UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to
Commission file number 0-11987
Krupp Realty Limited Partnership-IV
(Exact name of registrant as specified in its charter)
Massachusetts 04-2772783
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
470 Atlantic Avenue, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (617) 423-2233
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Units of Investor Limited Partner Interest
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
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not 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-K or any
amendment to this Form 10-K. [ ].
Aggregate market value of voting securities held by non-affiliates: Not
applicable, since securities are non-voting.
Documents incorporated by reference: Part IV, Item 14
The exhibit index is located on pages 9-12.
<PAGE>
PART I
ITEM 1. BUSINESS
Krupp Realty Limited Partnership-IV ("KRLP-IV") was formed on December
1, 1982 by filing a Certificate of Limited Partnership in The Commonwealth
of Massachusetts. The Krupp Corporation, a Massachusetts corporation, and
The Krupp Company Limited Partnership-II, a Massachusetts limited
partnership, are the General Partners of KRLP-IV. KRLP-IV has also issued
all of the Original Limited Partner Interests to The Krupp Company Limited
Partnership-II. On January 18, 1983, KRLP-IV commenced the offering of up
to 30,000 Units of Investor Limited Partner Interests (the "Units"). As
of March 31, 1983, KRLP-IV had received subscriptions for all 30,000 Units
at $1,000 per Unit and therefore, the public offering was successfully
completed on that date. For details, see Note A to Consolidated Financial
Statements included in Item 8 (Appendix A) of this report.
The primary business of KRLP-IV is to acquire, operate and ultimately
dispose of real estate. KRLP-IV initially acquired six multi-family
apartment complexes (Copper Creek, Walden Pond (formerly Westbridge),
Indian Run, Fenland Field, Pavillion and Tilbury Woods Apartments), a
retail center (Lakeview Plaza) and invested in a joint venture in Lakeview
Towers with an affiliated limited partnership (the "Joint Venture").
KRLP-IV considers itself to be engaged only in the industry segment of
investment in real estate.
KRLP-IV has sold Lakeview Plaza and Tilbury Woods Apartments.
Additionally, KRLP-IV received a terminating capital distribution from the
Joint Venture with proceeds from the sale of Lakeview Towers. In 1990,
the General Partners formed three limited partnerships: Pavillion
Partners, Ltd., Copper Creek Partners, Ltd. and Westbridge Partners, Ltd.
At the same time, the General Partners transferred ownership of Pavillion
Apartments to Pavillion Partners, Ltd., Copper Creek Apartments to Copper
Creek Partners, Ltd., and Walden Pond Apartments to Westbridge Partners,
Ltd. in exchange for a 99% limited partner interest in the new entities.
Westcop Corporation, an affiliate of KRLP-IV, contributed a total of
$11,216 in cash in exchange for a 1% General Partner interest. KRLP-IV,
Pavillion Partners, Ltd., Copper Creek Partners, Ltd. and Westbridge
Partners, Ltd., are collectively known as Krupp Realty Limited
Partnership-IV and Subsidiaries (collectively referred to herein as the
"Partnership"). The Partnership endeavored to renegotiate the debt on
these properties, the negotiations were unsuccessful and these
partnerships subsequently petitioned for relief under federal bankruptcy
laws.
Pavillion emerged from its bankruptcy proceedings with a restructuring
of its indebtedness during 1991. In 1992, the bankruptcy court approved
the plans of reorganization for Copper Creek Partners, Ltd. and Westbridge
Partners, Ltd. Under their respective plans of reorganization, the Court
allowed the lender to foreclose on Copper Creek Apartments and the
Partnership received a restructuring of Walden Pond Apartments
indebtedness (see Note D to Consolidated Financial Statements included in
Item 8 (Appendix A)).
The Partnership's real estate investments are subject to some seasonal
fluctuations resulting from changes in utility consumption and seasonal
maintenance expenditures. However, the future performance of the
Partnership <PAGE>
will depend upon factors which cannot be predicted. Such factors include
general economic and real estate market conditions, both on a national
basis and in those areas where the Partnership's real estate investments
are located, the availability and cost of borrowed funds, real estate tax
rates, operating expenses, energy costs, government regulations and
federal and state income tax laws. The requirements for compliance with
federal, state and local regulations to date have not had an adverse
effect on the Partnership's operations, and no adverse effect therefrom is
anticipated in the future.
The Partnership's investments in real estate are also subject to such
risks as (i) competition from existing and future projects held by other
owners in the locations of the Partnership's properties, (ii) possible
reduction in rental income due to an inability to maintain high occupancy
levels, (iii) possible adverse changes in mortgage interest rates, (iv)
possible adverse changes in general economic and local conditions, such as
competitive over-building, increases in unemployment, or adverse changes
in real estate zoning laws, (v) the possible future adoption of rent
control legislation which would not permit the full amount of increased
costs to be passed on to tenants in the form of rent increases, and (vi)
other circumstances over which the Partnership may have little or no
control.
As of December 31, 1995, there were 38 full and part-time on-site
personnel employed by the Partnership.
ITEM 2. PROPERTIES
As of December 31, 1995, the Partnership had an aggregate of 1,256
apartment units.
A summary of the Partnership's multi-family real estate investments is
presented below.
<TABLE>
<CAPTION>
Average Occupancy
For the Years Ended
Year of December 31,
Description Acquisition Total Units 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C> <C>
Fenland Field Apartments 1983 234 95% 94% 90% 91% 90%
Columbia, Maryland
Indian Run Apartments 1983 256 93% 95% 96% 95% 92%
Abilene, Texas
Pavillion Apartments 1983 350 94% 93% 90% 90% 89%
Garland, Texas
Walden Pond Apartments 1983 416 93% 97% 92% 82% 90%
Houston, Texas
1,256 Units
</TABLE>
ITEM 3. LEGAL PROCEEDINGS
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
<PAGE>
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
The transfer of Units of Limited Partner Interest is subject to certain
limitations contained in the Partnership Agreement. There is no public
market for the Units and it is not anticipated that any such public market
will develop.
The number of Investor Limited Partners as of December 31, 1995 was
approximately 2,000.
