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
March 31, 1996
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 MARCH 31, 1996 AND DECEMBER 31, 1995
<CAPTION>
UNAUDITED AUDITED
MAR 31, DECEMBER 31,
ASSETS 1996 1995
- -------------------------------- ----------- ------------
<S> <C> <C>
INVESTMENT PROPERTIES, less
accumulated depreciation of
$3,417,557 in 1996 and
$3,324,125 in 1995 and an
allowance to reduce carrying
value of $124,297 in 1996 and
$124,297 in 1995 9,966,163 10,059,595
CASH AND CASH EQUIVALENTS 313,155 293,125
RENT AND OTHER RECEIVABLES
(net of allowance of $59,950
in 1996 and $53,000 in
1995 81,238 76,653
OTHER ASSETS 10,290 24,143
DEFERRED CHARGES (less accumulated
amortization of $1,090,650 in 1996
and $1,057,731 in 1995) 97,781 128,199
----------- -----------
TOTAL ASSETS 10,468,627 10,581,715
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
ACCOUNTS PAYABLE AND ACCRUED EXPENSES 240,342 242,573
DEFERRED RENTS 29,281 43,157
TENANT SECURITY DEPOSITS 142,737 139,006
AFFILIATE'S PARTICIPATION IN
JOINT VENTURE 413,603 419,781
----------- -----------
TOTAL LIABILITIES 825,963 844,517
GENERAL PARTNERS' CAPITAL (51,893) (47,167)
LIMITED PARTNERS' CAPITAL 9,694,557 9,784,365
----------- -----------
PARTNERS' CAPITAL 9,642,664 9,737,198
----------- -----------
TOTAL LIABILITIES AND PARTNERS'
CAPITAL 10,468,627 10,581,715
=========== ===========
<FN>
The accompanying notes are an integral part of these
statements.
</FN>
</TABLE>
I-1
<TABLE>
RAL YIELD + EQUITIES IV
LIMITED PARTNERSHIP
Statement of Operations
For the three months ended March 31, 1996 and 1995
Unaudited
<CAPTION>
3 MONTHS 3 MONTHS
ENDED MARCH ENDED MARCH
31, 1996 31, 1995
----------- -----------
<S>
REVENUE: <C> <C>
Rental income 560,083 554,496
Interest income 2,893 1,751
Other Income 19,266 16,610
------- -------
582,242 572,857
OPERATING EXPENSES:
Property operation
and administrative
expenses 251,894 247,650
Management fees 32,065 29,670
Bad Debts 12,795 96
Depreciation and
amortization 123,850 133,605
------- -------
420,604 411,021
------- -------
NET INCOME BEFORE AFFILIATE'S
PARTICIPATION IN INCOME
FROM JOINT VENTURE 161,638 161,836
------- -------
AFFILIATE'S PARTICIPATION
IN INCOME FROM
JOINT VENTURE (7,343) (7,908)
------- -------
NET INCOME 154,295 153,928
======= =======
<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 three months ended March 31, 1996 and
for the year ended December 31, 1995
UNAUDITED
<CAPTION>
General Limited
Partner Partners
(5% ownership) (95% ownership) Total
------------- ------------ ---------
<S> <C> <C> <C>
BALANCE, January 1, 1995 (24,856) 10,208,264 10,183,408
-------- ----------- -----------
NET INCOME 27,455 521,651 549,106
CASH DISTRIBUTIONS (49,766) (945,550) (995,316)
-------- ----------- -----------
BALANCE, December 31, 1995 (47,167) 9,784,365 9,737,198
======== =========== ===========
NET INCOME 7,715 146,580 154,295
CASH DISTRIBUTIONS (12,441) (236,388) (248,829)
-------- ----------- -----------
BALANCE, March 31, 1996 (51,893) 9,694,557 9,642,664
======== =========== ===========
<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 three months ended March 31, 1996 and 1995
UNAUDITED
<CAPTION>
3 MONTHS 3 MONTHS
ENDED MAR 31, ENDED MAR 31,
1996 1995
--------------- ---------------
<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income 154,295 153,928
ADJUSTMENTS TO RECONCILE NET
INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
Depreciation and amortization 123,850 133,605
Affiliate's participation in
income from joint venture 7,343 7,908
Changes in assets and
liabilities:
Accounts receivable (4,585) (7,229)
Other assets 13,853 9,713
Accounts payable and
accrued expenses (2,231) (15,670)
