UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED APRIL 30, 1999
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from ______ to _______ .
Commission File Number: 0-18076
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
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(Exact name of registrant as specified in its charter)
Delaware 04-3038480
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(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
265 Franklin Street, Boston, Massachusetts 02110
- ------------------------------------------ -----
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-8118
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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 |_|.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
BALANCE SHEETS
April 30, 1999 and July 31, 1998 (Unaudited)
(In thousands)
ASSETS
April 30 July 31
-------- -------
Investments in Debt Securities:
Mortgage-Backed Securities available
for sale $ 3,056 $ 4,178
Participating Insured Mortgage Loans
available for sale 18,253 18,447
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21,309 22,625
Cash and cash equivalents 1,185 1,702
Interest and other receivables 146 156
Deferred expenses, net 222 354
-------- --------
$ 22,862 $ 24,837
======== ========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable - affiliates $ 27 $ 27
Accounts payable and accrued expenses 43 50
Partners' capital 22,792 24,760
-------- --------
$ 22,862 $ 24,837
======== ========
See accompanying notes.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the three and nine months ended April 30, 1999 and 1998 (Unaudited)
(In thousands, except per Unit data)
Three Months Ended Nine Months Ended
April 30, April 30,
------------------ -----------------
1999 1998 1999 1998
---- ---- ---- ----
Revenues:
Interest income -
Debt Securities $ 430 $ 465 $ 1,315 $ 1,410
Interest income -
Money Market 21 17 74 58
------- ------- ------- -------
451 482 1,389 1,468
Expenses:
Management fees 47 50 143 152
General and administrative 61 46 152 158
Amortization expense 43 43 132 132
------- ------- ------- -------
151 139 427 442
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Net income 300 343 962 1,026
Other comprehensive income (loss):
Unrealized holding losses
on debt securities (2) (245) (122) (77)
------- ------- ------- -------
Comprehensive income $ 298 $ 98 $ 840 $ 949
======= ======= ======= =======
Net income per Unit of
Depositary Receipt $ 0.54 $ 0.61 $ 1.73 $ 1.84
======= ======= ======= =======
Cash distributions per Unit of
Depositary Receipt $ 3.35 $ 1.88 $ 5.07 $ 3.65
======= ======= ======= =======
The above net income and cash distributions per Unit of Depositary Receipt
are based upon the 551,604 Units outstanding for each period.
See accompanying notes.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
For the nine months ended April 30, 1999 and 1998 (Unaudited)
(In thousands)
Corporate Limited
General Partner and
Partner Unitholders
------- -----------
Balance at July 31, 1997 $ (2) $ 25,905
Comprehensive income:
Net income 10 1,016
Net unrealized holding losses
on debt securities - (77)
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10 939
Cash distributions (12) (2,014)
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Balance at April 30, 1998 $ (4) $ 24,830
====== ========
Balance at July 31, 1998 $ (4) $ 24,764
Comprehensive income:
Net income 10 952
Net unrealized holding losses
on debt securities - (122)
------ --------
10 830
Cash distributions (12) (2,796)
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Balance at April 30, 1999 $ (6) $ 22,798
====== ========
See accompanying notes.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended April 30, 1999 and 1998
Increase (Decrease) in Cash and Cash Equivalents (Unaudited)
(In thousands)
1999 1998
---- ----
Cash flows from operating activities:
Net income $ 962 $ 1,026
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization expense 132 132
Amortization of discount/premium on debt
securities 46 46
Changes in assets and liabilities:
Interest and other receivables 10 6
Accounts payable - affiliates - (1)
Accounts payable and accrued expenses (7) 1
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Total adjustments 181 184
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Net cash provided by operating activities 1,143 1,210
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Cash flows from investing activities:
Principal collections on Mortgage-Backed
Securities 1,080 668
Principal collections on Participating Insured
Mortgage Loans 68 62
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Net cash provided by investing activities 1,148 730
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Cash flows from financing activities:
Distributions to Unitholders and partners (2,808) (2,026)
------ -------
Net decrease in cash and cash equivalents (517) (86)
Cash and cash equivalents, beginning of period 1,702 1,310
------ -------
Cash and cash equivalents, end of period $1,185 $ 1,224
====== =======
See accompanying notes.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
Notes to Financial Statements
(Unaudited)
1. General
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The accompanying financial statements, footnotes and discussion should be
read in conjunction with the financial statements and footnotes contained in the
Partnership's Annual Report for the year ended July 31, 1998. In the opinion of
management, the accompanying financial statements, which have not been audited,
reflect all adjustments necessary to present fairly the results for the interim
period. All of the accounting adjustments reflected in the accompanying interim
financial statements are of a normal recurring nature.
