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 SEPTEMBER 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>
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FLORIDA INCOME FUND, L.P.
INDEX
PART I
FINANCIAL INFORMATION. . . . . . . . . . . . . . . . PAGE NO.
Balance Sheets at September 30, 1996
and December 31, 1995. . . . . . . . . . . . . . . . . . . .3
Statements of Income for the three and Nine
Months Ended September 30, 1996 and 1995 . . . . . . . . . .4
Statements of Cash Flows for the Nine
Months Ended September 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. . . . . . . . . . . . . . . . . . . . 9-10
PART III
Signatures . . . . . . . . . . . . . . . . . . . . . . . . 11
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)
Sept. 30 Dec. 31
1996 1995
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 387,515 72,979
A/R Trade 42,471 21,993
Prepaid Expenses and Other 129,166 60,457
_________ _________
Total Current Assets 559,152 155,429
Rental Properties, Net of Accumulated
Depreciation of $3,319,877 at
09/30/96 and $3,088,938 at 12/31/95 7,963,262 8,187,168
Intangible Assets
Deferred Loan Costs 81,787 119,022
_________ _________
Total Assets 8,604,201 8,461,619
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 2,539,192 2,573,342
Accounts Payable - Trade 129,959 52,122
Accrued Expenses 139,559 67,899
Customer and Security Deposits 108,376 128,605
Deposit on Sale of Rental Property 325,883 329,323
_________ _________
Total Current Liabilities 3,242,969 3,151,291
NOTES AND MORTGAGES PAYABLE 2,309,468 2,326,353
NOTES AND MTGS PAYABLE TO AFFILIATES 1,400,000 1,400,000
PARTNERS'S CAPITAL
General Partners Capital (101,459) (92,291)
Limited Partners Capital 1,501,090 1,676,266
Net Income 252,133 -0-
_________ _________
Total Partners Equity 1,651,764 1,583,975
Total Liabilities and
Partners Capital 8,604,201 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 Nine Months Ended
09/30/96 09/30/95 09/30/96 09/30/95
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Rental Income 489,260 461,609 1,924,968 1,658,820
Interest 2,109 6,645
_______ _______ _________ _________
Total Income 491,369 461,609 1,931,613 1,658,820
COSTS AND EXPENSES:
Depreciation 76,195 76,089 230,940 228,268
Property Expenses 264,331 283,322 907,718 900,808
Interest and
Financing costs 169,184 177,350 507,569 523,684
Other Expense 16,407 10,055 33,253 25,471
_______ _______ _________ _________
Total Costs and
Expenses 526,117 546,816 1,679,480 1,678,231
Net Income (Loss) (34,748) (85,207) 252,133 (19,411)
</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 Nine Months Ended
09/30/96 09/30/95
____________________
<S> <C> <C>
Cash flows from operating activities
Net Income (Loss) 252,133 ( 19,411)
Adjustments to reconcile net income to net
cash provided by operational activities
Depreciation and Amortization 264,193 253,739
(Increase) decrease in accounts receivables ( 20,478) 8,844
(Increase) decrease in prepaid expenses ( 68,709) ( 34,009)
Increase (decrease) in accounts
payable and accrued expenses 149,497 (113,693)
Increase (decrease) in security deposits ( 20,229) 21,875
_________ _________
Net cash flows provided by operating activities 556,407 117,345
Cash flows from investing activities
Improvements to rental properties ( 6,491) (704,291)
_________ _________
Net cash used in investing activities ( 6,491) (704,291)
Cash flows from financing activities
Proceeds of long term borrowings
from affiliated companies -0- 93,369
Proceeds of long term borrowings
from unaffiliated companies -0- 200,000
Repayment of long term borrowings
to unaffiliated companies ( 51,035) ( 39,568)
Loan origination fees paid -0- ( 45,920)
Partner distributions paid (184,345) (105,368)
_________ _________
Net cash flows used by financing activities 235,380 102,513
Net increase (decrease) in cash 314,536 (484,433)
Cash December 31 72,979 522,415
Cash September 30 387,515 37,982
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
SEPTEMBER 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 September 30, 1996, and
September 30, 1995, the Partnership paid $5,041 and $27,795 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 third quarter of 1996. This compares to $108,438 of
costs that were incurred during the third 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 $14,040 to South Seas. This compares to
$13,848 which were paid to South Seas in the third 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 September 30, 1996, was $387,515. This compares to
its cash position of $72,979 at December 31, 1995. At September
30, 1995, the Partnership's cash position was $351,130.
PAGE 6
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Liquidity - Continued
The increase in cash from December 31, 1995, to September 30,
1996, was due to the following factors. Cash provided by
operations was $556,407, payments for property improvements were
$6,491 and cash flows used by financing activities were $235,380.
