FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
March 31, 1996 0-14386
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
(Exact Name of Registrant as specified in its charter)
Delaware 16-1245153
(State of Formation) (IRS Employer Identification Number)
2350 North Forest Road
Suite 12 A
Getzville, New York 14068
(Address of Principal Executive Office)
Registrant's Telephone Number: (716) 636-0280
Indicate by a 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
--- ---
Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in part III of this Form 10-Q or any
amendment to this Form 10-Q. (X)
As of March 31, 1996 the issuer had 23,365.9 units of limited partnership
interest outstanding.
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
--------------------------------------------------
INDEX
-----
PAGE NO.
--------
PART I: FINANCIAL INFORMATION
- ------- ---------------------
Balance Sheets -
March 31, 1996 and December 31, 1995 3
Statements of Operations -
Three Months Ended March 31, 1996 and 1995 4
Statements of Cash Flows -
Three Months Ended March 31, 1996 and 1995 5
Statements of Partners' (Deficit) -
Three Months Ended March 31, 1996 and 1995 6
Notes to Financial Statements 7 - 15
PART II: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
- -------- FINANCIAL CONDITION AND RESULTS OF OPERATIONS 16 - 17
---------------------------------------------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
BALANCE SHEETS
March 31, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
Property, at cost:
Land $ 1,773,922 $ 1,773,922
Buildings and improvements 27,641,015 27,641,015
Furniture, fixtures and equipment 2,711,794 2,711,794
------------ ------------
32,126,731 32,126,731
Less accumulated depreciation 13,320,625 13,104,388
------------ ------------
Property, net 18,806,106 19,022,343
Interest and other receivables 36,071 65,026
Note receivable 161,053 154,875
Mortgage costs, net of accumulated amortization
of $439,409 and $634,587 277,589 172,966
Other assets 1,240,419 567,583
------------ ------------
Total Assets $ 20,521,239 $ 19,982,793
============ ============
LIABILITIES AND PARTNERS' (DEFICIT)
Liabilities:
Cash overdraft $ 127,186 $ 252,805
Mortgages and notes payable 20,086,411 19,414,288
Accounts payable and accrued expenses 1,035,439 991,181
Accounts payable - affiliates 2,440,405 2,220,847
Accrued interest 109,705 156,525
Security deposits and prepaid rents 332,517 414,471
------------ ------------
Total Liabilities 24,131,664 23,450,117
------------ ------------
Minority interest in joint venture 51,426 54,583
------------ ------------
Partners' (Deficit):
General partners (682,834) (678,636)
Limited partners (2,979,017) (2,843,271)
------------ ------------
Total Partners' (Deficit) (3,661,851) (3,521,907)
------------ ------------
Total Liabilities and Partners' (Deficit) $ 20,521,239 $ 19,982,793
============ ============
</TABLE>
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
----------- -----------
Income:
Rental $ 1,384,488 $ 1,359,341
Interest and other income 108,552 79,657
----------- -----------
Total income 1,493,040 1,438,998
----------- -----------
Expenses:
Property operations 661,362 804,074
Interest:
Paid to affiliates 63,223 40,337
Other 418,133 451,759
Depreciation and amortization 238,733 302,238
Administrative:
Paid to affiliates 87,196 151,471
Other 167,494 146,225
----------- -----------
Total expenses 1,636,143 1,896,104
----------- -----------
Loss before allocated loss from joint venture (143,103) (457,106)
Loss allocated to minority interest 3,159 11,322
----------- -----------
Net loss $ (139,944) $ (445,784)
=========== ===========
Loss per limited partnership unit $ (5.81) $ (18.51)
=========== ===========
Distributions per limited partnership unit $ -- $ --
=========== ===========
Weighted average number of
limited partnership units
outstanding 23,366 23,366
=========== ===========
See notes to financial statements
-4-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
Cash flow from operating activities:
Net loss $(139,944) $(445,784)
Adjustments to reconcile net loss to net cash
(used in) operating activities:
Depreciation and amortization 238,733 302,238
Loss allocated to minority interest (3,159) (11,322)
Changes in operating assets and liabilities:
Interest and other receivables 28,955 27,765
Other assets (672,836) (190,415)
Accounts payable and accrued expenses 44,258 131,625
Accrued interest (46,820) --
Security deposits and prepaid rent (81,954) 8,363
--------- ---------
Net cash (used in) operating activities (632,766) (177,530)
--------- ---------
Cash flow from investing activities:
Capital expenditures -- --
