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 June 30, 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.
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(Exact name of registrant as specified in its charter)
Delaware 13-3311993
--------------------- ---------------
(State of organization) (I.R.S. Employer
identification No.)
406 East 85th Street, New York, New York 10028
----------------------------------------- --------
(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 --
June 30, 1995 and December 31, 1994 4
Statements of Operations --
For the three months ended June 30, 1995 and 1994 5
Statements of Operations --
For the six months ended June 30, 1995 and 1994 6
Statements of Cash Flows --
For the six months ended June 30, 1995 and 1994 7
Notes to the Financial Statements 8
Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
Part II Other information 11
Signatures 12
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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 necessare 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
June 30, 1995 and December 31, 1994
June 30, December 31,
1995 1994
----------- -----------
(Unaudited)
ASSETS
Real estate, at cost:
Land $13,598,425 $13,598,425
Buildings and improvements 71,171,008 70,987,144
---------- ----------
84,769,433 84,585,569
Less accumulated depreciation 14,739,782 13,571,654
---------- ----------
70,029,651 71,013,915
Cash and short-term investments at cost,
which approximates market value 742,424 1,291,972
Accounts receivable 3,533 45,281
Note receivable 21,276 24,787
Investments in marketable securities -- 100,897
Step rent receivables 2,422,353 2,240,931
Deferred charges, net of accumulated
amortization of $14,625 in 1994 41,276 4,875
Lease commissions, net of accumulated amort.
of $806,750 in 1995 and $652,478 in 1994 1,640,081 1,579,429
Deposits 33,142 33,142
Other assets 99,898 53,763
--------- ----------
Total assets $75,033,634 $76,388,992
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Mortgage loan payable $ 7,800,000 $ 7,800,000
Accounts payable and accrued expenses 421,795 699,104
Due to affiliates -- 71,885
Other liabilities 290,127 297,747
--------- ---------
8,511,922 8,868,736
--------- ----------
Partners' Capital:
General partners:
Capital contributions 1,000 1,000
Net income 362,677 353,269
Cash distributions (437,219) (417,825)
---------- ----------
(73,542) (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 35,904,956 34,973,514
Cash distributions (43,361,599) (41,441,599)
---------- ---------
66,595,254 67,583,812
----------- ----------
Total partners' capital 66,521,712 67,520,256
---------- ----------
Total liabilities and partners' capital $75,033,634 $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 June 30, 1995 and 1994
(Unaudited)
1995 1994
---------- ---------
Income:
Rental $2,250,476 $1,739,732
Interest and other income 11,932 15,144
--------- ---------
2,262,408 1,754,876
--------- ---------
Expenses:
Interest 187,309 146,304
Depreciation 584,064 481,437
Amortization 77,136 30,822
Property operating 710,219 591,170
Management fees 132,428 69,082
General and administrative 80,042 75,185
--------- ---------
1,771,198 1,394,000
--------- ---------
Net income from real estate operations 491,210 360,876
--------- ---------
Gain on sales of marketable securities 27,682 -
Unrealized loss on marketable securities (21,665) (258,225)
--------- ----------
6,017 (258,225)
--------- ----------
Net income $ 497,227 $ 102,651
========= ==========
Net income allocated:
To the general partners $ 4,972 $ 1,027
To the limited partners 492,255 101,624
---------- --------
$ 497,227 $ 102,651
========== ========
Net income per unit of
limited partnership interest $0.16 $0.04
===== =====
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 six months ended June 30, 1995 and 1994
(Unaudited)
1995 1994
---------- -----------
Income:
Rental $4,368,227 $3,451,228
Interest and other income 26,401 40,420
--------- ---------
4,394,628 3,491,648
--------- ---------
Expenses:
Interest 367,142 273,054
Depreciation 1,168,128 962,873
Amortization 159,147 82,051
Property operating 1,358,533 1,187,201
Management fees 264,656 139,559
General and administrative 163,854 146,627
--------- ---------
3,481,460 2,791,365
--------- ---------
Net Income from real estate operations 913,168 700,283
--------- ---------
Gain on sales of marketable securities 27,682 813,300
Unrealized gain on marketable securities - 23,575
---------- ---------
27,682 836,875
---------- ---------
Net income $ 940,850 $1,537,158
========= =========
Net income allocated:
To the general partners $ 9,408 $ 15,372
To the limited partners 931,442 1,521,786
--------- ----------
940,850 $1,537,158
========= ==========
Net income per unit of
limited partnership interest $0.30 $0.48
==== ====
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 six months ended June 30, 1995 and 1994
Increase/(Decrease) in Cash
(Unaudited)
1995 1994
----------- -----------
Cash flows from operating activities:
Net income $ 940,850 $1,537,158
Adjustments to reconcile net income ---------- ----------
to net cash provided by operating
activities:
Depreciation and amortization 1,327,275 1,044,924
Gain on marketable securities (27,682) (23,575)
Changes in operating assets and liabilities:
Decrease (increase) in:
Accounts receivable 41,748 174,766
