SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
_X_ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995
___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to ______________
Commission file number 0-15796
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Corporate Realty Income Fund I, L.P.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3311993
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(State of organization) (I.R.S. Employer
identification No.)
406 East 85th Street, New York, New York 10028
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 794-3292
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Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 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
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
Index
Page No.
--------
Part I Financial information 3
Balance Sheets --
March 31, 1995 and December 31, 1994 4
Statements of Operations --
For the three months ended March 31, 1995 and 1994 5
Statements of Cash Flows --
For the three months ended March 31, 1995 and 1994 6
Notes to the Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II Other information 10
Signatures 11
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PART I. FINANCIAL INFORMATION
Item I. Financial Statements
The summarized financial information contained herein is unaudited; however,
in the opinion of management, all adjustments necessary for a fair
presentation of such financial information have been included.
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1995 AND DECEMBER 31, 1994
MARCH 31, DECEMBER 31,
1995 1994
------------ ------------
(Unaudited)
ASSETS
Real estate, at cost:
Land $13,598,425 $13,598,425
Buildings and improvements 70,989,457 70,987,144
---------- ----------
84,587,882 84,585,569
Less accumulated depreciation 14,155,718 13,571,654
---------- ----------
70,432,164 71,013,915
Cash and short-term investments at cost,
which approximates market value 1,059,675 1,291,972
Accounts receivable 45,281 45,281
Note receivable 23,041 24,787
Investments in marketable securities 122,562 100,897
Step rent receivables 2,331,642 2,240,931
Deferred charges, net of accumulated
amortization of $14,625 in 1994 --- 4,875
Lease commissions, net of accumulated
amortization of $729,615 in 1995
and $652,478 in 1994 1,549,360 1,579,429
Deposits 33,142 33,142
Other assets 21,505 53,763
----------- -----------
Total assets $75,618,372 $76,388,992
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Mortgage loan payable $7,800,000 $ 7,800,000
Accounts payable and accrued expenses 504,303 699,104
Due to affiliates 31,634 71,885
Other liabilities 288,253 297,747
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Total liabilities 8,624,190 8,868,736
---------- ----------
Partners' Capital (Deficit):
General partners:
Capital contributions 1,000 1,000
Net income 357,705 353,269
Cash distributions (427,522) (417,825)
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(68,817) (63,556)
--------- --------
Limited partners: ($25 per unit; 4,000,000 units
authorized, 3,200,000 issued and outstanding)
Capital contributions, net of offering costs 74,051,897 74,051,897
Net income 35,412,701 34,973,514
Cash distributions (42,401,599) (41,441,599)
----------- -----------
67,062,999 67,583,812
------------ -----------
Total partners' capital 66,994,182 67,520,256
------------ -----------
Total liabilities and partners' capital $75,618,372 $76,388,992
============ ===========
See accompanying notes to financial statements.
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
1995 1994
---------- ----------
Income:
Rental $2,117,751 $1,711,496
Interest and other income 14,469 25,276
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2,132,220 1,736,772
========== ==========
Expenses:
Interest 179,833 126,750
Depreciation 584,064 481,436
Amortization 82,011 51,229
Property operating 648,314 596,031
Management fees 132,228 70,477
General and administrative 83,812 71,442
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1,710,262 1,397,365
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Net income from real estate operations 421,958 339,407
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Gain on sales of marketable securities -- 813,300
Unrealized gain on marketable securities 21,665 281,800
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21,665 1,095,100
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Net income $ 443,623 $1,434,507
========== ==========
Net income allocated:
To the general partners $ 4,436 $ 14,345
To the limited partners 439,187 1,420,162
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$ 443,623 $1,434,507
========== ==========
Net income per unit of limited
partnership interest $0.14 $0.44
========== ==========
See accompanying notes to financial statements.
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
Increase/(Decrease) in Cash
(Unaudited)
1995 1994
---------- ----------
Cash flows from operating activities:
Net income $443,623 $1,434,507
---------- ----------
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 666,075 532,665
Unrealized gain on marketable securities (21,665) (281,800)
Changes in operating assets and liabilities:
Decrease (increase) in:
Accounts receivable --- (957,184)
Note receivable 1,746 1,117
Step rent receivables (90,711) (34,283)
Lease commissions (47,067) (49,271)
Other assets 32,258 21,613
Increase (decrease) in:
Accounts payable and accrued expenses (194,801) (261,824)
Due to affiliates (40,251) (79,117)
Other liabilities (9,494) 4,436
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Total adjustments 296,090 (1,103,648)
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Net cash provided by operating activities 739,713 330,859
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Cash flows from investing activities:
Acquisition of real estate (2,313) (103,102)
Increase in deferred charges --- (19,500)
Sales of marketable securities --- 2,044,500
Net cash provided by (used in) --------- ---------
investing activities (2,313) 1,921,898
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Cash flows from financing activities:
Cash distributions to partners (969,697) (646,645)
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Cash used in financing activities (969,697) (646,645)
--------- ---------
Net increase (decrease) in cash and
short-term investments (232,297) 1,606,112
Cash and short-term investments at
beginning of period 1,291,972 822,310
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Cash and short-term investments at end of period $1,059,675 $2,428,422
========== ==========
See accompanying notes to financial statements.