Increase in note(s) receivable (6,178) --
--------- ---------
Net cash (used in) investing activities (6,178) --
--------- ---------
Cash flows from financing activities:
Mortgage costs (90,555) --
Cash overdraft (125,619) 11,094
Accounts payable - affiliates 219,558 234,741
Principal payments on mortgages and notes (145,777) (68,305)
Proceeds from mortgage 781,337 --
--------- ---------
Net cash provided by financing activities 638,945 177,530
--------- ---------
Increase (decrease) in cash -- --
Cash - beginning of period -- --
--------- ---------
Cash - end of period $ -- $ --
========= =========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 464,953 $ 451,759
========= =========
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
STATEMENTS OF PARTNERS' (DEFICIT)
Three Months Ended March 31, 1996 and 1995
(Unaudited)
General Limited Partners
Partners
Amount Units Amount
------ ----- ------
Balance, January 1, 1995 $ (635,751) 23,366 $(1,456,668)
Net loss (13,374) -- (432,410)
----------- ----------- -----------
Balance, March 31, 1995 $ (649,125) 23,366 $(1,889,078)
=========== =========== ===========
Balance, January 1, 1996 $ (678,636) 23,366 $(2,843,271)
Net loss (4,198) -- (135,746)
----------- ----------- -----------
Balance, March 31, 1996 $ (682,834) 23,366 $(2,979,017)
=========== =========== ===========
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
NOTES TO FINANCIAL STATEMENTS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
1. GENERAL PARTNERS' DISCLOSURE
In the opinion of the General Partners of Realmark Property Investors
Limited Partnership IV, all adjustments necessary for a fair presentation of
the Partnership's financial position, results of operations and changes in
cash flows for the three month periods ended March 31, 1996 and 1995, have
been made in the financial statements. Such financial statements are
unaudited and subject to any year-end adjustments which may be necessary.
2. FORMATION AND OPERATION OF PARTNERSHIP
Realmark Property Investors Limited Partnership IV (the "Partnership"), a
Delaware Limited Partnership, was formed on February 12, 1985, to invest in a
diversified portfolio of income-producing real estate investments.
In April 1985, the Partnership commenced the public offering of units of
limited partnership interest. Other than matters relating to organization, it
had no business activities and, accordingly, had not incurred any expenses or
earned any income until the first interim closing (minimum closing) of the
offering, which occurred on September 20, 1985. On June 22, 1986 the offering
was concluded, at which time 23,362.9 units of limited partnership interest
were outstanding, excluding 3 units held by an affiliate of the General
Partners. The General Partners are Realmark Properties, Inc., a wholly-owned
subsidiary of J.M. Jayson & Company, Inc. and Joseph M. Jayson, the
Individual General Partner. Joseph M. Jayson is the sole shareholder of J.M.
Jayson & Company, Inc.
Under the partnership agreement, the general partners and their affiliates
can receive compensation for services rendered and reimbursement for expenses
incurred on behalf of the Partnership.
Net income or loss and proceeds arising from a sale or refinancing shall be
distributed first to the limited partners in amounts equivalent to a 7%
return on the average of their adjusted capital contributions, then an amount
equal to their capital contributions, then an amount equal to an additional
5% of the average of their adjusted capital contributions after the general
partners receive a disposition fee, then to all partners in an amount equal
to their respective positive capital balances and, finally, in the ratio of
87% to the limited partners and 13% to the general partners.
-7-
<PAGE>
FORMATION AND OPERATION OF PARTNERSHIP (CONTINUED)
The partnership agreement also provides that distribution of funds,
revenues, costs and expenses arising from partnership activities, exclusive
of any sale or refinancing activities, are to be allocated 97% to the limited
partners and 3% to the general partners.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash
----
For purposes of reporting cash flows, cash includes the following items:
cash on hand; cash in checking; and money market savings.
Property and Depreciation
-------------------------
Depreciation is provided using the straight-line method over the estimated
useful lives of the respective assets. Expenditures for maintenance and
repairs are expensed as incurred, and major renewals and betterments are
capitalized. The Accelerated Cost Recovery System and Modified Accelerated
Cost Recovery System are used to determine depreciation expense for tax
purposes.
