FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-14207
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
California 33-0016355
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification)
400 South El Camino Real, Suite 1100
San Mateo, California 94402
(Address of principal (Zip Code)
executive offices)
(415) 343-9300
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) 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 (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Total number of units outstanding as of June 30, 1996: 79,846
Page 1 of 15
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
<CAPTION>
Consolidated Balance Sheets
(in thousands, except units outstanding)
(Unaudited)
June 30, December 31,
1996 1995
------- -----------
<S> <C> <C>
Assets
------
Investments in real estate:
Rental property (net of accumulated
depreciation of $12,362 and
$11,800 at June 30, 1996 and
December 31, 1995, respectively) $ 38,294 $ 30,766
Construction in progress 1,006 2,931
Land held for development 8,476 9,088
Land held for sale 1,386 1,632
-------- --------
Total investments in real
estate, net 49,162 44,417
Cash and cash equivalents 917 1,296
Cash restricted for construction 100 926
Tenant and interest receivable 9 8
Note receivable 405 405
Other assets (net of accumulated
amortization of $563 and $674
at June 30, 1996 and December
31, 1995, respectively) 1,586 1,230
-------- --------
Total Assets $ 52,179 $ 48,282
======== ========
Liabilities and Partners' Equity
--------------------------------
Liabilities:
Accounts payable and other
liabilities $ 1,630 $ 356
Interest payable 47 ---
Notes payable 15,525 11,757
-------- --------
Total Liabilities 17,202 12,113
-------- --------
Partners' equity (deficit):
General partners' (891) (891)
Limited partners' (79,846
limited partnership units
outstanding) 35,868 37,060
-------- --------
Total Partners' Equity 34,977 36,169
-------- --------
Total Liabilities and
Partners' Equity $ 52,179 $ 48,282
======== ========
</TABLE>
See accompanying notes to financial statements.
Page 2 of 15
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
Consolidated Statements of Operations
(in thousands, except per unit amounts and units outstanding)
(Unaudited)
<CAPTION>
Three months Six months
ended ended
June 30, April 30, June 30, April 30,
1996 1995 1996 1995
------- ------- ------ -------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 1,049 $ 1,461 $ 2,169 $ 2,980
Interest and other income 26 42 54 54
------- ------- ------- -------
Total revenues 1,075 1,503 2,223 3,034
------- ------- ------- -------
Operating Costs and Expenses:
Operating (including $61 reim-
bursed to Sponsor in 1995) 527 590 1,052 1,236
Depreciation and amortization 425 374 728 733
Interest expense 317 160 578 325
Expenses associated with
undeveloped land (including
$4 reimbursed to Sponsor
in 1995) 219 178 402 411
Administrative expenses
(including $304 to Sponsor
in 1995) 330 332 655 803
------ ------ ------ ------
Total operating costs
and expenses 1,818 1,634 3,415 3,508
------ ------ ------ ------
Net loss $ (743) $ (131) $(1,192) $ (474)
======= ======= ======= =======
Net loss per limited
limited partnership unit $ (9.31) $ (1.64) $ 14,93) $ (5.94)
======= ======= ======= =======
Distributions per limited
partnership unit $ --- $ --- $ --- $ ---
======= ======= ======= =======
Weighted average number of
limited partnership units
outstanding during each
period used to compute
net loss per limited
partnership unit 79,846 79,849 79,846 79,855
======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
Page 3 of 15
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
Consolidated Statements of Partners' Equity (Deficit)
For the six months ended June 30, 1996 and April 30, 1995
(in thousands)
(Unaudited)
<CAPTION>
General Limited
Partners Partners Total
-------- --------- --------
<S> <C> <C> <C>
Balance at December 31, 1995 $ (891) $ 37,060 $ 36,169
Net loss --- (1,192) (1,192)
------- ------- -------
Balance at June 30, 1996 $ (891) $ 35,868 $ 34,977
======= ======= =======
Balance at October 31, 1994 $ (891) $ 50,797 $ 49,906
Retirement of Limited
Partnership Units --- (12) (12)
Net loss --- (474) (474)
------- ------- -------
Balance at April 30, 1995 $ (891) $ 50,311 $ 49,420
======= ======= =======
</TABLE>
See accompanying notes to financial statements.
