7
UNITED STATES
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 period ended September 30, 1998
OR
[ ]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: 0-18148
DEAN WITTER REALTY YIELD PLUS, L.P.
(Exact name of registrant as specified in governing instrument)
Delaware 13-3426531
(State of organization) (IRS Employer
Identification No.)
2 World Trade Center, New York, NY 10048
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212)
392-1054
Former name, former address and former fiscal year, if changed
since last report: not applicable
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
<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30,
December 31,
1998 1997
<S> <C>
<C>
ASSETS
Real estate:
Land $
2,204,747 $ 6,267,858
Buildings and improvements 10,455,047
44,072,371
12,659,794
50,340,229
Accumulated depreciation 1,883,211
5,847,422
10,776,583
44,492,807
Real estate held for sale -
36,896,371
Investment in unconsolidated partnership 19,151,640
19,721,195
Cash and cash equivalents 4,096,995
4,584,786
Deferred expenses, net 49,134
882,731
Other assets 295,447
1,384,385
$34,369,799
$107,962,275
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable and other liabilities $ 483,186 $
3,343,047
Minority interest -
18,544,593
Mortgage notes payable -
10,566,268
483,186
32,453,908
Partners' capital (deficiency):
General partners (7,464,010)
(7,472,965)
Limited partners ($20 per Unit, 8,909,969 Units issued
and outstanding) 41,350,623
82,981,332
Total partners' capital 33,886,613
75,508,367
$34,369,799
$107,962,275
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and nine months ended September 30, 1998 and 1997
<CAPTION>
Three months ended
Nine months ended
September 30,
September 30,
1998 1997 1998 1997
<S> <C> <C> <C>
<C>
Revenues:
Rental $ 934,278
$4,495,470 $ 7,653,510 $13,126,885
Gains on sales of real estate 39,941,559 -
65,193,458 -
Equity in earnings of
unconsolidated partnership 277,913 -
143,198 -
Interest on participating mortgage
loan - 174,071
- - 349,011
Interest on cash equivalents and other
revenues 196,680 154,617
755,263 525,279
41,350,430 4,824,158
73,745,429 14,001,175
Expenses:
Property operating 388,189 2,703,633
2,393,749 9,193,427
Depreciation 72,871 970,143
676,355 2,917,233
Amortization 2,752 106,388
90,420 301,364
Interest 34,117 296,517
404,509 1,096,918
General and administrative 116,086
242,589 390,594 724,337
614,015 4,319,270
3,955,627 14,233,279
Income (loss) before minority interest 40,736,415
504,888 69,789,802 (232,104)
Minority interest - 212,069
13,238,547 646,125
Income (loss) before extraordinary item 40,736,415
292,819 56,551,255 (878,229)
Extraordinary item:
Gain on extinguishment of debt
due to foreclosure - 406,380 -
406,380
Net income (loss) $40,736,415 $ 699,199
$56,551,255 $ (471,849)
Net income (loss) allocated to:
Limited partners $40,656,930 $ 629,279
$56,147,290 $ (424,664)
General partners 79,485 69,920
403,965 (47,185)
$40,736,415 $ 699,199
$56,551,255 $ (471,849)
(continued)
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and nine months ended September 30, 1998 and 1997
(continued)
<CAPTION>
Three months ended
Nine months ended
September 30,
September 30,
1998 1997 1998 1997
<S> <C> <C> <C>
<C>
Net income (loss) per Unit of limited
partnership interest:
Net income (loss) before
extraordinary item $ 4.56 $ .03 $
6.30 $ (.09)
Extraordinary gain - .04 -
.04
Net income (loss) $ 4.56 $ .07 $
6.30 $ (.05)
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL (DEFICIENCY)
Nine months ended September 30, 1998
<CAPTION>
Limited General
Partners Partners Total
<S> <C> <C>
<C>
Partners' capital (deficiency)
at January 1, 1998 $ 82,981,332
$(7,472,965) $ 75,508,367
Net income 56,147,290
403,965 56,551,255
Cash distributions (97,777,999)
(395,010) (98,173,009)
Partners' capital (deficiency)
at September 30, 1998 $ 41,350,623
$(7,464,010) $ 33,886,613
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, 1998 and 1997
<CAPTION>
1998 1997
<S> <C>
<C>
Cash flows from operating activities:
Net income (loss) $ 56,551,255 $
(471,849)
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
Gains on sales of real estate (65,193,458)
- -
Minority interest in earnings of consolidated partnership
13,238,547 646,125
Depreciation and amortization 766,775
3,218,597
Equity in earnings of unconsolidated partnership
