FLORIDA INCOME FUND, L.P.
INDEX
PART I
FINANCIAL INFORMATION . . . . . . . . . . . . . PAGE NO.
Balance Sheets at June 30, 1995
and December 31, 1994 . . . . . . . . . . . . . . . . . .2
Statements of Income for the Three and Six
Months Ended June 30, 1995 and 1994 . . . . . . . . . . .3
Statements of Cash Flows for the Three and Six
Months Ended June 30, 1995 and 1994 . . . . . . . . . . .4
Notes to Financial Statements . . . . . . . . . . . . . .5
Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . .5-8
PART II
OTHER INFORMATION
Items 1 through 6 . . . . . . . . . . . . . . . . . . . .9
PART III
Signatures. . . . . . . . . . . . . . . . . . . . . . . 10
COVER PAGE
EXHIBIT 27 - Financial Data Schedule
EXHIBIT 99.A
EXHIBIT 99.B
PAGE 1<PAGE>
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<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND, L.P.
BALANCE SHEETS
(Unaudited)
June 30 Dec. 31
1995 1994
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 317,497 522,415
A/R Trade 29,741 39,114
Prepaid Expenses and Other 83,530 50,240
_______ _______
Total Current Assets 430,768 611,769
Rental Properties, Net of Accumulated
Depreciation of $3,067,546 at
06/30/95 and $2,915,367 at 12/31/94 7,866,906 7,631,508
Intangible Assets
Deferred Loan Costs 121,380 92,394
_________ _________
Total Assets 8,419,054 8,335,671
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 70,605 2,601,993
Current maturities of notes
payable to affiliates -0- 1,350,000
Accounts Payable - Trade 79,879 145,417
Accrued Expenses 92,428 170,877
Customer and Security Deposits 103,059 97,067
_________ _________
Total Current Liabilities 345,971 4,365,354
NOTES AND MORTGAGES PAYABLE 6,346,287 2,203,949
PARTNERS'S CAPITAL
General Partners Capital (88,440) (83,172)
Limited Partners Capital 1,749,440 1,849,540
Net Income 65,796 -0-
__________ __________
Total Partners Equity 1,726,796 1,766,368
Total Liabilities and
Partners Capital 8,419,054 8,335,671
See Accompanying Notes to the Financial Statements
</TABLE>
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF INCOME
(Unaudited)
For Three Months Ended For Six Months Ended
06/30/95 06/30/94 06/30/95 06/30/94
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Rental Income 542,783 509,436 1,197,211 1,155,111
________ _______ _________ _________
Total Income 542,783 509,436 1,197,211 1,155,111
COSTS AND EXPENSES:
Depreciation 76,090 73,642 152,179 147,282
Property Expenses 300,477 256,549 617,486 549,095
Interest and
Financing costs 174,633 137,443 346,334 280,815
Other Expense 4,845 3,268 15,416 7,046
________ _______ _________ _________
Total Costs and
Expenses 556,046 470,902 1,131,415 984,238
Net Income (Loss) (13,262) 38,534 65,796 170,873
</TABLE>
See Accompanying Notes to the Financial Statements
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
For Six Months Ended
06/30/95 06/30/94
____________________
<S> <C> <C>
Cash flows from operating activities
Net Income 65,796 170,873
Adjustments to reconcile net income to net
cash provided by operational activities
Depreciation and Amortization 167,595 154,328
(Increase) decrease in accounts receivables 9,373 (14,122)
(Increase) decrease in prepaid expenses (33,290) 7,302
Increase (decrease) in accounts
payable and accrued expenses (143,986) 98,629
Increase (decrease) in security deposits 5,992 18,970
________ ________
Net cash flows provided by operating activities 71,480 435,980
Cash flows from investing activities
Improvements to rental properties (387,577) (266,123)
_________ _________
Net cash used in investing activities (387,577) (266,123)
Cash flows from financing activities
Net borrowings (prepayments)
under line of credit agreement -0- 30,000
Proceeds of long term borrowings
from affiliated companies 134,000 -0-
Proceeds of long term borrowings
from unaffiliated companies 150,000 -0-
Repayment of long term borrowings
to unaffiliated companies (23,050) (28,467)
Loan origination fees paid (44,403) (71,613)
Partner distributions paid (105,368) (131,710)
_________ _________
Net cash flows used by financing activities 111,179 (201,790)
Net increase (decrease) in cash (204,918) (31,933)
Cash December 31 522,415 69,940
Cash June 30 317,497 38,007
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 4<PAGE>
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FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
JUNE 30, 1995
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in
accordance with the instructions to Form 10-Q and therefore do
not include all disclosures necessary for a fair presentation of
the Partnerships' financial position, results of operations and
cash flows in conformity with generally accepted accounting
principles, as set forth in the Partnerships' Form 10-K for the
period ended December 31, 1994. In management's opinion, all
adjustments have been made to the financial statements necessary
for a fair presentation of interim periods presented.
