FORM 10-Q--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange
Act of 1934
For the quarterly period ended June 30, 1998
or
[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the transition period.........to.........
(Amended by Exch Act Rel No. 312905. eff 4/26/93.)
Commission file number 0-11002
CONSOLIDATED CAPITAL PROPERTIES IV
(Exact name of registrant as specified in its charter)
California 94-2768742
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (864) 239-1000
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 .
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
CONSOLIDATED CAPITAL PROPERTIES IV
CONSOLIDATED BALANCE SHEET
(in thousands, except unit data)
June 30, December 31,
1998 1997
(Unaudited) (Note)
Assets
Cash and cash equivalents $ 12,274 $ 12,090
Receivables and deposits 1,990 1,999
Note and interest receivable 1,058 1,081
Restricted escrows 3,220 3,174
Other assets 1,620 1,874
Investment properties:
Land 12,491 12,491
Buildings and related personal property 119,835 118,162
132,326 130,653
Less accumulated depreciation (100,697) (98,490)
31,629 32,163
$ 51,791 $ 52,381
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 603 $ 526
Tenant security deposit liabilities 574 580
Accrued property taxes 1,108 1,312
Other liabilities 941 902
Mortgage notes and interest payable 72,225 72,439
75,451 75,759
Partners' Deficit
General partner (6,105) (6,174)
Limited partners (342,773 units issued
and outstanding at June 30, 1998 and
December 31, 1997) (17,555) (17,204)
(23,660) (23,378)
$ 51,791 $ 52,381
Note: The balance sheet at December 31, 1997, has been derived from the audited
financial statements at that date but does not include all the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See Accompanying Notes to Consolidated Financial Statements
b)
CONSOLIDATED CAPITAL PROPERTIES IV
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Rental income $ 6,900 $ 6,655 $13,745 $13,206
Other income 542 466 1,053 908
Casualty gain -- -- 227 --
Total revenues 7,442 7,121 15,025 14,114
Expenses:
Operating 3,234 3,146 6,307 6,041
General and administrative 227 227 647 457
Depreciation 1,170 1,624 2,318 3,237
Interest 1,457 1,472 2,929 2,947
Property taxes 413 439 902 824
Total expenses 6,501 6,908 13,103 13,506
Net income $ 941 $ 213 $ 1,922 $ 608
Net income allocated to general
partners (4%) $ 38 $ 9 $ 77 $ 24
Net income allocated to limited
partners (96%) 903 204 1,845 584
Net income $ 941 $ 213 $ 1,922 $ 608
Net income per limited partnership uni $ 2.64 $ .60 $ 5.38 $ 1.70
See Accompanying Notes to Consolidated Financial Statements
c)
CONSOLIDATED CAPITAL PROPERTIES IV
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' DEFICIT
(Unaudited)
For the Six Months Ended June 30, 1998 and 1997
(in thousands, except unit data)
Limited Total
Partnership General Limited Partners'
Units Partner Partners Deficit
Original capital contributions 343,106 $ 1 $171,553 $171,554
Partners' deficit at
December 31, 1996 342,783 $(6,089) $(15,153) $(21,242)
Net income for the six months
ended June 30, 1997 -- 24 584 608
Distributions to Partners -- (58) (1,395) (1,453)
Partners' deficit at
June 30, 1997 342,783 $(6,123) $(15,964) $(22,087)
Partners' deficit at
December 31, 1997 342,773 $(6,174) $(17,204) $(23,378)
Net income for the six months
ended June 30, 1998 -- 77 1,845 1,922
Distributions to Partners -- (8) (2,196) (2,204)
Partners' deficit at
June 30, 1998 342,773 $(6,105) $(17,555) $(23,660)
See Accompanying Notes to Consolidated Financial Statements
d)
CONSOLIDATED CAPITAL PROPERTIES IV
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Six Months Ended
June 30,
1998 1997
Cash flows from operating activities:
Net income $ 1,922 $ 608
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 2,318 3,237
Amortization of loan costs 157 144
Loss on disposition of investment property 27 33
Casualty (gain) loss (227) 9
Change in accounts:
Receivables and deposits 31 49
Other assets 114 (119)
Accounts payable 40 (291)
Tenant security deposit liabilities (6) (32)
Accrued property taxes (204) (101)
Other liabilities 39 (57)
