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, 1995
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 Number 0-21536
Brauvin Corporate Lease Program IV L. P.
(Exact name of registrant as specified in its charter)
Delaware 36 -3800611
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
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 .
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
INDEX
Page
PART I Financial Information
Item 1. Consolidated Financial Statements. . . . . . . . . 3
Consolidated Balance Sheets at June 30, 1995 and
December 31, 1994 . . . . . . . . . . . . . . . . . 4
Consolidated Statements of Operations for the six
months ended June 30, 1995 and June 30, 1994. . . . 5
Consolidated Statements of Operations for the three
months ended June 30, 1995 and June 30, 1994. . . . 6
Consolidated Statements of Partners' Capital for the
periods January 1, 1992 to June 30, 1995. . . . . . 7
Consolidated Statements of Cash Flows for the six
months ended June 30, 1995 and June 30, 1994. . . . 8
Notes to Consolidated Financial Statements. . . . . 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . 14
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . 16
Item 2. Changes in Securities. . . . . . . . . . . . . . . 16
Item 3. Defaults Upon Senior Securities. . . . . . . . . . 16
Item 4. Submissions of Matters to a Vote of Security Holders 16
Item 5. Other Information. . . . . . . . . . . . . . . . . . 16
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . 16
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . 17
PART I - FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
Except for the December 31, 1994 Consolidated Balance Sheet,
the following Consolidated Balance Sheet as of June 30, 1995,
Consolidated Statements of Operations for the six months ended
June 30, 1995 and 1994, Consolidated Statements of Operations for
the three months ended June 30, 1995 and 1994, Consolidated
Statements of Partners' Capital for the periods January 1, 1992
to June 30, 1995 and Consolidated Statements of Cash Flows for
the six months ended June 30, 1995 and 1994 for Brauvin Corporate
Lease Program IV L.P. (the "Partnership") are unaudited and have
not been examined by independent public accountants but reflect,
in the opinion of the management, all adjustments necessary to
present fairly the information required. All such adjustments
are of a normal recurring nature.
These consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Partnership's 1994 Annual Report on Form
10-K.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1995 1994
ASSETS
Investment in real estate, at cost:
Land $4,315,540 $4,315,540
Buildings and improvements 9,993,090 9,993,090
14,308,630 14,308,630
Less: accumulated depreciation (506,411) (374,342)
Net investment in real estate 13,802,219 13,934,288
Cash and cash equivalents 622,666 596,244
Deferred rent receivable 199,785 143,488
Tenant receivables 20,208 40,587
Due from affiliates 6,889 14,130
Prepaid offering costs 177,622 179,223
Organization costs (net of
accumulated amortization of $19,000
and $16,000, respectively) 11,000 14,000
Other assets 3,010 550
Total Assets $14,843,399 $14,895,510
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and accrued
expenses $ 126,722 $ 103,361
Rent received in advance -- 50,006
Due to affiliates 1,252 802
Total Liabilities 127,974 154,169
MINORITY INTERESTS IN BRAUVIN
GWINNETT COUNTY VENTURE 716,471 726,640
PARTNERS' CAPITAL:
General Partners 10,794 10,794
Limited Partners 13,988,160 14,003,907
Total Partners' Capital 13,998,954 14,014,701
Total Liabilities and
Partners' Capital $14,843,399 $14,895,510
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended June 30,
1995 1994
INCOME:
Rental $ 810,681 $ 753,613
Interest 12,588 34,442
Other 7,188 3,541
Total income 830,457 791,596
EXPENSES:
Acquisition fees not capitalized -- 61,126
General and administrative 67,280 98,942
Management fees (Note 4) 8,363 6,669
Amortization of organization costs 3,000 3,000
Depreciation 132,068 122,905
Total expenses 210,711 292,642
Income before minority interests
in joint venture 619,746 498,954
Minority interests' share in
Brauvin Gwinnett County
Venture's net income (30,061) (30,260)
Net income $ 589,685 $ 468,694
Net income allocated to the
General Partners $ -- $ 9,374
Net income allocated to the
Limited Partners $ 589,685 $ 459,320
Net income per Unit
outstanding (a) $ 0.36 $ .32
(a) Net income per Unit was based on the average Units
outstanding during the period since they were of varying dollar
amounts and percentages based upon the dates Limited Partners
were admitted to the Partnership and additional Units were
purchased through the Plan.
