SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
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 33-0061355
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 South El Camino Real, Suite 1100
San Mateo, California 94402
(Address of principal (Zip Code)
executive offices)
(650) 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 September 30, 1998: 76,767
Page 1 of 17
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets
(in thousands, except units outstanding)
(Unaudited)
September 30, December 31,
1998 1997
<S> <C> <C>
Assets
Investments in real estate:
Rental property, net of accumulated depreciation
of $12,391 and $11,474 at September 30, 1998
and December 31, 1997, respectively $ 32,109 $ 32,659
Land held for development 3,483 4,666
Rental property held for sale, net -- 10,179
Land held for sale 3,994 2,310
------------ ------------
Total real estate investments 39,586 49,814
Cash and cash equivalents 9,969 788
Restricted cash 369 369
Accounts and interest receivable 164 286
Deferred financing costs and other fees, net of
accumulated amortization of $1,129 and $1,039
at September 30, 1998 and December 31, 1997,
respectively 1,344 1,373
Prepaid expenses and other assets 988 771
------------ ------------
Total assets $ 52,420 $ 53,401
============ ============
- continued -
Page 2 of 17
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets - continued
(in thousands, except units outstanding)
(Unaudited)
September 30, December 31,
1998 1997
Liabilities and Partners' Equity (Deficit)
Liabilities:
Notes payable $ 16,044 $ 22,004
Accounts payable and accrued expenses 806 565
Interest payable 64 66
------------ ------------
Total liabilities 16,914 22,635
------------ ------------
Commitments and contingent liabilities (see Note 4)
Partners' equity (deficit):
General partners (618) (891)
Limited partners, 76,767 and 77,054 limited
partnership units outstanding at September 30,
1998 and December 31, 1997, respectively 36,124 31,657
------------ ------------
Total partners' equity 35,506 30,766
------------ ------------
Total liabilities and partners' equity $ 52,420 $ 53,401
============ ============
</TABLE>
See accompanying notes to financial statements.
Page 3 of 17
<PAGE>
<TABLE>
<CAPTION>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Operations
(in thousands, except per unit amounts and units outstanding)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenue:
Rental income $ 1,490 $ 1,767 $ 5,184 $ 5,054
Interest and other income 129 6 152 17
Gain on sale of rental property -- -- 5,468 --
--------- --------- --------- ---------
Total revenue 1,619 1,773 10,804 5,071
--------- --------- --------- ---------
Expenses:
Operating 605 853 2,161 2,323
Interest expense 389 515 1,372 1,376
Depreciation and amortization 350 447 1,043 1,267
Provision for impairment of land
held for sale -- -- -- 378
Loss on sales of real estate -- 64 11 64
Expenses associated with
undeveloped land 115 154 395 479
General and administrative expenses 339 320 987 961
--------- --------- --------- ---------
Total expenses 1,798 2,353 5,969 6,848
--------- --------- --------- ---------
Net income (loss) $ (179) $ (580) $ 4,835 $ (1,777)
========= ========= ========= =========
Net income (loss) per limited
partnership unit $ (2.33) $ (7.26) $ 59.36 $ (22.25)
========= ========= ========= =========
Weighted average number of limited
partnership units outstanding during
each period used to compute net income
(loss) per limited partnership unit 76,784 79,846 76,849 79,846
========= ========= ========= =========
</TABLE>
See accompanying notes to financial statements.
Page 4 of 17
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statement of Partners'
Equity (Deficit) For the nine months
ended September 30, 1998
(in thousands)
(Unaudited)
General Limited
Partners Partners Total
Balance at December 31, 1997 $ (891) $ 31,657 $ 30,766
Retirement of limited partnership units -- (95) (95)
Net income 273 4,562 4,835
-------- ---------- ----------
Balance at September 30, 1998 $ (618) $ 36,124 $ 35,506
======== ========== ==========
See accompanying notes to financial statements.
