UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR PERIOD ENDING JUNE 30, 1996.
Commission File Number: 2-88845-A
Exact name of Registrant as specified in its charter:
Florida Income Fund, L.P.
State or other Jurisdiction of incorporation or organization:
Iowa
I.R.S. Employer Identification Number: 59-2337910
Address of Principal Executive Offices:
12800 University Drive, Ste 675
Fort Myers, FL 33907
Registrant's Telephone Number, including Area Code:
(941) 481-2011
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
The registrant 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 has been subject
to such filing requirements for the past 90 days.
PAGE 1<PAGE>
FLORIDA INCOME FUND, L.P.
INDEX
PAGE NO.
PART I - FINANCIAL INFORMATION
Balance Sheets at June 30, 1996
and December 31, 1995 . . . . . . . . . . . . . . . . . .3
Statements of Income for the Three and Six
Months Ended June 30, 1996 and 1995 . . . . . . . . . . .4
Statements of Cash Flows for the Six
Months Ended June 30, 1996 and 1995 . . . . . . . . . . .5
Notes to Financial Statements . . . . . . . . . . . . . .6
Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . .6-8
PART II - OTHER INFORMATION
Items 1 through 6 . . . . . . . . . . . . . . . . . . . .9
PART III - SIGNATURES . . . . . . . . . . . . . . . . . . . 10
COVER PAGE
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
PAGE 2<PAGE>
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<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND, L.P.
BALANCE SHEETS
(Unaudited)
June 30 Dec. 31
1996 1995
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 351,130 72,979
A/R Trade 42,847 21,993
Prepaid Expenses and Other 103,322 60,457
_________ _________
Total Current Assets 497,299 155,429
Rental Properties, Net of Accumulated
Depreciation of $3,243,682 at
06/30/96 and $3,088,938 at 12/31/95 8,036,095 8,187,168
Intangible Assets
Deferred Loan Costs 98,193 119,022
_________ _________
Total Assets 8,631,587 8,461,619
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 2,550,346 2,573,342
Accounts Payable - Trade 40,980 52,122
Accrued Expenses 128,708 67,899
Customer and Security Deposits 104,635 128,605
Deposit on Sale of Rental Property 325,883 329,323
_________ _________
Total Current Liabilities 3,150,552 3,151,291
NOTES AND MORTGAGES PAYABLE 2,315,497 2,326,353
NOTES AND MORTGAGES PAYABLE TO AFFILIATES 1,400,000 1,400,000
PARTNERS'S CAPITAL
General Partners Capital (97,508) (92,291)
Limited Partners Capital 1,576,165 1,676,266
Net Income 286,881 -0-
_________ _________
Total Partners Equity 1,765,538 1,583,975
Total Liabilities and
Partners Capital 8,631,587 8,461,619
See Accompanying Notes to the Financial Statements
</TABLE>
PAGE 3<PAGE>
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF INCOME
(Unaudited)
For Three Months Ended For Six Months Ended
06/30/96 06/30/95 06/30/96 06/30/95
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Rental Income 647,914 542,783 1,435,708 1,197,211
Interest 4,536 0 4,536 0
________ _______ _________ _________
Total Income 652,450 542,783 1,440,244 1,197,211
COSTS AND EXPENSES:
Depreciation 77,373 76,090 154,745 152,179
Property Expenses 315,928 300,477 643,387 617,486
Interest and
Financing costs 168,957 174,633 338,385 346,334
Other Expense 8,423 4,845 16,846 15,416
________ _______ _________ _________
Total Costs and
Expenses 570,681 556,046 1,153,363 1,131,415
Net Income (Loss) 81,769 (13,262) 286,881 65,796
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 4<PAGE>
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
For Six Months Ended
06/30/96 06/30/95
____________________
<S> <C> <C>
Cash flows from operating activities
Net Income 286,881 65,796
Adjustments to reconcile net income to net
cash provided by operational activities
Depreciation and Amortization 171,591 167,595
(Increase) decrease in accounts receivables ( 20,854) 9,373
(Increase) decrease in prepaid expenses ( 42,865) ( 33,290)
Increase (decrease) in accounts
payable and accrued expenses 49,668 (143,986)
Increase (decrease) in security deposits ( 23,970) 5,992
________ _________
Net cash flows provided by operating activities 420,451 71,480
Cash flows from investing activities
Improvements to rental properties ( 3,129) (387,577)
_________ _________
Net cash used in investing activities ( 3,129) (387,577)
Cash flows from financing activities
Proceeds of long term borrowings
from affiliated companies -0- 134,000
Proceeds of long term borrowings
from unaffiliated companies -0- 150,000
Repayment of long term borrowings
to unaffiliated companies ( 33,852) ( 23,050)
Loan origination fees paid -0- ( 44,403)
Partner distributions paid (105,319) (105,368)
_________ _________
Net cash flows used by financing activities 139,171 111,179
Net increase (decrease) in cash 278,151 (204,918)
Cash December 31 72,979 522,415
Cash June 30 351,130 317,497
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
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FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
JUNE 30, 1996
(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, 1995. 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, 1996, and June 30,
1995, the Partnership paid $4,677 and $32,352 in Asset 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 $6,450 were incurred during the second quarter
of 1996. This compares to $113,397 of costs that were incurred
during the second quarter of 1995.