(143,198) -
Gain on extinguishment of debt -
(406,380)
Increase in deferred expenses (212,967)
(324,898)
Decrease in other assets 612,407
506,396
(Decrease) increase in accounts payable and other liabilities
(2,859,861) 320,575
Net cash provided by operating activities
2,759,500 3,488,566
Cash flows from investing activities:
Proceeds from sales of real estate, net of closing costs
136,935,777 -
Distributions from unconsolidated partnership
1,305,175 -
Contributions to unconsolidated partnership (592,422)
- -
Additions to real estate (373,404)
(758,350)
Net cash provided by (used in) investing activities
137,275,126 (758,350)
Cash flows from financing activities:
Cash distributions (98,173,009)
(3,860,988)
Minority interest in distributions from consolidated partnership
(31,954,354) (1,490,771)
Contributions by minority interest to consolidated partnership
171,214 311,484
Repayments of mortgage note payable (10,566,268)
(546,814)
Net cash used in financing activities (140,522,417)
(5,587,089)
Decrease in cash and cash equivalents (487,791)
(2,856,873)
Cash and cash equivalents at beginning of period
4,584,786 6,799,320
Cash and cash equivalents at end of period $ 4,096,995 $
3,942,447
Supplemental disclosure of cash flow information:
Cash paid for interest $ 404,509 $
794,027
(continued)
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine months ended September 30, 1998 and 1997
(continued)
<CAPTION>
1998 1997
<S> <C>
<C>
Supplemental disclosure of non-cash investing activities:
Reclassification of real estate held for sale:
Real estate:
Land $ -
$ 1,387,066
Building and improvements -
7,171,556
Accumulated depreciation -
(3,450,083)
Real estate held for sale $ - $
5,108,539
Supplemental disclosures of non-cash financing activities:
Extinguishment of debt and loss of real estate through
foreclosure:
Balance due on mortgage note payable $ -
$(8,590,000)
Write-off:
Real estate:
Land -
1,809,535
Building -
6,830,465
Accumulated depreciation -
(565,640)
-
8,074,360
Decrease in other assets -
112,010
Decrease in accounts payable and other liabilities -
(2,750)
Gain on extinguishment of debt due to foreclosure $ -
$ (406,380)
See accompanying notes to consolidated financial statements.
</TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
1. The Partnership
Dean Witter Realty Yield Plus, L.P. (the "Partnership") is a
limited partnership organized under the laws of the State of
Delaware in 1987. The Managing General Partner of the
Partnership is Dean Witter Realty Yield Plus Inc., which is
wholly-owned by Dean Witter Realty Inc. ("Realty").
The financial statements include the accounts of the
Partnership, DW Columbia Gateway Associates, DW Michelson
Associates ("DMA"), DW Lakeshore Associates, Deptford
Crossing Associates, DW Community Centers Limited
Partnership and DW Maplewood Inc. on a consolidated basis.
All significant intercompany accounts and transactions have
been eliminated.
Effective October 27, 1997, the Partnership began accounting
for its investment in GCGA Limited Partnership ("GCGA")
under the equity method.
The Partnership's records are maintained on the accrual
basis of accounting for financial reporting and tax
purposes.
Net income (loss) per Unit amounts are calculated by
dividing net income (loss) allocated to Limited Partners, in
accordance with the Partnership Agreement, by the weighted
average number of Units outstanding.
In the opinion of management, the accompanying financial
statements, which have not been audited, include all
adjustments necessary to present fairly the results for the
interim periods. Except for the gain on the sale of the 401
East Ontario Street property in the third quarter of 1998,
the gain on the sale of the Michelson property in the second
quarter of 1998 and reserves of uncollected interest
relating to the participating mortgage loan in each quarter
of 1997, such adjustments consist only of normal recurring
accruals.
The Partnership adopted Financial Accounting Standards Board
Statement No. 130, "Reporting Comprehensive Income" and
Statement No. 131, "Disclosures about Segments of an
Enterprise and Related Information" during the first quarter
of 1998. Adoption of these standards had no impact on the
Partnership's computation or presentation of net income per
Unit of Limited Partnership interest or other disclosures.
