##### Table of Contents









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 June 30, 2006.


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 þ No o


Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated
filer. See definition of accelerated filer and large
accelerated filer in
Rule 12b-2 of the
Exchange Act (check one):


Large accelerated
filer o Accelerated
filer o Non-accelerated
filer þ


Indicate by check mark whether the registrant is a shell
company (as defined in
Rule 12b-2 of the
Exchange
Act).  Yes o No þ










---



##### 



DEL TACO RESTAURANT PROPERTIES I
 PAGE NUMBERPART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Balance Sheets at June 30, 2006 (Unaudited) and
December 31, 2005
    
    3Condensed Statements of Income for the three and six months ended
June 30, 2006 and 2005 (Unaudited)
    
    4Condensed Statements of Cash Flows for the six months ended
June 30, 2006 and 2005 (Unaudited)
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    6Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    9Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    11Item 4. Controls and Procedures
    
    11PART II. OTHER INFORMATIONItem 6. Exhibits and Reports
    
    12SIGNATURE
    
    13EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
  -2-




---



##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 ITEM I. FINANCIAL STATEMENTS
 DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED BALANCE SHEETS
 June 30,
    
    
    December 31,2006
    
    
    2005(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    240,432
    
    
    $
    268,272Receivable from Del Taco LLC
    
    
    60,776
    
    
    
    65,191Deposits
    
    
    1,418
    
    
    
    600Total current assets
    
    
    302,626
    
    
    
    334,063PROPERTY 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
    
    
    2,033,613
    
    
    
    2,019,1391,968,029
    
    
    
    1,982,503$
    2,270,655
    
    
    $
    2,316,566LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    76,617
    
    
    $
    81,974Accounts payable
    
    
    7,959
    
    
    
    4,525Total current liabilities
    
    
    84,576
    
    
    
    86,499PARTNERS EQUITY:Limited partners; 8,751 units outstanding at June 30, 2006
and December 31, 2005
    
    
    1,924,121
    
    
    
    1,967,669General partner-Del Taco LLC
    
    
    261,958
    
    
    
    262,3982,186,079
    
    
    
    2,230,067$
    2,270,655
    
    
    $
    2,316,566
  -3-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005RENTAL REVENUES
    
    $
    181,478
    
    
    $
    201,377
    
    
    $
    362,640
    
    
    $
    392,442EXPENSES:General and administrative
    
    
    11,349
    
    
    
    11,009
    
    
    
    51,038
    
    
    
    48,279Depreciation
    
    
    7,237
    
    
    
    10,943
    
    
    
    14,474
    
    
    
    21,88618,586
    
    
    
    21,952
    
    
    
    65,512
    
    
    
    70,165Operating income
    
    
    162,892
    
    
    
    179,425
    
    
    
    297,128
    
    
    
    322,277OTHER INCOME:Interest
    
    
    1,102
    
    
    
    887
    
    
    
    2,097
    
    
    
    1,679Other
    
    
    125
    
    
    
    275
    
    
    
    350
    
    
    
    700Net income
    
    $
    164,119
    
    
    $
    180,587
    
    
    $
    299,575
    
    
    $
    324,656Net income per limited
partnership unit (Note 2)
    
    $
    18.57
    
    
    $
    20.43
    
    
    $
    33.89
    
    
    $
    36.73Number of units used in computing
per unit amounts
    
    
    8,751
    
    
    
    8,751
    
    
    
    8,751
    
    
    
    8,751
  -4-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Six Months EndedJune 30,2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    299,575
    
    
    $
    324,656Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    14,474
    
    
    
    21,886Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    4,415
    
    
    
    (458
    )Deposits
    
    
    (818
    )
    
    
    350Payable to limited partners
    
    
    (5,357
    )
    
    
    4,191Accounts payable
    
    
    3,434
    
    
    
    (2,308
    )Net cash provided by operating activities
    
    
    315,723
    
    
    
    348,317CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (343,563
    )
    
    
    (356,318
    )Net decrease in cash
    
    
    (27,840
    )
    
    
    (8,001
    )Beginning cash balance
    
    
    268,272
    
    
    
    251,606Ending cash balance
    
    $
    240,432
    
    
    $
    243,605
  -5-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES I
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006
 UNAUDITED
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT
   NOTE 3  LEASING ACTIVITIES
  -6-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES I
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006
 UNAUDITED
 NOTE 3  LEASING ACTIVITIES  continued
   NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  -7-




---



##### Table of Contents



DEL TACO RESTAURANT PROPERTIES I
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006
 UNAUDITED
 NOTE 6  PAYABLE TO LIMITED PARTNERS
  NOTE 7  ACQUISITION OF GENERAL PARTNER
  -8-




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources
   Results of Operations
   Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Riverside Avenue, Rialto, CA
    
    $
    28,458
    
    
    $
    30,244
    
    
    $
    56,564
    
    
    $
    58,741Elden Avenue, Moreno Valley, CA
    
    
    31,056
    
    
    
    37,170
    
    
    
    64,397
    
    
    
    70,997Foothill Boulevard, La Verne, CA
    
    
    43,357
    
    
    
    44,646
    
    
    
    86,094
    
    
    
    85,535Baseline & Archibald, Rancho Cucamonga, CA
    
    
    31,472
    
    
    
    34,260
    
    
    
    60,168
    
    
    
    68,071Elkhorn Boulevard, Sacramento, CA
    
    
    17,985
    
    
    
    17,390
    
    
    
    36,001
    
    
    
    34,752Haven Avenue, Rancho Cucamonga, CA
    
    
    29,150
    
    
    
    37,667
    
    
    
    59,416
    
    
    
    74,346Total
    
    $
    181,478
    
    
    $
    201,377
    
    
    $
    362,640
    
    
    $
    392,442
  -9-




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 continued
  Percent of TotalGeneral & Administrative ExpenseThree Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2006
    
    
    2005
    
    
    2006
    
    
    2005Accounting fees
    
    
    49.26
    %
    
    
    48.59
    %
    
    
    68.60
    %
    
    
    66.10
    %Distribution of information
to limited partners
    
    
    50.74
    %
    
    
    51.41
    %
    
    
    31.40
    %
    
    
    33.90
    %100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Significant Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  Critical Accounting Policies and Estimates
  -10-




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations  continued
 Property and Equipment:
   
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  
 Item 4. Controls and Procedures
       -11-




---



##### Table of Contents



PART II. OTHER INFORMATION
  
  (a)
    
    Exhibits
 31.1
    
    Ronald Powells Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
 (b)
    
    ReportsNone.
 -12-




---



##### Table of Contents



SIGNATURE
  DEL TACO RESTAURANT PROPERTIES I(a California limited partnership)RegistrantDel Taco LLCGeneral PartnerDate: August 11, 2006
    
    /s/ Steven L. BrakeSteven L. BrakeTreasurer
 -13-




---



##### Table of Contents



Exhibit Index
 Exhibits
    
    Description31.1
    
    Ronald Powells Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002