The accompanying financial statements have been prepared on the accrual
basis of accounting in accordance with generally accepted accounting principles
which requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets
and liabilities as of April 30, 1999 and July 31, 1998 and revenues and expenses
for each of the three and nine-month periods ended April 30, 1999 and 1998.
Actual results could differ from the estimates and assumptions used.
2. Mortgage-Backed Securities
--------------------------
At April 30, 1999 and July 31, 1998, the Partnership held
non-participating mortgage-backed securities ("MBS") backed by single-family or
multi-family mortgage loans issued or originated in connection with the housing
programs of the Government National Mortgage Association ("GNMA"), and
guaranteed by GNMA, as follows (in thousands):
April 30, 1999 July 31, 1998
-------------------------------- ----------------------------------
Estimated Estimated
Market Face Amortized Market Face Amortized
Description Value Value Cost Value Value Cost
----------- ----- ----- ---- ----- ----- ----
9.5% GNMA Pool $ 1,152 $ 1,069 $ 1,064 $ 1,394 $ 1,294 $ 1,286
9.0% GNMA Pool 106 100 104 178 174 181
8.0% GNMA Pool 1,678 1,609 1,663 2,382 2,289 2,376
7.5% GNMA Pool 120 117 116 224 218 216
------- ------- ------- ------- ------- -------
$ 3,056 $ 2,895 $ 2,947 $ 4,178 $ 3,975 $ 4,059
======= ======= ======= ======= ======= =======
The Partnership's investments in MBS are carried at fair value as of April
30, 1999 and July 31, 1998. Investments in MBS are valued based on quoted market
prices. The amortized cost of the MBS represents the face value of the
securities net of unamortized premium or discount. Beginning in fiscal 1998, the
premiums and discounts are being amortized on a straight-line basis over the
expected remaining holding periods of the investments of three years. Prior to
fiscal 1998, the premium and discounts were being amortized over an original
estimated holding period of fifteen years. Investments in non-participating MBS
were limited to no more than 30% of the original net offering proceeds per the
terms of the Partnership's offering prospectus.
The 9.5% MBS, which were purchased at a discount on December 14, 1988,
carry a coupon interest rate of 9.5% per annum and include loans with scheduled
maturities between June 2009 and December 2009. The 9.0% MBS, which were
purchased at a premium on November 16, 1989, carry a coupon interest rate of
9.0% per annum and include loans with scheduled maturities between June 2001 and
September 2002. The 8.0% MBS, which were purchased at a premium on July 30,
1992, carry a coupon interest rate of 8.0% per annum and include loans with
scheduled maturities in June 2022. The 7.5% MBS, which were purchased at a
discount on October 30, 1992, carry a coupon interest rate of 7.50% per annum
and include loans with scheduled maturities in March 2022. The loans included in
these GNMA pool programs may be prepaid, without penalty, at any time.
