FLORIDA INCOME FUND, L.P.
INDEX
PART I
FINANCIAL INFORMATION . . . . . . . . . . . . . PAGE NO.
Balance Sheets at September 30, 1995
and December 31, 1994 . . . . . . . . . . . . . . . . . .2
Statements of Income for the Three and Nine
Months Ended September 30, 1995 and 1994. . . . . . . . .3
Statements of Cash Flows for the Three and Nine
Months Ended September 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
PAGE 1<PAGE>
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<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND, L.P.
BALANCE SHEETS
(Unaudited)
Sept. 30 Dec. 31
1995 1994
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 37,982 522,415
A/R Trade 30,270 39,114
Prepaid Expenses and Other 84,249 50,240
_______ _______
Total Current Assets 152,501 611,769
Rental Properties, Net of Accumulated
Depreciation of $3,143,636 at
09/30/95 and $2,915,367 at 12/31/94 8,107,530 7,631,508
Intangible Assets
Deferred Loan Costs 112,843 92,394
_________ _________
Total Assets 8,372,874 8,335,671
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 65,164 2,601,993
Current maturities of notes
payable to affiliates -0- 1,350,000
Accounts Payable - Trade 76,764 145,417
Accrued Expenses 125,836 170,877
Customer and Security Deposits 118,942 97,067
_________ _________
Total Current Liabilities 386,706 4,365,354
NOTES AND MORTGAGES PAYABLE 6,344,579 2,203,949
PARTNERS'S CAPITAL
General Partners Capital (88,440) (83,172)
Limited Partners Capital 1,749,440 1,849,540
Net Income (19,411) -0-
__________ __________
Total Partners Equity 1,641,589 1,766,368
Total Liabilities and
Partners Capital 8,372,874 8,335,671
See Accompanying Notes to the Financial Statements
</TABLE>
PAGE 2<PAGE>
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF INCOME
(Unaudited)
For Three Month Ended For Nine Months Ended
09/30/95 09/30/94 09/30/95 09/30/94
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Rental Income 461,609 455,577 1,658,820 1,610,688
________ ________ __________ _________
Total Income 461,609 455,577 1,658,820 1,610,688
COSTS AND EXPENSES:
Depreciation 76,089 73,640 228,268 220,922
Property Expenses 283,322 271,872 900,808 820,967
Interest and
Financing costs 177,350 149,608 523,684 430,423
Other Expense 10,055 4,597 25,471 11,643
________ ________ __________ _________
Total Costs and
Expenses 546,816 499,717 1,678,231 1,483,955
Net Income (Loss) (85,207) (44,140) (19,411) 126,733
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 3<PAGE>
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
For Nine Months Ended
09/30/95 09/30/94
____________________
<S> <C> <C>
Cash flows from operating activities
Net Income (Loss) ( 19,411) 126,733
Adjustments to reconcile net income to net
cash provided by operational activities
Depreciation and Amortization 253,739 232,565
(Increase) decrease in accounts receivables 8,844 ( 33,385)
(Increase) decrease in prepaid expenses ( 34,009) ( 119,306)
Increase (decrease) in accounts
payable and accrued expenses (113,693) 173,671
Increase (decrease) in security deposits 21,875 18,171
_________ ___________
Net cash flows provided by operating activities 117,345 398,449
Cash flows from investing activities
Improvements to rental properties (704,291) ( 321,090)
_________ ___________
Net cash used in investing activities (704,291) ( 321,090)
Cash flows from financing activities
Net borrowings (prepayments)
under line of credit agreement -0- ( 141,000)
Proceeds of long term borrowings
from affiliated companies 93,369 -0-
Proceeds of long term borrowings
from unaffiliated companies 200,000 1,725,000
Repayment of long term borrowings
to unaffiliated companies ( 39,568) (1,416,405)
Loan origination fees paid ( 45,920) ( 78,656)
Partner distributions paid (105,368) ( 184,394)
_________ ___________
Net cash flows used by financing activities 102,513 ( 95,455)
Net increase (decrease) in cash (484,433) ( 18,096)
Cash December 31 522,415 69,940
Cash September 30 37,982 51,844
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 4<PAGE>
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FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
SEPTEMBER 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 September 30, 1995, and
September 30, 1994, the Partnership paid $27,795 and $26,173 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 $108,438 were incurred
during the third quarter of 1995. This compares to $88,237 of
costs that were incurred during the third 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 September 30, 1995, was $37,982. This compares to
its cash position of $522,415 at December 31, 1994. At September
30, 1994, the Partnership's cash position was $51,844.
The decrease in cash from December 31, 1994, to September 30,
1995, was due to the following factors. Cash provided by
operations was $117,345, payments for property improvements were
$704,291 and cash flows from financing activities were $102,513.
