<PAGE>
UNITED STATES
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 March 31, 1995
or
[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
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Commission File #0-15759
Inland Mortgage Investors Fund, L.P.
(Exact name of registrant as specified in its charter)
Delaware #36-3436439
(State or other jurisdiction (I.R.S. Employer Identification Number)
of incorporation or organization)
2901 Butterfield Road, Oak Brook, Illinois 60521
(Address of principal executive office) (Zip code)
Registrant's telephone number, including area code: 708-218-8000
N/A
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(Former name, former address and former fiscal
year, if changed since last report)
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
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<PAGE>
INLAND MORTGAGE INVESTORS FUND, L.P.
(a limited partnership)
Balance Sheets
March 31, 1995 and December 31, 1994
(unaudited)
Assets
------
<TABLE>
<CAPTION>
1995 1994
----------- ----------
<S> <C> <C>
Cash and cash equivalents (Note 1)............... $ 258,305 265,659
Accrued interest and other receivables........... 58,996 59,242
Mortgage loans receivable (Note 3)............... 6,127,111 6,145,964
----------- ----------
Total assets..................................... $ 6,444,412 6,470,865
=========== ==========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Accounts payable............................... $ 2,021 623
Due to Affiliates (Note 2)..................... 6,599 423
Unearned income (Note 1)....................... 11,764 12,842
----------- ----------
Total liabilities............................ 20,384 13,888
----------- ----------
Partners' capital (Notes 1 and 2):
General Partner:
Capital contribution......................... 500 500
Cumulative net income........................ 237,751 231,055
Cumulative cash distributions................ (229,181) (222,500)
----------- ----------
9,070 9,055
----------- ----------
Limited Partners:
Units of $500. Authorized 40,000 Units,
20,129.24 Units outstanding at 1995 and
1994 (net of offering costs of $1,082,660,
of which $219,526 was paid to Affiliates).. 8,981,960 8,981,960
Cumulative net income........................ 4,980,072 4,867,630
Cumulative cash distributions................ (7,547,074) (7,401,668)
----------- ----------
6,414,958 6,447,922
----------- ----------
Total Partners' capital...................... 6,424,028 6,456,977
----------- ----------
Total liabilities and Partners' capital.......... $ 6,444,412 6,470,865
=========== ==========
</TABLE>
See accompanying notes to financial statements.
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<PAGE>
INLAND MORTGAGE INVESTORS FUND L.P.
(a limited partnership)
Statements of Operations
For the three months ended March 31, 1995 and 1994
(unaudited)
1995 1994
Income: ---- ----
Interest and fees on mortgage loans receivable
(Note 3)...................................... $143,810 155,467
Interest on investments......................... 7,918 4,854
Other income.................................... - 508
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151,728 160,829
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Expenses:
Professional services to Affiliates............. 4,271 6,515
Professional services to non-affiliates......... 17,800 18,284
General and administrative expenses to
Affiliates.................................... 7,753 8,644
General and administrative expenses to
non-affiliates................................ 2,766 2,640
Property operating expenses to non-affiliates... - 5,201
-------- -------
32,590 41,284
-------- -------
Net income........................................ $119,138 119,545
======== =======
Net income allocated to:
General Partner................................. 6,696 6,524
Limited Partners................................ 112,442 113,021
-------- -------
Net income........................................ $119,138 119,545
======== =======
Net income allocated to the one General Partner
Unit............................................ $ 6,696 6,524
======== =======
Net income per Limited Partner Unit (20,129.24 for
1995 and 1994).................................. $ 5.59 5.61
======== =======
See accompanying notes to financial statements.
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<PAGE>
INLAND MORTGAGE INVESTORS FUND, L.P.