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
These financial statements should be read in conjunction
with the annual financial statements and notes thereto
included in the Partnership's annual report on Form 10-K
filed with the Securities and Exchange Commission for the
year ended December 31, 1997. Operating results of interim
periods may not be indicative of the operating results for
the entire year.
2. Real Estate
In March 1998, the Partnership received $1.2 million
(recognized as a reduction of property operating expenses)
pursuant to a settlement with the architect and engineer of
the 401 East Ontario Street property. The Partnership had
initiated litigation against these parties and others
because it deemed them responsible for defects in the design
and construction of the building which, in turn, caused the
Partnership to incur significant repair costs in 1995-1997.
The Partnership is continuing its litigation against the
general contractor and others.
In August 1997, the Genessee Crossing shopping center was
foreclosed upon by the first mortgage lender, and, in March
1998, the lender took final possession of the property. An
extraordinary gain on the extinguishment of the related debt
was recognized in the third quarter of 1997.
3. Sales of Real Estate
Pursuant to a Purchase and Sale Agreement dated as of
December 26, 1997, DMA agreed to sell to SC Enterprises
("SCE") DMA's 90% general partnership interest in Michelson
Company Limited Partnership (the "Company"), owner of the
Michelson property, and two promissory notes (totaling
approximately $1.2 million) due from SCE for a negotiated
aggregate sale price of $64 million. SCE, an affiliate of
the developer of the property, owned the remaining 10%
limited partnership interest in the Company. SCE assigned
its right to purchase the interest in the Company to Spieker
Properties, L.P., which is not affiliated with the
Partnership, its affiliated partnerships or SCE.
As a result of the agreement, the Partnership reclassified
the net carrying value of the Michelson property to real
estate held for sale on December 31, 1997.
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
The sale price was received in cash at closing on April 3,
1998. On April 28, 1998, the Partnership distributed
approximately $32.4 million ($3.635 per Unit), its share of
the net proceeds from the sale, 100% to the Limited
Partners. The Partnership's share of the gain on sale of
the property was approximately $12.6 million; such gain was
allocated 100% to the Limited Partners in accordance with
the Partnership Agreement.
Pursuant to a Purchase and Sale Agreement dated July 17,
1998 (the "Agreement"), the Partnership sold the 401 East
Ontario Street property on the date of the Agreement to
Streeterville Development Associates, LLC ("SDA"), for a
negotiated sale price of $74.5 million. SDA is an
unaffiliated party; however, Draper and Kramer Inc., which
owns 37.5% of SDA, was the manager of the 401 East Ontario
property while it was owned by the Partnership. The
Partnership used a portion of the sales proceeds to repay
the mortgage note payable.
As a result of the above transactions, on July 17, 1998, the
Partnership received sales proceeds, net of the mortgage
note repayment, closing costs and other deductions, of
approximately $62.8 million. On July 31, 1998, the
Partnership distributed approximately $61.8 million of such
proceeds 100% to Limited Partners ($6.94 per Unit). The
Partnership's gain on the sale of this property was
approximately $39.9 million and was allocated 100% to the
Limited Partners in accordance with the Partnership
Agreement.
<TABLE>
4. Investment in Unconsolidated Partnership
Summarized financial information of GCGA is as follows:
<CAPTION>
Three months ended Nine
months ended
September 30,
September 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Revenues $ 3,141,144 $ 2,995,764 $
8,294,913 $ 8,732,021
Expenses:
Interest on second mortgage loan 1,946,877
2,073,987 5,522,127 6,154,330
Other interest 948,068 886,182
2,845,186 2,658,544
Property operating 1,521,155 1,148,417
4,468,924 3,408,139
Depreciation and amortization 459,082
485,036 1,377,246 1,455,108
4,875,182 4,593,622
14,213,483 13,676,121
Net loss $(1,734,038) $(1,597,858)
$(5,918,570) $(4,944,100)
</TABLE>
DEAN WITTER REALTY YIELD PLUS, L.P.