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(UNAUDITED)
1. GENERAL
The accompanying financial statements and related notes should be read in
conjunction with the Partnership's annual report for the year ended December
31, 1994 as certain footnote disclosures which would substantially duplicate
those contained in such audited financial statements have been omitted from
this report.
2. RENTAL INCOME
In accordance with the Financial Accounting Standards Board Statement No. 13,
"Accounting for Leases," the Partnership recognizes rental income on a
straight-line basis over the fixed term of the lease period. Step rent
receivables represent unbilled future rentals. The following reconciles
rental income received in cash to rental income recognized.
Three Months Ended
-----------------------
1995 1994
------- -------
Rental income received in cash $2,027,040 $1,677,213
Step rent receivables 90,711 34,283
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Rental income recognized $2,117,751 $1,711,496
========== ==========
3. LEASES
Minimum future rentals under noncancellable operating leases as of March 31,
1995 are as follows:
Year ending December 31
-----------------------
1995 $4,988,000
1996 5,753,000
1997 5,453,000
1998 5,142,000
1999 4,792,000
Thereafter 9,917,000
-----------
Total $36,045,000
===========
In addition to the minimum lease amounts, the leases provide for escalation
charges to the tenants for operating expenses and real estate taxes.
Escalation charges have been included in rental income. For the three months
ended March 31, 1995 and 1994, escalation charges amounted to $365,737 and
$396,261, respectively.
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(UNAUDITED)
4. TRANSACTIONS WITH GENERAL PARTNERS AND AFFILIATES
Fees earned and reimbursable expenses for the three months ended March 31,
1995 and the unpaid portion at March 31, 1995 are:
Three
Months Payable
-------- -------
Partnership management fees $64,356 $31,634
Property management fees 67,872
Administration expenses 11,297
During the three months ended March 31, 1995, the Partnership paid to the
General Partners leasing commissions in the amount of $45,146.
5. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest during the three months ended March 31, 1995 and
1994 amounted to $118,083 and $126,750, respectively.
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Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations for the three months ended March 31, 1995.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1995, the Partnership had cash and working capital of
approximately $1,059,000 which was invested in unaffiliated money market
funds and interest-bearing bank accounts. In addition, the Partnership owns
2,476 shares of common stock (issued by National Gypsum Company in satisfaction
of the Partnership's claims in National Gypsum's bankruptcy), with a market
value as of March 31, 1994 of approximately $122,000. The Partnership must sell
or otherwise liquidate such shares to supplement funding of its capital
requirements, including tenant improvements.
All of the Partnership's buildings are now fully leased. The Directory
Building is 100% leased to GTE Directories Corporation ("GTE") pursuant to a
lease dated as of April 20, 1994, as amended. The initial term of the lease
expires on September 30, 2000.
The Partnership anticipates expending approximately $325,000 for tenant
improvements at the Directory Building during 1995.
The Partnership expects sufficient cash flow to be generated from
operations to meet its current operating and debt service requirements on a
short-term and long-term basis. The Partnership's only significant liability is
a mortgage loan of $7,800,000. The lender, Pittsburgh National Bank, has agreed
to extend the maturity date of the subject loan from March 31, 1995 until March
31, 1996. In connection with such extension, the loan is being converted to a
one-year secured revolving line of credit bearing the same rate of interest as
the original loan. The Partnership and the Bank are in the process of
finalizing the subject extension. It is anticipated that the extension
documentation will be finalized and signed prior to the end of May, 1995.
RESULTS OF OPERATIONS
Rental revenues in the first quarter of 1995 increased from 1994 primarily
as the result of the occupancy of the Directory Building by GTE. Management
fees paid to the general partners during the first quarter increased in 1995
from 1994, reflecting an increase in adjusted cash from operations. In
addition, net income increased as a result of the unrealized gain from marking
the balance of the Partnership's National Gypsum securities (issued to the
Partnership by National Gypsum Company in satisfaction of the Partnership's
claims in National Gypsum's bankruptcy) to market value at March 31, 1995.
Unrealized gains are determined by the market value of the securities and,
therefore, are subject to market fluctuations.
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) None.
(b) No reports on Form 8-K were filed during the quarter in which this
report is filed.
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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.
CORPORATE REALTY INCOME FUND I, L.P
(Registrant)
Date: May 9, 1995 By: __/s/Robert F. Gossett, Jr._____
Robert F. Gossett, Jr.
President, Director
Date: May 9, 1995 By: __/s/Pauline G. Gossett_________
Pauline G. Gossett
Treasurer, Vice President
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