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 Quarterly Period Ended March 31, 1999
or
[ ] Transition Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission File #0-16790
Inland's Monthly Income Fund, L.P.
(Exact name of registrant as specified in its charter)
Delaware #36-3525989
(State or other jurisdiction (I.R.S. Employer Identification Number)
of incorporation or organization)
2901 Butterfield Road, Oak Brook, Illinois 60523
(Address of principal executive office) (Zip code)
Registrant's telephone number, including area code: 630-218-8000
N/A
(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
-1-
INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Balance Sheets
March 31, 1999 and December 31, 1998
(unaudited)
Assets
------
1999 1998
Current assets: ---- ----
Cash and cash equivalents (Note 1).............. $ 1,262,168 681,003
Accounts and rents receivable................... 41,656 35,664
Mortgage interest receivable.................... 54,015 56,681
Current portion of mortgage loans receivable.... 75,968 79,187
Current portion of deferred rent receivable..... 4,819 4,818
Other assets.................................... 3,165 2,670
------------ ------------
Total current assets.............................. 1,441,791 860,023
------------ ------------
Investment properties (including acquisition
fees paid to Affiliates of $1,738,621)
(Notes 1 and 3):
Land............................................ 2,672,620 2,672,620
Buildings and improvements...................... 15,592,680 15,592,680
Tenant improvements............................. 775,947 775,947
------------ ------------
19,041,247 19,041,247
Less accumulated depreciation................... 5,648,835 5,522,909
------------ ------------
Net investment properties......................... 13,392,412 13,518,338
------------ ------------
Other assets:
Mortgage loans receivable, less current portion. 6,704,001 7,184,451
Deferred loan fees (net of accumulated
amortization of $33,176 and $32,019 at
March 31, 1999 and December 31, 1998,
respectively) (Note 1)........................ 13,112 14,269
Deferred leasing fees (including $219,451
paid to Affiliates) (net of accumulated
amortization of $216,544 and $211,287 at
March 31, 1999 and December 31, 1998,
respectively) (Note 1)........................ 127,843 133,100
Deferred rent receivable, less current portion
(Notes 1 and 2)............................... 384,375 396,387
------------ ------------
Total other assets................................ 7,229,331 7,728,207
------------ ------------
Total assets...................................... $22,063,534 22,106,568
============ ============
See accompanying notes to financial statements.
-2-
INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Balance Sheets
(continued)
March 31, 1999 and December 31, 1998
(unaudited)
Liabilities and Partners' Capital
---------------------------------
1999 1998
Current liabilities: ---- ----
Accounts payable and accrued expenses........... $ 43,520 13,556
Accrued real estate taxes....................... 78,432 62,125
Distributions payable (Note 4).................. 192,030 192,030
Due to Affiliates (Note 3)...................... 1,531 472
Deposits held for others........................ 150,374 102,479
Prepaid rent.................................... 41,620 -
Current portion of long-term debt............... 45,808 44,709
Current portion of deferred gain on sale of
investment property........................... 18,283 19,514
------------ ------------
Total current liabilities......................... 571,598 434,885
Deferred loan fees................................ 40,404 45,123
Long-term debt, less current portion.............. 1,432,626 1,444,498
Deferred gain on sale of investment property,
less current portion............................ 1,976,158 2,120,485
------------ ------------
Total liabilities................................. 4,020,786 4,044,991
Partners' capital (Notes 1, 3 and 4): ------------ ------------
General Partner:
Capital contribution.......................... 500 500
Supplemental Capital Contributions............ 2,095,863 2,095,863
Supplemental capital distributions to
Limited Partners............................ (2,095,863) (2,095,863)
Cumulative net loss........................... (36,743) (36,743)
------------ ------------
(36,243) (36,243)
Limited Partners: ------------ ------------
Units of $500. Authorized 60,000 Units,
59,285.65 Units outstanding (net of offering
costs of $3,289,242, of which $388,902 was
paid to Affiliates)......................... 26,353,582 26,353,582
Supplemental Capital Contributions from
General Partner............................. 2,095,863 2,095,863
Cumulative net income......................... 17,155,873 16,617,196
Cumulative distributions...................... (27,526,327) (26,968,821)
------------ ------------
18,078,991 18,097,820
------------ ------------
Total Partners' capital........................... 18,042,748 18,061,577
------------ ------------
Total liabilities and Partners' capital........... $22,063,534 22,106,568
============ ============
See accompanying notes to financial statements.