Net cash provided by operating activities 4,211 3,480
Cash flows from investing activities:
Property improvements and replacements (1,774) (1,081)
Proceeds from sale of investments -- 492
Net (deposits to) receipts from restricted escrows (46) 183
Collections of note receivable 23 21
Net insurance proceeds from casualty gain (loss) 205 (9)
Net cash used in investing activities (1,592) (394)
Cash flows from financing activities:
Payments on notes payable (214) (202)
Distributions to partners (2,204) (1,453)
Loan costs paid (17) --
Net cash used in financing activities (2,435) (1,655)
Net increase in cash and cash equivalents 184 1,431
Cash and cash equivalents at beginning of period 12,090 9,239
Cash and cash equivalents at end of period $12,274 $10,670
Supplemental Disclosures of Cash Flow Information and Non-Cash Activities:
Cash paid for interest was approximately $2,773,000 and $2,803,000 for the six
months ended June 30, 1998 and 1997, respectively.
At June 30, 1998, accounts payable and property improvements and replacements
were each adjusted by approximately $37,000 and receivables and deposits were
adjusted by approximately $27,000 for non-cash activity.
See Accompanying Notes to Consolidated Financial Statements
e)
CONSOLIDATED CAPITAL PROPERTIES IV
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Consolidated
Capital Properties IV (the "Partnership") have been prepared in accordance with
generally accepted accounting principles 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 generally accepted accounting principles for complete financial statements.
In the opinion of ConCap Equities, Inc. (the "General Partner"), all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three and six months
ended June 30, 1998, are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 1998. For further information,
refer to the consolidated financial statements and footnotes thereto included in
the Partnership's annual report on Form 10-K for the fiscal year ended December
31, 1997.
Consolidation
The consolidated financial statements include the Partnership's equity interest
in a joint venture which owns South Port Apartments. The Partnership has the
ability to control the major operating and financial policies of the Joint
Venture. No minority interest has been reflected for the joint venture because
minority interests are limited to the extent of their equity capital, and losses
in excess of the minority interest equity capital are charged against the
Partnership's interest.
The Partnership's consolidated financial statements include the accounts of the
Partnership, its wholly-owned partnerships and its 99% limited partnership
interest in Briar Bay Apartments Associates, Ltd., Post Ridge Associates, Ltd.,
ConCap Rivers Edge Associates, Ltd., Foothill Chimney Associates, L.P., ConCap
Metro Centre Associates, Ltd., and ConCap Stratford Associates, Ltd. The
Partnership may remove the General Partner of its 99%-owned partnership;
therefore, these partnerships are controlled and consolidated by the
Partnership. All significant interpartnership balances have been eliminated.
Presentation of Accounts
Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.
NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all of the partnership
activities, as provided in the Limited Partnership Agreement ("Partnership
Agreement"). Partnership management and administrative services as well as
property management services are performed by affiliates of Insignia Financial
Group, Inc. ("Insignia"), an affiliate of the General Partner.
The General Partner and its affiliates were paid the following amounts during
the six months ended June 30, 1998 and 1997:
1998 1997
(in thousands)
Property management fees (included
in operating expenses) $ 732 $ 688
Reimbursements for services of affiliates
(included in general and administrative
expenses) 289 268
The Partnership has paid the property management fees noted above based on
collected gross rental revenues for property management services in each of the
six months ended June 30, 1998 and 1997, respectively.
