SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Quarterly period ended September 30, 1995 or
Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from to
Commission file number 0-6701
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(Exact name of registrant as specified in its charter)
Michigan 38-6239993
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6100 Glades Road, Suite 205
Boca Raton, Florida 33434
(Address of principal executive offices) (Zip Code)
(407) 487-6700
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
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 report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
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MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
COMMISSION FILE NUMBER 0-6701
FORM 10-Q
September 30, 1995
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Financial Condition, as of September 30, 1995
and December 31, 1994 (Unaudited)...............................3
Statements of Operations, for the three months and the nine months
ended September 30, 1995 and 1994 (Unaudited)...................4
Statements of Cash Flows, for the nine months ended
September 30, 1995 and 1994 (Unaudited).........................5
Notes to Financial Statements (Unaudited)............................6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.............................7
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K.....................................8
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
September 30, December 31,
1995 1994
ASSETS (Unaudited)
Investment in real estate
Land $ 144,581 $ 144,581
Land improvements 51,425 51,425
Buildings and improvements 3,459,168 3,391,354
3,655,174 3,587,360
Less accumulated depreciation 2,190,170 1,968,393
Net investment in real estate 1,465,004 1,618,967
Wrap-around mortgage notes receivable 5,043,750 5,043,750
Purchase money mortgage note receivable 1,450,000 1,450,000
Less unamortized discount - (60,696)
Allowance for loss on note receivable (525,000) (525,000)
Deferred gain on sales of real estate (2,983,868) (2,983,868)
2,984,882 2,924,186
Other assets
Cash 2,074 27,031
Investments, at cost which
approximates market 2,945,739 3,619,725
Accounts receivable 37,300 37,976
Deferred interest receivable 174,488 174,488
Prepaid insurance 1,186 30,051
Replacement reserve 95,948 105,114
Escrow deposits and other assets 111,629 115,770
Deferred charges net of accumulated
amortization of $106,436 and $89,806,
respectively 134,672 151,303
Total other assets 3,503,036 4,261,458
Total assets $ 7,952,922 $ 8,804,611
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 3,936,583 $ 3,974,353
Accounts payable 16,391 31,249
Accrued liabilities to affiliates 114,343 471,421
Unfunded distributions payable - 540,304
Accrued liabilities 158,282 152,401
Tenants' security deposits and other
liabilities 32,251 26,826
Total liabilities 4,257,850 5,196,554
Partners' capital
Limited Partners, 40,004 units 3,679,677 3,592,662
General Partner, 34 units 15,395 15,395
Total Partners' capital 3,695,072 3,608,057
Total liabilities and
Partners' capital $ 7,952,922 $ 8,804,611
3
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Revenues
Interest on wrap-around
mortgage notes receivable $ 143,675 $ 125,928 $ 446,198 $ 428,451
Rents and other tenant
charges 214,139 208,316 628,918 621,580
Other income 52,952 62,673 147,729 111,274
410,766 396,917 1,222,845 1,161,305
Expenses
Maintenance, custodial
salaries and related expenses 17,211 19,391 54,565 55,952
Real estate management fee 12,415 12,055 36,117 35,826
Mortgage servicing fee 2,929 2,929 10,048 9,687
Property taxes 17,256 17,256 51,768 51,768
Depreciation and amortization 79,349 78,265 238,408 222,372
Insurance 9,096 7,810 27,288 23,410
Utilities 27,960 26,320 92,727 87,606
Repairs and maintenance 36,805 33,251 115,948 101,190
Legal and accounting 14,109 22,923 116,766 41,011
Interest 80,736 98,669 286,540 290,000
Administrative and other 34,162 27,160 105,655 96,673
332,028 346,029 1,135,830 1,015,495
Income from existing assets 78,738 50,888 87,015 145,810
Operations of disposed property - (220,347) - (34,013)
Net income (loss) $ 78,738 $ (169,459) $ 87,015 $ 111,797
Allocated to
Limited partners, 40,004 units $ 78,738 $ (169,459) $ 87,015 $ 111,797
General partners, 34 units - - - -
$ 78,738 $ (169,459) $ 87,015 $ 111,797
Net income (loss) per limited
partnership unit based
on 40,004 average units
outstanding $ 1.97 $ (4.24) $ 2.18 $ 2.80
4
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months
Ended September 30,
1995 1994
Operating Activities
Net income $ 87,015 $ 111,797
Adjustments to reconcile net income to
net cash provided by operating activities:
Decrease in deferred interest income - 593,775
Amortization of discount on mortgage notes
receivable (60,696) (68,283)
Depreciation 221,777 207,739
Decrease in accounts receivable 676 283
Decrease in prepaid expenses 28,865 15,017
Decrease (increase) in replacement reserve 9,166 (79,280)
Decrease (increase) in escrow deposits 4,141 (81,983)
Decrease (increase) in deferred charges 16,631 (64,415)
(Decrease) increase in accounts payable (14,858) 2,885
Increase (decrease) in accrued liabilities 5,881 (15,615)
Decrease in accrued liabilities to affiliates (357,078) -
Decrease in unfunded distributions payable (540,304) -
Increase (decrease) in security deposits 5,425 (7,245)
Net cash (used in) provided by operating
activities (593,359) 614,675
Investing Activities
Capital improvements to real estate (67,814) (103,406)
Net cash used in investing activities (67,814) (103,406)
Financing Activities
Repayment of Dover Country Club note receivable - 3,900,000
Funds received on Hidden Village refinancing - 1,494,000
Payoff of Hidden Village mortgage note payable - (835,008)
Principal payments on mortgage notes payable (37,770) (579,231)
Net cash (used in) provided by
financing activities (37,770) 3,979,761
(Decrease) increase in cash and cash equivalents (698,943) 4,491,030
Cash and cash equivalents - January 1 3,646,756 1,666,688
Cash and cash equivalents - September 30 $ 2,947,813 $ 6,157,718
5
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The financial statements reflect all adjustments which are normal and recurring
in nature and, in the opinion of management, necessary to a fair statement of
the results of the interim periods presented. It is suggested that these
financial statements be read in conjunction with the financial statements and
the notes included in the Partnership's latest annual report on Form 10-K. The
results of operations for interim periods should not be considered as indicative
of the results to be expected for a full year.