Rental Income
-------------
Leases for residential properties have terms of one year or less. Commercial
leases have terms of from one to five years. Rental income is recognized on
the straight line method over the term of the lease.
Minority Interest in Consolidated Joint Venture
-----------------------------------------------
The minority interest in a consolidated joint venture is stated at the
amount of capital contributed by the minority investors adjusted for their
share of joint venture losses.
4. ACQUISITION AND DISPOSITION OF RENTAL PROPERTY
In November 1985, the Partnership acquired a 168 unit apartment complex
(Lakeview Village) located in Milwaukee, Wisconsin, for a purchase price of
$4,411,659, which included $320,779 in acquisition fees.
In December 1985, the Partnership acquired a 288 unit apartment complex
(Sutton Park, formerly Bristol Square) located in Lansing, Michigan for a
purchase price of $7,252,858, which included $588,716 in acquisition fees.
-8-
<PAGE>
ACQUISITION AND DISPOSITION OF RENTAL PROPERTY (CONTINUED)
In August 1986, the Partnership acquired two office/warehouse buildings
consisting of 62,598 square feet (Airlane I) and 68,300 square feet (Airlane
III), consisting of approximately 25% office space and 75% warehouse space
located in Nashville, Tennessee, for a purchase price of $6,180,920, which
included $383,169 in acquisition fees.
In October 1986, the Partnership acquired an 86 unit apartment complex (Gold
Key Village II) located in Englewood, Ohio for a purchase price of
$2,354,615, which included $152,744 in acquisition fees.
In December 1986, the Partnership acquired two apartment complexes
consisting of 96 and 144 units (Creekside Apartments, formerly Bretton Park I
and II) located in Flat Rock, Michigan, for a purchase price of $5,462,176,
which included $445,964 in acquisition fees.
In December 1986, the Partnership acquired a 215 unit apartment complex
(Willow Creek) located in Greenville, South Carolina, for a purchase price of
$5,040,560, which included $477,987 in acquisition fees.
In December 1986, the Partnership acquired a 72 unit apartment complex
(Evergreen Terrace) located in Lansing, Michigan for a purchase price of
$1,1711,093, which included $314,379 in acquisition fees.
In May 1987, the Partnership acquired a 56 unit apartment complex (Cedar
Court) located in Monroeville, Pennsylvania, for a purchase price of
$1,439,832, which included $370,728 in acquisition fees.
In 1988, the Partnership acquired, upon its dissolution, the net assets and
liabilities of the Willow Lake Joint Venture, which amounted to $1,635,474.
Since the date of the acquisition, the Partnership had capitalized additional
construction costs of $5,059,296 which included capitalized interest of
$151,993. Construction on this project was substantially complete in early
1991. During September 1992, Willow Lake's lender foreclosed and took
possession of the property because the Partnership had difficulty in
obtaining tenant leases and financing to complete tenant build-out costs. The
disposal generated a $1,328,352 loss for financial statement purposes.
In October, 1989 the Partnership sold the Gold Key II apartment complex for
$2,881,136 which generated a gain of $911,177 for financial statement
purposes.
-9-
<PAGE>
5. NOTE RECEIVABLE
In connection with the sale of the Gold Key II apartment complex, the
Partnership took back a second mortgage as security for two notes receivable.
The first note for $155,000 carried an interest rate of 10% with interest
payable monthly and the remaining balance payable at maturity on October 11,
1995. The second note for $75,000 carried an interest rate of 10% with
principal payments payable in five annual installments of $15,000 and any
remaining interest payable at maturity on October 11, 1995. Neither of the
notes were paid in full by the maturity date. Applicable interest and
penalties have been accrued through March 31, 1996. During 1994, the
Partnership assigned the rights to receive the proceeds of the above notes as
additional collateral for the mortgage on Evergreen Terrace Apartments.
6. MORTGAGES AND NOTES PAYABLE
The Partnership has the following mortgages and notes payable:
Lakeview
--------
In January 1996, the Partnership refinanced the mortgage. The refinanced
mortgage, with a balance of $2,524,939 at March 31, 1996, provides for annual
principal and interest payments at 8.25% payable in equal monthly
installments of $232,924.
