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, 1996
____________________________________________
___ 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
________
Corporate Realty Income Fund I, L.P.
____________________________________
(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
_____________
_________________________________________________________________________
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, 1996 and December 31, 1995 4
Statements of Operations --
For the three months ended June 30, 1996 and 1995 5
Statements of Operations --
For the six months ended June 30, 1996 and 1995 6
Statements of Cash Flows --
For the six months ended June 30, 1996 and 1995 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 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
JUNE 30, 1996 AND DECEMBER 31, 1995
<TABLE>
<S> <C> <C>
JUNE 30, DECEMBER 31,
1996 1995
________ ________
(Unaudited)
ASSETS
Real estate, at cost:
Land $13,598,425 $13,598,425
Buildings and improvements 71,682,168 71,444,155
___________ ___________
85,280,593 85,042,580
Less accumulated depreciation (17,198,567) (15,974,431)
___________ ___________
68,082,026 69,068,149
Cash and short-term investments at cost,
which approximates market value 273,453 397,432
Accounts receivable 29,146 437,191
Note receivable 14,040 17,694
Step rent receivables 2,797,330 2,784,802
Deferred charges, net of accumulated amortization
of $21,937 in 1995 24,500 7,313
Lease commissions, net of accumulated amortization
of $1,168,801 in 1996 and $1,007,199 in 1995 1,542,047 1,628,004
Deposits 33,142 33,142
Other assets 85,775 41,624
___________ ___________
Total assets $72,881,459 $74,415,351
___________ ___________
___________ ___________
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Mortgage loan payable $8,800,000 $ 7,800,000
Accounts payable and accrued expenses 959,797 1,457,029
Due to affiliates (46,078) (44,788)
Other liabilities 442,936 325,161
___________ ___________
10,156,655 9,537,402
___________ ___________
Partners' Capital:
General partners:
Capital contributions 1,000 1,000
Net income 374,690 373,356
Cash distributions (475,496) (456,581)
___________ ___________
(99,806) (82,225)
___________ ___________
Limited partners: ($25 per unit; 4,000,000
units authorized, 3,080,010 and 3,127,484
issued and outstanding in 1996 and 1995,
respectively)
Capital contributions,
net of offering costs 72,889,238 73,276,650
Net income 37,094,203 36,962,115
Cash distributions (47,158,831) (45,278,591)
__________ __________
62,824,610 64,960,174
__________ __________
Total partners' capital 62,724,804 64,877,949
___________ ___________
Total liabilities and partners' capital $72,881,459 $74,415,351
___________ ___________
___________ ___________
See accompanying notes to financial statements.
</TABLE>
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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, 1996 AND 1995
(Unaudited)
<TABLE>
<S> <C> <C>
1996 1995
___________ ___________
Income:
Rental $1,882,892 $2,250,476
Interest and other income 58,071 11,932
___________ ___________
1,940,963 2,262,408
___________ ___________
Expenses:
Interest 181,863 187,309
Depreciation 612,068 584,064
Amortization 80,801 77,136
Property operating 638,228 710,219
Management fees 184,950 132,428
General and administrative 231,439 80,042
___________ ___________
1,929,349 1,771,198
___________ ___________
Net income from real estate operations 11,614 491,210
___________ ___________
Gain on sales of marketable securities - 27,682
Unrealized loss on marketable securities - (21,665)
___________ ___________
- 6,017
___________ ___________
Net income $ 11,614 $ 497,227
___________ ___________
___________ ___________
Net income allocated:
To the general partners $ 116 $ 4,972
To the limited partners 11,498 492,255
___________ __________
$ 11,614 $ 497,227
___________ __________
___________ __________
Net income per unit of
limited partnership interest $0.004 $0.160
___________ __________
___________ __________
See accompanying notes to financial statements.
