SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended March 31, 1996 Commission file #0-16599
JMB MORTGAGE PARTNERS, LTD. - IV
(Exact name of registrant as specified in its charter)
Illinois 36-3426138
(State of organization) (IRS Employer Identification No.)
900 N. Michigan Ave., Chicago, IL 60611
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 312/915-1987
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
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
Item 1. Financial Statements . . . . . . . . . . . . . . . 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . 10
PART II OTHER INFORMATION
Item 5. Other Information. . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 12
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
ASSETS
------
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
------------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . $ 5,803,398 5,205,597
Interest and other receivables. . . . . . . . . . . . . . . . . . . . 108,197 115,957
------------ ------------
Total current assets. . . . . . . . . . . . . . . . . . . . . 5,911,595 5,321,554
------------ ------------
Mortgage notes receivable . . . . . . . . . . . . . . . . . . . . . . . 22,069,970 22,069,970
Deferred interest receivable (net of allowance for loan
loss of $436,021 in 1996 and 1995). . . . . . . . . . . . . . . . . . 1,133,589 1,039,161
Investment in unconsolidated ventures, at equity. . . . . . . . . . . . 8,399,052 8,199,483
Deferred costs in connection with mortgage investments. . . . . . . . . 212,698 219,914
------------ ------------
$ 37,726,904 36,850,082
============ ============
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS
------------------------------------------
Current liabilities:
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 203,389 180,435
Due to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . 306,830 256,935
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 15,065 14,971
------------ ------------
Total current liabilities . . . . . . . . . . . . . . . . . . 525,284 452,341
------------ ------------
Commitments and contingencies
Partners' capital accounts:
General partners:
Capital contributions . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Cumulative net earnings (losses). . . . . . . . . . . . . . . . . . 1,638,181 1,630,142
Cumulative cash distributions . . . . . . . . . . . . . . . . . . . (1,585,752) (1,585,752)
------------ ------------
53,429 45,390
------------ ------------
Limited partners (43,276.25 interests):
Capital contributions, net of offering costs. . . . . . . . . . . . 37,619,348 37,619,348
Cumulative net earnings (losses). . . . . . . . . . . . . . . . . . 19,106,204 18,310,364
Cumulative cash distributions . . . . . . . . . . . . . . . . . . . (19,577,361) (19,577,361)
------------ ------------
37,148,191 36,352,351
------------ ------------
Total partners' capital accounts. . . . . . . . . . . . . . . 37,201,620 36,397,741
------------ ------------
$ 37,726,904 36,850,082
============ ============
<FN>
See accompanying notes to financial statements.
</TABLE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------- -----------
<S> <C> <C>
Income:
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 725,584 621,918
----------- ----------
Expenses:
Mortgage investment servicing fees. . . . . . . . . . . . . . . . . . 13,718 13,718
Professional services . . . . . . . . . . . . . . . . . . . . . . . . 23,272 25,000
Amortization of deferred expenses . . . . . . . . . . . . . . . . . . 8,946 8,946
General and administrative. . . . . . . . . . . . . . . . . . . . . . 75,338 37,926
----------- ----------
121,274 85,590
----------- ----------
Operating earnings (loss) . . . . . . . . . . . . . . . . . . 604,310 536,328
Partnership's share of operations (loss) of
unconsolidated ventures . . . . . . . . . . . . . . . . . . . . . . . 199,569 183,517
----------- ----------
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . $ 803,879 719,845
=========== ==========
Net earnings (loss) per limited partnership interest. . . . . $ 18.39 15.24
=========== ==========
Cash distributions per limited partnership interest . . . . . $ -- 13.50
=========== ==========
<FN>
See accompanying notes to financial statements.
