<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[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
-------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________________
Commission file number 0-16859
-------
NYLIFE REALTY INCOME PARTNERS I, L.P.
-------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-3410538
-------- ----------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
51 MADISON AVENUE, NEW YORK, NEW YORK 10010
- ------------------------------------- -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 576-6456
---------------
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
--- ---
<PAGE>
NYLIFE Realty Income Partners I, L.P.
(a limited partnership)
June 30, 1996
INDEX
PAGE NO.
Part I - Financial Information (Unaudited)
Item 1. Financial Statements
Statement of Net assets as of June 30, 1996 3
Balance Sheet as of December 31, 1995 4
Statements of Operations for the Three and Six
Months Ended June 30, 1996 and 1995 5
Statements of Partners' Capital (Deficit) for the
Six Months Ended June 30, 1996 and
for the Year Ended December 31, 1995 6
Statements of Cash Flows for the Six Months
Ended June 30, 1996 and 1995 7
Notes to Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 12
Part II - Other Information 14
Item 2. Changes in Securities 14
Item 4. Submission of Matters to a Vote of
Security Holders 14
Item 6. Exhibits and Reports on Form 10-K 14
Signatures 15
2
<PAGE>
NYLIFE Realty Income Partners I, L.P.
(In The Process of Liquidation)
Statement of Net Assets
as of June 30, 1996
1996
ASSETS (UNAUDITED)
Cash and cash equivalents $ 589,448
Restricted cash 283,392
Due from affiliates 50,450
Investments in real estate joint ventures 11,901,173
Other assets 636
---------------
Total assets $ 12,825,099
---------------
---------------
LIABILITIES AND PARTNERS' CAPITAL
Accrued liabilities $ 109,386
---------------
Total liabilities 109,386
---------------
Partners' capital
General Partners:
Capital contributions 2,000
Accumulated deficit (23,801)
Cumulative distributions (69,333)
---------------
(91,134)
---------------
Limited Partners:
Capital contributions
net of public offering expenses 25,032,724
Accumulated deficit (2,356,448)
Cumulative distributions (9,869,429)
---------------
12,806,847
---------------
Total partners' capital 12,715,713
---------------
Total liabilities and partners' capital $ 12,825,099
---------------
---------------
The accompanying Notes to Financial Statements are
an integral part of this statement.
3
<PAGE>
NYLIFE Realty Income Partners I, L.P.
(a limited partnership)
Balance Sheet
December 31, 1995
ASSETS
Cash and cash equivalents $ 688,977
Restricted cash 283,392
Investments in real estate joint ventures 13,590,960
Other assets - net 2,472
---------------
Total assets $ 14,565,801
---------------
---------------
LIABILITIES AND PARTNERS' CAPITAL
Accrued liabilities $ 94,058
---------------
Total liabilities 94,058
---------------
Partners' capital
General Partners:
Capital contributions 2,000
Accumulated deficit (9,103)
Cumulative distributions (66,470)
---------------
(73,573)
---------------
Limited Partners:
Capital contributions
net of public offering expenses 25,032,724
Accumulated deficit (901,371)
Cumulative distributions (9,586,037)
---------------
14,545,316
---------------
Total partners' capital 14,471,743
---------------
Total liabilities and partners' capital $ 14,565,801
---------------
---------------
The accompanying Notes to Financial Statements are
an integral part of these statements.
4
<PAGE>
NYLIFE Realty Income Partners I, L.P.