NOTE 2 - RELATED PARTY TRANSACTIONS
During the three month period ended June 30, 1995, and June 30,
1994, the Partnership paid $32,352 and $30,807 in Management Fees
to Mariner Capital Management, Inc., the Managing General
Partner, in accordance with the Partnership Agreement. These
expenses are included in the property expenses. The General
Partners and their affiliates are also entitled to reimbursement
of costs (including amounts of any salaries paid to employees or
its affiliates) directly attributable to the operation of the
Partnership that could have been provided by independent parties.
Costs amounting to $113,397 were incurred during the second
quarter of 1995. This compares to $86,855 of costs that were
incurred during the second quarter of 1994.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1994, has been taken from the
Audited Financial Statements at that date.
NOTE 4- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity
The Partnership's cash position including interest bearing
deposits at June 30, 1995, was $317,497. This compares to its
cash position of $522,415 at December 31, 1994. At June 30,
1994, the Partnership's cash position was $38,007.
PAGE 5
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Liquidity - Continued
The decrease in cash from December 31, 1994, to June 30, 1995,
was due to the following factors. Cash provided by operations
was $71,480, payments for property improvements were $387,577 and
cash flows from financing activities were $111,179.
The increase in cash flow from financing activities was due to
the Partnership receiving an additional $150,000 from an
unaffiliated partnership to fund the Gallery Motel improvements.
This increases this loan from $500,000 as of December 31, 1994,
to $650,000 as of June 30, 1995. The Partnership was also
successful in refinancing the first mortgage loan on Villas Plaza
and Corporate Office Park with an affiliated partnership. The
Partnership has received an additional $134,000 on this loan as
of June 30, 1995, making the loan balance on this mortgage
$1,484,000 as of June 30, 1995. The mortgage loan was reduced to
$1,400,000 in July of 1995. The additional $84,000 that was
received in June 1995, was used to repay investors that
participated in the first mortgage loan of $1,350,000. The
increase in the mortgage loan balance from $1,350,000 to
$1,400,000 will be used by the partnership to pay loan costs and
for additional working capital. Partner distributions totalled
$105,368 and the Partnership paid $44,403 in loan fees in order
to extend the Gallery Motel, Edison Square, Corporate Park and
Villas Plaza loans. The Partnership's total investment in
properties for its portfolio at June 30, 1995 was $10,934,452.
This compares to its total property investment at December 31,
1994, of $10,546,875. Other than as discussed herein, there are
no known trends, demands, commitments, events or uncertainties
that in management's opinion will result or are reasonably likely
to result in the registrant's liquidity increasing or decreasing
in any material way.
Capital Resources
The Partnership has a first mortgage loan on Corporate Office
Park and Villas Plaza Shopping Center for $1,350,000 at a rate of
12%. This loan matured December 31, 1994. The Partnership has
obtained a new loan in the amount of $1,400,000 to be used to pay
this loan in full and to cover loan costs which matures December
31, 1997.
The first mortgage on the Gallery Motel in the amount of
$2,566,147 has been extended to November 4, 1996. An affiliate
of the General Partner has extended an offer to purchase the
motel, however no firm contract has been entered into as of this
date. Because an affiliate is the intended purchaser, the sale
will be contingent on approval of a majority of the Limited
Partnership interests.
The Partnership has secured a private capital source to make a
$650,000 second mortgage loan on the Gallery Motel. This money
will be used to renovate the motel. During the first quarter of
1995, the remaining $150,000 loan was funded to the Partnership.
PAGE 6<PAGE>
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Capital Resources - Continued
During the first six months, the Partnership expended
approximately $353,000 for the first renovation phase at the
Gallery Motel. The Partnership anticipates completion of the
renovation to occur in the third quarter of 1995.
