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 MARCH 31, 1998.
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 260
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 March 31, 1998
and December 31, 1997 . . . . . . . . . . . . . . . . . .3
Statements of Income for the Three
Months Ended March 31, 1998 and 1997. . . . . . . . . . .4
Statements of Cash Flows for the Three
Months Ended March 31, 1998 and 1997. . . . . . . . . . .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)
March 31 Dec. 31
1998 1997
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 94,224 101,791
A/R Trade 23,711 27,466
Prepaid Expenses and Other 63,697 48,826
_______ _______
Total Current Assets 181,632 178,083
Rental Properties, Net of Accumulated
Depreciation of $1,308,602 at
03/31/98 and $1,281,205 at 12/31/97 2,536,113 2,563,510
Intangible Assets
Deferred Loan Costs 45,251 47,939
_________ _________
Total Assets 2,762,996 2,789,532
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 29,952 29,171
Accounts Payable - Trade 7,022 7,998
Accrued Expenses 29,579 14,600
Customer and Security Deposits 8,926 8,926
_________ _________
Total Current Liabilities 75,479 60,695
NOTES AND MORTGAGES PAYABLE 1,613,588 1,621,375
PARTNERS'S CAPITAL
General Partners Capital 71,487 71,487
Limited Partners Capital 1,015,939 1,035,975
Net Loss (13,497) 0
__________ __________
Total Partners Equity 1,073,929 1,107,462
Total Liabilities and
Partners Capital 2,762,996 2,789,532
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
03/31/98 03/31/97
______________________
<S> <C> <C>
REVENUES:
Sale Proceeds 0 8,385,000
Rental Income 118,739 238,514
Interest Income 14 13
_______ _________
Total Income 118,753 8,623,527
COSTS AND EXPENSES:
Cost of Sales 0 4,462,275
Depreciation 27,399 57,411
Property Expenses 46,623 128,852
Real Estate Taxes 11,862 11,808
Interest and
Financing costs 43,678 81,329
Other Expense 2,688 2,688
_______ _________
Total Costs and
Expenses 132,250 4,744,363
Net Income (Loss) (13,497) 3,879,164
</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 Three Months Ended
03/31/97 03/31/96
______________________
<S> <C> <C>
Cash flows from operating activities
Net Income (Loss) (13,497) 3,879,164
Adjustments to reconcile net income to net
cash provided by operational activities
Cost of Sales 0 4,230,550
Depreciation and Amortization 30,087 70,158
(Increase) decrease in accounts receivables 3,753 (3,699)
(Increase) decrease in prepaid expenses (14,871) 31,598
Increase (decrease) in accounts
payable and accrued expenses 14,003 (132,289)
Increase (decrease) in security deposits 0 (125,773)
________ __________
Net cash flows provided by operating activities 19,475 7,949,709
Cash flows from investing activities
Improvements to rental properties 0 0
_________ _________
Net cash used in investing activities 0 0
Cash flows from financing activities
Repayments of long term borrowings
to affiliated companies 0 (1,120,000)
Repayment of long term borrowings
to unaffiliated companies (7,006) (3,162,949)
Partner distributions paid (20,036) (3,434,011)
Deposit on Sale 0 (425,883)
__________ ___________
Net cash flows used by financing activities (27,042) (8,142,843)
Net increase (decrease) in cash (7,567) (193,134)
Cash December 31 101,791 334,144
Cash March 31 94,224 141,010
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
MARCH 31, 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, 1997. 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 March 31, 1998, and March 31,
1997, the Partnership paid $3,886 and $4,754 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 $0 were incurred during the first quarter of
1998. This compares to $11,147 of costs that were incurred
during the first quarter of 1997.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1997, 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 March 31, 1998, was $94,224. This compares to its
cash position of $101,791 at December 31, 1997. At March 31,
1997, the Partnership's cash position was $141,010.
PAGE 6<PAGE>
<PAGE>
Liquidity - Continued
The decrease in cash from December 31, 1997, to March 31, 1998,
was primarily due to the following factors. Cash provided by
operations was $19,475, payments for property improvements were
$0, principal pay downs of debt totalled $7,006. Partner
distributions totalled $20,036. The Partnership's total
investment in properties for its portfolio at March 31, 1998, was
$3,844,715. This compares to its total property investment at
December 31, 1997 of $3,844,715.
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 Partnership sold Corporate Office Park to an unrelated
purchaser on October 1, 1997 at a price of $750,000 as reported
in an 8-K filed October 1, 1997. The sale generated
approximately $395,000 which was distributed to the partners.
The sale of Seaside Inn, the Villas Plaza and Corporate Park
resulted in a material reduction in both partnership assets,
partnership debt and partnership liquidity.
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 March 31, 1998 was
$1,643,540. This compares to debt outstanding December 31, 1997
of $1,650,546. The Partnership had $1,948,352 of outstanding
debt at March 31, 1997.
PAGE 7<PAGE>
<PAGE>
Results of Operations
The Partnership's net loss for the three months ended March 31,
1998, was $13,497. This compares with net income of $3,879,164
for the same period a year ago.
The major variances from a year ago are due primarily to the sale
of the three properties referenced above.
For the three month period ended March 31, 1998, total revenue
decreased by $8,504,774 as compared to the same period one year
ago. This decrease was primarily attributable to the property
sales.
Edison Square's revenue decreased mainly due to a decrease in
occupancy. At March 31, 1998, Edison Square was 90% occupied.
For the three months ended March 31, 1998, depreciation expense
has decreased by $30,012.
Property expenses decreased $82,229 for the three month period
primarily because of the sales of the three properties.
For the three months, interest expense has decreased $37,651
mainly due to a decrease in the amount of outstanding debt.
The Partnership indebtedness decreased by $304,812 from the time
period March 31, 1997, to March 31, 1998. As of March 31, 1998,
the Partnership had an outstanding debt of $1,643,540 compared to
$1,948,352 at March 31, 1997. The Partnership's outstanding debt
as of December 31, 1997, was $1,650,546.
Property and equipment has decreased from $4,848,009 at March 31,
1997, to $3,844,715 at March 31, 1998. Property and equipment
was $3,844,715 as of December 31, 1997.
For the quarter ended March 31, 1998, the cash distribution to
partners totalled $20,036.
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)
5/12/98 By: /s/ ALLEN G. TEN BROEK
--------------------------------
Allen G. Ten Broek
President, Director and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
5/12/98 By: /s/ ELAINE HAWKINS
--------------------------------
Elaine Hawkins
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and Accounting
Officer)
PAGE 10
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 94,224
<SECURITIES> 0
<RECEIVABLES> 23,711
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 181,632
<PP&E> 3,844,715
<DEPRECIATION> 1,309,602
<TOTAL-ASSETS> 2,762,996
<CURRENT-LIABILITIES> 75,479
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,762,996
<SALES> 118,753
<TOTAL-REVENUES> 118,753
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 88,572
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 43,678
<INCOME-PRETAX> (13,497)
<INCOME-TAX> 0
<INCOME-CONTINUING> (13,497)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (13,497)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>