Notes to Consolidated Financial Statements
GCGA's second mortgage loan is the participating mortgage
loan from the Partnership (58%) and Dean Witter Realty Yield
Plus II L.P., an affiliated partnership (42%). Prior to
October 27, 1997, the Partnership recognized interest income
on this loan and reserved any interest not paid by GCGA
(during the nine months ended September 30, 1997, GCGA paid
to the Partnership $349,011 of $2,055,353 total interest
due). Effective October 27, 1997, the Partnership began
recognizing its share of GCGA's earnings exclusive of GCGA's
interest expense on the second mortgage loan.
5. Related Party Transactions
In 1998 and 1997, Realty and an affiliate of Realty provided
property management services for the Deptford Crossing and
Michelson properties, and, in 1997 only, the Genessee
Crossing and Greenway Pointe properties. The Partnership
paid Realty and its affiliate management fees of
approximately $64,000 and $179,000 during the nine months
ended September 30, 1998 and 1997, respectively. These
amounts are included in property operating expenses.
Realty performs administrative functions, processes certain
investor transactions and prepares tax information for the
Partnership. For the nine-month periods ended September 30,
1998 and 1997, the Partnership incurred approximately
$223,000 and $295,000, respectively, for these services.
These amounts are included in general and administrative
expenses.
As of September 30, 1998, Realty and its affiliate were owed
approximately $33,000 for the above-mentioned services.
6. Litigation
Various public partnerships sponsored by Realty (including
the Partnership and its Managing General Partner) were
defendants in a class action lawsuit. On July 17, 1998, the
Delaware Chancery Court granted the defendants' motion to
dismiss the complaint in the lawsuit. The Plaintiffs filed
a notice of appeal from the Court's order.
DEAN WITTER REALTY YIELD PLUS, L.P.
ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Liquidity and Capital Resources
The Partnership completed a $178,199,380 public offering in
1987. The Partnership has no plans to raise additional
capital.
The Partnership originally invested in seven loans or land
leases. Due to the past weakness in real estate markets, the
properties securing the loans did not generate sufficient
cash flow to fully service their debt. As a result, the
Partnership acquired all of the properties in which it
originally invested. No additional investments are planned.
The partnership which owns the Michelson property (in which
the Partnership is a 50.81% general partner) sold the
property on April 3, 1998 (see Note 3 to the consolidated
financial statements). On April 28, 1998, the Partnership
distributed approximately $32.4 million ($3.635 per Unit),
its share of the net proceeds from the sale, 100% to Limited
Partners. The Partnership's share of 1998 operating cash
flow from the Michelson property was approximately $581,000.
The Partnership sold the 401 East Ontario Street property on
July 17, 1998 for approximately $74.5 million (see Note 3 to
the consolidated financial statements). The Partnership
repaid the mortgage note payable with proceeds from the
sale, and on July 31, 1998, the Partnership distributed
approximately $61.8 million ($6.94 per Unit) of the net
proceeds from the sale 100% to Limited Partners. In 1998,
the property generated cash flow from operations of
approximately $3.1 million.
As a result of the 1998 property sales, the November 1997
sale of the Greenway Pointe office building and the August
1997 loss of the Genessee Crossing shopping center,
Partnership cash flow from operations decreased during the
nine-months ended September 30, 1998 compared to 1997.
The Managing General Partner is currently marketing for sale
the Deptford Crossing property. The partnership which owns
the One Congress Street property ("GCGA") has begun to
market its property for sale during the fourth quarter of
1998. There can be no assurance that these properties will
be sold.
DEAN WITTER REALTY YIELD PLUS, L.P.
During the nine months ended September 30, 1998, all of the
Partnership's remaining property interests generated
positive cash flow from operations, and it is anticipated
that the Deptford Crossing and One Congress Street
properties will continue to do so during the period the
Partnership continues to own these property interests.
During the nine months ended September 30, 1998, the
Partnership incurred capital costs of approximately
$415,000, primarily for tenant-related capital expenditures
at the Michelson (net of contributions by the minority
interest) and Deptford Crossing properties.
During the nine months ended September 30, 1998,
distributions to investors (excluding the distribution of
sale proceeds), capital expenditures, contributions to GCGA
and distributions to the minority interest (excluding the
distribution of sale proceeds) exceeded cash flow from
operations of real estate (net of minority interest share)
and distributions from GCGA. This deficiency was funded
with Partnership cash reserves.
On May 8, 1998, the Partnership distributed $0.151 per Unit
from cash reserves to the Limited Partners. This cash
distribution aggregated $1,494,894, with $1,345,405
distributed to Limited Partners and $149,489 distributed to
General Partners.
