FLORIDA INCOME FUND II, L.P.
INDEX
PAGE NO.
PART I
FINANCIAL INFORMATION
Balance Sheets at June 30 1995
and December 31, 1994. . . . . . . . . . . . . . . . . .2
Statements of Income for the Three and Six
Months Ended June 30, 1995 and 1994. . . . . . . . . . .3
Statements of Cash Flows for the Three and Six
Months Ended June 30, 1995 and 1994. . . . . . . . . . .4
Notes to Financial Statements. . . . . . . . . . . . . .5
Management's Discussion and Analysis of
Financial Condition and Results of Operations. . . . .5-8
Other Information. . . . . . . . . . . . . . . . . . . .9
Signatures . . . . . . . . . . . . . . . . . . . . . . 10
Cover Page
Exhibit 27 - Financial Data Schedule
PAGE 1<PAGE>
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<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
June 30, Dec. 31,
1995 1994
___________ ___________
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash 25,031 93,321
A/R Trade, Net of allowance for 123,150 87,049
doubtful accounts of $23,535
for June 30, 1995 and $23,535
for December 31, 1994)
Notes Receivable 73,178 88,719
Prepaid Expenses and Other 252,879 195,815
___________ ___________
Total Current Assets 474,238 464,904
RENTAL PROPERTIES, NET OF
ACCUMULATED DEPRECIATION OF
$3,782,071 AT JUNE 30, 1995 AND
$3,514,674 AT DECEMBER 31, 1994 16,223,129 16,375,160
INTANGIBLE ASSETS
Deferred Loan Costs, Net 54,353 83,827
__________ __________
TOTAL ASSETS 16,751,720 16,923,891
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Current Maturities of Notes
and Mortgages Payable 8,191,379 6,606,330
Accounts Payable 55,467 104,702
Accrued Expenses 134,380 120,374
Customer & Security Deposits 184,342 196,596
___________ ___________
TOTAL CURRENT LIABILITIES 8,565,568 7,028,002
NOTES AND MORTGAGES PAYABLE 2,513,466 4,210,196
PARTNERS' CAPITAL
General Partners' Capital (168,920) (163,312)
Limited Partners' Capital 5,742,633 5,849,005
Net Income 98,973 -0-
___________ ___________
TOTAL PARTNERS' EQUITY 5,672,686 5,685,693
TOTAL LIABILITIES
AND PARTNERS' CAPITAL 16,751,720 16,923,891
</TABLE>
See Accompanying Notes to the Financial Statements
PAGE 2<PAGE>
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
STATEMENTS OF INCOME
(Unaudited)
For Three Months Ended For Six Months Ended
06/30/95 06/30/94 06/30/95 06/30/94
________ ________ ________ ________
<S> <C> <C> <C> <C>
REVENUES:
Rental Income 750,728 796,095 1,483,055 1,624,559
Interest Income 798 110 2,034 402
_______ _______ _________ _________
Total Revenues 751,526 796,205 1,485,089 1,624,961
EXPENSES:
Property Operating
Expenses 223,573 239,272 471,893 481,701
Real Estate Taxes 55,089 66,092 110,178 132,053
Interest Expense 253,936 258,531 507,172 540,965
Depreciation 133,699 147,525 267,398 295,049
Amortization 14,738 14,738 29,475 29,475
_______ _______ _________ _________
Total Expenses 681,035 726,158 1,386,116 1,479,243
NET INCOME 70,491 70,047 98,973 145,718
</TABLE>
See accompanying Notes to the Financial Statements
PAGE 3<PAGE>
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<TABLE>
<CAPTION>
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Unaudited)
For Six Months Ended
06/30/95 06/30/94
________ ________
<S> <C> <C>
Cash Flows From Operating Activities:
Net Income 98,973 145,718
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation & Amortization 296,873 324,524
(Increase) decrease in receivables (20,560) (68,444)
(Increase) decrease in prepaid
expenses and other (57,064) (4,279)
Increase (decrease) accounts payable
and accrued expenses (35,231) (2,223)
Increase (decrease) in customer
and security deposits (12,254) (8,702)
Net cash flow provided by operating _________ _________
activities 270,737 386,594
Cash flows from investing activities:
Improvements to rental properties (115,366) (47,138)
_________ _________
Net cash used in investing activities (115,366) (47,138)
Cash flows from financing activities:
Repayments of long-term borrowings (111,681) (122,997)
Partner distribution paid (111,980) (302,827)
Loan origination fees paid -0- (4,004)
Proceeds from short term borrowings -0- -0-
Repayment of short term borrowings -0- -0-
_________ _________
Net cash flows used by financing activities (223,661) (429,828)
Net increase (decrease) in cash (68,290) (90,372)
Cash at beginning of year 93,321 91,576
Cash at June 30 25,031 1,204
</TABLE>
See accompanying Notes to the Financial Statements
PAGE 4<PAGE>
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FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in
accordance with the instructions to Form 10-Q and therefore do not
include all disclosures necessary for fair presentation of the
Partnership's financial position, results of operations and
statements of cash flows in conformity with generally accepted
accounting principles, as set forth in the Partnership's Form 10-K
for the period ended December 31, 1994, or any other interim
period. In management's opinion, all adjustments have been made to
the financial statements necessary for a fair presentation of the
interim periods presented.
