<PAGE>
United States Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
- ---- Act of 1934 For the Quarterly Period Ended March 31,1998
or
Transition Report Pursuant to Section 13 of 15(d) of the Securities
- ---- Exchange Act of 1934 For the transition period from to
---- ----
Commission File Number: 0-13329
CONAM REALTY INVESTORS 4 L.P.
Exact Name of Registrant as Specified in its Charter
California 11-2685746
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State or Other Jurisdiction of I.R.S. Employer Identification No.
Incorporation or Organization
1764 San Diego Avenue
San Diego, CA Attn. Robert J. Svatos 92110-1906
- -------------------------------------- ----------
Address of Principal Executive Offices Zip Code
(619)-297-6771
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Registrant's Telephone Number, Including Area Code
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
----- -----
<PAGE>
CONAM REALTY INVESTORS 4 L.P.
AND CONSOLIDATED VENTURES
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS At March 31, At December 31,
1998 1997
---------- ----------
<S> <C> <C>
Assets
Investments in real estate:
Land $ 2,153,239 $ 2,153,239
Buildings and improvements 11,015,879 11,015,879
---------- ----------
13,169,118 13,169,118
Less accumulated depreciation (5,658,528) (5,552,827)
---------- ----------
7,510,590 7,616,291
Cash and cash equivalents 1,593,684 15,150,595
Other assets 9,800 3,300
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Total Assets $ 9,114,074 $ 22,770,186
---------- ----------
---------- ----------
Liabilities and Partners' Capital
Liabilities:
Accounts payable and accrued expenses 180,780 144,530
Distribution payable 142,344 13,729,122
Due to affiliates 6,719 15,471
Security deposits 36,514 35,573
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Total Liabilities 366,357 13,924,696
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Partners' Capital:
General Partner -- --
Limited Partners (128,110 Units outstanding) 8,747,717 8,845,490
---------- ----------
Total Partners' Capital 8,747,717 8,845,490
---------- ----------
Total Liabilities and Partners' Capital $ 9,114,074 $ 22,770,186
---------- ----------
---------- ----------
</TABLE>
See accompanying notes to the consolidated financial statements.
<PAGE>
CONAM REALTY INVESTORS 4 L.P.
AND CONSOLIDATED VENTURES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended March 31,
<TABLE>
<CAPTION>
1998 1997
-------- ----------
<S> <C> <C>
Income
Rental $408,274 $1,207,761
Interest and other 63,583 32,395
-------- ----------
Total Income 471,857 1,240,156
-------- ----------
Expenses
Property operating 261,981 636,206
Depreciation 105,701 196,393
General and administrative 59,604 58,149
-------- ----------
Total Expenses 427,286 890,748
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Net Income $44,571 $349,408
-------- ----------
-------- ----------
Net Income Allocated:
To the General Partner $14,234 $53,379
To the Limited Partners 30,337 296,029
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Net Income $44,571 $349,408
-------- ----------
-------- ----------
Per limited partnership unit (128,110 Units outstanding)
Net Income $0.24 $2.31
-------- ----------
-------- ----------
</TABLE>
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL For the three months ended
March 31, 1998
<TABLE>
<CAPTION>
General Limited
Partner Partners Total
<S> <C> <C> <C>
Balance at December 31, 1997 $ - $8,845,490 $8,845,490
Net income 14,234 30,337 44,571
Distributions ($1.00 per Unit) (14,234) (128,110) (142,344)
-------- ---------- ----------
Balance at March 31, 1998 $ - $8,747,717 $8,747,717
-------- ---------- ----------
-------- ---------- ----------
</TABLE>
See accompanying notes to the consolidated financial statements.
<PAGE>
CONAM REALTY INVESTORS 4 L.P.
AND CONSOLIDATED VENTURES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31,
<TABLE>
<CAPTION>
1998 1997
------------ -----------
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $44,571 $349,408
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 105,701 196,393
Increase (decrease) in cash arising from changes in
operating assets and liabilities:
Other assets (6,500) 1,437
Accounts payable and accrued expenses 36,250 164,999
Due to affiliates (8,752) (243)
Security deposits 941 974
------------ -----------
Net cash provided by operating activities 172,211 712,968
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Cash Flows From Investing Activities -
Additions to real estate - (4,251)
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Cash Flows From Financing Activities -
Distributions (13,729,122) (533,792)
------------ -----------
Net increase (decrease) in cash and cash equivalents (13,556,911) 174,925
Cash and cash equivalents, beginning of period 15,150,595 2,314,876
------------ -----------
Cash and cash equivalents, end of period $1,593,684 $2,489,801
------------ -----------
------------ -----------
</TABLE>
See accompanying notes to the consolidated financial statements.
<PAGE>
CONAM REALTY INVESTORS 4 L.P.