(a limited partnership)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-----------------------------------------------------------------------
INCOME 1996 1995 1996 1995
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
Equity in income from
joint venture operations $ - $ 113,734 $ - $ 177,048
Interest 11,346 7,741 24,269 41,096
-------------- ------------- -------------- --------------
Total income 11,346 121,475 24,269 218,144
-------------- ------------- -------------- --------------
EXPENSES
Equity in loss from
joint venture operations 1,485,560 - 1,418,444 -
General and administrative - 29,905 25,600 47,470
General and administrative-related party 25,000 25,000 50,000 50,000
-------------- ------------- -------------- --------------
Total expenses 1,510,560 54,905 1,494,044 97,470
-------------- ------------- -------------- --------------
Net income (loss) $ (1,499,214) $ 66,570 $ (1,469,775) $ 120,674
-------------- ------------- -------------- --------------
-------------- ------------- -------------- --------------
NET INCOME (LOSS) ALLOCATED
General Partners $ (14,992) $ 666 $ (14,698) $ 1,207
Limited Partners (1,484,222) 65,904 (1,455,077) 119,467
-------------- ------------- -------------- --------------
$ (1,499,214) $ 66,570 $ (1,469,775) $ 120,674
-------------- ------------- -------------- --------------
-------------- ------------- -------------- --------------
Net income (loss) per unit $ (0.52) $ 0.02 $ (0.51) $ 0.04
-------------- ------------- -------------- --------------
-------------- ------------- -------------- --------------
Number of Units 2,833,925.5 2,833,925.5 2,833,925.5 2,833,925.5
-------------- ------------- -------------- --------------
-------------- ------------- -------------- --------------
</TABLE>
The accompanying Notes to Financial Statements are
an integral part of these statements.
5
<PAGE>
NYLIFE Realty Income Partners I, L.P.
(a limited partnership)
Statements of Partners' Capital (Deficit)
for the Six Months Ended June 30, 1996 (Unaudited)
and for the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Total
Limited General Partners'
Partners Partners Capital
--------------- ------------ ---------------
<S> <C> <C> <C>
Capital (deficit) at January 1, 1995 $ 18,970,789 $ (61,376) $ 18,909,413
Net income 155,625 1,572 157,197
Distributions to partners (4,581,098) (13,769) (4,594,867)
--------------- ------------ ---------------
Capital (deficit) at December 31, 1995 14,545,316 (73,573) 14,471,743
Net (loss) (1,455,077) (14,698) (1,469,775)
Distributions to partners (283,392) (2,863) (286,255)
--------------- ------------ ---------------
Capital (deficit) at June 30, 1996 $ 12,806,847 $ (91,134) $ 12,715,713
--------------- ------------ ---------------
--------------- ------------ ---------------
</TABLE>
The accompanying Notes to Financial Statements are
an integral part of these statements.
6
<PAGE>
NYLIFE Realty Income Partners I, L.P.
(a limited partnership)
Statements of Cash Flows
for the Six Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities:
--------------- ---------------
Net income (loss) $ (1,469,775) $ 120,674
--------------- ---------------
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Equity in (income) loss from joint venture operations 1,418,444 (177,048)
Cash distributions from joint ventures - 177,048
Amortization of interest and acquisition fees 12,544 -
Changes in assets and liabilities:
(Increase) in due from affiliates (50,450) -
Decrease in other assets 1,836 27,803
Increase (decrease) in accrued liabilities 15,328 (100,704)
--------------- ---------------
Total adjustments 1,397,702 (72,901)
--------------- ---------------
Net cash provided by (used in) operating activities (72,073) 47,773
--------------- ---------------
Cash flows from investing activities:
Cash distributions from joint ventures in excess of
earnings (return of capital) 258,799 3,342,808
--------------- ---------------
Cash flows from financing activities:
Distributions to partners (286,255) (4,308,612)
--------------- ---------------
Net (decrease) in cash and cash equivalents (99,529) (918,031)
Cash and cash equivalents at beginning of period 688,977 1,362,676
--------------- ---------------
Cash and cash equivalents at end of period $ 589,448 $ 444,645
--------------- ---------------
--------------- ---------------
</TABLE>
The accompanying Notes to Financial Statements are
an integral part of these statements.
7
<PAGE>
NYLIFE REALTY INCOME PARTNERS I, L.P.
(IN PROCESS OF LIQUIDATION)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
As discussed in further detail in Note 2, on July 1, 1996, the limited partners
of the Partnership approved the dissolution of the Partnership. As a result,
the Partnership has changed its basis of accounting for the period subsequent to
June 30, 1996, from the historical cost basis to the liquidation basis. Under
the liquidation basis of accounting, the Partnerships' assets at June 30, 1996
are reported at estimated net realizable value, and the Partnerships'
liabilities are presented at estimated settlement amounts.
Investments in real estate Joint Ventures at June 30, 1996 are recorded at
fair value based on appraisals performed on the Joint Venture Properties,
less estimated costs to sell, as of December 15, 1995 for Cornell and
NewMarket and December 31, 1995 for Eden Woods. Management believes that no
material changes to the fair market value of the Joint Venture Properties
have occurred between the appraisal dates and June 30, 1996. For all other
assets and liabilities presented on the liquidation basis of accounting, the
General Partner believes that historical cost approximates fair market value.