As of June 30, 1995, the Partnership had outstanding debt of
$6,416,892 compared to $5,504,782 at June 30, 1994. The
Partnership's outstanding debt as of December 31, 1994, was
$6,155,942.
Results of Operations
The Partnership's net loss for the six months ended June 30,
1995, was $13,262. This compares with net income of $38,534 for
the same period a year ago.
The major variances from a year ago are due to an increase in
rental revenue, and an increase in depreciation expense,
amortization expense, interest expense and property expense.
For the six month period ended June 30, 1995, and 1994, total
revenue increased by $42,115. This increase was attributable to
the following properties:
The Gallery Motel decreased $18,798; Edison Square
increased $36,820; Villas Plaza decreased $6,018;
Corporate Park increased $30,111. The Gallery Motel's
revenue decreased mainly due to a decrease in number of
room nights rented due to the motel renovations. 695
less rooms were rented in the six months of 1995 as
compared to the first six months of 1994. Average
daily rate increased from $153.35 to $175.46 which
mitigated the effect of the lost room night revenue.
Edison Square's revenue increased mainly due to increased
occupancy. Villas Plaza's revenue decreased because of a
decrease in occupancy. Corporate Park's revenue increased due to
the center being 100% occupied during the first six months of
1995. At June 30, 1995, Corporate Park was 100% occupied, Villas
Plaza was 67% occupied, and Edison Square was 93% occupied.
For the six months ended June 30, 1995, depreciation expense has
increased by $4,897. As of June 30, 1995, the Partnership has
paid $387,577 for property improvements. These asset additions
are primarily improvements at the Gallery Motel.
Property expenses increased $68,391 for the six month period
primarily because of higher expenses incurred at the Gallery
Motel for reservations, travel agent commissions and marketing.
For the six months, interest expense has increased $65,519 mainly
due to an increase in the Edison Square loan and the additional
loan for the Gallery improvements.
PAGE 7<PAGE>
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Results of Operation - Continued
The Partnership indebtedness increased by $912,110 from the time
period June 30, 1994, to June 30, 1995. As of June 30, 1995, the
Partnership had outstanding debt of $6,416,892 compared to
$5,504,782 at June 30, 1994. The Partnership's outstanding debt
as of December 31, 1994, was $6,155,942. Other expenses
increased $8,370 due to loan costs incurred for the Gallery
Motel, Edison Square, Corporate Park and Villas Plaza loan
extensions.
Property and equipment has increased from $10,414,221 at June 30,
1994, to $10,934,452 at June 30, 1995. Property and equipment
was $10,546,875 as of December 31, 1994.
For the quarter ended June 30, 1995, the cash distribution to
partners totalled $52,684. The distribution for the six month
period totalled $105,368.
The Partnership's net loss for the three months ended June 30,
1995, was $13,262. This compares with net income of $38,534 for
the same period a year ago.
For the quarter ended June 30, 1995, and 1994, revenues increased
$33,347. The increase in revenues was attributed to the
following properties: Corporate Park increased $21,398, Edison
Square increased $15,474, Villas Plaza decreased $550 and Gallery
Motel decreased $2,975.
Corporate Park and Edison Square's revenue increase was due to
higher occupancy and leases being extended at higher rates.
Villas Plaza's revenue decreased due to lower occupancy and the
Gallery Motel's revenue decreased due to renovations taking rooms
out of service. At June 30, 1995, and 1994, Corporate Park was
100% and 100% occupied, Villas Plaza was 67% and 87% occupied and
Edison Square was 93% and 90% occupied.
Property expenses have increased $43,928 from the previous three
month period. This increase is due to increases at the Gallery
Motel for salary expense, Travel Agent commissions and marketing.
Edison Square's operating costs have increased due to an increase
in rental space from the State of Florida, from 5,200 square feet
to 14,000 square feet.
Interest expense has increased $37,190 from the previous three
month period due to the increase in the amount borrowed.
PAGE 8<PAGE>
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PART II
OTHER INFORMATION
FLORIDA INCOME FUND, L.P.
ITEM 1. LEGAL PROCEEDINGS
NONE
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 10-Q
(a) EXHIBITS
99.A - FLORIDA MORTGAGE PARTNERS LOAN EXTENSION
99.B - COMMERCIAL PROMISSORY NOTE BETWEEN FLORIDA
INCOME FUND, L.P. LIMITED PARTNERSHIP AND
BARNETT BANK
(b) REPORTS ON FORM 8-K
None
PAGE 9<PAGE>
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PART III
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.