Page 5 of 17
<PAGE>
<TABLE>
<CAPTION>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Nine months ended
September 30,
1998 1997
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 4,835 $ (1,777)
Adjustments to reconcile net income (loss) to net cash
provided by (used for) operating activities:
Net (gain) loss on sales of real estate (5,457) 64
Depreciation and amortization 1,043 1,267
Amortization of loan fees, included in interest expense 76 76
Provision for impairment of land held for sale -- 378
Changes in certain assets and liabilities:
Accounts and interest receivable 122 (51)
Deferred financing costs and other fees (173) (286)
Prepaid expenses and other assets (217) (336)
Accounts payable and accrued expenses 290 129
Interest payable (2) 18
--------- ----------
Net cash provided by (used for) operating activities 517 (518)
--------- ----------
Cash flows from investing activities:
Net proceeds from sales of real estate 15,847 699
Net additions to real estate investments (1,128) (3,687)
--------- ----------
Net cash provided by (used for) investing activities 14,719 (2,988)
--------- ----------
Cash flows from financing activities:
Net loan proceeds -- 6,500
Increase in restricted cash -- (269)
Payment of loan fees -- (122)
Notes payable principal payments (5,960) (1,685)
Purchase and retirement of limited partnership units (95) --
--------- ----------
Net cash provided by (used for) financing activities (6,055) 4,424
--------- ----------
Net increase in cash and cash equivalents 9,181 918
Cash and cash equivalents at beginning of period 788 97
--------- ----------
Cash and cash equivalents at end of period $ 9,969 $ 1,015
========= ==========
- continued -
Page 6 of 17
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Cash Flows - continued
(in thousands)
(Unaudited)
Nine months ended
September 30,
1998 1997
Supplemental disclosure of cash flow information:
Cash paid for interest $ 1,298 $ 1,282
========= =========
Supplemental disclosure of non-cash refinancing activity:
New financing $ -- $ 7,700
Original financing paid-off in escrow -- (1,200)
--------- ----------
Net loan proceeds $ -- $ 6,500
========= ==========
</TABLE>
See accompanying notes to financial statements.
Page 7 of 17
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 1998
(Unaudited)
Note 1. THE PARTNERSHIP AND SIGNIFICANT ACCOUNTING POLICIES
In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the "Sponsors" or "General Partner") and Glenborough Corporation (successor by
merger with Glenborough Inland Realty Corporation) ("Glenborough"), 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 September 30, 1998 and December 31, 1997, and the related statements of
operations for the three and nine months ended September 30, 1998 and 1997, and
the changes in partners' equity (deficit) and cash flows for the nine months
ended September 30, 1998 and 1997.
Allocation of profits, losses and cash distributions from operations and cash
distributions from sales or financing are made pursuant to the terms of the
Partnership Agreement. Generally, net income and distributions from operations
are allocated 90% to the limited partners and 10% to the general partners. Net
losses from operations are allocated 99% to the limited partners and 1% to the
general partners until such time as a partner's account is reduced to zero.
Additional losses will be allocated entirely to those partners with positive
account balances until such balances are reduced to zero. Net income other than
net income from operations shall be allocated as follows: (i) first, to the
partners who have a deficit balance in their capital account, provided that, in
no event shall the general partner be allocated more than 5% of the net income
other than net income from operations; (ii) second, to the limited partners in
proportion to and to the extent of the amounts to increase their capital
accounts to an amount equal to the sum of the adjusted invested capital of their
units plus an additional cumulative non-compounded 6% return per annum; (iii)
third, to the partners in the minimum amount required to first equalize their
capital account in proportion to the number of units owned, and then second, to
bring the sum of the balances of the capital accounts of the limited partners
and the general partners into the ratio of 4 to 1; and (iv) the balance, if any,
80% to the limited partners and 20% to the general partners.
Effective January 1, 1995, RFC entered into an agreement with 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 until the liquidation
of the Partnership, whichever comes first. Effective January 1, 1998, the
agreement was amended to eliminate Glenborough's responsibility for providing
investor relation services and Preferred Partnership Services, Inc., a
California Corporation unaffiliated with the Partnership, contracted to assume
these services. Pursuant to the contract, the Partnership will pay Glenborough
for its services as follows: (i) a specified asset administration fee, which is
fixed for five years subject to reduction in the year following the sale of
Page 8 of 17
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 1998
(Unaudited)
assets, ($806,000 in 1998); (ii) sales fees of 2% for improved properties and 4%
for land; (iii) a refinancing fee of 1% and (iv) management fees equal to 5% of
gross rental receipts. As part of this agreement, Glenborough 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 General Partner of the
Rancon Partnerships. Glenborough is not an affiliate of RFC or the Partnership.
During the nine months ended September 30,1998, a total of 287 limited
partnership units were repurchased and retired as a result of the Partnership's
offer to redeem the partners limited partnership units. As of September 30,
1998, there were 76,767 limited partnership units outstanding.
