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, 1997 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
<PAGE>
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. . . . . . . 9
PART II OTHER INFORMATION
Item 5. Other Information. . . . . . . . . . . . . . . . 10
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . 11
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1997 AND DECEMBER 31, 1996
(UNAUDITED)
ASSETS
------
<CAPTION>
MARCH 31, DECEMBER 31,
1997 1996
------------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . $ 5,902,469 28,105,829
Interest and other receivables. . . . . . . . . . . . . . . . . . . 23,412 341,995
------------ ------------
Total current assets. . . . . . . . . . . . . . . . . . . . 5,925,881 28,447,824
------------ ------------
Investment in unconsolidated venture, at equity . . . . . . . . . . . 3,303,644 3,813,205
------------ ------------
$ 9,229,525 32,261,029
============ ============
<PAGE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
BALANCE SHEETS - CONTINUED
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS
------------------------------------------
MARCH 31, DECEMBER 31,
1997 1996
------------- -----------
Current liabilities:
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . $ 177,945 226,215
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . -- 97,373
------------ ------------
Total current liabilities . . . . . . . . . . . . . . . . . 177,945 323,588
------------ ------------
Commitments and contingencies
Partners' capital accounts:
General partners:
Capital contributions . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Cumulative net earnings (losses). . . . . . . . . . . . . . . . . 1,907,081 1,904,412
Cumulative cash distributions . . . . . . . . . . . . . . . . . . (1,850,218) (1,850,218)
------------ ------------
57,863 55,194
------------ ------------
Limited partners (43,276.25 interests):
Capital contributions, net of offering costs. . . . . . . . . . . 37,619,348 37,619,348
Cumulative net earnings (losses). . . . . . . . . . . . . . . . . 21,659,129 21,394,865
Cumulative cash distributions . . . . . . . . . . . . . . . . . . (50,284,760) (27,131,966)
------------ ------------
8,993,717 31,882,247
------------ ------------
Total partners' capital accounts. . . . . . . . . . . . . . 9,051,580 31,937,441
------------ ------------
$ 9,229,525 32,261,029
============ ============
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
<CAPTION>
1997 1996
------------ -----------
<S> <C> <C>
Income:
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 242,476 725,584
----------- ----------
Expenses:
Mortgage investment servicing fees. . . . . . . . . . . . . . . . . . . . -- 13,718
Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . 21,518 23,272
Amortization of deferred expenses . . . . . . . . . . . . . . . . . . . . -- 8,946
General and administrative. . . . . . . . . . . . . . . . . . . . . . . . 47,644 75,338
----------- ----------
69,162 121,274
----------- ----------
Operating earnings (loss) . . . . . . . . . . . . . . . . . . . . 173,314 604,310
Partnership's share of operations
(loss) of unconsolidated ventures . . . . . . . . . . . . . . . . . . . . 93,619 199,569
----------- ----------
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . $ 266,933 803,879
=========== ==========
Net earnings (loss) per limited
partnership interest. . . . . . . . . . . . . . . . . . . . . . $ 6.11 18.39
=========== ==========
Cash distributions per
limited partnership
interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 535.00 --
=========== ==========
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(UNAUDITED)
<CAPTION>
1997 1996
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 266,933 803,879
Items not requiring cash or cash equivalents:
Amortization of deferred expenses . . . . . . . . . . . . . . . . . . . -- 8,946
Partnership's share of operations of unconsolidated ventures,
net of distributions. . . . . . . . . . . . . . . . . . . . . . . . . -- (199,569)
Changes in:
Interest and other receivables. . . . . . . . . . . . . . . . . . . . . . 318,583 7,760
Deferred interest receivable. . . . . . . . . . . . . . . . . . . . . . . -- (94,428)
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48,270) 22,954
Due to affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 49,895
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . (97,373) 94