The net effect of the revaluation of the Partnership's assets and
liabilities due to the adoption of the liquidation basis of accounting was a
downward adjustment of $1,469,124, to the Partnership's investments in real
estate joint ventures. This amount was reported on the statements of
operations for the periods ended June 30, 1996 and included in equity in loss
from joint venture operations (Note 4). The balance sheet at December 31,
1995, and the accompanying statements of operations, partners' capital and
cash flows were prepared using the historical cost basis of accounting.
The accompanying financial statements include the accounts of the Partnership
including its investments in NYLIFE Realty Partners I - General Partnership A
(Cornell), General Partnership C (Eden Woods), and General Partnership D
(NewMarket) (collectively, the "Joint Ventures") to which the equity method of
accounting has been applied.
The summarized financial information contained herein is unaudited, however, in
the opinion of management, all adjustments (which include normal recurring
adjustments) necessary for a fair presentation of financial information have
been included. The accompanying financial statements and related notes should
be read in conjunction with the Partnership's 1995 Annual Report on Form 10-K/A-
1.
Capitalized terms used in these Notes to Financial Statements, unless otherwise
defined herein, shall have the meanings set forth in the Partnership Agreement.
NOTE 2 - LIQUIDATION
Two class action lawsuits were filed against the Co-Venturer and certain
other affiliates of the General Partners in the District Court of Harris
County, Texas on January 11, 1996, styled Grimshawe v. New York Life
Insurance Co., et al. (No. 96-001188) and Shea v. New York Life Insurance
Co., et al. (No. 96-001189) alleging misconduct in connection with the
original
8
<PAGE>
sale of investment units in various partnerships, including violation of
various federal and state laws and regulations and claims of continuing
fraudulent conduct. The plaintiffs asked for compensatory damages for their
lost original investment, plus interest, costs (including attorneys fees),
punitive damages, disgorgement of any earnings, compensation and benefits
received by the defendants as a result of the alleged actions and other
unspecified relief to which plaintiffs might have been entitled. These suits
were amended and refiled in a consolidated action in the United States
District Court for the Southern District of Florida (the "Court") on March
18, 1996. In the federal action, the plaintiffs added NYLIFE Realty as a
defendant and included allegations concerning the Partnership. The
plaintiffs purported to represent a class of all persons (the "Class") who
purchased or otherwise assumed rights and title to interests in certain
limited partnerships, including the Partnership, and other programs created,
sponsored, marketed, sold, operated or managed by the defendants (the
"Proprietary Partnerships"). The Partnership was not a defendant in the
litigation.
The defendants expressly denied any wrongdoing alleged in the complaint and
concede no liability or wrongdoing in connection with the sale of the Units
or the structure of the Proprietary Partnerships. Nevertheless, to reduce
the burden of protracted litigation, the defendants entered into a
Stipulation of Settlement ("Settlement Agreement") with the plaintiffs
because in their opinion such Settlement would (i) provide substantial
benefits to the Class in a manner consistent with New York Life's position
that it had previously determined to wind up most of the Proprietary
Partnerships, including the Partnership, through orderly liquidation as the
continuation of the business no longer serves the intended objectives of
either the owners of interests in such Proprietary Partnerships or the
defendants and to offer the investors an enhancement to the liquidating
distribution they would otherwise receive and (ii) provide an opportunity to
wind up such partnerships on a schedule favorable to the Class and resolve
the issues raised by the lawsuit.
In coordination with the proposed settlement, the General Partners solicited
the approval of the limited partners for the dissolution of the Partnership.
On July 1, 1996, the expiration date for the solicitation of such consents,
the limited partners of the Partnership approved the dissolution and
termination of the Partnership. NYLIFE Realty Inc., as liquidator, has
commenced the process of winding up the Partnership.
