FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER
SECTION 13 OR 15(D)
(As last amended by 34-31905, eff. 4/26/93)
[X] Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934 [No Fee Required]
For the fiscal year ended October 31, 1997
or
[ ] Transition Report Under to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]
For the transition period.........to.........
Commission file number 0-10884
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
(Name of small business issuer in its charter)
South Carolina 57-0721760
(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)
(864) 239-1000
Issuer's telephone number
Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:
Units of Limited Partnership Interest
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act of 1934 during the past 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
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]
State issuer's revenues for its most recent fiscal year. $11,270,000
State the aggregate market value of the voting partnership interests held by
non-affiliates computed by reference to the price at which the partnership
interests were sold, or the average bid and asked prices of such partnership
interests, as of October 31, 1997. Market Value information for the
Registrant's partnership interests is not available. Should a trading market
develop for these interest, it is the Managing General Partners' belief that
such trading would not exceed $25,000,000.
DOCUMENTS INCORPORATED BY REFERENCE
1. Portions of the Prospectus of Registrant dated June 8, 1982 (included in
Registration Statement, No. 2-77217, of Registrant) are incorporated by
reference into Parts I and III
PART I
ITEM 1. DESCRIPTION OF BUSINESS
Shelter Properties IV Limited Partnership (the "Registrant" or the
"Partnership") is engaged in the business of acquiring, operating and holding
real properties for investment. The Registrant acquired five existing apartment
properties during 1982 and 1983 and has been operating such properties since
that time with the exception of Rushcreek Village Apartments, which was deeded
back to the lender in lieu of foreclosure in June 1987, and The Corners
Apartments, which was foreclosed upon on November 2, 1992.
Commencing June 8, 1982, the Registrant offered through E. F. Hutton & Company
Inc. ("Hutton") up to 49,900 Units of Limited Partnership Interest (the "Units")
at a purchase price of $1,000 per Unit with a minimum purchase of 5 Units
($5,000) or 2 Units ($2,000) for an Individual Retirement Account. An additional
100 Units were purchased by the Corporate General Partner. Limited partners are
not required to make any additional capital contributions.
The Units were registered under the Securities Act of 1933 via Registration
Statement No. 2-77217 (the "Registration Statement"). Reference is made to the
Prospectus of Registrant dated June 8, 1982 (the "Prospectus") contained in said
Registration Statement, which is incorporated herein by reference thereto.
The offering terminated on December 15, 1982. Upon termination of the
offering, the Registrant had accepted subscriptions for 50,000 Units, including
100 Units purchased by the Corporate General Partner, for an aggregate of
$50,000,000. The Registrant invested approximately $38,000,000 of such proceeds
in five existing apartment properties and thereby completed its acquisition
program in March 1983 at approximately the expenditure level estimated in the
Prospectus. Funds not expended because they are held as reserves have been
invested by the Registrant, in accordance with the policy described in the
Prospectus, in U. S. Government securities or other highly liquid, short-term
investments where the General Partner believes there is appropriate safety of
principal.
A further description of the Partnership's business is included in Management's
Discussion and Analysis or Plan of Operation included in "Item 6" of this Form
10-KSB.
The Registrant has no employees. Management and administrative services are
performed by Shelter Realty IV Corporation, the Corporate General Partner, and
by Insignia Management Group, L.P., an affiliate of Insignia Financial Group,
Inc. ("Insignia"), the ultimate parent company of the Corporate General Partner.
Pursuant to a management agreement between them, Insignia Management Group, L.P.
provides property management services to the Registrant.
The real estate business in which the Partnership is engaged is highly
competitive and the Partnership is not a significant factor in this industry.
The Registrant's property is subject to competition from similar properties in
the vicinity in which the property is located. In addition, various limited
partnerships have been formed by the General Partners and/or their affiliates to
engage in business which may be competitive with the Registrant.
ITEM 2. DESCRIPTION OF PROPERTIES:
The following table sets forth the Registrant's investments in properties:
Date of
Property Purchase Type of Ownership Use
Baymeadows Apartments 9/30/82 Fee ownership subject Apartment
Jacksonville, Florida to first and second 904 units
mortgages.
Quail Run Apartments 1/03/83 Fee ownership subject Apartment
Columbia, South Carolina to first and second 332 units
mortgages.
Countrywood Village Apartments 3/31/83 Fee ownership subject Apartment
Raleigh, North Carolina to first and second 384 units
mortgages.
SCHEDULE OF PROPERTIES:
(in thousands)
Gross
Carrying Accumulated Federal
Property Value Depreciation Rate Method Tax Basis
Baymeadows
Apartments $33,252 $17,856 5-36 yrs S/L $ 4,383
Quail Run
Apartments 13,295 6,485 5-34 yrs S/L 1,752
Countrywood
Village Apts. 13,449 7,928 5-30 yrs S/L 1,846
Total $59,996 $32,269 $ 7,981
See "Note A" to the financial statements included in "Item 7" for a description
of the Partnership's depreciation policy.
SCHEDULE OF MORTGAGES:
(in thousands)
<TABLE>
<CAPTION>
Principal Principal
Balance At Stated Balance
October 31, Interest Period Maturity Due At
Property 1997 Rate Amortized Date Maturity
<S> <C> <C> <C> <C> <C>
Baymeadows
1st Mortgage $14,179 7.60% (1) 11/15/02 $11,554
2nd Mortgage 493 7.60% (1) 11/15/02 493
Quail Run
1st Mortgage 5,718 7.60% (1) 11/15/02 4,659
2nd Mortgage 199 7.60% (1) 11/15/02 199
Countrywood Village
1st Mortgage 4,430 7.60% (1) 11/15/02 3,610
2nd Mortgage 154 7.60% (1) 11/15/02 154
25,173
Less unamortized
discounts (1,106)
$24,067
</TABLE>
(1)The principal balance is being amortized over 257 months with a balloon
payment due November 15, 2002.