3. Investments in Participating Insured Mortgage Loans
----------------------------------------------------
Participating Insured Mortgage Loans secured by GNMA securities
outstanding at April 30, 1999 and July 31, 1998 are comprised of the following
(in thousands):
April 30, 1999 July 31, 1998
---------------------- ----------------------
GNMA Estimated Estimated
Certificate Interest Market Amortized Market Amortized
Number Property Rate Value Cost Value Cost
------ -------- ---- ----- ---- ----- ----
279985 Quarter Mill 8.50% $ 7,334 $ 7,104 $ 7,403 $ 7,132
279119 Emerald Cove 8.75% 10,919 10,522 11,044 10,576
-------- -------- -------- --------
$ 18,253 $ 17,626 $ 18,447 $ 17,708
======== ======== ======== ========
The Partnership's investments in Participating Insured Mortgage Loans are
carried at fair value as of April 30, 1999 and July 31, 1998. Investments in
Participating Insured Mortgage Loans, for which quoted market prices are not
available, are valued by an independent pricing service which determines the
valuations based on a comparison of recent market trades of securities with
similar characteristics. Because of the inherent uncertainty of valuations,
estimated values, as reflected herein, may differ from the values that would
have been used had a ready market for the securities existed. Descriptions of
the properties financed by the Partnership's loans and the loan agreements
themselves are summarized below:
Quarter Mill Apartments
-----------------------
The Partnership acquired a Participating Insured Mortgage Loan with
respect to a 266-unit apartment complex known as Quarter Mill Apartments located
in Richmond, Virginia (the "Virginia Project"). Construction of the Virginia
Project was completed in November of 1990. Initial closing of this Participating
Insured Mortgage loan took place on August 2, 1989. The project owner is Amurcon
Corporation. The Base Component of this Participating Insured Mortgage Loan is
coinsured by FHA and represented by GNMA Securities with an initial face value
of $7,316,600, which GNMA Securities bore interest at the rate of 10.25% during
construction of the Virginia Project and 8.50% thereafter. Effective May 1,
1991, the construction loan was converted to a permanent loan with a principal
balance of $6,525,000. On June 21, 1991 an additional $791,600 was funded,
completing the Partnership's investment of $7,316,600. Monthly payments of
principal and interest totalling approximately $53,553 are due through maturity,
on October 15, 2031. Scheduled principal repayments of $213,044 have been
received through April 30, 1999.
Emerald Cove Apartments
-----------------------
The Partnership acquired a Participating Insured Mortgage Loan with
respect to a 276-unit apartment complex known as Emerald Cove Apartments in
Charlotte, North Carolina (the "North Carolina Project"). Initial closing of
this Participating Insured Mortgage Loan took place on October 16, 1989. The
project owners are Ronald Curry and Ralph Abercia. The Base Component of this
Participating Insured Mortgage Loan is coinsured by FHA and represented by GNMA
Securities with an initial face value of $10,783,900 at closing, which GNMA
Securities bore interest at the rate of 10.25% during construction of the North
Carolina Project and 8.75% thereafter. During fiscal 1992, the Partnership
funded its remaining commitment on the investment of approximately $1,184,000
and, effective May 1, 1992, the investment was converted to a permanent loan
with a principal balance of $10,776,500. The Partnership paid a premium of
$107,840 to the GNMA issuer to obtain the original loan commitment due to the
fact that the permanent loan interest rate was higher than comparable market
rates at the time of the initial closing. Prior to fiscal 1998, the premium had
been amortized on the straight-line method over a 15-year amortization period.
Beginning in fiscal 1998, the amortization rate has been increased to reflect a
reduction in the expected remaining holding period of the investment. Monthly
payments of principal and interest totalling approximately $81,141 are due
through maturity, on August 15, 2031. Scheduled principal repayments of $285,223
have been received through April 30, 1999.
4. Related Party Transactions
---------------------------
Management fees earned by the General Partner and its affiliates for
services rendered in managing the business of the Partnership aggregated
$143,000 and $152,000 for the nine months ended April 30, 1999 and 1998,
respectively. Included in these two amounts is $24,000 and $25,000,
respectively, representing additional asset management fees paid to PWPI which
are based on the Partnership's cash distributions of operating income, as
discussed further in the Partnership's Annual Report. Accounts payable -
affiliates at both April 30, 1999 and July 31, 1998 consist of $27,000 of
management fees payable to the General Partner and its affiliates.