The Partnership made the following distributions to its Partners during
the years ended December 31, 1995 and 1994:
<TABLE>
<CAPTION>
Year Ended December 31,
1995 1994
Amount Per Unit Amount Per Unit
Limited Partners:
Investor Limited Partner
Interest (30,000 Units
<S> <C> <C> <C> <C>
outstanding) $839,859 $28.00 $140,003 $4.67
Original Limited Partner 35,362 5,895
General Partners 8,841 1,474
$884,062 $147,372
</TABLE>
The Partnership issued special distributions to the General Partners and
Investor Limited Partners during the fourth quarter of 1992 with a portion
of the funds received from the sale of the Lakeview Joint Venture. The
Partnership made no distributions during the years ended December 31, 1991
and 1993. Due to improvements in the operations of the properties and the
availability of sufficient cash flow, the General Partners reinstated
distributions in August, 1994. These distributions are expected to
continue in 1996.
ITEM 6. SELECTED FINANCIAL DATA
The following table sets forth selected financial information regarding
The Partnership's financial position and operating results. This
information should be read in conjunction with Management's Discussion and
Analysis of Financial Condition and Results of Operations and the
Financial Statements and Supplementary Data, which are included in Items 7
and 8 of this report, respectively.
<PAGE>
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Total revenue $ 7,108,711 $ 6,810,441 $ 6,228,685 $6,203,999 $ 8,365,185
Loss before gain
on sale of
property and
extraordinary
items (21,628) (488,936) (1,468,566) (1,935,963) (3,162,518)
Gain on sale of
properties - - - 3,875,915 4,225,136
Extraordinary
items - - - 2,875,665 498,476
Net income (loss) (21,628) (488,936) (1,468,566) 4,815,617 1,561,094
Net income (loss)
allocated to:
Investor Limited
Partners:
Income (loss)
before
extraordinary
items (20,547) (464,489) (1,395,137) 1,997,991 (530,370)
Per Unit (.68) (15.48) (46.50) 66.60 (17.68)
Extraordinary
items - - - 2,820,848 473,552
Per Unit - - - 94.03 15.79
Net income
(loss) (20,547) (464,489) (1,395,137) 4,818,839 (56,818)
Per Unit (.68) (15.48) (46.50) 160.63 (1.89)
Original Limited
Partner:
Loss before
extraordinary
items (865) (19,558) (58,743) (77,438) (22,331)
Extraordinary
items - - - 26,060 19,939
Net loss (865) (19,558) (58,743) (51,378) (2,392)
General Partners:
Income (loss)
before
extraordinary
items (216) (4,889) (14,686) 19,399 1,615,319
Extraordinary
items - - - 28,757 4,985
Net income
(loss) (216) (4,889) (14,686) 48,156 1,620,304
</TABLE>
ITEM 6. SELECTED FINANCIAL DATA, Continued
<PAGE>
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
Total assets at
<S> <C> <C> <C> <C> <C>
December 31 $20,859,084 $22,305,143 $24,218,655 $26,040,373 $35,194,993
Long-term
obligations at
December 31 20,193,607 20,939,499 22,180,186 22,799,284 31,983,670
Distributions to:
Investor Limited
Partners: 839,859 140,003 - 2,000,000 -
Per Unit 28.00 4.67 - 66.67 -
Original Limited
Partner 35,362 5,895 - - -
General
Partners 8,841 1,474 - 20,202 -
</TABLE>
Operating results for the years 1991 through 1992 are not comparable to
1993, 1994 and 1995 because:
1. Lakeview Towers was sold on August 28, 1992, Copper Creek was
foreclosed on March 3, 1992 and Walden Pond's debt was
restructured effective February 28, 1992.
2. Tilbury Woods was sold on August 19, 1991.
The years 1993 through 1995 are not necessarily indicative of the
Partnership's future operations.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership refinanced Pavillion and Indian Run at lower interest
rates during 1994. As a result of the lower rates, the reduced mortgage
payments have provided additional liquidity to the Partnership. This
additional liquidity assisted the Partnership in funding $427,000 in capital
improvements to the properties in 1995, and anticipated capital improvements
of $550,000 for 1996. These improvements consist of continued interior
enhancements which include the replacement of appliances, carpeting and
vinyl flooring.
Due to improvements in the operations of the properties and reduced debt
service, the Partnership had sufficient cash flow in 1994 to reinstate
distributions at a rate of $4.67 per Unit. In 1995, the distribution rate
increased to $28.00 per Unit. In 1996, the distribution rate is scheduled
to increase at a rate of $37.33 per Unit.
The Partnership's ability to generate cash adequate to meet its needs is
dependent primarily upon the operations of its remaining real estate
investments. Such ability would also be impacted by the future availability
of bank borrowings, and upon the future refinancing and sale of the Partne
<PAGE>
rship's real estate investments and the collection of any mortgage
receivables which may result from such sales. These sources of liquidity
will be used by the Partnership for payment of expenses related to real
estate operations, capital improvements, refinancings and expenses. Cash
Flow, if any, as calculated under Section 8.2(a) of the Partnership
Agreement, will then be available for distribution to the partners.
Cash Flow
Shown below is a calculation of Cash Flow as defined by Section 8.2(a) of
the Partnership Agreement for the year ended December 31, 1995. The General
Partners provide certain of the information below to meet requirements of
the Partnership Agreement and because they believe that it is an appropriate
supplemental measure of operating performance. However, Cash Flow should
not be considered by the reader as a substitute to net income (loss), as an
indicator of the Partnership's operating performance or to cash flows as a
measure of liquidity.
<TABLE>
<CAPTION>
Rounded to $1,000
<S> <C>
Loss for tax purposes $ (342,000)
Items not requiring (requiring)
the use of operating funds:
Tax basis depreciation and amortization 1,917,000
Tax basis principal payments on mortgage (219,000)
Expenditures for capital improvements (427,000)
Amounts released from working capital reserves 103,000
Cash Flow $1,032,000
Operations
</TABLE>
1995 versus 1994
Cash flow, as defined by Section 8.2(a) of the Partnership Agreement,
increased due to a 4% increase in rental revenues and a decrease in interest
expense of $168,000, due to the 1994 refinancings of Pavillion and Indian
Run. The refinancings of Pavillion and Indian Run have provided additional
liquidity to the Partnership which has assisted the funding of additional
capital improvements in 1995 and allowed the Partnership to command higher
rental rates in the properties' prospective markets.
Other income increased due to an increase in interest income on cash and
cash equivalents as a result of higher average cash balances.
The Partnership recognized a reduction in operating expense due to
management's efforts to reduce reimbursable costs. Real estate tax expense
increased due to an increase in the assessed value of Walden Pond.
