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 quarter ended
September 30, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF
- -------- THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number
0-16890
---------
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP
-------------------------------------------
(Exact name of registrant as specified in its charter)
Wisconsin 39-1558614
- ------------------------------- -----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number
20875 Crossroads Circle
Suite 800
Waukesha, Wisconsin 53186
- -------------------------------- ----------------------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code (414) 798-0900
---------------
Securities registered pursuant to Section 12(b) of the Act:
None
------
Securities registered pursuant to Section 12(g) of the Act:
LIMITED PARTNERSHIP INTERESTS
-----------------------------
(Title of Class)
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
------ ------
RAL YIELD + EQUITIES IV
LIMITED PARTNERSHIP
FORM 10-Q
TABLE OF CONTENTS
PAGES
PART I FINANCIAL INFORMATION
Item 1. Financial Statements I-1
Item 2. Management's Discussion and
Analysis of Financial Condition
and Results of Operations I-7
PART II OTHER INFORMATION (none)
Item 6. Exhibits and Reports on Form 8-K (None)
Signatures
<TABLE>
RAL YIELD + EQUITIES IV
LIMITED PARTNERSHIP
BALANCE SHEETS AT SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
<CAPTION>
UNAUDITED AUDITED
SEPT 30, DECEMBER 31,
ASSETS 1995 1994
- -------------------------------- ----------- ------------
<S> <C> <C>
INVESTMENT PROPERTIES, less
accumulated depreciation of
$3,181,963 in 1995 and
$2,916,170 in 1994 and an
allowance to reduce carrying
value of $124,297 in 1995 and
$124,297 in 1994 10,139,757 10,386,738
CASH AND CASH EQUIVALENTS 261,473 230,502
RENT AND OTHER RECEIVABLES 123,380 81,157
OTHER ASSETS 29,752 19,986
DEFERRED CHARGES (less accumulated
amortization of $1,024,568 in 1995
and $925,077 in 1994) 161,363 260,853
----------- -----------
TOTAL ASSETS 10,715,725 10,979,236
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
ACCOUNTS PAYABLE AND ACCRUED EXPENSES 195,516 232,068
TENANT SECURITY DEPOSITS 138,660 128,727
AFFILIATE'S PARTICIPATION IN
JOINT VENTURE 430,809 435,033
----------- -----------
TOTAL LIABILITIES 764,985 795,828
GENERAL PARTNERS' CAPITAL (36,489) (24,856)
LIMITED PARTNERS' CAPITAL 9,987,229 10,208,264
----------- -----------
PARTNERS' CAPITAL 9,950,740 10,183,408
----------- -----------
TOTAL LIABILITIES AND PARTNERS'
CAPITAL 10,715,725 10,979,236
=========== ===========
<FN>
The accompanying notes are an integral part of these
statements.
</FN>
</TABLE>
<TABLE>
I-1
RAL YIELD + EQUITIES IV
LIMITED PARTNERSHIP
Statement of Operations
For the nine months ended September 30, 1995, and 1994
Unaudited
<CAPTION>
3 MONTHS 9 MONTHS 3 MONTHS 9 MONTHS
ENDED SEPT ENDED SEPT ENDED SEPT ENDED SEPT
30, 1995 30, 1995 30, 1994 30, 1994
----------- ----------- ---------- -----------
<S>
REVENUE: <C> <C> <C> <C>
Rental income 560,303 1,671,895 543,505 1,616,277
Interest income 1,575 4,857 1,349 15,478
Loss on sale of
investment property 0 0 0 (20,535)
Other Income 20,245 55,932 15,966 51,927
------- --------- ------- ---------
582,123 1,732,684 560,820 1,663,147
OPERATING EXPENSES:
Property operation
and administrative
expenses 266,401 752,784 251,341 788,609
Management fees 25,170 75,510 17,460 52,380
Bad Debts 531 628 (73) 783
Depreciation and
amortization 133,884 365,283 142,131 425,296
------- --------- ------- ---------
425,986 1,194,205 410,859 1,267,068
------- --------- ------- ---------
NET INCOME BEFORE AFFILIATE'S
PARTICIPATION IN INCOME
FROM JOINT VENTURE 156,137 538,479 149,961 396,079
------- --------- ------- ---------
AFFILIATE'S PARTICIPATION
IN INCOME FROM
JOINT VENTURE (8,718) (24,660) (7,629) (22,917)
------- --------- ------- ---------
NET INCOME 147,419 513,819 142,332 373,162
======= ========= ======= =========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
I-2
<TABLE> RAL YIELD + EQUITIES IV
LIMITED PARTNERSHIP
Statements of Changes in Partners' Capital
For the nine months ended September 30, 1995 and
for the year ended December 31, 1994
UNAUDITED
<CAPTION>
General Limited
Partner Partners
(5% ownership) (95% ownership) Total
------------- ------------ ---------
<S> <C> <C> <C>
BALANCE, January 1, 1994 5,113 13,206,687 13,211,800
-------- ----------- -----------
NET INCOME 26,464 502,812 529,276
CASH DISTRIBUTIONS (56,433) (3,501,235) (3,557,668)
-------- ----------- -----------
BALANCE, December 31, 1994 (24,856) 10,208,264 10,183,408
======== =========== ===========
NET INCOME 25,691 488,128 513,819
CASH DISTRIBUTIONS (37,324) (709,163) (746,487)
-------- ----------- -----------
BALANCE, Sept 30, 1995 (36,489) 9,987,229 9,950,740
======== =========== ===========
<FN>
The accompanying notes are an integral part of these
statements.