Included in general and administrative expenses for the nine months ended
April 30, 1999 and 1998 is $73,000 and $70,000, respectively, representing
reimbursements to an affiliate of the General Partner for providing certain
financial, accounting and investor communication services to the Partnership.
Also included in general and administrative expenses for both of the
nine-month periods ended April 30, 1999 and 1998 is $4,000, representing fees
earned by an affiliate, Mitchell Hutchins Institutional Investors, Inc., for
managing the Partnership's cash assets.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Information Relating to Forward-Looking Statements
- --------------------------------------------------
The following discussion of financial condition includes forward-looking
statements which reflect management's current views with respect to future
events and financial performance of the Partnership. These forward-looking
statements are subject to certain risks and uncertainties, including those
identified in Item 7 of the Partnership's Annual Report on Form 10-K for the
year ended July 31, 1998 under the heading "Certain Factors Affecting Future
Operating Results," which could cause actual results to differ materially from
historical results or those anticipated. The words "believe," "expect,"
"anticipate," and similar expressions identify forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which were made based on facts and conditions as they existed as of
the date of this report. The Partnership undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Liquidity and Capital Resources
- -------------------------------
The Partnership is currently analyzing potential disposition strategies
for its remaining investments. As part of these efforts, the Partnership is
evaluating the current economic benefits it would receive if the owners of the
Emerald Cove Apartments and the Quarter Mill Apartments were to prepay their
participating loans by the end of calendar year 1999. The continued strength of
the national real estate market for the sale or refinancing of multi-family
apartment properties has increased the likelihood of one or both of the
Partnership's participating loans being prepaid in the near term. In addition,
while the Partnership cannot require either of the owners to prepay their loans
for another two to three years, the Partnership could possibly sell one or both
of the participating loans and some or all of the non-participating
mortgage-backed securities pools in the near term. In this regard, a key
consideration is the strength of the buying markets for these types of
investments. Also, as part of any sale of its two participating mortgage loans,
the Partnership would expect to receive fair value for its entitlement to
participate in potential cash flow increases and capital appreciation from each
property as well as for its entitlement to receive prepayment penalties if
either of the participating loans were prepaid by the property owners. As
discussed further below, as of the present date the amounts of the prepayment
penalties which could be received on the two remaining participating loans range
from 4% to 2% of the outstanding loan balances depending on the date of the
prepayment. Although no assurances can be given, it is currently contemplated
that sales or prepayments of the Partnership's remaining investments could be
completed prior to the end of calendar year 1999. The disposition of all of the
Partnership's investments would be followed by a formal liquidation of the
Partnership.
The Partnership's non-participating MBS have coupon interest rates ranging
from 7.5% to 9.5%. Based on current market interest rate levels, the aggregate
market value of these securities at the present time is above both the aggregate
face value and amortized cost, which includes any unamortized discounts or
premiums. As of April 30, 1999, the Partnership's two remaining participating
loans, which carry coupon interest rates of 8.5% and 8.75%, had estimated market
values which were higher than their face values due to a variety of factors,
including the participation features. However, during the first quarter of
fiscal 1999 a reduction in the liquidity in the credit markets reduced the
premiums at which securities comparable to the Partnership's Participating
Insured Mortgage Loans were trading in the secondary market. Increases in market
interest rates and/or deterioration in general real estate market conditions in
the near term could cause the aggregate market value of the participating loans
and the portfolio of non-participating MBS investments to fall below face value
and/or amortized cost. In the event that such circumstances were to occur,
management is not prohibited from selling any security at a loss and may do so
if it is believed that such a sale would be in the best interests of the
Partnership.