NOTE 2 - RELATED PARTY TRANSACTIONS
During the three month period ended June 30, 1995, and June 30,
1994, the Partnership incurred $41,959 and $49,847 in property
management fees paid to Mariner Capital Management, Inc., the
Managing General Partner, in accordance with the Partnership
Agreement. These expenses are included in property expenses. The
General Partners and their affiliates are also entitled to
reimbursement of costs (including amounts of any salaries paid to
employees or its affiliates) directly attributable to the operation
of the Partnership that could have been provided by independent
parties. Costs amounting to $70,603 were incurred during the
second quarter of 1995. This compares to $69,964 of costs that
were incurred during the second quarter of 1994.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1994, has been taken from the
audited Financial Statements at that date.
NOTE 4 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION RESULTS OF OPERATIONS
Liquidity
The Partnership's cash position, including interest bearing
deposits at June 30, 1995, was $25,031. This compares to its cash
position of $93,321 at December 31, 1994. At June 30, 1994, the
Partnership's cash position, including interest bearing deposits,
was $1,204.
PAGE 5<PAGE>
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Liquidity - Continued
The decrease in cash between December 31, 1994, and June 30, 1995,
was due primarily to cash provided by operations of $270,737,
principal repayments of $111,681, payments for rental property
improvements of $115,366 and partnership distributions paid of
$111,980.
The Partnership's total investment in properties for its portfolio
at June 30, 1995, was $20,005,200. This compares to its total
property investment at December 31, 1994, of $19,889,834 and
$21,613,308 at June 30, 1994. Other than as discussed herein,
there are no known trends, demands, commitments, events or
uncertainties that in management's opinion will result or are
reasonably likely to result in the registrant's liquidity
increasing or decreasing in any material way.
Capital Resources
The Partnership's outstanding debt as of June 30, 1995, was
$10,704,845. This compares to debt outstanding December 31, 1994,
of $10,816,526. The $111,681 decrease during the first six months
was due to principal pay downs of $111,681. The Partnership had
$12,252,953 of outstanding debt at June 30, 1994.
In September 1995, the Partnership has two loans which come due.
The first loan in the amount of $5,816,082 is secured by a first
mortgage on Town Center, Heritage Square and Broadway Medical
Center. The second mortgage on these properties in the amount of
$628,361 will also come due in September 1995. Management intends
to refinance these loans and believes it will be successful for the
following reasons: The loans have a low loan to value ratio, the
properties continue to experience high occupancy and there is
sufficient cash flow to meet the debt service obligation.
Results of Operations
As of June 30, 1995, the occupancy percentages for the Fund's
properties were as follows: Broadway Medical Center, 75%, Marco
Town Center Mall, 86%, Heritage Square Shopping Center, 92%,
Manatee West Shopping Center, 68%, and Pinebrook Commons, 97%.
For the six months ended June 30, 1995, rental income decreased
$141,504 as compared to the same period one year ago. The decrease
in rental income was attributed to Broadway Center decreasing
$5,421, Laurel Medical Center decreasing $81,703, Marco Town Center
Mall increasing $8,663, Manatee West decreasing $100,280, Heritage
Square decreasing $11,741 and Pinebrook Commons increasing $48,978.