</TABLE>
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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, 1996 AND 1995
(Unaudited)
<TABLE>
<S> <C> <C>
1996 1995
__________ __________
Income:
Rental $3,867,694 $4,368,227
Interest and other income 58,271 26,401
__________ __________
3,925,965 4,394,628
__________ __________
Expenses:
Interest 358,880 367,142
Depreciation 1,224,136 1,168,128
Amortization 168,915 159,147
Property operating 1,317,616 1,358,533
Management fees 351,650 264,656
General and administrative 371,346 163,854
__________ __________
3,792,543 3,481,460
__________ __________
Net Income from real estate operations 133,422 913,168
Gain on sales of marketable securities - 27,682
__________ __________
Net income $133,422 $940,850
__________ __________
__________ __________
Net income allocated:
To the general partners $ 1,334 $ 9,408
To the limited partners 132,088 931,442
__________ __________
$133,422 $ 940,850
__________ __________
__________ __________
Net income per unit of limited
partnership interest $0.04 $.30
__________ __________
__________ __________
See accompanying notes to financial statements.
</TABLE>
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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, 1996 AND 1995
(Unaudited)
<TABLE>
<S> <C> <C>
1996 1995
__________ __________
Cash flows from operating activities:
Net income $133,422 $940,850
________ ________
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 1,393,051 1,327,275
Unrealized gain on marketable securities - (27,682)
Changes in operating assets and liabilities
Decrease (increase) in:
Accounts receivable 408,045 41,748
Notes receivable 3,654 3,511
Step rent receivables (12,528) (181,422)
Lease commissions (75,645) (214,924)
Deferred charges (24,500) (41,276)
Other assets (44,151) (46,135)
Increase (decrease) in:
Accounts payable and accrued expenses (497,232) (277,309)
Due to affiliates (1,290) (71,885)
Other liabilities 117,775 (7,620)
_________ _________
Total adjustments 1,267,179 504,281
_________ _________
Net cash provided by operating activities 1,400,601 1,445,131
_________ _________
Cash flows from investing activities:
Acquisition of real estate (238,013) (183,864)
Increase in deferred charges - 128,579
_________ _________
Net cash provided by (used in) investing activities (238,013) (55,285)
_________ _________
Cash flows from financing activities:
Mortgage proceeds 1,000,000 -
Capital repurchase (387,412) -
Cash distributions to partners (1,899,155) (1,939,394)
_________ _________
Net cash used in financing activities (1,286,567) (1,939,394)
_________ _________
Net increase (decrease) in cash and short-term investments (123,979) (549,548)
Cash and short-term investments at beginning of period 397,432 1,291,972
_________ _________
Cash and short-term investments at end of period $273,453 $742,424
_________ _________
_________ _________
See accompanying notes to financial statements.
</TABLE>
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(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
31,1995 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.
<TABLE>
<S>
Three Months Ended Six Months Ended
____________________ _____________________
<C> <C> <C> <C>
1996 1995 1996 1995
_______ __________ __________ __________
Rental income received in cash $1,876,628 $2,159,765 $3,855,166 $4,186,805
Step rent receivables 6,264 90,711 12,528 181,422
__________ __________ __________ __________
Rental income recognized $1,882,892 $2,250,476 $3,867,694 $4,368,227
__________ __________ __________ __________
__________ __________ __________ __________
</TABLE>
3. LEASES
Minimum future rentals under noncancellable operating leases as of June 30,
1996 are as follows:
<TABLE>
<S> <C>
Year ending December 31
_______________________
1996 $ 3,166,000
1997 6,741,000
1998 6,247,000
1999 5,981,000
2000 5,332,000
Thereafter 5,568,000
___________
Total $33,035,000
___________
___________
</TABLE>
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, 1996 and 1995,
escalation charges amounted to $260,341 and $583,506 in 1996 and
$502,839 and $868,576 in 1995, respectively.
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CORPORATE REALTY INCOME FUND I, L.P.
(A DELAWARE LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
4. TRANSACTIONS WITH GENERAL PARTNERS AND AFFILIATES
Fees incurred and reimbursable expenses for the three and six months ended
June 30, 1996 are:
<TABLE>
<S> <C> <C>
Three Six
Months Months
________ _______
Partnership management fees $ 63,602 $131,502
Property management fees 121,348 220,148
Administration expenses 65,851 100,273
Leasing commissions -0- 75,645
</TABLE>
5. SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest during the six months ended June 30, 1996 and 1995
amounted to $358,880 and $305,392, 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, 1996.
LIQUIDITY AND CAPITAL RESOURCES
_______________________________
At June 30, 1996, the Partnership had cash and working capital of
approximately $300,000 which was invested in unaffiliated money market funds
and interest-bearing bank accounts.