1994 versus 1993
Cash flow, as defined by Section 8.2(a) of the Partnership Agreement,
increased significantly. Rental revenue increased by 10% primarily due to
increased <PAGE>
occupancy rates at Fenland, Pavillion and Walden Pond and rental rate
increases at all the Partnership's properties. The completion of
renovations in 1993 allowed the Partnership to command higher rental rates
and improve occupancy in the properties' prospective markets.
As a result of the extensive rehabilitation programs at Walden Pond and
Pavillion completed in 1993, the Partnership experienced a 42% reduction in
maintenance costs in 1994. The completion of the rehabilitation programs
also resulted in an increase in depreciation expense for 1994.
In 1994, the Partnership successfully completed the refinancings of
Pavillion and Indian Run. Both were refinanced at lower interest rates.
The reduced debt service payments will provide additional liquidity in
future years.
General
In accordance with Financial Accounting Standards No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of", which is effective for fiscal years beginning after December 15, 1995,
the Partnership has implemented policies and practices for assessing
impairment of its real estate assets.
The investments in properties are carried at cost less accumulated
depreciation unless the General Partners believe there is a significant
impairment in value, in which case a provision to write down investments in
properties to fair value will be charged against income. At this time, the
General Partners do not believe that any assets of the Partnership are
significantly impaired.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See Appendix A to this Report.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Partnership has no directors or executive officers. Information as to
the directors and executive officers of The Krupp Corporation, which is a
General Partner of both KRLP-IV and The Krupp Company Limited Partnership-
II, the other General Partner of KRLP-IV, is as follows:
<PAGE>
Position with
Name and Age The Krupp Corporation
Douglas Krupp (49) Co-Chairman of the Board
George Krupp (51) Co-Chairman of the Board
Laurence Gerber (39) President
Robert A. Barrows (38) Senior Vice President and Corporate Controller
Douglas Krupp is Co-Chairman and Co-Founder of The Berkshire Group.
Established in 1969 as the Krupp Companies, this real estate-based firm
expanded over the years within its areas of expertise including investment
program sponsorship, property and asset management, mortgage banking,
healthcare facility ownership and the management of the Company. Today, The
Berkshire Group is an integrated real estate, mortgage and healthcare
company which is headquartered in Boston with regional offices throughout
the country. A staff of 3,400 are responsible for the more than $4 billion
under management for institutional and individual clients. Mr. Krupp is a
graduate of Bryant College. In 1989 he received an honorary Doctor of
Science in Business Administration from this institution and was elected
trustee in 1990. Mr. Krupp is Chairman of the Board and a Director of
Berkshire Realty Company, Inc. (NYSE-BRI). George Krupp is Douglas Krupp's
brother.
George Krupp is the Co-Chairman and Co-Founder of The Berkshire Group.
Established in 1969 as the Krupp Companies, this real estate-based firm
expanded over the years within its areas of expertise including investment
program sponsorship, property and asset management, mortgage banking and
healthcare facility ownership. Today, The Berkshire Group is an integrated
real estate, mortgage and healthcare company which is headquartered in
Boston with regional offices throughout the country. A staff of 3,400 are
responsible for more than $4 billion under management for institutional and
individual clients. Mr. Krupp attended the University of Pennsylvania and
Harvard University. Mr. Krupp also serves as Chairman of the Board and
Trustee of Krupp Government Income Trust and as Chairman of the Board and
Trustee of Krupp Government Income Trust II.
Laurence Gerber is the President and Chief Executive Officer of The
Berkshire Group. Prior to becoming President and Chief Executive Officer in
1991, Mr. Gerber held various positions with The Berkshire Group which
included overall responsibility at various times for: strategic planning
and product development, real estate acquisitions, corporate finance,
mortgage banking, syndication and marketing. Before joining The Berkshire
Group in 1984, he was a management consultant with Bain & Company, a
national consulting firm headquartered in Boston. Prior to that, he was a
senior tax accountant with Arthur Andersen & Co., an international
accounting and consulting firm. Mr. Gerber has a B.S. degree in Economics
from the University of Pennsylvania, Wharton School and an M.B.A. degree
with high distinction from Harvard Business School. He is a Certified
Public Accountant. Mr. Gerber also serves as President and Director of
Berkshire Realty Company, Inc. (NYSE-BRI) and President and Trustee of
Krupp Government Income Trust and President and Trustee of Krupp Government
Income Trust II.
<PAGE>
Robert A. Barrows is the Corporate Controller of The Berkshire Group.
Mr. Barrows has held several positions within The Berkshire Group since
joining the company in 1983 and is currently responsible for accounting and
financial reporting, treasury, tax, payroll and office administrative
activities. Prior to joining The Berkshire Group, he was an audit
supervisor for Coopers & Lybrand L.L.P. in Boston. He received a B.S.
degree from Boston College and is a Certified Public Accountant.
ITEM 11. EXECUTIVE COMPENSATION
The Partnership has no directors or executive officers.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of December 31, 1995, no person of record owned or was known by the
General Partners to own beneficially more than 5% of KRLP-IV's 30,000
outstanding Units. On that date, the General Partners or their affiliates
owned 100 units (.3% of the total outstanding) of KRLP-IV, in addition
to the General Partner and Original Limited Partner Interests.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Partnership does not have any directors, executive officers or
nominees for election as director. Additionally, as of December 31,
1995, no person of record owned or was known by the General Partners to
own beneficially more than 5% of the Partnership's outstanding Units.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) 1. Consolidated Financial Statements - see Index to Consolidated
Financial Statements and Consolidated Financial Statement
Schedule included under Item 8, Appendix A, on page F-2 to this
report.
2. Consolidated Financial Statement Schedule - see Index to
Consolidated Financial Statements and Consolidated Financial
Statement Schedule included under Item 8, Appendix A, on page
F-2 to this report. All other schedules are omitted as they are
not applicable or not required or the information is provided in
the Consolidated Financial Statements or the Notes thereto.
