SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended March 31, 1996 Commission file number 0-8469
JMB INCOME PROPERTIES, LTD. - IV
(Exact name of registrant as specified in its charter)
Illinois 36-2857658
(State of organization) (IRS Employer Identification No.)
900 N. Michigan Ave., Chicago, IL 60611
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 312/915-1987
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
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
Item 1. Financial Statements . . . . . . . . . . . . . . . 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . 9
PART II OTHER INFORMATION
Item 5. Other Information. . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 12
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JMB INCOME PROPERTIES, LTD. - IV
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
ASSETS
------
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
------------- ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . $ 4,343,171 6,822,336
Short-term investments. . . . . . . . . . . . . . . . . . . . . . . . 3,001,270 --
Rents and other receivables . . . . . . . . . . . . . . . . . . . . . 334,006 379,877
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . 10,886 27,086
Escrow deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,168 18,880
------------ -----------
Total current assets. . . . . . . . . . . . . . . . . . . . . . 7,759,501 7,248,179
------------ -----------
Investment property, at cost:
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429,000 429,000
Buildings and improvements. . . . . . . . . . . . . . . . . . . . . . 15,978,029 15,978,029
------------ -----------
16,407,029 16,407,029
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . 11,009,826 10,916,302
------------ -----------
Total investment property, net of accumulated depreciation. . . 5,397,203 5,490,727
Deferred expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,728 100,616
Accrued rents receivable. . . . . . . . . . . . . . . . . . . . . . . . 258,229 250,554
------------ -----------
$ 13,502,661 13,090,076
============ ===========
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS (DEFICITS)
-----------------------------------------------------
Current liabilities:
Current portion of long-term debt . . . . . . . . . . . . . . . . . . $ 426,995 416,495
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . 16,465 16,349
Accrued interest. . . . . . . . . . . . . . . . . . . . . . . . . . . 15,231 16,066
Unearned rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,688 45,681
Accrued real estate taxes . . . . . . . . . . . . . . . . . . . . . . 47,068 --
------------ -----------
Total current liabilities . . . . . . . . . . . . . . . . . . . 550,447 494,591
Tenant security deposits. . . . . . . . . . . . . . . . . . . . . . . . 17,595 18,845
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . 820,107 820,107
Long-term debt, less current portion. . . . . . . . . . . . . . . . . . 2,723,807 2,834,574
------------ -----------
Commitments and contingencies
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . 4,111,956 4,168,117
Venture partner's equity in venture . . . . . . . . . . . . . . . . . . 1,741,474 1,576,047
Partners' capital accounts (deficits):
General partners:
Cumulative net earnings (loss). . . . . . . . . . . . . . . . . . . 2,334,636 2,328,570
Cumulative cash distributions . . . . . . . . . . . . . . . . . . . (3,375,428) (3,375,428)
------------ -----------
(1,040,792) (1,046,858)
------------ -----------
Limited partners (20,005 interests):
Capital contributions, net of offering costs. . . . . . . . . . . . 17,996,292 17,996,292
Cumulative net earnings (loss). . . . . . . . . . . . . . . . . . . 39,074,372 38,777,119
Cumulative cash distributions . . . . . . . . . . . . . . . . . . . (48,380,641) (48,380,641)
------------ -----------
8,690,023 8,392,770
------------ -----------
Total partners' capital accounts. . . . . . . . . . . . . . . . 7,649,231 7,345,912
------------ -----------
$ 13,502,661 13,090,076
============ ===========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
JMB INCOME PROPERTIES, LTD. - IV
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------- -----------
<S> <C> <C>
Income:
Rental income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,048,357 1,134,184
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,987 69,050
---------- ----------
1,121,344 1,203,234
---------- ----------
Expenses:
Mortgage and other interest . . . . . . . . . . . . . . . . . . . . . 79,610 89,194
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,524 92,980
Property operating expenses . . . . . . . . . . . . . . . . . . . . . 428,021 362,575
Professional services . . . . . . . . . . . . . . . . . . . . . . . . 16,033 5,000
Amortization of deferred expenses . . . . . . . . . . . . . . . . . . 13,963 14,230
General and administrative. . . . . . . . . . . . . . . . . . . . . . 21,447 4,097
---------- ----------
652,598 568,076
---------- ----------
Operating earnings (loss) . . . . . . . . . . . . . . . . . . 468,746 635,158
Venture partner's share of venture's operations . . . . . . . . . . . . (165,427) (216,112)
---------- ----------
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . $ 303,319 419,046
========== ==========
Net earnings (loss) per limited
partnership interest. . . . . . . . . . . . . . . . . . . . $ 14.86 20.53
========== ==========
Cash distributions per limited
partnership interest. . . . . . . . . . . . . . . . . . . . $ -- --
========== ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
JMB INCOME PROPERTIES, LTD. - IV
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 303,319 419,046
Items not requiring (providing) cash or cash equivalents:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,524 92,980
Amortization of deferred expenses . . . . . . . . . . . . . . . . . . . 13,963 14,230
Venture partner's share of venture's operations . . . . . . . . . . . . 165,427 216,112
Changes in:
Rents and other receivables . . . . . . . . . . . . . . . . . . . . . . 45,871 65,930