FLORIDA INCOME FUND, L.P.
MARINER CAPITAL MANAGEMENT, INC.
MANAGING GENERAL PARTNER
(Registrant)
8/3/95 Lawrence A. Raimondi
President and Director, and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
(SIGNATURE)
8/3/95 Michael J. Scullion
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and
Accounting Officer)
(SIGNATURE)
PAGE 10<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000737829
<NAME> FLORIDA INCOME FUND LP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 317,497
<SECURITIES> 0
<RECEIVABLES> 29,741
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 430,768
<PP&E> 10,934,452
<DEPRECIATION> 3,067,546
<TOTAL-ASSETS> 8,419,054
<CURRENT-LIABILITIES> 345,971
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8,419,054
<SALES> 0
<TOTAL-REVENUES> 1,197,211
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 785,081
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 346,334
<INCOME-PRETAX> 65,796
<INCOME-TAX> 0
<INCOME-CONTINUING> 65,796
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 65,796
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<PAGE>
NON-RECOURSE PROMISSORY NOTE
$1,400,000.00 Fort Myers, Florida
Date: June 19, 1995
FOR VALUE RECEIVED, FLORIDA INCOME FUND, L.P., an Iowa Limited
Partnership, promises to pay in lawful money of the United States
of America to FLORIDA INCOME FUND MORTGAGE PARTNERS II, LTD., an
Ohio Limited Partnership, or order, at 13391 McGregor Boulevard,
SW, Suite 4, Fort Myers, Florida 33919, the sum of ONE MILLION FOUR
HUNDRED THOUSAND AND 00/100 dollars ($1,400,000.00), with interest
on the unpaid principal after June 19, 1995, at an interest rate of
twelve (12%) percent, payable in the following manner:
There shall be due and payable interest only payments
beginning October 1, 1995, and due on each quarterly
anniversary thereafter until December 31, 1997, at which
time the entire principal balance plus accrued interest
shall be due and payable in full.
Payments to be applied first to interest and then to principal. In
case the said installments, or any of them, are not paid when due,
the whole of said sum then remaining unpaid shall forthwith become
due and payable at the option of the holder of this note, and it is
agreed by all parties liable herefor or hereon, that should this
note be collected by legal process or by an attorney to pay all
costs of the same and a reasonable attorney's fee. FLORIDA INCOME
FUND, L.P., an Florida Limited Partnership, whether maker, surety,
guarantor, or endorser, hereby waives all rights of homestead
exemption, and of presentment and demand for payment, protest,
notice of protest and notice of dishonor, and consents that this
note, or any part hereof, may be extended without further notice.
Except as otherwise provided herein: (a) this Note is non-recourse
and secured only by a certain Mortgage (the "Mortgage") and
Collateral Assignment of Leases and Rents as Security for Loan on
real property and Security Agreement on personal property, executed
as of even date herewith; (b) the real property described in the
Mortgage and Collateral Assignment of Lease and Rents and the
personal property described in the UCC-1 Financing Statements and
Security Agreement, all of even date, shall be the sole security
for this Note; and (c) there shall be no personal liability to
Maker nor its partners. Notwithstanding the foregoing, nothing
contained herein shall be construed as doing any of the following:
(1) preventing the holder hereof from exercising any of the rights
granted to the holder under the Mortgage (including, without
limitation, those set forth in Paragraph 3(b) thereof); or
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(2) modifying, qualifying or affecting in any manner whatsoever the
lien and security interests created by the Mortgage or any other
loan document or the enforcement thereof by the holder; or (3)
modifying qualifying or affecting in any manner whatsoever the
personal recourse liability of Maker or any past or future partner,
officer, director or shareholder of Maker for fraud, willful
misrepresentation or wrongful misappropriation or divergence of
insurance proceeds, condemnation proceeds or rents.
There shall be no prepayment penalty paid if this Note is prepaid
during the term.
Maker's Address:
13391 McGregor Boulevard, SW
Fort Myers, Florida 33919
FLORIDA INCOME FUND, L.P. an Iowa
Limited Partnership
By: MARINER CAPITAL MANAGEMENT INC., a
Florida Corporation, General Partner
(Corporate Seal) By:
Lawrence A. Raimondi, President
(SIGNATURE)
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RENEWAL
COMMERCIAL PROMISSORY NOTE
This is a renewal note for which documentary stamps have previously
been paid; no additional documentary stamps are due hereon.
