Leasing Activities

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Leasing Activities

NOTE 3 - LEASING ACTIVITIES

The Partnership leases its properties for operation of restaurants to Del Taco on a triple net basis. The leases are for terms of 35 years commencing with the completion of the restaurant facility located on each property and require monthly rentals equal to 12 percent of the gross sales of the restaurants. The leases expire in the years 2020 to 2021. Pursuant to the lease agreements, minimum rentals of $3,500 per month are due to the Partnership during the first six months of any non-operating period caused by an insured casualty loss. The Partnership had a total of six properties leased as of December 31, 2014, 2013 and 2012, one of which has been subleased to a Del Taco franchisee for each of the three years ended December 31, 2014.

The five restaurants operated by Del Taco, for which the Partnership is the lessor, had combined, unaudited sales of $5,783,887, $5,500,615 and $5,284,393 and unaudited net income of $41,164 and unaudited net losses of $20,169 and $22,807 for the years ended December 31, 2014, 2013 and 2012, respectively. Del Taco net income by restaurant includes charges for general and administrative expenses incurred in connection with supervision of restaurant operations and interest expense and the decrease in net loss from the corresponding period of the prior year primarily relates to increases in sales. The one restaurant operated by a Del Taco franchisee, for which the Partnership is the lessor, had unaudited sales of $930,225, $886,332 and $863,302 for the years ended December 31, 2014, 2013 and 2012, respectively.