Consolidation - In order to satisfy certain lender requirements for the
Partnership's 1996 loan secured by Service Retail Center, Promotional Retail
Center, and Carnegie Business Center I, 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 RRF IV, Inc., a corporation 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. All intercompany transactions and account
balances have been eliminated in consolidation.
Note 2. REFERENCE TO 1997 AUDITED FINANCIAL STATEMENTS
These unaudited financial statements should be read in conjunction with the
Notes to Financial Statements included in the December 31, 1997 audited
financial statements.
Note 3. INVESTMENTS IN REAL ESTATE
On January 27, 1998, the Partnership sold one of the three Rancon Towne Village
lots in Temecula, California to an unaffiliated entity for $270,000. The
Partnership recognized an $11,000 loss on the sale and realized net proceeds of
$241,000.
On June 4, 1998, the Partnership sold the Shadowridge Woodbend Apartments,
("Shadowridge") a 240-unit complex in Vista, California, to an unaffiliated
entity for $16,075,000. The Partnership recognized a gain on the sale of the
rental property of $5,468,000 and realized net proceeds of $9,806,000 after
paying off the secured debt.
Page 9 of 17
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
September 30, 1998
(Unaudited)
Note 4. COMMITMENTS AND CONTINGENT LIABILITIES
The Partnership is contingently liable for subordinated real estate commissions
payable to the Sponsors in the amount of $643,000 at September 30, 1998 for
sales that transpired in previous years. The subordinated real estate
commissions are payable only after the Limited Partners have received
distributions equal to their original invested capital plus a cumulative
non-compounded return of six percent per annum on their adjusted invested
capital.
Note 5. SUBSEQUENT EVENT
Due to an increase in the cash balance resulting from the sale of Shadowridge,
the Partnership will make a distribution to its partners in the amount of
$4,000,000. The distribution will be paid before the end of the year.
Page 10 of 17
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1998, the Partnership had cash of $9,969,000 (exclusive of
restricted cash). The remainder of the Partnership's assets consist primarily of
its real estate investments, totaling approximately $39,586,000, which includes
$32,109,000 of rental properties, $3,483,000 of land held for development and
$3,994,000 of land held for sale.
The Partnership's primary source of funds consists of cash provided by rental
activities. Other sources of funds may include permanent 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.
The Partnership's improved cash position at September 30, 1998 compared to
December 31, 1997 is largely due to the net proceeds from the sale of
Shadowridge. Management and the General Partner concluded their analysis of the
Partnership's cash flow requirements and determined that there will be
sufficient cash reserves to fund continued operations and planned capital
improvements as well as make a $4,000,000 distribution to its partners. The
Partnership expects to make the $4,000,000 distribution prior to the end of the
year.
A majority of the Partnership's assets are located within the Inland Empire, a
submarket of Southern California, which, despite recent economic growth, has
been affected by recent business mergers and completion of new buildings within
the neighboring area. Management believes that, while these external pressures
exist, demand for office and industrial space in the Inland Empire should
improve due to less expensive labor, lower cost of living and a good
transportation and distribution infrastructure.
Tri-City
The Partnership currently owns the following properties in the Tri-City
Corporate Center area within the Inland Empire submarket of the Southern
California region:
Property Type Square Feet
- ---------------------------- ---------------------------------- -----------
One Vanderbilt Four story office building 73,730
Two Vanderbilt Four story office building 69,046
Carnegie Business Center I Two R&D buildings 62,539
Service Retail Center Two retail buildings 20,780
Promotional Retail Center Four strip center retail buildings 66,265
Inland Regional Center Two story office building 81,079
TGI Friday's Restaurant 9,386
Circuit City Retail building 39,123
In addition, the construction of a 23,500 square foot build-to-suit retail
building, referred to as Office Max, was completed in October 1998 and the
tenant's lease commenced on October 15, 1998.
Page 11 of 17
<PAGE>
The Partnership also owns approximately 26 acres of unimproved land in the
Tri-City area.
The Partnership's General Partner is currently in the process of evaluating the
fair market value of the Tri-City assets. The General Partner and management are
evaluating appraisals prepared by CB Commercial as well as other market
information in an effort to determine the optimal time to dispose of its assets
and realize maximum value.
Lake Elsinore
The Partnership owns 24.8 acres of undeveloped land (referred to as Lake
Elsinore) commercially zoned in Lake Elsinore, Riverside County, California.
During the first quarter of 1998, the Partnership began marketing this land for
sale. On April 24, 1998, the Partnership entered into a contract with a third
party buyer for the sale of the land for $4,500,000; however, the sale fell out
of contract in October 1998. The Partnership will continue to market the
property for sale.