Average annual rental rate and occupancy for 1997 and 1996 for each property:
Average Annual Average Annual
Rental Rates Occupancy
Property 1997 1996 1997 1996
Baymeadows $6,969 $6,572 95% 96%
Quail Run 7,446 7,182 93% 95%
Countrywood Village 6,757 6,479 95% 95%
As noted under "Item 1. Description of Business," the real estate industry is
highly competitive. All of the properties of the Partnership are subject to
competition from other residential apartment complexes in the area. The
Corporate General Partner believes that all of the properties are adequately
insured. The multi-family residential properties' lease terms are for one year
or less. No residential tenant leases 10% or more of the available rental
space.
Real estate taxes and rates in 1997 for each property were:
1997 1997
Billing Rate
(in thousands)
Baymeadows $ 500* 2.14
Quail Run 167* 1.77
Countrywood 110* 1.24
These properties have a fiscal year end different than the real estate tax
year; therefore tax expense does not agree to the 1997 billing.
ITEM 3. LEGAL PROCEEDINGS
The Partnership is unaware of any pending or outstanding litigation that is not
of a routine nature. The Managing General Partner of the Partnership believes
that all such pending or outstanding litigation will be resolved without a
material adverse effect upon the business, financial condition, or operations of
the Partnership.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
During the fiscal year ended October 31, 1997, no matter was submitted to a vote
of unit holders through the solicitation of proxies or otherwise.
PART II
ITEM 5. MARKET FOR PARTNERSHIP EQUITY AND RELATED PARTNER MATTERS
As of October 31, 1997, there was minimal trading of the Units in the secondary
market establishing a high and low value of $380 and $320, respectively, per
Unit quoted in the September/October 1997 edition of The Partnership Spectrum.
There are 3,691 holders of record owning an aggregate of 49,995 Units of which
at October 31, 1997, Insignia and its affiliates owned 15,775 units. No public
trading market has developed for the Units, and it is not anticipated that such
a market will develop in the future. During the years ended October 31, 1997 and
1996, distributions of $800,000 and $1,000,000 were paid, respectively. Future
distributions will depend on the levels of cash generated from operations,
property sales and the availability of cash reserves. Distributions may also be
restricted by the requirement to deposit net operating income (as defined in the
mortgage note) into the Reserve Account until the Reserve Account is funded in
an amount equal to $1,000 per apartment unit for each respective property. (See
"Note A" of the financial statements.)
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in this report.
The Partnership's net income as shown in the consolidated statement of
operations for the year ended October 31, 1997, was approximately $507,000
versus a net income of approximately $246,000 for the same period in 1996 (see
"Note C" of the financial statements for a reconciliation of these amounts to
the Partnership's federal taxable losses). The increase in net income for the
year ended October 31, 1997, is attributable to an increase in rental income,
and a decrease in general and administrative expenses. Rental income increased
due to an increase in rental rates at all three investment properties which more
than offset the small occupancy decreases at Baymeadows and Quail Run. General
and administrative expenses decreased due to a decrease in legal costs. The
decrease in legal costs is attributable to a discrimination case at Baymeadows
which was settled during November 1996. Partially offsetting the increase in
net income was an increase in operating expense which is primarily attributable
to exterior painting projects at Quail Run and Baymeadows. These costs were
incurred to improve the building exteriors in order to attract new tenants and
ultimately increase occupancy at these properties. The Partnership incurred a
loss on disposal of property of approximately $39,000 due to a roof replacement
project at Quail Run during the period ended October 31, 1997. For the period
ended October 31, 1996 the Partnership incurred a loss on disposal of property
of approximately $33,000 due to roof replacement projects at Quail Run and
Baymeadows. Included in operating expense for the twelve months ended October
31, 1997 is approximately $677,000 of major repair and maintenance comprised
primarily of parking lot repairs and exterior painting. Included in operating
expense for the twelve months ended October 31, 1996 is approximately $305,000
of major repair and maintenance comprised primarily of window coverings, gutter
and parking lot repairs.
Management relies on the annual appraisals performed by outside appraisers to
assess the impairment of investment properties. There are three recognized
approaches or techniques available to the appraiser. When applicable, these
approaches are used to process the data considered significant to each to arrive
at separate value indications. In all instances the experience of the
appraiser, coupled with his objective judgment, plays a major role in arriving
at the conclusions of the indicated value from which the final estimate of value
is made. The three approaches commonly known are the cost approach, the sales
comparison approach, and the income approach. The cost approach is often not
considered to be reliable due to the lack of land sales and the significant
amount of depreciation and, therefore, is often not presented. Upon receipt of
the appraisals, any property which is stated on the books of the Partnership
above the estimated value given in the appraisal, is written down to the
estimated value given by the appraiser. The appraiser assumes a stabilized
occupancy at the time of the appraisal and, therefore, any impairment of value
is considered to be permanent by Management. For the year ended October
31, 1997, no adjustments for the impairment of value were recorded.
As part of the ongoing business plan of the Partnership, the Corporate General
Partner monitors the rental market environment at 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 Corporate 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 assurance that the Corporate General Partner will be able to sustain
this plan.
At October 31, 1997, the Partnership had cash and cash equivalents of
approximately $1,847,000 as compared to approximately $2,291,000 at October 31,
1996. The net decrease in cash and cash equivalents for the years ended
December 31, 1997 and 1996 is $444,000 and $468,000, respectively. Net cash
provided by operating activities decreased primarily due to an increase in cash
used for other liabilities as a result of accrued legal and settlement costs
associated with litigation. Net cash used in investing activities remained
stable. Net cash used in financing activities decreased as a result of a
reduction in partners' distributions made during the year ended October 31,
1997.