------------ -----------
Net cash provided by (used in) operating activities . . . . . . . 439,873 599,531
------------ -----------
Cash flows from investing activities:
Distributions from unconsolidated ventures. . . . . . . . . . . . . . . . 509,561 --
Payment of deferred expenses. . . . . . . . . . . . . . . . . . . . . . . -- (1,730)
------------ -----------
Net cash provided by (used in) investing activities . . . . . . . 509,561 (1,730)
------------ -----------
Cash flows from financing activities:
Distributions to limited partners . . . . . . . . . . . . . . . . . . . . (23,152,794) --
------------ -----------
Net cash provided by (used in) financing activities . . . . . . . (23,152,794) --
------------ -----------
Net increase (decrease) in cash and cash equivalents. . . . . . . (22,203,360) 597,801
Cash and cash equivalents, beginning of year. . . . . . . . . . . 28,105,829 5,205,597
------------ -----------
Cash and cash equivalents, end of period. . . . . . . . . . . . . $ 5,902,469 5,803,398
============ ===========
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>
<PAGE>
JMB MORTGAGE PARTNERS, LTD. - IV
(A LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997 AND 1996
(UNAUDITED)
GENERAL
Readers of this quarterly report should refer to the Partnership's
audited financial statements for the fiscal year ended December 31, 1996
which are included in the Partnership's 1996 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.
The Partnership adopted Statement of Financial Accounting Standards
No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to be Disposed of" ("SFAS 121") as required in the first
quarter of 1996. The Partnership's policy is to consider a property to be
held for sale or disposition when the Partnership has committed to a plan
to sell such property and active marketing activity has commenced or is
expected to commence in the near term. In accordance with SFAS 121, any
properties identified as "held for sale or disposition" are no longer
depreciated. As of December 31, 1996, the Partnership has committed to a
plan to sell the North Rivers Market Shopping Center investment property.
Accordingly, this property has been classified as held for sale or
disposition. The accompanying consolidated financial statements include
$93,619 and $199,569, respectively, of the Partnership's share of total
property operations of $279,378 and $545,559 for the three months ended
March 31, 1997 and 1996 for unconsolidated properties held for sale or sold
during the past two years.
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 March 31, 1997 and for the three months ended March
31, 1997 and 1996 were as follows:
Unpaid at
March 31,
1997 1996 1997
------- ------ ---------
Property management
and leasing fees . . . . . . $ 9,074 5,997 --
Mortgage investment
servicing fees. . . . . . . -- 13,718 --
Reimbursement (at cost) for
out-of-pocket expenses
and salaries and salary-
related expenses. . . . . . 7,833 5,973 7,833
------- ------ ------
$16,907 25,688 7,833
======= ====== ======
<PAGE>
The General Partners have deferred payment of approximately $442,000
of their distributions of prior net cash flow from the Partnership and
approximately $877,000 of their subordinated portion of sales and repayment
proceeds at March 31, 1997 in accordance with the subordination
requirements of the Partnership Agreement. Such subordination requirements
are not expected to be attained over the remaining expected operating
period of the Partnership. All amounts deferred or currently payable do
not bear interest.
NORTH RIVERS MARKET SHOPPING CENTER
Occupancy was 87% at March 31, 1997. The manager is attempting to
lease the vacant space in the center. As the Partnership has committed to
a plan to sell the property, the property was classified as held for sale
or disposition as of December 31, 1996 and therefore, is not subject to
continued depreciation. As of the date of this report, no potential
purchasers for this property have been identified. Therefore, there can be
no assurance that a sale transaction on acceptable terms can be arranged
during 1997.
UNCONSOLIDATED VENTURE - SUMMARY INFORMATION
Pursuant to the requirements of the Securities and Exchange
Commission, the following is a summary of historical income statement
information for the North Rivers Market Shopping Center Venture for the
three months ended March 31, 1997 and 1996.