In addition, approximately $35,000 and $25,000 in reimbursements for
construction oversight costs were paid to the General Partner or its affiliates
during the six months ended June 30, 1998 and 1997, respectively. These
reimbursements are included in investment property and operating expense.
The Partnership Agreement provides for a special management fee equal to 9% of
the total distributions made to the limited partners from cash flow provided by
operations to be paid to the General Partner for executive and administrative
management services. The Partnership paid approximately $190,000 and $48,000
under this provision of the Partnership Agreement to affiliates of the General
Partner for the six months ended June 30, 1998 and 1997, respectively. These
fees are included in general and administrative expenses.
In addition to reimbursements for services of affiliates for the six months
ended June 30, 1998, $7,000 of loan costs were capitalized and included in
"Other assets" on the Consolidated Balance Sheet. These loan costs are related
to the refinancing of South Park Apartments in 1997.
For the period January 1, 1997, to August 31, 1997, the Partnership insured its
properties under a master policy through an agency affiliated with the General
Partner with an insurer unaffiliated with the General Partner. An affiliate of
the General Partner acquired, in the acquisition of a business, certain
financial obligations from an insurance agency which was later acquired by the
agent who placed the master policy. The agent assumed the financial obligations
to the affiliate of the General Partner, which received payments on these
obligations from the agent. The amount of the Partnership's insurance premiums
accruing to the benefit of the affiliate of the General Partner by virtue of the
agent's obligations was not significant.
On August 28, 1997, an Insignia affiliate (the "Purchaser") commenced tender
offers for limited partnership interests in six real estate limited partnerships
(including the Partnership) in which various Insignia affiliates act as general
partner. The Purchaser offered to purchase up to 85,000 of the outstanding
units of limited partnership interest in the Partnership, at $140.00 per Unit,
net to the seller in cash, upon the terms and subject to the conditions set
forth in the Offer to Purchase dated August 28, 1997 (the "Offer to Purchase")
and the related Assignment of Partnership Interest attached as Exhibits (a)(1)
and (a)(2), respectively, to the Tender Offer Statement on Schedule 14D-1
originally filed with the Securities and Exchange Commission on August 28, 1997.
Because of the existing and potential future conflicts of interest (described in
the Partnership's Statements on Schedule 14D-9 filed with the Securities and
Exchange Commission), neither the Partnership nor the General Partner expressed
any opinion as to the Offer to Purchase and made no recommendation as to whether
unit holders should tender their units in response to the Offer to Purchase. On
October 6, 1997, the Insignia affiliate closed the tender offer and acquired
29,618 units of limited partnership interest (8.64% of total Units). In
addition, because of these conflicts of interest, including as a result of the
Purchaser's affiliation with various Insignia affiliates, the manner in which
the Purchaser votes its limited partner interest in the Partnership may not
always be consistent with the best interests of the other limited partners.
On March 17, 1998, Insignia entered into an agreement to merge its national
residential property management operations, and its controlling interest in
Insignia Properties Trust, with Apartment Investment and Management Company
("AIMCO"), a publicly traded real estate investment trust. The closing, which
is anticipated to happen in September or October of 1998, is subject to
customary conditions, including government approvals and the approval of
Insignia's shareholders. If the closing occurs, AIMCO will then control the
General Partner of the Partnership.
NOTE C - COMMITMENT AND CONTINGENCIES
Commitments
The Partnership is required by the Partnership Agreement to maintain working
capital reserves for contingencies. On September 25, 1995, the partners were
proxied and approved a reduction of the capital reserve requirements to $500 per
apartment unit owned by the Partnership, or approximately $2,100,000. In the
event expenditures are made from these reserves, operating revenue shall be
allocated to such reserves to the extent necessary to maintain the foregoing
level. Reserves, including cash and cash equivalents totaling approximately
$12,274,000 at June 30, 1998, exceeded the Partnership's reserve requirements of
approximately $2,100,000.