Borrower: Florida Income Fund, L.P., Limited Partnership
Dated: As of June 20th, 1995
$2,566,146.71 Maturity Date: November 4, 1996
The undersigned (jointly and severally, if more than one)
promise(s) to pay to the order of Barnett Bank of Lee County, N.A.
(which together with its successors and assigns is called "Payee")
at its offices at 2000 Main Street, Fort Myers, Florida 33901, the
following:
The principal of Two Million Five Hundred Sixty-Six Thousand One
Hundred Forty-Six and 71/100 Dollars ($2,566,146.71) together with
interest thereon from the date hereof as described below is due on
the date(s) described below:
Interest Calculation Options
The interest rate is a variable rate of 1-1/2 percent per annum simple
interest in excess of the "Base Rate". The Base Rate is the
interest rate announced from time to time as its Prime Rate by
Barnett Banks, Inc., (The Prime Rate is a reference rate for the
information and use of the bank in establishing the actual rates to
be charged its borrowers) and the variable rate applied to this
loan will be adjusted from time to time as the Base Rate changes.
Interest shall be calculated on the basis of a 360 day year for
actual days elapsed.
Payment Options
The payments are due as follows: Principal and Interest payments
are due in multiple payments on the following terms:
As to Principal Payments: Principal payments are due as follows:
Monthly principal payments of $3,400 commencing July 1, 1995 and on
the first day of each calendar month thereafter until maturity on
November 4, 1996, at which time the balance is due in full.
As to interest payments: Interest, to the extent accrued as of any
payment date is due on each day designated above for payment of
principal.
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Collateral
This note is secured by the following specific collateral:
Mortgage and Security Agreement, dated December 23, 1986, and
recorded in O.R. Book 1887, Page 1153, as modified in O.R. Book
1977, Page 43, O.R. Book 1977, Page 44, O.R. Book 2125, Page 3822,
O.R. Book 2125, Page 3824, and of even date herewith, all recorded
or to be recorded in Public Records of Lee County, Florida.
Late Charges
If any payment hereunder (other than a final balloon payment) is
not made within ten days after it is due, the undersigned shall pay
to Payee a late charge equal to five (5%) percent of the late
payment.
General Terms
Notwithstanding anything herein to the contrary, the interest rate
applicable to this note shall at no time exceed the maximum rate
permitted by applicable law whether now or hereafter in effect.
All payments will be applied first to accrued interest and then to
principal. This note may be prepaid at any time.
If this note is not payable on demand, Payee may declare it
immediately due and payable either (i) when permitted under any
security agreement or mortgage now or hereafter in effect securing
payment hereof; or (ii) if Payee deems itself insecure; or (iii)
upon any default in the payment of any sum due hereunder or due by
the maker hereof to the Payee under any other promissory note or
under any security instrument or other written obligation of any
kind now existing or hereafter created; or (iv) upon the
insolvency, bankruptcy, dissolution, death or incompetency of any
maker, endorser or guarantor hereof. After maturity, whether by
acceleration or otherwise, this note shall bear interest at the
maximum rate permitted by law (but in no event at a rate which is
higher than the maximum rate permitted by law).
Each maker, endorser and guarantor, jointly and severally; (1)
promises to pay all collection costs, including a reasonable
attorney's fee, whether incurred in connection with collection,
trial, appeal or otherwise; (ii) waives presentment, demand, notice
of dishonor and protest; and (iii) gives the Payee a security
interest in any funds or other assets from time to time on deposit
with or in possession of the Payee, and the Payee may, at any time,
set off the indebtedness evidenced by this note against any such
funds or other assets. In addition to any specific collateral
listed herein, this note is also secured by all collateral covered
by any security agreement which by its terms covers this note.
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MAKERS:
Florida Income Fund, L.P.,
Limited Partnership
an Iowa limited partnership (a/k/a
Florida Income Fund and Florida
Income Fund, L.P.)
By: Mariner Capital
Management, Inc.
Managing General Partner
By: Lawrence A. Raimondi
Title: President
Address: 13391 McGregor Boulevard
Fort Myers, FL 33919
(SIGNATURE)
Witness or Acknowledgement:
The foregoing instrument was acknowledged before me this 26th day
of June 1995.
Stephanie M. Harris
Notary Public, State of Florida at Large
My Commission Expires: December 21, 1996
(SIGNATURE)
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