The Partnership has budgeted approximately $1.5 million in capital improvements
for the three properties in 1998. Budgeted capital improvements at Baymeadows
include major carpet replacement, major landscaping, exterior painting, and
gutter repairs. Budgeted capital improvements at Quail Run include roof
replacement and major carpet replacement. Countrywood has budgeted major carpet
replacement in 1998. These capital expenditures will be incurred only if cash
is available from operations or from partnership reserves mentioned previously.
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 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 $24,067,000, net of discount, is
amortized over 257 months with balloon payments of approximately $20,669,000 due
on November 15, 2002, at which time the properties will either be refinanced or
sold. Cash distributions of $800,000 and $1,000,000 were made during the year
ended October 31, 1997 and October 31, 1996, respectively. These distributions
were made from net cash from operations as defined by the Partnership Agreement.
Future cash distributions will depend on the levels of net cash generated from
operations, property sales, and the availability of cash reserves. The
Corporate General Partner is evaluating the feasibility of making a distribution
of net cash provided by operations in February 1998.
Year 2000
The Partnership is dependent upon the Corporate 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 project is estimated to be completed not later than December
31, 1998, which is prior to any anticipated impact on its operating systems.
The Corporate 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 completely timely, the
Year 2000 Issue could have a material impact on the operations of the
Partnership.
Other
Certain items discussed in this annual report may constitute forward-looking
statements within the meaning of the Private Litigation Reform Act of 1995 (the
"Reform Act") and such may involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
expressed or implied by such forward-looking statements. Such forward-looking
statements speak only as of the date of this annual report. The Partnership
expressly disclaims any obligation or undertaking to release publicly any
updates of 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.
ITEM 7. FINANCIAL STATEMENTS
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
LIST OF FINANCIAL STATEMENTS
Report of Ernst & Young LLP, Independent Auditors
Consolidated Balance Sheet - October 31, 1997
Consolidated Statements of Operations - Years ended October 31, 1997 and
1996
Consolidated Statements of Changes in Partners' Capital - Years
ended October 31, 1997 and 1996
Consolidated Statements of Cash Flows - Years ended October 31, 1997 and
1996
Notes to Consolidated Financial Statements
Report of Ernst & Young LLP, Independent Auditors
The Partners
Shelter Properties IV Limited Partnership
We have audited the accompanying consolidated balance sheet of Shelter
Properties IV Limited Partnership as of October 31, 1997, and the related
consolidated statements of operations, changes in partners' capital and cash
flows for each of the two years in the period ended October 31, 1997. These
financial statements are the responsibility of the Partnership's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
the Partnership's management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Shelter Properties
IV Limited Partnership at October 31, 1997, and the results of its operations
and its cash flows for each of the two years in the period ended October 31,
1997, in conformity with generally accepted accounting principles.
/s/ERNST & YOUNG LLP
Greenville, South Carolina
December 2, 1997
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEET
(in thousands, except unit data)
October 31, 1997
Assets
Cash and cash equivalents $ 1,847
Receivables and deposits 1,229
Restricted escrows 1,750
Other assets 532
Investment properties (Notes B & E):
Land $ 3,442
Buildings and related personal property 56,554
59,996
Less accumulated depreciation (32,269) 27,727
$ 33,085
Liabilities and Partners' Capital
Liabilities
Accounts payable $ 104
Tenant security deposit liabilities 277
Accrued property taxes 630
Other liabilities 228
Mortgage notes payable (Note B) 24,067
Partners' Capital
General partners $ (7)
Limited partners (49,995 units
issued and outstanding) 7,786 7,779
$ 33,085
See Accompanying Notes to Consolidated Financial Statements
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except unit data)
Years Ended October 31,
1997 1996
Revenues:
Rental income $ 10,672 $ 10,282
Other income 598 628
Total revenues 11,270 10,910
Expenses:
Operating 5,018 4,868
General and administrative 274 390
Property management fees 558 540
Depreciation 1,931 1,846
Interest 2,220 2,257
Property taxes 762 763
Total expenses 10,763 10,664
Net income (Note C) $ 507 $ 246
Net income allocated to general
partners (1%) $ 5 $ 2
Net income allocated to limited
partners (99%) 502 244
$ 507 $ 246
Net income per limited partnership unit $ 10.04 $ 4.86
See Accompanying Notes to Consolidated Financial Statements
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
(in thousands, except for unit data)
Limited
Partnership General Limited
Units Partners Partners Total
Original capital
contributions 50,000 $ 2 $ 50,000 $ 50,002
Partners' capital at
October 31, 1995 49,995 $ 4 $ 8,822 $ 8,826
Net income for the year
ended October 31, 1996 -- 2 244 246
Distributions to Partners -- (10) (990) (1,000)
Partners' capital at
October 31, 1996 49,995 (4) 8,076 8,072
Net income for the year
ended October 31, 1997 -- 5 502 507
Distributions to Partners -- (8) (792) (800)
Partners' capital at
October 31, 1997 49,995 $ (7) $ 7,786 $ 7,779
See Accompanying Notes to Consolidated Financial Statements
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Years Ended October 31,
1997 1996
Cash flows from operating activities:
Net income $ 507 $ 246
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 1,931 1,846
Amortization of discounts and loan costs 276 267
Loss on disposal of property 39 33
Change in accounts:
Receivables and deposits (86) (159)
Other assets (53) (21)
Accounts payable (170) (194)
Tenant security deposit liabilities 2 37
Accrued property taxes (12) 41
Other liabilities (269) 175
Net cash provided by operating activities 2,165 2,271
Cash flows from investing activities:
Property improvements and replacements (1,024) (1,034)
Deposits to restricted escrows (72) (44)
Net cash used in investing activities (1,096) (1,078)
Cash flows from financing activities:
Payments on mortgage notes payable (713) (661)
Partners' distributions (800) (1,000)
Net cash used in financing activities (1,513) (1,661)
Net decrease in cash (444) (468)
Cash and cash equivalents at beginning of period 2,291 2,759
Cash and cash equivalents at end of period $ 1,847 $ 2,291
Supplemental disclosure of cash flow information:
Cash paid for interest $ 1,943 $ 1,995
See Accompanying Notes to Consolidated Financial Statements
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization: Shelter Properties IV Limited Partnership (the "Partnership" or
"Registrant") was organized as a limited partnership under the laws of the State
of South Carolina pursuant to a Certificate and Agreement of Limited Partnership
filed August 21, 1981. The general partner responsible for management of the
Partnership's business is Shelter Realty IV Corporation, a South Carolina
corporation (the "Corporate General Partner"). The only other general partner
of the Partnership, N. Barton Tuck, Jr. is effectively prohibited by the
Partnership's partnership agreement (the "Partnership Agreement") from
participating in the management of the Partnership. The Corporate General
Partner is an indirect subsidiary of Insignia Financial Group, Inc.
