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 June 30, 1998
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 #0-21606
InLand Capital Fund, L.P.
(Exact name of registrant as specified in its charter)
Delaware #36-3767977
(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 CAPITAL FUND, L.P.
(a limited partnership)
Balance Sheets
June 30, 1998 and December 31, 1997
(unaudited)
Assets
------
1998 1997
Current assets: ---- ----
Cash and cash equivalents (Note 1).............. $ 599,520 304,452
Investments in marketable securities (Note 1)... - 174,800
Accrued interest and other receivables.......... 14,793 1,018
Other current assets............................ - 2,632
------------ ------------
Total current assets.............................. 614,313 482,902
Other assets...................................... 196,506 169,139
Investment properties and improvements, at cost
(including acquisition fees paid to Affiliates
of $1,404,942 and $1,409,967 at June 30, 1998
and December 31, 1997, respectively) (Notes 1,
3 and 4)........................................ 28,308,587 28,301,315
------------ ------------
Total assets...................................... $29,119,406 28,953,356
============ ============
See accompanying notes to financial statements.
-2-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Balance Sheets
(continued)
June 30, 1998 and December 31, 1997
(unaudited)
Liabilities and Partners' Capital
---------------------------------
1998 1997
Current liabilities: ---- ----
Accounts payable................................ $ 70,270 8,590
Accrued real estate taxes....................... 92,461 73,097
Due to Affiliates (Note 2)...................... 359 10,343
Unearned income................................. 15,048 20,802
------------ ------------
Total current liabilities......................... 178,138 112,832
------------ ------------
Partners' capital (Notes 1 and 2):
General Partner:
Capital contribution.......................... 500 500
Cumulative net income......................... 13,233 13,675
------------ ------------
13,733 14,175
Limited Partners: ------------ ------------
Units of $1,000. Authorized 60,000 Units,
32,352.11 Units outstanding at June 30, 1998
and December 31, 1997 (net of offering costs
of $4,466,765, of which $3,488,574 was paid
to Affiliates)................................ 27,886,551 27,886,551
Cumulative cash distributions................. (1,646,334) (1,646,334)
Cumulative net income......................... 2,687,318 2,586,132
------------ ------------
28,927,535 28,826,349
------------ ------------
Total Partners' capital........................... 28,941,268 28,840,524
------------ ------------
Total liabilities and Partners' capital........... $29,119,406 28,953,356
============ ============
See accompanying notes to financial statements.
-3-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Statements of Operations
For the three and six months ended June 30, 1998 and 1997
(unaudited)
Three months Six months
ended ended
June 30, June 30,
--------
1998 1997 1998 1997
Income: ---- ---- ---- ----
Sale of investment property (Notes
1 and 3)....................... $ 311,621 129,176 311,621 129,176
Rental income.................... 73,776 68,670 146,284 146,506
Interest income.................. 8,700 13,112 14,811 29,020
Other income..................... - - - 28,000
---------- ---------- ---------- ----------
394,097 210,958 472,716 332,702
---------- ---------- ---------- ----------
Expenses:
Cost of investment property sold. 166,630 21,462 166,630 21,462
Professional services to
Affiliates..................... 6,250 5,727 12,591 19,574
Professional services to
non-affiliates................. 1,527 18,666 23,102 43,771
General and administrative
expenses to Affiliates......... 2,240 5,204 10,733 13,087
General and administrative
expenses to non-affiliates..... 6,043 4,411 15,312 9,686
Marketing expenses to Affiliates. 8,666 17,702 13,129 49,731
Marketing expenses to
non-affiliates................. 18,560 20,980 24,352 35,014
Land operating expenses to
Affiliates..................... 15,861 15,955 31,723 31,914
Land operating expenses to
non-affiliates................. 52,155 15,692 74,400 38,658
---------- ---------- ---------- ----------
277,932 125,799 371,972 262,897
---------- ---------- ---------- ----------
Net income......................... $ 116,165 85,159 100,744 69,805
========== ========== ========== ==========
See accompanying notes to financial statements.
-4-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Statements of Operations
(continued)
For the three and six months ended June 30, 1998 and 1997
(unaudited)
Three months Six months
ended ended
June 30, June 30,
-------- --------
1998 1997 1998 1997
Net income allocated to: ---- ---- ---- ----
General Partner.................. $ (288) (225) (442) (379)
Limited Partners................. 116,453 85,384 101,186 70,184
---------- ---------- ---------- ----------
Net income......................... $ 116,165 85,159 100,744 69,805
========== ========== ========== ==========
Net loss allocated to the
one General Partner Unit......... $ (288) (225) (442) (379)
========== ========== ========== ==========
Net income per Unit, basic and
diluted, allocated to Limited
Partners per weighted average
Limited Partnership Units
(32,352.11 and 32,372.11 for the
three months ended June 30, 1998
and 1997, respectively and
32,352.11 and 32,373.74 for the
six months ended June 30, 1998
and 1997, respectively).......... $ 3.60 2.64 3.13 2.17
========== ========== ========== ==========
See accompanying notes to financial statements.
