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Previous: HIGH EQUITY PARTNERS L P SERIES 86, 10-Q, 1997-08-18 |
Next: SUMMIT TAX EXEMPT BOND FUND LP, 10-Q, 1997-08-18 |
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, 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 ___
1 of 12
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
Index
Page No.
--------
Part I Financial information 3
Balance Sheets --
June 30, 1997 and December 31, 1996 4
Statements of Operations --
For the three months ended June 30, 1997 and 1996 5
Statements of Operations --
For the six months ended June 30, 1997 and 1996 6
Statements of Cash Flows --
For the six months ended June 30, 1997 and 1996 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
2 of 12
<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.
3 of 12
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
BALANCE SHEETS
June 30, 1997 and December 31, 1996
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
------------- -------------
(Unaudited)
<S> <C> <C>
ASSETS Real estate, at cost:
Land $ 19,875,846 $ 19,086,425
Buildings and improvements 91,263,032 93,885,121
------------- -------------
111,138,878 112,971,546
Less accumulated depreciation (16,862,748) (18,553,069)
------------- -------------
94,276,130 94,418,477
Cash and short-term investments at cost,
which approximates market value 1,266,638 2,025,925
Accounts receivable 361,415 431,889
Due from general partners -- 99,797
Note receivable 6,508 10,312
Step rent receivables 2,884,689 2,945,163
Deferred charges, net of accumulated amortization
of $317,214 in 1997 and $180,636 in 1996 1,205,412 1,395,740
Lease commissions, net of accumulated amortization
of $1,610,698 in 1997 and $1,400,260 in 1996 1,615,605 1,545,245
Deposits 71,742 71,742
Prepaid expenses 91,111 38,989
------------- -------------
Total assets $ 101,779,250 $ 102,983,279
============= =============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Mortgage loan payable $ 40,475,200 $ 39,955,200
Accounts payable and accrued expenses 293,640 1,198,537
Due to general partners 1,140 --
Other liabilities 1,036,752 943,966
------------- -------------
41,806,732 42,097,703
------------- -------------
Partners' Capital:
General partners:
Capital contributions 1,000 1,000
Net income 391,573 380,135
Cash distributions (512,625) (494,170)
------------- -------------
(120,052) (113,035)
------------- -------------
Limited partners: ($25 per unit; 4,000,000 units
authorized, 3,024,851 and 3,043,106 issued and
outstanding in 1997 and 1996, respectively)
Capital contributions, net of offering costs 72,153,995 72,365,286
Net income 38,765,573 37,633,250
Cash distributions (50,826,998) (48,999,925)
------------- -------------
60,092,570 60,998,611
------------- -------------
Total partners' capital 59,972,518 60,885,576
------------- -------------
Total liabilities and partners' capital $ 101,779,250 $ 102,983,279
============= =============
</TABLE>
See accompanying notes to financial statements.
4 of 12
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
For the three months ended June 30, 1997 and 1996
(Unaudited)
1997 1996
---------- ----------
Income:
Rental 3,763,357 $1,882,892
Interest and other income 43,713 58,071
---------- ----------
3,807,070 1,940,963
---------- ----------
Expenses:
Interest 784,461 181,863
Depreciation 748,865 612,068
Amortization 200,383 80,801
Property operating 1,561,392 638,228
Management fees 258,545 184,950
General and administrative 204,764 231,439
---------- ----------
3,758,410 1,929,349
---------- ----------
Net income $ 48,660 $ 11,614
========== ==========
Net income allocated:
To the general partners $ 487 $ 116
To the limited partners 48,173 11,498
---------- ----------
$ 48,660 $ 11,614
========== ==========
Net income per unit of
limited partnership interest $ 0.015 $ 0.004
========== ==========
See accompanying notes to financial statements.
5 of 12
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
For the six months ended June 30, 1997 and 1996
(Unaudited)
1997 1996
---------- ----------
Income:
Rental $7,332,052 $3,867,694
Interest and other income 45,112 58,271
---------- ----------
7,377,164 3,925,965
---------- ----------
Expenses:
Interest 1,520,109 358,880
Depreciation 1,354,333 1,224,136
Amortization 400,766 168,915
Property operating 3,081,370 1,317,616
Management fees 484,542 351,650
General and administrative 304,784 371,346
---------- ----------
7,145.904 3,792,543
---------- ----------
Net Income from real estate operations 231,260 133,422
Gain on sale of real estate 912,501 --
---------- ----------
Net income $1,143,761 $ 133,422
========== ==========
Net income allocated:
To the general partners $ 11,438 $ 1,334
To the limited partners 1,132,323 132,088
---------- ----------
$1,143,761 $ 133,422
========== ==========
Net income per unit of limited partnership interest $ 0.37 $ 0.04
========== ==========
See accompanying notes to financial statements.