</TABLE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 803,879 719,845
Items not requiring cash or cash equivalents:
Amortization of deferred expenses . . . . . . . . . . . . . . . . . . . 8,946 8,946
Partnership's share of operations of unconsolidated ventures,
net of distributions. . . . . . . . . . . . . . . . . . . . . . . . . (199,569) (183,517)
Changes in:
Interest and other receivables. . . . . . . . . . . . . . . . . . . . . . 7,760 62,999
Deferred interest receivable. . . . . . . . . . . . . . . . . . . . . . . (94,428) (68,250)
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,954 67,405
Due to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,895 12,785
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 (90,187)
------------ -----------
Net cash provided by (used in) operating activities . . . . . . . 599,531 530,026
------------ -----------
Cash flows from investing activities:
Net sales and maturities (purchases) of short-term investments. . . . . . -- (3,776,601)
Payment of deferred expenses. . . . . . . . . . . . . . . . . . . . . . . (1,730) --
------------ -----------
Net cash provided by (used in) investing activities . . . . . . . (1,730) (3,776,601)
------------ -----------
Cash flows from financing activities:
Distributions to limited partners . . . . . . . . . . . . . . . . . . . . -- (584,232)
Distributions to general partners . . . . . . . . . . . . . . . . . . . . -- (60,106)
------------ -----------
Net cash provided by (used in) financing activities . . . . . . . -- (644,338)
------------ -----------
Net increase (decrease) in cash and cash equivalents. . . . . . . 597,801 (3,890,913)
Cash and cash equivalents, beginning of year. . . . . . . . . . . 5,205,597 4,337,357
------------ -----------
Cash and cash equivalents, end of period. . . . . . . . . . . . . $ 5,803,398 446,444
============ ===========
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest . . . . . . . . . . . . . . . . $ -- --
============ ===========
Non-cash investing and financing activities . . . . . . . . . . . . . . . $ -- --
============ ===========
<FN>
See accompanying notes to financial statements.
</TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996 AND 1995
(UNAUDITED)
GENERAL
Readers of this quarterly report should refer to the Partnership's
audited financial statements for the fiscal year ended December 31, 1995
which are included in the Partnership's 1995 Annual Report, as certain
footnote disclosures which would substantially duplicate those contained in
such audited financial statements have been omitted from this report.
The preparation of financial statements in accordance with GAAP
requires the Partnership to make estimates and assumptions that affect the
reported or disclosed amount of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results may differ from such
estimates.
Statement of Financial Accounting Standards No. 121 was adopted by the
Partnership on January 1, 1996.
TRANSACTIONS WITH AFFILIATES
Fees, commissions and other expenses required to be paid by the
Partnership to the Corporate General Partner and its affiliates as of March
31, 1996 and for the three months ended March 31, 1996 and 1995 are as
follows:
Unpaid at
March 31,
1996 1995 1996
------- ------ -------------
Mortgage investment
servicing fees. . . . . . . $13,718 13,718 13,718
Reimbursement (at cost) for
out-of-pocket expenses
and salaries and salary-
related expenses. . . . . . 16,437 26,687 33,049
------- ------ ------
$30,155 40,405 46,767
======= ====== ======
Affiliates of the General Partners are entitled to property management
fees for the North Rivers Market Shopping Center. In 1996, the
Partnership's proportionate share of these fees was $5,997, all of which
was paid at March 31, 1996.
The General Partners have deferred payment of certain of their
distributions of net cash flow from the Partnerships aggregating
approximately $442,000 at March 31, 1996 which is being deferred in
accordance with the subordination requirements of the Partnership
Agreement. All amounts deferred or currently payable do not bear interest.
RIVERPOINT CENTER
The Silo Electronic store (12,100 sq. ft.) at Riverpoint Center
vacated its space in the third quarter 1995 and subsequently filed for
bankruptcy. The borrower is pursuing its legal remedies regarding the
remaining amounts due. As a result, the borrower had notified the lenders
that it is experiencing financial difficulties and had approached the
Lenders regarding a loan modification. The Lenders and borrowers have
reached an agreement in principal to defer payment of debt service payments
for a certain period of time. However, there can be no assurance that such
agreement will be finalized under these terms or any others. The borrowers
have leased the space to the Old Navy Clothing Co., for five years with
rent commencing July 1996. As of the date of this report, certain escrow
payments are due to the Lenders; however, the borrower is current in its
monthly debt service payments. The Partnership is recognizing interest
income only as collected.