NOTE D - DISTRIBUTIONS
In March 1998, the General Partner declared and paid distributions attributable
to cash flow from operations totaling approximately $2,204,000.
In March 1997, the General Partner declared and paid distributions attributable
to cash flow from operations totaling approximately $550,000 and approximately
$903,000 representing a return of capital.
NOTE E - NOTE AND INTEREST RECEIVABLE
When Denbigh Village Apartments was sold in August 1994, the Partnership
accepted a promissory note which matured in March 1996. In March 1996, an
extension, under the existing terms, was negotiated to extend the note until
April 1997. The note matured and the outstanding principal balance was not
repaid. The Partnership negotiated with the borrower to extend the terms of the
note until April 1, 1998, with all other terms of the note remaining unchanged.
In March 1998, an extension, under modified terms, was negotiated to extend the
note until September 1, 1998. The modified terms provide for consideration to
be paid to the Partnership of an amount equal to one half of one percent of the
outstanding principal balance due as of March 31, 1998 as an extension fee. The
fee was received in May of 1998. The estimated value of the note receivable
approximates its carrying value.
NOTE F - CASUALTY GAINS
In March 1998, Nob Hill Apartments had a fire that destroyed four apartment
units. Additionally, the remaining apartment units in the building sustained
water and smoke damage which eventually caused mold and mildew. Repair costs
are estimated to be approximately $222,000, most of which will be received as
insurance proceeds net of a deductible. Repair efforts have begun and are
scheduled to be completed during the third quarter of 1998.
In November 1997, Overlook Apartments had a fire which destroyed one apartment
unit and caused water and smoke damage in the remaining apartment units in the
building. Insurance proceeds of $200,000 were received during the six months
ended June 30, 1998 with approximately $27,000 receivable from the insurer.
Repair efforts are in progress and the related costs will be capitalized as a
part of the investment property. In accordance with generally accepted
accounting principles the total insurance proceeds have been recorded as a
casualty gain of approximately $227,000 for the six months ended June 30, 1998.
Total insurance proceeds received and receivable approximate the cost of
replacement.
In January 1997, Foothill Place Apartments sustained extensive wind and flood
damage from severe storms. Additionally, in February 1997, a fire occurred at
Foothill Place Apartments resulting in minor fire damage. The insurance
proceeds anticipated to be received less the estimated costs to make the
necessary repairs and the write-off of assets to be replaced, resulted in a net
casualty loss for these events of approximately $9,000 for the six month period
ended June 30, 1997. All repairs and replacements related to these casualties
were completed in the second quarter of 1997.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The Partnership's investment properties consist of seventeen apartment
complexes. The following table sets forth the average occupancy of the
properties for the six months ended June 30, 1998 and 1997:
Average Occupancy
1998 1997
The Apartments
Omaha, NE 96% 95%
Arbours of Hermitage Apartments
Nashville, TN 96% 96%
Briar Bay Racquet Club Apartments
Miami, FL 97% 94%
Chimney Hill Apartments
Marietta, GA 89% 90%
Citadel Apartments
El Paso, TX 96% 92%
Citadel Village Apartments
Colorado Springs, CO 96% 97%
Foothill Place Apartments
Salt Lake City, UT 94% 93%
Knollwood Apartments
Nashville, TN 94% 95%
Lake Forest Apartments
Omaha, NE 92% 94%
Nob Hill Villa Apartments
Nashville, TN 94% 96%
Overlook Apartments
Memphis, TN 89% 89%
Point West Apartments
Charleston, SC 97% 97%
Post Ridge Apartments
Nashville, TN 96% 97%
Rivers Edge Apartments
Auburn, WA 97% 98%
South Port Apartments
Tulsa, OK 96% 92%
Stratford Place Apartments
Austin, TX 92% 88%
Village East Apartments
Cimarron Hills, CO 95% 99%
Occupancy for the Briar Bay Racquet Club Apartments has increased due to strong
marketing efforts and focusing on renewals. The low occupancy at Chimney Hill
Apartments is attributable to a highly competitive market and ongoing
construction. Citadel Apartments experienced an increase in occupancy due to
aggressive marketing efforts and an overall increase in the El Paso market.