Partner distributions totalled $184,345. The Partnership's total
investment in properties for its portfolio at September 30, 1996
was $11,283,139. 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. The sale of
Gallery Motel (now called Seaside Inn), expected to close in
January, 1997, will have a significant effect on the financial
statements of the partnership.
Capital Resources
The first mortgage on the Seaside Inn in the amount of $2,515,146
has been extended to March, 1997. An affiliate of the General
Partner has a contract to purchase the motel on or before January
7, 1997. A majority of the limited partners have approved the
terms of sale and a modification of the partnership agreement and
the General Partner expects the transaction to be completed.
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 September 30, 1996, the Partnership had outstanding debt of
$6,248,660 compared to $6,409,743 at September 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 nine months ended September
30, 1996, was $252,133. This compares with a net loss of $19,411
for the same period a year ago.
The major variance from a year ago is an increase in rental
revenue.
For the nine month period ended September 30, 1996, total revenue
increased by $272,793 over the same period the prior year. This
increase was mainly attributable to the Seaside Inn. The Seaside
Inn's revenue increased mainly due to an increase in number of
room nights rented due to the motel renovations in 1995. 896
more rooms were rented in the nine months of 1996 as compared to
the nine months of 1995. Average daily rate increased from
$156.66 to $173.07.
PAGE 7<PAGE>
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Results of Operation - Continued
At September 30, 1996, Corporate Park was 100% occupied, Villas
Plaza was 73% occupied, and Edison Square was 93% occupied.
For the nine months ended September 30, 1996, depreciation
expense has increased by $2,672.
Property expenses increased $6,910 for the nine month period
primarily because of higher expenses incurred at the Seaside Inn
for reservations, travel agent commissions and marketing.
For the nine months, interest expense has decreased $16,115
mainly due to a decrease in the outstanding debt.
The Partnership indebtedness decreased by $161,083 from the time
period September 30, 1995, to September 30, 1996. As of
September 30, 1996, the Partnership had outstanding debt of
$6,248,660 compared to $6,409,743 at September 30, 1995. The
Partnership's outstanding debt as of December 31, 1995, was
$6,299,695. Other expenses increased $7,782.
Property and equipment has increased from $11,251,166 at
September 30, 1995, to $11,283,139 at September 30, 1996.
Property and equipment was $11,276,106 as of December 31, 1995.
For the quarter ended September 30, 1996, the cash distribution
to partners totalled $78,977. The distribution for the nine
month period totalled $184,345.
The Partnership's net income for the nine months ended September
30, 1996, was $252,133. This compares with a net loss of $19,411
for the same period a year ago.
For the quarter ended September 30, 1996, and 1995, revenues
increased $29,760. The increase in revenues was primarily
attributable to the Seaside Inn.
At September 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 $43,386 from the previous three
month period. This decrease is due to decreases at the Seaside
Inn for salary expense, Travel Agent commissions and marketing.
Interest expense has increased $227 from the previous three month
period.
PAGE 8<PAGE>
<PAGE>
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
The Partnership has a firm contract to sell the Seaside
Inn with a closing scheduled to occur in January, 1997.
The selling price will be $6,485,000. The Purchaser
has a total of $435,000 as an at-risk deposit.
The sales proceeds will be used primarily to (1) repay
debt, (2) distribute to partners (3) establish
maintenance reserves and (4) pay closing costs.
Following is the estimated use of proceeds:
Selling Price $6,485,000.00
Less Estimated Costs of Sale:
Closing Costs $ 74,000.00
Payoff First Mortgage Balance $2,525,000.00
Payoff Second Mortgage Balance $ 650,000.00
Credit for funds already invested
in property by Purchaser $ 335,000.00
Reserves for capital improvements to
other Partnership properties $ 151,000.00
Estimated Cash Available for Distribution $2,750,000.00
Estimated Cash Available per each $1000
investment unit $ 549.45
PAGE 9<PAGE>
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ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
NONE
REPORTS ON FORM 8-K
NONE
PAGE 10<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)
10/29/96 By: /s/ LAWRENCE A. RAIMONDI
--------------------------------
Lawrence A. Raimondi
President, Director and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
10/29/96 By: /s/ JOE K. BLACKETER
--------------------------------
Joe K. Blacketer
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and Accounting
Officer)
PAGE 11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 387,515
<SECURITIES> 0
<RECEIVABLES> 42,471
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 559,152
<PP&E> 11,283,139
<DEPRECIATION> 3,319,877
<TOTAL-ASSETS> 8,604,201
<CURRENT-LIABILITIES> 3,242,969
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8,604,201
<SALES> 1,924,968
<TOTAL-REVENUES> 1,931,613
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,171,911
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 507,569
<INCOME-PRETAX> 252,133
<INCOME-TAX> 0
<INCOME-CONTINUING> 252,133
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 252,133
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