-3-
INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Statements of Operations
For the three months ended March 31, 1999 and 1998
(unaudited)
1999 1998
Income: ---- ----
Rental income (Notes 1 and 2)................... $ 511,917 524,402
Additional rental income........................ 15,310 16,157
Interest income................................. 166,650 182,717
Other income.................................... 2,341 -
------------ ------------
696,218 723,276
------------ ------------
Expenses:
Professional services to Affiliates............. 2,184 3,200
Professional services to non-affiliates......... 32,941 29,350
General and administrative expenses to
Affiliates.................................... 7,557 8,710
General and administrative expenses to
non-affiliates................................ 15,127 15,519
Property operating expenses to Affiliates....... 9,609 8,886
Property operating expenses to non-affiliates... 67,216 62,160
Interest expense to non-affiliates.............. 36,125 37,130
Depreciation.................................... 125,926 125,926
Amortization.................................... 6,414 6,414
------------ ------------
303,099 297,295
------------ ------------
Operating income.................................. 393,119 425,981
Gain on sale of investment property............... 145,558 5,183
------------ ------------
Net income........................................ $ 538,677 431,164
============ ============
Net income allocated to:
General Partner................................. - -
Limited Partners................................ 538,677 431,164
------------ ------------
Net income........................................ $ 538,677 431,164
============ ============
Net income per Unit allocated to Limited Partners
per weighted average Limited Partnership Units
of 59,285.65.................................... $ 9.09 7.27
============ ============
See accompanying notes to financial statements.
-4-
INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Statements of Cash Flows
For the three months ended March 31, 1999 and 1998
(unaudited)
1999 1998
---- ----
Cash flows from operating activities:
Net income...................................... $ 538,677 431,164
Adjustments to reconcile net income to net cash
provided by operating activities:
Gain on sale of investment property........... (145,558) (5,183)
Depreciation.................................. 125,926 125,926
Amortization.................................. 6,414 6,414
Changes in assets and liabilities:
Accounts and rents receivable............... (5,992) (18,505)
Mortgage interest receivable................ 2,667 447
Other current assets........................ (496) (7,199)
Deferred rent receivable.................... 12,011 6,715
Accounts payable and accrued expenses....... 29,964 9,382
Accrued real estate taxes................... 16,307 15,804
Due to Affiliates........................... 1,059 8,485
Unearned income............................. 36,901 42,784
------------ ------------
Net cash provided by operating activities......... 617,880 616,234
------------ ------------
Cash flows from investing activities:
Principal payments received on mortgage
loans receivable.............................. 483,669 18,784
------------ ------------
Net cash provided by investing activities......... 483,669 18,784
------------ ------------
Cash flows from financing activities:
Cash distributions.............................. (557,505) (577,232)
Deposits held for others........................ 47,894 28,781
Principal payments of long-term debt............ (10,773) (9,777)
------------ ------------
Net cash used in financing activities............. (520,384) (558,228)
------------ ------------
Net increase in cash and cash equivalents......... 581,165 76,790
Cash and cash equivalents at beginning of period.. 681,003 1,090,891
------------ ------------
Cash and cash equivalents at end of period........ $ 1,262,168 1,167,681
============ ============
Cash paid for interest............................ $ 36,212 37,209
============ ============
See accompanying notes to financial statements.
-5-
INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 1999
(unaudited)
Readers of this Quarterly Report should refer to the Partnership's audited
financial statements for the fiscal year ended December 31, 1998, which are
included in the Partnership's 1998 Annual Report, as certain footnote
disclosures which would substantially duplicate those contained in such audited
financial statements have been omitted from this Report.
(1) Organization and Basis of Accounting
Inland's Monthly Income Fund, L.P. (the "Partnership"), was formed on March 26,
1987 pursuant to the Delaware Revised Uniform Limited Partnership Act, to
invest in improved residential, retail, industrial and other income producing
properties. On August 3, 1987, the Partnership commenced an Offering of 50,000
(subject to an increase up to 60,000) Limited Partnership Units ("Units")
pursuant to a Registration Statement under the Securities Act of 1933. The
Offering terminated on August 3, 1988, with total sales of 59,999 Units at $500
per Unit, resulting in gross offering proceeds of $29,999,500, not including
the General Partner's contribution of $500. All of the holders of these Units
were admitted to the Partnership. Inland Real Estate Investment Corporation is
the General Partner. The Limited Partners of the Partnership share in the
benefits of ownership of the Partnership's real property investments in
proportion to the number of Units held. The Partnership has repurchased a total
of 713 Units for $356,676 from various Limited Partners through the Unit
Repurchase Program. There are no funds remaining for the repurchase of Units
through this program.