(b) Exhibits:
Number and Description
Under Regulation S-K
The following reflects all applicable Exhibits required under
Item
601 of Regulation S-K:
(4) Instruments defining the rights of security holders
including indentures:
(4.1) Amended Agreement of Limited Partnership dated
as of January 12, 1983 [Exhibit A to Prospectus
<PAGE>
included in Registrant's Registration Statement
on Form S-11 (File 2-80650)].*
(4.2) Amended Certificate of Limited Partnership
filed with the Massachusetts Secretary of State
on March 31, 1983 [Exhibit 4.2 to
Registrant's Annual Report on Form 10-K dated
December 31, 1983 (File No. 2-80650)].*
(10) Material Contracts
Fenland Field Apartments
(10.1) Management Agreement dated December 19, 1986
between Krupp Realty Limited Partnership-IV, as
Owner, and Krupp Asset Management Company, now
known as Berkshire Property Management ("BPM"),
as Agent. [Exhibit 10.3 to Registrant's Annual
Report on Form 10-K dated December 31, 1986
(File No. 0-11987)].*
(10.2) Modification and Restatement of Promissory Note
dated April 28, 1993 between Krupp Realty
Limited Partnership-IV and John Hancock Mutual
Life Insurance Company [Exhibit 10.2 to
Registrant's Annual Report on Form 10-K dated
December 31, 1993 (File No. 0-11987)].*
(10.3) Modification and Restatement of Indemnity Deed
of Trust and Security Agreement dated April 28,
1993 between Krupp Realty Limited Partnership-
IV and John Hancock Mutual Life Insurance
Company [Exhibit 10.3 to Registrant's Annual
Report on Form 10-K dated December 31, 1993
(File No. 0-11987)].*
Indian Run Apartments
(10.4) Management Agreement dated June 2, 1983 between
Krupp Realty Limited Partnership-IV, as Owner,
and Krupp Asset Management Company, now known
as Berkshire Property Management ("BPM"), as
Agent [Exhibit 10.16 to Registrant's Annual
Report on Form 10-K dated December 31, 1983
(File No. 2-80650)].*
(10.5) Multifamily Note, dated October 25, 1994
between Bank United of Texas FSB and Krupp
Realty Limited Partnership-IV, a Massachusetts
limited partnership. (File No. 0-11987).*
(10.6) Multifamily Deed of Trust, dated October 25,
1994 by Krupp Realty Limited Partnership-IV, a
Massachusetts limited partnership and Randolph
C. Henson, as Trustee, and Bank United of Texas
FSB. (File No. 0-11987).*
<PAGE>
Walden Pond Apartments
(10.7) Management Agreement dated June 2, 1983 between
Krupp Realty Limited Partnership-IV, as Owner,
and Krupp Asset Management Company, now known
as Berkshire Property Management ("BPM"), as
Agent [Exhibit 10.19 to Registrant's Annual
Report on Form 10-K dated December 31, 1983
(File No. 2-80650)].*
(10.8) Certificate of Limited Partnership of
Westbridge Partners, Ltd., executed March 1,
1990. [Exhibit 19.9 to Registrant's Report on
Form 10-Q dated June 30, 1990 (File No. 0-
11987)].*
(10.9) Westbridge Partners, Ltd. Agreement of Limited
Partnership executed March 1, 1990. [Exhibit
20.1 to Registrant's Report on Form 10-Q dated
June 30, 1990 (File No. 0-11987)].*
(10.10) Bill of Sale Agreement between Krupp Realty
Limited Partnership-IV and Westbridge Partners,
Ltd., executed March 1, 1990. [Exhibit 20.2 to
Registrant's Report on Form 10-Q dated June 30,
1990 (File No. 0-11987)].*
(10.11) Westbridge Partners, Ltd. First Amendment to
Agreement of Limited Partnership, executed
April 9, 1990. [Exhibit 20.3 to Registrant's
Report on Form 10-Q dated June 30, 1990 (File
No. 0-11987)].*
(10.12) Order Granting Motion of First Boston Mortgage
Capital Corp. for Relief from the Automatic
Stay dated January 28, 1992. [Exhibit C to
Registrant's Report on Form 8-K dated March 3,
1992 (File No. 0-11987)].*
(10.13) Modification Agreement dated February 28, 1992
between Westbridge Partners, Ltd. and
University Mortgage Acquisition Corp. [Exhibit
10.14 to Registrant's Annual Report on Form 10-
K dated December 31, 1993 (File No. 0-11987)].*
(10.14) Renewal Multifamily Note dated February 28,
1992 between Westbridge Partners, Ltd. and
University Mortgage Acquisition Corp. [Exhibit
10.15 to Registrant's Annual Report on Form 10-
K dated December 31, 1993 (File No. 0-11987)].*
(10.15) Renewal Multifamily Deed of Trust, Assignment
of Rents and Security Agreement dated February
28, 1992 by Westbridge Partners, Ltd. and John
M. Walker, Jr., as Trustee, and University
Mortgage Acquisition Corp. [Exhibit 10.16 to
Registrant's <PAGE>
Annual Report on Form 10-K dated December 31,
1993 (File No. 0-11987)].*
Pavillion Apartments
(10.16) Management Agreement dated June 2, 1983 between
Krupp Realty Limited Partnership-IV, as Owner,
and Krupp Asset Management Company, now known
as Berkshire Property Management ("BPM"), as
Agent [Exhibit 10.25 to Registrant's Annual
Report on Form 10-K dated December 31, 1983
(File No. 2-80650)].*
(10.17)Certificate of Limited Partnership of Pavillion Partners, Ltd.,
executed
March 1, 1990. [Exhibit 19.1 to Registrant's Report on Form 10-Q dated June
30, 1990 (File No. 0-11987)].*
(10.18) Pavillion Partners, Ltd. Agreement of Limited
Partnership executed March 1, 1990. [Exhibit
19.2 to Registrant's Report on Form 10-Q dated
June 30, 1990 (File No. 0-11987)].*
(10.19) Bill of Sale Agreement between Krupp Realty
Limited Partnership-IV and Pavillion Partners,
Ltd., executed March 1, 1990. [Exhibit 19.3
to Registrant's Report on Form 10-Q dated June
30, 1990 (File No. 0-11987)].*
(10.20) Pavillion Partners, Ltd. First Amendment to
Agreement of Limited Partnership, executed
April 9, 1990. [Exhibit 19.4 to Registrant's
Report on Form 10-Q dated June 30, 1990 (File
No. 0-11987)].*
(10.21) Pavillion Partners, Ltd. Chapter 11 Voluntary
Petition executed June 4, 1990 in The United
States Bankruptcy Court for the Northern
District of Texas, Dallas Division. [Exhibit
10.51 to Registrant's Annual Report on Form 10-
K for the year ended December 31, 1990 (File
No. 0-11987)].*
(10.22) Pavillion Partners, Ltd., Debtor's First
Amended Plan of Reorganization executed January
16, 1991 in The United States Bankruptcy Court
for the Northern District of Texas, Dallas
Division. [Exhibit 10.52 to Registrant's Annual
Report on Form 10-K for the year ended December
31, 1990 (File No. 0-11987)].*
(10.23) Promissory Note dated April 13, 1994 by and
between Pavillion Partners, Ltd. and Sunlife
Insurance Company of America. [Exhibit 10.1 to
Registrant's Report on Form 10-Q dated June 30,
1994 (File No. 0-11987)].*
<PAGE>
(10.24) Promissory Note dated
April 13, 1994 between Pavillion Partners, Ltd.
and Sunlife Insurance Company of America.
