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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q

(Mark one)



|  |                                                                                      
|- | -------------------------------------------------------------------------------------
|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2005.

OR



|  |                                                                                             
|- | --------------------------------------------------------------------------------------------
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

For the transition period from

to
 .

Commission file no. 0-16191

DEL TACO RESTAURANT PROPERTIES I

a California limited partnership


(Exact name of registrant as specified in its
charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|                                                                  
|                                                                  
|                                                                  
|                                                                  
|California                                                         |  | 95-3852699                                 
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification Number)
|                                                                  
|25521 Commercentre Drive, Lake Forest,
    California              |  | 92630                                      
|(Address of principal executive
    offices)                       |  | (Zip Code)                                 

(949) 462-9300

(Registrants telephone number, including
area code)


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 o

Indicate by check mark whether the registrant is an
accelerated filer (as defined in Rule 12b-2 of the Exchange
Act.)  Yes o  No x



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INDEX DEL TACO RESTAURANT PROPERTIES I  
 PART I. FINANCIAL INFORMATION
    
    PAGE NUMBERItem 1. Financial StatementsCondensed Balance Sheets at March 31, 2005 and
December 31, 2004 (Unaudited)
    
    3Condensed Statements of Income for the three months ended
March 31, 2005 and 2004 (Unaudited)
    
    4Condensed Statements of Cash Flows for the three months ended
March 31, 2005 and 2004 (Unaudited)
    
    5Notes to Condensed Financial Statements
    
    6Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    8Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    10Item 4. Controls and Procedures
    
    10PART II. OTHER INFORMATIONItem 6. Exhibits and Reports on Form 8-K
    
    11SIGNATURE
    
    12EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
  -2-




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DEL TACO RESTAURANT PROPERTIES I 
 CONDENSED BALANCE SHEETS (Unaudited) March 31,
    
    
    December 31,2005
    
    
    2004ASSETSCURRENT ASSETS:Cash
    
    $
    243,222
    
    
    $
    251,606Receivable from Del Taco, Inc.
    
    
    70,818
    
    
    
    64,831Deposits
    
    
    1,124
    
    
    
    1,299Total current assets
    
    
    315,164
    
    
    
    317,736PROPERTY AND EQUIPMENT:Land and improvements
    
    
    1,852,482
    
    
    
    1,852,482Buildings and improvements
    
    
    1,013,134
    
    
    
    1,013,134Machinery and equipment
    
    
    1,136,026
    
    
    
    1,136,0264,001,642
    
    
    
    4,001,642Lessaccumulated depreciation
    
    
    1,989,662
    
    
    
    1,978,7192,011,980
    
    
    
    2,022,923$
    2,327,144
    
    
    $
    2,340,659LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    63,876
    
    
    $
    64,634Accounts payable
    
    
    35,628
    
    
    
    10,481Total current liabilities
    
    
    99,504
    
    
    
    75,115PARTNERS EQUITY:Limited partners; 8,751 units outstanding at March 31, 2005 and December 31, 2004
    
    
    1,965,266
    
    
    
    2,002,791General partner-Del Taco, Inc.
    
    
    262,374
    
    
    
    262,7532,227,640
    
    
    
    2,265,544$
    2,327,144
    
    
    $
    2,340,659
 See accompanying notes to condensed financial statements. -3-




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DEL TACO RESTAURANT PROPERTIES I 
 CONDENSED STATEMENTS OF INCOME (Unaudited) Three Months EndedMarch 31,2005
    
    
    2004RENTAL REVENUES
    
    $
    191,065
    
    
    $
    188,747EXPENSES:General and administrative
    
    
    37,270
    
    
    
    35,258Depreciation
    
    
    10,943
    
    
    
    10,94348,213
    
    
    
    46,201Operating income
    
    
    142,852
    
    
    
    142,546OTHER INCOME:Interest
    
    
    792
    
    
    
    544Other
    
    
    425
    
    
    
    400Net income
    
    $
    144,069
    
    
    $
    143,490Net income per limited
partnership unit
    
    $
    16.30
    
    
    $
    16.23Number of units used in computing
per unit amounts
    
    
    8,751
    
    
    
    8,751
 See accompanying notes to condensed financial statements. -4-




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DEL TACO RESTAURANT PROPERTIES I 
 CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months EndedMarch 31,2005
    
    
    2004CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    144,069
    
    
    $
    143,490Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    10,943
    
    
    
    10,943Changes in operating assets and liabilities:(Increase) decrease in receivable from Del Taco, Inc.
    
