liquidity and Sources of Capital
At September 30, 1999 there was $2.0 million of cash and cash equivalents and
escrow deposits available to pay liabilities. The Partnership has a credit
line established of approximately $2.56 million from the undisbursed funds
from The Meadows II refinancing to provide additional liquidity. The
undisbursed funds do not bear interest until they are released by the mortgage
lender.
During the first nine months of 1999, cash and cash equivalents decreased by
$174,000. During the period $931,000 was provided operating activities,
$315,000 was used in investing activities and approximately $790,000 was used
in financing activities that included payments on the mortgage notes,
distributions paid to the limited partners and financing costs paid in
connection with the refinancing of Pelican Sound on October 5, 1999 as shown
herein on the Statements of Cash Flows.
The General Partner believes that the Partnership has the ability to generate
adequate amounts of cash to meet the Partnership's current needs.
Short-term obligations total $4.3 million, consisting of $981,000 of current
liabilities, $312,000 of mortgage principal liabilities, and as described in
detail below, $3,002,000 payable to the General Partner and affiliates.
On a short-term basis, rental operations are expected to provide a stream of
cash flow to pay day-to-day operating expenses and to fund quarterly cash
distributions to the partners. Operations generated a profit in the first
nine months of 1999 of $697,000 (before depreciation and amortization of
$787,000) compared to $918,000 for the same period in 1998 (with depreciation
and amortization of $814,000).
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) and declared a similar amount
payable for the third quarter of 1999 to be paid in October. The estimated
distribution payable to the General Partner of $1,000 for the quarter 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. This intention will require cash
distributions to the limited partners of approximately $670,000 in the next 12
months, which should be met from operations and cash reserves.
The long-term mortgage obligations of the Partnership require principal
reductions (excluding balloon payments) of $1.7 million over the next five
years. These obligations should be satisfied by cash generated from
operations. In the year 2003 the mortgage note on Town Place requires a
balloon payment of $6.0 million. It is anticipated that Town Place will be
sold or refinanced prior to the maturity date in 2003. The Partnership is
exploring the possibility of refinancing the Town Place mortgage loan during
1999 if lower interest rates are available. Additional proceeds from the
refinancing in excess of the existing mortgage debt would provide additional
liquidity.
On October 5, 1999, subsequent to the end of the third quarter, the mortgage
loan on Pelican Sound Apartments was refinanced with a new $13,000,000
nonrecourse mortgage loan. This paid off the balance of the prior mortgage of
$9,597,000. Net loan proceeds of $3,111,000 were not disbursed at closing.
The Partnership elected to defer the receipt of such funds at closing and has
the option until December 31, 1999 to receive the additional amount. The new
loan is due in seven years in October 2006 with interest fixed at 7 1/2%. The
prior note had an interest rate of 7.625%. Monthly payments of principal
and interest of $73,749 begin on November 5, 1999. The monthly payment will
be adjusted when the additional loan proceeds are released.
Approximately $3.9 million of deferred fees and deferred interest related
thereto has been earned by the General Partner and affiliates, of which
approximately $3.0 million is a short term obligation of the Partnership
currently due and payable. To date the Partnership has not paid the $3.0
million of deferred fees and deferred interest in order to preserve the
ability of the Partnership to acquire additional properties, if deemed
advisable. The actual timing of the payment of deferred fees and related
interest will take into account the amount of cash reserves to be set aside
that the General Partner deems necessary or appropriate for the operation of
the Partnership. The General Partner currently intends to make payment only
after it is determined that the liquidity is not required to purchase
additional properties, either directly or by means of an exchange.
Other than the payments described above, there are no long-term material
capital expenditures, obligations, or other demands or commitments that might
impair the liquidity of the Partnership.
Partners' Capital decreased by $596,000 during the first nine months of 1999
due to cash distributions declared payable to the partners of $505,000, plus
by the net loss for the nine months of $91,000.
Impact of Year 2000 Compliance
As is more fully described in the Partnership's annual report on Form 10-KSB
for the fiscal year ended December 31, 1998, the General Partner is modifying
or replacing significant portions of its software as well as certain hardware
to enable continued operations beyond December 31, 1999. As of September 30,
1999, the General Partner estimates its progress toward completion of its Year
2000 remediation plan as indicated in the following table.
Operating
Equipment
IT with
Systems Embedded Chips Products Third Party
Resolution Phase (Estimated Percent Complete at June 30, 1999)
Assessment 100% 100% 100% 100%
Remediation 100% 90% 100% 90%
Testing 95% 90% 100% 85%
Implementation 75% 90% 95% 80%
Expected
Completion Date 11/30/99 12/15/99 11/30/99 11/30/99
To date, the Partnership has incurred costs of $55,000 for the Year 2000
project. The General Partner now estimates that the Partnership's share of
total project cost will be $60,000. The General Partner's assessment of the
risks associated with the Year 2000 project and the status of the
Partnership's contingency plans are unchanged from that described in the Form
10-KSB annual report.
The Partnership's plans to complete the Year 2000 modifications are based on
the General Partner's best estimates, which are based on numerous assumptions
about future events including the continued availability of certain resources
and other factors. Estimates on the status of completion and the expected
completion dates are based on the level of effort expended to date to total
expected (internal) staff effort. However, there can be no guarantee that
these estimates will be achieved and actual results could differ materially
from those plans. Specific factors that might cause such material differences
include, but are not limited to, the availability and cost of personnel
trained in this area, the ability to locate and correct all relevant computer
codes and similar uncertainties.
The information above contains forward-looking statements, including, without
limitation, statements relating to the Partnership's plans, strategies,
objectives, expectations, intentions, and adequate resources that are made
pursuant to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Readers are cautioned that forward-looking statements
about Year 2000 should be read in conjunction with the Partnership's
disclosures under the heading Forward-Looking Information.
PART II.
OTHER INFORMATION
Item 1. Legal Proceeding.
There is no material pending litigation.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
The following exhibit is included herein:
(27) Financial Data Schedule
The Partnership did not file any reports on Form 8-K during the three months
ended September 30, 1999.
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Decade Companies Income Properties - A Limited Partnership
Form 10-QSB
September 30, 1999
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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 10, 1999 By:/s/ Jeffrey
Keierleber Jeffrey Keierleber
General Partner and
Principal Financial and Accounting
Officer of Registrant <PAGE><PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPILER>
<S>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 1,992,509
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,993,384
<PP&E> 32,230,682
<DEPRECIATION> 9,409,939
<TOTAL-ASSETS> 25,161,213
<CURRENT-LIABILITIES> 4,380,406
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (2,280,306)
<TOTAL-LIABILITY-AND-EQUITY> 25,161,213
<SALES> 4,812,357
<TOTAL-REVENUES> 4,873,692
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,623,869
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,340,406
<INCOME-PRETAX> (90,583)
<INCOME-CONTINUING> (90,583)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (90,583)
<EPS-BASIC> (6.69)
<EPS-DILUTED> (6.69)
</TABLE>