[Exhibit 10.2 to Registrant's Report on Form
10-Q dated June 30, 1994 (File No. 0-11987)].*
* Incorporated by reference.
(c) Reports on Form 8-K
During the last quarter of the year ended December 31, 1995
the Partnership did not file any reports on Form 8-K.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized, on
the 21st day of March, 1996.
KRUPP REALTY LIMITED PARTNERSHIP-IV
By: The Krupp Corporation a General Partner
By: /s/ Douglas Krupp
Douglas Krupp, Co-Chairman (Principal
Executive Officer) and Director of
The Krupp Corporation
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated, on the 21st day of March, 1996.
Signatures Titles
/s/ Douglas Krupp Co-Chairman (Principal Executive
Douglas Krupp Officer) and Director of The Krupp
Corporation, a General Partner.
/s/ George Krupp Co-Chairman (Principal Executive
George Krupp Officer) and Director of The Krupp
Corporation, a General Partner.
/s/ Laurence Gerber President of The Krupp Corporation,
Laurence Gerber a General Partner.
/s/Robert A. Barrows Senior Vice President and Corporate
Robert A. Barrows Controller of The Krupp
Corporation, a General Partner.
<PAGE>
APPENDIX A
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
ITEM 8 OF FORM 10-K
ANNUAL REPORT TO THE SECURITIES AND EXCHANGE COMMISSION
For the Year Ended December 31, 1995
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE
Report of Independent Accountants F-3
Consolidated Balance Sheets at December 31, 1995 and
December 31, 1994 F-4
Consolidated Statements of Operations For the Years Ended
December 31, 1995, 1994 and 1993 F-5
Consolidated Statements of Changes in Partners' Equity (Deficit)
For the Years Ended December 31, 1995, 1994 and 1993 F-6
Consolidated Statements of Cash Flows For the Years Ended
December 31, 1995, 1994 and 1993 F-7
Notes to Consolidated Financial Statements F-8 - F-14
Schedule III - Real Estate and Accumulated Depreciation F-15 - F-16
All other schedules are omitted as they are not applicable, not required, or
the information is provided in the consolidated financial statements or the
notes thereto.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Krupp Realty Limited Partnership-IV and Subsidiaries:
We have audited the consolidated financial statements and the financial
statement schedule of Krupp Realty Limited Partnership-IV and Subsidiaries
(the "Partnership") listed in the index on page F-2 of this Form 10-K.
These financial statements and financial statement schedule are the
responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements and financial statement
schedule 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
<PAGE>
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 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 financial statements referred to above present fairly,
in all material respects, the consolidated financial position of Krupp
Realty Limited Partnership-IV and Subsidiaries as of December 31, 1995 and
1994, and the consolidated results of their operations and their cash flows
for each of the three years in the period ended December 31, 1995 in
conformity with generally accepted accounting principles. In addition, in
our opinion, the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information required to be
included therein.
Boston, Massachusetts COOPERS & LYBRAND L.L.P.
January 31, 1996
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, 1995 and 1994
ASSETS
<TABLE>
<CAPTION>
1995 1994
Multi-family apartment complexes,
net of accumulated depreciation of
$22,689,200 and $20,636,291,
<S> <C> <C>
respectively (Note D) $ 17,088,634 $ 18,714,181
Cash and cash equivalents (Note C) 2,802,694 2,500,074
Cash restricted for capital improvements 19,066 20,340
Prepaid expenses and other assets 653,387 723,507
Deferred expenses, net of accumulated
amortization of $103,355 and $55,358,
respectively (Note F) 295,303 347,041
Total assets $ 20,859,084 $ 22,305,143
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Mortgage notes payable (Note D) $ 20,938,160 $ 21,667,289
Other liabilities 1,113,994 925,234
Total liabilities 22,052,154 22,592,523
Partners' equity (deficit) (Note E):
Limited Partners
(30,000 Units outstanding) 322,527 1,182,933
Original Limited Partner (1,245,119) (1,208,892)
General Partners (270,478) (261,421)
Total Partners deficit (1,193,070) (287,380)
Total liabilities and Partners' equity
(deficit) $ 20,859,084 $ 22,305,143
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
1995 1994 1993
Revenue:
<S> <C> <C> <C>
Rental $ 6,939,316 $ 6,685,659 $ 6,092,060
Other income 169,395 124,782 136,625
Total revenue 7,108,711 6,810,441 6,228,685
Expenses:
Operating (Note F) 1,972,221 2,121,111 2,239,268
Maintenance 669,397 673,645 1,170,208
Real estate taxes 631,057 535,665 539,061
Management fees paid to an
affiliate (Note F) 272,061 250,025 219,420
Depreciation and amortization 2,106,589 2,131,973 1,931,705
General and administrative (Note F) 166,630 108,855 98,007
Interest (Note D) 1,311,140 1,479,559 1,496,429
Total expenses 7,129,095 7,300,833 7,694,098
Loss before reorganization expenses
and minority interest (20,384) (490,392) (1,465,413)
Reorganization expenses (Note D) - - (10,750)
Minority interest (1,244) 1,456 7,597
Net loss $ (21,628) $ (488,936) $(1,468,566)
Allocation of net loss (Note E):
Investor Limited Partner
Interest (30,000 Units outstanding) $ (20,547) $ (464,489) $(1,395,137)
Per Unit of Investor Limited
Partner Interest $ (.68) $ (15.48) $ (46.50)
Original Limited Partner $ (865) $ (19,558) $ (58,743)
General Partners $ (216) $ (4,889) $ (14,686)
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT)
For the Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
Total
Investor Original Partners'
Limited Limited General Equity
Partners Partner Partners (Deficit)
<S> <C> <C> <C> <C>
Balance at December 31, 1992 $3,182,562 $(1,124,696) $ (240,372) $ 1,817,494
Net loss (1,395,137) (58,743) (14,686) (1,468,566)
Balance at December 31, 1993 1,787,425 (1,183,439) (255,058) 348,928
Distributions (Note E) (140,003) (5,895) (1,474) (147,372)
Net loss (464,489) (19,558) (4,889) (488,936)
Balance at December 31, 1994 1,182,933 (1,208,892) (261,421) (287,380)
Distributions (Note E) (839,859) (35,362) (8,841) (884,062)