As previously reported, generally low market interest rates have prompted
a high level of refinancing activity over the past several years, resulting in
significant prepayments on the Partnership's non-participating mortgage-backed
securities. Such prepayments had the effect of reducing the Partnership's
investment income and cash flows from operating activities and increasing the
outstanding balance of the Partnership's cash reserves. Regular quarterly
distributions are comprised of investment income and return of capital which
results from the scheduled amortization of mortgage principal on all of the debt
securities as well as principal prepayments from the non-participating GNMA
mortgage-backed securities. Such principal prepayments are unpredictable and, as
noted above, have been high during recent years but declined during fiscal 1997,
resulting in a reduction in cash flows from investing activities. Based on this
decline in the rate of principal prepayments and the expectation that this
decline would continue in the future, the Partnership had reduced the regular
quarterly distribution rate effective for the payment made on June 13, 1997 for
the third quarter of fiscal 1997. The distribution rate declined from 8.25% per
annum to 6.5%. During fiscal 1998, however, actual principal prepayment levels
were higher than projected resulting in an increase in cash flows from investing
activities. As a result, the Partnership made a special capital distribution of
excess cash totalling approximately $552,000, or $10.00 per original $1,000
investment, to the Limited Partners on March 13, 1998, concurrent with the
regular quarterly distribution for the period ended January 31, 1998. Principal
prepayments through the first half of fiscal 1999 again exceeded projections. As
a result, a special capital distribution totalling approximately $1,379,000, or
$25 per original $1,000 investment, was made on March 15, 1999 to unitholders of
record as of January 31, 1999, along with the regular quarterly distribution for
the second quarter of fiscal 1999.
The Partnership's two remaining Participating Insured Mortgage Loans are
secured by the Emerald Cove and Quarter Mill apartment complexes. The occupancy
level at Emerald Cove averaged 94% for the quarter ended April 30, 1999, down
from 96% for the second quarter of fiscal 1999. As discussed further in the
Annual Report, due to the increased competition from several newly developed
properties in the local Charlotte, North Carolina submarket, the use of rental
concessions had been necessary at Emerald Cove to maintain the property's
occupancy levels. However, because the property's occupancy level stabilized in
the mid-90% range, the property's leasing team had discontinued offering rental
concessions on both new and renewal leases during the second half of fiscal
1998. With the recent drop in occupancy for the third quarter of fiscal 1999,
the leasing team has re-introduced the use of concessions in an effort to
prevent any further declines. The property's rental rates and occupancy levels
still compare favorably to those of directly competitive properties in the local
market. Prepayment of the Partnership's Emerald Cove Participating Insured
Mortgage Loan was restricted through March 1998 and then requires a prepayment
penalty which declines ratably, from 5% to 2%, from April 1998 through April
2002. During the quarter ended April 30, 1998, the Emerald Cove owner informed
the Partnership that the property was being actively marketed for sale and asked
that the Partnership specify the terms upon which it would accept prepayment of
the participating loan. During the quarter ended July 31, 1998, the owner of the
Emerald Cove Apartments approached the Partnership regarding a prepayment of the
participating mortgage loan as part of a potential sale of the Emerald Cove
property. However, during the first quarter of fiscal 1999 the Partnership was
informed that the potential buyer and the owner were not able to agree on final
terms and that a sale would not occur. As previously reported, the owner of the
Emerald Cove Apartments has initiated discussions of prepayment on several
occasions over the past four years, but none of those discussions have resulted
in a prepayment transaction. As a result, as noted above, the Partnership is
presently reviewing other potential disposition options for its Participating
Insured Mortgage Loan investments.
The Quarter Mill Apartments continued its strong operating performance
during the third quarter of fiscal 1999 with an average occupancy level of 97%,
compared to 98% for the prior quarter. Because the Quarter Mill Apartments
participates in the Low Income Housing Tax Credit Program, its rental rates are
based on the metropolitan area's median family income, rather than on market
rent levels. Average rental rates on new leases being signed are up 3.75% from
one year ago. A strong local rental market, combined with below market rental
rates at Quarter Mill, has resulted in consistently high occupancy levels at the
property. Property operations continue to generate small amounts of excess cash
flow, a portion of which is payable to the Partnership as Contingent Interest.