-5-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Statements of Cash Flows
For the six months ended June 30, 1998 and 1997
(unaudited)
1998 1997
Cash flows from operating activities: ---- ----
Net income...................................... $ 100,744 69,805
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Gain on sale of land.......................... (144,991) (107,714)
Changes in assets and liabilities:
Accrued interest and other receivables...... (13,775) (10,135)
Other current assets........................ 2,632 (3,014)
Accounts payable............................ 61,680 (440,977)
Accrued real estate taxes................... 19,364 (5,003)
Due to Affiliates........................... (9,984) 9,862
Unearned income............................. (5,754) (8,120)
Net cash provided by (used in) operating ------------ ------------
activities...................................... 9,916 (495,296)
------------ ------------
Cash flows from investing activities:
Sale (purchase) of marketable securities, net... 174,800 903,002
Additions to investment properties.............. (173,902) (417,428)
Other assets.................................... (27,367) (104,452)
Proceeds from sale of investment properties..... 311,621 129,176
------------ ------------
Net cash provided by investing activities......... 285,152 510,298
------------ ------------
Cash flows from financing activities:
Repurchase of Limited Partnership Units......... - (4,900)
Distributions paid.............................. - (194)
------------ ------------
Net cash used in financing activities............. - (5,094)
------------ ------------
Net increase in cash and cash equivalents......... 295,068 9,908
Cash and cash equivalents at beginning of period.. 304,452 581,693
------------ ------------
Cash and cash equivalents at end of period........ $ 599,520 591,601
============ ============
See accompanying notes to financial statements.
-6-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Notes to Financial Statements
June 30, 1998
(unaudited)
Readers of this Quarterly Report should refer to the Partnership's audited
financial statements for the fiscal year ended December 31, 1997, which are
included in the Partnership's 1997 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 Capital Fund, L.P. (the "Partnership") was organized on June 21, 1991 by
the filing of a Certificate of Limited Partnership under the Revised Uniform
Limited Partnership Act of the State of Delaware. On December 13, 1991, the
Partnership commenced an Offering of 60,000 Limited Partnership Units pursuant
to a Registration under the Securities Act of 1933. The Amended and Restated
Agreement of Limited Partnership (the "Partnership Agreement") provides for
Inland Real Estate Investment Corporation to be the General Partner. The
Offering terminated on August 23, 1993, with total sales of 32,399.28 Units, at
$1,000 per Unit, resulting in $32,399,282 in gross offering proceeds, not
including the General Partner's capital contribution of $500. All of the
holders of these Units have been admitted to the Partnership. The Limited
Partners of the Partnership will share in their portion of benefits of
ownership of the Partnership's real property investments according to the
number of Units held. As of June 30, 1998, the Partnership has repurchased and
canceled a total of 47.17 Units for $45,967 from various Limited Partners
through the Units Repurchase Program. Under this program, Limited Partners may
under certain circumstances have their Units repurchased for an amount equal to
their Invested Capital.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates.
Offering costs have been offset against the Limited Partners' capital accounts.
The Partnership considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents.
Investments purchased with an original maturity of three months or more are
considered to be investments in marketable securities.
-7-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
June 30, 1998
(unaudited)
For vacant land parcels and parcels with insignificant buildings and
improvements, the Partnership uses the area method of allocation, which
approximates the relative sales method of allocation, whereby a per acre price
is used as the standard allocation method for land purchases and sales. The
total cost of the parcel is divided by the total number of acres to arrive at a
per acre price. Repair and maintenance expenses are charged to operations as
incurred.
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. As of June 30, 1998, the
Partnership has not recognized any such impairment.
Statement of Financial Accounting Standards No. 128 "Earnings per Share" was
adopted by the Partnership for the year ended December 31, 1997 and has been
applied to all prior earnings periods presented in the financial statements.
The Partnership has no dilutive securities.
The Partnership is required to pay a withholding tax to the Internal Revenue
Service with respect to a Partner's allocable share of the Partnership's
taxable net income, if the Partner is a foreign person. The Partnership will
first pay the withholding tax from the distributions to any foreign person, and
to the extent that the tax exceeds the amount of distributions withheld, or if
there have been no distributions to withhold, the excess will be accounted for
as a distribution to the foreign person. Future withholding tax payments will
be made every April, June, September and December.