Net loss (20,547) (865) (216) (21,628)
Balance at December 31, 1995 $ 322,527 $(1,245,119) $ (270,478) $(1,193,070)
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
1995 1994 1993
Operating activities:
<S> <C> <C> <C>
Net loss $ (21,628) $ (488,936) $(1,468,566)
Adjustment to reconcile net loss
to net cash provided by operating activities:
Depreciation and amortization 2,106,589 2,131,973 1,931,705
Decrease (increase) in prepaid
expenses and other assets 70,120 120,736 (215,142)
Increase (decrease) in other
liabilities 188,760 (46,065) 209,575
Net cash provided by operating activities 2,343,841 1,717,708 457,572
Investing activities:
Additions to fixed assets (427,362) (399,171) (1,540,687)
Decrease in cash restricted for
capital improvements 1,274 128,634 51,278
Decrease in other investments - - 1,478,271
Net cash used in investing
activities (426,088) (270,537) (11,138)
Financing activities:
Proceeds from mortgage notes payable - 9,747,000 4,600,000
Repayment of mortgage notes payable - (10,273,840) (4,510,305)
Principal payments on mortgage
notes payable (729,129) (704,299) (652,422)
Increase in deferred expenses (1,942) (287,487) (109,230)
Distributions (884,062) (147,372) -
Net cash used in financing activities (1,615,133) (1,665,998) (671,957)
Net increase (decrease) in cash and
cash equivalents 302,620 (218,827) (225,523)
Cash and cash equivalents,
beginning of year 2,500,074 2,718,901 2,944,424
Cash and cash equivalents, end of year $ 2,802,694 $ 2,500,074 $ 2,718,901
</TABLE>
The accompanying notes are an integral
part of the consolidated financial statements.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. Organization
Krupp Realty Limited Partnership-IV ("KRLP-IV") was formed on December 1,
1982 by filing a Certificate of Limited Partnership in The Commonwealth of
Massachusetts. KRLP-IV terminates on December 31, 2020, unless earlier
terminated upon the sale of the last of KRLP-IV and Subsidiaries'
properties or the occurrence of certain other events as set forth in the
Partnership Agreement.
KRLP-IV issued all of the General Partner Interests to The Krupp
Corporation, a Massachusetts corporation, and The Krupp Company Limited
Partnership-II, a Massachusetts limited partnership, in exchange for
capital contributions aggregating $1,000. Except under certain limited
circumstances upon termination of KRLP-IV, the General Partners are not
required to make any additional capital contributions. KRLP-IV has also
issued all of the Original Limited Partner Interests to The Krupp Company
Limited Partnership-II in exchange for a capital contribution of $4,000.
The Original Limited Partner is not required to make any additional
capital contributions to KRLP-IV. The purchasers of 30,000 units of
Investor Limited Partner Interests (the "Units"), at a price of $1,000 per
Unit, are the Investor Limited Partners.
In 1990, the General Partners on behalf of KRLP-IV formed three limited
partnerships: Pavillion Partners, Ltd., Copper Creek Partners, Ltd. and
Westbridge Partners, Ltd. At the same time, the General Partners
transferred ownership of Pavillion Apartments to Pavillion Partners, Ltd.,
Copper Creek Apartments to Copper Creek Partners, Ltd., and Walden Pond
Apartments to Westbridge Partners, Ltd. in exchange for KRLP-IV's 99%
limited partner interest in the new entities. Westcop Corporation
contributed a total of $11,216 in cash to the entities and is the General
Partner in each with a 1% interest. On March 3, 1992, Copper Creek was
foreclosed upon by the holder of the first and second mortgage notes
pursuant to an agreement approved by the Bankruptcy Court.
KRLP-IV, Pavillion Partners, Ltd., and Westbridge Partners, Ltd. are
collectively known as Krupp Realty Limited Partnership-IV and Subsidiaries
(collectively the "Partnership").
As of December 31, 1995, the Partnership owns four multi-family apartment
complexes.
B. Significant Accounting Policies
The Partnership uses the following accounting policies for financial
reporting purposes, which may differ in certain respects from those used
for federal income tax purposes (see Note G).
Basis of Presentation
The consolidated financial statements present the consolidated assets,
liabilities and operations of Pavillion Partners, Ltd., Westbridge
Partners, Ltd. and KRLP-IV (see Note A). All intercompany balances and
<PAGE>
transactions have been eliminated. At December 31, 1995 and 1994, a
minority interest of $28,793 and $30,037, respectively, is included in
other liabilities.
Risks and Uncertainties
The Partnership invests its cash primarily in deposits and money market
funds with commercial banks. The Partnership has not experienced any
losses to date on its invested cash.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Cash Equivalents
The Partnership includes all short-term investments with maturities of
three months or less from the date of acquisition in cash and cash
equivalents. The cash investments are recorded at cost, which
approximates current market values.
Rental Revenues
Leases require the payment of base rent monthly in advance. Rental
revenues are recorded on the accrual basis.
Impairment of Long-Lived Assets
In accordance with Financial Accounting Standards No. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of", which is effective for fiscal years beginning
after December 15, 1995, the Partnership has implemented policies
and practices for assessing impairment of its real estate assets.
The investments in properties are carried at cost less accumulated
depreciation unless the General Partners believe there is a significant
impairment in value, in which case a provision to write down investments
in properties to fair value will be charged against income. At this
time, the General Partners do not believe that any assets of the
Partnership are significantly impaired.
Depreciation
Depreciation is provided for by the use of the straight-line method over
estimated useful lives of the related asset, as follows:
Buildings and improvements 3-25 years
Appliances, carpeting and equipment 3-5 years
Deferred Expenses
The Partnership amortizes the costs incurred in connection with the
<PAGE>
organization of its subsidiaries over a 5-year period using the straight-
line method.