Final approval of the Settlement Agreement was given by the Court on July 3,
1996. The Settlement Agreement became final on August 5, 1996, the date on
which the period for appeal of the Settlement Agreement expired. Under the
terms of the Settlement Agreement, each settling limited partner will receive
a complete return of his original investment, less distributions received
prior to the final settlement date; if a settling limited partner has already
received such referenced net return prior to or as a result of the payment of
the liquidation advance provided for under the Settlement, such settling
limited partner will also receive the greater of (a) $10 per unit of limited
partner interest or (b) $200 in addition to the liquidation advance. NYLIFE
Inc., the sole stockholder of NYLIFE Realty, Inc., will deposit funds into a
trust account for the benefit of NYLIFE Realty, Inc. to ensure the payments
to settling limited partners under the Settlement Agreement. NYLIFE Realty
Inc., will act as paying agent for NYLIFE Inc. with respect to the payments.
In exchange for the settlement benefits, the settling limited partners will
release any and all claims that the settling limited partner may have against
the defendants in connection with any and all causes of action related to the
Proprietary Partnerships and all activities related to the dissolution and
liquidation of such partnerships.
9
<PAGE>
NOTE 3 - ADOPTION OF NEW ACCOUNTING STANDARD
During the first quarter of 1996, the Partnership adopted Statement of Financial
Accounting Standards ("SFAS") No. 121, "Accounting for the Impairment of Long-
Lived Assets and for Long-Lived Assets to be Disposed Of". In connection with
the adoption of the liquidation basis of accounting (Note 1), the underlying
Joint Venture Properties were written down to fair value less estimated costs to
sell and the Partnership recorded a downward adjustment of $1,469,124 which is
included in equity in loss from joint venture operations on the accompanying
statements of operations.
NOTE 4 - INVESTMENTS IN REAL ESTATE JOINT VENTURES
A summary of the financial information for the Joint Ventures as of June 30,
1996 is presented below:
<TABLE>
<CAPTION>
Balance Sheets Cornell Eden Woods NewMarket Total
- -------------- ------- ---------- --------- -----
<S> <C> <C> <C> <C>
Land $1,027,580 $1,669,758 $1,619,290 $4,316,628
Building and improvements 9,269,066 10,127,364 9,105,207 28,501,637
Accumulated depreciation (3,456,645) (3,057,122) (3,124,496) (9,638,263)
Other assets 218,519 520,438 224,306 963,263
Accrued liabilities 149,879 157,382 164,829 472,090
Co-Venturer's equity 2,712,385 4,853,045 4,787,379 12,352,809
---------- ----------- ---------- -----------
Partnership's equity in Joint Ventures $4,196,257 $4,252,892 $2,881,219 $11,330,367
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
Represented by:
Partnership's equity in Joint Ventures
at January 1, 1996 $4,905,324 $4,798,194 $3,886,942 $13,590,460
Joint Venture (loss) (559,371) (408,192) (450,925) (1,418,488)
Cash distributions (149,696) - (109,102) (258,799)
---------- ----------- ---------- -----------
Net equity investment 4,196,257 4,390,002 3,326,915 11,913,173
Interest - (72,377) (300,910) (373,287)
Acquisition fees - (73,656) (173,260) (246,916)
Accumulated amortization of interest
and acquisition fees - 8,923 28,474 37,397
---------- ----------- ---------- -----------
Partnership's equity in Joint Ventures
at June 30, 1996 $4,196,257 $4,252,892 $2,881,219 $11,318,367
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
The following is a summary of the operations of Cornell, Eden Woods and
NewMarket for the six months ended June 30, 1996:
<TABLE>
<CAPTION>
Operations Cornell Eden Woods NewMarket Total
- ---------- ------- ---------- --------- -----
<S> <C> <C> <C> <C>
Net operating income (loss) $(9,337) $(1,260) $118,088 $107,491
Interest income - 7,656 3,384 11,040
Effect of adoption of liquidation
basis of accounting (922,948) (873,782) (1,150,511) (2,947,241)
---------- ----------- ---------- -----------
Net (loss) $(932,285) $(867,386) $(1,029,039) $(2,828,710)
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
Net (loss) allocated
To Co-Venturer $(372,914) $(459,194) $(578,114) $(1,410,222)
To Partnership (559,371) (408,192) (450,925) (1,418,488)
---------- ----------- ---------- -----------
$(932,285) $(867,386) $(1,029,039) $(2,828,710)
---------- ----------- ---------- -----------
---------- ----------- ---------- -----------
</TABLE>
10
<PAGE>
NOTE 5 - TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES
The following is a summary of the amounts earned by the General Partners and
their Affiliates for the six months ended June 30, 1996 and 1995 as defined in
the Partnership Agreement:
<TABLE>
<CAPTION>
Earned for the Earned for the
Unpaid at six months ended six months ended
June 30,1996 June 30, 1996 June 30, 1995
------------ ------------- -------------
<S> <C> <C> <C>
Property management fees (1) - $69,330 $69,330
Reimbursement of general and
administrative expenses paid
by the General Partners 50,000 50,000 50,000
------- -------- --------
$50,000 $119,330 $119,330
------- -------- --------
------- -------- --------
</TABLE>
(1) Costs associated with property management fees are borne by the Joint
Ventures.