("Insignia"). The directors and officers of the Corporate General Partner also
serve as executive officers of Insignia. The Partnership Agreement terminates
December 31, 2022. The Partnership commenced operations on July 22, 1982, and
completed its acquisition of apartment properties on March 31, 1983. The
Partnership operates three apartment properties located in the Southeast.
Principles of Consolidation: The financial statements include all the accounts
of the Partnership and its 99.99% owned partnership. The General Partner of the
consolidated partnership is Shelter Realty IV Corporation. Shelter Realty IV
Corporation may be removed by the Registrant; therefore, the consolidated
partnership is controlled and consolidated by the Registrant. All significant
interpartnership balances have been eliminated.
Uses of Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
Allocation of Cash Distributions: Cash distributions by the Partnership are
allocated between general and limited partners in accordance with the provisions
of the Partnership Agreement. The Partnership Agreement provides that net cash
from operations means revenue received less operating expenses paid, adjusted
for certain specified items which primarily include mortgage payments on debt,
property improvements and replacements not previously reserved, and the effects
of other adjustments to reserves including reserve amounts deemed necessary by
the Corporate General Partner. In the following notes to financial statements,
whenever net cash from operations is used, it has the aforementioned meaning.
The following is a reconciliation of the subtotal in the accompanying statements
of cash flows captioned net cash provided by operating activities to net cash
from operations, as defined in the Partnership Agreement. However, "net cash
from operations" should not be considered an alternative to net income as an
indicator of the Partnership's operating performance or to cash flows as a
measure of liquidity.
Years Ended October 31,
1997 1996
(in thousands)
Net cash provided by operating activities $ 2,165 $ 2,271
Property improvements and replacements (1,024) (1,034)
Payments on mortgage notes payable (713) (661)
Changes in reserves for net operating
liabilities 588 121
Changes in restricted escrows, net (72) (44)
Additional operating reserves (132) (148)
Net cash from operations $ 812 $ 505
The Corporate General Partner believed it to be in the best interest of the
Partnership to reserve net cash from operations of approximately $132,000 and
$148,000 at October 31, 1997 and 1996, respectively, to fund continuing capital
improvements at the three properties.
Distributions made from reserves no longer considered necessary by the general
partners are considered to be additional net cash from operations for allocation
purposes. Cash distributions of $800,000 and $1,000,000 were made during the
years ended October 31, 1997 and 1996, respectively.
The Partnership Agreement provides that 99% of distributions of net cash from
operations are allocated to the limited partners until they receive net cash
from operations for such fiscal year equal to 7% of their adjusted capital
values (as defined in the Partnership Agreement), at which point the general
partners will be allocated all net cash from operations until they have received
distributions equal to 10% of the aggregate net cash from operations distributed
to partners for such fiscal year. Thereafter, the general partners will be
allocated 10% of any distributions of remaining net cash from operations for
such fiscal year.
All distributions of distributable net proceeds (as defined in the Partnership
Agreement) from property dispositions and refinancings will be allocated to the
limited partners until each limited partner has received an amount equal to a
cumulative 7% per annum of the average of the limited partners' adjusted capital
value, less any prior distributions of net cash from operations and
distributable net proceeds, and has also received an amount equal to the limited
partners' adjusted capital value. Thereafter, the general partners receive 1%
of the selling prices of properties sold where they acted as a broker, and then
the limited partners will be allocated 85% of any remaining distributions of
distributable net proceeds and the general partners will receive 15%.
Distributions may be restricted by the requirement to deposit net operating
income (as defined in the mortgage note) into the Reserve Account until the
Reserve Account is funded in an amount equal to $1,000 per apartment unit for
each respective property.
Allocation of Profits, Gains and Losses: Profits, gains and losses of the
Partnership are allocated between general and limited partners in accordance
with the provisions of the Partnership Agreement.
Profits, not including gains from property dispositions, are allocated as if
they were distributions of net cash from operations.
Any gain from property dispositions attributable to the excess, if any, of the
indebtedness relating to a property immediately prior to the disposition of such
property over the Partnership's adjusted basis in the property shall be
allocated to each partner having a negative capital account balance, to the
extent of such negative balance. The balance of any gain shall be treated on a
cumulative basis as if it constituted an equivalent amount of distributable net
proceeds and shall be allocated to the general partners to the extent that
general partners would have received distributable net proceeds in connection
therewith; the balance shall be allocated to the limited partners. However, the
interest of the general partners will be equal to at least 1% of each gain at
all times during the existence of the Partnership.
All losses, including losses attributable to property dispositions, are
allocated 99% to the limited partners and 1% to the general partners.
Accordingly, net income as shown in the statements of operations and changes in
partners' capital for 1997 and 1996 were allocated 99% to the limited partners
and 1% to the general partners. Net income per limited partnership unit for
each such year was computed as 99% of net income divided by 49,995 units
outstanding.