The Seaside Inn is managed by South Seas Resorts Company, an
affiliate of the managing general partner. During the quarter,
the Partnership paid $23,156 to South Seas. This compares to
$19,529 which were paid to South Seas in the second quarter of
1995.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1995, 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, 1996, was $351,130. This compares to its
cash position of $72,979 at December 31, 1995. At June 30, 1995,
the Partnership's cash position was $317,497.
PAGE 6
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Liquidity - Continued
The increase in cash from December 31, 1995, to June 30, 1996,
was due to the following factors. Cash provided by operations
was $420,451, payments for property improvements were $3,129 and
cash flows used by financing activities were $139,171.
Partner distributions totalled $105,368. The Partnership's total
investment in properties for its portfolio at June 30, 1996 was
$11,279,777. This compares to its total property investment at
December 31, 1995, of $11,426,749. 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 first mortgage on the Gallery Motel (now called Seaside Inn)
in the amount of $2,525,346 has been extended to November, 1996.
An affiliate of the General Partner has an option to purchase the
motel on or before January 7, 1997. A majority if the limited
partners must first approve the terms of sale and a modification
of the partnership agreement.
The Partnership secured a private capital source to make a
$650,000 second mortgage loan on Seaside Inn. This money was
used to renovate the motel. The Partnership completed the
renovation in 1995.
As of June 30, 1996, the Partnership had outstanding debt of
$6,265,843 compared to $6,416,892 at June 30, 1995. The
Partnership's outstanding debt as of December 31, 1995, was
$6,299,695.
Results of Operations
The Partnership's net income for the six months ended June 30,
1996, was $286,881. This compares with a net loss of $13,262 for
the same period a year ago.
The major variance from a year ago is an increase in rental
revenue.
For the six month period ended June 30, 1996, total revenue
increased by $238,497 over the same period the prior year. This
increase was mainly attributable to the Gallery Motel. The
Gallery Motel's revenue increased mainly due to an increase in
number of room nights rented due to the motel renovations in
1995. 842 more rooms were rented in the six months of 1996 as
compared to the first six months of 1995. Average daily rate
increased from $173.85 to $189.43.
PAGE 7<PAGE>
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Results of Operation - Continued
At June 30, 1996, Corporate Park was 100% occupied, Villas Plaza
was 73% occupied, and Edison Square was 93% occupied.
For the six months ended June 30, 1996, depreciation expense has
increased by $2,566.
Property expenses increased $25,901 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 decreased $7,949 mainly
due to a decrease in the outstanding debt.
The Partnership indebtedness decreased by $151,049 from the time
period June 30, 1995, to June 30, 1996. As of June 30, 1996, the
Partnership had outstanding debt of $6,265,843 compared to
$6,416,892 at June 30, 1995. The Partnership's outstanding debt
as of December 31, 1995, was $6,299,695. Other expenses
increased $1,430.
Property and equipment has increased from $10,934,452 at June 30,
1995, to $11,279,777 at June 30, 1996. Property and equipment
was $11,426,749 as of December 31, 1995.
For the quarter ended June 30, 1996, the cash distribution to
partners totalled $65,856. The distribution for the six month
period totalled $105,319.
The Partnership's net income for the six months ended June 30,
1996, was $286,881. This compares with a net loss of $13,262 for
the same period a year ago.
For the quarter ended June 30, 1996, and 1995, revenues increased
$105,131. The increase in revenues was primarily attributable to
the Gallery Motel.
At June 30, 1996, and 1995, Corporate Park was 100% and 100%
occupied, Villas Plaza was 73% and 67% occupied and Edison Square
was 93% and 93% occupied.
Property expenses have decreased $11,531 from the previous three
month period. This increase is due to decreases at the Gallery
Motel for salary expense, Travel Agent commissions and marketing.
Interest expense has decreased $471 from the previous three month
period due to the decrease 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
EXHIBITS
27 - Financial Data Schedule
REPORTS ON FORM 8-K
None
PAGE 9<PAGE>
<PAGE>
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)
8/5/96 Lawrence A. Raimondi
President and Director, and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
(SIGNATURE)
8/5/96 Joe K. Blacketer
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and
Accounting Officer)
(SIGNATURE)
PAGE 10
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 351,130
<SECURITIES> 0
<RECEIVABLES> 42,847
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 497,299
<PP&E> 11,279,777
<DEPRECIATION> 3,243,682
<TOTAL-ASSETS> 8,631,587
<CURRENT-LIABILITIES> 3,150,552
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8,631,587
<SALES> 1,435,708
<TOTAL-REVENUES> 1,440,244
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 814,978
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 338,385
<INCOME-PRETAX> 286,881
<INCOME-TAX> 0
<INCOME-CONTINUING> 286,881
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 286,881
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
