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, 1997
___ 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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<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
Index
Page No.
--------
Part I Financial information 3
Balance Sheets --
March 31, 1997 and December 31, 1996 4
Statements of Operations --
For the three months ended March 31, 1997 and 1996 5
Statements of Cash Flows --
For the three months ended March 31, 1997 and 1996 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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<PAGE>
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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<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
BALANCE SHEETS
March 31, 1997 and December 31, 1996
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
------------- -------------
(Unaudited)
<S> <C> <C>
ASSETS
Real estate, at cost:
Land $ 19,875,846 $ 19,086,425
Buildings and improvements 90,781,876 93,885,121
------------- -------------
110,657,722 112,971,546
Less accumulated depreciation 16,113,883 18,553,069
------------- -------------
94,543,839 94,418,477
Cash and short-term investments at cost,
which approximates market value 1,057,545 2,025,925
Accounts receivable 259,174 431,889
Due from general partners 1,864 99,797
Note receivable 8,419 10,312
Step rent receivables 2,951,427 2,945,163
Deferred charges, net of accumulated amortization
of $222,050 in 1997 and $180,636 in 1996 1,300,576 1,395,740
Lease commissions, net of accumulated amortization
of $1,505,479 in 1997 and $1,400,260 in 1996 1,598,714 1,545,245
Deposits 71,742 71,742
Other assets 373,012 38,989
------------- -------------
Total assets $ 102,166,312 $ 102,983,279
============= =============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Mortgage loan payable $ 39,715,200 $ 39,955,200
Accounts payable and accrued expenses 392,196 1,198,537
Other liabilities 1,078,281 943,966
------------- -------------
Total liabilities 41,185,677 42,097,703
------------- -------------
Partners' Capital (Deficit):
General partners:
Capital contributions 1,000 1,000
Net income 391,086 380,135
Cash distributions (503,418) (494,170)
------------- -------------
(111,332) (113,035)
------------- -------------
Limited partners: ($25 per unit; 4,000,000 units
authorized, 3,037,506 and 3,043,106 issued and
outstanding in 1997 and 1996, respectively)
Capital contributions, net of offering costs 72,290,036 72,365,286
Net income 38,717,400 37,633,250
Cash distributions (49,915,469) (48,999,925)
------------- -------------
61,091,967 60,998,611
------------- -------------
Total partners' capital 60,980,635 60,885,576
------------- -------------
Total liabilities and partners' capital $ 102,166,312 $ 102,983,279
============= =============
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
For the three months ended March 31, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Income:
Rental $3,568,695 $1,984,802
Interest and other income 1,399 200
---------- ----------
3,570,094 1,985,002
---------- ----------
Expenses:
Interest 735,648 177,017
Depreciation 605,468 612,068
Amortization 200,383 88,114
Property operating 1,519,978 679,388
Management fees 225,997 166,700
General and administrative 100,020 139,907
---------- ----------
3,387,494 1,863,194
---------- ----------
Net income from real estate operations 182,600 121,808
Gain on sale of real estate 912,501 --
---------- ----------
Net income $1,095,101 $ 121,808
========== ==========
Net income allocated:
To the general partners $ 10,951 $ 1,218
To the limited partners 1,084,150 120,590
---------- ----------
$1,095,101 $ 121,808
========== ==========
Net income per unit of limited partnership interest $0.36 $0.04
===== =====
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
STATEMENTS OF CASH FLOWS
For the three months ended March 31, 1997 and 1996
Increase/(Decrease) in Cash
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 182,600 $ 121,808
------------ ------------
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 805,851 700,182
Gain on sale of real estate 912,501 --
Changes in operating assets and liabilities:
Decrease (increase) in:
Accounts receivable 172,715 337,967
Due from affiliates 97,933 (1,640)
Note receivable 1,893 1,818
Step rent receivables (6,264) (6,264)
Lease commissions (158,688) (75,645)
Other assets (334,023) 24,974
Increase (decrease) in:
Accounts payable and accrued expenses (806,341) (229,660)
Other liabilities 134,315 374,082
------------ ------------
Total adjustments 819,892 1,125,814