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,200 15,775
Escrow deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51,288) (51,288)
Accrued rents receivable. . . . . . . . . . . . . . . . . . . . . . . . (7,675) (128,421)
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 11,963
Accrued interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . (835) (756)
Unearned rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (993) --
Accrued real estate taxes . . . . . . . . . . . . . . . . . . . . . . . 47,068 47,443
Tenant security deposits. . . . . . . . . . . . . . . . . . . . . . . . (1,250) (2,500)
----------- -----------
Net cash provided by (used in) operating activities . . . . . . . 623,447 700,514
----------- -----------
Cash flows from investing activities:
Net sales (purchases) of short-term investments . . . . . . . . . . . . . (3,001,270) (83,519)
Additions to investment properties. . . . . . . . . . . . . . . . . . . . -- (3,921)
Payment of deferred expenses. . . . . . . . . . . . . . . . . . . . . . . (1,075) (3,448)
----------- -----------
Net cash provided by (used in) investing activities . . . . . . . (3,002,345) (90,888)
----------- -----------
Cash flows from financing activities:
Principal payments on long-term debt. . . . . . . . . . . . . . . . . . . (100,267) (90,764)
----------- -----------
Net cash provided by (used in) financing activities . . . . . . . (100,267) (90,764)
----------- -----------
Net increase (decrease) in cash and cash equivalents. . . . . . . (2,479,165) 518,862
Cash and cash equivalents, beginning of year. . . . . . . . . . . 6,822,336 3,110,077
----------- -----------
Cash and cash equivalents, end of period. . . . . . . . . . . . . $ 4,343,171 3,628,939
=========== ===========
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest . . . . . . . . . . . . . . . . $ 80,445 89,950
=========== ===========
Non-cash investing and financing activities . . . . . . . . . . . . . . . $ -- --
=========== ===========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
JMB INCOME PROPERTIES, LTD. - IV
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996 AND 1995
(UNAUDITED)
GENERAL
Readers of this quarterly report should refer to the Partnership's
audited financial statements for the fiscal year ended December 31, 1995
which are included in the Partnership's 1995 Annual Report, as certain
footnote disclosures which would substantially duplicate those contained in
such audited financial statements have been omitted from this report.
The preparation of financial statements in accordance with GAAP
requires the Partnership to make estimates and assumptions that affect the
reported or disclosed amount of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reported period. Actual results could differ from those
estimates.
Statement of Financial Accounting Standards No. 121 was adopted by the
Partnership on January 1, 1996.
TRANSACTIONS WITH AFFILIATES
Fees, commissions and other expenses required to be paid by the
Partnership to the General Partners and their affiliates as of March 31,
1996 and for the three months ended March 31, 1996 and 1995 are as follows:
Unpaid at
March 31,
1996 1995 1996
------- ------ -------------
Property management fees. . . $48,694 50,843 --
Insurance commissions . . . . 85 89 --
Reimbursement (at cost) for
out-of-pocket expenses. . . 264 265 --
------- ------ ------
$49,043 51,197 --
======= ====== ======
HUNTSVILLE (PARKWAY CITY MALL)
Huntsville Mall Associates ("Huntsville") has discontinued its
distributions effective with the first quarter of 1993.
In 1996 and 1997, the expiration of tenant leases will be 9% and 3%,
respectively. There can be no assurance that the expiring tenant space can
be renewed.
Parkway City Mall is one of two malls serving the Huntsville
metropolitan area. Another shopping center developer had announced plans
for a proposed third mall which, if built, will significantly impact the
market share of Parkway City Mall. The increased likelihood of the
development of the third mall continues to have substantial adverse effects
on the Partnership's ability to market the Parkway City Mall for leasing or
sale. As previously reported, the Partnership had considered other
alternative plans, including potential financing options, to reposition the
property to effectively compete with the third mall. However, due to the
complexity of the redevelopment, the lengthy time span likely needed to
complete the project and the Partnership's desire to wind up its affairs
within the next few years, it was determined that it would be better for a
buyer with a longer-term ownership perspective to undertake the
redevelopment. Accordingly, the Partnership is distributing funds no
longer required for that potential project. The Partnership has determined
to continue to operate the property in its present condition until such
time as the property can be sold. There are a number of factors that may
affect the sale price that will ultimately be achieved for Parkway City
Mall, including, among other things, the following: potential increased
competition from the proposed new shopping mall in the area and the timing
of the development of such shopping mall, the relative attractiveness of
retail properties for investment purposes, conditions for retailing
generally, interest rates, the actual operations of Parkway City Mall,
tenant bankruptcies, the continued operation and success of anchor
department store tenants and the ability to retain existing tenants and
attract new tenants at Parkway City Mall. As a result, there is no
assurance as to what price will ultimately be obtained upon a sale of
Parkway City Mall.
ADJUSTMENTS
In the opinion of the Managing General Partner, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation have been made to the accompanying figures as of March 31,
1996 and for the three months ended March 31, 1996 and 1995.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Reference is made to the notes to the accompanying financial
statements for additional information concerning the Partnership's
investment.