PAGE 6<PAGE>
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Results of Operations - Continued
For the six months ended June 30, 1995, interest income increased
by $1,632. Rental revenue increases were attributable to increases
in the CPI, rent escalator clauses and additional tenants occupying
the spaces. Broadway Medical, Heritage Square and Manatee West's
rent decreases were due to vacancies occurring in those centers.
The rental decrease at Laurel Medical Center was due to the
Partnership not owning this property in 1995, whereas the
Partnership owned the property in the first six months of 1994.
Property expenses decreased by $9,808 from a year ago due to the
following factors: maintenance costs and insurance claims
increased primarily at Town Center and Pinebrook Commons. These
increases were partially offset by the costs of Laurel Center which
were not incurred in 1995 and reductions in bad debt expenses at
Heritage Square and Manatee West.
Real estate taxes have decreased to reflect anticipated assessments
for the year and the decrease due to Laurel Center not belonging to
the Partnership portfolio.
Interest expense has decreased $33,793 for the six month period
ended June 30, 1995, as compared to a year ago. This decrease is
due to the partnership's debt decreasing from $10,816,526 at
December 31, 1994, to $10,704,845 as of June 30, 1995. The
partnership also did not make mortgage payments on the Laurel
Medical Center loan in the six months of 1995. The partnership's
debt as of June 30, 1994, was $12,252,953.
Depreciation and amortization have decreased $27,651 due to Laurel
Medical Center not belonging to the Partnership portfolio.
During the first quarter of 1993, Tandy Corporation closed their
9,900 square foot McDuff's Electronics store located in Pinebrook
Commons Shopping Center. This is a result of their corporate
decision to close approximately 100 stores. Management and Tandy
have agreed to settle the outstanding future rental obligation,
with Tandy agreeing to pay 15 months rent in order to terminate
their lease obligations. The amount of the settlement was
$114,468. The lender on the property, Allstate Life Insurance
Company, has agreed to this settlement. These funds have been
placed into escrow to fund future capital improvements, pay leasing
commissions and for future loan payments. As of June 30, 1995, the
amount remaining in escrow is $40,136.
PAGE 7
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Results of Operations - Continued
Management had signed a lease for 4,643 square feet of vacant space
at Pinebrook Commons. The tenant's lease obligation began July 1,
1994. However, during the third quarter of 1994, the tenant did
not complete it's build out and has defaulted on it's lease
obligation. The fund is attempting to recover funds in it's legal
action against the tenant. The space has been re-leased and it is
anticipated that the build-out will be completed in the third
quarter of 1995. It is anticipated that the remaining escrow money
will be released by the lender when the property shows a positive
cash flow after debt.
For the three months ended June 30, 1995, rental income decreased
$45,367 as compared to the same period one year ago. The decrease
in rental income was attributed to Broadway Medical Center
decreasing $4,626, Laurel Medical Center decreasing $20,621, Town
Center Shopping Center increasing $3,841, Manatee West Shopping
Center decreasing $48,285, Heritage Square Shopping Center
decreasing $3,012 and Pinebrook Commons Shopping Center increasing
$27,336.
Total expenses for the three months ended June 30, 1995, have
decreased by $45,123 primarily due to the Partnership owning one
less property in 1995.
PAGE 8<PAGE>
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PART II
OTHER INFORMATION
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
None
(B) REPORTS ON FORM 8-K
None
PAGE 9<PAGE>
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PART III
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.
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
MARINER CAPITAL MANAGEMENT, INC.
MANAGING GENERAL PARTNER
(Registrant)
8/5/95 Lawrence A. Raimondi
President and Director, and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
(SIGNATURE)
8/5/95 Michael J. Scullion
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and
Accounting Officer)
(SIGNATURE)
PAGE 10
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<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000790986
<NAME> FLORIDA INCOME FUND II LTD PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 25,031
<SECURITIES> 0
<RECEIVABLES> 146,685
<ALLOWANCES> 23,535
<INVENTORY> 0
<CURRENT-ASSETS> 474,238
<PP&E> 20,005,200
<DEPRECIATION> 3,782,071
<TOTAL-ASSETS> 16,751,720
<CURRENT-LIABILITIES> 8,565,568
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 16,751,720
<SALES> 0
<TOTAL-REVENUES> 1,485,089
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 878,944
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 507,172
<INCOME-PRETAX> 98,973
<INCOME-TAX> 0
<INCOME-CONTINUING> 98,973
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 98,973
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