The above amounts are allocable to the General Partners and their Affiliates as
follows:
<TABLE>
<CAPTION>
Earned for the Earned for the
Unpaid at six months ended six months ended
June 30,1996 June 30, 1996 June 30, 1995
------------ ------------- -------------
<S> <C> <C> <C>
NYLIFE Realty Inc. and Affiliates $50,000 $50,000 $50,000
Greystone Realty Corporation (2) - 69,330 69,330
------- -------- --------
$50,000 $119,330 $119,330
------- -------- --------
------- -------- --------
</TABLE>
(2) Under no circumstances will the amount charged to the Partnership in
respect of Greystone Realty Corporation ("Greystone"), an affiliate of New York
Life Insurance Company, exceed the limitations on payments to affiliates set
forth in the Partnership Agreement.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's cash balance of $589,448 at June 30, 1996 includes $109,386 to
pay accrued liabilities, and cash generated from operations of the Joint
Ventures and distributed to the Partnership.
During the process of winding up and liquidating the Joint Ventures and the
Partnership, the Partnership will no longer pay any semi-annual distributions to
the partners. However, upon the sale of the Partnership's assets, payment of
the Partnership's liabilities and provision for contingent liabilities,
liquidating distributions will be paid to the partners. Liquidating
distributions paid to the settling limited partners will be subject to the terms
of the Settlement Agreement.
RESULTS OF OPERATIONS
As discussed in further detail in Note 2, on July 1, 1996, the limited partners
of the Partnership approved the dissolution of the Partnership. As a result,
the Partnership has changed its basis of accounting for the period subsequent to
June 30, 1996, from the historical cost basis to the liquidation basis. Under
the liquidation basis of accounting, the Partnerships' assets at June 30, 1996
are reported at estimated net realizable value, and the Partnerships'
liabilities are presented at estimated settlement amounts. The net effect of
the revaluation of the Partnership's assets and liabilities due to the adoption
of the liquidation basis of accounting was a downward adjustment of $1,469,124,
to the Partnership's investments in real estate joint ventures. This amount was
reported on the statements of operations for the periods ended June 30, 1996 and
included in equity in loss from joint venture operations.
THREE MONTHS ENDED JUNE 30, 1996 COMPARED TO THE THREE MONTHS ENDED JUNE 30,
1995
The decrease in the Partnership's net income for the three months ended June 30,
1996 as compared to the corresponding period in 1995 is due primarily to the
write-down of assets to their net realizable values in accordance with
liquidation basis accounting. Write-downs totaling $2,947,241 were taken at the
joint venture level, which reduced the Partnership's equity in income from joint
venture operations by $1,469,124.
Cornell's net income decreased by approximately $1,015,000 for the three months
ended June 30, 1996 compared to the corresponding 1995 period. Asset write-downs
totaled $922,948, consisting of a property write-down of $675,016 to its
appraised value less estimated costs to sell and the write-off of deferred
costs totaling $247,932. The remaining decrease in income resulted from a
decrease in rental income of approximately $52,000, and an increase in operating
expenses of approximately $50,000 which was partially offset by a decrease in
depreciation of approximately $10,000. Rental income decreased as a result of a
decrease in occupancy. Operating expenses increased primarily due to the
payment of legal fees totaling approximately $35,000 for the successful appeals
of real estate tax assessments for 1991 and 1992.
Eden Woods' net income decreased by approximately $905,000 for the three months
ended June 30, 1996 compared to the corresponding 1995 period. Asset write-downs
totaled $873,782, consisting of a property write-down of $506,157 to its
appraised value less estimated costs to sell and the write-off of deferred costs
totaling $367,625. The remaining decrease in net income of approximately $30,000
was due primarily to a decrease in occupancy.