Fair Value of Financial Instruments: "Statement of Financial Accounting
Standards ("SFAS") No. 107, Disclosures about Fair Value of Financial
Instruments", as amended by "SFAS No. 119, Disclosures about Derivative
Financial Instruments and Fair Value of Financial Instruments", requires
disclosure of fair value information about financial instruments, whether or not
recognized in the balance sheet, for which it is practicable to estimate fair
value. Fair value is defined in the SFAS as the amount at which the instruments
could be exchanged in a current transaction between willing parties, other than
in a forced or liquidation sale. The Partnership believes that the carrying
amount of its financial instruments (except for long term debt) approximates
their fair value due to the short term maturity of these instruments. The fair
value of the Partnership's long term debt, after discounting the scheduled loan
payments to maturity, approximates its carrying balance.
Other Reserves: The general partners may designate a portion of cash generated
from operations as "other reserves" in determining net cash from operations.
The general partners designated as other reserves an amount equal to the net
liabilities related to the operations of apartment properties during the current
fiscal year that are expected to require the use of cash during the next fiscal
year. The changes in other reserves during 1997 and 1996 were approximately
$588,000 and approximately $121,000 respectively, which amounts were determined
by considering changes in the balances of receivables and deposits, other
assets, accounts payable, tenant security deposit liabilities, accrued taxes and
other liabilities. At this time, the general partners expect to continue to
adjust other reserves based on the net change in the aforementioned account
balances.
Restricted Escrow:
Reserve Account: A general Reserve Account was established in 1992 with the
refinancing proceeds for each mortgaged property. These funds were established
to cover necessary repairs and replacements of existing improvements, debt
service, out of pocket expenses incurred for ordinary and necessary
administrative tasks, and payment of real property taxes and insurance premiums.
The Partnership is required to deposit net operating income (as defined in the
mortgage note) from each refinanced property to the respective reserve account
until they equal $1,000 per apartment unit or $1,620,000 in total. The balance
at October 31, 1997, is approximately $1,750,000, which includes interest.
Depreciation: Depreciation is provided by the straight-line method over the
estimated lives of the apartment properties and related personal property. For
Federal income tax purposes, the accelerated cost recovery method is used (1)
for real property over 15 years for additions prior to March 16, 1984, 18 years
for additions after March 15, 1984 and before May 9, 1985, and 19 years for
additions after May 8, 1985, and before January 1, 1987, and (2) for personal
property over 5 years for additions prior to January 1, 1987. As a result of the
Tax Reform Act of 1986, for additions after December 31, 1986, the modified
accelerated cost recovery method is used for depreciation of (1) real property
over 27 1/2 years and (2) personal property additions over 7 years.
Loan Costs: Loan costs of approximately $849,000 less accumulated amortization
of approximately $418,000 are included in other assets and are being amortized
on a straight-line basis over the life of the loans.
Cash and Cash Equivalents: Includes cash on hand and in banks, money market
funds and certificates of deposit with original maturities less than 90 days.
At certain times, the amount of cash deposited at a bank may exceed the limit on
insured deposits.
Tenant Security Deposits: The Partnership requires security deposits from
lessees for the duration of the lease and such deposits are included in
receivables and deposits. Deposits are refunded when the tenant vacates,
provided the tenant has not damaged its space and is current on its rental
payments.
Leases: The Partnership generally leases apartment units for twelve-month terms
or less. The Partnership recognizes income as earned on its leases. In
addition, the Corporate General Partner's policy is to offer rental concessions
during particularly slow months or in response to heavy competition from other
similar complexes in the area. Concessions are charged to expense as incurred.
Investment Properties: Investment properties consist of three apartment
complexes and are stated at cost. Acquisition fees are capitalized as a cost of
real estate. In accordance with Financial Accounting Standards Board Statement
No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of, the Partnership records impairment losses on long-
lived assets used in operations when events and circumstances indicate that the
assets might be impaired and the undiscounted cash flows estimated to be
generated by those assets are less than the carrying amounts of those assets.
Costs of apartment properties that have been permanently impaired have been
written down to appraised value. The Corporate General Partner relies on the
annual appraisals performed by the outside appraisers for the estimated value of
the Partnership's properties. There are three recognized approaches or
techniques available to the appraiser. When applicable, these approaches are
used to process the data considered significant to each to arrive at separate
value indications. In all instances the experience of the appraiser, coupled
with his objective judgment, plays a major role in arriving at the conclusions
of the indicated value from which the final estimate of value is made. The three
approaches commonly known are the cost approach, the sales comparison approach,
and the income approach. The cost approach is often not considered to be
reliable due to the lack of land sales and the significant amount of
depreciation and, therefore, is often not presented. Upon receipt of the
appraisals, any property which is stated on the books of the Partnership above
the estimated value given in the appraisal, is written down to the estimated
value given by the appraiser. The appraiser assumes a stabilized occupancy at
the time of the appraisal and, therefore, any impairment of value is considered
to be permanent by the Corporate General Partner. No adjustments for the
impairment of value were recorded in the years ended October 31, 1997 or 1996.
Advertising: The Partnership expenses the costs of advertising as incurred.
Advertising expense, included in operating expenses, was approximately $140,000
and $105,000 for the years ended October 31, 1997 and 1996, respectively.
Reclassification: Certain reclassifications have been made to the 1996
information to conform to the 1997 presentation.