Page 4 of 15
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
<TABLE>
Consolidated Statements of Cash Flows (in thousands)
(Unaudited)
<CAPTION>
Six months ended
June 30, April 30,
1996 1995
------- -------
<S> <C> <C>
Cash Flows From Operating Activities:
Net loss $ (1,192) $ (474)
Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Depreciation and amortization 728 733
Changes in assets and liabilities:
Tenant and interest receivable (1) 44
Other assets (284) (300)
Accounts payable and other liabilities 1,274 (333)
Interest payable 47 ---
Payable to Sponsor --- (2)
Lease commissions paid (38) (4)
-------- --------
Net cash provided by (used for)
operating activities 534 (336)
-------- --------
Cash Flows From Investing Activities:
Funds released from restricted cash 826 ---
Proceeds from sale of real estate 248 ---
Collection on notes receivable --- 720
Property acquisition and development costs (5,556) (771)
-------- --------
Net cash used for investing activities (4,482) (51)
Cash Flows From Financing Activities:
Net loan proceeds 10,288 2,228
Payments on notes payable (6,520) (61)
Other liabilities --- 5
Retirement of Limited Partnership Units --- (12)
Payment of loan fees (199) ---
-------- --------
Net cash provided by financing activities 3,569 2,160
-------- --------
Net increase (decrease) in cash (379) 1,773
Cash at beginning of period 1,296 1,555
-------- --------
Cash at end of period $ 917 $ 3,328
======== ========
Supplemental disclosure of cash
flow information:
Cash paid for interest $ 528 $ 366
======== ========
Interest capitalized $ --- $ 4
======== ========
</TABLE>
See accompanying notes to financial statements.
Page 5 of 15
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1996
(Unaudited)
Note 1. SIGNIFICANT ACCOUNTING POLICIES
-------------------------------
In the opinion of Rancon Financial Corporation and Daniel Lee
Stephenson (the Sponsors) and Glenborough Inland Realty
Corporation, the accompanying unaudited financial statements
contain all adjustments (consisting of only normal accruals)
necessary to present fairly the financial position of Rancon
Realty Fund IV, A California Limited Partnership (the
Partnership) as of June 30, 1996 and December 31, 1995, and the
related statements of operations for the three and six months
ended June 30, 1996 and April 30, 1995, and changes in partners'
equity and cash flows for the six months ended June 30, 1996 and
April 30, 1995.
Effective with the year ending December 31, 1996, the
Partnership's year end has been changed from October 31 to
December 31.
Effective January 1, 1994 the Partnership had contracted with RFC
to perform on the Partnership's behalf for financial, accounting,
data processing, marketing, legal, investor relations, asset and
development management and consulting services. These services
were provided by RFC subject to the provisions of the Partnership
Agreement. Prior to January 1, 1994 the Partnership had
contracted with Partnership Asset Management Company, a
California corporation, to perform the same services. Effective
January 1, 1994, RFC entered into an agreement with the owner of
Partnership Asset Management Company to purchase all of its
outstanding shares of stock. Partnership Asset Management
Company was not considered to be an affiliate of the Partnership
or RFC, at the time of the purchase.
In December 1994, RFC entered into an agreement with Glenborough
Inland Realty Corporation (Glenborough) whereby RFC sold to
Glenborough the contract to perform the rights and
responsibilities under RFC's agreement with the Partnership and
other related Partnerships (collectively, the Rancon
Partnerships) to perform or contract on the Partnership's behalf
for financial, accounting, data processing, marketing, legal,
investor relations, asset and development management and
consulting services for the Partnership for a period of ten years
or to the liquidation of the Partnership, whichever comes first.