The Partnership amortizes the costs incurred to obtain the financing of
Partnership's properties over the term of the related mortgage note
using the straight-line method.
Income Taxes
The Partnership is not liable for federal or state income taxes as
Partnership's income or loss is allocated to the partners for income tax
purposes. In the event that the Partnership's tax returns are examined
by the Internal Revenue Service or state taxing authority and the
examination results in a change in Partnership taxable income or loss,
such change will be reported to the partners.
Reclassifications
Certain prior year balances have been reclassified to conform with
current year financial statement presentation.
C. Cash and Cash Equivalents
Cash and cash equivalents consist of the following:
December 31, December 31,
1995 1994
Cash and money market accounts $ 818,058 $ 416,066
Commercial paper 1,984,636 2,084,008
$2,802,694 $ 2,500,074
At December 31, 1995, commercial paper represents investments which mature
between January 10 and February 9, 1996 having effective yields ranging
from 5.81% to 5.91% per annum.
D. Mortgage Notes Payable
Substantially all of the property owned by the Partnership is pledged as
collateral for the non-recourse mortgage notes payable outstanding at
December 31, 1995 and 1994. Mortgage notes payable consist of the
following:
<PAGE>
<TABLE>
<CAPTION>
Principal Annual Interest
Property 1995 1994 Rate Maturity Date
Fenland Field
<S> <C> <C> <C> <C> <C>
Apartments $ 4,366,104 $ 4,463,301 9.25% June 1, 2000
Indian Run
Apartments 2,713,836 2,742,483 9.51% October 1, 2004
Walden Pond
Apartments 6,936,368 7,491,332 see below February 28, 1999
Pavillion
Apartments 6,921,852 6,970,173 9.25% May 1, 2001
$20,938,160 $21,667,289
</TABLE>
Fenland Field Apartments
The non-recourse mortgage note payable collateralized by the
property is payable, based on a 20-year amortization, in equal
monthly installments of principal and interest of $42,167. At
maturity, all unpaid principal ($3,824,206) and any accrued and
unpaid interest is due. The note may not be prepaid prior to
June 1, 1998 and thereafter, may be prepaid subject to certain
prepayment premiums.
Based on the borrowing rates currently available to the
Partnership for bank loans with similar terms and average
maturities, the fair value of long-term debt is approximately
$4,600,000.
Indian Run Apartments
Effective October 26, 1994, the Partnership refinanced Indian
Run's first mortgage note in the amount of $2,747,000. The new
mortgage note is payable, based on a 25-year amortization, in
equal monthly installments of principal and interest of
$24,021. At maturity, all unpaid principal ($2,298,949) and
any accrued and unpaid interest is due. The note may be
prepaid at any time, subject to certain prepayment premiums.
Based on the borrowing rates currently available to the
Partnership for bank loans with similar terms and average
maturities, the fair value of long-term debt is approximately
$3,300,000.
Walden Pond Apartments
On February 28, 1992, the prior wrap-around mortgage note was
modified in bankruptcy court. The modified principal balance
of $5,500,000 is being amortized over a 30-year period and
requires monthly principal payments of $46,247. For financial
reporting purposes, generally accepted accounting principles
required the Partnership to increase the outstanding principal
balance of the <PAGE>
mortgage to the sum of the future cash flow payments required
under the new terms of the mortgage. All cash payments made
subsequent to the restructure are recorded as a reduction of
the principal balance and no interest expense is recognized by
the Partnership.
Based on the borrowing rates currently available to the
Partnership for bank loans with similar terms and average
maturities, the fair value of long-term debt is approximately
$5,700,000.
Pavillion Apartments
Effective April 13, 1994, the Partnership refinanced Pavillion's
first mortgage note in the amount of $7,000,000. The Partnership
paid a $76,188 prepayment penalty to the previous mortgage
holder. The new mortgage note is payable, based on a 30-year
amortization, in equal monthly installments of principal and
interest of $57,587. At maturity, all unpaid principal
($6,580,326) and any accrued and unpaid interest is due. The
Partnership cannot prepay the note until October 13, 1997.
Thereafter, the note may be prepaid subject to certain prepayment
premiums.
Based on the borrowing rates currently available to the
Partnership for bank loans with similar terms and average
maturities, the fair value of long-term debt is approximately $7,300,000.
The aggregate principal amounts of borrowings due in the five years 1996
through 2000 are $744,553, $762,942, $783,115, $5,521,757 and $4,007,863,
respectively.
The Partnership paid interest of $1,311,140, $1,376,867 and $1,496,429
during the years ended December 31, 1995, 1994 and 1993, respectively.
E. Partners' Equity (Deficit)
Under the terms of the Partnership Agreement, profits and losses from
operations are allocated 95% to the Investor Limited Partners, 4% to the
Original Limited Partner and 1% to the General Partners until such time
that the Investor Limited Partners have received a return of their total
invested capital plus a 9% per annum cumulative return thereon. There-
after, profits and losses will be allocated 65% to the Investor Limited
Partners, 28% to the Original Limited Partner and 7% to the General
Partners.
Under the Agreement, cash distributions are generally made on the same
basis as the allocations of profits and losses described above.
Distributions from a sale, exchange, or other disposition of a property or
upon the termination of the Partnership are to be allocated differently
than that described.
As of December 31, 1995, the following cumulative partner contributions
and allocations have been made since inception of KRLP-IV:
<PAGE>
<TABLE>
<CAPTION>
Investor Original
Limited Limited General
Partners Partner Partners Total
<S> <C> <C> <C> <C>
Capital contributions $ 30,000,000 $ 4,000 $ 1,000 $ 30,005,000
Syndication costs (4,050,000) - - (4,050,000)
Cash distributions:
Operations (4,894,309) (206,077) (51,517) (5,151,903)
Capital
transaction (2,000,000) - (20,202) (2,020,202)
Income (loss):
Operations (28,010,748) (1,340,964) (296,482) (29,648,194)
Capital
transactions 9,277,584 297,922 96,723 9,672,229
$ 322,527 $(1,245,119) $(270,478) $ (1,193,070)
</TABLE>
F. Related Party Transactions
Commencing with the date of acquisition of the Partnership's properties,
the Partnership entered into agreements under which property management
fees are paid to an affiliate of the General Partners for services as
management agent. Such agreements provide for management fees payable
monthly at a rate of 5% of the gross receipts from residential properties
under management. The Partnership also reimburses affiliates of the
General Partners for certain expenses incurred in the operation of the
Partnership and its properties including accounting, computer, insurance,
travel, legal, payroll, and the preparation and mailing of reports and
other communications to the Limited Partners.