GCGA and the Government Services Administration ("GSA"), the
sole tenant of the office space at the One Congress Street
property, amended their lease to expand GSA's occupancy by
approximately 20,000 square feet and postpone GSA's right to
exercise its one-time option to terminate its lease on all
or a portion of its space to the year ending July 31, 2004.
In return, GCGA will fund tenant improvements of up to
$2,580,000; $1,250,000 of this amount (plus interest at 8%)
will be repaid by GSA in monthly installments over five
years. In addition, GCGA is required to fund leasing
commissions of up to $1,560,000. The maximum amount of the
Partnership's share of the above-mentioned tenant-related
expenditures (58%) is approximately $2,400,000 (of which
$725,000 would be repaid by GSA, as described above); the
Partnership has paid approximately $592,000 of these
expenditures through September 30, 1998.
GCGA is currently negotiating to lease the remaining vacant
office space at the One Congress Street property
(approximately 23% of the space) to a new tenant; as a
result, GCGA may incur significant capital expenditures
DEAN WITTER REALTY YIELD PLUS, L.P.
and leasing commissions to fill the vacant space. The
Partnership will be required to fund its 58% share of GCGA's
capital expenditures.
The Managing General Partner believed that the Partnership
did not have sufficient cash reserves to fully fund its
potential liability for its share of capital expenditures
and leasing commissions at the One Congress Street property
and other Partnership cash requirements. Therefore, in order
to increase cash reserves, the Partnership did not pay its
second and third quarter distributions, and withheld
approximately $900,000 from the distribution of proceeds
from the sale of the 401 East Ontario Street property to
Limited Partners. Generally, future cash distributions will
be paid from proceeds received from the sales of the
Deptford Crossing and One Congress Street properties and
cash reserves.
Deferred expenses, other assets and accounts payable and
other liabilities decreased in 1998 primarily as a result of
the sale of the Michelson and 401 East Ontario Street
properties.
Except as discussed above and in the consolidated financial
statements, the Managing General Partner is not aware of any
trends or events, commitments or uncertainties that may have
a material impact on liquidity.
Operations
Fluctuations in the Partnership's operating results for the
three- and nine-month periods ended September 30, 1998
compared to 1997 are primarily attributable to the
following:
During the three- and nine-month periods, rental income
decreased by approximately $3,668,000 and $6,470,000,
respectively, as a result of the sales of the Greenway
Pointe (November 1997), Michelson (April 1998) and 401 East
Ontario (July 1998) properties and the loss through
foreclosure of the Genessee Crossing property (August 1997)
(collectively, the "Discontinued Properties"). The decrease
caused by the Discontinued Properties during the nine-month
period ended September 30, 1998 was partially offset by an
increase in rental revenue at the 401 East Ontario Street
property of approximately $900,000. This increase resulted
from higher occupancy and rental rates at the property in
1998 and the discontinuance of rental concessions and free
rent.
DEAN WITTER REALTY YIELD PLUS, L.P.
The 1998 gains on sales of real estate consist of gains on
the Michelson property, of approximately $25.2 million in
the second quarter (the minority interest share of the gain
was approximately $12.7 million), and
the 401 East Ontario property, of approximately $39.9
million in the third quarter.
In 1998, there was no interest recorded on the Partnership's
participating mortgage loan to GCGA because, effective
October 27, 1997, the Partnership began recognizing its
share of income from the property using the equity method of
accounting.
During the three- and nine-month periods, interest on cash
equivalents increased due to interest earned on the proceeds
from the 1998 property sales before such proceeds were
distributed to Limited Partners.
During the three- and nine-month periods, property operating
expenses decreased by $1,482,000 and $2,470,000,
respectively, as a result of the sale and loss of the
Discontinued Properties. Property operating expenses also
decreased at the 401 East Ontario Street property in these
periods due to the absence of expenditures for repairs and
related litigation (such costs totaled $810,000 and
$2,995,000 for the three- and nine-month periods ended
September 30, 1997, respectively) and due to the first
quarter 1998 receipt of a $1.2 million settlement for
litigation concerning repairs made at the property during
1995-1997 (See Note 2 to the consolidated financial
statements).
During the three- and nine-month periods, depreciation and
amortization expenses decreased by a total of $1,001,000 and
$2,452,000, respectively, as a result of the sale and loss
of the Discontinued Properties.