Sutton Park (formerly Bristol Square)
-------------------------------------
The property was refinanced January 11, 1996 with an 8% mortgage for
$3,400,000, and an unsecured $50,000 promissory note. The new mortgage
provides for annual principal and interest payments of $306,168 in equal
monthly installments. The balance outstanding at March 31, 1996 was
$3,394,285. The term of the mortgage is 10 years with the remaining balance
due and payable on February 1, 2006. The promissory note provides for monthly
principal payments of $2,083 plus interest accruing at the lenders reference
rate plus 2% (total of 10.25% at March 31, 1996). At March 31, 1996 the
outstanding balance was $49,587. The note is due and payable February 1,
1998.
-10-
<PAGE>
MORTGAGES AND NOTES PAYABLE (CONTINUED)
Airlanes I & III
A 7.625% mortgage with a balance of $3,599,280 at March 31, 1996, which
provides for annual principal and interest payments of $369,783 payable in
equal monthly installments, with the remaining balance due January 1, 1999.
Creekside
---------
An adjustable rate mortgage with an outstanding principal balance of
$3,745,882 and $3,789,437 at March 31, 1996 and 1995, respectively. The
interest rate is adjustable quarterly to a maximum rate of 13.5% and a
minimum rate of 7% (7.38% at March 31, 1996). The mortgage is payable monthly
in amounts which vary with the interest rate. Monthly payments at March 31,
1996 based on 7.38% interest rate were $28,518. The balance of the mortgage
is due and payable March 31, 1998.
Willow Creek
------------
A 9.25% mortgage with an original balance of $4,080,000 which provides for
annual principal and interest payments of $393,023 payable in equal monthly
installments with the remaining balance of $3,929, 432 due on September 1,
1996.The balance as of March 31, 1996 and 1995 was $3,948,467 and $3,941,465,
respectively.
Evergreen Terrace
-----------------
An adjustable rate mortgage with a balance at March 31, 1996 and 1995 of
$1,036,006 and $1,045,544, respectively. The interest rate is adjustable
annually to a maximum rate of 15% during the first five years of the loan
term and 17% for the remaining life of the loan; the interest of 9% (10.33%
at March 31, 1996). The mortgage is payable monthly in amounts which vary
with the interest rate. Monthly payments at March 31, 1996 based on a 10.33%
interest rate were $9,962. The balance of the mortgage is due and payable May
24, 1998.
Cedar Court
-----------
A 9.25% mortgage with a balance of $898,421 and $906,045 at March 31, 1996
and 1995, respectively, which provides for annual principal and interest
payments of $89,586 payable in equal monthly installments with remaining
balance of $895,117 due September 1, 1996.
-11-
<PAGE>
MORTGAGES AND NOTES PAYABLE (CONTINUED)
The mortgages described above are secured by the Partnership properties to
which they relate.
The aggregate maturities of mortgages and notes payable for each of the next
five years and thereafter are as follows:
Year Amount
---- ------
1996 $ 5,088,225
1997 262,895
1998 4,778,938
1999 3,384,889
2000 82,696
Thereafter 5,584,544
--------------
TOTAL $ 19,182,187
7. INVESTMENT IN JOINT VENTURE
On September 1, 1992, the Partnership entered into an agreement to form a
joint venture with Realmark Property Investors Limited Partnership VI-B
(RPILP VI-B). The joint venture was formed for the purpose of operating the
Lakeview Apartment complex owned by the Partnership. Under the terms of the
agreement, RPILP VI-B contributed $175,413, with the Partnership contributing
the property net of the first mortgage.
The joint venture agreement provides that any income, loss, gain, cash flow,
or sale proceeds be allocated 83.78% to the Partnership and 16.22% to RPILP
VI-B. The net loss from the date of inception has been allocated to the
minority interest in accordance with the agreement and has been recorded as a
reduction of the capital contribution.
A reconciliation of the minority interest share in the Lakeview Joint
Venture is as follows:
1996
Balance, January 1 $ 54,583
Allocated Loss ( 3,159)
------------
Balance, March 31 $ 51,424
-12-
<PAGE>
8. RELATED PARTY TRANSACTIONS
Management fees for the management of certain of the Partnership's
properties are paid to an affiliate of the General Partners. The management
agreement provides for 5% of gross monthly receipts of the complexes to be
paid as fees for administering the operations of the properties. These fees
totaled $247,223 and $224,190 for the three months ended March 31, 1996 and
1995, respectively.
