SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q/A
AMENDMENT NO. 1
Filed pursuant to Section 12, 13, or 15(d) of the
Securities Exchange Act of 1934
JMB MORTGAGE PARTNERS, LTD. - IV
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
IRS Employer Identification
Commission File No. 0-16599 No. 36-3426138
The undersigned registrant hereby amends the following sections of its
Report for the quarter ended June 30, 1996 on Form 10-Q as set forth in the
pages attached hereto:
ITEM 1. FINANCIAL STATEMENTS
Pages 3 to 11
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.
JMB MORTGAGE PARTNERS, LTD. - IV
By: JMB Realty Corporation
(Corporate General Partner)
By: GAILEN J. HULL
Gailen J. Hull, Senior Vice President
and Principal Accounting Officer
Dated: August 26, 1996
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
JUNE 30, 1996 AND DECEMBER 31, 1995
(UNAUDITED)
ASSETS
------
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
------------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . $ 10,558,301 5,205,597
Interest and other receivables . . . . . . . . . . . . . . . 122,426 115,957
------------ ------------
Total current assets . . . . . . . . . . . . . . . . 10,680,727 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) . . . . . . . . . . . . . 1,218,156 1,039,161
Investment in unconsolidated ventures, at equity . . . . . . . 3,907,640 8,199,483
Deferred costs in connection with mortgage investments . . . . 204,745 219,914
------------ ------------
$ 38,081,238 36,850,082
============ ============
3
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
BALANCE SHEETS - CONTINUED
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS
------------------------------------------
JUNE 30, DECEMBER 31,
1996 1995
------------- -----------
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 202,830 180,435
Due to affiliates. . . . . . . . . . . . . . . . . . . . . . 260,233 256,935
Other liabilities. . . . . . . . . . . . . . . . . . . . . . 15,202 14,971
------------ ------------
Total current liabilities. . . . . . . . . . . . . . 478,265 452,341
------------ ------------
Commitments and contingencies
Partners' capital accounts:
General partners:
Capital contributions. . . . . . . . . . . . . . . . . . . 1,000 1,000
Cumulative net earnings (losses) . . . . . . . . . . . . . 1,774,511 1,630,142
Cumulative cash distributions. . . . . . . . . . . . . . . (1,720,389) (1,585,752)
------------ ------------
55,122 45,390
------------ ------------
Limited partners (43,276.25 interests):
Capital contributions, net of offering costs . . . . . . . 37,619,348 37,619,348
Cumulative net earnings (losses) . . . . . . . . . . . . . 20,698,861 18,310,364
Cumulative cash distributions. . . . . . . . . . . . . . . (20,770,358) (19,577,361)
------------ ------------
37,547,851 36,352,351
------------ ------------
Total partners' capital accounts . . . . . . . . . . 37,602,973 36,397,741
------------ ------------
$ 38,081,238 36,850,082
============ ============
<FN>
See accompanying notes to financial statements.
4
</TABLE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
----------------------------------------------------
1996 1995 1996 1995
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Income:
Interest income. . . . . . . . . . . . . $ 659,928 668,850 1,385,512 1,290,768
----------- ---------- ----------- ----------
Expenses:
Mortgage investment servicing fees . . . 14,023 13,870 27,741 27,588
Professional services. . . . . . . . . . 16,074 19,432 39,346 44,432
Amortization of deferred expenses. . . . 9,111 9,111 18,057 18,057
General and administrative . . . . . . . 60,720 50,166 136,058 88,092
----------- ---------- ----------- ----------
99,928 92,579 221,202 178,169
----------- ---------- ----------- ----------
Operating earnings (loss). . . . 560,000 576,271 1,164,310 1,112,599
Partnership's share of operations
(loss) of unconsolidated ventures. . . . 195,768 145,656 395,337 329,173
----------- ---------- ----------- ----------
Net operating earnings (loss). . 755,768 721,927 1,559,647 1,441,772
Gain on sale of property by
unconsolidated venture . . . . . . . . . 973,219 -- 973,219 --
----------- ---------- ----------- ----------
Net earnings (loss). . . . . . . $ 1,728,987 721,927 2,532,866 1,441,772
=========== ========== =========== ==========
5
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS - CONTINUED
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
----------------------------------------------------
1996 1995 1996 1995
----------- ---------- ----------- ----------
Net earnings (loss) per
limited partnership
interest:
Net operating earnings
(loss). . . . . . . . . . . . $ 14.54 15.18 32.93 30.43
Gain on sale of property
by unconsolidated venture . . 22.26 -- 22.26 --
----------- ---------- ----------- ----------
$ 36.80 15.18 55.19 30.43
=========== ========== =========== ==========
Cash distributions per
limited partnership
interest. . . . . . . . . . . . $ 27.00 13.50 27.00 27.00
=========== ========== =========== ==========
<FN>
See accompanying notes to financial statements.