Perris
The Partnership owns 17.14 acres of unimproved land near Perris Lake in Perris,
Riverside County, California (referred to as Perris). There has been no
development of the Perris property to date. The property is being marketed for
sale to retail users and interested developers.
Temecula
The Partnership owns two parcels of unimproved land in Temecula, California,
which are being marketed for sale.
General Matters
The $10,179,000 decrease in rental property held for sale and the $9,181,000
increase in cash at September 30, 1998 from December 31, 1997 are primarily due
to the sale of the Shadowridge Woodbend Apartments ("Shadowridge"). In addition,
the $5,960,000 decrease in notes payable is largely due to the payoff of the
note secured by Shadowridge.
The $1,183,000 decrease in land held for development at September 30, 1998
compared to December 31, 1997 is due to the reclassification of the Lake
Elsinore land to land held for sale. This decrease was offset by an increase of
$753,000 due to the construction of Office Max and Mimi's Restaurant (a
build-to-suit adjacent to Office Max).
The $122,000 decrease in accounts and interest receivable at September 30, 1998
compared to December 31, 1997 is due to the collection of December 31, 1997
tenant receivables and the reimbursement from a tenant for tenant improvements.
The $217,000 increase in prepaid expenses and other assets at September 30, 1998
compared to December 31, 1997 is due to the: (i) prepayment of the fourth
Page 12 of 17
<PAGE>
quarter investor relation services fee and premiums for annual property
liability insurance coverage; and (ii) an increase in the deferred asset
relating to rent concessions given to tenants.
The $241,000 increase in accounts payable and accrued expenses at September 30,
1998 from December 31, 1997 is due primarily to property tax accruals for the
current year. Property taxes are paid in April and December of each year.
The Partnership knows of no unrecorded demands, commitments, or events that
might effect 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.
RESULTS OF OPERATIONS
Revenues
Rental income for the nine months ended September 30, 1998 increased $130,000 or
3% compared to the nine months ended September 30, 1997, even with the sale of
Shadowridge in June 1998, primarily as a result of increased occupancy at One
Vanderbilt and Promotional Retail Center.
Rental income for the three months ended September 30, 1998 compared to the same
period in 1997 decreased $277,000 or 16% primarily due to the loss of rental
income resulting from the sale of Shadowridge in the second quarter of 1998.
This was offset by an increase in rental revenue due to the increased occupancy
at One Vanderbilt and Promotional Retail Center.
Occupancy rates at the Partnership's Tri-City properties as of September 30,
1998 and 1997 were as follows:
September 30,
1998 1997
---------- ---------
One Vanderbilt 91% 75%
Two Vanderbilt 93% 93%
Service Retail Center 95% 100%
Carnegie Business Center I 72% 87%
Promotional Retail Center 98% 97%
Inland Regional Center 100% 100%
TGI Friday's 100% 100%
Circuit City 100% 100%
As of September 30, 1998, tenants at Tri-City occupying substantial portions of
leased rental space included: (i) Inland Regional Center with a lease through
July 2009; (ii) Circuit City with a lease through January 2018; (iii) Inland
Empire Health Plan with a lease through March 2002; (iv) ITT Educational
Services with a lease which expires in December 2004; (v) CompUSA with a lease
through August 2003; and (vi) PetsMart with a lease through January 2009. These
six tenants, in the aggregate, occupied approximately 238,000 square feet of the
422,000 total leasable square feet at Tri-City and account for 53% of the rental
income generated at Tri-City and 44% of the total rental income for the
Partnership during the nine months ended September 30, 1998.
Page 13 of 17
<PAGE>
Interest income increased $135,000 and $123,000 for the nine and three months
ended September 30, 1998 compared to the same period in 1997, respectively, due
to the interest earned on the investment of the net proceeds from the sale of
Shadowridge.
The net gain on sale of rental property of $5,468,000 for the nine months ended
September 30, 1998 resulted from the sale of Shadowridge for a sales price of
$16,075,000.
Expenses
Operating expenses decreased $162,000 or 7% and $248,000 or 29% for the nine and
three months ended September 30, 1998 compared to the nine and three months
ended September 30, 1997, respectively, primarily due to the elimination of
operating expenses at Shadowridge. The decrease is partially offset by an
increase in property operating expenses attributable to increased occupancy in
One Vanderbilt and Promotional Retail Center.
