UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
COMMISSION FILE NUMBER 0-13426
GRIFFIN REAL ESTATE FUND-IV, A LIMITED PARTNERSHIP
MINNESOTA 41-1470203
750 NORTHLAND PLAZA
3800 WEST 80TH STREET, MINNEAPOLIS, MINNESOTA 55431
REGISTRANT'S TELEPHONE NUMBER (612) 896-3800
WATS NUMBER 800-328-3788
Indicate by check mark whether the registrant (1) has filed reports 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 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 (229.405 of this chapter) 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-Q
or any amendment to this Form 10-Q. [ ]
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
INDEX
PART 1. Financial Information
Condensed Balance Sheets
September 30, 1995 and December 31, 1994.................... 1
Condensed Statements of Operations
for the three months and the nine months ended
September 30, 1995 and 1994................................. 2
Condensed Statements of Cash Flows
for the nine months ended
September 30, 1995 and 1994................................. 3
Condensed Statements of Changes
in Partners' Equity for the
nine months ended September 30, 1995........................ 4
Notes to Financial Statements................................. 5
Management's Discussion and Analysis of
Financial Conditions and Results
of Operations............................................... 6-7
PART II. Other Information............................................. 8
SIGNATURES.............................................................. 9
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
(unaudited)
September 30, December 31,
1995 1994
ASSETS
Cash and cash equivalents $ 313,857 $ 97,469
Receivables and other assets 833,120 975,430
Total 1,146,977 1,072,899
PROPERTY:
Land 1,203,093 1,203,093
Buildings and improvements 14,291,717 14,224,243
Furniture and equipment 998,392 998,392
Total 16,493,202 16,425,728
Less accumulated depreciation 6,885,944 6,449,249
Property - net 9,607,258 9,976,479
TOTAL ASSETS $ 10,754,235 $ 11,049,378
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 604,019 $ 643,326
Security deposits 95,899 98,383
Notes payable 57,088 107,088
Mortgage notes payable 12,377,511 12,453,362
Total liabilities 13,134,517 13,302,159
PARTNERS' EQUITY:
General partner (222,130) (220,855)
Limited partners (2,158,152) (2,031,926)
Total partners' equity (2,380,282) (2,252,781)
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 10,754,235 $ 11,049,378
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
REVENUES
Rental income $ 876,043 $ 822,050 $2,550,487 $2,399,433
Interest income 3,405 15 6,087 833
Other income 30,769 26,052 76,324 80,806
Total revenues 910,217 848,117 2,632,898 2,481,072
OPERATING EXPENSES
Operating expenses 516,652 475,406 1,440,447 1,435,001
Interest expense 283,718 260,002 854,205 717,687
Depreciation and
amortization 155,248 151,582 465,747 451,798
Total operating expenses 955,618 886,990 2,760,399 2,604,486
NET LOSS 45,401 38,873 127,501 123,414
NET LOSS ALLOCATED
TO GENERAL PARTNER 454 389 1,275 1,234
NET LOSS ALLOCATED
TO LIMITED PARTNERS $ 44,947 $ 38,484 $ 126,226 $ 122,180
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ 3.41 $ 2.91 $ 9.56 $ 9.24
(weighted average basis)
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Nine Months
Ended September 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(127,501) $(123,414)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depreciation and amortization 465,747 451,798
Decrease in other assets-net 113,258 325,369
Increase (decrease) in accounts payable
and accrued liabilities (39,307) 16,280
Decrease in security deposits (2,484) (2,702)
Net cash provided by operating activities 409,713 667,331
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property (67,474) (288,279)
Net cash used by investing activities (67,474) (288,279)
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in mortgage payable (75,851) (78,694)
Reduction in notes payable (50,000) (291,745)
Redemption of limited partner units -- (8,485)
Net cash used by financing activities (125,851) (378,924)
INCREASE IN CASH AND CASH EQUIVALENTS 216,388 128
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 97,469 79,648
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 313,857 $ 79,776
CASH PAID DURING THE PERIOD FOR INTEREST $ 844,403 $ 634,917
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1995 $ (220,855) $(2,031,926) $(2,252,781)
NET LOSS (1,275) (126,226) (127,501)
PARTNERS' EQUITY (DEFICIT)
SEPTEMBER 30, 1995 $ (222,130) $(2,158,152) $(2,380,282)
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(unaudited)
1. Griffin Real Estate Fund-IV, A Limited Partnership (the Partnership) was
formed by Griffin Associates-IV, A Limited Partnership (the General
Partner) on March 13, 1984 under the laws of the State of Minnesota. The
limited partnership offering terminated on December 22, 1984 at which time
13,220 units had been sold at a value of $1,000 per unit.
In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly Griffin Real
Estate FundIV, A Limited Partnership's financial position as of September
30, 1995 and December 31, 1994 and the results of its operations for the
three months and nine months ended September 30, 1995 and 1994 and its cash
flows for the nine months ended September 30, 1995 and 1994.
The accounting policies followed by the Partnership are set forth in Note 1
to the Partnership financial statements in the 1994 Griffin Real Estate
Fund-IV, A Limited Partnership Form 10K.