Pursuant to the contract, the Partnership will pay Glenborough
for its services as follows: (i) a specified asset administration
fee of $993,000 per year, which is fixed for five years subject
to reduction in the year following the sale of assets; (ii) sales
fees of 2% for improved properties and 4% for land; (iii) a
refinancing fee of 1% and (iv) a management fee of 5% of gross
Page 6 of 15
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1996
(Unaudited)
rental receipts. As part of this agreement, Glenborough has and
will perform certain tasks for the General Partner of the Rancon
Partnerships and RFC agreed to cooperate with Glenborough, should
Glenborough attempt to obtain a majority vote of the limited
partners to substitute itself as the Sponsor for the Rancon
Partnerships. This agreement was effective January 1, 1995.
Glenborough is not an affiliate of RFC.
As a result of this agreement, RFC terminated several of its
employees between December 31, 1994 and February 28, 1995. Also
as a result of this agreement, certain of the officers of RFC
resigned from their positions effective February 28, 1995, June
30, 1995 and July 1, 1995.
Organization - In order to satisfy certain lender requirements
for the Partnership's new loan secured by Carnegie Business
Center I, Service Retail Center and Promotional Retail Center
(see Note 5), Rancon Realty Fund IV Tri City Limited Partnership,
a Delaware limited partnership ("RRF IV Tri City") was formed in
April, 1996. The three properties securing the loan were
contributed to RRF IV Tri City by the Partnership. The limited
partner of RRF IV Tri-City is the Partnership and the general
partner is Rancon Realty Fund IV, Inc., wholly owned by the
Partnership.
Since the Partnership indirectly owns 100% of RRF IV Tri City,
the financial statements of RRF IV Tri City have been
consolidated with those of the Partnership.
Reclassification - Certain 1995 balances have been reclassified
to conform with the current period presentation.
Note 2. REFERENCE TO 1995 AUDITED FINANCIAL STATEMENTS
----------------------------------------------
These unaudited financial statements should be read in
conjunction with the Notes to Financial Statements included in
the 1995 audited financial statements.
Note 3. RELATED PARTY TRANSACTIONS
--------------------------
The Partnership had an agreement with the Sponsor for property
management services through December 31, 1994. The agreement
provided for a management fee equal to 5% of gross rentals
collected while managing the properties. Fees incurred under
this agreement totaled $61,000 for the six months ended April 30,
1995. Effective January 1, 1995, the Partnership contracted with
Glenborough to provide these services to the Partnership (see
Note 1).
Page 7 of 15
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1996
(Unaudited)
The Partnership incurred $4,000 in program management fees to the
Sponsor during the six months ended April 30, 1995. The Sponsor
received this fee for its management and administration of
unimproved or non-income producing properties. As a result of
the agreement with Glenborough (see Note 1), effective January 1,
1995, this fee is no longer payable to the Sponsor or to
Glenborough.
The Partnership Agreement also provides for the reimbursement of
actual costs incurred by the Sponsor in providing certain
administrative, legal and development services necessary for the
prudent operation of the Partnership. Effective January 1, 1995,
such services are being provided by Glenborough as described in
Note 1.
As a result of the agreement between the RFC and Glenborough (see
Note 1), RFC terminated approximately 82 employees who were
previously responsible for performing the administrative, legal
and development services to the Partnership. Upon termination,
certain employee costs including severance benefits were
allocated to the various Rancon partnerships. Such costs
allocated to the Partnership aggregated $200,000 and are included
in administrative costs for the six months ended April 30, 1995.
The remainder of the reimbursable costs incurred by the
Partnership totaled $104,000 for the six months ended April 30,
1995. Of the costs incurred, $43,000 was capitalized.
Note 4. INVESTMENT IN REAL ESTATE
-------------------------
In the second quarter of 1996, construction was officially
completed on the Inland Regional Center ("IRC") project and the
tenant commenced its 13-year lease. As a result, $7,791,000 of
the IRC construction cost was reclassified from construction in
progress to rental property.
