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, 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 September 30, 1998
and December 31, 1997 . . . . . . . . . . . . . . . . . .3
Statements of Income for the Three and Nine
Months Ended September 30, 1998 and 1997. . . . . . . . .4
Statements of Cash Flows for the Nine
Months Ended September 30, 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)
Sept 30 Dec. 31
1998 1997
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 44,094 101,791
A/R Trade 44,943 27,466
Prepaid Expenses and Other 96,062 48,826
_______ _______
Total Current Assets 185,099 178,083
Rental Properties, Net of Accumulated
Depreciation of $1,363,573 at
09/30/98 and $1,281,205 at 12/31/97 2,484,211 2,563,510
Intangible Assets
Deferred Loan Costs 39,875 47,939
_________ _________
Total Assets 2,709,185 2,789,532
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 32,579 29,171
Accounts Payable - Trade 2,337 7,998
Accrued Expenses 53,002 14,600
Customer and Security Deposits 8,926 8,926
_________ _________
Total Current Liabilities 96,844 60,695
NOTES AND MORTGAGES PAYABLE 1,596,380 1,621,375
PARTNERS'S CAPITAL
General Partners Capital 69,379 71,487
Limited Partners Capital 995,919 1,035,975
Net Loss (49,337) 0
__________ __________
Total Partners Equity 1,015,961 1,107,462
Total Liabilities and
Partners Capital 2,709,185 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 For Nine Months Ended
09/30/98 09/30/97 09/30/98 09/30/97
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Sales Proceeds 0 0 0 8,385,000
Rental Income 119,465 155,382 351,788 551,111
Interest 15 15 45 42
________ _______ _________ _________
Total Income 119,480 155,397 351,833 8,936,153
COSTS AND EXPENSES:
Cost of Sales 0 0 0 4,462,275
Depreciation 27,510 41,248 82,368 135,264
Property Expenses 55,122 58,833 180,271 273,666
Interest and
Financing costs 43,299 55,506 130,467 186,605
Other Expense 2,688 2,688 8,064 8,064
________ _______ _________ _________
Total Costs and
Expenses 128,619 158,275 401,170 5,065,874
Net Income (Loss) (9,139) (2,878) (49,337) 3,870,279
</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
09/30/98 09/30/97
_____________________
<S> <C> <C>
Cash flows from operating activities
Net Income (Loss) (49,337) 3,870,279
Adjustments to reconcile net income to net
cash provided by operational activities
Cost of Sales 0 4,230,550
Depreciation and Amortization 90,432 154,222
(Increase) decrease in accounts receivables (17,477) 12,992
(Increase) decrease in prepaid expenses (47,236) (506)
Increase (decrease) in accounts
payable and accrued expenses 32,741 (118,676)
Increase (decrease) in security deposits 0 (124,838)
__________ __________
Net cash flows provided by operating activities 9,123 8,024,023
Cash flows from investing activities
Improvements to rental properties (3,069) (27,850)
_________ _________
Net cash used in investing activities (3,069) (27,850)
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 (21,587) (3,176,166)
Partner distributions paid (42,164) (3,513,112)
Deposit on Sale 0 (425,883)
___________ ___________
Net cash flows used by financing activities (63,751) (8,235,161)
Net increase (decrease) in cash (57,697) (238,988)
Cash December 31 101,791 334,144
Cash Sept 30 44,094 95,156
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
SEPTEMBER 30, 1998
(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 nine month period ended September 30, 1998, and
September 30, 1997, the Partnership paid $3,886 and $2,995 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 third quarter of 1998. This compares to $6,450 of costs that
were incurred during the third 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 September 30, 1998, was $44,094. This compares to
its cash position of $101,791 at December 31, 1997. At September
30, 1997, the Partnership's cash position was $95,156.
PAGE 6<PAGE>
<PAGE>
Liquidity - Continued
The decrease in cash from December 31, 1997, to September 30,
1998, was primarily due to the following factors. Cash provided
by operations was $9,123, payments for property improvements were
$3,069, principal pay downs of debt totalled $21,587. Partner
distributions totalled $42,164. The Partnership's total
investment in properties for its portfolio at September 30, 1998,
was $3,847,784. 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 September 30, 1998 was
$1,628,959. This compares to debt outstanding December 31, 1997
of $1,650,546. The Partnership had $1,935,135 of outstanding
debt at September 30, 1997.
PAGE 7<PAGE>
<PAGE>
Results of Operations
The Partnership's net loss for the nine months ended September
30, 1998, was $49,337. This compares with net income of
$3,870,279 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 nine month period ended September 30, 1998, total revenue
decreased by $8,584,320 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 September 30, 1998, Edison Square was 81%
occupied.
For the nine months ended September 30, 1998, depreciation
expense has decreased by $52,896.
Property expenses decreased $93,395 for the nine month period
primarily because of the sales of the three properties.
For the nine months, interest expense has decreased $56,138
mainly due to a decrease in the amount of outstanding debt.
The Partnership indebtedness decreased by $306,176 from the time
period September 30, 1997, to September 30, 1998. As of
September 30, 1998, the Partnership had an outstanding debt of
$1,628,959 compared to $1,935,135 at September 30, 1997. The
Partnership's outstanding debt as of December 31, 1997, was
$1,650,546.
Property and equipment has decreased from $4,875,859 at September
30, 1997, to $3,847,784 at September 30, 1998. Property and
equipment was $3,844,715 as of December 31, 1997.
For the quarter ended September 30, 1998, the cash distribution
to partners totalled $0. Distributions for the nine month period
totalled $42,164.
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)
11/12/98 By: /s/ ALLEN G. TEN BROEK
--------------------------------
Allen G. Ten Broek
President, Director and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
11/12/98 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 44,094
<SECURITIES> 0
<RECEIVABLES> 44,943
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 185,099
<PP&E> 3,847,784
<DEPRECIATION> 1,363,573
<TOTAL-ASSETS> 2,709,185
<CURRENT-LIABILITIES> 96,844
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,709,185
<SALES> 0
<TOTAL-REVENUES> 351,833
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 270,703
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 130,467
<INCOME-PRETAX> (49,337)
<INCOME-TAX> 0
<INCOME-CONTINUING> (49,337)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (49,337)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