------------ ------------
Net cash provided by operating activities 1,002,492 1,247,622
------------ ------------
Cash flows from investing activities:
Acquisition of real estate (12,294,252) (72,642)
Sale of real estate 11,563,422 --
------------ ------------
Cash used in investing activities (730,830) (72,642)
------------ ------------
Cash flows from financing activities:
Mortgage paid (240,000) --
Capital repurchase (75,250) (234,352)
Cash distributions to partners (924,792) (951,510)
------------ ------------
Cash used in financing activities (1,240,042) (1,185,862)
------------ ------------
Net decrease in cash and short-term investments (968,380) (10,882)
Cash and short-term investments at beginning of period 2,025,925 397,432
------------ ------------
Cash and short-term investments at end of period $ 1,057,545 $ 386,550
============ ============
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(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,
1996 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
------------------------------
1997 1996
---------- ----------
Rental income received in cash $3,562,431 $1,978,538
Step rent receivables 6,264 6,264
---------- ----------
Rental income recognized $3,568,695 $1,984,802
========== ==========
3. Leases
Minimum future rentals under noncancellable operating leases as of March
31, 1997 are as follows:
Year ending December 31
-----------------------
1997 $ 8,661,000
1998 10,473,000
1999 9,554,000
2000 8,811,000
2001 6,620,000
Thereafter 10,767,000
-----------
Total $54,886,000
===========
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, 1997 and 1996, escalation charges amounted to $662,707 and $323,165,
respectively.
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<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
March 31, 1997
(Unaudited)
4. Transactions with General Partners and Affiliates
Fees incurred and reimbursable expenses for the three months ended March
31, 1997 are:
Three
Months
------
Partnership management fees $ 64,485
Property management fees 161,512
Administration expenses -0-
During the three months ended March 31, 1997, the Partnership paid to the
General Partners leasing commissions in the amount of $114,688.
5. Supplemental Disclosure of Cash Flow Information
Cash paid for interest during the three months ended March 31, 1997 and
1996 amounted to $735,648 and $177,017, respectively.
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<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations for the three months ended March 31, 1997.
Liquidity and Capital Resources
At March 31, 1997, the Partnership had cash and working capital of
approximately $1,057,000 which was invested in unaffiliated money market funds
and interest-bearing bank accounts.
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 approximately $39,715,000.
Results of Operations
Rental revenues and expenses during the first quarter of 1997 increased
from 1996 as a result of the acquisition of the New York propery. During the
first quarter of 1997, the Partnership sold the Woodland property in Califorinia
at a gain and used the proceeds to acquire the Alamo building at San Antonio,
Texas. This transaction did not require additional mortgage financing.
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<PAGE>
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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<PAGE>
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, 1997 By: /s/ Robert F. Gossett, Jr.
---------------------------
Robert F. Gossett, Jr.
President, Director
Date: May 9, 1997 By: /s/ Pauline G. Gossett
---------------------------
Pauline G. Gossett
Secretary
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
registrant's unaudited financial statements as at and for the three
months ended March 31, 1997 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,057,545
<SECURITIES> 0
<RECEIVABLES> 259,174
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,327,002
<PP&E> 110,657,722
<DEPRECIATION> 16,113,883
<TOTAL-ASSETS> 102,166,312
<CURRENT-LIABILITIES> 1,470,477
<BONDS> 39,719,200
0
0
<COMMON> 61,091,967
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 102,166,312
<SALES> 3,568,695
<TOTAL-REVENUES> 3,570,094
<CGS> 0
<TOTAL-COSTS> 2,551,826
<OTHER-EXPENSES> 100,020
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 735,648
<INCOME-PRETAX> 1,095,101
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,095,101
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,095,101
<EPS-PRIMARY> 0.36
<EPS-DILUTED> 0.36
</TABLE>
