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, 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 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 June 30, 1998
and December 31, 1997 . . . . . . . . . . . . . . . . . .3
Statements of Income for the Three and Six
Months Ended June 30, 1998 and 1997 . . . . . . . . . . .4
Statements of Cash Flows for the Six
Months Ended June 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)
June 30 Dec. 31
1998 1997
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 50,486 101,791
A/R Trade 31,061 27,466
Prepaid Expenses and Other 79,879 48,826
_______ _______
Total Current Assets 161,426 178,083
Rental Properties, Net of Accumulated
Depreciation of $1,336,063 at
06/30/98 and $1,281,205 at 12/31/97 2,510,469 2,563,510
Intangible Assets
Deferred Loan Costs 42,563 47,939
_________ _________
Total Assets 2,714,458 2,789,532
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 30,753 29,171
Accounts Payable - Trade 2,494 7,998
Accrued Expenses 41,593 14,600
Customer and Security Deposits 8,926 8,926
_________ _________
Total Current Liabilities 83,766 60,695
NOTES AND MORTGAGES PAYABLE 1,605,592 1,621,375
PARTNERS'S CAPITAL
General Partners Capital 69,379 71,487
Limited Partners Capital 995,919 1,035,975
Net Loss (40,198) 0
__________ __________
Total Partners Equity 1,025,100 1,107,462
Total Liabilities and
Partners Capital 2,714,458 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 Six Months Ended
06/30/98 06/30/97 06/30/98 06/30/97
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Sales Proceeds 0 0 0 8,350,000
Rental Income 113,584 157,215 232,323 395,729
Interest 16 14 30 27
________ _______ _________ _________
Total Income 113,600 157,229 232,353 8,780,756
COSTS AND EXPENSES:
Cost of Sales 0 0 0 4,462,275
Depreciation 27,459 36,605 54,858 94,016
Property Expenses 66,664 74,173 125,149 214,833
Interest and
Financing costs 43,490 49,770 87,168 131,099
Other Expense 2,688 2,688 5,376 5,376
________ _______ _________ _________
Total Costs and
Expenses 140,301 163,236 272,551 4,907,599
Net Income (Loss) (26,701) (6,007) (40,198) 3,873,157
</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 Six Months Ended
06/30/98 06/30/97
______________________
<S> <C> <C>
Cash flows from operating activities
Net Income (Loss) (40,198) 3,873,157
Adjustments to reconcile net income to net
cash provided by operational activities
Cost of Sales 0 4,230,550
Depreciation and Amortization 60,234 109,869
(Increase) decrease in accounts receivables (3,595) 6,418
(Increase) decrease in prepaid expenses (31,053) 16,190
Increase (decrease) in accounts
payable and accrued expenses 21,489 (129,136)
Increase (decrease) in security deposits 0 (125,773)
________ ________
Net cash flows provided by operating activities 6,877 7,981,275
Cash flows from investing activities
Improvements to rental properties (1,817) 0
_________ _________
Net cash used in investing activities (1,817) 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 (14,201) (3,169,480)
Partner distributions paid (42,164) (3,473,599)
Deposit on Sale 0 (425,883)
___________ _________
Net cash flows used by financing activities (56,365) (8,188,962)
Net increase (decrease) in cash (51,305) (207,687)
Cash December 31 101,791 334,144
Cash June 30 50,486 126,457
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
JUNE 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 six month period ended June 30, 1998, and June 30,
1997, the Partnership paid $3,886 and $2,321 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 second quarter of
1998. This compares to $6,450 of costs that were incurred during
the second 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 June 30, 1998, was $50,486. This compares to its
cash position of $101,791 at December 31, 1997. At June 30,
1997, the Partnership's cash position was $126,457.
PAGE 6<PAGE>
<PAGE>
Liquidity - Continued
The decrease in cash from December 31, 1997, to June 30, 1998,
was primarily due to the following factors. Cash provided by
operations was $6,877, payments for property improvements were
$1,817, principal pay downs of debt totalled $14,201. Partner
distributions totalled $42,164. The Partnership's total
investment in properties for its portfolio at June 30, 1998, was
$3,846,532. 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 June 30, 1998 was
$1,636,345. This compares to debt outstanding December 31, 1997
of $1,650,546. The Partnership had $1,941,821 of outstanding
debt at June 30, 1997.
PAGE 7<PAGE>
<PAGE>
Results of Operations
The Partnership's net loss for the six months ended June 30,
1998, was $40,198. This compares with net income of $3,873,157
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 six month period ended June 30, 1998, total revenue
decreased by $8,548,403 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 June 30, 1998, Edison Square was 86% occupied.
For the six months ended June 30, 1998, depreciation expense has
decreased by $39,158.
Property expenses decreased $89,684 for the six month period
primarily because of the sales of the three properties.
For the six months, interest expense has decreased $43,931 mainly
due to a decrease in the amount of outstanding debt.
The Partnership indebtedness decreased by $305,476 from the time
period June 30, 1997, to June 30, 1998. As of June 30, 1998, the
Partnership had an outstanding debt of $1,636,345 compared to
$1,941,821 at June 30, 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 June 30,
1997, to $3,846,532 at June 30, 1998. Property and equipment was
$3,844,715 as of December 31, 1997.
For the quarter ended June 30, 1998, the cash distribution to
partners totalled $22,128. Distributions for the six 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)
8/14/98 By: /s/ ALLEN G. TEN BROEK
--------------------------------
Allen G. Ten Broek
President, Director and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
8/14/98 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 50,486
<SECURITIES> 0
<RECEIVABLES> 31,061
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 161,426
<PP&E> 3,846,532
<DEPRECIATION> 1,336,063
<TOTAL-ASSETS> 2,714,458
<CURRENT-LIABILITIES> 83,766
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,714,458
<SALES> 232,323
<TOTAL-REVENUES> 232,353
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 185,383
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 87,168
<INCOME-PRETAX> (40,198)
<INCOME-TAX> 0
<INCOME-CONTINUING> (40,198)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (40,198)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