With an increase in construction of comparable multi-family units, there has
been a drop in the occupancy at Lake Forest Apartments. The decrease in
occupancy at Nob Hill Villa Apartments can be attributed to a softening market
in Nashville due to new construction in the area. Occupancy at Overlook
Apartments remains low but relatively consistent with the overall projected rate
for the Memphis apartment market. New construction and low interest rates are
primarily responsible for the continued soft market in this area. As a result
of a new staff and aggressive marketing, Stratford Place has increased
occupancy. The increase in occupancy at South Port Apartments is attributable to
an improved appearance, clubhouse renovations and increased marketing efforts.
Poor market conditions due to military transfers and increased home purchasing
contributed to a decrease in occupancy at Village East Apartments.
The Partnership's net income for the three and six months ended June 30, 1998,
was approximately $941,000 and $1,922,000 versus approximately $213,000 and
$608,000 for the three and six months ended June 30, 1997, respectively. The
increase in net income is attributable to an increase in rental and other income
and a decrease in depreciation expense. Rental income increased for the six
months ended June 30, 1998, compared to the six months ended June 30, 1997, due
to increased rental rates and occupancy at many of the Partnership's investment
properties. The increase in other income is primarily attributable to higher
cash balances held for the six months ended June 30, 1998 versus June 30, 1997.
Also contributing to the increase in net income was a casualty gain of
approximately $227,000 as discussed in Note F. Depreciation expense decreased
due to major assets at several properties becoming fully depreciated during
1997. Partially offsetting these favorable variances were increases in general
and administrative, operating and property tax expenses. General and
administrative expense increased primarily due to an increase in the special 9%
management fee on distributions from operating cash flows. The Partnership
distributed approximately $2,204,000 and $550,000 from operating cash flow
during the six months ended June 30, 1998 and 1997, respectively. The increase
in operating expense primarily results from increased maintenance salaries and
increased sewer repairs to deteriorating sewer lines and repair of roof leaks at
one of the investment properties. Property tax expense increased due to higher
assessed values at several of the Partnership's investment properties.
Included in operating expense is approximately $171,000 of major repairs and
maintenance mainly comprised of major landscaping, exterior building
improvements and painting, parking lot repairs and construction oversight costs
during the six months ended June 30, 1998. During the six months ended June 30,
1997, approximately $382,000 of major repairs and maintenance comprised
primarily of exterior building improvements and major landscaping were included
in operating expense.
When Denbigh Village Apartments was sold in August 1994, the Partnership
accepted a promissory note which matured in March 1996. In March 1996, an
extension, under the existing terms, was negotiated to extend the note until
April 1997. The note matured and the outstanding principal balance was not
repaid. The Partnership negotiated with the borrower to extend the terms of the
note until April 1, 1998 with all other terms of the note remaining unchanged.
In March 1998, an extension, under modified terms, was negotiated to extend the
note until September 1, 1998. The modified terms provide for consideration to
be paid to the Partnership of an amount equal to one half of one percent of the
outstanding principal balance due as of March 31, 1998 as an extension fee.
This fee was received in May of 1998. The estimated value of the note
receivable approximates its carrying value.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.
At June 30, 1998, the Partnership held cash and cash equivalents of
approximately $12,274,000 compared to approximately $10,670,000 at June 30,
1997. Cash and cash equivalents had a net increase of approximately $184,000
and $1,431,000 for the six months ended June 30, 1998 and 1997, respectively.
