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 June 30, 1996 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)
(561) 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
June 30, 1996
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statements of Financial Condition, as of June 30, 1996
(Unaudited) and December 31, 1995 . . . . . . . . . . . . . 3
Statements of Operations, for the three and six month
periods ended June 30, 1996 and 1995 (Unaudited). . . . . . 4
Statements of Cash Flows, for the three months ended
June 30, 1996 and 1995 (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)
June 30, December 31,
1996 1995
(Unaudited)
ASSETS
Investment in real estate
Land $ 320,419 $ 144,581
Land improvements 51,425 51,425
Buildings and improvements 3,969,605 3,469,704
4,341,449 3,665,710
Less accumulated depreciation 2,415,015 2,264,798
Net investment in real estate 1,926,434 1,400,912
Purchase money mortgage note receivable - 1,450,000
Allowance for loss on note receivable - (525,000)
Deferred gain on sales of real estate - (518,800)
- 406,200
Other assets
Cash 70,237 24,175
Investments, at cost which
approximates market 2,811,566 4,359,300
Accounts receivable 29,702 16,369
Deferred interest receivable - 174,488
Prepaid insurance 7,044 26,720
Replacement reserve 105,596 112,450
Escrow deposits and other assets 162,028 107,140
Deferred charges net of accumulated
amortization of $27,962 and $21,970,
respectively 295,236 285,023
Total other assets 3,481,409 5,105,665
Total assets $ 5,407,843 $ 6,912,777
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 1,466,857 $ 1,472,561
Accounts payable 10,407 10,510
Accrued liabilities to affiliates 4,433 16,691
Accrued liabilities 142,998 158,276
Tenants' security deposits and other
liabilities 34,724 31,776
Total liabilities 1,659,419 1,689,814
Partners' capital
Limited Partners, 40,004 units 3,733,029 5,207,568
General Partner, 34 units 15,395 15,395
Total Partner's capital 3,748,424 5,222,963
Total liabilities and $ 5,407,843 $ 6,912,777
Partners' capital
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues
Interest on wrap-around
mortgage notes receivable $ - $ 38,001 $ - $ 76,002
Rents and other tenant charges 353,228 209,072 572,796 414,779
Other income 52,652 47,879 101,273 94,776
405,880 294,952 674,069 585,557
Expenses
Maintenance, custodial salaries
and related expense 21,764 18,237 42,988 37,354
Real estate management fees 17,927 11,743 30,437 23,702
Mortgage servicing fees 529 453 1,429 2,706
Property taxes 19,230 17,256 38,460 34,512
Depreciation and amortization 78,112 76,516 156,208 153,964
Insurance 7,875 9,096 15,750 18,192
Utilities 37,037 31,119 69,949 64,767
Repair and maintenance 34,520 42,325 63,734 79,145
Legal and accounting 6,840 48,091 12,329 102,657
Interest 32,497 34,582 67,358 66,755
Administrative and other 41,391 41,113 69,808 70,823
297,722 330,531 568,450 654,577
Income (loss) from existing
assets 108,158 (35,579) 105,619 (69,020)
Income from disposed property - 38,743 - 77,297
Net income $ 108,158 $ 3,164 $ 105,619 $ 8,277
Allocated to
Limited partners, 40,004 units $ 108,158 $ 3,164 $ 105,619 $ 8,277
General partners, 34 units - - - -
$ 108,158 $ 3,164 $ 105,619 $ 8,277
Net income per limited
partnership unit based
on 40,004 average units
outstanding $ 2.70 $ .08 $ 2.64 $ .21
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
1996 1995
Operating Activities
Net income $ 105,619 $ 8,277
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Amortization of discount on mortgage notes
receivable - (45,522)
Depreciation 150,217 147,972
(Increase) in accounts receivable (18,770) (1,595)
Decrease in prepaid expenses 19,676 21,896
Decrease (increase) in replacement reserve 6,854 (19,468)
(Increase) decrease in escrow deposits (54,888) 38,011
(Increase) decrease in deferred charges (10,213) 11,087
(Increase) decrease in accounts payable (103) 4,368
Increase (decrease) in accrued liabilities 43,367 (40,853)
Increase (decrease) in accrued liabilities
to affiliates (12,258) (357,343)
Decrease in unfunded distributions payable - (540,304)
Increase in security deposits 2,948 3,375
Net cash provided by (used in)
operating activities 232,449 (770,099)
Investing Activities
Capital improvements to real estate (148,259) (53,320)
Net cash used in investing activities (148,259) (53,320)
Financing Activities
Distributions to Partners (1,580,158) -
Principal payments on mortgage note payable (5,704) (27,526)
Net cash used in financing activities (1,585,862) (27,526)
Decrease in cash and cash equivalents (1,501,672) (850,945)
Cash and cash equivalents - January 1 4,383,475 3,646,756
Cash and cash equivalents - June 30 $ 2,881,803 $ 2,795,811
Non-Cash Activities
Foreclosure on Eastern Gateway Shopping Center:
Decrease in wrap-around mortgage
note receivable $(1,450,000) -
Decrease in deferred gain on sale 518,800 -
Decrease in allowance for loss
on note receivable 525,000 -
Decrease in deferred interest receivable (174,488) -
Decrease in interest receivable (5,437) -
Decrease in accrued real estate taxes payable 58,645 -
Foreclosed property 527,480 -
<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, 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 in the 1995 financial statements to
conform to the presentation of 1996 results of operations.
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
June 30, 1996
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) and one shopping center
(Eastern Gateway Shopping Center, located in Richmond Indiana) owned by the
Partnership.
Following dismissal of the bankruptcy case regarding Eastern Gateway Shopping
Center, the Partnership re-opened its case in the Wayne County Superior Court in
Richmond, Indiana to foreclose on the property and a receiver was appointed
to operate the property. On May 8, 1996, the Partnership took possession of
the property as a result of foreclosure proceedings.
The Partnership's total revenues increased $110,928 or 38% for the three months,
and $88,512 or 15% for the six months ended June 30, 1996 as compared with the
same periods of the prior year. Rents and other tenant charges increased
$144,156 or 69%, and $158,017 or 38% for the three and six month periods,
respectively, due primarily to rents received from Eastern Gateway Shopping
Center since the foreclosure.
Total expenses of the Partnership decreased $32,809 or 10% for the quarter, and
$86,127 or 13% for the six months ended June 30, 1996 as compared to the same
periods of the prior year. The decrease in expenses was primarily attributable
to a reduction of legal and accounting costs which decreased $41,251 or 86%,
and $90,328 or 88% for the three and six month periods, respectively, due
primarily to legal costs associated with the Eastern Gateway Shopping Center
bankruptcy/foreclosure.
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 the continued performance of the Partnership's rental properties. A decline
in the performance of the Partnership's rental properties could have a negative
effect upon the long-term liquidity of the Partnership.
Funds generated from operations have primarily been utilized to meet debt
service obligations and, when possible, to distribute funds to the partners.
Funds in excess of Partnership reserves resulted in distributions totaling
$1,580,158 or $39.50 per unit being paid during the six months ended
June 30, 1996.
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
June 30, 1996
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(b) No report on Form 8-K has been filed during the quarter ended
June 30, 1996.
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
Date: August 13, 1996 RICHARD L. DAVIS
Richard L. Davis
President -
Chief Executive Officer
Date: August 13, 1996 JOHN J. KAMMERER
John J. Kammerer
Principal Accounting Officer
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