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30,
1995 1994
INCOME:
Rental $ 409,234 $442,582
Interest 7,831 4,076
Other (6,005) 3,541
Total income 411,060 450,199
EXPENSES:
General and administrative 34,344 50,339
Management fees (Note 4) 3,993 3,793
Amortization of organization costs 1,500 1,500
Depreciation 66,033 66,034
Total expenses 105,870 121,666
Income before minority interests
in joint venture 305,190 328,533
Minority interests' share in
Brauvin Gwinnett County
Venture's net income (15,374) (18,449)
Net income $ 289,816 $ 310,084
Net income allocated to the
General Partners $ -- $ 6,202
Net income allocated to the
Limited Partners $ 289,816 $ 303,882
Net income per Unit
outstanding (a) $ 0.18 $ 0.19
(a) Net income per Unit was based on the average Units
outstanding during the period since they were of varying dollar
amounts and percentages based upon the dates Limited Partners
were admitted to the Partnership and additional Units were
purchased through the Plan.
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
For the periods from January 1, 1992 through June 30, 1995
Initial
Limited General Limited
Partner Partners Partners* Total
Balance, January 1, 1992 $ 1,000 $ -- $ -- $ 1,000
Withdrawals (1,000) -- -- (1,000)
Contributions -- -- 6,790,293 6,790,293
Selling commissions and
other offering costs -- -- (787,835) (787,835)
Net income -- 942 46,148 47,090
Cash distributions -- -- (75,484) (75,484)
Balance, December 31, 1992 -- 942 5,973,122 5,974,064
Contributions, net -- -- 9,299,798 9,299,798
Subscription receivables -- -- (78,500) (78,500)
Selling commissions and
other offering costs -- -- (1,115,998) (1,115,998)
Net income -- 9,852 482,765 492,617
Cash distributions -- -- (495,347) (495,347)
Balance, December 31, 1993 -- 10,794 14,065,840 14,076,634
Collection of subscription
receivables -- -- 78,500 78,500
Contributions, net -- -- 92,094 92,094
Selling commissions and
other offering costs(note 1) -- -- (18,072) (18,072)
Net income -- -- 1,030,281 1,030,281
Cash distributions -- -- (1,244,736) (1,244,736)
Balance, December 31, 1994 -- 10,794 14,003,907 14,014,701
Contributions, net -- -- 54,995 54,995
Selling Commissions and
other offering costs(Note 1) -- -- (9,562) (9,562)
Net income -- -- 589,685 589,685
Cash distributions -- -- (650,865) (650,865)
Balance, June 30, 1995 $ -- $ 10,794 $13,988,160 $13,998,954
* Total Units sold, including those raised through the Plan, at
June 30, 1995, December 31, 1994 and 1993 were 1,623,718
1,617,478 and 1,609,009, respectively. Cash distributions to
Limited Partners per Unit were $0.40, $0.77 and $0.43 for the six
months ended June 30, 1995, and the years ended December 31, 1994
and 1993, respectively. Cash distributions to Limited Partners
per Unit are based on the average Units outstanding during the
period since they were of varying dollar amounts and percentages
based upon the dates Limited Partners were admitted to the
Partnership and additional Units were purchased through the
distribution reinvestment plan.
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30,
1995 1994
Cash flows from operating activities:
Net income $589,685 $ 468,694
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 135,069 125,905
Minority interests in Brauvin
Gwinnett County Venture's
net income 30,061 30,260
Acquisition fees not capitalized -- 61,126
Decrease (increase) in due from
affiliates 7,241 (1,010)
Increase in deferred rent receivable(56,297) (39,318)
Decrease (increase) in rent
receivable 20,379 (41,361)
Decrease (increase) in prepaid
offering costs 1,601 (51)
(Increase) decrease in other assets (2,460) 20,741
Increase (decrease) in accounts
payable and accrued expenses 23,361 (31,428)
Decrease in rent received in advance(50,006) (6,000)
Increase (decrease) in due to
affiliates 450 (5,648)
Total adjustments 109,399 113,216
Net cash provided by operating
activities 699,084 581,910
Cash flows from investing activities:
Purchase of real estate -- (4,289,046)
Acquisition fees not capitalized -- (61,126)
Minority interests' share of
distribution from Brauvin
Gwinnett County Venture (40,230) (35,761)
Net cash used in investing activities(40,230) (4,385,933)
Cash flows from financing activities:
Sale of Units, net of liquidations
and selling commissions 45,433 112,529
Cash distributions to Limited
Partners (650,865) (518,054)
Net cash in financing activities (605,432) (405,525)
Net increase (decrease) in cash
and cash equivalents 53,422 (4,209,548)
Cash and cash equivalents at
beginning of period 569,244 4,803,350
Cash and cash equivalents at
end of period $ 622,666 $ 593,802
See accompanying notes to consolidated financial statements.