(a limited partnership)
Statements of Cash Flows
For the three months ended March 31, 1995 and 1994
(unaudited)
1995 1994
---- ----
Cash flows from operating activities:
Net income...................................... $ 119,138 119,545
Adjustments to reconcile net income to
net cash provided by operating activities:
Unearned income............................... (1,078) (1,201)
Changes in assets and liabilities:
Accrued interest and other receivables...... 246 7,087
Accounts payable............................ 1,398 8,905
Due to Affiliates........................... 6,176 8,963
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Net cash provided by operating activities......... 125,880 143,299
--------- --------
Cash flows from investing activities:
Principal payments collected.................... 18,853 17,631
--------- --------
Net cash provided by investing activities......... 18,853 17,631
--------- --------
Cash flows from financing activities:
Distributions paid.............................. (152,087) (415,407)
--------- --------
Net cash used in financing activities............. (152,087) (415,407)
--------- --------
Net decrease in cash and cash equivalents......... (7,354) (254,477)
Cash and cash equivalents at beginning of period.. 265,659 514,289
--------- --------
Cash and cash equivalents at end of period........ $ 258,305 259,812
========= ========
See accompanying notes to financial statements.
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<PAGE>
INLAND MORTGAGE INVESTORS FUND, L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 1995
(unaudited)
Readers of this Quarterly Report should refer to the Partnership's audited
financial statements for the fiscal year ended December 31, 1994, which are
included in the Partnership's 1994 Annual Report, as certain footnote
disclosures which would substantially duplicate those contained in such audited
financial statements have been omitted from this Report.
(1) Organization and Basis of Accounting
Inland Mortgage Investors Fund, L.P. (the "Partnership") was organized on
December 5, 1985, pursuant to the Delaware Revised Uniform Limited Partnership
Act, to make or acquire loans secured by mortgages on improved, income-
producing multi-family residential properties in or near the Chicago
metropolitan area. On February 12, 1986, the Partnership commenced an Offering
of 40,000 Limited Partnership Units pursuant to a Registration Statement on
Form S-11 under the Securities Act of 1933. The Offering terminated on
February 12, 1987, with total sales of 20,129.24 Units at $500 per Unit
resulting in $10,064,620 of gross offering proceeds, not including the General
Partner's contribution of $500. Inland Real Estate Investment Corporation is
the General Partner.
Offering costs have been offset against the Limited Partners' capital accounts.
Loan assumption fees received are deferred as unearned income and amortized as
yield adjustments on a straight-line basis over the remaining life of the
related loan.
The Partnership considers all highly liquid investments purchased with a
maturity of three months or less to be cash equivalents and are carried at
cost, which approximates market.
No provision for Federal income taxes has been made as the liability for such
taxes is that of the Partners rather than the Partnership.
In the opinion of management, the financial statements contain all the
adjustments necessary, which are of a normal recurring nature, to present
fairly the financial position and results of operations for the period
presented herein. Results of interim periods are not necessarily indicative of
results to be expected for the year.
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<PAGE>
INLAND MORTGAGE INVESTORS FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
March 31, 1995
(unaudited)
(2) Transactions with Affiliates
The General Partner and its Affiliates are entitled to reimbursement for
salaries and expenses of employees of the General Partner and its Affiliates
relating to the administration of the Partnership. Such costs are included in
professional services to Affiliates and general and administrative expenses to
Affiliates, of which $6,599 and $423 was unpaid as of March 31, 1995 and
December 31, 1994, respectively.
Inland Mortgage Servicing Corporation, a subsidiary of the General Partner,
services the Partnership's mortgage loans receivable. Its services include
processing mortgage collections and escrow deposits and maintaining related
records. For these services, the Partnership is obligated to pay fees at an
annual rate equal to 1/4 of 1% of the outstanding mortgage loans receivable
balance of the Partnership. Such fees of $3,837 and $4,313 for the three
months ended March 31, 1995 and 1994, respectively, have been incurred and paid
to the subsidiary and are included in the Partnership's general and
administrative expenses to Affiliates.
In connection with the sales of 6910 North Sheridan, 5420 North Kenmore and
712-720 West Grace, sales commissions of $18,125, $27,500 and $14,553,
respectively, that have not been included in the costs of sale, may be payable
to an Affiliate of the General Partner to the extent that the Limited Partners
have received their Original Capital plus a return thereon as specified in the
Partnership Agreement.
(3) Investment in Mortgage Loans Receivable
Mortgage loans receivable are collateralized by first mortgages and wrap
mortgages on multi-family residential properties located in Chicago, Illinois
or its surrounding metropolitan area. As additional collateral, the
Partnership holds assignments of rents and leases or personal guarantees of the
borrowers. Generally, the mortgage notes are payable in equal monthly
installments based on 20 or 30 year amortization periods.