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 period
presented herein. Results of interim periods are not necessarily indicative of
results to be expected for the year.
-8-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
June 30, 1998
(unaudited)
(2) 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 $359 and $3,822 was unpaid as of June 30, 1998 and December 31, 1997,
respectively.
The General Partner is entitled to receive Asset Management Fees equal to one-
quarter of 1% of the original cost to the Partnership of undeveloped land
annually, limited to a cumulative total over the life of the Partnership of 2%
of the land's original cost to the Partnership. Such fees of $31,723 and
$31,914 have been incurred and paid and are included in land operating expenses
to Affiliates for the six months ended June 30, 1998 and 1997, respectively.
An Affiliate of the General Partner performed sales marketing and advertising
services for the Partnership and was reimbursed (as set forth under terms of
the Partnership Agreement) for direct costs. Such costs of $13,129 and $49,731
have been incurred and are included in marketing expenses to Affiliates for the
six months ended June 30, 1998 and 1997, respectively, of which $0 and $6,521
was unpaid as of June 30, 1998 and December 31, 1997, respectively.
An Affiliate of the General Partner performed property upgrades, rezoning,
annexation and other activities to prepare the Partnership's land investments
for sale and was reimbursed (as set forth under terms of the Partnership
Agreement) for salaries and direct costs. The Affiliate did not take a profit
on any project. Such costs are included in investment properties, all of which
have been paid as of June 30, 1998.
-9-
<TABLE>
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
(3) Investment Properties
<CAPTION>
Total
Gross Initial Costs Costs Cumulative Remaining Current
Acres Purchase/ -------------------------------------- Capitalized Costs of Costs of Year Gain
Parcel Location: Purchased Sales Original Acquisition Total Subsequent to Property Parcels at On Sale
# County /(Sold) Date Costs Costs Costs Acquisition Sold 6/30/98 Recognized
- ------ --------- --------- ---------- ------------ ------------ ------------ -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Kendall 108.8960 07/22/92 $ 707,566 57,926 765,492 80,036 - 845,528 -
2 McHenry 201.0000 11/09/93 2,020,314 122,145 2,142,459 1,565,188 509,825 3,197,822 77,589
(17.7420) 08/02/95
(8.6806) Var 1997
(1.9290) Var 1998
3 Will 34.0474 03/04/94 1,235,830 88,092 1,323,922 34,483 - 1,358,405 -
4 Will 86.9195 03/30/94 1,778,820 143,817 1,922,637 330,330 70,411 2,182,556 -
(.8700) 06/07/97
(1.4350) 08/12/97
5 LaSalle 190.9600 04/01/94 532,000 18,145 550,145 66,804 6,655 610,294 56,765
(2.0600) 04/08/98
6 DeKalb 59.0800 05/11/94 670,207 58,373 728,580 486,869 101,256 1,114,193 10,637
(4.9233) Var 1998
7 Kendall 200.8210 07/28/94 1,506,158 82,999 1,589,157 23,858 - 1,613,015 -
8 Kendall 133.0000 08/17/94 1,300,000 106,949 1,406,949 5,581 - 1,412,530 -
9 LaSalle 335.9600 08/30/94 993,441 79,329 1,072,770 110,814 - 1,183,584 -
10 Kendall 223.7470 09/16/94 2,693,025 205,660 2,898,685 26,176 - 2,924,861 -
10A(a) Kendall 7.0390 09/16/94 206,975 15,806 222,781 1,327 221,078 - -
(7.0390) 04/21/95
11 Kane 123.0000 09/26/94 1,353,000 75,551 1,428,551 6,087 - 1,434,638 -
12 Kendall 110.2530 09/28/94 600,001 51,220 651,221 51,777 - 702,998 -
13 LaSalle 352.7390 10/06/94 1,032,666 91,117 1,123,783 22,723 - 1,146,506 -
14 Kendall 134.7760 10/26/94 1,000,000 81,674 1,081,674 5,971 - 1,087,645 -
15 McHenry 169.5400 10/31/94 2,900,000 79,196 2,979,196 228,999 - 3,208,195 -
16 McHenry 207.0754 11/30/94 1,760,256 101,388 1,861,644 226,345 - 2,087,989 -
17 LaSalle 236.4400 12/07/94 1,060,286 74,735 1,135,021 984 - 1,136,005 -
18 Kendall 386.9900 11/02/95 934,993 126,329 1,061,322 501 - 1,061,823 -
------------ ------------ ------------ -------------- ------------ ------------ ------------
$24,285,539 1,660,450 25,945,989 3,274,853 909,225 28,308,587 144,991
============ ============ ============ ============== ============ ============ ============
</TABLE>
-10-
-10-
INLAND CAPITAL FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
June 30, 1998
(unaudited)
(3) Investment Properties (continued)
(a) Included in the purchase of Parcel 10 was a house and several outbuildings,
located on approximately seven acres, which was sold on April 21, 1995.