<PAGE>
BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
(a Delaware limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1)ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Brauvin Corporate Lease Program IV L.P. (the "Partnership") is
a Delaware limited partnership formed on August 7, 1991 for the
purpose of acquiring debt-free ownership of existing,
ncome-producing retail and other commercial properties
predominantly all of which will be subject to "triple-net"
leases. It is anticipated that these properties will be leased
primarily to corporate lessees of national and regional retail
businesses, service providers and other users consistent with
"triple-net" lease properties. The leases will provide for a
base minimum annual rent and increases in rent such as through
participation in gross sales above a stated level, fixed
increases on specific dates or indexation of rent to indices such
as the Consumer Price Index. The General Partners of the
Partnership, are Brauvin Realty Advisors IV, Inc., Jerome J.
Brault and Cezar M. Froelich. Brauvin Realty Advisors IV, Inc.
is owned by Messrs. Brault (50%) and Froelich (50%).
Brauvin Securities, Inc., an affiliate of the General Partners,
is the selling agent of the Partnership.
The Partnership filed a Registration Statement on Form S-11 with
the Securities and Exchange Commission which was declared
effective on December 12, 1991. Per the terms of the Restated
Limited Partnership Agreement of the Partnership (the
"Agreement"), the minimum of $1,200,000 of limited partnership
interests of the Partnership (the "Units") necessary for the
Partnership to commence operations was achieved on April 27,
1992. The Partnership's offering was anticipated to close on
December 11, 1992 but the Partnership obtained an extension until
December 11, 1993. A total of 1,600,831 Units were sold to the
public through the initial offering at $10 per Unit
($16,008,310).
An additional $308,471 of Units was sold through the
Partnership's distribution reinvestment plan (the "Plan") as
ofJune 30, 1995, and $81,794 of Units sold through the public
offering, have been purchased by the Partnership from investors
liquidating their investment and have been retired. As of June
30, 1995, the Plan participants own Units which approximate 2%
of the total Units sold.
The Partnership has acquired the land and buildings underlying
a Steak n Shake restaurant, a Children's World Learning Center,
two Chuck E. Cheese's restaurants, a Mrs. Winner's Chicken and
Biscuit restaurant, a House of Fabrics store, a Volume ShoeSource
store, an East Side Mario's restaurant, a Blockbuster Video store
and a Walden Books store. In addition, the Partnership had
acquired a 70.2% equity interest in a joint venture with two
entities affiliated with the Partnership. This venture owns the
land and building underlying a CompUSA store.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Method
The accompanying financial statements have been prepared using
the accrual method of accounting.
Rental Income
Rental income is recognized on a straight-line basis over the
life of the related leases. Differences between rental income
earned and amounts due per the respective lease agreements are
credited or charged, as applicable, to deferred rent receivable.
Federal Income Taxes
Under the provisions of the Internal Revenue Code, the
Partnership's income and losses are reportable by the partners on
their respective income tax returns. Accordingly, no provision is
made for Federal income taxes in the Consolidated Financial
Statements. However, in certain instances, the Partnership has
been required under applicable state law to remit directly to the
tax authorities amounts representing withholding from
distributions paid to partners.
Consolidation of Joint Venture
The Partnership owns a 70.2% equity interest in a joint
venture, which owns the land and the buildings underlying one
CompUSA store. The accompanying financial statements have
consolidated 100% of the assets, liabilities, operations and
partners' capital of Brauvin Gwinnett County Venture. All
significant intercompany accounts have been eliminated.