During the first quarter of 1996, the Partnership received
letters of intent to sign leases on two single tenant retail
buildings to be constructed on 3.19 acres of Tri-City Corporate
Center in San Bernardino, California. The Partnership commenced
construction on the 3.19 acres in 1996 and accordingly
reclassified $990,000 from land held for development to
construction in progress. In addition, the Partnership incurred
$16,000 in construction costs during the six months ended June
30, 1996.
On March 26, 1996, 1.3 acres of land in Temecula, California was
sold for $275,000. This parcel of land had previously been
Page 8 of 15
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1996
(Unaudited)
classified as land held for sale. The Partnership's net sale
proceeds, after allocating $165,000 for future site improvements,
was $84,000. The net proceeds were added to the Partnership's
cash reserves and will be used to complete improvements on the
remaining lots, which are expected to greatly assist marketing
efforts for the property. Since a provision for impairment of
investment in real estate was established in 1995, this sale did
not result in a gain or loss on the transaction.
Note. 5. NOTES PAYABLE
-------------
On April 19, 1996, the Partnership obtained new permanent
financing of $6,500,000, secured by real estate referred to as
Carnegie Business Center I, Service Retail Center and Promotional
Retail Center. After disbursing $6,035,000 for the payoff of the
existing Far East National Bank, Chino Valley Bank, and Imperial
Bank loans, as well as the payment of loan fees, the Partnership
received approximately $465,000 in refinancing proceeds, net of
$150,000 held in reserve for final tenant improvements on a
portion of Promotional Retail Center. The net proceeds were
added to the Partnership's cash reserves for future site
improvements.
The new loan is a 10-year fixed rate loan with a 25-year
amortization and matures on May 1, 2006. The loan accrues
interest at a rate of 8.744% per annum with $53,413 in principal
and interest payments due monthly, commencing June 1, 1996.
On May 14, 1996, the Partnership closed escrow on a $2,500,000
construction loan from Citizens Business Bank, secured by the
Inland Regional Center building. Through June 30, 1996, the
Partnership had drawn $652,000 of the total $2,500,000 available
for the completion of the Inland Regional Center construction.
The loan is a five year fixed rate loan due April 23, 2001,
accruing interest at the rate of 8.75% per annum. Monthly
payments of interest only are due for three months commencing May
23, 1996. Beginning August 23, 1996, $20,771 in principal and
interest payments will be due monthly.
Page 9 of 15
Item 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
As of July, 1987, Rancon Realty Fund IV (the Partnership) was
fully funded from the sale of all limited partnership units in
the amount of $72,556,000 (net of selling and organization
expenses). As of June 30, 1996, the Partnership had cash of
$917,000 (the Partnership Agreement requires the Partnership to
maintain initial working capital reserves of 1 percent of gross
proceeds from the sale of Units or $809,000). The remainder of
the Partnership's assets consist primarily of its investments in
properties, which totaled approximately $49,162,000 at June 30,
1996.
The Partnership's primary sources of funds consist of the
proceeds of its public offering of limited partnership units, new
financing and cash provided by its rental activities. Other
sources of funds include, construction financing, property sales
and interest income on certificates of deposit and other deposits
of funds invested temporarily, pending their use in the
development of properties.
A majority of the Partnership's assets are located within the
Inland Empire submarket of the Southern California region. The
Southern California regional economy in general, and the real
estate industry in particular, is considered to be in a
recessionary cycle. The Partnership may realize both positive
and negative effects from these current market conditions.
Potential negative effects include the delinquency of lease and
mortgage payments owed to the Partnership and a decrease in
competitive market lease rates and land prices, and an inability
to obtain financing for further property development. The
Partnership may benefit from the current economic and financing
conditions due to the general lack of new competitive product
being constructed, potentially causing greater absorption of
existing inventory.
Other assets increased 29% or $356,000 at June 30, 1996 from
December 31, 1995 largely as a result of: i) the $165,000 held in
escrow for further site improvements from the March, 1996 1.3
acre land sale in Temecula, California; ii) the $150,000 held in
escrow for future tenant improvements from the April, 1996
$6,500,000 financing described below; and iii) the loan fees paid
in connection with the $6,500,000 financing, netted against the
retirement of unamortized loan fees related to the loans paid
off.