At March 31, 1996, the Partnership and its consolidated venture had
cash and cash equivalents and short-term investments aggregating
approximately $7,344,000, of which approximately $1,327,000 represents the
joint venture partner's share of undistributed cash flow from operations of
Huntsville. The remaining funds, of approximately $6,017,000, are
available for distributions to partners, tenant improvements and leasing
commissions and other capital expenditures at the Partnership's remaining
investment property and for working capital requirements.
The General Partners expect to conduct an orderly liquidation as
quickly as practicable. The affairs of the Partnership are expected to be
wound up no later than December 31, 1999 (sooner if the last remaining
property is sold in the near term), barring unforeseen economic
developments.
The Partnership has decided to make a distribution of $130 per Limited
Partnership Interest, or $2,600,650. The May 31, 1996 distribution is
being made out of working capital reserves that had been retained for
capital and leasing costs in connection with the possible redevelopment of
Parkway City Mall as described in the Notes to Consolidated Financial
Statements.
RESULTS OF OPERATIONS
The aggregate increase in cash and cash equivalents and short-term
investments at March 31, 1996 as compared to December 31, 1995 and the
increase in venture partner's equity in venture at March 31, 1996 as
compared to December 31, 1995 are attributable primarily to the increase in
cash resulting from the suspension of distributions of cash flow from the
Huntsville venture. The decrease in cash and cash equivalents and the
corresponding increase in short-term investments at March 31, 1996 as
compared to December 31, 1995 is primarily due to all of the Partnership's
investments in U.S. Government obligations being classified as cash
equivalents at December 31, 1995 whereas none of the U.S. Government
obligations were classified as cash equivalents at March 31, 1996.
The increase in property operating expense for the three months ended
March 31, 1996 as compared to the three months ended March 31, 1995 is
primarily due to an increase in bad debt expense of approximately $52,600
and an increase in advertising expense of approximately $13,000 (which is
partially recoverable from tenants) at the Parkway City Mall.
The increase in general and administrative expense for the three
months ended March 31, 1996 as compared to the three months ended March 31,
1995 is primarily due to the use of independent third parties to perform
certain administrative services for the Partnership.
<TABLE>
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
OCCUPANCY
The following is a listing of approximate occupancy levels by quarter for the Partnership's remaining
investment property:
<CAPTION>
1995 1996
------------------------------------- ------------------------------
At At At At At At At At
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Parkway City Mall
Huntsville, Alabama . . . 85% 87% 87% 86% 84%
</TABLE>
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3-A.* The Prospectus of the Partnership dated July 26, 1976,
as supplemented August 19, 1976, September 16, 1976, and September 21,
1976, filed with the Commission pursuant to Rules 424(b) and 424(c), is
hereby incorporated herein by reference.
3-B.* Amended and Restated Agreement of Limited Partnership
set forth as Exhibit A to the Prospectus, and which agreement is hereby
incorporated herein by reference.
4. Mortgage Note between Huntsville Mall Associates and
New York Life Insurance Company, dated November 19, 1976, secured by the
Parkway City Mall in Huntsville, Alabama is hereby incorporated herein by
reference to the Partnership's Prospectus filed on Form S-11 (File No. 2-
55624) dated July 26, 1976.
10. Acquisition documents including the venture agreement
relating to the purchase by the Partnership of an interest in the Parkway
City Mall in Huntsville, Alabama are hereby incorporated herein by
reference to the Partnership's Prospectus on Form S-11 (File No. 2-55624)
dated July 26, 1976.
27. Financial Data Schedule
--------------------
* Previously filed as Exhibits 3-A and 3-B, respectively,
to the Partnership's Report for December 31, 1992 on Form 10-K (File No. 0-
8469) dated March 19, 1993.
(b) No reports on Form 8-K were required or have been filed for
the quarter covered by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JMB INCOME PROPERTIES, LTD. - IV
BY: JMB Realty Corporation
(Managing General Partner)
By: GAILEN J. HULL
Gailen J. Hull, Senior Vice President
Date: May 10, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following person in the capacity
and on the date indicated.
GAILEN J. HULL
Gailen J. Hull, Principal Accounting Officer
Date: May 10, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCLUDED IN SUCH REPORT.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 4,343,171
<SECURITIES> 3,001,270
<RECEIVABLES> 415,060
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 7,759,501
<PP&E> 16,407,029
<DEPRECIATION> 11,009,826
<TOTAL-ASSETS> 13,502,661
<CURRENT-LIABILITIES> 550,447
<BONDS> 2,723,807
<COMMON> 0
0
0
<OTHER-SE> 7,649,231
<TOTAL-LIABILITY-AND-EQUITY> 13,502,661
<SALES> 1,048,357
<TOTAL-REVENUES> 1,121,344
<CGS> 0
<TOTAL-COSTS> 535,508
<OTHER-EXPENSES> 37,480
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 79,610
<INCOME-PRETAX> 468,746
<INCOME-TAX> 0
<INCOME-CONTINUING> 303,319
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 303,319
<EPS-PRIMARY> 14.86
<EPS-DILUTED> 14.86
</TABLE>
