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 MARCH 31, 1996
COMMISSION FILE NUMBER 0-13426
GRIFFIN REAL ESTATE FUND-IV, A LIMITED PARTNERSHIP
MINNESOTA 41-1470203
510 MARQUETTE AVENUE, SUITE 300
MINNEAPOLIS, MINNESOTA 55402
REGISTRANT'S TELEPHONE NUMBER (612) 338-2828
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
March 31, 1996 and December 31, 1995...................... 1
Condensed Statements of Operations
for the three months ended
March 31, 1996 and 1995................................... 2
Condensed Statements of Cash Flows
for the three months ended
March 31, 1996 and 1995
Condensed Statements of Changes
in Partners' Equity for the
three months ended March 31, 1996......................... 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)
March 31, December 31,
1996 1995
------------ ------------
ASSETS
Cash and cash equivalents $ 403,653 $ 423,615
Receivables and other assets 883,750 872,515
------------ ------------
Total 1,287,403 1,296,130
------------ ------------
PROPERTY:
Land 1,203,093 1,203,093
Buildings and improvements 14,441,475 14,417,914
Furniture and equipment 1,003,999 1,003,999
------------ ------------
Total 16,648,567 16,625,006
Less accumulated depreciation 7,182,473 7,035,942
------------ ------------
Property - net 9,466,094 9,589,064
------------ ------------
TOTAL ASSETS $ 10,753,497 $ 10,885,194
============ ============
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 603,388 $ 678,629
Security deposits 92,501 92,795
Notes payable 23,755 40,421
Mortgage notes payable 12,340,021 12,363,382
------------ ------------
Total liabilities 13,059,665 13,175,227
------------ ------------
PARTNERS' EQUITY:
General partner (221,389) (221,228)
Limited partners (2,084,779) (2,068,805)
------------ ------------
Total partners' equity (2,306,168) (2,290,033)
------------ ------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 10,753,497 $ 10,885,194
============ ============
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months
Ended March 31,
1996 1995
--------- ---------
REVENUES
Rental income $ 862,945 $ 826,496
Interest 4,794 728
Other income 25,230 22,131
--------- ---------
Total revenues 892,969 849,355
--------- ---------
OPERATING EXPENSES
Operating expenses 469,128 463,590
Interest expense 283,760 285,691
Depreciation and amortization 156,216 155,250
--------- ---------
Total operating expenses 909,104 904,531
--------- ---------
NET LOSS (16,135) (55,176)
NET LOSS ALLOCATED TO
GENERAL PARTNER (161) (552)
--------- ---------
NET LOSS ALLOCATED TO
LIMITED PARTNERS $ (15,974) $ (54,624)
========= =========
NET LOSS PER LIMITED PARTNERSHIP UNIT
(weighted average basis) $ (1.21) $ (4.14)
========= =========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Three Months
Ended March 31,
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (16,135) $ (55,176)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depreciation and amortization 156,216 155,250
(Increase) decrease in other assets-net (20,920) 58,741
Decrease in accounts payable
and accrued liabilities (75,241) (31,102)
Decrease in security deposits (294) (4,304)
--------- ---------
Net cash provided by operating activities 43,626 123,409
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (23,561) --
--------- ---------
Net cash used by investing activities (23,561) --
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in notes payable (16,666) (16,667)
Reduction in mortgage payable (23,361) (23,616)
--------- ---------
Net cash used by financing activities (40,027) (40,283)
--------- ---------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (19,962) 83,126
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 423,615 97,469
--------- ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 403,653 $ 180,595
========= =========
CASH PAID DURING THE PERIOD FOR INTEREST $ 287,157 $ 281,727
========= =========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1996
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1996 $ (221,228) $(2,068,805) $(2,290,033)
NET LOSS (161) (15,974) (16,135)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
MARCH 31, 1996 $ (221,389) $(2,084,779) $(2,306,168)
=========== =========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1996
(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 March
31, 1996 and December 31, 1995 and the results of its operations for the
three months ended March 31, 1996 and 1995 and its cash flows for the
three months ended March 31, 1996 and 1995.
