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, 1997.
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>
<PAGE>
FLORIDA INCOME FUND, L.P.
INDEX
PART I
FINANCIAL INFORMATION PAGE NO.
Balance Sheets at September 30, 1997
and December 31, 1996 . . . . . . . . . . . . . . . . . .3
Statements of Income for the Three and Nine
Months Ended September 30, 1997 and 1996. . . . . . . . .4
Statements of Cash Flows for the Nine
Months Ended September 30, 1997 and 1996. . . . . . . . .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>
<PAGE>
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND, L.P.
BALANCE SHEETS
(Unaudited)
Sept 30 Dec. 31
1997 1996
________________________
<S> <C> <C>
ASSETS
Current Assets
Cash 95,156 334,144
A/R Trade 41,303 54,295
Prepaid Expenses and Other 86,531 86,025
_______ _________
Total Current Assets 222,990 474,464
Rental Properties, Net of Accumulated
Depreciation of $1,668,978 at
09/30/97 and $3,543,798 at 12/31/96 3,206,881 7,544,846
Intangible Assets
Deferred Loan Costs 51,044 70,001
_________ _________
Total Assets 3,480,915 8,089,311
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 305,782 3,183,070
Accounts Payable - Trade 9,323 59,273
Accrued Expenses 11,523 80,249
Customer and Security Deposits 16,225 141,063
Deposit on Sale of Rental Property 0 425,883
_________ _________
Total Current Liabilities 342,853 3,889,538
NOTES AND MORTGAGES PAYABLE 1,349,353 1,648,231
NOTES AND MORTGAGES PAYABLE TO AFFILIATES 280,000 1,400,000
PARTNERS'S CAPITAL
General Partners Capital (121,815) (113,913)
Limited Partners Capital (2,239,755) 1,265,455
Net Income 3,870,279 0
__________ __________
Total Partners Equity 1,508,709 1,151,542
Total Liabilities and
Partners Capital 3,480,915 8,089,311
See Accompanying Notes to the Financial Statements
</TABLE>
PAGE 3<PAGE>
<PAGE>
<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF INCOME
(Unaudited)
For Three Months Ended For Nine Months Ended
09/30/97 09/30/96 09/30/97 09/30/96
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Sales Proceeds 0 0 8,385,000 0
Rental Income 155,382 489,260 551,111 1,924,968
Interest 15 2,109 42 6,645
________ _______ _________ _________
Total Income 155,397 491,369 8,936,153 1,931,613
COSTS AND EXPENSES:
Cost of Sales 0 0 4,462,275 0
Depreciation 41,248 76,195 135,264 230,940
Property Expenses 58,833 264,331 273,666 907,718
Interest and
Financing costs 55,506 169,184 186,605 507,569
Other Expense 2,688 16,407 8,064 33,253
________ _______ _________ _________
Total Costs and
Expenses 158,275 526,117 5,065,874 1,679,480
Net Income (Loss) (2,878) (34,748) 3,870,279 252,133
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 4<PAGE>
<PAGE>
<TABLE>
<CAPTION>
FLORIDA INCOME FUND, L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)
For Nine Months Ended
09/30/97 09/30/96
______________________
<S> <C> <C>
Cash flows from operating activities
Net Income 3,870,279 252,133
Adjustments to reconcile net income to net
cash provided by operational activities
Cost of Sales 4,230,550 0
Depreciation and Amortization 154,222 264,193
(Increase) decrease in accounts receivables 12,992 (20,478)
(Increase) decrease in prepaid expenses (506) (68,709)
Increase (decrease) in accounts
payable and accrued expenses (118,676) 149,497
Increase (decrease) in security deposits (124,838) (20,229)
__________ ________
Net cash flows provided by operating activities 8,024,023 556,407
Cash flows from investing activities
Improvements to rental properties (27,850) (6,491)
_________ ________
Net cash used in investing activities (27,850) (6,491)
Cash flows from financing activities
Repayments of long term borrowings
to affiliated companies (1,120,000) 0
Repayment of long term borrowings
to unaffiliated companies (3,176,166) (51,035)
Loan origination fees paid -0- 0
Partner distributions paid (3,513,112) (184,345)
Deposit on Sale (425,883) 0
___________ ________
Net cash flows used by financing activities(8,235,161) 235,380
Net increase (decrease) in cash (238,988) 314,536
Cash December 31 334,144 72,979
Cash Sept 30 95,156 387,515
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
SEPTEMBER 30, 1997
(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, 1996. 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, 1997, and
September 30, 1996, the Partnership paid $2,995 and $5,041 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 $6,450 were incurred
during the third quarter of 1997. This compares to $6,450 of
costs that were incurred during the third quarter of 1996.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1996, 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, 1997, was $95,156. This compares to
its cash position of $334,144 at December 31, 1996. At September
30, 1996, the Partnership's cash position was $387,515.