6
</TABLE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss). . . . . . . . . . . . . . . . . . . . . . .$ 2,532,866 1,441,772
Items not requiring cash or cash equivalents:
Amortization of deferred expenses. . . . . . . . . . . . . . . 18,057 18,057
Partnership's share of operations of unconsolidated ventures,
net of distributions . . . . . . . . . . . . . . . . . . . . 806,087 1,764,389
Gain on sale of property by unconsolidated venture . . . . . . (973,219) --
Changes in:
Interest and other receivables . . . . . . . . . . . . . . . . . (6,469) (46,532)
Deferred interest receivable . . . . . . . . . . . . . . . . . . (178,995) (167,975)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . 22,395 36,408
Due to affiliates. . . . . . . . . . . . . . . . . . . . . . . . 3,298 (38,809)
Other liabilities. . . . . . . . . . . . . . . . . . . . . . . . 230 (40,468)
------------ -----------
Net cash provided by (used in) operating activities. . . 2,224,250 2,966,842
------------ -----------
Cash flows from investing activities:
Net sales and maturities (purchases) of short-term investments . -- (4,433,106)
Distributions from unconsolidated ventures, including cash
proceeds from sale of property . . . . . . . . . . . . . . . . 4,458,976 --
Payment of deferred expenses . . . . . . . . . . . . . . . . . . (2,888) (2,317)
------------ -----------
Net cash provided by (used in) investing activities. . . 4,456,088 (4,435,423)
------------ -----------
Cash flows from financing activities:
Distributions to limited partners. . . . . . . . . . . . . . . . (1,192,997) (1,168,464)
Distributions to general partners. . . . . . . . . . . . . . . . (134,637) (125,020)
------------ -----------
Net cash provided by (used in) financing activities. . . (1,327,634) (1,293,484)
------------ -----------
Net increase (decrease) in cash and cash equivalents . . 5,352,704 (2,762,065)
Cash and cash equivalents, beginning of year . . . . . . 5,205,597 4,337,357
------------ -----------
Cash and cash equivalents, end of period . . . . . . . .$ 10,558,301 1,575,292
============ ===========
7
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS - CONTINUED
1996 1995
------------ -----------
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.
8
</TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 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
The Partnership, pursuant to the Partnership Agreement, is permitted
to engage in various transactions involving the Corporate General Partner
and its affiliates including the reimbursement for salaries and salary-
related expenses of its employees, certain of its officers, and other
direct expenses relating to the administration of the Partnership and the
operation of the Partnership's investments. Fees, commissions and other
expenses required to be paid by the Partnership to the General Partners and
their affiliates as of June 30, 1996 and for the three months ended June
30, 1996 and 1995 were as follows:
Unpaid at
June 30,
1996 1995 1996
------- ------ ---------
Property management
and leasing fees. . . . . $ 9,230 17,667 --
Mortgage investment
servicing fees . . . . . 27,740 27,588 13,832
Reimbursement (at cost) for
out-of-pocket expenses
and salaries and salary-
related expenses . . . . 32,838 31,104 24,370
------- ------ ------
$68,808 76,359 38,202
======= ====== ======
The General Partners have deferred payment of approximately $442,000
of their distributions of prior net cash flow from the Partnership at June
30, 1996 in accordance with the subordination requirements of the
Partnership Agreement. All amounts deferred or currently payable do not
bear interest.