AND CONSOLIDATED VENTURES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The unaudited interim consolidated financial statements should be read in
conjunction with the Partnership's annual 1997 audited consolidated
financial statements within Form 10-K.
The unaudited interim consolidated financial statements include all normal
and recurring adjustments which are, in the opinion of management,
necessary to present a fair statement of financial position as of March 31,
1998 and the results of operations and cash flows for the three months
ended March 31, 1998 and 1997 and the consolidated statement of partners'
capital for the three months ended March 31, 1998. Results of operations
for the period are not necessarily indicative of the results to be expected
for the full year.
No significant events have occurred subsequent to the year ended December
31, 1997, and no material contingencies exist, which would require
disclosure in this interim report per Regulation S-X, Rule 10-01, Paragraph
(a) (5).
<PAGE>
CONAM REALTY INVESTORS 4 L.P.
AND CONSOLIDATED VENTURES
Part I, Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
At March 31, 1998, the Partnership had cash and cash equivalents of $1,593,684
which were invested in unaffiliated money market funds, compared with
$15,150,595 at December 31, 1997. The decrease reflects a special cash
distribution of $103.00 per Unit from the net proceeds of the sale of Pelican
Landing on January 21, 1998. The Partnership expects sufficient cash to be
generated from operations to meet its current operating expenses.
The General Partner declared a regular cash distribution of $1.00 per Unit for
the quarter ended March 31, 1998 which will be paid in May,1998. The General
Partner will determine the amount of future quarterly distributions based on the
Partnership's available cash flow and future cash needs.
Accounts payable and accrued expenses have increased to $180,780 at March 31,
1998 from $144,530 at December 31, 1997. The increase is primarily attributable
to the timing of payments and accruals of real estate taxes between the two
periods.
Results of Operations
Partnership operations for the three months ended March 31, 1998 generated net
income of $44,571 compared with net income of $349,408 for the corresponding
period in 1997. The decrease for the three month period is primarily
attributable to reduced rental revenue partially offset by reduced property
operating expenses due to the sales of River Hill Apartments on August 6, 1997
and Pelican Landing on December 30, 1997. Total income for the three months
ended March 31, 1998 was $471,857 compared with $1,240,156 for the corresponding
period in 1997. The decrease is primarily due the sales of properties as
described above.
The occupancy rates for the two remaining properties, Shadowood Village and
Village at the Foothills II have increased from the same period in 1997,
reflecting favorable economic conditions in Arizona and Florida.
Interest and other income totaled $63,583 for the three months ended March 31,
1998 compared with $32,395 for the corresponding period in 1997. The increase
for the three month period is primarily due to higher cash equivalent balances
related to the undistributed proceeds from the sale of Pelican Landing in
December, 1997.
Property operating expenses for the three months ended March 31, 1998 totaled
$261,981 compared with $636,206 for the corresponding period in 1997. The
decrease is primarily attributable to a decrease in property operating expenses
associated with the sales of the two properties. The property operating expenses
for the two remaining properties, Shadowood Village and Village at the Foothills
II were relatively stable between the two periods.
During the first three months of 1998 and 1997, average occupancy levels at the
Partnership's properties were as follows:
<TABLE>
<CAPTION>
Property 1998 1997
-------- ---- ----
<S> <C> <C>
Shadowood Village 97% 93%
Village at the Foothills II 96% 94%
</TABLE>
<PAGE>
CONAM REALTY INVESTORS 4 L.P.
AND CONSOLIDATED VENTURES
Part II Other information
Items 1-5 Not applicable
Items 6 Exhibits and reports on Form 8-K
(a) Exhibits -
(27) Financial Data Schedule
(b) Reports on Form 8-K
On January 14, 1998 ConAm Realty Investors 4 L.P. filed a Form
8-K regarding the sale of Pelican Landing on December 30, 1997.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CONAM PROPERTY SERVICES IV, LTD.
General Partner of ConAm Realty Investors 4 L.P.
BY: CONTINENTAL AMERICAN DEVELOPMENT, INC.
GENERAL PARTNER
Date: May 13, 1998 BY:/s/ Daniel J. Epstein
-------------------
Daniel J. Epstein
Director, President, and Principal
Executive Officer
Date: May 13, 1998 BY:/s/ Robert J. Svatos
----------------------
Robert J. Svatos
Vice President and Director
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 1,593,684
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 13,169,118
<DEPRECIATION> 5,658,528
<TOTAL-ASSETS> 9,114,074
<CURRENT-LIABILITIES> 366,357
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 8,747,717
<TOTAL-LIABILITY-AND-EQUITY> 9,114,074
<SALES> 408,274
<TOTAL-REVENUES> 471,857
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 427,286
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 44,571
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 44,571
<EPS-PRIMARY> 0.24
<EPS-DILUTED> 0.24
</TABLE>