PAGE 6<PAGE>
<PAGE>
Liquidity - Continued
The decrease in cash from December 31, 1996, to September 30,
1997, was primarily due to the following factors. Cash provided
by operations was $8,024,023, payments for property improvements
were $27,850, principal pay downs of debt totalled $4,296,116 and
deposit on sale decreased $425,883. Partner distributions
totalled $3,513,112. The Partnership's total investment in
properties for its portfolio at September 30, 1997, was
$4,875,859. This compares to its total property investment at
December 31, 1996 of $11,088,644.
The management company, South Seas Resorts Company (SSRC), an
affiliate of the general partner signed an option agreement to
acquire the Seaside Inn on or before January 1997, at a price of
$6,485,000. This price assumed renovations of $335,000 of which
$330,000 has been funded to date. Since the transaction was
between affiliated companies, the general partner was required to
seek approval from the limited partners of (1) the option terms
and (2) an amendment of the partnership agreement to permit the
sale to an affiliate. That approval was solicited in August 1996.
Once approved the transaction still represented an option,
however SSRC closed on the purchase of this property in January
1997 as reported in an 8-K filed January 15, 1997. The sale
generated approximately $2,725,000 which was available for
distribution to the partners.
The Partnership sold the Villas Plaza to an unrelated purchaser
on March 20, 1997 at a price of $1,900,000 as reported in an 8-K
filed on April 2, 1997. The sale generated approximately
$620,000 which was available for distribution to the partners.
The sale of Seaside Inn and the Villas Plaza resulted in a
material reduction in both partnership assets and partnership
debt.
As of September 30, 1997, the Partnership had a contract to sell
Corporate Park for a price of $750,000. The sale closed on
October 1, 1997 as reported in an 8-K filing dated October 1,
1997.
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 Partnerships outstanding debt as of September 30, 1997 was
$1,935,135. This compares to debt outstanding December 31, 1996
of $6,231,301. The Partnership had $6,248,660 of outstanding
debt at September 30, 1996.
PAGE 7<PAGE>
<PAGE>
Results of Operations
The Partnership's net income for the nine months ended September
30, 1997, was $3,870,279. This compares with net income of
$252,133 for the same period a year ago.
The major variances from a year ago are due primarily to the sale
of the two properties referenced above.
For the nine month period ended September 30, 1997, total revenue
increased by $7,004,540 as compared to the same period one year
ago. This increase was primarily attributable to the property
sales.
Corporate Park's and Edison Square's revenue increased mainly due
to increases in lease rates. At September 30, 1997, Corporate
Park was 100% occupied, and Edison Square was 86% occupied.
For the nine months ended September 30, 1997, depreciation
expense has decreased by $95,676.
Property expenses decreased $634,052 for the nine month period
primarily because of the sales of the Seaside Inn and the Villas
Plaza.
For the nine months, interest expense has decreased $320,964
mainly due to a decrease in the amount of outstanding debt.
The Partnership indebtedness decreased by $4,313,525 from the
time period September 30, 1996, to September 30, 1997. As of
September 30, 1997, the Partnership had outstanding debt of
$1,935,135 compared to $6,248,660 at September 30, 1996. The
Partnership's outstanding debt as of December 31, 1996, was
$6,231,301. Other expenses decreased $25,189.
Property and equipment has decreased from $11,283,139 at
September 30, 1996, to $4,875,859 at September 30, 1997.
Property and equipment was $11,088,644 as of December 31, 1996.
For the quarter ended September 30, 1997, the cash distribution
to partners totalled $39,513. The distributions for the nine
month period totalled $3,513,112.
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
NONE
ITEM 6. EXHIBITS AND 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)
10/31/97 By: /s/ LAWRENCE A. RAIMONDI
--------------------------------
Lawrence A. Raimondi
President, Director and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
10/31/97 By: /s/ JOE K. BLACKETER
--------------------------------
Joe K. Blacketer
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and Accounting
Officer)
PAGE 10
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 95,156
<SECURITIES> 0
<RECEIVABLES> 41,303
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 222,990
<PP&E> 4,875,859
<DEPRECIATION> 1,668,978
<TOTAL-ASSETS> 3,480,915
<CURRENT-LIABILITIES> 342,853
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,480,915
<SALES> 8,385,000
<TOTAL-REVENUES> 8,936,153
<CGS> 4,462,275
<TOTAL-COSTS> 4,462,275
<OTHER-EXPENSES> 416,994
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 186,605
<INCOME-PRETAX> 3,870,279
<INCOME-TAX> 0
<INCOME-CONTINUING> (52,446)
<DISCONTINUED> 3,922,725
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,870,279
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