(b) Reconciliation of real estate owned:
June 30, December 31,
1998 1997
------------ ------------
Balance at January 1,........................... $28,301,315 27,714,600
Additions during period......................... 173,902 911,759
------------ ------------
28,475,217 28,626,359
Sales during period............................. 166,630 325,044
------------ ------------
Balance at end of period........................ $28,308,587 28,301,315
============ ============
(4) Farm Rental Income
The Partnership has determined that all leases relating to the farm parcels are
operating leases. Accordingly, rental income is reported when earned.
As of June 30, 1998, the Partnership had farm leases of generally one year in
duration, for approximately 2,761 acres of the approximately 3,257 acres owned.
(5) Subsequent Events
On July 7, 1998, the Partnership sold the remaining acres of Parcel 6 to an
unaffiliated third party for $1,125,000. As a result of the sale, the
Partnership received a mortgage note receivable of $1,125,000 and recorded a
deferred gain on sale of $7,889. The deferred gain will be recognized over the
life of the related mortgage loan receivable as principal payments are
received. The mortgage note receivable accrues interest at 9% per annum,
requires a principal paydown of $725,000 on September 30, 1998 and has a
maturity date of July 7, 2001, at which time all unpaid accrued interest and
principal is due.
On July 27, 1998, the Partnership sold approximately ten acres of Parcel 13 to
an unaffiliated third party for $100,000. The Partnership received net sales
proceeds of $99,650 and recorded a gain on sale of $67,147.
-11-
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, 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 December 13, 1991, the Partnership commenced an Offering of 60,000 Limited
Partnership Units ("Units") at $1,000 per Unit, pursuant to a Registration
Statement on Form S-11 under the Securities Act of 1933. The Offering
terminated on August 23, 1993, with total sales of 32,399.28 Units, at $1,000
per Unit, resulting in $32,399,282 in gross offering proceeds, not including
the General Partner's capital contribution of $500. All of the holders of these
Units have been admitted to the Partnership. The Limited Partners of the
Partnership will share in their portion of benefits of ownership of the
Partnership's real property investments according to the number of Units held.
The Partnership used $25,945,989 of gross offering proceeds to purchase, on an
all-cash basis, eighteen parcels of land and one building. These investments
include the payment of the purchase price, acquisition fees and acquisition
costs of such properties. One of the parcels was purchased during 1992, one
during 1993, fifteen during 1994 and one during 1995. As of June 30, 1998, the
Partnership has had multiple sales transactions through which it has disposed
of the building and approximately forty-five acres of the 3,302 acres
originally owned. As of June 30, 1998, cumulative distributions to the Limited
Partners have totaled $1,646,334 (which represents a return of Invested
Capital, as defined the Partnership Agreement). Through June 30, 1998, the
Partnership has used $3,274,853 of working capital reserve for rezoning and
other activities and such amount is included in investment properties.
The Partnership's capital needs and resources will vary depending upon a number
of factors, including the extent to which the Partnership conducts rezoning and
other activities relating to utility access, the installation of roads,
subdivision and/or annexation of land to a municipality, changes in real estate
taxes affecting the Partnership's land, and the amount of revenue received from
leasing. As of June 30, 1998, the Partnership owns, in whole or in part, all
eighteen of its original parcels, the majority of which are leased to local
farmers and are generating sufficient cash flow from farm leases to cover
property taxes and insurance.
-12-
At June 30, 1998, the Partnership had cash, cash equivalents and investments in
marketable securities of $599,520, of which approximately $157,200 is reserved
for the repurchase of Units through the Unit Repurchase Program. The remaining
$442,320 is available, upon maturity, to be used for Partnership expenses and
liabilities, cash distributions to partners, and other activities with respect
to some or all of its land parcels. The Partnership plans to maximize its
parcel sales effort in anticipation of rising land values.