Amounts paid to the General Partners or their affiliates for the years
ended December 31, 1995, 1994 and 1993 were as follows:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Property management fees $272,061 $250,025 $219,420
Expense reimbursements 225,694 351,249 355,965
Charged to operations $497,755 $601,274 $575,385
</TABLE>
In addition to the amounts above, the following amounts relating to refinancing
and disposition activities were paid to the General Partners
or their affiliates:
1995 1994 1993
Cost reimbursements $ 1,942 $ 22,050 $ 18,544
G. Federal Income Taxes
The reconciliation of the net loss for each year reported in the
accompanying Consolidated Statement of Operations with the net loss
reported in the Partnership's 1995, 1994 and 1993 federal income tax
returns follows:
<PAGE>
1995 1994 1993
Net loss per Consolidated
Statement of Operations $ (21,628) $(488,936) $(1,468,566)
Add: Difference in book to tax
depreciation for Fenland
Field and Indian Run 90,581 73,092 42,694
Partnership's share of Pavillion
Partners net loss not
recognized for tax purposes 37,923 35,153 609,179
Partnership's share of
Westbridge Partners net
loss (income) not recognized
for tax purposes (448,394) (448,610) 148,765
Net loss for federal income
tax purposes $(341,518) $(829,301) $ (667,928)
The allocation of the net loss for federal income tax purposes for
1995 is as follows:
Portfolio Passive
Income Loss Total
Investor Limited
Partners $158,810 $(483,253) $(324,443)
Original Limited
Partner 6,687 (20,347) (13,660)
General Partners 1,672 (5,087) (3,415)
$167,169 $(508,687) $(341,518)
During the years ended December 31, 1995, 1994 and 1993 the per Unit net
loss to the Investor Limited Partners for federal income tax purposes was
$11, $26 and $21, respectively.
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION
December 31, 1995
<TABLE>
<CAPTION>
Initial Cost to Partnership Costs Capitalized
Subsequent to
Acquisition
Description Encumbrances Land Buildings &
Improvements Land Buildings &
Improvement
s
Fenland Field
Apartments
<S> <C> <C> <C> <C>
Columbia, MD $ 4,366,104 $ 365,262 $ 4,852,767 $ 407
$1,889,916
Indian Run Apts.
Abilene, TX
2,713,836 503,574 6,690,341 902 623,157
Walden Pond
Apts.
Houston, TX (a)
5,346,692 906,253
12,040,217
1,211 1,150,402
Pavillion Apts.
Garland, TX 6,921,852 680,621 9,042,535 1,199 1,029,070
TOTAL: $19,348,484 $2,455,710 $32,625,860 $3,719 $4,692,545
</TABLE>
Gross Amounts Carried at
End of Year
<TABLE>
<CAPTION>
Description Land Buildings
and
Improvements Total Accumulated
Depreciation Year of
Construction
Year
Acquired
Fenland Field
Apartments
<S> <C> <C> <C> <C> <C> <C>
Columbia, MD $ 365,669 $ 6,742,683 $ 7,108,352 $ 4,251,762 1970 1983
Indian Run Apts
Abilene, TX 504,476 7,313,498 7,817,974 4,435,698 1982 1983
Walden Pond
Apts
Houston, TX 907,464 13,190,619 14,098,083 7,972,202 1982 1983
Pavillion Apts.
Garland, TX 681,820 10,071,605 10,753,425 6,029,538 1983 1983
TOTAL: $2,459,429 $37,318,405 $ 39,777,834 $ 22,689,200
</TABLE>
(a) The mortgage note payable balance per the Consolidated Balance
Sheets include all interest payable through maturity (see Note D).
Continued
<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION, Continued
December 31, 1995
Reconciliation of Real Estate and Accumulated Depreciation for each of the
three years in the period ended December 31, 1995:
<TABLE>
<CAPTION>
1995 1994 1993
Real Estate
Balance at beginning
<S> <C> <C> <C>
of year $ 39,350,472 $ 38,951,301 $ 37,410,614
Acquisition
and improvements 427,362 399,171 1,540,687
Balance at end of year $ 39,777,834 $ 39,350,472 $ 38,951,301
1995 1994 1993
Accumulated Depreciation
Balance at beginning
of year $ 20,636,291 $ 18,613,263 $ 16,745,424
Depreciation expense 2,052,909 2,023,028 1,867,839
Balance at end of year $ 22,689,200 $ 20,636,291 $ 18,613,263
</TABLE>
Note: The aggregate cost of the Partnership's real estate for
federal income tax purposes at December 31, 1995 is
$39,782,928 and the aggregate accumulated depreciation
for federal income tax purposes is $31,000,047.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Fund IV
Financial Statements for the year ended December 31, 1995 and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 2,821,760
<SECURITIES> 0
<RECEIVABLES> 46,714
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 606,973,
<PP&E> 40,176,492<F1>
<DEPRECIATION> 22,792,555<F2>
<TOTAL-ASSETS> 20,859,384
<CURRENT-LIABILITIES> 1,113,994
<BONDS> 20,938,160<F3>
<COMMON> 1,193,070<F4>
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,859,084
<SALES> 7,108,711
<TOTAL-REVENUES> 7,108,711
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5,817,955<F5>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,311,140
<INCOME-PRETAX> (21,628)
<INCOME-TAX> 0
<INCOME-CONTINUING> (21,628)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (21,628)<F6>
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Includes apartment complexes of $39,777,834 and deferred expenses of $398,658.
<F2>Includes depreciation of $22,689,200 and amortization of deferres expenses of
$103,355.
<F3>Represents mortgage notes payable.
<F4>Reprsents total equity of General and Limited Partners of ($270,478) and
($922,592), respectively.
<F5>Includes operating expenses of $3,080,309, real estate tax expenses of
$631,057, and depreciation and amortization of $2,106,589 and minority interest
of $1,244.
<F6>Net loss allocated ($216) General Partners, ($865) Original Limited Partners,
and ($20,547) to the Investor Limited Partners, for the year ended December 31,
1995. Average net income per unit of Limited Partners Interest is (.68) on
30,000 units outstanding.
</FN>
</TABLE>