The accounting policies followed by the Partnership are set forth in Note
1 to the Partnership financial statements in the 1995 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 three months ended March 31, 1996 and 1995
relating to the Griffin Companies:
1996 1995
---- ----
Management fees $ 48,181 $ 46,806
Supervisory fees $ 7,572 $ 6,150
3. TAXABLE LOSS
The net loss shown on the statement of operations is reconciled to the
taxable loss as follows:
For the Three Months
Ended March 31,
1996 1995
---- ----
Net loss per statement of operations $ 16,135 $ 55,176
Excess of tax depreciation over
book depreciation 39,403 38,316
---------- ----------
Taxable loss $ 55,538 $ 93,492
========== ==========
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 March 31, 1996, the Partnership had cash and cash equivalents of $403,653
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 1996.
Distributions to partners were not made during the first quarter of 1996. 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.
Gross rents of the properties were $948,028 and $911,134 for the first quarter
of 1996 and 1995 respectively. This is an increase of $36,894 or a 4.0% increase
in average apartment rental rates. Vacancy was $85,083 or 9.0% of gross rents
and $84,638 or 9.3% for the first quarter of 1996 and 1995 respectively.
Operating expenses were $469,128 and $463,590 for the first quarter of 1996 and
1995 respectively, for a minor increase of only $5,538 or 1%. Interest expense
was $283,760 and $285,691 for the first quarter of 1996 and 1995 respectively.
The decrease of $1,931 was due to a decrease of $89,725 in the mortgage note
payable principle balance upon which the interest is calculated. The excess of
total expenses over revenue resulted in net losses from operations of $16,135
and $55,176 in the first quarter of 1996 and 1995 respectively. This reduction
in losses of $39,581 is essentially a result of increased revenue due to rising
rental rates.
Ravenwood Apartments is currently being marketed for sale. A sale of the
property is currently being negotiated, however, the property is not currently
under any formal purchase contract.
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
<TABLE>
<CAPTION>
1995 1996
------------------------------- --------------------------------
at at
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
1. Presidential
Estates Apts.
Indianapolis, IN 89% 95% 93% 90% 92%
2. Brooklane Apts.
Brown Deer, WI 95% 99% 98% 96% 92%
3. Ravenwood Apts.
Cincinnati, OH 86% 91% 91% 86% 87%
</TABLE>
GRIFFIN REAL ESTATE FUND-IV,
A LIMITED PARTNERSHIP
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
On September 21, 1995 Everest Investors, LLC ("Everest") filed a
lawsuit against Griffin Associates IV ("General Partner"), the general
partner of Griffin Real Estate Fund IV, A Limited Partnership
("Partnership"). The lawsuit alleged that the General Partner had
wrongfully denied Everest access to the books and records of the
Partnership. The court 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 complied with this
court order. Everest continued to seek access to additional books and
records of the Partnership beyond the scope of the court order. The
General Partner vigorously defended the Partnership's right to keep its
proprietary records from being reviewed by Everest, who is not a
limited partner of the Partnership. The General Partner filed for a
dismissal of the matter. The court heard arguments on September 29,
1995, October 26, 1995 and November 17, 1995. On November 27, 1995 the
court dismissed Everest's lawsuit. Everest appealed the dismissal on
March 12, 1996 and a decision is pending.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) 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: May 15, 1996 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Associates-IV, A Limited
Partnership
Date: May 15, 1996 By /s/ Larry D. Fransen
Larry D. Fransen, A
General Partner for Griffin
Associates-IV, A Limited
Partnership
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 403,653
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,287,403
<PP&E> 16,648,567
<DEPRECIATION> 7,182,473
<TOTAL-ASSETS> 10,753,497
<CURRENT-LIABILITIES> 719,644
<BONDS> 12,340,021
0
0
<COMMON> 0
<OTHER-SE> (2,306,168)<F1>
<TOTAL-LIABILITY-AND-EQUITY> 10,753,497
<SALES> 0
<TOTAL-REVENUES> 888,175
<CGS> 0
<TOTAL-COSTS> 625,344
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 278,966
<INCOME-PRETAX> (16,135)
<INCOME-TAX> 0
<INCOME-CONTINUING> (16,135)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (16,135)
<EPS-PRIMARY> (1.21)<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 loss per limited partnership unit.
</FN>
</TABLE>