During the three- and nine-month periods, interest expense
decreased by approximately $162,000 and $188,000,
respectively, due to the repayment of the mortgage note
payable on July 17, 1998. In these periods, interest
expense also decreased by $100,000 and $503,000,
respectively, due to the extinguishment of the mortgage note
secured by the Genessee property upon the loss of such
property in August 1997.
There were no other individually significant factors which
caused changes in revenues or expenses.
A summary of the markets where the Partnership's remaining
properties are located, and the performance of each property
is as follows:
DEAN WITTER REALTY YIELD PLUS, L.P.
Currently, the vacancy rate in the downtown Boston office
market, the location of One Congress Street, is
approximately 7%, and rental rates in this market are
stable. There is no significant new construction in this
market. The lease with GSA has been amended to include
additional space that was occupied starting October 1998.
The current lease is scheduled to expire no earlier than
August 1, 2003. The remaining 23% of the office space is
currently vacant. The lease for 100% of the parking lot
space at the property with Kinney Systems, Inc. expires in
2003. As part of the amended lease with GSA, GSA also
leased a small portion of retail space; however, the retail
space, which is not a significant portion of the overall
space, remained substantially vacant.
Currently, the vacancy rate in the retail market in
Deptford, New Jersey, the location of Deptford Crossing, is
approximately 5%. During the third quarter of 1998,
occupancy at the property remained at approximately 81%. No
significant leases expire before 2001.
During the nine-month period ended September 30, 1998, the
Deptford property incurred rental revenues, property
operating expenses and depreciation and amortization
expenses of approximately $1,371,000, $355,000 and $261,000,
respectively.
Inflation
Inflation has been consistently low during the periods
presented in the financial statements and, as a result, has
not had a significant effect on the operations of the
Partnership or its properties.
DEAN WITTER REALTY YIELD PLUS, L.P.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On August 14, 1998, the plaintiff in the
Consolidated Action filed a notice of appeal from
the order of the Delaware Chancery Court which
granted the defendants' motion to dismiss the
complaint.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
An exhibit index has been filed as part of this
Report on Page E1.
(b) Report on Form 8-K.
Report dated July 17, 1998 regarding the
sale of the 401 East Ontario property.
DEAN WITTER REALTY YIELD PLUS, L.P.
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.
DEAN WITTER REALTY YIELD PLUS,
L.P.
By: Dean Witter Realty Yield Plus
Inc.
Managing General Partner
Date: November 16, 1998 By: /s/E.
Davisson Hardman, Jr.
E. Davisson Hardman, Jr.
President
Date: November 16, 1998 By: /s/Charles
M. Charrow
Charles M. Charrow
Controller
(Principal Financial and
Accounting Officer)
DEAN WITTER REALTY YIELD PLUS, L.P.
Quarter Ended September 30, 1998
Exhibit Index
Exhibit No. Description
27 Financial Data Schedule
E1
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Registrant is a limited partnership which invests in real estate,
participating mortgage loans, and real estate joint ventures. In
accordance with industry practice, its balance sheet is unclassified. For
full information, refer to the accompanying unaudited financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 4,096,995
<SECURITIES> 0
<RECEIVABLES> 202,662
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,369,799<F1>
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 33,886,613<F2>
<TOTAL-LIABILITY-AND-EQUITY> 34,369,799<F3>
<SALES> 0
<TOTAL-REVENUES> 73,745,429<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 16,789,665
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 404,509
<INCOME-PRETAX> 56,551,255
<INCOME-TAX> 0
<INCOME-CONTINUING> 56,551,255
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 56,551,255
<EPS-PRIMARY> 6.30<F5>
<EPS-DILUTED> 0
<FN>
<F1>In addition to cash and receivables, total assets include net investments
in real estate of $10,776,583, investment in unconsolidated partnership of
$19,151,640, net deferred expenses of $49,134 and other assets of $92,785.
<F2>Represents partners' capital.
<F3>Liabilities include accounts payable and other liabilities of $483,186.
<F4>Total revenue includes rent of $7,653,510, gain on sale of real estate
of $65,193,458, equity in earnings of unconsolidated partnership of $143,198
and interest on cash equivalents and other revenue of $755,263.
<F5>Represents net income per Unit of limited partnership interest.
</FN>
</TABLE>
