UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
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or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 33-11907
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DIVERSIFIED HISTORIC INVESTORS IV
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(Exact name of registrant as specified in its charter)
Pennsylvania 23-2440837
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1609 Walnut Street, Philadelphia, PA 19103
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (215) 557-9800
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N/A
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(Former name, former address and former fiscal year, if changed
since last report)
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
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<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Balance Sheets - March 31, 2000 (unaudited)
and December 31, 1999
Consolidated Statements of Operations - Three Months
Ended March 31, 2000 and 1999 (unaudited)
Consolidated Statements of Cash Flows - Three Months
Ended March 31, 2000 and 1999 (unaudited)
Notes to Consolidated Financial Statements (unaudited)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
(1) Liquidity
As of March 31, 2000, Registrant had cash of
$318,756. The Registrant expects that those funds plus the cash
generated from operations at each property will be sufficient to
fund the operating expenses of the properties. The Registrant is
not aware of any additional sources of liquidity.
As of March 31, 2000, Registrant had restricted cash
of $19,366 consisting primarily of funds held as security
deposits and escrows for taxes and insurance. As a consequence
of the restrictions as to use, Registrant does not deem these
funds to be a source of liquidity.
(2) Capital Resources
Any capital expenditures needed are generally
replacement items and are funded out of cash from operations.
The Registrant is not aware of any factors which would cause
historical capital expenditure levels not to be indicative of
capital requirements in the future and accordingly, does not
believe that it will have to commit material resources to capital
investment for the foreseeable future.
(3) Results of Operations
During the first quarter of 2000, Registrant
incurred a loss of $33,854 ($4.04 per limited partnership unit)
compared to a loss of $26,372 ($3.15 per limited partnership
unit) for the same period in 1999.
Rental income increased $318 from $48,398 in the
first quarter of 1999 to $48,716 in the same period in 2000. The
increase in rental income is the result of an increase in average
rental rates at the Brass Works, partially offset by a decrease
in average occupancy at Locke Mill Plaza (99% to 86%).
Interest income decreased $1,514 from $3,612 in the
first quarter of 1999 to $2,098 in the same period in 2000. The
decrease is the result of a decrease in the amount of invested
cash.
Expenses for rental operations increased by $6,098
from $37,664 in the first quarter of 1999 to $43,762 in the same
period in 2000. The increase is the result of an increase in
maintenance expense at the Brass Works due to repairs made at the
property, partially offset by a decrease at Locke Mill Plaza as a
result of the decrease in average occupancy.
Losses incurred during the first quarter of 2000 at
the Registrant's two properties amounted to approximately $2,000,
compared to losses of approximately $4,000 for the same period in
1999.
In the first quarter of 2000, Registrant incurred a
loss of $3,000 at the Brass Works, including $12,000 of
depreciation expense, compared to a loss of $5,000 including
$12,000 of depreciation expense in the first quarter of 1999.
The decrease in the loss from the first quarter of 1999 to the
first quarter of 2000 is due to an increase in rental income due
to an increase in the average rental rates, partially offset by
an increase in maintenance expense due to repairs made at the
property.
In the first quarter of 2000, Registrant recognized
income of $600 at Locke Mill Plaza, including $7,000 of
depreciation expense, compared to income of $1,000 including
$7,000 of depreciation expense in the first quarter of 1999. The
decrease in income from the first quarter of 1999 to the first
quarter of 2000 is due to the decrease in rental income,
partially offset by a decrease in maintenance expense. Rental
income and maintenance expense both decreased due to a decrease
in average occupancy (99% to 86%).
<PAGE>
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
CONSOLIDATED BALANCE SHEETS
<TABLE>
Assets
<CAPTION>
March 31, 2000 December 31, 1999
(Unaudited)
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<S> <C> <C>
Rental properties, at cost:
Land $ 74,324 $ 74,324
Buildings and improvements 2,246,555 2,246,555
Furniture and fixtures 29,814 29,814
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2,350,693 2,350,693
Less-accumulated depreciation (1,066,452) (1,043,546)
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1,284,241 1,307,147
Cash and cash equivalents 318,756 325,890
Restricted cash 19,366 25,169
Other assets 14,163 17,012
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Total $1,636,526 $1,675,218
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Liabilities and Partners' Equity
Liabilities:
Accounts payable-trade $ 39,082 $ 43,456
Other liabilities 1,434 1,538
Tenant security deposits 11,075 11,435
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Total liabilities 51,591 56,429
Partners' equity 1,584,935 1,618,789
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Total $1,636,526 $1,675,218
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</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months ended
March 31,
2000 1999
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<S> <C> <C>
Revenues:
Rental income $48,716 $48,398
Interest income 2,098 3,612
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Total revenues 50,814 52,010
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Costs and expenses:
Rental operations 43,762 37,664
General and administrative 18,000 18,000
Depreciation and amortization 22,906 22,718
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Total costs and expenses 84,668 78,382
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Net loss ($33,854) ($26,372)
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Net loss per limited partnership
unit ($ 4.04) ($ 3.15)
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</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three months ended
March 31,
2000 1999
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<S> <C> <C>
Cash flows from operating activities:
Net loss ($ 33,854) ($ 26,372)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 22,906 22,718
Changes in assets and liabilities:
Decrease in restricted cash 5,803 3,132
Decrease (increase) in other assets 2,849 (2,587)
Decrease in accounts payable - trade (4,374) (1,087)
Decrease in other liabilities (104) (767)
(Decrease) increase in tenant
security deposits (360) 2,415
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Net cash used in operating activities (7,134) (2,548)
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Decrease in cash and cash equivalents (7,134) (2,548)
Cash and cash equivalents at
beginning of period 325,890 603,499
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Cash and cash equivalents at end of period $318,756 $600,951
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</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
DIVERSIFIED HISTORIC INVESTORS IV
(a Pennsylvania limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The unaudited consolidated financial statements of Diversified
Historic Investors IV (the "Registrant") and related notes have
been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to such
rules and regulations. The accompanying consolidated financial
statements and related notes should be read in conjunction with
the audited financial statements in Form 10-K of the Registrant,
and notes thereto, for the year ended December 31, 1999.
The information furnished reflects, in the opinion of management,
all adjustments, consisting of normal recurring accruals,
necessary for a fair presentation of the results of the interim
periods presented.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
To the best of its knowledge, Registrant is not a party
to, nor is any of its property the subject of, any pending
material legal proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted during the quarter covered by
this report to a vote of security holders.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Number Document
3 Registrant's Amended and
Restated Certificate of Limited
Partnership and Agreement of
Limited Partnership, previously
filed as part of Amendment No.
2 of Registrant's Registration
Statement on Form S-11, are
incorporated herein by
reference.
21 Subsidiaries of the Registrant
are listed in Item 2.
Properties on Form 10-K,
previously filed and
incorporated herein by
reference.
(b) Reports on Form 8-K:
No reports were filed on Form 8-K during the quarter
ended March 31, 2000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Date: October 24, 2000 DIVERSIFIED HISTORIC INVESTORS IV
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By: Dover Historic Advisors III,
General Partner
By: EPK, Inc., General Partner
By: /s/ Spencer Wertheimer
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SPENCER WERTHEIMER
President and Treasurer