</FN>
</TABLE>
I-3
<TABLE>
RAL YIELD + EQUITIES IV
LIMITED PARTNERSHIP
Statements of Cash Flows
For the nine months ended September 30, 1995 and 1994
UNAUDITED
<CAPTION>
9 MONTHS 9 MONTHS
ENDED SEPT 30, ENDED SEPT 30,
1995 1994
--------------- ---------------
<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income $513,819 $373,162
ADJUSTMENTS TO RECONCILE NET
INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Depreciation and amortization 365,283 425,296
Affiliate's participation in
income from joint venture 24,660 22,917
Loss on sale of investment
property 0 20,535
Changes in assets and
liabilities:
Accounts receivable (42,223) (23,254)
Other assets (9,766) (9,749)
Accounts payable and
accrued expenses (36,552) (1,057)
Tenant security deposits 9,933 10,132
-------- --------
Net Cash provided by
operating activities: $825,154 $817,982
-------- --------
CASH FLOWS FROM (USED FOR)
INVESTING ACTIVITIES:
Net proceeds from sale of
investment property 0 $284,891
Additions to property and
equipment (18,812) (69,592)
-------- --------
Net Cash used for
investing activities (18,812) $215,299
-------- --------
I-4
CASH FLOWS FROM FINANCING
ACTIVITIES:
Cash Distributions
to Partners (746,487) (3,273,720)
Allocated distributions of
cash flow to joint venture
partner-affiliate (28,884) (36,873)
-------- ----------
Net Cash provided from (used
for) financing activities (775,371) (3,310,593)
-------- ----------
Increase (Decrease) in
cash balance 30,971 (2,277,312)
Cash balance beginning
of period 230,502 2,537,373
-------- ---------
Cash balance end of period $261,473 $260,061
========= ===========
<FN>
The accompanying notes are an integral part of these
statements.
</FN>
</TABLE>
I-5
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
Pursuant to Rule 10-01(a)(5) of Regulation S-X (17 CFR Part 210)
RAL Yield + Equities IV Limited Partnership is omitting its
footnote disclosure. The disclosure is being omitted since it
substantially duplicates the disclosure contained in the most
recent annual report to security holders, Form 10-K for the fiscal
year ended December 31, 1994. The Registrant has presumed that
users of the interim financial information have read or have access
to the audited financial statements for the preceding fiscal year.
Copies of the audited financial statements will be furnished upon
request.
In the opinion of management, the unaudited interim financial
statements presented herein reflect all adjustments necessary to a
fair statement of the results for the interim periods presented.
Events which have occurred subsequent to the end of the most recent
fiscal year which would have a material impact on the Partnership
are discussed in the following section.
I-6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP is a Wisconsin Limited
Partnership formed on August 8, 1986, under the Wisconsin Revised
Uniform Limited Partnership Act. The Partnership was formed to
acquire new and existing income-producing properties for cash.
The Partnership purchased a total of fifteen income-producing
properties. The Partnership originally purchased six mobile home
communities (three in Wisconsin and three in Minnesota) and two
garden apartment complexes located in Ohio and Maryland. The
Partnership also originally purchased the following commercial
properties: a restaurant located in Longmont, Colorado;
two retail auto parts and service stores located in Menasha,
Wisconsin and Neenah, Wisconsin; a mobile home park office located
in Beaver Dam, Wisconsin and three Hardee's restaurants, located in
Mundelein, Illinois; Joliet, Illinois; and Eagan, Minnesota.
The Partnership sold one of the mobile home communities and two of
the commercial properties during 1993. An additional commercial
property was sold in 1994.
Liquidity and Capital Resources:
Properties acquired by the Partnership are intended to be held for
approximately seven to ten years. During the Properties' holding
periods, the investment strategy is to maintain (on the "triple net
lease" restaurant properties) and improve (on the residential
properties) occupancy rates through the application of professional
property management (including selective capital improvements).
