FORM 10-Q-A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly 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 0-2670
60 EAST 42ND ST. ASSOCIATES
(Exact name of registrant as specified in its charter)
A New York Partnership 13-6077181
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
60 East 42nd Street, New York, New York 10165
(Address of principal executive offices)
(Zip Code)
(212) 687-8700
(Registrant's telephone number, including area code)
N/A
(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 require-
ments for the past 90 days.
Yes [ X ]. No [ ].
An Exhibit Index is located on Page 6 of this Report.
Number of pages (including exhibits) in this filing: 6<PAGE>
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
As stated in Note B, Registrant was organized solely for
the purpose of acquiring the Property subject to a net operating
lease held by Lessee. Registrant is required to pay from Basic
Rent the annual mortgage charges due under the Mortgage and the
Basic Payment to Counsel for supervisory services. The balance of
such Basic Rent is distributed to the Participants. Additional
Rent and Further Additional Rent are distributed to the Partici-
pants after the Additional Payment to Counsel. See Note C of Item
1 above. Under the Lease, Lessee has assumed sole responsibility
for the condition, operation, repair, maintenance and management
of the Property. Registrant is not required to maintain substan-
tial reserves or otherwise maintain liquid assets to defray any
operating expenses of the Property.
Registrant does not pay dividends. During the nine
month period ended September 30, 1998, Registrant made regular
monthly distributions of $124.57 for each $10,000 participation
($1,494.89 per annum for each $10,000 participation). There are
no restrictions on Registrant's present or future ability to make
distributions; however, the amount of such distributions depends
solely on the ability of Lessee to make payments of Basic Rent,
Additional Rent and Further Additional Rent to Registrant in
accordance with the terms of the Lease. Registrant expects to
make distributions so long as it receives the payments provided
for under the Lease.
On November 30, 1998, Registrant will make an additional
distribution of $1,966.69 for each $10,000 participation. Such
distribution represents Further Additional Rent paid by the Lessee
in accordance with the terms of the Lease after the Additional
Payment to counsel. See Notes B and C.
Registrant's results of operations are affected
primarily by the amount of rent payable to it under the Lease.
The amount of Overage Rent payable to Registrant is affected by
the cycles in the New York City economy and real estate rental
market. It is difficult for management to forecast the New York
City real estate market over the next few years. The following
summarizes, with respect to the current period and the
corresponding period of the previous year, the material factors
regarding Registrant's results of operations for such periods:
Total income decreased for the three and nine month
periods ended September 30, 1998, as compared with the
three and nine month periods ended September 30, 1997.
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Such decrease resulted from a decrease in Further
Additional Rent payable by the Lessee for the lease
year ended September 30, 1998. See Note B.
Total expenses decreased for the three and nine month
periods ended September 30, 1998, as compared with the
three and nine month periods ended September 30, 1997.
Such decrease was the result of a decrease in the
Additional Payment for supervisory services to be made
to Counsel based on Further Additional Rent for the
lease year ended September 30, 1998, as compared with
payments for supervisory services with respect to
Further Additional Rent for the lease year ended
September 30, 1997. See Note B.
Liquidity and Capital Resources
There has been no significant change in Registrant's
liquidity for the nine month period ended September 30, 1998, as
compared with the nine month period ended September 30, 1997.
No amortization payments are due under the Mortgage to
fully satisfy the outstanding principal balance at maturity, and
furthermore Registrant does not maintain any reserve to cover the
payment of such Mortgage indebtedness at maturity. Therefore,
repayment of the Mortgage will depend on Registrant's ability to
arrange a refinancing. Assuming that the Property continues to
generate an annual net profit in future years comparable to that
in past years, and assuming further that current real estate
trends continue in the geographic area in which the Property is
located, Registrant anticipates that the value of the Property
would be in excess of the amount of the Mortgage balance at
maturity.
Registrant anticipates that funds for working capital
for the Property will be provided by rental payments received from
Lessee and, to the extent necessary, from additional capital
investment by the partners in Lessee and/or external financing.
However, as noted above, Registrant has no requirement to maintain
substantial reserves to defray any operating expenses of the
Property. Registrant foresees no need to make material
commitments for capital expenditures while the Lease is in effect.
Inflation
Registrant has been advised that there has been no
material change in the impact of inflation on its operations since
the filing of its report on Form 10-K for the year ended December
31, 1997, which report and all exhibits thereto are incorporated
herein by reference and made a part hereof.
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Year 2000 Issues
Pursuant to SEC Release No. 33-7558, the
Securities and Exchange Commission ("SEC") has instructed
registrants to make suitable disclosure regarding year
2000 readiness. Accordingly, Registrant reports the
following:
Registrant receives base and overage rent from
Sublessee, for which Helmsley-Spear, Inc. manages the property as
Sublessee's managing and leasing agent. Registrant's supervisor,
Wien & Malkin LLP, has requested the managing agent to provide
information related to its Year 2000 readiness. However, this
information has not yet been provided by the managing agent.
Registrant will continue to seek information related to Year 2000
readiness from the managing agent.
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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 thereunto duly authorized.
The individual signing this report on behalf of
Registrant is Attorney-in-Fact for Registrant and each of the
Partners in Registrant, pursuant to Powers of Attorney, dated
March 18, 1998, March 20, 1998 and May 14, 1998 (collectively, the
"Power").
60 EAST 42ND ST. ASSOCIATES
(Registrant)
By: /s/ Stanley Katzman
Stanley Katzman, Attorney-in-Fact*
Dated: March 31, 1999
Pursuant to the requirements of the Securities Exchange
Act of 1934, this report has been signed by the undersigned as
Attorney-in-Fact for each of the Partners in Registrant, pursuant
to the Power, on behalf of Registrant on the date indicated.
By: /s/ Stanley Katzman
Stanley Katzman, Attorney-in-Fact*
Dated: March 31, 1999
__________________________
* Mr. Katzman supervises accounting functions for Registrant.
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EXHIBIT INDEX
Number Document Page*
3(a) Partnership Agreement, dated
September 25, 1958, which was
filed by letter dated March 31,
1981 (Commission File No.
0-2670) as Exhibit No. 3 to
Registrant's Form 10-K for the
fiscal year ended December 31,
1980, and is incorporated by
reference as an exhibit hereto.
3(b) Amended Business Certificate of
Registrant filed with the Clerk
of New York County on November
28, 1997, reflecting a change
in the Partners of Registrant,
was filed as Exhibit 3(b) to
Registrant's 10-Q for the
quarter ended March 31, 1998,
and is incorporated by
reference as an exhibit hereto.
24 Powers of Attorney dated
March 18, 1998, March 20, 1998
and May 14, 1998 between the
Partners of Registrant and
Stanley Katzman and Richard A.
Shapiro which were filed as
Exhibit 24 to Registrant's 10-Q
for the quarter ended March 31,
1998 and is incorporated by
reference as an exhibit hereto.
__________________________
* Page references are based on sequential numbering system.
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