The Partnership entered into a management agreement with an unrelated third
party for the management of Airlane I and III on August 15, 1986. The
agreement provides for the payment of a management fee equal to 4% of monthly
gross rental income. An affiliate of the General Partners also receives a
management fee of 2% of monthly gross rental income.
According to the terms of the Partnership Agreement, the Corporate General
Partner is also entitled to receive a partnership management fee equal to 7%
of net cash flow (as defined in the Partnership Agreement), 2% of which is
subordinated to the limited partners having received an annual cash return
equal to 7% of their average adjusted capital contributions. No such fee was
paid or accrued by the partnership for the three months ended March 31, 1996
and 1995.
Accounts payable to affiliates amounted to $2,212,802 and $1,516,273 at
March 31, 1996 and 1995, respectively. The payables represent fees due and
advances from the Corporate General Partner or an affiliate of the General
Partners. Interest charged on accounts payable to affiliates totaled $194,407
and $103,681 for the three months ended March 31, 1996 and 1995.
The General Partners are also allowed to collect a property disposition fee
upon sale of acquired properties. This fee is not to exceed the lesser of 50%
of amounts customarily charged in arm's-length transactions by others
rendering similar services for comparable properties, or 3% of the sales
price. The property disposition fee is subordinate to payments to the limited
partners of a cumulative annual return (not compounded) equal to 7% of their
average adjusted capital balances and to repayment to the limited partners of
an amount equal to their original capital contributions. Since these
conditions have not been met, no fees have been recorded or paid on the sale
of the Gold Key II apartment complex.
Computer service charges for the partnerships are paid or accrued to an
affiliate of the General Partner. The fee is based upon the number of
apartment units and totaled $20,394 and $20,200 for the three months ended
March 31, 1996 and 1995, respectively.
-13-
<PAGE>
RELATED PARTY TRANSACTIONS (CONTINUED)
Pursuant to the terms of the Partnership Agreement, the Corporate General
partner charged the Partnership for reimbursement of certain costs and
expenses incurred by the Corporate General Partner and its affiliates in
connection with the administration of the Partnership. These charges were for
the Partnership's allocated share of such costs and expenses which include
payroll, legal, rent, depreciation, printing, mailing, travel and
communication costs related to Partnership accounting, partner communication
and relations and property marketing. Accounting, communication and marketing
expenses are allocated based on total assets, number of partners, and the
market value of properties respectively. These charges totaled $283,984 and
$177,093 for the three months ended March 31, 1996 and 1995, respectively.
9. INCOME TAXES
No provision has been made for income taxes since the income or loss of the
partnership is to be included in the tax returns of the Individual Partners.
The tax returns of the Partnership are subject to examination by the Federal
and state taxing authorities. Under federal and state income tax laws,
regulations and rulings, certain types of transactions may be accorded
varying interpretations and, accordingly, reported partnership amounts could
be changed as a result of any such examination.
The reconciliation of net loss for the three months ended March 31, 1996 and
1995 as reported in the statements of operations, and as would be reported
for tax purposes, is as follows:
March 31, March 31,
1996 1995
---- ----
Net loss - statement of operations $ (139,944) $ (445,784)
Add to (deduct from):
Difference in depreciation ( 14,800) ( 33,362)
Gain on sale of property 1,101 -
Allowance for doubtful accounts 82,000 22,608
---------- -----------
Net loss - tax return purposes $ ( 71,643) $ (456,538)
-14-
<PAGE>
INCOME TAXES (CONTINUED)
The reconciliation of Partners' (Deficit) as of March 31, 1996 and December
31, 1995 as reported in the balance sheet, and as reported for tax purposes,
is as follows:
March 31, December 31,
1996 1995
---- ----
Partners' (Deficit) - balance sheet $(3,661,851) $(3,521,907)
Add to (deduct from):
Accumulated difference in
depreciation (5,242,375) (5,227,575)
Accumulated amortization 382,695 382,695
Syndication fees 2,734,297 2,734,297
Difference in book and tax
basis in partnership investments ( 635,737) ( 635,737)
Other 1,230,140 1,147,039
----------- -----------
Partners' (Deficit) - tax return purposes $(5,192,831) $(5,121,188)
-15-
<PAGE>
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The Partnership continues to encounter cash flow difficulties, although not as
bad as the same period in 1995. The General Partner loans increased from
$1,751,000 for the period ended March 31, 1995 to $2,440,000 for the period
ended March 31, 1996. The General Partner is under no obligation to advance
funds and there is no assurance that the General Partner will continue to do so.