The Partnership plans to enhance the value of its land through pre-development
activities such as rezoning, annexation and land planning. The Partnership has
already been successful in, or is in the process of pre-development activity on
a majority of the Partnership's land investments. Parcel 2, annexed to the
village of McHenry and zoned for a business park, has one phase of improvements
complete and sites are being marketed to potential buyers, of which eleven of
the 190 lots were sold as of June 30, 1998. (See Note 3 of the Notes to
Financial Statements.) Parcel 4, zoned for a variety of business uses, has
improvements underway and sites are being marketed to potential buyers, of
which one site consisting of .87 acres was sold to a hotel chain on June 6,
1997 and another site consisting of 1.435 acres was sold to a combination gas
station/convenient store on August 12, 1997. (See Note 3 of the Notes to
Financial Statements.) Parcel 6, annexed to the village of DeKalb and zoned for
large, residential lots, has completed the road into the subdivision and the
lots are being marketed to homebuilders and individuals, of which two of the
twenty-four lots were sold as of June 30, 1998. (See Note 3 of the Notes to
Financial Statements.) Parcels 15 and 16 have been annexed to the village of
Huntley and zoned for residential and commercial development.
Results of Operations
As of June 30, 1998, the Partnership owned eighteen parcels of land consisting
of approximately 3,257 acres. Of the 3,257 acres owned, approximately 2,761
acres are tillable and leased to local farmers and are generating sufficient
cash flow to cover property taxes, insurance and other miscellaneous property
expenses.
The sale of investment property income and the cost of investment property sold
recorded for the six months ended June 30, 1998 is the result of two additional
lots sales at Parcel 2, two lots sales at Parcel 6 and an easement sale on
Parcel 5. (See Note 3 of the Notes to Financial Statements.)
Interest income decreased for the three and six months ended June 30, 1998, as
compared to the three and six months ended June 30, 1997, due primarily to the
Partnership utilizing its working capital reserve to fund pre-development
activity on its land parcels.
The other income recorded for the six months ended June 30, 1997 is primarily
the result of the Partnership receiving a non-refundable deposit on a land sale
which did not occur.
Professional services to Affiliates decreased for the six months ended June 30,
1998, as compared to the six months ended June 30, 1997, due primarily to a
decrease in legal services required by the Partnership. Professional services
to non-affiliates decreased for the three and six months ended June 30, 1998,
as compared to the three and six months ended June 30, 1997, due to a decrease
in legal services. This decrease was partially offset by an increase in
accounting fees.
-13-
General and administrative expenses to Affiliates decreased for the three and
six months ended June 30, 1998, as compared to the three and six months ended
June 30, 1997, due primarily to decreases in investor services expenses.
General and administrative expenses to non-affiliates increased for the three
and six months ended June 30, 1998, as compared to the three and six months
ended June 30, 1997, due primarily to an increase in the Illinois Replacement
tax.
Marketing expenses to Affiliates decreased for the three and six months ended
June 30, 1998, as compared to the three and six months ended June 30, 1997, due
to the identification of such costs which are specific to a particular parcel,
and accordingly, have been capitalized and are included in investments in land.
Marketing expenses to non-affiliates decreased for the three and six months
ended June 30, 1998, as compared to the three and six months ended June 30,
1997, due to a decrease in advertising and travel expenses relating to
marketing the land portfolio to prospective purchasers.
Land operating expenses to non-affiliates increased for the three and six
months ended June 30, 1998, as compared to the three and six months ended June
30, 1997, due to increases in real estate taxes.
Year 2000 Compliance
The Partnership has reviewed its current computer systems and does not
anticipate any future problems relating to the year 2000.
PART II - Other Information
Items 1 through 5 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
-14-
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 CAPITAL FUND, L.P.
By: Inland Real Estate Investment Corporation
General Partner
/S/ ROBERT D. PARKS
By: Robert D. Parks
Chairman
Date: August 11, 1998
/S/ PATRICIA A. CHALLENGER
By: Patricia A. Challenger
Senior Vice President
Date: August 11, 1998
/S/ KELLY TUCEK
By: Kelly Tucek
Principal Financial Officer and
Principal Accounting Officer
Date: August 11, 1998
-15-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 599520
<SECURITIES> 0
<RECEIVABLES> 14793
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 614313
<PP&E> 28308587
<DEPRECIATION> 0
<TOTAL-ASSETS> 29119406
<CURRENT-LIABILITIES> 178138
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 28941268
<TOTAL-LIABILITY-AND-EQUITY> 29119406
<SALES> 311621
<TOTAL-REVENUES> 472716
<CGS> 166630
<TOTAL-COSTS> 106123
<OTHER-EXPENSES> 265849
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 100744
<INCOME-TAX> 0
<INCOME-CONTINUING> 100744
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 100744
<EPS-PRIMARY> 3.13
<EPS-DILUTED> 3.13
</TABLE>