The preparation of financial statements in conformity with generally accepted
accounting principals requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.
Statement of Financial Accounting Standards No. 121 ("SFAS 121") requires the
Partnership to record an impairment loss on its property to be held for
investment whenever its carrying value cannot be fully recovered through
estimated undiscounted future cash flows from their operations and sale. The
amount of the impairment loss to be recognized would be the difference between
the property's carrying value and the property's estimated fair value. The
adoption of SFAS 121 did not have any effect on the Partnership's financial
position, results of operations or liquidity. The Partnership has not
recognized any such impairment.
A presentation of information about operating segments as required in Statement
of Financial Accounting Standards No. 131 "Disclosures About Segments of an
Enterprise and Related Information" would not be material to an understanding
of the Partnership's business taken as a whole as the Partnership is engaged in
the business of real estate investment which management considers to be a
single operating segment.
-6-
INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
March 31, 1999
(unaudited)
Offering costs have been offset against the Limited Partners' capital accounts.
Depreciation expense is computed using the straight-line method. Depreciation
of buildings and improvements are based upon estimated useful lives of 30 to 40
years, while depreciation of furniture and fixtures are based upon estimated
useful lives of 5 to 12 years. Repair and maintenance expenses are charged to
operations as incurred. Significant improvements are capitalized and
depreciated over their estimated useful lives. Tenant improvements are
depreciated over the related lease term.
The Partnership considers all highly liquid investments purchased with a
maturity of three months or less to be cash equivalents. Such investments are
carried at cost which approximates market. Cash and cash equivalents are
approximately $1,262,000 and $681,000 at March 31, 1999 and December 31, 1998,
respectively, of which approximately $140,000 and $92,300, respectively, is
included in cash and cash equivalents for the payment of real estate taxes for
Douglas and Hillside Living Centers.
Statement of Financial Accounting Standards No. 128 "Earnings per Share" was
adopted by the Partnership and has been applied to all prior earnings periods
presented in the financial statements. The Partnership has no dilutive
securities.
Deferred leasing fees are amortized on a straight-line basis over the term of
the related lease.
Loan fees relating to the mortgage loans receivable are deferred and amortized
as yield adjustments on a straight-line basis over the life of the related
mortgage loan receivable which approximates the effective interest rate method.
Rental income is recognized on a straight-line basis over the term of each
lease. The difference between rental income earned on the straight-line basis
and the cash rent due under the provisions of the lease agreements is recorded
as deferred rent receivable.
No provision for Federal income taxes has been made as the liability for such
taxes is that of the Partners rather than the Partnership.
In the opinion of management, the financial statements contain all the
adjustments necessary, which are of a normal recurring nature, to present
fairly the financial position and results of operations for the periods
presented herein. Results of interim periods are not necessarily indicative of
results to be expected for the year.
-7-
INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
March 31, 1999
(unaudited)
(2) Deferred Rent Receivable
Certain tenant leases contain provisions providing for stepped rent increases.
Generally accepted accounting principles require that rental income be recorded
for the period of occupancy on a straight-line basis. The accompanying
financial statements include decreases of $12,011 and $6,715 for 1999 and 1998,
respectively, of rental income for the period of occupancy for which stepped
rent increases apply and $389,194 and $401,205 in related deferred rent
receivable as of March 31, 1999 and December 31, 1998, respectively. These
amounts will be collected over the terms of the related leases as scheduled
rent payments are made.
(3) Transactions with Affiliates
The General Partner and its Affiliates are entitled to reimbursement for
salaries and expenses of employees of the General Partner and its Affiliates
relating to the administration of the Partnership. Such costs are included in
professional services and general and administrative expenses to Affiliates, of
which $1,531 and $472 was unpaid at March 31, 1999 and December 31, 1998,
respectively.
An Affiliate of the General Partner is entitled to receive Property Management
Fees for management and leasing services. The Partnership has incurred
property management fees of $9,609 and $8,886 for the three months ended March
31, 1999 and 1998.