FRANKLIN FARM VILLAGE CENTER
A tenant, which has a ground lease with the borrower, informed the
borrower and the appropriate state agencies that gasoline was discharged
into the ground. The Lenders were then informed by the borrower. The
Lenders have been informed that the tenant, which operates a gasoline
station at the site, is cooperating fully with all government agencies in
order to rectify this problem in a expeditious manner and that no
underground nearby water supplies were affected nor does it appear likely
that any will be affected in the future. The tenant (an affiliate of a
national gasoline marketer) appears to have the financial resources to
fully pay for the clean up at the property. At this time it is
undeterminable what the cost of the clean up will be and the Lenders do not
currently expect that the value of the property has been materially
affected. However, there can be no assurances that the gasoline leak, as
reported, will not have a material impact on the value of the Lenders'
security in the future. Subsequent to the end of the quarter, the Lenders
reached an agreement with the borrower regarding an early repayment of the
mortgage loan. Such agreement allows the borrower to repay the loan at a
predetermined amount (at a premium to the Lenders' current principal
balances) prior to August 8, 1996. There can be no assurance that such
loan will be prepaid. As of the date of this report, no amounts currently
due from the borrower of this loan are in arrears.
CALIBRE POINT APARTMENTS
Calibre Point Associates entered into a purchase agreement in April
1996 with an independent third party to sell the property known as Calibre
Pointe Apartments. In such event, Calibre Pointe Associates and the
Partnership would recognize a net gain for financial reporting and Federal
income tax purposes. The transaction is scheduled to close during 1996.
However, there can be no assurance that this transaction will be
consummated on these or any other terms.
As a result of this proposed transaction, the property was classified
as held for sale or disposition as of January 1, 1996 and therefore has not
been subject to continued depreciation. The accompanying financial
statements include approximately $150,000 and $105,000 of operations of
such properties for the three months ended March 31, 1996 and 1995. The
property had a carrying value of approximately $11,580,000 at March 31,
1996 and December 31, 1995.
NORTH RIVERS MARKET SHOPPING CENTER
Occupancy of North Rivers Market Shopping Center in North Charleston,
South Carolina was 85% at March 31, 1996. Phar Mor, a major tenant at the
center filed for protection under Chapter 11 of the bankruptcy code. The
Phar Mor store at the center has continued to operate since its bankruptcy
filing and has been current on all rent payments due subsequent to filing.
The manager is aggressively attempting to lease the vacant space in the
center. However, the competitiveness of the market given the Naval
facility closings in the nearby area is expected to make it difficult to
lease space in the center, thereby extending the period of time it will
take to complete the lease-up of the center and resulting in a decrease in
cash flow from operations over the near term.
Pursuant to the requirements of the Securities and Exchange
Commission, the following is a summary of historical income statement
information for the Riverpoint Center and Franklin Farm Village Centers for
the three months ended March 31, 1996 and 1995. Such properties secure the
participating first mortgage investments made by the Partnership.
SELECTED FINANCIAL INFORMATION
1996 1995
---------- ----------
Total revenues . . . . . . . . . . $1,440,149 1,812,947
========== ==========
Net income (loss). . . . . . . . . $ 142,613 226,616
========== ==========
ADJUSTMENTS
In the opinion of the Corporate General Partner, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation have been made to the accompanying figures as of March 31,
1996 and for the three months ended March 31, 1996 and 1995.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Reference is made to the notes to the accompanying financial
statements for additional information concerning the Partnership's
investments.
After reviewing the properties and competitive market places in the
portfolio, the General Partners of the Partnership expect to be able to
liquidate the remaining assets as quickly as practicable. Therefore, the
affairs of the Partnership are expected to be wound up no later than 1999,
barring unforeseen economic developments including the inability to sell
the Franklin Farm Village Center note prior to its maturity in 2001.
RESULTS OF OPERATIONS
The increase in cash and cash equivalents at March 31, 1996 as
compared to December 31, 1995 is due primarily to the timing of interest
payments and distributions related to the Partnership's investments. The
cash balance includes approximately $274,000 of interest payments
distributable to the other participating lender (Mortgage Partners III).
The increase in deferred interest receivable at March 31, 1996 as
compared to December 31, 1995 is due to the continuing deferral of
additional interest earned under the terms of the mortgage loan receivable
by the Franklin Farm Village Center.