    
    (5,987
    )
    
    
    573Decrease in deposits
    
    
    175
    
    
    
    104Increase in accounts payable and payable
to limited partners
    
    
    24,389
    
    
    
    39,081Net cash provided by operating activities
    
    
    173,589
    
    
    
    194,191CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (181,973
    )
    
    
    (179,295
    )Net increase (decrease) in cash
    
    
    (8,384
    )
    
    
    14,896Beginning cash balance
    
    
    251,606
    
    
    
    259,810Ending cash balance
    
    $
    243,222
    
    
    $
    274,706
 See accompanying notes to condensed financial statements. -5-




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DEL TACO RESTAURANT PROPERTIES I 
 NOTES TO CONDENSED FINANCIAL STATEMENTS MARCH 31, 2005 NOTE 1  BASIS OF PRESENTATION The accompanying unaudited condensed financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by accounting principles
generally accepted in the United States of America for complete financial statements and should
therefore be read in conjunction with the financial statements and notes thereto contained in the
annual report on Form 10-K for the year ended December 31, 2004 for Del Taco Restaurant Properties
I (the Partnership or the Company). In the opinion of management, all adjustments (consisting of
normal recurring accruals) necessary to present fairly the Partnerships financial position at
March 31, 2005, the results of operations and cash flows for the three month periods ended March
31, 2005 and 2004 have been included. Operating results for the three months ended March 31, 2005
are not necessarily indicative of the results that may be expected for the year ending December 31,
2005. NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT Net income per limited partnership unit is based upon the limited partners 99 percent share of net
income divided by the weighted average number of units outstanding during the periods presented,
which amounted to 8,751 in 2005 and 2004. Pursuant to the partnership agreement, annual partnership net income is allocated one percent to
Del Taco, Inc. (Del Taco or the General Partner) and 99 percent to the limited partners. A
partnership net loss in any year will be allocated 24 percent to the General Partner and 76 percent
to the limited partners until the losses so allocated equal income previously allocated. Any
additional losses will be allocated one percent to the General Partner and 99 percent to the
limited partners. Partnership gains from any sale or refinancing will be allocated one percent to
the General Partner and 99 percent to the limited partners until allocated gains and profits equal
losses. Additional gains will be allocated 24 percent to the General Partner and 76 percent to the
limited partners. -6-




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DEL TACO RESTAURANT PROPERTIES I NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED MARCH 31, 2005 NOTE 3  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 2019 to 2020. There is no minimum rental
under any of the leases. For the three months ended March 31, 2005, the five restaurants operated by Del Taco, for which the
Partnership is the lessor, had combined, unaudited sales of $1,310,445 and net income of $93,400 as
compared to $1,296,933 and $100,046, respectively, for the corresponding period in 2004. Net
income by restaurant includes charges for general and administrative expenses incurred in
connection with supervision of restaurant operations and interest expense. For the three months
ended March 31, 2005, the one restaurant operated by a Del Taco franchisee, for which the
Partnership is the lessor, had unaudited sales of $281,763 as compared with $275,961 during the
same period in 2004. NOTE 4  TRANSACTIONS WITH DEL TACO The receivable from Del Taco consists primarily of rent accrued for the month of March. The March
rent receivable was collected in April 2005. Del Taco serves in the capacity of general partner in other partnerships which are engaged in the
business of operating restaurants, and three other partnerships which were formed for the purpose
of acquiring real property in California for construction of Mexican-American restaurants for lease
under long-term agreements to Del Taco for operation under the Del Taco trade name. In addition, see Note 5 with respect to certain distributions to the General Partner. NOTE 5  DISTRIBUTIONS On April 20, 2005, a distribution to the limited partners of $172,602, or approximately $19.72 per
limited partnership unit, was approved. Such distribution was paid on April 29, 2005. The General
Partner also received a distribution of $1,743 with respect to its 1% partnership interest. Total
cash distributions paid in January 2005 were $181,973. -7-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Del Taco Restaurant Properties I (the Partnership or the Company) offered limited partnership units
for sale between March 1983 and March 1984. 15% of the $4.375 million raised through sale of
limited partnership units was used to pay commissions to brokers and to reimburse Del Taco, Inc.
(the General Partner or Del Taco) for offering costs incurred. Approximately $4 million of the
remaining funds were used to acquire sites and build six restaurants. The six restaurants leased to Del Taco make up all of the income producing assets of the
Partnership. Therefore, the business of the Partnership is entirely dependent on the success of
the Del Taco trade name restaurants that lease the properties. The success of the restaurants is
dependent on a large variety of factors, including, but not limited to, competition, consumer
demand and preference for fast food, in general, and for Mexican-American food in particular. The increase in accounts payable from December 31, 2004 is a seasonal increase due to the timing of
certain accounting, audit and tax services. Results of Operations The Partnership owns six properties that are under long-term lease to Del Taco for restaurant
operations (Del Taco, in turn, has subleased one of the restaurants to a Del Taco franchisee). The following table sets forth rental revenue earned by restaurant: Three Months EndedMarch 31,2005
    