6 of 12
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 231,260 $ 133,422
------------ ------------
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 1,755,099 1,393,051
Gain on sale of real estate 912,501 --
Changes in operating assets and liabilities
Decrease (increase) in:
Accounts receivable 70,474 408,045
Due from general partner 99,797 --
Notes receivable 3,804 3,654
Step rent receivables 60,474 (12,528)
Lease commissions (280,798) (75,645)
Deferred charges -- (24,500)
Prepaid expenses (52,122) (44,151)
Increase (decrease) in:
Accounts payable and accrued expenses (904,897) (497,232)
Due to general partner 1,140 (1,290)
Other liabilities 92,786 117,775
------------ ------------
Total adjustments 1,758,258 1,267,179
------------ ------------
Net cash provided by operating activities 1,989,518 1,400,601
------------ ------------
Cash flows from investing activities:
Acquisition of real estate (12,775,408) (238,013)
Sale of real estate 11,563,422 --
------------ ------------
Net cash used in investing activities (1,211,986) (238,013)
------------ ------------
Cash flows from financing activities:
Mortgage proceeds 1,000,000 1,000,000
Mortgage paid (480,000) --
Capital repurchase (211,291) (387,412)
Cash distributions to partners (1,845,528) (1,899,155)
------------ ------------
Net cash used in financing activities (1,536,819) (1,286,567)
------------ ------------
Net increase (decrease) in cash and short-term investments (759,287) (123,979)
Cash and short-term investments at beginning of period 2,025,925 397,432
------------ ------------
Cash and short-term investments at end of period $ 1,266,638 $ 273,453
============ ============
</TABLE>
See accompanying notes to financial statements.
7 of 12
<PAGE>
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,
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.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------- --------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Rental income received in cash $ 3,830,095 $ 1,876,628 $ 7,392,526 $ 3,855,166
Step rent receivables (66,738) 6,264 (60,474) 12,528
----------- ----------- ----------- -----------
Rental income recognized $ 3,763,357 $ 1,882,892 $ 7,332,052 $ 3,867,694
=========== =========== =========== ===========
</TABLE>
3. Leases
Minimum future rentals under noncancellable operating leases as of June 30,
1997 are as follows:
Year ending December 31
-----------------------
1997 $ 5,588,000
1998 10,473,000
1999 9,554,000
2000 8,811,000
2001 6,620,000
Thereafter 10,767,000
------------
Total $ 51,813,000
============
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, 1997 and 1996, escalation charges amounted to $706,336 and $1,369,043
in 1997 and $260,341 and $583,506 in 1996, respectively.
8 of 12
<PAGE>
CORPORATE REALTY INCOME FUND I, L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
(Unaudited)
4. Transactions with General Partners and Affiliates
Fees incurred and reimbursable expenses for the three and six months ended
June 30, 1997 are:
Three Six
Months Months
------ ------
Partnership management fees $ 64,452 $128,937
Property management fees 194,093 355,605
Administration fees 25,000 25,000
During the three and six months ended June 30, 1997 the Partnership paid to
the General Partners leasing commissions aggregating $15,252 and $129,940,
respectively.
5. Supplemental Disclosure of Cash Flow Information
Cash paid for interest during the six months ended June 30, 1997 and 1996
amounted to $1,520,109 and $358,880, respectively.
9 of 12
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations for the six months ended June 30, 1997.
Liquidity and Capital Resources
At June 30, 1997, the Partnership had cash and working capital of
approximately $1,266,000 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 $40,475,200.
Results of Operations
Rental revenues and expenses during the second quarter of 1997 increased
from 1996 as a result of the acquisition of the New York and San Antonio
properties.
10 of 12
<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.
11 of 12
<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: August 12, 1997 By: Robert F. Gossett, Jr.
----------------------
President, Director
Date: August 12, 1997 By: Pauline G. Gossett
------------------
Secretary
12 of 12
<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, 1996 and unaudited financial statements as at and for the six months ended
June 30, 1997 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-31-1997 DEC-31-1996
<PERIOD-END> JUN-30-1997 JUN-30-1996
<CASH> 1,266,638 2,025,925
<SECURITIES> 0 0
<RECEIVABLES> 361,415 437,889
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 1,634,561 2,567,923
<PP&E> 111,138,878 112,971,546
<DEPRECIATION> 16,862,748 18,553,069
<TOTAL-ASSETS> 101,779,250 102,983,279
<CURRENT-LIABILITIES> 1,331,532 2,142,503
<BONDS> 40,475,200 39,955,200
0 0
0 0
<COMMON> 60,092,570 60,998,611
<OTHER-SE> 0 0
<TOTAL-LIABILITY-AND-EQUITY> 101,779,250 102,983,279
<SALES> 7,332,052 3,867,694
<TOTAL-REVENUES> 7,377,164 3,925,965
<CGS> 0 0
<TOTAL-COSTS> 5,321,011 3,062,317
<OTHER-EXPENSES> 304,784 371,346
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 1,520,109 358,880
<INCOME-PRETAX> 1,143,761 133,422
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 1,143,761 133,422
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,143,761 133,422
<EPS-PRIMARY> 0.37 0.04
<EPS-DILUTED> 0.37 0.04
</TABLE>
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