Investment in Real Estate
The operating properties acquired by the Partnership are
stated at cost including acquisition costs, net of accumulated
depreciation. Depreciation expense is computed on a
straight-line basis over approximately 39 years.
Organization and Offering Costs
Organization costs represent costs incurred in connection
with the organization and formation of the Partnership.
Organization costs will be amortized over a period of five years
using the straight-line method. Offering costs represent costs
incurred in selling Units, such as the printing of the Prospectus
and marketing materials and will be recorded as a reduction of
Limited Partners' capital.
The General Partners have guaranteed payment of any
organization and offering costs that exceed 2% of
the gross proceeds of the Partnership's offering. Prepaid
offering costs represent amounts in excess of the defined
percentages of the gross proceeds. Subsequently, gross proceeds
are expected to increase due to the purchase of additional Units
through the distribution reinvestment Plan (the "Plan") and the
prepaid offering costs will be transferred to offering costs and
treated as a reduction in Partners' Capital.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid debt
instruments with an original maturity within three months from
date of purchase.
2) PARTNERSHIP AGREEMENT
Distributions
All Operating Cash Flow, as defined in the Partnership
Agreement (the "Agreement"), during the period commencing with
the date the Partnership accepts subscriptions for Units totaling
$1,200,000 and terminating on the Termination Date, as defined in
the Prospectus, shall be distributed to the Limited Partners on a
quarterly basis. Distributions of Operating Cash Flow, if
available, shall be made within 45 days following the end of each
calendar quarter, commencing with the first quarter following the
Termination Date. Operating Cash Flow during such period shall
be distributed as follows: (a) first, to the Limited Partners
until the Limited Partners receive an amount equal to a 9%
non-cumulative, non-compounded annual return on Adjusted
Investment, as defined in the Agreement, commencing on the last
day of the calendar quarter in which the Unit was purchased (the
"Current Preferred Return"); and (b) thereafter, any remaining
amounts will be distributed 98% to the Limited Partners (on a
prorata basis) and 2% to the General Partners.
The net proceeds of a sale or refinancing of a Partnership
property shall be distributed as follows:
first, pro rata to the Limited Partners until each
Limited Partner has received an amount equal to a 10% cumulative,
non-compounded, annual return of Adjusted Investment (the
"Cumulative Preferred Return");
second, to the Limited Partners until each Limited
Partner has received an amount equal to the amount of his
Adjusted Investment, apportioned pro rata based on the amount of
the Adjusted Investment; thereafter, 95% to the Limited
Partners(apportioned prorata based on Units) and 5% to the
General Partners.
Profits and Losses
Net profits and losses from operations of the Partnership
[computed without regard to any allowance for epreciation or cost
recovery deductions under the Internal Revenue Code of 1986, as
amended (the "Code")] for each taxable year of the Partnership
shall be allocated to each Partner in the same ratio as the cash
distributions received by such Partner attributable to that
period bears to the total cash distributed by the Partnership.
In the event that there are no cash distributions, net profits
and losses from operations of the Partnership (computed without
regard to any allowance for depreciation or cost recovery
deductions under the Code) shall be allocated 99% to the Limited
Partners and 1% to the General Partners. Notwithstanding the
foregoing, all depreciation and cost recovery deductions
allowedunder the Code shall be allocated 2% to the General
Partners and 98% to the Class A Investors, as defined in the
Agreement.
The net profit of the Partnership from any sale or other
disposition of a Partnership property shall be allocated (with
ordinary income being allocated first) as follows: (a) first, an
amount equal to the aggregate deficit balances of the Partners'
Capital Accounts, as such term is defined in the Agreement, shall
be allocated to each Partner who or which has a deficit Capital
Account balance in the same ratio as the deficit balance of such
Partner's Capital Account bears to the aggregate of the deficit
balances of all Partners' Capital Accounts; (b) second, to the
Limited Partners until the Capital Account balances of the
Limited Partners are equal to any unpaid Cumulative Preferred
Return as of such date; (c) third, to the Limited Partners until
the Capital Account balances of the Limited Partners are equal to
the sum of the amount of their Adjusted Investment plus any
unpaid Cumulative Preferred Return; (d) fourth, to the General
Partners until their Capital Account balances are equal to any
previously subordinated fees; and (e) thereafter, 95% to the
Limited Partners and 5% to the General Partners. The net loss of
the Partnership from any sale or other disposition of a
Partnership property shall be allocated as follows: (a) first,
an amount equal to the aggregate positive balances in the
Partners' Capital Accounts, to each Partner in the same ratio as
the positive balance in such Partner's Capital Account bears to
the aggregate of all Partners' positive Capital Accounts
balances; and (b) thereafter, 95% to the Limited Partners and 5%
to the General Partners.
