SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 26, 1999 (May 12, 1999)
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RANCON INCOME FUND I,
A CALIFORNIA LIMITED PARTNERSHIP
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(Exact name of registrant as specified in its charter)
California 0-16645 33-0157561
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification Number)
incorporation or
organization)
400 South El Camino Real, Suite 1100, San Mateo, California 94402
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(Address of principal executive offices)
Registrant's Telephone number, including area code: (650) 343-9300
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No exhibit required.
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Item 2. ACQUISITION OR DISPOSITION OF ASSETS
On May 12, 1999, the Partnership sold one of its real estate assets, Aztec
Village Shopping Center, to an unaffiliated third party for $1,000,000. After
paying closing costs, including commissions and fees, the Partnership added the
net proceeds of approximately $943,000 to its cash reserves.
Item 7. FINANCIAL STATEMENTS
(b) Pro Forma financial Statements
The following unaudited pro-forma balance sheet as of March 31, 1999 has been
prepared to reflect the sale of Aztec Village Shopping Center as if the sale of
the aforementioned property had occurred on March 31, 1999. The following
unaudited pro-forma statements of operations for the three months ended March
31, 1999 and the year ended December 31, 1998, have been prepared to reflect the
sale of Aztec Village Shopping Center as if such transaction had occurred on
January 1, 1998.
The pro forma financial information is unaudited and is not necessarily
indicative of the results which would have occurred if the sale of the real
estate investment had been consummated in the periods presented, or on any
particular date, nor does it purport to represent the financial position,
results of operations, or cash flows for future periods.
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RANCON INCOME FUND I,
A CALIFORNIA LIMITED PARTNERSHIP
Pro forma Balance Sheet
As of March 31, 1999
(in thousands, except units outstanding)
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
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<S> <C> <C> <C>
Assets Real estate investments:
Rental property, net $ 4,259 $ - $ 4,259
Rental property held for sale, net 685 (685) -
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Net real estate investments 4,944 (685) 4,259
Cash and cash equivalents 992 943 1,935
Deferred costs, net 56 (7) 49
Prepaid expenses and other assets 48 (24) 24
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Total assets $ 6,040 $ 227 $ 6,267
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Liabilities and Partners' Equity (Deficit)
Liabilities:
Accounts payable and other liabilities $ 116 $ (12) $ 104
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Total liabilities 116 (12) 104
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Partners' equity (deficit):
General Partner (183) 5 (178)
Limited Partners, 14,555 limited
partnership units outstanding 6,107 234 6,341
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Total partners' equity 5,924 239 6,163
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Total liabilities and partners' equity $ 6,040 $ 227 $ 6,267
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</TABLE>
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RANCON INCOME FUND I,
A CALIFORNIA LIMITED PARTNERSHIP
Pro forma Statement of Operations
For the three months ended March 31, 1999
(in thousands, except units outstanding and per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
----------- ----------- -------------
<S> <C> <C> <C>
Revenue:
Rental income $ 252 $ (46) $ 206
Interest and other income 5 - 5
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Total revenue 257 (46) 211
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Expenses:
Operating 93 (18) 75
Depreciation and amortization 49 (1) 48
General and administrative 68 - 68
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Total expenses 210 (19) 191
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Net income $ 47 $ (27) $ 20
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Net income per limited partnership unit $ 3.23 $ (1.86) $ 1.37
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Weighted average number of limited partnership
units outstanding during the
period used to compute net income per
limited partnership unit 14,555 14,555 14,555
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</TABLE>
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RANCON INCOME FUND I,
A CALIFORNIA LIMITED PARTNERSHIP
Pro forma Statement of Operations
For the year ended December 31, 1998
(in thousands, except units outstanding and per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
Pro Forma
Historical Adjustments Pro Forma
----------- ------------ -------------
<S> <C> <C> <C>
Revenue:
Rental income $ 1,022 $ (146) $ 876
Interest and other income 30 - 30
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Total revenue 1,052 (146) 906
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Expenses:
Operating 429 (69) 360
Depreciation and amortization 175 (3) 172
Provision for impairment of investments
in real estate 451 - 451
General and administrative 276 - 276
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Total expenses 1,331 (72) 1,259
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Net loss $ (279) $ (74) $ (353)
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Net loss per limited partnership unit $ (18.96) $ (5.04) $ (24.00)
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Weighted average number of limited partnership
units outstanding during the period used to
compute net loss per limited partnership unit 14,555 14,555 14,555
=========== =========== =============
</TABLE>
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RANCON INCOME FUND I,
A CALIFORNIA LIMITED PARTNERSHIP
The accompanying Pro Forma Balance Sheet as of March 31, 1999 and the Pro Forma
Statements of Operations for the three months ended March 31, 1999 and the year
ended December 31, 1998, reflect the sale of Aztec Village Shopping Center (as
discussed in Item 2 on page 2) and include the following pro forma adjustments.
The $685,000 decrease in rental property held for sale reflects the net book
value of Aztec Village Shopping Center as of March 31, 1999.
The $24,000 decrease in prepaid expenses and other assets reflects collections
of tenant receivables, and reimbursement of prepaid insurance.
The increase in cash reflects the net cash proceeds upon the sale of the rental
property.
The decrease in rental income, operating expense and depreciation and
amortization reflect the operations of Aztec Village Shopping Center for the
respective periods.
The Registrant stopped depreciating the Aztec Village Shopping Center property
effective December 31, 1996 upon classification of the property as "held for
sale". Therefore, there is only a minimal adjustment for amortization expense
during the periods presented.
The Registrant recognized a $257,000 gain on the sale of Aztec Village Shopping
Center, which is not reflected in the accompanying unaudited pro forma financial
statements.
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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, hereunto duly authorized.
RANCON INCOME FUND I,
A CA LIFORNIA LIMITED PARTNERSHIP
(Registrant)
By: RANCON INCOME PARTNERS I, L.P.
General Partner
Date: May 26, 1999 By: /s/ Daniel L. Stephenson
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Daniel L. Stephenson
Director, President, Chief Executive Officer
and Chief Financial Officer of
Rancon Financial Corporation,
General Partner of
Rancon Income Partners I, L.P.
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