Accounts payable and other liabilities increased approximately
four and one-half times or $1,274,000 from December 31, 1995 to
June 30, 1996 due to an outstanding invoice related to the
construction of IRC. Once funding was received from the
construction loan (described below) in July, 1996, 77% or
$986,000 of this balance was immediately paid. The remaining
Page 10 of 15
balance primarily represents normal payables and accrued expenses
(including property taxes).
With the signing of a 13-year lease with Inland Regional Center
and the completion of construction of the 81,000 square foot IRC
building, the Partnership now has six operating properties within
the Tri-City Corporate Center project in San Bernardino,
California (Tri-City) with approximately 373,000 total leasable
square feet.
On April 19, 1996, the Partnership borrowed $6,500,000 under new
permanent financing. The loan is a 10-year fixed rate loan with
a 25-year amortization, bearing interest at 8.744% per annum with
monthly principal and interest payments of $53,413. The loan
proceeds were used to payoff three existing loans. After paying
refinancing and other fees, and placing funds in escrow for
tenant improvements for the Promotional Retail Center, the
Partnership netted approximately $465,000 in proceeds. In
addition to the financing proceeds, the Partnership benefitted
from the extension of the weighted average maturity of the three
existing loans from 1.75 years to 10 years on the new loan, and
the reduction of the weighted average interest rate from 9.72% to
8.74%.
On May 14, 1996, the Partnership closed escrow on a $2,500,000
construction loan, secured by the IRC building. This loan
requires monthly interest only payments at a rate of 8.75% per
annum through July 23, 1996 at which time $20,771 in principal
and interest payments commence through its April 23, 2001
maturity. Through June 30, 1996, the Partnership had drawn only
$625,000 of the total $2,500,000 available.
Offsite improvements remain on hold at Lake Elsinore Square in
Lake Elsinore, California pending recovery of the housing market.
The tentative parcel map has been approved and the final map was
being processed when further activity was put on hold.
Subsequently, the tentative parcel map expired.
There has been no development of the Perris property to date.
The property continues to be marketed for sale by the Partnership
to retail users and interested developers.
The 12.4 acre property in Temecula, California has been divided
into 12 separate parcels via a parcel map approved December,
1995. Final map approval was received January 2, 1996. In March
1996, the Partnership executed the sale of a 1.3 acre parcel.
The Partnership's net sale proceeds, after allocating $165,000
for future site improvements, was $84,000. The proceeds from
this sale will be used to complete improvements on the remaining
lots, which should greatly assist marketing efforts of such
property.
Portions of the property at Tri-City sold during fiscal 1989,
1991 and 1993 included lots 8 and 9, the Chili's and TGI Friday's
restaurants and a 1.5 acre fire station site. The Partnership
continues to hold a note receivable in the amount of $405,000
Page 11 of 15
related to the sale of the TGI Friday's restaurant. The
Partnership does not anticipate the sale of any significant
portion of the balance of the Tri-City property (except the Land
fill) until after the completion of development of such property
or the liquidation of the Partnership. Any cash generated from
property sales may be utilized in the development of other
properties or distributed to the partners. The General Partners
continue to assess the real estate market in Southern California
in an effort to determine an appropriate time to dispose of the
Partnership's assets.
Aside from the foregoing, the Partnership knows of no demands,
commitments, events, or uncertainties which might affect its
liquidity or capital resources in any material respect. The
effect of inflation on the Partnership's business should be no
greater than its effect on the economy as a whole.
Management believes that the Partnership's cash balance as of
June 30, 1996, together with cash from operations and
construction loan financing, will be sufficient to finance the
Partnership's and the properties' continued operations and
development plans.
RESULTS OF OPERATIONS
---------------------
The Partnership's year end has been changed from October 31 to
December 31. Since the Partnership's operations are not
seasonal, comparisons will reflect the three and six months ended
June 30, 1996 versus the three and six months ended April 30,
1995.