Notes receivable 3,511 2,807
Step rent receivables (181,422) (68,566)
Lease commissions (214,924) (159,582)
Deferred charges (41,276) (19,500)
Other assets (46,135) (43,772)
Increase (decrease)in:
Accounts payable and accrued expenses (277,309) (438,238)
Due to affiliates (71,885) (63,457)
Other liabilities (7,620) 148,141
-------- ---------
Total adjustments 504,281 553,948
-------- ---------
Net cash provided by operating activities 1,445,131 2,091,106
--------- ---------
Cash flows from investing activities:
Acquisition of real estate (183,864) (504,841)
Sales of marketable securities 128,579 2,278,500
--------- ---------
Net cash provided by (used in)
investing activities (55,285) 1,773,659
---------- ---------
Cash flows from financing activities:
Cash distributions to partners (1,939,394) (1,292,929)
---------- ----------
Net cash used in financing activities (1,939,394) (1,292,929)
---------- ----------
Net increase (decrease) in cash and
short-term investments (549,548) 2,571,836
Cash and short-term investments
at beginning of period 1,291,972 822,310
--------- ---------
Cash and short-term investments
at end of period $ 742,424 $3,394,146
========= =========
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
June 30, 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 Six Months Ended
1995 1994 1995 1994
-------- --------- -------- ---------
Rental income
received in cash $2,159,765 $1,705,449 $4,186,805 $3,382,662
Step rent receivables 90,711 34,283 181,422 68,566
--------- --------- --------- ---------
Rental income recognized $2,250,476 $1,739,732 $4,368,227 $3,451,228
========= ========= ========= =========
3. Leases
Minimum future rentals under noncancellable operating leases as of June 30,
1995 are as follows:
Year ending December 31
1995 $ 3,331,000
1996 5,753,000
1997 5,453,000
1998 5,142,000
1999 4,792,000
Thereafter 9,917,000
-----------
Total $34,388,000
==========
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 and
six months ended June 30, 1995 and 1994, escalation charges amounted to
$502,839 and $868,576 in 1995 and $412,497 and $808,758 in 1994.
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CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
4. Transactions with General Partners and Affiliates
Fees earned and reimbursable expenses for the three and six months ended June
30, 1995 and the unpaid portion at June 30, 1995 are:
Three Six
Months Months Payable
------- ------- -------
Partnership management fees $67,872 $135,744 -0-
Property management fees 64,556 128,912 -0-
Administrative expenses 1,202 12,499 -0-
Leasing commissions paid to the General Partners for the three months and six
months ended June 30, 1995 totalled $70,124 and $115,270, respectively.
5. Supplemental Disclosure of Cash Flow Information
Cash paid for interest during the six months ended June 30, 1995 and 1994
amounted to $305,392 and $273,054, respectively.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations for the six months ended June 30, 1995
Liquidity and Capital Resources
At June 30, 1995, the Partnership had cash and working capital of
approximately $742,000 which was invested in unaffiliated interest-bearing
bank accounts.
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
extended the maturity date of the subject loan from March 31, 1995 until
March 31, 1996. In connection with such extension, the loan has been converted
to a one-year secured revolving line of credit bearing the same rate of
interest as the original loan.
Results of Operations
Rental revenues in the second quarter of 1995 increased from 1994 primarily
as the result of the occupany of the Directory Building by GTE. Management fees
paid to the general partners during the second quarter increased in 1995 from
1994, reflecting an increase in adjusted cash from operations. In addition, in
the second quarter, the Partnership sold its remaining National Gypsum
securities (issued to the Partnership by National Gypsum Company in
satisfaction of the Partnership's claims in National Gypsum's bankruptcy),
realizing a gain of $27,682 on such sale.
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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: August 15, 1995 By:___/s/Robert F. Gossett, Jr.____
Robert F. Gossett, Jr.
President, Director
DATE: August 15, 1995 By: ___/s/Pauline G. Gossett______
Pauline G. Gossett
Treasurer, Vice President
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
ARTICLE 5 OF REGULATION S-X
This schedule contains summary financial information extracted from
registrant's unaudited finanical statements as at and for the six months
ended June 30, 1995 and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 742,424
<SECURITIES> 0
<RECEIVABLES> 24,809
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 767,233
<PP&E> 84,769,433
<DEPRECIATION> 14,739,782
<TOTAL-ASSETS> 75,033,634
<CURRENT-LIABILITIES> 711,922
<BONDS> 7,800,000
0
0
<COMMON> 66,521,712
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 75,033,634
<SALES> 4,368,227
<TOTAL-REVENUES> 4,394,628
<CGS> 0
<TOTAL-COSTS> 2,950,464
<OTHER-EXPENSES> 163,854
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 367,142
<INCOME-PRETAX> 913,168
<INCOME-TAX> 0
<INCOME-CONTINUING> 913,168
<DISCONTINUED> 0
<EXTRAORDINARY> 27,682
<CHANGES> 0
<NET-INCOME> 940,850
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0.30
</TABLE>