2. RELATED PARTY TRANSACTIONS
The partners of Griffin Associates-IV, A Limited Partnership, the general
partner of the Partnership, are also owners, directors, and officers of the
Griffin Companies, A Minnesota corporation. The following is a summary of
fees incurred for the nine months ended September 30, 1995 and 1994
relating to the Griffin Companies and its affiliates:
1995 1994
Management fee $ 143,029 $ 139,970
Supervisory fee 21,396 50,211
3. TAXABLE INCOME (LOSS)
The net loss shown on the statement of operations is reconciled to the
taxable income (loss) as follows:
For the Nine Months
Ended September 30,
1995 1994
Net loss per statement of operations $ 127,501 $ 123,414
Excess of tax depreciation over
book depreciation 114,949 146,705
Taxable loss $ 242,450 $ 270,119
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1995, the Partnership had cash and cash equivalents of $313,857
which will be used for working capital requirements of the Partnership and its
properties. It is anticipated that the Partnership will be able to meet current
obligations and commitments from cash on hand and from cash generated from
operations during 1995.
Distributions to partners were not made during the first nine months of 1995.
Future cash distributions will depend on future property operations.
RESULTS OF OPERATIONS
The General Partner, after reasonable inquiry, is not aware of any material
factors relating to any of the Partnership's properties or the operations of the
Partnership that would cause the financial information of the Partnership not to
be indicative of future operating results or of future financial conditions.
Net rental income of the properties was $2,550,487 and $2,399,433 for the first
three quarters of 1995 and 1994 respectively. This is an increase of $151,054 or
6.3%. The increase was a result of improvements in occupancy and in increases in
rents which averaged 3.7%. Operating expenses were $1,440,447 and $1,435,001 for
the first three quarters of 1995 and 1994 respectively, for a minor increase of
$5,446. During the same period, interest expense was $854,205 and $717,687 for
1995 and 1994 respectively. This increase of $136,518 was a result of increasing
short term interest rates, causing the interest rate of the mortgages, whose
terms include a semi-annual interest rate adjustment, to increase from 7.1%
during the third quarter of 1994 to 9.475% during the third quarter of 1995. The
excess of expenses over revenues has resulted in losses from operations of
$127,501 and $123,414 for the first three quarters of 1995 and 1994
respectively. Overall, operations of the Partnership and its properties resulted
in cash flow for the first three quarters of 1995 of $216,388 compared to $128
during the same period of 1994.
Ravenwood Apartments is currently being marketed for sale. To date there has not
been any agreement for sale to report.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
<TABLE>
<CAPTION>
1994 1995
at at
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
<S> <C> <C> <C> <C> <C> <C> <C>
1. Presidential
Estates Apts.
Indianapolis, IN 86% 85% 94% 91% 89% 95% 93% %
2. Brooklane Apts.
Brown Deer, WI 94% 99% 96% 97% 95% 99% 98% %
3. Ravenwood Apts.
Cincinnati, OH 89% 92% 90% 88% 86% 91% 91% %
</TABLE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
On September 20, 1995 Everest Investors, LLC ("Everest") filed a
lawsuit against Griffin Associates-IV, A Limited Partnership ("General
Partner"), the general partner of Griffin Real Estate Fund-IV, A
Limited Partnership ("Partnership"). The lawsuit alleges that the
General Partner has wrongfully denied Everest access to the books and
records of the Partnership. The court has granted, in part, Everest's
request for access to the books and records and ordered the General
Partner to provide Everest access to these records. The General
Partner has complied with this court order. Everest continues to seek
access to additional books and records of the Partnership beyond the
scope of the court order. The General Partner is vigorously defending
The Partnership's right to keep its proprietary records from being
reviewed by Everest, who is not limited partner of the Partnership
and, therefore, we believe, not entitled to access to the books and
records.
Although the Partnership was not a named defendant in the action, the
General Partner believes that it has a right to be indemnified for the
costs of this litigation by the Partnership under the Partnership
Agreement. Everest is contesting the General Partner's right to
indemnification.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule - for SEC use only.
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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 thereunto duly authorized.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
Date: November 15, 1995 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Associates-IV, A Limited
Partnership
Date: November 15, 1995 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Associates-IV, A Limited
Partnership
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 313,857
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,146,977
<PP&E> 16,493,202
<DEPRECIATION> 6,885,944
<TOTAL-ASSETS> 10,754,235
<CURRENT-LIABILITIES> 757,006
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (2,380,282)<F1>
<TOTAL-LIABILITY-AND-EQUITY> 10,754,235
<SALES> 0
<TOTAL-REVENUES> 2,626,811
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,906,194
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 848,118
<INCOME-PRETAX> (127,501)
<INCOME-TAX> 0
<INCOME-CONTINUING> (127,501)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (127,501)
<EPS-PRIMARY> (9.56)<F2>
<EPS-DILUTED> 0
<FN>
<F1>This entity is a limited partnership. The Other Stockholders Equity line
represents total Partnership equity.
<F2>The EPS-Primary line represents net income (loss) per limited partnership
unit.
</FN>
</TABLE>