Rental income:
Rental income for the three and six months ended June 30, 1996
decreased $412,000 and $811,000 or 28% and 27% from the three and
six months ended April 30, 1995, respectively, primarily as a
result of the November, 1995 vacancy upon lease expiration of one
tenant, Aetna Health Management ("Aetna"), who occupied an
aggregate of 74,000 square feet of space at One Vanderbilt, Two
Vanderbilt and Carnegie Business Center I, which caused a
decrease in average occupancy, as further detailed in the table
of Tri-City properties below. Aetna's vacancy was primarily a
function of the tenant's desire to consolidate its various spaces
into one building.
Occupancy rates at the Partnership's Tri-City properties as of
June 30, 1996 and April 30, 1995 were as follows:
June 30, April 30,
1996 1995
-------- --------
One Vanderbilt 59% 98%
Two Vanderbilt 25% 97%
Service Retail Center 97% 98%
Carnegie Business Center I 87% 97%
Promotional Retail Center-Phase I 97% 94%
Inland Regional Center 100% ---
(commencing June, 1996)
Page 12 of 15
As of June 30, 1996, there are five tenants that in the
aggregate, occupy approximately 178,000 square feet or 48% of the
374,000 total leasable square feet of the Tri-City properties.
The Partnership has positioned itself well in respect to the
timing of lease expirations, as these five tenants have leases
that expire at various dates between 1997 and 2009.
Management is currently in various stages of negotiations on five
new leases totaling 38,000 square feet of space. Management is
also negotiating a lease for a 38,000 square foot build-to-suit
retail building on vacant land in Tri-City.
Operating expenses (expenses applicable to rental income) for the
three and six months ended June 30, 1996 decreased $63,000 and
$184,000 or 11% and 15%, respectively, from the three and six
months ended April 30, 1995 due primarily to: (i) lowered utility
costs and management fees associated with decreased occupancy
from April 30, 1995 to June 30, 1996, discussed above; and (ii)
net property tax refunds, after appeal fees, as a result of
successful tax appeals.
Depreciation and amortization for the three and six months ended
June 30, 1996 increased $69,000 and $13,000 or 19% and 2% from
the three and six months ended April 30, 1995, respectively,
primarily as a result of the full amortization of loan fees
related to the loans that were paid-off upon refinancing in
April, 1996.
Interest expense for the three and six months ended June 30, 1996
increased $139,000 and $235,000 or 78% and 68% from the three and
six months ended April 30, 1995, respectively, primarily as a
result of the new $6,500,000 financing discussed above and the
additional notes payable obtained to facilitate construction in
1995 and 1996.
Administrative expenses during the six months ended June 30, 1996
decreased $148,000 or 18% from the six months ended April 30,
1995. This decrease is primarily the result of the one-time
payment of severance to RFC's terminated employees in the six
months ended April 30, 1995.
Page 13 of 15
Part 2. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
None.
(b) Reports on Form 8-K:
None.
Page 14 of 15
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.
RANCON REALTY FUND IV,
a California Limited Partnership
(Registrant)
Date:August 13, 1996 By: /s/ Daniel L. Stephenson
Daniel L. Stephenson, General Partner
and Director, President,
Chief Executive Officer and
Chief Financial Officer of
Rancon Financial Corporation,
General Partner of
Rancon Realty Fund IV,
a California Limited Partnership
Page 15 of 15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1017
<SECURITIES> 0
<RECEIVABLES> 414
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1026
<PP&E> 61524
<DEPRECIATION> 12362
<TOTAL-ASSETS> 52179
<CURRENT-LIABILITIES> 1677
<BONDS> 15525
0
0
<COMMON> 0
<OTHER-SE> 34977
<TOTAL-LIABILITY-AND-EQUITY> 52179
<SALES> 0
<TOTAL-REVENUES> 2223
<CGS> 0
<TOTAL-COSTS> 1454
<OTHER-EXPENSES> 655
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 578
<INCOME-PRETAX> (1192)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1192)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1192)
<EPS-PRIMARY> (14.93)
<EPS-DILUTED> (14.93)
</TABLE>