    
    2004Riverside Avenue, Rialto, CA
    
    $
    28,497
    
    
    $
    29,306Elden Avenue, Moreno Valley, CA
    
    
    33,827
    
    
    
    32,573Foothill Boulevard, La Verne, CA
    
    
    40,889
    
    
    
    40,002Baseline & Archibald, Rancho Cucamonga, CA
    
    
    33,811
    
    
    
    33,115Elkhorn Boulevard, Sacramento, CA
    
    
    17,361
    
    
    
    19,491Haven Avenue, Rancho Cucamonga, CA
    
    
    36,680
    
    
    
    34,260Total
    
    $
    191,065
    
    
    $
    188,747
 The Partnership receives rental revenues equal to 12 percent of gross sales from the
restaurants. The Partnership earned rental revenue of $191,065 during the three month period ended
March 31, 2005, which represents an increase of $2,318 from 2004. The change in rental revenues
between 2004 and 2005 is directly attributable to increases in sales at the restaurants under
lease. -8-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations -
continued The following table breaks down general and administrative expenses by type of expense: Percentage of TotalGeneral & Administrative ExpenseThree Months EndedMarch 31,2005
    
    
    2004Accounting fees
    
    
    72.95
    %
    
    
    76.65
    %Distribution of information
to limited partners
    
    
    27.05
    
    
    
    23.35100.00
    %
    
    
    100.00
    %
 General and administrative costs increased from 2004 to 2005 primarily due to increased costs for
software licensing fees which slightly increased the percentage of general and administrative
expense related to distribution of information to limited partners as shown in the table above. Net income increased by $579 from 2004 to 2005 due to the increases in revenues of $2,318 and
interest and other income of $273 partially offset by the $2,012 increase in general and
administrative expenses. Critical Accounting Policies and Estimates Managements discussion and analysis of financial condition and results of operations, as well as
disclosures included elsewhere in this report on Form 10-Q are based upon the Partnerships
financial statements, which have been prepared in accordance with accounting principles generally
accepted in the United States of America. The preparation of these financial statements requires
management to make estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses. The Partnership believes the critical accounting policies that most impact
the financial statements are described below. A summary of the significant accounting policies of
the Partnership can be found in Note 1 to the Financial Statements which is included in the
Partnerships December 31, 2004 Form 10-K. Property and Equipment: Property and equipment is stated at cost. Depreciation is
computed using the straight-line method over estimated useful lives which are 20 years for land
improvements, 35 years for buildings and improvements, and 10 years for machinery and equipment. The Partnership accounts for property and equipment in accordance with Statement of Financial
Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long Lived
Assets. SFAS 144 requires that long-lived assets be reviewed for impairment whenever events or
changes in circumstances indicate that the carrying value of the asset may not be recoverable. In
evaluating long-lived assets held for use, an impairment loss is recognized if the sum of the
expected future cash flows (undiscounted and without interest charges) is less than the carrying
value of the asset. -9-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations -
continued Once a determination has been made that an impairment loss should be recognized for long-lived
assets, various assumptions and estimates are used to determine fair value including, among others,
estimated costs of construction and development, recent sales of comparable properties and the
opinions of fair value prepared by independent real estate appraisers. Long-lived assets to be
disposed of are reported at the lower of carrying amount or fair value less cost to sell. 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk. None. 
 Item 4. Controls and Procedures  (a)
    Evaluation of disclosure controls and procedures: As of the end of the period covered by this quarterly report, we carried out an
evaluation, under the supervision and with the participation of the Companys management,
including the Companys Chief Executive Officer and Chief Financial Officer, of the
effectiveness of the design and operation of the Companys disclosure controls and
procedures. Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that the Companys disclosure controls and procedures are
effective in timely alerting them to material information relating to the Company
required to be included in the Companys periodic Securities and Exchange Commission
filings.  (b)
    Changes in internal controls: There were no significant changes in the Companys internal controls over financial
reporting that occurred during our most recent fiscal quarter that materially affected,
or is reasonably likely to materially affect, our internal control over financial
reporting.  (c)
    Asset-Backed issuers: Not applicable. -10-




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PART II. OTHER INFORMATION 
 Item 6. Exhibits and Reports on Form 8-K  (a)
    Exhibits  31.1
    Kevin K. Moriartys Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    Robert J. Terranos Certification Pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002  (b)
    Reports None. -11-




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SIGNATURE 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. DEL TACO RESTAURANT PROPERTIES I(a California limited partnership)RegistrantDel Taco, Inc.
General PartnerDate: May 13, 2005
    
    /s/ Robert J. TerranoRobert J. TerranoExecutive Vice President,Chief Financial Officer
 -12-




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EXHIBIT INDEX Exhibits
    

Description31.1
    
    Kevin K. Moriartys Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    Robert J. Terranos Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1
    
    Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 -13-