(4) Subsequent Events
During April 1999, the Partnership paid a distribution of $192,030 to the
Limited Partners.
On April 13, 1999, the Partnership received prepayment on one of the remaining
thirty mortgage loans receivable in the six-unit condominium buildings
comprising the Schaumburg Terrace condominium complex. The Partnership intends
to use the repayment proceeds from this prepayment totaling $227,009 for
distributions and working capital requirements.
On April 30, 1999, the Partnership refinanced the existing $1,700,000 loan
collateralized by the Rantoul Wal-Mart. The replacement loan is for $2,500,000
and is collateralized by the Rantoul Wal-Mart and the Duncan Wal-Mart. The
replacement loan bears an interest rate of 6.97% as compared to the existing
9.75% interest rate on the original loan. The replacement loan requires
monthly interest only payments of $15,489 and will mature on April 30, 2004.
-8-
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Certain statements in this "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and elsewhere in this quarterly report on
Form 10-Q constitute "forward-looking statements" within the meaning of the
Federal Private Securities Litigation Reform Act of 1995. These forward-
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the Partnership's actual results, performance, or
achievements to be materially different from any future results, performance,
or achievements expressed or implied by these forward-looking statements.
These factors include, among other things, competition for tenants; federal,
state, or local regulations; adverse changes in general economic or local
conditions; inability of borrower to meet financial obligations; uninsured
losses; and potential conflicts of interest between the Partnership and its
Affiliates, including the General Partner.
Liquidity and Capital Resources
On August 3, 1987, the Partnership commenced an Offering of 50,000 (increased
to 60,000) Limited Partnership Units pursuant to a Registration Statement on
Form S-11 under the Securities Act of 1933. The Offering terminated on August
3, 1988, with total sales of 59,999 Units at $500 per Unit, resulting in gross
offering proceeds of $29,999,500, not including the General Partner's
contribution of $500. All of the holders of these Units have been admitted to
the Partnership. The Partnership acquired seven properties utilizing
$25,831,542 of capital proceeds collected. During 1994 and 1995, the
Partnership sold the thirty-eight six-unit condominium buildings comprising the
Schaumburg Terrace condominium complex. Also, the Partnership sold one of the
three lots adjacent to the Hillside Living Center during September 1997. As of
March 31, 1999, cumulative distributions to Limited Partners totaled
$27,526,327, including $2,095,863 of Supplemental Capital Contributions from
the General Partner, which represents distributable cash flow from the
properties. The Partnership repurchased 713 Units for $356,676 from various
Limited Partners through the Unit Repurchase Program. There are no funds
remaining for the repurchase of Units through this program.
As of March 31, 1999, the Partnership had cash and cash equivalents of
$1,262,168, which includes approximately $140,000 for the payment of real
estate taxes for Douglas and Hillside Living Centers. For the quarter ended
March 31, 1999, the Partnership received prepayments on two of the thirty-two
mortgage loans receivable on the six-unit condominium buildings comprising the
Schaumburg Terrace condominium complex. Repayment proceeds from these
prepayments totaling $471,352 is also included in cash and cash equivalents at
March 31, 1999. The Partnership intends to use such funds for distributions
and working capital requirements.
The properties owned by the Partnership, along with the interest received on
the Schaumburg Terrace mortgage receivables, are generating sufficient cash
flow to meet the 8% annualized distributions to the Limited Partners (paid
monthly), in addition to covering all the operating expenses of the
Partnership. To the extent that the cash flow is insufficient to meet the
Partnership's needs, the Partnership may rely on Supplemental Capital
Contributions from the General Partner, advances from Affiliates of the General
Partner, other short-term financing, or may sell one or more of the properties.
-9-
On April 30, 1999, the Partnership refinanced the existing $1,700,000 loan
collateralized by the Rantoul Wal-Mart. The replacement loan is for $2,500,000
and is collateralized by the Rantoul Wal-Mart and the Duncan Wal-Mart. The
replacement loan bears an interest rate of 6.97% as compared to the existing
9.75% interest rate on the original loan. The replacement loan will require
monthly interest only payments and will mature on April 30, 2004. The
Partnership intends to use such funds for distributins and working capital
requirements.
Results of Operations
As of March 31, 1999, the Partnership owns six operating properties. Five of
these properties were leased on a "triple-net" basis which means that all
expenses of the property are passed through to the tenant. The Partnership
also owns a shopping center, McHenry Plaza. The leases of the shopping center
provide that the Partnership be responsible for maintenance of the structure
and the parking lot and the tenants are required to reimburse the Partnership
for portions of insurance, real estate taxes and common area maintenance.