On March 1, 1995, the loan collateralized by the property located at 7434-42
North Hermitage, Chicago was extended for an additional five years. The new
maturity date of the loan is March 1, 2000 and the interest rate is 10.5%.
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<PAGE>
INLAND MORTGAGE INVESTORS FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
March 31, 1995
(unaudited)
(4) Subsequent Events
In April 1995, the Partnership paid a distribution of $152,767 to the Partners,
of which $146,071 was distributed to the Limited Partners and $6,696 was
distributed to the General Partner. Of the $146,071 distributed to the Limited
Partners, $18,853 was principal amortization and the remainder was from net
interest income.
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<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
On February 12, 1986, the Partnership commenced an Offering of 40,000 Limited
Partnership Units pursuant to a Registration Statement on Form S-11 under the
Securities Act of 1933. The Offering terminated on February 12, 1987, with
total sales of 20,129.24 Units at $500 per Unit resulting in $10,064,620 of
gross offering proceeds, not including the General Partner's contribution of
$500. The Partnership funded fifteen loans between October 1986 and August 1988
utilizing $8,466,875 of capital proceeds collected, net of participations. As
of March 31, 1995, cumulative distributions to Limited Partners totaled
$7,547,074, of which $2,421,066 represents principal amortization, payoffs on
five loans, prepayment penalties and proceeds received from the sale of three
properties.
At March 31, 1995, the Partnership had cash and cash equivalents aggregating
$258,305 which will be utilized for future distributions to partners and
working capital requirements. The sources of future liquidity and
distributions to the Limited and General Partners are expected to be from the
collection of interest and repayment of principal of the Partnership's mortgage
loan investments. To the extent that these sources are insufficient to meet
the Partnership's needs, the Partnership may rely on advances from Affiliates
of the General Partner, other short-term financing, or may liquidate certain
mortgage loans or other assets.
Results of Operations
Interest income on mortgage loans receivable decreased for the three months
ended March 31, 1995, as compared to the three months ended March 31, 1994, due
to the prepayment of the mortgage loan receivable collateralized by the
property located at 2906-10 Eastwood on July 28, 1994 and a decrease in the
adjustable interest rate (6.333% to 5.687%) of the mortgage loan receivable
collateralized by the property located at 7428 West Washington.
Interest on investments increased for the three months ended March 31, 1995, as
compared to the three months ended March 31, 1994, due to an increase in
interest rates.
Professional services to Affiliates decreased for the three months ended March
31, 1995, as compared to the three months ended March 31, 1994, due to a
decrease in accounting services required by the Partnership. Professional
services to non-affiliates decreased for the three months ended March 31, 1995,
as compared to the three months ended March 31, 1994, due to a decrease in
legal expenses relating to properties owned by the Partnership through
foreclosure and subsequently sold.
Property operating expenses to non-affiliates decreased for the three months
ended March 31, 1995, as compared to the three months ended March 31, 1994, due
to the Partnership no longer recording the operations of properties previously
owned through foreclosure.
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<PAGE>
PART II
Items 1 through 6(b) are omitted because of the absence of conditions under
which they are required.
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<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.
INLAND MORTGAGE INVESTORS FUND, L.P.
By: Inland Real Estate Investment Corporation
General Partner
By: Robert D. Parks
Chairman
Date: May 11, 1995
By: Mark Zalatoris
Vice President
Date: May 11, 1995
By: Cynthia M. Hassett
Principal Financial Officer and
Principal Accounting Officer
Date: May 11, 1995
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 258,305
<SECURITIES> 0
<RECEIVABLES> 6,186,107
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,444,412
<CURRENT-LIABILITIES> 20,384
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 6,424,028
<TOTAL-LIABILITY-AND-EQUITY> 6,444,412
<SALES> 0
<TOTAL-REVENUES> 151,728
<CGS> 0
<TOTAL-COSTS> 32,590
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 119,138
<INCOME-TAX> 0
<INCOME-CONTINUING> 119,138
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 119,138
<EPS-PRIMARY> 5.59
<EPS-DILUTED> 5.59
</TABLE>