Net cash provided by operating activities increased due to a decrease in cash
used for accounts payable, increased net income, as described above, and a
decrease in other assets. The increase in accounts payable results from the
timing of payments. Other assets decreased due to a decrease in prepaid
insurance. Partially offsetting these positive influences was an increase in
cash used for payment of property taxes, as discussed above. Net cash used in
investing activities increased primarily due to the non-recurring proceeds from
the sale of Treasury Bills in 1997, increased property improvements and
replacements, and an increase in net deposits to restricted escrows. These
increases in cash used in investing were partially offset by the collection of
insurance proceeds related to the Overlook Apartments casualty. Net cash used
in financing activities increased as a result of increased distributions to
partners during the six months ended June 30, 1998 compared to the corresponding
period of 1997.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the properties to adequately maintain the physical
assets and meet other operating needs of the Partnership. Such assets are
currently thought to be sufficient for any near-term needs of the Partnership.
The mortgage indebtedness of approximately $72,225,000 matures at various dates
between December 1998 and December 2005, with balloon payments due at maturity,
at which time the properties will either be refinanced or sold. The debt
underlying the Overlook Apartments property is scheduled to mature in December
1998 and the General Partner is evaluating its ability to refinance or to market
this property during the third quarter of 1998. During the six months ended
June 30, 1998 and 1997, cash distributions of approximately $2,204,000 and
$1,453,000, respectively, were declared and paid. Future cash distributions will
depend on the levels of net cash generated from operations, capital expenditure
requirements, property sales or refinancings and the availability of cash
reserves. The General Partner expects to make another distribution during the
third quarter of 1998.
Year 2000
The Partnership is dependent upon the General Partner and Insignia for
management and administrative services. Insignia has completed an assessment
and will have to modify or replace portions of its software so that its computer
systems will function properly with respect to dates in the year 2000 and
thereafter (the "Year 2000 Issue"). The project is estimated to be completed no
later than December 31, 1998, which is prior to any anticipated impact on its
operating systems. The General Partner believes that with modifications to
existing software and conversions to new software, the Year 2000 Issue will not
pose significant operational problems for its computer systems. However, if such
modifications and conversions are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the
Partnership.
Other
Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Such forward-looking statements speak only as of the date
of this quarterly report. The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled ROSALIE NUANES, ET AL. V. INSIGNIA
FINANCIAL GROUP, INC., ET AL. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, the General Partner and several of their affiliated
partnerships and corporate entities. The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia and its affiliates of
interests in certain general partner entities, past tender offers by Insignia
affiliates as well as a recently announced agreement between Insignia and AIMCO.
The complaint seeks monetary damages and equitable relief, including judicial
dissolution of the Partnership. The General Partner believes the action to be
without merit, and intends to vigorously defend it. On June 24, 1998, the
General Partner filed a motion seeking dismissal of the action.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature. The General Partner of the Partnership believes
that all such other pending or outstanding litigation will be resolved without a
material adverse effect upon the business, financial condition, or operations of
the Partnership.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
report.
(b) Reports on Form 8-K:
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Partnership
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CONSOLIDATED CAPITAL PROPERTIES IV
By: CONCAP EQUITIES, INC.
General Partner
By: /s/ William H. Jarrard, Jr.
William H. Jarrard, Jr.
President
By: /s/ Ronald Uretta
Ronald Uretta
Vice President/Treasurer
Date: August 5, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Consolidated Capital Properties IV 1998 Second Quarter 10-Q and is
qualified in its entirety by reference to such 10-Q filing.
</LEGEND>
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<NAME> CONSOLIDATED CAPITAL PROPERTIES IV
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 12,274
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<RECEIVABLES> 1,990
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 132,326
<DEPRECIATION> (100,697)
<TOTAL-ASSETS> 51,791
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 72,225
0
0
<COMMON> 0
<OTHER-SE> (23,660)
<TOTAL-LIABILITY-AND-EQUITY> 51,791
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<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 13,103
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,929
<INCOME-PRETAX> 0
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<F1>Registrant has an unclassified balance sheet.
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