9
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. The borrowers leased the space to the Old Navy
Clothing Co., for five years with rent commencing July 1996. The borrower
had notified the Lenders that it was experiencing financial difficulties
and had approached the Lenders regarding a loan modification. During July
1996, the Lenders and borrowers reached an agreement in principle to defer
payment of a portion of the scheduled debt service payments from September
15, 1995 to July 15, 1996. In conjunction with the modification agreement
in principle, the scheduled maturity date of the loan would be accelerated
to December 31, 1997. Finally, the Lenders have agreed to accept at
certain dates through June 30, 1997 repayment of the loan at specified
amounts. Repayment of the loan per such agreement would yield the Lenders,
when paid, an amount less than what would otherwise be due per the original
terms of the mortgage loan. However, there can be no assurance that such
agreement will be finalized under these terms or any others. As of the
date of this report, certain escrow and real estate tax payments are
delinquent; however, the borrower is current in its full monthly debt
service payments. The Partnership is recognizing interest income only as
collected.
Subsequent to the end of the quarter, the borrower notified the
Lenders that a tenant which operates a dry cleaning plant at the site has
leaked a chemical associated with the dry cleaning process that can cause
environmental problems if not handled properly. The borrower is currently
performing tests to assess the extent of the contamination. At this time
it is not possible to reasonably estimate what the cost of any required
remidiation. The Lenders do not currently expect that the value of the
borrower's property has been materially impaired; however, there can be no
assurance that the contamination will not have a material impact on the
value of the Lender's security until more information becomes available.
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 nearby
underground 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 indeterminable what the
cost of the clean up will be. The Lenders do not currently expect that the
value of the borrower's 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.
During July 1996, the Lenders executed 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 prior to October
8, 1996. If the loan is repaid pursuant to such agreement, the Lenders
will receive an amount less then what would otherwise be due under the
terms of the original mortgage loan. There can be no assurance that such
loan will be prepaid. However, effective July 1996, the Partnership is
recognizing income only as collected. As of the date of the report, no
amounts currently due from the borrower of this loan are in arrears.
10
CALIBRE POINT APARTMENTS
Calibre Pointe Associates entered into a purchase agreement in April
1996 with an independent third party to sell the property. The sale price
of the apartments was $14,450,000, paid in cash at closing on May 30, 1996.
Calibre Pointe Associates will recognize a gain of approximately $2,578,000
for financial reporting purposes in 1996, of which approximately $973,000
will be allocable to the Partnership. Calibre Pointe Associates expects to
recognize a gain of approximately $2,200,000 for Federal income tax
purposes in 1996 of which approximately $830,000 will be allocable to the
Partnership.
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
$228,000 and $188,000 of operations of such property for the six months
ended June 30, 1996 and 1995 (reflected as a component of the Partnership's
share of operations (loss) of unconsolidated ventures). The property had a
net carrying value of approximately $11,580,000 at December 31, 1995.
NORTH RIVERS MARKET SHOPPING CENTER
Occupancy of North Rivers Market Shopping Center in North Charleston,
South Carolina was 83% at June 30, 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.
SELECTED FINANCIAL INFORMATION
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 six months ended June 30, 1996 and 1995. Such properties secure the
participating first mortgage investments made by the Partnership.
1996 1995
---------- ----------
Total revenues. . . . . . . . $2,895,497 3,227,369
========== ==========
Net income (loss) . . . . . . $ 155,474 121,572
========== ==========
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 June 30, 1996
and for the three and six months ended June 30, 1996 and 1995.
11