NOTE B - MORTGAGE NOTES PAYABLE
The principal terms of mortgage notes payable are as follows (in thousands):
Principal Monthly Principal
Balance At Payment Stated Balance
October 31, Including Interest Maturity Due At
Property 1997 Interest Rate Date Maturity
Baymeadows
1st Mortgage $14,179 $ 126 7.60% 11/15/02 $11,554
2nd Mortgage 493 3 7.60% 11/15/02 493
Quail Run
1st Mortgage 5,718 51 7.60% 11/15/02 4,659
2nd Mortgage 199 1 7.60% 11/15/02 199
Countrywood Village
1st Mortgage 4,430 39 7.60% 11/15/02 3,610
2nd Mortgage 154 1 7.60% 11/15/02 154
25,173 $ 221
Less unamortized
discounts (1,106)
$24,067
The Partnership exercised interest rate buy-down options for the three
properties when the debt was refinanced, reducing the stated rate from 8.76% to
7.6%. The fee for the interest rate reduction amounted to approximately
$1,964,000 and is being amortized as a loan discount on the interest method over
the life of the loans. The unamortized discount fee is reflected as a reduction
of the mortgage notes payable and increases the effective rate of the debt to
8.76%.
The mortgage notes payable are non-recourse and are secured by pledge of the
respective apartment properties and by pledge of revenues from the respective
apartment properties. The notes cannot be prepaid prior to November 15, 1997,
thereafter, they require prepayment penalties if repaid prior to maturity and
prohibit resale of the property subject to existing indebtedness.
The estimated fair values of the Partnership's aggregate debt is approximately
$25,173,000. This estimate is not necessarily indicative of the amounts the
Partnership may pay in actual market transactions.
Scheduled principal payments of mortgage notes payable subsequent to October 31,
1997, are as follows (in thousands):
1998 $ 770
1999 830
2000 896
2001 966
2002 21,711
$25,173
NOTE C - INCOME TAXES
The Partnership has received a ruling from the Internal Revenue Service that it
will be classified as a partnership for Federal income tax purposes.
Accordingly, no provision for income taxes is made in the financial statements
of the Partnership. Taxable income or loss of the Partnership is reported in
the income tax returns of its partners.
The following is a reconciliation of reported net income (loss) and Federal
taxable income (loss) (in thousands, except per unit data):
1997 1996
Net income as reported $ 507 $ 246
Add (deduct):
Amortization of present value discounts (6) (14)
Depreciation differences (1,160) (1,486)
Change in prepaid rental 203 56
Accrued expenses (100) 14
Other 40 33
Federal taxable loss $ (516) $(1,151)
Federal taxable loss per limited
partnership unit $(10.21) $(22.79)
The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities (in thousands):
Net assets as reported $ 7,779
Land and buildings 9,256
Accumulated depreciation (29,002)
Syndication 6,293
Other 315
Net liabilities - tax basis $ (5,359)
NOTE D - TRANSACTIONS WITH AFFILIATED PARTIES
The Partnership has no employees and is dependent on the Corporate General
Partner and its affiliates for the management and administration of all
partnership activities. The Partnership Agreement provides for payments to
affiliates for services and as reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership. Balances and other transactions with
affiliates of Insignia Financial Group, Inc. in 1997 and 1996 are (in
thousands):
For The Years Ended
October 31,
1997 1996
Property management fees $ 558 $ 540
Reimbursement for services of affiliates 223 196
For the period of November 1, 1995 to August 31, 1997, the Partnership insured
its properties under a master policy through an agency and insurer unaffiliated
with the Corporate General Partner. An affiliate of the Corporate 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 current year's master policy. The agent assumed the financial
obligations to the affiliate of the Corporate General Partner who received
payments on these obligations from the agent. The amount of the Partnership's
insurance premiums which accrued to the benefit of the affiliate of the
Corporate General Partner by virtue of the agent's obligations was not
significant.
NOTE E - REAL ESTATE AND ACCUMULATED DEPRECIATION
Investment Properties
(in thousands)
<TABLE>
<CAPTION>
Initial Cost
To Partnership
Buildings Cost
and Related Capitalized
Personal Subsequent to
Description Encumbrances Land Property Acquisition
<S> <C> <C> <C> <C>
Baymeadows
Jacksonville, Florida $14,672 $ 1,884 $26,916 $ 4,452
Quail Run
Columbia, South Carolina 5,917 875 10,642 1,778
Countrywood Village
Raleigh, North Carolina 4,584 683 10,711 2,055
Totals $25,173 $ 3,442 $48,269 $ 8,285
</TABLE>
<TABLE>
<CAPTION>
(in thousands)
Gross Amount At Which Carried
At October 31, 1997
Buildings
And Related
Personal Accumulated Date of Date Depreciable
Description Land Property Total Depreciation Construction Acquired Life-Years
<S> <C> <C> <C> <C> <C> <C> <C>
Baymeadows
Jacksonville, Florida $ 1,884 $31,368 $33,252 $17,856 1969-1975 09/30/82 5-36
Quail Run
Columbia, South Carolina 875 12,420 13,295 6,485 1970-1973 01/03/83 5-34
Countrywood Village
Raleigh, North Carolina 683 12,766 13,449 7,928 1973-1974 03/31/83 5-30
Totals $ 3,442 $56,554 $59,996 $32,269
</TABLE>
Reconciliation of "Real Estate and Accumulated Depreciation":
<TABLE>
<CAPTION>
Years Ended October 31,
1997 1996
(in thousands)
<S> <C> <C>
Real Estate
Balance at beginning of year $59,038 $58,092
Property improvements 1,024 1,034
Disposals of property (66) (88)
Balance at End of Year $59,996 $59,038
Accumulated Depreciation
Balance at beginning of year $30,365 $28,574
Additions charged to expense 1,931 1,846
Disposals of property (27) (55)
Balance at end of year $32,269 $30,365
</TABLE>
The aggregate cost of the real estate for Federal income tax purposes at October
31, 1997 and 1996 is approximately $69,252,000 and approximately $68,228,000,
respectively. The accumulated depreciation taken for Federal income
tax purposes at October 31, 1997 and 1996 is approximately $61,270,000 and
approximately $58,179,000, respectively.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS,
COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT
The Registrant has no officers or directors. The Individual and Corporate
General Partners are as follows:
Individual General Partner - N. Barton Tuck, Jr., age 59, is the Individual
General Partner of the Registrant. Mr. Tuck is Chairman of GolfSouth
Management, Inc. Until August 1990, he served as Chairman and Chief Executive
Officer of U.S. Shelter Corporation ("Shelter"), the former parent of AmReal
Corporation (parent of the Corporate General Partner of the Partnership). For
six years prior to 1966, Mr. Tuck was employed in Greenville, South Carolina by
the certified public accounting firm of S.D. Leidesdorf & Company. From 1966 to
1970, he was a registered representative with the investment banking firm of
Harris Upham & Co., Inc. in Greenville, South Carolina. Since 1970, Mr. Tuck has
been engaged in arranging equity investments for individuals and partnerships.
