Leasing Activities

6 Months Ended

Jun. 30, 2011

Leasing Activities [Abstract]

LEASING ACTIVITIES

NOTE 4 — LEASING ACTIVITIES

The Partnership leases certain 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 2022 to 2024. 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 (See Note 9).

For the three months ended June 30, 2011, the nine restaurants operated by Del Taco, for which the Partnership is the lessor, had combined, unaudited sales of $2,067,906 and unaudited net losses of $6,639, as compared to $2,166,990 and unaudited net income of $716 for the corresponding period in 2010. Net income or loss of each restaurant includes charges for general and administrative expenses incurred in connection with supervision of restaurant operations and interest expense. The decrease in net income from the corresponding period of the prior year primarily relates to the decrease in sales partially offset by the decrease in operating expenses both of which were primarily due to the loss of Unit 218 (see Note 9).

For the six months ended June 30, 2011, the nine restaurants operated by Del Taco, for which the Partnership is the lessor, had combined, unaudited sales of $4,154,885 and unaudited net losses of $31,649, as compared to $4,248,015 and unaudited net losses of $56,188 for the corresponding period in 2010. Net income or loss of each restaurant includes charges for general and administrative expenses incurred in connection with supervision of restaurant operations and interest expense. The decrease in net losses from the corresponding period of the prior year primarily relates to a decrease in operating expenses compared to the prior year, partially offset by the decrease in sales due to the loss of Unit 218 (see Note 9).