1997 1996
-------- ----------
Total income . . . . . . . . . . . $408,024 340,324
======== =======
Operating income . . . . . . . . . $279,378 149,533
======== =======
Net income to Partnership. . . . . $ 93,619 50,109
======== =======
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,
1997 and for the three months ended March 31, 1997 and 1996.
<PAGE>
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.
The affairs of the Partnership are expected to be wound up no later
than 1999, barring unforeseen economic developments. However, the
Partnership's goal of capital appreciation will not be achieved. Although
the Partnership expects to distribute sale proceeds from the disposition of
the Partnership's remaining investment in North Rivers Market, aggregate
sale and repayment distributions received by Holders of Interests over the
entire term of the Partnership are expected to be less than their original
investment.
RESULTS OF OPERATIONS
The decrease in cash and cash equivalents at March 31, 1997 as
compared to December 31, 1996 is primarily due to distributions of
approximately $23,153,000 made to the Limited Partners in February 1997
representing a portion of the proceeds from the repayment of Franklin Farm
Village Center and Riverpoint Shopping Center mortgage loans in 1996.
The decrease in interest and other receivables at March 31, 1997 as
compared to December 31, 1996 is primarily due to the 1997 receipt from the
affiliated venture partner (Mortgage Partners-III) of the final
distribution of cash from Calibre Point Apartments, sold in May 1996.
The decrease in accounts payable at March 31, 1997 as compared to
December 31, 1996 is primarily due to the payment of accrued expenses for
mortgage investment servicing fees and professional fees.
The decrease in other liabilities at March 31, 1997 as compared to
December 31, 1996 is primarily due to deposits held for real estate taxes
and insurance for the Riverpoint Shopping Center at December 31, 1996 which
were remitted to the borrower in 1997 in conjunction with the December 1996
loan payoff.
The decreases in interest income, mortgage investments servicing fees,
and amortization of deferred expenses for the three months ended March 31,
1997 as compared to the same period in 1996 are due to the repayment of the
Riverpoint Center and Franklin Farm Village Center mortgage loans in 1996.
The decrease in Partnership's share of operations of unconsolidated
ventures for the three months ended March 31, 1997 as compared to the same
period in 1996 is primarily due to the sale of the Calibre Pointe
Apartments in May 1996.
<PAGE>
<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 property
owned during 1997.
<CAPTION>
1996 1997
------------------------------- -------------------------------
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. North Rivers Market Shopping Center
North Charleston, South Carolina. . . . . . . . . . . 85% 83% 83% 81% 87%
</TABLE>
<PAGE>
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 September 18,
1986, as supplemented January 22, 1987, April 23, 1987,
June 12, 1987, August 6, 1987, September 14, 1987, and September 28, 1987
as filed with the commission pursuant to Rules 424 (b) and 424 (c), is
hereby incorporated herein by reference to the Partnership's Report on Form
S-11 (File No. 33-4036) dated September 18, 1986.
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.
3-C. Acknowledgement of rights and duties of the General
Partners of the Partnership between AGPP Associates, L.P. (a successor
Associated General Partner of the Partnership) and JMB Realty Corporation
as of December 31, 1995 is hereby incorporated herein by reference to the
Partnership's report for June 30, 1996 on Form 10-Q (File No. 0-16599)
dated August 9, 1996.
27. Financial Data Schedule
(b) No reports on Form 8-K have been filed during the last quarter
of the period covered by this report.
<PAGE>
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 9, 1997
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 9, 1997
<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, 1997 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-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 5,902,469
<SECURITIES> 0
<RECEIVABLES> 23,412
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,925,881
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 9,229,525
<CURRENT-LIABILITIES> 177,945
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 9,051,580
<TOTAL-LIABILITY-AND-EQUITY> 9,229,525
<SALES> 242,476
<TOTAL-REVENUES> 242,476
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 69,162
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 173,314
<INCOME-TAX> 0
<INCOME-CONTINUING> 266,933
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 266,933
<EPS-PRIMARY> 6.11
<EPS-DILUTED> 6.11
</TABLE>