Reclassifications
Certain reclassifications have been made to the 1994 financial statements to
conform to the presentation of the 1995 results of operations.
Subsequent Events
On October 6, 1995, the Partnership received $1,579,063 in repayment of the
French Quarter Apartments mortgage note receivable. The amount represents the
difference between (a) the remaining principal balance of the wrap-around
mortgage note receivable plus all accrued and deferred interest and a
prepayment fee of $20,684 ($4,088,732); and (b) the principal balance of the
underlying mortgage note payable, accrued interest, and prepayment penalty on
the underlying mortgage notes payable with respect to this property
($2,509,669).
On November 2, 1995, the United States Bankruptcy Court, Southern District of
Indiana, Indianapolis Division, dismissed the bankruptcy case filed by Eastern
Gateway Limited Partnership, the owner of Eastern Gateway Shopping Center
(Richmond, Indiana). The case was dismissed when Eastern Gateway Limited
Partnership was unable to finalize a court-approved sale of the property.
Following the dismissal of the bankruptcy case, the Partnership will seek to
foreclose on, and regain title to, the property through the Wayne County
Superior Court in Richmond, Indiana.
6
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
September 30, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The current operations of the Partnership are centered on one apartment complex
(Hidden Village Apartments, located in Irving, Texas) owned by the Partnership,
collections on mortgage notes received upon sale of certain Partnership
properties and protection of the Partnership's mortgage interest in such
properties.
The Partnership's total revenues increased $13,849 or 3% for the three months,
and $61,540 or 5% for the nine months ended September 30, 1995 as compared with
the same periods of the prior year. Interest on wrap-around mortgage notes
receivable increased $17,747 for both the three and nine month periods, or 14%
for the quarter and 4% for the nine month period. The increase is due primarily
to receipt of payments due from Eastern Gateway Shopping Center during the
third quarter of 1995. Other income decreased $9,721 or 16%, and increased
$36,455 or 33%, for the three and nine month periods ended September 30, 1995,
respectively. A mortgage note receivable payoff early in the third quarter of
1994 resulted in an increase in interest on investments for that quarter, while
interest earnings for the year 1995 have increased due primarily to higher
invested balances as well as slightly higher interest rates.
Total expenses of the Partnership decreased $14,001 or 4% for the quarter ended
September 30, 1995. There was a $120,335 or 12% increase in expenses for the
nine months ended September 30, 1995 as compared to the same period of the prior
year. Repair and maintenance costs increased $3,554 or 11% for the quarter, and
$14,758 or 15% for the nine month period ended September 30, 1995, in an effort
to maintain and enhance the physical condition of Hidden Village Apartments.
Legal and accounting costs decreased $8,814 or 38%, and increased $75,755 or
185% for the three and nine month periods, respectively, due primarily to legal
costs associated with the Eastern Gateway Shopping Center bankruptcy.
The liquidity of the Partnership is dependent upon the timely receipt of cash.
The Partnership has no credit facilities currently in place. Limited partners
have no obligation to provide additional funds in excess of their initial cash
contributions. In order to protect the Partnership in the event of a reduction
in cash flow, management closely monitors the Partnership's cash position and,
when necessary, will reserve adequate funds to continue to operate the
Partnership. Funds reserved are generally invested in short-term investments.
The Partnership endeavors to maintain adequate liquidity on a short-term basis
through its cash flow and reserve policies. However, there can be no assurance
of continued collections on the existing mortgage notes or the continued
performance of the Partnership's rental property. Collection problems on the
existing notes, or a decline in the performance of the Partnership's rental
property could have a negative effect upon the long-term liquidity of the
Partnership.
Funds generated from operations and mortgage notes receivable on sold properties
have primarily been utilized to meet debt service obligations and, when
possible, to distribute funds to the partners. There was no distribution of
funds for the period ended September 30, 1995.
7
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
September 30, 1995
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits:
(i) Exhibit 27 - Financial Data Schedule
(b) No report on Form 8-K has been filed during the quarter ended
September 30, 1995.
SIGNATURES
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.
MULTIVEST REAL ESTATE FUND, LTD.
Series IV, a Michigan Limited
Partnership
(Registrant)
By: MULTIVEST REAL ESTATE, INC.,
a Delaware corporation
Its: Corporate General Partner
RICHARD L. DAVIS
Date: November 13, 1995
Richard L. Davis
President -
Chief Executive Officer
JOHN J. KAMMERER
Date: November 13, 1995
John J. Kammerer
Principal Accounting Officer
8
<PAGE>
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