All advances are payable on demand. The Partnership did not make any
distributions for the three month periods ended March 31, 1996 and 1995, and it
does not envision making any future distributions until all partnership
obligations are satisfied.
The notes receivable from the sale of Gold Key II matured in the fourth quarter
of 1995. The mortgagees did not pay the note; we are in the process of legal
action to collect on the notes.
The Partnership refinanced the Sutton Park (formerly Bristol Square Apartments)
and the Lakeview Apartments in January, 1996. This allowed the Partnership to
use an $800,000 discount on the Sutton Park mortgage. This not only reduced debt
service in both complexes, but also will decrease the mortgage approximately
$2,460 per month at Bristol Square and approximately $450 per month at Lakeview.
This extremely high cost of refinancing these properties did, however,
contribute to the large increase in the payable to the General Partner.
Results of Operations:
- ----------------------
Net loss for the three month period ended March 31, 1996 amounted to $139,944 or
$5.81 per limited partnership unit versus a net loss of $445,784 or $18.51 per
limited partnership unit for the quarter ended March 31, 1995.
On a tax basis, the partnership generated a loss of $71,643 or $2.97 per limited
partnership unit for the three month period ended March 31, 1996 compared to a
tax loss of $456,538 or $18.95 per unit for the three month period ended March
31, 1995.
Partnership revenue for the quarter ended March 31, 1996 totaled $1,493,040,
increasing just over $54,000 from the corresponding 1995 period. Rental income
increased over $25,000, while interest and other income increased approximately
$29,000. The increase in both rental and other income was due to higher
occupancy and increased rents in all properties with the exception of Sutton
Park (formerly Bristol Square Apartments).
-16-
<PAGE>
For the three month period ended March 31, 1996, partnership expenses totaled
$1,636,143, a decrease of $259,961 from the quarter ended March 31, 1995. Total
interest expense decreased approximately $10,740, the result of both new debt
structure agreements reached between the Partnership and the mortgage holders,
and a lower carrying amount on the General Partner advances. Administrative
charges meanwhile, decreased roughly $43,000. Property operations charges
dropped approximately $143,000 between the two periods.
Management is confident that the momentum maintained in recent months will be
sustained by the Partnership in future periods. Occupancy rates at virtually
every Partnership property have stayed the same or dropped slightly since the
last quarter. Expenses meanwhile, should hold steady, remaining approximately
the same as the first quarter.
For the three month period ended March 31, 1996, the Lakeview Joint Venture
generated a net loss of $19,474 with 16.22% of the loss allocated to the
minority venturer. For the three months ended March 31, 1995, the joint venture
had a net loss of $69,808.
-17-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV
--------------------------------------------------
PART II
-------
OTHER INFORMATION
-----------------
Item 1 - Legal Proceedings
- --------------------------
The Partnership is not a party to, nor are any of the Partnership's properties
subject to any material pending legal proceedings other than ordinary, routine
litigation incidental to the Partnership's business.
Items 2, 3, 4 and 5
- -------------------
Not applicable.
Item 6 - Exhibits and reports on Form 8-K
- -----------------------------------------
Exhibit 27 - Financial Data Schedule (Electronic filing only)
-18-
<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.
REALMARK PROPERTY INVESTORS
LIMITED PARTNERSHIP IV
By: /s/Joseph M. Jayson July 12, 1996
------------------------------ ------------------------
Joseph M. Jayson, Date
Individual General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By: REALMARK PROPERTIES, INC.
Corporate General Partner
/s/Joseph M. Jayson July 12, 1996
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/Michael J. Colmerauer July 12, 1996
------------------------------ ------------------------
Michael J. Colmerauer Date
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP IV FOR
THE QUARTER ENDED MARCH 31, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
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