12
<PAGE>
NewMarkets' net income decreased by approximately $1,273,000 for the three
months ended June 30, 1996 compared to the corresponding 1995 period. Asset
write-downs totaled $1,150,511, consisting of a property write-down of $732,171
to its appraised value less estimated costs to sell and the write-off of
deferred costs totaling $418,340. The remaining decrease in net income of
approximately $120,000 for the quarter resulted primarily from an increase in
operating expenses and real estate taxes. Real estate taxes in the second
quarter of 1995 were significantly lower than normal due to an offsetting
property tax refund of $52,000 resulting from a successful certiorari of 1994's
tax assesment. Higher operating expenses during the 1996 quarter included
increased expenditures for advertsising and promotion, as well as higher repair
and maintenance costs for NewMarket's roof and parking lot.
SIX MONTHS ENDED JUNE 30, 1996 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1995
The decrease in the Partnership's net income for the six months ended June 30,
1996 as compared to the corresponding period in 1995 is due primarily to the
write-down of assets to their net realizable values in accordance with
liquidation basis accounting. Write-downs totaling $2,947,241 were taken at the
joint venture level, which reduced the Partnership's equity in income from Joint
Venture operations by $1,469,124.
Cornell's net income decreased by approximately $1,003,000 for the six months
ended June 30, 1996 compared to the corresponding 1995 period. Asset write-
downs totaled $922,948, consisting of a property write-down of $675,016 to its
appraised value less estimated costs to sell and the write-off of deferred costs
totaling $247,932. The remaining decrease in net income resulted primarily due
to a decrease in rental income as well as an increase in property operating
expenses.
Eden Woods' net income decreased by approximately $909,000 for the six months
ended June 30, 1996 compared to the corresponding 1995 period. Asset
write-downs totaled $873,782, consisting of a property write-down of $506,157
to its appraised value less estimated costs to sell and the write-off of
deferred costs totaling $367,625. The remaining reduction in net income of
approximately $25,000 resulted primarily from a decrease in occupancy.
NewMarkets' net income decreased by approximately $1,290,000 for the six
months ended June 30, 1996 compared to the corresponding 1995 period. Asset
write-downs totaled $1,150,511, consisting of a property write-down of
$732,171 to its appraised value less estimated costs to sell and the
write-off of deferred costs totaling $418,340. Net income decreased by
approximately $139,500 for the six months ended June 30, 1996 as compared to
the corresponding period in 1995 due primarily to a decline in rental rates.
The retail market in which NewMarket is located continues to experience rapid
development including the addition of new superstores. This development has
led to increased price competition among the retail segment. Recognizing
that high occupancy is vital to the success of a mall, management has
responded to this increased price competition by lowering rental rates so
existing tenants do not vacate.
Occupancy at Cornell, Eden Woods, and NewMarket was 95%, 87%, and 93%,
respectively, as of June 30, 1996, as compared to 97%, 98%, and 93%,
respectively, as of June 30, 1995.
13
<PAGE>
PART II. OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES
During the process of winding up and liquidating the Partnership, the
Partnership will no longer pay any semi-annual cash distributions to the
partners. However, upon the sale of the Partnership's assets, payment of the
Partnership's liabilities and provision for contingent liabilities, liquidating
distributions will be paid to the partners. Liquidating distributions paid to
the settling limited partners will be subject to the terms of the Settlement
Agreement.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Through a consent solicitation of limited partners that expired on
July 1, 1996, the limited partners of the Partnership approved the proposal
to dissolve and terminate the Partnership. The number of consents and
abstentions with respect to the proposal is set forth below:
Affirmative Withheld
Consents Consents Abstentions
Dissolution Proposal 2,218,726.978 44,834.587 25,991.438
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
None
(b) REPORTS ON FORM 8-K
None
14
<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 on August 13, 1996.
NYLIFE Realty Income Partners I, L.P.
By: NYLIFE Realty Inc.
General Partner
/S/ KEVIN M. MICUCCI
---------------------------------
By: Kevin M. Micucci
President
(Principal Executive, Financial
and Accounting Officer)
15