The increase in due to affiliates at March 31, 1996 as compared to
December 31, 1995 and the increase in general and administrative expenses
for the three months ended March 31, 1996 as compared to the same period in
1995 is attributable primarily to the recognition of additional prior year
reimbursable costs to affiliates of the General Partners.
Interest income increased for the three months ended March 31, 1996 as
compared to the same period in 1995 due to additional interest paid in 1996
on the Franklin Farm Village Center note, relating to 1995 operations
collected in April 1996 but not previously accrued, and as interest income
is recognized as collected, a higher interest payment rate in effect in
1996 for Riverpoint.
The increase in Partnership's share of operations of unconsolidated
ventures for the three months ended March 31, 1996 as compared to the same
period in 1995 is primarily due to an increase in effective rents and
occupancy at the Calibre Point Apartments.
<TABLE>
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
OCCUPANCY
The following is a listing of approximate occupancy levels by quarter for the Partnership's investment properties.
<CAPTION>
1995 1996
------------------------------- -------------------------------
At At At At At At At At
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1. Calibre Pointe Apartments
Atlanta, Georgia . . . . . . . . . . . . . . . . . . . 98% 90% 98% 96% 99%
2. North Rivers Market Shopping Center
North Charleston, South Carolina. . . . . . . . . . . 80% 80% 80% 88% 85%
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following documents are filed as part of this report:
3-A. The Prospectus of the Partnership dated July 24, 1985,
as supplemented January 27, 1986, April 29, 1986, June 11, 1986, August 14,
1986, September 27, 1986, September 28, 1987 as filed with the Commission
pursuant to Rules 424(b) and 424(c), is hereby incorporated herein by
reference to Exhibit 3-A to the Partnership's Report for December 31, 1992
on Form 10-K (File No. 0-16599) dated March 19, 1993.
3-B. Amended and Restated Agreement of Limited Partnership
set forth as Exhibit A to the Prospectus, which is hereby incorporated
herein by reference to the Partnership's Registration Statement on Form S-
11 (File No. 33-4036) dated September 18, 1986.
10-A. Loan documents related to the Partnership's
participation in the funding of a first mortgage loan secured by a first
mortgage on Riverpoint Center Shopping Center located in Chicago, Illinois,
is hereby incorporated herein by reference to the Partnership's Form 8-K
(File No. 33-4036) dated September 5, 1989.
10-B. Loan documents related to the Partnership's
participation in the funding of a first mortgage loan secured by Franklin
Farm Village Shopping Center located in Fairfax County, Virginia, is hereby
incorporated herein by reference to the Partnership's Form 8-K (File No. 0-
16599) dated November 21, 1991.
10-C. First and Second Amendments to the loan documents dated
September 28, 1993 and November 23, 1994, respectively, between
Rosenfeld/Franklin Farm Village Center L.P. and Mortgage Partners, Ltd.-IV,
relating to additional loan amounts, are hereby incorporated herein by
reference to the Partnership's Report for December 31, 1994 on Form 10-K
(File No. 0-16599) dated March 27, 1995.
27. Financial Data Schedule
(b) No Reports on Form 8-K have been filed for the quarter covered
by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
JMB MORTGAGE PARTNERS, LTD. - IV
BY: JMB Realty Corporation
(Corporate General Partner)
GAILEN J. HULL
By: Gailen J. Hull, Senior Vice President
Date: May 10, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following person in the capacity
and on the date indicated.
GAILEN J. HULL
Gailen J. Hull,
Principal Accounting Officer
Date: May 10, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE REGISTRANT'S FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 1996
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS INCLUDED IN SUCH REPORT.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,803,397
<SECURITIES> 0
<RECEIVABLES> 108,197
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,911,595
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 37,726,904
<CURRENT-LIABILITIES> 525,284
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 37,201,620
<TOTAL-LIABILITY-AND-EQUITY> 37,726,904
<SALES> 725,584
<TOTAL-REVENUES> 725,584
<CGS> 0
<TOTAL-COSTS> 22,664
<OTHER-EXPENSES> 98,610
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 604,310
<INCOME-TAX> 0
<INCOME-CONTINUING> 803,879
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 803,879
<EPS-PRIMARY> 18.39
<EPS-DILUTED> 18.39
</TABLE>