During fiscal 1998, 1997 and 1996, the Partnership received approximately
$54,000, $49,000 and $46,000, respectively, representing its 30% share of the
surplus cash, as defined. The Quarter Mill Participating Insured Mortgage Loan
became open to prepayment in May 1996 with a specified prepayment penalty which
declines ratably, from 10% to 2%, from May 1996 through May 2001. During fiscal
1998, the Partnership and the owner of Quarter Mill engaged in very preliminary
discussions concerning a potential prepayment of the Participating Insured
Mortgage Loan. However, to date no proposals to prepay the loan have been
received from the owner of Quarter Mill.
At April 30, 1999, the Partnership had cash and cash equivalents of
approximately $1,185,000. Such amounts will be utilized for distributions to the
Unitholders, as discussed further above, and for the working capital
requirements of the Partnership. The source of future liquidity and
distributions to the Unitholders is expected to be primarily through interest
income and principal repayments from the Partnership's mortgage securities,
money-market interest income from invested cash reserves, and to a lesser extent
from Contingent Interest from Participating Insured Mortgage Loans and Net
Project Residuals from the sale or refinancing of the properties securing such
investments.
As noted above, the Partnership expects to be liquidated prior to the end
of calendar year 1999. Notwithstanding this, the Partnership believes that it
has made all necessary modifications to its existing systems to make them year
2000 compliant and does not expect that additional costs associated with year
2000 compliance, if any, will be material to the Partnership's results of
operations or financial position.
Results of Operations
Three Months Ended April 30, 1999
- ---------------------------------
The Partnership reported net income of $300,000 for the three months ended
April 30, 1999, as compared to net income of $343,000 for the same period in the
prior year. This decrease in net income for the third quarter of fiscal 1999
resulted from a decrease in total revenues of $31,000 and an increase in total
expenses of $12,000. The decrease in revenues was the result of a $35,000
decline in interest income from debt securities, which was partially offset by
an increase of $4,000 in money market interest income. The decrease in interest
income from debt securities resulted from a reduction in the average outstanding
principal balances of Participating Insured Mortgage Loans and non-participating
MBS due to scheduled principal amortization on all of the debt securities and
prepayments on the MBS. The increase in money market interest income resulted
from an increase in the average outstanding balance of the Partnership's
invested cash reserves compared to the same period in the prior year. The
increase in total expenses was the result of a $15,000 increase in general and
administrative expenses and a $3,000 reduction in management fee expense.
General and administrative expenses increased for the current three-month period
primarily due to additional professional fees incurred as part of management's
disposition strategy analysis. Management fee expense declined due to a decrease
in the outstanding balances of debt securities upon which such fees are based.
Nine Months Ended April 30, 1999
- --------------------------------
Net income for the nine months ended April 30, 1999 decreased by $64,000
when compared to the same period in the prior year due to a $79,000 decline in
total revenues, which was partially offset by a $15,000 decrease in total
expenses. The decrease in revenues can be attributed to a $95,000 decline in
interest income from debt securities, which was partially offset by a $16,000
increase in money market interest income. The decline in interest income from
debt securities resulted from a reduction in the average outstanding principal
balances of such investments due to scheduled principal amortization on all of
the debt securities and prepayments on the MBS. The increase in money market
interest income for the current nine-month period is attributable to an increase
in the average outstanding balance of the Partnership's invested cash reserves
compared to the same period in the prior year. The decline in total expenses is
attributable to a decrease in management fee expense of $9,000 and a reduction
in general and administrative expenses of $6,000. Management fee expense
declined due to a reduction in the outstanding balances of debt securities upon
which such fees are based. General and administrative expenses decreased for the
current nine-month period primarily due to a reduction in certain required
professional services.
PART II
Other Information
Item 1. through 5. NONE
- ------------------
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits: NONE
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed by the registrant during the quarter
for which this report is filed.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Partnership has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
PAINEWEBBER INSURED MORTGAGE PARTNERS 1-B, L.P.
By: FIRST INSURED MORTGAGE PARTNERS, INC.
------------------------------------
Managing General Partner
Date: June 8, 1999 By: /s/ Walter V. Arnold
--------------------
Walter V. Arnold
Senior Vice President and
Chief Financial Officer