For the quarter ended March 31, 1999, the Partnership received prepayments on
two of the thirty-two remaining mortgage loans receivable on the six-unit
condominium buildings comprising the Schaumburg Terrace condominium complex
which the Partnership had sold during 1994 and 1995.
Rental and additional income decreased for the three months ended March 31,
1999, as compared to the three months ended March 31, 1998, due to a decrease
in occupancy at McHenry Plaza. As of March 31, 1999, approximately 11,949
square feet, representing 21% of the total space at the center, remains to be
leased. The General Partner continues to pursue additional leases for this
remaining space.
Interest income decreased for the three months ended March 31, 1999, as
compared to the three months ended March 31, 1998, due to decreases in interest
income on the mortgage loans receivable as a result of prepayments and due to a
decrease in interest rates on investments.
Professional services to non-affiliates increased for the three months ended
March 31, 1999, as compared to the three months ended March 31, 1998, due to an
increase in legal services. This increase was partially offset by a decrease
in accounting services.
Property operating expenses to non-affiliates increased for the three months
ended March 31, 1999, as compared to the three months ended March 31, 1998, due
to an increase in repair and maintenance expenses at McHenry Plaza Shopping
Center.
The gain on the sale of investment property recorded for the three months ended
March 31, 1999 is the result of deferred gain from the Schaumburg Terrace
condominium sales being recognized as cash is received on the related financing
extended by the Partnership to the individual purchasers. The increase in the
gain on the sale of investment property for the three months ended March 31,
1999, as compared to the three months ended March 31, 1998, is due to the
recognition of $140,987 of deferred gain from the prepayment of two of the
thirty-two mortgage loans receivable.
-10-
The following is a list of approximate occupancy levels for the Partnership's
investment properties as of the end of each quarter during 1998 and 1999:
1998 1999
------------------------ ------------------------
at at at at at at at at
Properties 03/31 06/30 09/30 12/31 03/31 06/30 09/30 12/31
---------- ----- ----- ----- ----- ----- ----- ----- -----
McHenry Plaza 81% 81% 81% 79% 79%
McHenry, Illinois
Douglas Living &
Retirement Center 100% 100% 100% 100% 100%
Mattoon, Illinois
Hillside Living Center 100% 100% 100% 100% 100%
Yorkville, Illinois
Scandinavian Health Spa 100% 100% 100% 100% 100%
Westlake, Ohio
Rantoul Wal-Mart 100% 100% 100% 100% 100%
Rantoul, Illinois
Duncan Wal-Mart 100% 100% 100% 100% 100%
Duncan, Oklahoma
Year 2000 Issues
GENERAL
- -------
Many computer operating systems and software applications were designed such
that the year 1999 is the maximum date that can be processed accurately. In
conducting business, the Partnership relies on computers and operating systems
provided by equipment manufacturers, and also on application software developed
internally and, to a limited extent, by outside software vendors. The
Partnership has assessed its vulnerability to the so-called "Year-2000 Issue"
with respect to its equipment and computer systems.
STATE OF READINESS
- ------------------
The Partnership has identified the following three areas for "Year-2000"
compliance efforts:
Business Computer Systems: The majority of the Partnership's information
technology systems were developed internally and include accounting, lease
management, investment portfolio tracking, and tax return preparation. The
Partnership has rights to the source code for these applications and employs
programmers who are knowledgeable regarding these systems. The process of
testing these internal systems to determine year 2000 compliance is nearly
complete. The Partnership does not anticipate any material costs relating to
its business computer systems regarding year 2000 compliance since the
Partnership's critical hardware and software systems use four digits to
represent the applicable year. The Partnership does use various computers, so-
called "PC's", that may run software that may not use four digits to represent
the applicable year. The Partnership is in the process of testing the PC
hardware and software to determine year 2000 compliance, but it must be noted
that such PC's are incidental to the Partnership's critical systems. The
Partnership is considering independent testing of its critical systems.