Tenant security deposits 3,731 4,793
Deferred rents (13,876) 0
-------- --------
Net Cash provided by
operating activities: 282,380 287,048
-------- --------
CASH FLOWS FROM (USED FOR)
INVESTING ACTIVITIES:
Additions to property and
equipment 0 0
-------- --------
Net Cash used for
investing activities 0 0
-------- --------
I-4
CASH FLOWS FROM FINANCING
ACTIVITIES:
Cash Distributions
to Partners (248,829) (248,828)
Allocated distributions of
cash flow to joint venture
partner-affiliate (13,521) (12,291)
-------- ----------
Net Cash provided from (used
for) financing activities (262,350) (261,119)
-------- ----------
Increase (Decrease) in
cash balance 20,030 (25,929)
Cash balance beginning
of period 293,125 230,502
-------- ---------
Cash balance end of period 313,155 256,431
========= ===========
<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, 1995. 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 three months
ended March 31 was $282,380 in 1996 and $287,048 in 1995. As of
March 31, 1996 the Partnership had cash of approximately
$313,000 consisting of undistributed cash flow, working capital
reserves, and tenant security deposits. Current liabilities
totaled approximately $412,000.
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 $143,000 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 during 1996 and 1997. 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 March, 1996. Total
limited partner distributions made during 1995 were approximately
$945,550.
The Partnership is experiencing one tenant delinquency problem with
its Hardee's tenants in Mundelein and Joliet, Illinois. Although
the tenant had been paying 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 Partnership has not received any rent from them
since February, 1996. The total now due the Partnership is
$126,204. Approximately half of this amount has been reserved for
as a conservative measure, although the general partners feel the
amount is fully collectible due to a strong personal guarantee
signed by the owner. 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.
Results of Operations:
Gross revenues for the three months ended March 31 were
$582,242 in 1996 compared to $572,857 in 1995. Total expenses
for the three months ended March 31 were $420,604 in 1996 and
$411,021 in 1995.
Net income for the three months ended March 31 was $154,295 in
1996 compared to $153,928 in 1995.
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 three months ended March 31, 1996 and calendar year 1995:
<CAPTION>
3 Months ended
Mar. 31, 1996 1995
-------------- ----
<S> <C> <C>
1. South Hills MHP 98% 99%
2. Lakeshore Terrace MHP 92% 93%
3. Maplewood MHP 97% 99%
4. Alexandria MHP 83% 83%
5. Northrup Court Apartments 98% 99%
6. Parkwood Estates MHP 79% 81%
7. Cedar Crossing Apartments 97% 100%
</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: May 10, 1996 Robert A. Long
----------------------
Robert A. Long
General Partner
Christine Kennedy
----------------------
Christine Kennedy
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 313,155
<SECURITIES> 0
<RECEIVABLES> 81,238
<ALLOWANCES> 59,950
<INVENTORY> 0
<CURRENT-ASSETS> 404,683
<PP&E> 9,966,163
<DEPRECIATION> 3,417,557
<TOTAL-ASSETS> 10,468,627
<CURRENT-LIABILITIES> 412,360
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 9,642,664
<TOTAL-LIABILITY-AND-EQUITY> 10,468,627
<SALES> 0
<TOTAL-REVENUES> 582,242
<CGS> 0
<TOTAL-COSTS> 420,604
<OTHER-EXPENSES> 7,343
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 154,295
<INCOME-TAX> 0
<INCOME-CONTINUING> 154,295
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 154,295
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
