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, 1999.
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, 1999
and December 31, 1998 . . . . . . . . . . . . . . . . . .3
Statements of Income for the Three
Months Ended March 31, 1999 and 1998. . . . . . . . . . .4
Statements of Cash Flows for the Three
Months Ended March 31, 1999 and 1998. . . . . . . . . . .5
Notes to Financial Statements . . . . . . . . . . . . . .6
Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . .6-9
PART II
OTHER INFORMATION
Items 1 through 6 . . . . . . . . . . . . . . . . . . . 10
PART III
Signatures. . . . . . . . . . . . . . . . . . . . . . . 11
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
1999 1998
_______________________
<S> <C> <C>
ASSETS
Current Assets
Cash 71,596 49,310
A/R Trade 5,114 29,443
Prepaid Expenses and Other 66,030 57,170
_______ _______
Total Current Assets 142,740 135,923
Rental Properties, Net of Accumulated
Depreciation of $1,418,678 at
03/31/99 and $1,391,126 at 12/31/98 2,429,107 2,456,659
Intangible Assets
Deferred Loan Costs 34,499 37,187
_________ _________
Total Assets 2,606,346 2,629,769
LIABILITIES AND PARTNER'S CAPITAL
Current Liabilities
Current maturities of notes
and mortgages payable 33,752 32,993
Accounts Payable - Trade 1,765 5,983
Accrued Expenses 14,600 14,600
Customer and Security Deposits 17,750 8,926
_________ _________
Total Current Liabilities 67,867 62,502
NOTES AND MORTGAGES PAYABLE 1,579,836 1,588,381
PARTNERS'S CAPITAL
General Partners Capital 65,058 65,058
Limited Partners Capital 913,828 913,828
Net Loss (20,243) 0
__________ __________
Total Partners Equity 958,643 978,886
Total Liabilities and
Partners Capital 2,606,346 2,629,769
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
03/31/99 03/31/98
______________________
<S> <C> <C>
REVENUES:
Rental Income 104,824 118,739
Interest Income 13 14
_______ _______
Total Income 104,837 118,753
COSTS AND EXPENSES:
Depreciation 27,552 27,399
Property Expenses 40,080 46,623
Real Estate Taxes 11,862 11,862
Interest and
Financing costs 42,898 43,678
Other Expense 2,688 2,688
_______ _______
Total Costs and
Expenses 125,080 132,250
Net Income (Loss) (20,243) (13,497)
</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
03/31/99 03/31/98
______________________
<S> <C> <C>
Cash flows from operating activities
Net Income (Loss) (20,243) (13,497)
Adjustments to reconcile net income to net
cash provided by operational activities
Depreciation and Amortization 30,240 30,087
(Increase) decrease in accounts receivables 24,329 3,753
(Increase) decrease in prepaid expenses (8,860) (14,871)
Increase (decrease) in accounts
payable and accrued expenses (4,219) 14,003
Increase (decrease) in security deposits 8,825 0
________ ________
Net cash flows provided by operating activities 30,072 19,475
Cash flows from investing activities
Improvements to rental properties 0 0
_________ _________
Net cash used in investing activities 0 0
Cash flows from financing activities
Repayment of long term borrowings
to unaffiliated companies (7,786) (7,006)
Partner distributions paid 0 (20,036)
________ ________
Net cash flows used by financing activities (7,786) (27,042)
Net increase (decrease) in cash 22,286 (7,567)
Cash December 31 49,310 101,791
Cash March 31 71,596 94,224
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 5<PAGE>
<PAGE>
FLORIDA INCOME FUND, L.P.
NOTES TO FINANCIAL STATEMENT
MARCH 31, 1999
(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, 1998. 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, 1999, and March 31,
1998, the Partnership paid $0 and $3,886 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
1999. This compares to $0 of costs that were incurred during the
first quarter of 1998.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1998, 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, 1999, was $71,596. This compares to its
cash position of $49,310 at December 31, 1998. At March 31,
1998, the Partnership's cash position was $94,224.