-11-
Tenants and Suppliers: The Partnership is in the process of surveying tenants,
suppliers and other parties with whom the Partnership does a significant amount
of business to identify the Partnership's potential exposure in the event such
parties are not year 2000 compliant in a timely manner. At this time, the
Partnership is not aware of any party that is anticipating a material Year 2000
compliance issue. However, since this area involves some parties over which
the Partnership has no control, such as public utility companies, it is
difficult, at best, to judge the status of the outside companies' year 2000
compliance. The Partnership is working closely with all suppliers of goods and
services in an effort to minimize the impact of the failure of any supplier to
become year 2000 compliant by December 31, 1999. The Partnership's
investigations and assessments of possible year 2000 issues are in a
preliminary stage, and currently the Partnership is not aware of any material
impact on its business, operations or financial condition even if one or more
parties is not Year 2000 compliant in a timely manner, due to the number and
nature of the Partnership's diverse tenant base.
Non-Information Technology Systems: In the operation of its properties, the
Partnership has acquired equipment with embedded technology such as
microcontrollers, which operate heating, ventilation, and air conditioning
systems, fire alarms, security systems, telephones and other equipment
utilizing time-sensitive technology. The Partnership is in the process of
evaluating its potential exposure and costs if such non-information technology
systems are not year 2000 compliant and expects to be able to complete its
assessment during the second quarter of 1999.
YEAR 2000 RISKS
- ---------------
The most reasonable likely worst case scenario for the Partnership with respect
to the year 2000 non-compliance of its business computer systems would be the
inability to access information which could result in the failure to issue
financial reports. The most reasonable likely worst case scenario for the
Partnership with respect to the year 2000 non-compliance of its tenants is
failure to receive rental income which could result in the Partnership being
unable to meet cash requirements for monthly expenses. The most reasonable
likely worst case scenario for the Partnership with respect to the year 2000
non-compliance of its suppliers is the failure to supply necessary utilities;
including, but not limited to heating, as a result of a malfunctioning of non-
information technology systems in some of the Partnership's properties.
YEAR 2000 COSTS
- ---------------
The Partnership's General Partner and its Affiliates estimate that costs to
achieve year 2000 compliance will not exceed $100,000. However, only
approximately 1% of these costs will be directly allocated to and paid by the
Partnership. The balance of the year 2000 compliance costs, approximately 99%,
will be paid by the General Partner and its Affiliates. Total year 2000
compliance costs incurred through December 31, 1998 were approximately $5,000.
-12-
CONTINGENCY PLAN
- ----------------
The Partnership expects to be Year 2000 compliant in advance of the year 2000.
The Partnership will continue to monitor its progress and state of readiness,
and is in the process of formulating a contingency plan which the Partnership
will be prepared to adopt with respect to areas in which evidence arises that
it may not become Year 2000 compliant in sufficient time. With respect to its
tenants, suppliers and other parties with whom the Partnership conducts
business, the Partnership does not yet have sufficient information to identify
the types of problems it may encounter in the event these third parties are not
Year 2000 compliant. As information is obtained that may indicate such parties
may not become Year 2000 compliant in sufficient time, the Partnership is
prepared to develop contingency plans, accordingly.
PART II - Other Information
Items 1 through 5(b) are omitted because of the absence of conditions under
which they are required.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
(27) Financial Data Schedule
(b) Reports on Form 8-K:
None
-13-
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.
INLAND'S MONTHLY INCOME FUND, L.P.
By: Inland Real Estate Investment Corporation
General Partner
/S/ ROBERT D. PARKS
By: Robert D. Parks
Chairman
Date: May 13, 1999
/S/ PATRICIA A. CHALLENGER
By: Patricia A. Challenger
Senior Vice President
Date: May 13, 1999
/S/ KELLY TUCEK
By: Kelly Tucek
Principal Financial Officer and
Principal Accounting Officer
Date: May 13, 1999
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 1262168
<SECURITIES> 0
<RECEIVABLES> 176458
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1441791
<PP&E> 19041247
<DEPRECIATION> 5648835
<TOTAL-ASSETS> 22063534
<CURRENT-LIABILITIES> 571598
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 18042748
<TOTAL-LIABILITY-AND-EQUITY> 22063534
<SALES> 145558
<TOTAL-REVENUES> 841776
<CGS> 0
<TOTAL-COSTS> 76825
<OTHER-EXPENSES> 190149
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 36125
<INCOME-PRETAX> 538677
<INCOME-TAX> 0
<INCOME-CONTINUING> 538677
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 538677
<EPS-PRIMARY> 9.09
<EPS-DILUTED> 9.09
</TABLE>