Mr. Tuck is a graduate of the University of North Carolina. Mr. Tuck has
delegated to the Corporate General Partner all of his authority, as a general
partner of the Partnership, to manage and control the Partnership and its
business and affairs.
Corporate General Partner - The names and ages of, as well as the positions and
offices held by, the executive officers and directors of Shelter Realty IV
Corporation ("Corporation") are set forth below. There are no family
relationships between or among any officers or directors.
Name Age Position
William H. Jarrard, Jr. 51 President and Director
Ronald Uretta 41 Vice President, Treasurer
and Secretary
Robert D. Long, Jr. 30 Vice President
Kelley M. Buechler 40 Assistant Secretary
Mr. Jarrard, who had previously served as Vice President, became President in
August 1994.
William H. Jarrard, Jr. has acted as Senior Vice President of Insignia
Properties Trust ("IPT"), parent of the Corporation, since May 1997. Mr.
Jarrard previously acted as Managing Director - Partnership Administration of
Insignia from January 1991 through September 1997 and served as Managing
Director - Partnership Administration and Asset Management from July 1994 until
January 1996.
Ronald Uretta has been Insignia's Treasurer since January 1992 and became
Secretary of the Corporate General Partner effective January 28, 1998. Since
August 1996, he has also served as Chief Operating Officer. He also served as
Secretary from January 1992 to June 1994 and as Chief Financial Officer from
January 1992 to August 1996. Since September 1990, Mr. Uretta has also served as
the Chief Financial Officer and controller of MAG.
Robert D. Long, Jr. became Vice President of the Corporation on January 2, 1998.
Mr. Long joined Metropolitan Asset Enhancement, L.P. ("MAE"), an affiliate of
Insignia, in September 1993. Since 1994 he has acted as Vice President/Chief
Accounting Officer of the MAE subsidiaries. Mr. Long was an accountant for
Insignia until joining MAE in 1993. Prior to joining Insignia, Mr. Long was an
auditor for the State of Tennessee and was associated with the accounting firm
of Harsman Lewis and Associates.
Kelley M. Buechler is Assistant Secretary of the Corporate General Partner and
Assistant Secretary of Insignia since 1991. During the five years prior to
joining Insignia in 1991, she served in similar capacities with U.S. Shelter.
ITEM 10. EXECUTIVE COMPENSATION
Neither the Individual General Partner nor any of the directors and officers of
the Corporate General Partner received any remuneration from the Registrant.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Except as noted below, no person or entity was known by the Registrant to be the
beneficial owner of more than 5% of the Limited Partnership Units of the
Registrant as of October 31, 1997.
Number
Entity of Units Percentage
Insignia Financial Group, Inc. 4,263 8.53%
Market Ventures, L.L.C. 11,512 23.03%
No director or officer of the Corporate General Partner owns any Units. The
Corporate General Partner owns 100 Units as required by the terms of the
partnership agreement governing the Partnership.
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Individual General Partner and the Corporate General Partner received cash
distributions of $8,000 and $10,000 from operations as General Partners during
the fiscal year ended October 31, 1997 and 1996, respectively. For a
description of the share of cash distributions from operations, if any, to which
the general partners are entitled, reference is made to the material contained
in the Prospectus under the heading "PROFITS AND LOSSES AND CASH DISTRIBUTIONS."
The Registrant has a property management agreement with Insignia Management
Group, L.P. pursuant to which Insignia Management Group, L.P. has assumed direct
responsibility for day-to-day management of the Partnership's properties. This
service includes the supervision of leasing, rent collection, maintenance,
budgeting, employment of personnel, payment of operating expenses, etc.
Insignia Management Group, L.P. receives a property management fee equal to 5%
of apartment revenues. During the fiscal year ended October 31, 1997, Insignia
Management Group, L.P. received approximately $558,000 in fees for property
management.
ITEM 13. 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 filed in the fourth quarter of fiscal year 1997:
None.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SHELTER PROPERTIES IV LIMITED PARTNERSHIP
By: Shelter Realty IV Corporation
Corporate General Partner
By: /s/William H. Jarrard, Jr.
William H. Jarrard, Jr.
President
Date: January 28, 1998
In accordance with the Exchange Act, this report has been signed below by
the following persons on behalf of the Registrant and in the capacities and on
the date indicated.
/s/William H. Jarrard, Jr. Date: January 28, 1998
William H. Jarrard, Jr.
President and Director
/s/Ronald Uretta Date: January 28, 1998
Ronald Uretta
Treasurer
(Principal Financial Officer
and Principal Accounting Officer)
EXHIBIT INDEX
EXHIBIT
3 See Exhibit 4(a)
4 (a) Amended and Restated Certificate and Agreement of Limited Partnership
[included as Exhibit A to the Prospectus of Registrant dated June 8,
1982 contained in Amendment No. 1 to Registration Statement No. 2-
77217, of Registrant filed June 8, 1982 (the "Prospectus") and
incorporated herein by reference].