PAGE 6<PAGE>
<PAGE>
Liquidity - Continued
The decrease in cash from December 31, 1998, to March 31, 1999,
was primarily due to the following factors. Cash provided by
operations was $30,072, payments for property improvements were
$0, principal pay downs of debt totalled $7,786. Partner
distributions totalled $0. The Partnership's total investment in
properties for its portfolio at March 31, 1999, was $3,847,785.
This compares to its total property investment at December 31,
1998 of $3,847,785.
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, 1999 was
$1,613,588. This compares to debt outstanding December 31, 1998
of $1,621,374. The Partnership had $1,643,540 of outstanding
debt at March 31, 1998.
PAGE 7<PAGE>
<PAGE>
Year 2000
Many existing computer programs use only two digits to identify a
year (for example, "98" is used to represent "1998"). Such
programs read "00" as the year 1900, and thus may not recognize
dates beginning with the year 2000, or many otherwise produce
erroneous results or cease processing when dates after 1999 are
encountered. Such failures could cause disruptions in normal
business operations.
In 1998, the Partnership inventoried and assessed the critical
information systems that impact operations and financial
reporting in order to develop a strategy to address required
computer software changes and upgrades relating to such
operations. A plan to test and, as necessary, replace, upgrade
or repair these systems was developed, implemented, and completed
in 1998. Replacement and upgrades included release upgrades of
packaged software for the Partnership financial recordkeeping
system. The cost of the project was less than $1,000 and
expensed in accordance with appropriate accounting policies.
The Partnership inventoried and assessed the Year 2000 issues
that impact it, however it cannot identify the potential problems
that may originate with third parties outside the Partnership's
control.
Given the fact that the Partnership assessed any Year 2000
systems and equipment issues and completed any required
corrections, it believes all costs to the Partnership's
operations, financial condition and results of operations have
already been incurred.
Results of Operations
The Partnership's net loss for the three months ended March 31,
1999, was $20,243. This compares with net loss of $13,497 for
the same period a year ago.
For the three month period ended March 31, 1999, total revenue
decreased by $13,916 as compared to the same period one year ago.
This decrease was primarily attributable to higher delinquencies
at Edison Square.
Edison Square's revenue decreased mainly due to higher
delinquencies. At March 31, 1999, Edison Square was 86%
occupied.
For the three months ended March 31, 1999, depreciation expense
has increased by $153.
Property expenses decreased $6,543 for the three month period.
For the three months, interest expense has decreased $780 mainly
due to a decrease in the amount of outstanding debt.
PAGE 8
<PAGE>
Results of Operations - continued
The Partnership indebtedness decreased by $29,952 from the time
period March 31, 1998, to March 31, 1999. As of March 31, 1999,
the Partnership had an outstanding debt of $1,613,588 compared to
$1,643,540 at March 31, 1998. The Partnership's outstanding debt
as of December 31, 1998, was $1,621,374.
Property and equipment has increased from $3,844,715 at March 31,
1998, to $3,847,785 at March 31, 1999. Property and equipment
was $3,847,785 as of December 31, 1998.
For the quarter ended March 31, 1999, the cash distribution to
partners totalled $0.
PAGE 9<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 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)
5/11/99 By: /s/ ALLEN G. TEN BROEK
--------------------------------
Allen G. Ten Broek
President, Director and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
5/11/99 By: /s/ ELAINE HAWKINS
--------------------------------
Elaine Hawkins
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and Accounting
Officer)
PAGE 11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 71,596
<SECURITIES> 0
<RECEIVABLES> 21,909
<ALLOWANCES> 16,795
<INVENTORY> 0
<CURRENT-ASSETS> 142,740
<PP&E> 3,847,785
<DEPRECIATION> 1,418,678
<TOTAL-ASSETS> 2,606,346
<CURRENT-LIABILITIES> 67,867
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,606,346
<SALES> 104,824
<TOTAL-REVENUES> 104,837
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 82,182
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 42,898
<INCOME-PRETAX> (20,243)
<INCOME-TAX> 0
<INCOME-CONTINUING> (20,243)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (20,243)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