Cash flow generated from property operations is distributed to the
partners on a quarterly basis. The Partnership also accumulates
working capital reserves for normal repairs, replacements, working
capital, and contingencies.
Net cash provided by operating activities for the nine months
ended September 30 was $825,154 in 1995 and $817,982 in 1994. As of
September 30, 1995 the Partnership had cash of approximately
$261,000 consisting of undistributed cash flow, working capital
reserves, and tenant security deposits. Current liabilities
totaled approximately $334,000.
The Partnership has not experienced, and is not currently
experiencing any liquidity problems. It is not expected that the
Partnership will experience liquidity problems, in light of the
excess of current liabilities over cash on hand, due to the nature
of the current liabilities. Approximately $138,000 of the current
liabilities represent tenant security deposits. The majority of
I-7
the remaining current liabilities are accrued and escrowed real
estate taxes payable in installments, in 1995 and 1996. The
Partnership expects to meet all of its obligations as they come
due.
A distribution of cash flow from operations totaling approximately
$236,000 was made to the Limited Partners in August, 1995. Total
limited partner distributions made during 1994 were approximately
$3,501,000. Of the total 1994 distributions, $2,429,000
represented return of capital distributions.
The Partnership is experiencing one tenant delinquency problem with
its Hardee's tenants in Mundelein and Joliet, Illinois. Although
the tenant does pay rent each month, they do not pay the rent
increase that went into effect in 1992. This results in a
shortfall of rent paid each month of approximately $2,300 for the
two stores. The total now due the Partnership is $99,500. The
general partners are negotiating with the tenant in order to
resolve this past due amount and to get them to pay the correct
amount of rent each month. The general partners feel the amount is
fully collectible due to a strong personal guarantee signed by the
owner.
Results of Operations:
Gross revenues for the nine months ended September 30 were
$1,732,684 in 1995 compared to $1,663,147 in 1994. Total expenses
for the nine months ended September 30 were $1,194,205 in 1995 and
$1,267,068 in 1994.
Net income for the nine months ended September 30 was $513,819 in
1995 compared to $373,162 in 1994.
Net income increased as a result of increased rents in the
residential properties and the impact of the formerly vacant
commercial property located in Neenah, Wisconsin becoming leased
during mid-1994 to a national auto service center.
The leases of the commercial properties are currently paying rent
based on the minimum lease payments. Certain tenant leases provide
for rental payments based on a percentage of purchase price of the
properties or a percentage of sales whichever is greater. None of
the Partnership's tenants are currently generating a sales volume
which would trigger percentage rent.
I-8
<TABLE>
The following is a listing of approximate average physical
occupancy rates for the Partnership's residential properties during
the nine months ended September 30, 1995 and calendar year 1994:
<CAPTION>
9 Months ended
Sept 30, 1995 1994
-------------- ----
<S> <C> <C>
1. South Hills MHP 99% 99%
2. Lakeshore Terrace MHP 93% 93%
3. Maplewood MHP 99% 99%
4. Alexandria MHP 83% 83%
5. Northrup Court Apartments 99% 97%
6. Parkwood Estates MHP 82% 85%
7. Cedar Crossing Apartments 100% 99%
</TABLE>
Inflation:
Due to the relatively low level of inflation since the Partnership
commenced operations, the effect of inflation on the Partnership
has not been material to date. Should the rate of inflation
increase substantially over the life of the Partnership, it is
likely to influence ongoing operations, in particular, the
operating expenses of the Partnership. All commercial leases
contain clauses permitting pass-through of certain increased
operating costs. Residential leases are typically of one year or
less in duration; this allows the Partnership to react quickly
(through rental increases) to changes in the level of inflation.
These factors should serve to reduce, to a certain degree, any
impact of rising costs on the Partnership.
I-9
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.
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP
(Registrant)
Date: November 14, 1995 Robert A. Long
----------------------
Robert A. Long
General Partner
Christine Kennedy
----------------------
Christine Kennedy
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 261,473
<SECURITIES> 0
<RECEIVABLES> 123,380
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 414,605
<PP&E> 10,139,757
<DEPRECIATION> 3,181,963
<TOTAL-ASSETS> 10,715,725
<CURRENT-LIABILITIES> 334,176
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 9,950,740
<TOTAL-LIABILITY-AND-EQUITY> 10,715,725
<SALES> 0
<TOTAL-REVENUES> 1,732,684
<CGS> 0
<TOTAL-COSTS> 1,194,205
<OTHER-EXPENSES> 24,660
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 513,819
<INCOME-TAX> 0
<INCOME-CONTINUING> 513,819
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 513,819
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