Distributions to Limited Partners for the second quarter of
1995 will be made to investors receiving quarterly distributions
on August 15, 1995 and to investors receiving monthly
distributions on approximately July, August and September 15,
1995, in the aggregate amount of $323,896.
(3) TRANSACTIONS WITH RELATED PARTIES
The Partnership pays an affiliate of the General Partners an
acquisition fee in the amount of up to 5% of the gross proceeds
of the Partnership's offering for the services rendered in
connection with the process pertaining to the acquisition of a
property. Acquisition fees related to the properties not
ultimately purchased by the Partnership are expensed as incurred.
The Partnership paid an affiliated entity a non-accountable
selling expense allowance in an amount equal to 2% of the gross
proceeds of the Partnership's offering, a portion of which may be
reallowed to participating dealers.
In the event that the Partnership does not use more than 2%
of the gross proceeds of the offering for the payment of legal,
accounting, escrow, filing and other fees incurred in connection
with the organization or formation of the Partnership, the
Partnership may pay the General Partners any unused portion of
the 2% of the gross proceeds of the offering allowed for
organization and offering expenses, not to exceed 1/2% of the
gross proceeds of the offering. The General Partners will use
such funds to pay certain expenses of the offering incurred by
them not covered by the definition of organization and offering
expenses.
An affiliate of the General Partners provides leasing and
re-leasing services to the Partnership in connection with the
management of Partnership properties. The property management
fee payable to an affiliate of the General Partners is 1% of the
gross revenues of each Partnership property.
An affiliate of the General Partners or the General Partners
will receive a real estate brokerage commission in connection
with the disposition of Partnership properties. Such commission
will be in an amount equal to the lesser of: (i) 3% of the sale
price of the property; or (ii) 50% of the real estate commission
customarily charged for similar services in the locale of the
property being sold; provided, however, that receipt by the
General Partners or one of their affiliates of such commission
is subordinated to receipt by the Limited Partners of their
Current Preferred Return.
An affiliate of one of the General Partners provides
securities and real estate counsel to the Partnership. Fees,
commissions and other expenses paid or payable to the General
Partners or its affiliates for the six months ended June 30, 1995
and 1994 were as follows:
1995 1994
Acquisition fees $ -- $244,503
Selling commissions 7,961 6,250
Management fees 8,363 6,669
Reimbursable operating expense 34,800 30,000
Legal fees 1,050 1,800
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Liquidity and Capital Resources
The Partnership commenced an offering to the public on December
12, 1991 of 3,300,000 Units, 300,000 of which are available only
through the Partnership's distribution reinvestment plan (the
"Plan"). The offering was anticipated to close on December 11,
1992, but was extended until December 11, 1993 with the
appropriate governmental approvals. None of the Units were
subscribed and issued between December 12, 1991 and December 31,
1991, pursuant to the Partnership's public offering. The
offering was conditioned upon the sale of $1,200,000, which was
achieved on April 27, 1992. The Partnership raised a total of
$16,008,310 through the initial offering and an additional
$308,471 through the distribution reinvestment plan through June
30, 1995. As of June 30, 1995, Units valued at $81,794 have been
purchased by the Partnership from Limited Partners liquidating
their original investment and have been retired.
The General Partners will be adopting an enhancement to the
Partnership's Distribution Reinvestment Plan effective August,
1995. This enhancement will permit unit holders to reinvest at a
unit price that will be adjusted to reflect any return of
investor capital generated through property sales. In addition,
any unit liquidations will also occur at the adjusted unit price.