(b) Subscription Agreement and Signature Page [included as Exhibit 8 to
the Prospectus and incorporated herein by reference].
10(I) Contracts related to acquisition of properties:
(a) Real Estate Sales Agreement dated May 5, 1982, First Modification to
Real Estate Sales Agreement dated June 18, 1982 (filed as Exhibit
12(B) to Amendment No. 1 to Registration Statement No. 2-77217 of
Registrant filed June 8, 1982 and incorporated herein by reference)
and Second Modification to Real Estate Sales Agreement dated September
30, 1982 between Baymeadows Associates and U.S. Shelter Corporation to
purchase Baymeadows Apartments (Filed as Exhibit 10(a) to Form 10-K of
Registrant dated January 26, 1983 and incorporated herein by
reference).
(b) Agreement for Purchase and Sale dated May 14, 1982 between Lincoln
Spartanburg Corners Associates and U.S. Shelter Corporation to
purchase The Corners Apartments. (Filed as Exhibit 12(A) to Amendment
No. 1 to Registration Statement, No. 2-77217, of Registrant filed June
8, 1982 and incorporated herein by reference).
(c) Real Estate Purchase Agreement dated October 11, 1982 and Second
Addendum to Real Estate Purchase Agreement dated December 10, 1982
between Rushcreek Village Apartments, Ltd. and U.S. Shelter
Corporation to purchase Rushcreek Village Apartments. (Filed as
Exhibit 10(a) to Form 8-K of Registrant dated December 15, 1982 and
incorporated herein by reference).
(d) Real Estate Purchase Agreement dated December 3, 1982 between Quail
Run Apartments, a Limited Partnership and Percival Partnership and
U.S. Shelter Corporation to purchase Quail Run Apartments. (Filed as
Exhibit 10(b) to Form 8-K of Registrant dated December 15, 1982 and
incorporated herein by reference).
(e) Real Estate Purchase Agreement dated March 13, 1983 between Europco
Management Company of America, Inc. and U.S. Shelter Corporation to
purchase Countrywood Village Apartments. (Filed as Exhibit 10 to Form
8-K of Registrant dated March 31, 1983 and incorporated herein by
reference).
(II) Form of Management Agreement with U.S. Shelter Corporation
subsequently assigned to Shelter Management Group, L.P. (now known as
Insignia Management Group, L.P.) [Filed with Amendment No. 1 of
Registration Statement No. 2-77217 of Registrant filed June 8, 1982
and incorporated herein by reference].
(III) Contracts related to refinancing of debt:
(a) First Deeds of Trust and Security Agreements dated October 28, 1992
between Shelter Properties IV Limited Partnership and Joseph Philip
Forte (Trustee) and First Commonwealth Realty Credit Corporation, a
Virginia Corporation, securing the following properties: Baymeadows,
Quail Run and Countrywood Village.*
(b) Second Deeds of Trust and Security Agreements dated October 28, 1992
between Shelter Properties IV Limited Partnership and Joseph Philip
Forte (Trustee) and First Commonwealth Realty Credit Corporation, a
Virginia Corporation, securing the following properties: Baymeadows,
Quail Run and Countrywood Village.*
(c) First Assignments of Leases and Rents dated October 28, 1992 between
Shelter Properties IV Limited Partnership and Joseph Philip Forte
(Trustee) and First Commonwealth Realty Credit Corporation, a Virginia
Corporation, securing the following properties: Baymeadows, Quail Run
and Countrywood Village.*
(d) Second Assignments of Leases and Rents dated October 28, 1992 between
Shelter Properties IV Limited Partnership and Joseph Philip Forte
(Trustee) and First Commonwealth Realty Credit Corporation, a Virginia
Corporation, securing the following properties: Baymeadows, Quail Run
and Countrywood Village. *
(e) First Deeds of Trust Notes dated October 28, 1992 between Shelter
Properties IV Limited Partnership and First Commonwealth Realty Credit
Corporation, relating to the following properties: Baymeadows, Quail
Run and Countrywood Village.
(f) Second Deeds of Trust Notes dated October 28, 1992 between Shelter
Properties IV Limited Partnership and First Commonwealth Realty Credit
Corporation, relating to the following properties: Baymeadows, Quail
Run and Countrywood Village.*
*Filed as Exhibits 10 (iii) a through 10 (iii) f, respectively, to
Form 10-KSB - Annual or Transitional Report filed January 29, 1993 and
incorporated herein by reference.
22 Subsidiaries of the Registrant.
27 Financial Data Schedule.
28 (a) Prospectus of Registrant dated June 8, 1982 (included in Registration
Statement No. 2-77217 of Registrant and incorporated herein by
reference).
(b) Agreement of Limited Partnership for Quail Run IV Limited Partnership
between Shelter IV GP Limited Partnership and Shelter Properties IV
Limited Partnership entered into on February 12, 1992. (Filed as
Exhibit 28 to Form 10-QSB - Quarterly or Transitional Report filed
June 11, 1993 and incorporated herein by reference.)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Shelter
Properties IV Limited Partnership 1997 Year-End 10-KSB and is qualified in its
entirety by reference to such 10-KSB filing.
</LEGEND>
<CIK> 0000702174
<NAME> SHELTER PROPERTIES IV LIMITED PARTNERSHIP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<CASH> 1,847
<SECURITIES> 0
<RECEIVABLES> 1,229
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 59,996
<DEPRECIATION> (32,269)
<TOTAL-ASSETS> 33,085
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 24,067
0
0
<COMMON> 0
<OTHER-SE> 7,779
<TOTAL-LIABILITY-AND-EQUITY> 33,085
<SALES> 0
<TOTAL-REVENUES> 11,270
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 10,763
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,220
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 507
<EPS-PRIMARY> 10.04<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
