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, 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
September 30, 1996
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statements of Financial Condition, as of September 30, 1996
(Unaudited) and December 31, 1995 . . . . . . . . . . . . . 3
Statements of Operations, for the three month and nine month
periods ended September 30, 1996 and 1995 (Unaudited) . . . 4
Statements of Cash Flows, for the three months ended
September 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)
September 30, December 31,
1996 1995
(Unaudited)
ASSETS
Investment in real estate
Land $ - $ 144,581
Land improvements - 51,425
Buildings and improvements - 3,469,704
- 3,665,710
Less accumulated depreciation - 2,264,798
Net investment in real estate - 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 271,127 24,175
Investments, at cost which
approximates market 5,363,122 4,359,300
Accounts receivable 577,091 16,369
Deferred interest receivable - 174,488
Prepaid insurance 119 26,720
Replacement reserve - 112,450
Escrow deposits and other assets 10,600 107,140
Deferred charges net of accumulated
amortization of $ - and $21,970,
respectively - 285,023
Total other assets 6,222,059 5,105,665
Total assets $ 6,222,059 $ 6,912,777
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ - $ 1,472,561
Accounts payable 30,512 10,510
Accrued liabilities to affiliates 496,204 16,691
Accrued liabilities 454 158,276
Tenants' security deposits and other
liabilities - 31,776
Total liabilities 527,170 1,689,814
Partners' capital
Limited Partners, 40,004 units 5,679,494 5,207,568
General Partner, 34 units 15,395 15,395
Total Partner's capital 5,694,889 5,222,963
Total liabilities and $ 6,222,059 $ 6,912,777
Partners' capital
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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,
1996 1995 1996 1995
Revenues
Interest on wrap-around
mortgage notes receivable $ - $ 38,001 $ - $ 114,002
Rents and other tenant charges 344,807 214,139 917,603 628,918
Other income 49,469 52,952 150,743 147,729
394,276 305,092 1,068,346 890,649
Expenses
Maintenance, custodial salaries
and related expense 29,529 17,211 72,517 54,565
Real estate management fees 21,418 12,415 51,855 36,117
Investment management fee 176,922 - 176,922 -
Mortgage servicing fees - 1,353 1,429 3,520
Property taxes 66,633 17,256 105,093 51,768
Depreciation and amortization 184,873 76,802 341,081 230,766
Insurance 10,441 9,096 26,191 27,288
Utilities 15,855 27,960 85,806 92,727
Repair and maintenance 43,564 36,805 107,298 115,948
Legal and accounting 1,533 14,109 13,862 116,766
Interest 33,415 34,675 100,773 101,431
Administrative and other 51,440 33,317 121,247 104,681
635,623 280,999 1,204,074 935,577
Income (loss) from existing assets (241,347) 24,093 (135,728) (44,928)
Operations of disposed property - 54,645 - 131,943
Income (loss) from operations (241,347) 78,738 (135,728) 87,015
Gain on sale of property 2,187,812 - 2,187,812 -
Net income $ 1,946,465 78,738 $ 2,052,084 $ 87,015
Allocated to
Limited partners, 40,004 units $ 1,946,465 $ 78,738 $ 2,052,084 $ 87,015
General partners, 34 units - - - -
$ 1,946,465 $ 78,738 $ 2,052,084 $ 87,015
Net income per limited
partnership unit based
on 40,004 average
units outstanding $ 48.66 $ 1.97 $ 51.30 $ 2.18
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
1996 1995
Operating Activities
Net income $ 2,052,084 $ 87,015
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Amortization of discount on mortgage
notes receivable - (60,696)
Depreciation 223,842 221,777
Gain on sale (2,187,812) -
(Increase) decrease in accounts receivable (566,159) 676
Decrease in prepaid expenses 26,601 28,865
Decrease in replacement reserve 112,450 9,166
Decrease in escrow deposits 96,540 4,141
Decrease in deferred charges 285,023 16,631
Increase (decrease) in accounts payable 20,002 (14,858)
(Decrease) increase in accrued liabilities (99,177) 5,881
Increase (decrease) in accrued liabilities
to affiliates 479,513 (357,078)
Decrease in unfunded distributions payable - (540,304)
(Decrease) increase in security deposits (31,776) 5,425
Net cash provided by (used in)
operating activities 411,131 (593,359)
Investing Activities
Net proceeds from sale of properties 4,322,740 -
Capitalized foreclosure costs (224,989) -
Capital improvements to real estate (205,389) (67,814)
Net cash provided by (used in)
investing activities 3,892,362 (67,814)
Financing Activities
Distributions to Partners (1,580,158) -
Payoff of Hidden Village mortgage note payable (1,464,782) -
Principal payments on mortgage note payable (7,779) (37,770)
Net cash used in financing activities (3,052,719) (37,770)
Increase (decrease) in cash and cash equivalents 1,250,774 (698,943)
Cash and cash equivalents - January 1 4,383,475 3,646,756
Cash and cash equivalents - September 30 $ 5,634,249 $ 2,947,813
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.
Subsequent Event
On October 25, 1996, the partnership received $328,740 representing the
difference between the payoff of the mortgage note payable on Eastern Gateway
Shopping Center in the amount of $1,171,260 and the escrow balance of
$1,500,000.
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
September 30, 1996
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
During the third quarter, the Partnership sold all of its remaining properties
and is now in the process of completing its liquidation and dissolution program.
On September 20, 1996, the Partnership sold Eastern Gateway Shopping Center
(which had been foreclosed upon in May, 1996) for $3,000,000 less proration of
income and expenses, a real estate commission paid to an affiliate of the
Corporate General Partner of $165,000, and an escrow for the payoff of an
underlying mortgage note payable. The Partnership recognized a gain on sale
in the amount of $726,289.
On September 24, 1996, the Partnership sold Hidden Village Apartments for
$2,800,000 less closing costs, proration of income and expenses, a real estate
commission paid to an affiliate of the Corporate General Partner of $140,000,
and payoff of the underlying mortgage note. The Partnership recognized a gain
on sale in the amount of $1,461,523. Hidden Village and five additional
properties owned by other MultiVest partnerships were sold on separate sales
contracts to a purchaser not affiliated with the Partnership or its General
Partner. Your General Partner believes that the terms and conditions of the
sale were favorable to the Partnership.
The Partnership's total revenues increased $89,184 or 29% for the three months,
and $177,697 or 20% for the nine months ended September 30, 1996, as compared
with the same periods of the prior year. Rents and other tenant charges
increased $130,668 or 61%, and $288,685 or 46% 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 increased $354,624 or 126% for the quarter
ended September 30, 1996. There was a $268,497 or 29% increase in expenses for
the nine months ended September 30, 1996 as compared to the same period of the
prior year. The increase for both periods is due primarily to the investment
management fee payable to the General Partner pursuant to the Partnership
Agreement. Depreciation and amortization costs increased $108,071 or 141% for
the three months and $110,315 or 48% for the nine months ended September 30,
1996, due primarily to the full amortization of refinancing costs of Hidden
Village Apartments.
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 nine months ended
September 30, 1996.
<PAGE>
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
September 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
September 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: NOVEMBER 14, 1996 RICHARD L. DAVIS
Richard L. Davis
President -
Chief Executive Officer
Date: NOVEMBER 14, 1996 JOHN J. KAMMERER
John J. Kammerer
Principal Accounting Officer
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