Except for approximately 20,000 square feet (half in Monterey Park,
California and half in Oklahoma City), all of the Partnership's buildings are
now fully leased. The Partnership does not anticipate expending any
significant additional funds for tenant improvements during 1996.
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 $8,800,000. The lender, Pittsburgh National Bank, has
extended the maturity date of the subject loan from March 31, 1996 until
September 31, 1996. In addition, the Partnership has signed a commitment
letter with Fleet Bank, N.A. under which Fleet Bank would lend the
Partnership up to $24,000,000 to be used to refinance the existing Pittsburgh
National Bank loan and to acquire additional properties. The Fleet Bank loan
will be for a period of four years and bear interest, at the Partnership's
choice, of either LIBOR plus 2.25% or prime plus 0.50%. It is anticipated that
this loan will be funded on or about September 1, 1996.
RESULTS OF OPERATIONS
_____________________
Rental revenues in the first half of 1996 decreased from 1995 as a
result of lower rents on the leases that expired in late 1995 and were renewed
at current market rates. All expenses (except interest) in the first half of
1996 increased from 1995, reflecting a shift of several leases from net leases
(under which the tenant pays the expenses) to gross leases (under which the
landlord pays the expenses).
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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 12, 1996 By:Robert F. Gossett, Jr.
_____________________
President, Director
Date: August 12, 1996 By:Pauline G. Gossett
__________________
Secretary
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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 audited financial statements as at and for the year ended
December 31, 1995 and unaudited financial statements as at and for the six
months ended June 30, 1996 and 1995 and is qualified in its entirety by
reference to such financial statements.
<TABLE>
<S> <C> <C>
June 30, December 31,
1996 1995
_________ __________
(Unaudited)
Cash $273,453 $397,432
Securities 0 0
Receivables 29,146 437,191
Allowances 0 0
Inventory 0 0
Current Assets 435,556 927,083
PP&E 85,280,593 85,042,580
Accumulated Depreciation 17,198,567 15,974,431
Total Assets 72,881,459 74,415,351
Current Liabilities 1,356,655 1,737,402
Bonds 8,800,000 7,800,000
Preferred-Mandatory 0 0
Preferred 0 0
Common 62,724,804 64,877,949
Other-SE 0 0
Total Liabilities and Equity 72,881,459 74,415,351
FOR THE SIX MONTHS ENDED JUNE 30, JUNE 30,
1996 1995
________ _________
Sales $3,867,694 $4,368,227
Total Revenue 3,925,965 4,394,628
CGS 0 0
Total Costs 3,062,317 2,950,464
Other Expenses 371,346 163,854
Loss Provision 0 0
Interest Expense 358,880 367,142
Income PreTax 133,422 913,168
Income Tax Expense 0 0
Income Continuing 133,422 913,168
Discontinued 0 0
Extraordinary 0 27,682
Changes 0 0
Net Income 133,422 940,850
EPS-Primary 0.04 0.30
EPS-Diluted 0.04 0.30
</TABLE>
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
registrant's audited financial statements
as at and for the year ended December 31, 1995 and
unaudited financial statements as at and for the six months ended
June 30, 1996 and 1995 and is qualified in its
entirety by reference to such financial
statements.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-END> JUN-30-1996 DEC-31-1995
<CASH> 273,453 397,432
<SECURITIES> 0 0
<RECEIVABLES> 29,146 437,191
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 435,556 927,083
<PP&E> 85,280,593 85,042,580
<DEPRECIATION> 17,198,567 15,974,431
<TOTAL-ASSETS> 72,881,459 74,415,351
<CURRENT-LIABILITIES> 1,356,655 1,737,402
<BONDS> 8,800,000 7,800,000
<COMMON> 62,724,804 64,877,949
0 0
0 0
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 72,881,459 74,415,351
<SALES> 3,867,694 4,368,227
<TOTAL-REVENUES> 3,925,965 4,394,628
<CGS> 0 0
<TOTAL-COSTS> 3,062,317 2,950,464
<OTHER-EXPENSES> 371,346 163,854
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 358,880 367,142
<INCOME-PRETAX> 133,422 913,168
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 133,422 913,168
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 27,682
<CHANGES> 0 0
<NET-INCOME> 133,422 940,850
<EPS-PRIMARY> 0.04 0.30
<EPS-DILUTED> 0.04 0.30
</TABLE>