PAGE 5
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Liquidity - Continued
The increase in cash flow from financing activities was due to
the Partnership receiving an additional $200,000 from an
unaffiliated partnership to fund the Gallery Motel improvements
and to refinance the Villas Plaza and Corporate Park loans. 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 $50,000 on this loan as of
September 30, 1995, making the loan balance on this mortgage
$1,400,000 as of September 30, 1995. 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 $45,920 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 September 30, 1995 was $11,251,166. 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 extended the first mortgage loan on Corporate
Office Park and Villas Plaza Shopping Center for $1,400,000 at a
rate of 12%. The loan 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.
During the first nine months, the Partnership expended
approximately $675,000 for the renovation phase at the Gallery
Motel. The Partnership anticipates completion of the renovation
to occur in the fourth quarter of 1995.
As of September 30, 1995, the Partnership had outstanding debt of
$6,409,743 compared to $5,503,249 at September 30, 1994. The
Partnership's outstanding debt as of December 31, 1994, was
$6,155,942.
PAGE 6<PAGE>
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Results of Operations
The Partnership's net loss for the nine months ended September
30, 1995, was $19,411. This compares with net income of $126,733
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 nine month period ended September 30, 1995, and 1994,
total revenue increased by $48,132. This increase was
attributable to the following properties:
The Gallery Motel decreased $20,933; Edison Square
increased $49,535; Villas Plaza decreased $13,428;
Corporate Park increased $32,958. The Gallery Motel's
revenue decreased mainly due to a decrease in number of
room nights rented due to the motel renovations. 718
less rooms were rented in the nine months of 1995 as
compared to the first nine months of 1994. Average
daily rate increased from $142.37 to $156.74 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 nine months of
1995. At September 30, 1995, Corporate Park was 100% occupied,
Villas Plaza was 74% occupied, and Edison Square was 93%
occupied.
For the nine months ended September 30, 1995, depreciation
expense has increased by $7,346. As of September 30, 1995, the
Partnership has paid $704,291 for property improvements. These
asset additions are primarily improvements at the Gallery Motel.
Property expenses increased $79,841 for the nine month period
primarily because of higher expenses incurred at the Gallery
Motel for reservations, travel agent commissions and marketing.
For the nine months, interest expense has increased $93,261
mainly due to an increase in the Edison Square loan and the
additional loan for the Gallery improvements.
The Partnership indebtedness increased by $1,603,801 from the
time period September 30, 1994, to September 30, 1995. As of
September 30, 1995, the Partnership had outstanding debt of
$6,409,743 compared to $5,503,249 at September 30, 1994. The
Partnership's outstanding debt as of December 31, 1994, was
$6,155,942. Other expenses increased $13,828 due to loan costs
incurred for the Gallery Motel, Edison Square, Corporate Park and
Villas Plaza loan extensions.
PAGE 7<PAGE>
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Results of Operation - Continued
Property and equipment has increased from $10,414,221 at
September 30, 1994, to $11,251,166 at September 30, 1995.
Property and equipment was $10,546,875 as of December 31, 1994.
The distribution for the nine month period totalled $105,368.
The Partnership did not make a distribution during the quarter
ending September 30, 1995, due to renovations occurring at the
Gallery and additional vacancies at Villas Plaza.
The Partnership's net loss for the three months ended September
30, 1995, was $85,207. This compares with net loss of $44,140
for the same period a year ago.
For the quarter ended September 30, 1995, and 1994, revenues
increased $48,132. The increase in revenues was attributed to
the following properties: Corporate Park increased $32,958,
Edison Square increased $49,535, Villas Plaza decreased $13,428
and Gallery Motel decreased $20,933.
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 September 30, 1995, and 1994, Corporate Park
was 100% and 100% occupied, Villas Plaza was 74% and 91% occupied
and Edison Square was 93% and 90% occupied.
Property expenses have increased $11,450 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 $27,742 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 8-K
(a) EXHIBITS
None
(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)
11/6/95 Lawrence A. Raimondi
President and Director, and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
(SIGNATURE)
11/6/95 Michael J. Scullion
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and
Accounting Officer)
(SIGNATURE)
PAGE 10<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 37,982
<SECURITIES> 0
<RECEIVABLES> 30,270
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 152,501
<PP&E> 11,251,166
<DEPRECIATION> 3,143,636
<TOTAL-ASSETS> 8,372,874
<CURRENT-LIABILITIES> 386,706
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8,372,874
<SALES> 0
<TOTAL-REVENUES> 1,658,820
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,154,547
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 523,684
<INCOME-PRETAX> (19,411)
<INCOME-TAX> 0
<INCOME-CONTINUING> (19,411)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (19,411)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