Interest expense decreased $126,000 or 24% for the three months ended September
30, 1998 compared to the three months ended September 30, 1997 due to the payoff
of the $5,800,000, 7.95% fixed rate loan secured by Shadowridge.
Interest expense for the nine months ended September 30, 1998 compared to the
same period in 1997 is stable because the savings due to Shadowridge is offset
by increased permanent financing obtained for Circuit City and TGI Friday's
placed in service in February and May of 1997.
Depreciation and amortization decreased $224,000 or 18% for the nine months
ended September 30, 1998 and $97,000 or 22% for the nine and three months ended
September 30, 1997 primarily due to ceasing depreciation on Shadowridge upon
classification of the property as rental property held for sale (non-depreciable
property) effective December 31, 1997.
Provision for impairment of land held for sale was recorded in the first quarter
of 1997 in the amount of $378,000 due to the management's conclusion that the
carrying value of the Partnership's investment in land held for sale in
Temecula, California was in excess of its fair value.
The loss on sales of real estate of $11,000 for the nine months ended September
30, 1998 resulted from the sale of one Rancon Towne Village parcel. The loss on
sales of real estate of $64,000 for the nine months ended September 30, 1997
resulted from the sales of eight Rancon Towne Village parcels.
Expenses associated with undeveloped land decreased $84,000 or 18% and $39,000
or 25% for the nine and three months ended September 30, 1998 compared to
September 30, 1997, respectively, due to the reduction of property taxes
resulting from the sale of ten parcels in Rancon Towne Village since July 1997.
General and administrative expenses increased $26,000 or 3% and $19,000 or 6%
for the nine months and three months ended September 30, 1998 compared to the
nine and three months ended September 30, 1997, respectively, due to the
Page 14 of 17
<PAGE>
increase in professional fees incurred for appraisals, analyses and forecast
services provided to the Partnership to assist in the determination of the
marketing strategies for the properties. This increase was offset by the
decrease in asset administration fees resulting from 1997 land sales.
Year 2000 Compliance
The Partnership utilizes a number of computer software programs and operating
systems across its entire organization, including applications used in financial
business systems and various administrative functions. To the extent that the
Partnership's software applications contain a source code that is unable to
appropriately interpret the upcoming calendar year "2000" and beyond, some level
of modification, or replacement of such applications will be necessary. The
Partnership has completed its identification of applications that are not yet
"Year 2000" compliant and has commenced modification or replacement of such
applications, as necessary. Given the information known at this time about the
Partnership's systems that are non-compliant, coupled with the Partnership's
ongoing, normal course-of-business efforts to upgrade or replace critical
systems, as necessary, management does not expect "Year 2000" compliance costs
to have any material adverse impact on the Partnership's liquidity or ongoing
results of operations. No assurance can be given, however, that all of the
Partnership's systems will be "Year 2000" compliant or that compliance costs or
the impact of the Partnership's failure to achieve substantial "Year 2000"
compliance will not have a material adverse effect on the Partnership's future
liquidity or results of operations.
Page 15 of 17
<PAGE>
Part II. 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:
#27 - Financial Data Schedule
(b) Reports on Form 8-K:
None.
Page 16 of 17
<PAGE>
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: November 13, 1998 By: /s/ Daniel L. Stephenson
------------------------
Daniel L. Stephenson
Chief Executive Officer and
Chief Financial Officer of
Rancon Financial Corporation,
General Partner of
Rancon Realty Fund IV,
a California Limited Partnership
Page 17 of 17
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000743870
<NAME> Rancon Realty Fund IV
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 10,338
<SECURITIES> 0
<RECEIVABLES> 164
<ALLOWANCES> 0
<INVENTORY> 3,994
<CURRENT-ASSETS> 10,502
<PP&E> 35,592
<DEPRECIATION> 12,391
<TOTAL-ASSETS> 52,420
<CURRENT-LIABILITIES> 16,044
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 35,506
<TOTAL-LIABILITY-AND-EQUITY> 52,420
<SALES> 5,468
<TOTAL-REVENUES> 10,804
<CGS> 0
<TOTAL-COSTS> 2,567
<OTHER-EXPENSES> 2,030
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,372
<INCOME-PRETAX> 4,835
<INCOME-TAX> 0
<INCOME-CONTINUING> (622)
<DISCONTINUED> 5,457
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,835
<EPS-PRIMARY> 59.36
<EPS-DILUTED> 59.36
</TABLE>