In 1992, the Partnership purchased the land and buildings
underlying a Steak n' Shake restaurant, a Children's World
Learning Center and a PetsMart retail store. Due to PetsMart's
inability to comply with certain Partnership's acquisition
requirements, PetsMart repurchased the store from the Partnership
in March 1993. In 1993, the Partnership purchased the land and
buildings of two Chuck E. Cheese's restaurants, a Mrs. Winner's
Chicken & Biscuit restaurant, a SoFro Fabric store, a Volume
ShoeSource store and purchased a 70.2% equity interest in an
affiliated joint venture which acquired the land and building
underlying a CompUSA computer superstore. In 1994, the
Partnership purchased the land and buildings underlying an East
Side Mario's restaurant, a Blockbuster Video store and a Walden
Books store.
The Partnership is now fully invested in properties with the
exception of funds raised through the Plan. These operating
properties are expected to generate cash flow for the Partnership
after deducting certain operating and general and administrative
expenses from their rental income.
Below is a table summarizing the historical data for distribution
rates per annum:
Distribution
Date 1995 1994 1993 1992
February 15 8.00% 6.50% 6.00% --
May 15 8.00 7.00 6.00 3.68%
August 15 8.00 8.00 5.00 7.00
November 15 10.00 5.50 6.00
<PAGE>
Future increases in the Partnership's distributions will depend
on increased sales at the Partnership's properties, resulting in
additional percentage rent. Rental increases, to a lesser
extent, may occur due to increases in receipts from certain
leases based upon increases in the Consumer Price Index or
scheduled increases of base rent.
Results of Operation - Six Months Ended June 30, 1995 and 1994
Results of operations for the six months ended June 30, 1995
reflected net income of $589,685 compared to net income of
$468,694 for the six months ended June 30, 1994, an increase of
approximately $121,000. The increase in net income is due to
1995 reflecting a full six months of operations of three
properties acquired during the first quarter of 1994.
Total income was $830,457 in 1995 as compared to $791,596 in
1994, an increase of approximately $39,000. The increase in
rental income is due to 1995 reflecting a full six months of
operations of three properties acquired during the first quarter
of 1994.
Total expenses were $210,711 in 1995 as compared to $292,642 in
1994, a decrease of approximately $82,000. The decrease in total
expenses was mainly due to the decrease in acquisition fees of
$61,126 as a result of the Partnership not acquiring any
additional properties during 1995 and a decrease in legal and
professional fees.
Results of Operations - Three Months Ended June 30, 1995 and 1994
Results of operations for the three months ended June 30, 1995
reflected net income of $289,816 compared to net income of
$310,084 for the three months ended June 30, 1994, a decrease of
approximately $20,000. The decrease in net income is due to the
ental income at June 30, 1994 reflecting more than three months
of rental income as a result of a timing difference due to
property purchases late in the first quarter of 1994.
Total income for the three months ended June 30, 1995 was
$411,060 compared to total income of $450,199 for the period of
June 30, 1994, a decrease of approximately $39,000. The decrease
in total income is due to the rental income at June 30, 1994
reflecting more than three months of rental income as a result of
a timing difference due to property purchases late in the first
quarter of 1994.
Total expenses for the three months ended June 30, 1995 were
$105,870 as compared to $121,666 in 1994, a decrease of
approximately $16,000. The decrease in total expense was mainly
due to the decrease in general and administration expenses such
as audit, legal and professional fees.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
On October 14, 1993, an affiliate of the Partnership, Brauvin,
Inc., brought a lawsuit against an unaffiliated seller due to the
seller's alleged refusal to proceed under the terms of a purchase
and sale agreement Brauvin, Inc. entered into to acquire three
properties in Jacksonville, Florida. In this lawsuit, Brauvin,
Inc. has sought specific performance of the purchase and sale
agreement to require the unaffiliated seller to sell the subject
properties to Brauvin, Inc.. Brauvin, Inc. subsequently amended
its complaint to add the tenant of the properties, Rally's, Inc.,
as an additional defendant seeking an unspecified amount of
damages. Rally's, Inc. was added because of its activities which
Brauvin, Inc. alleges have tortiously interfered with the
business relations between Brauvin, Inc. and the seller.
In response to the lawsuit, the seller made a counterclaim
against Brauvin, Inc. with counts for slander of title, tortious
interference with an advantageous business relationship,
conspiracy and to quiet title. The seller has also sued an
employee of Brauvin, Inc. and the Partnership. The counterclaim
is seeking damages in an amount in excess of $2,000,000, together
with punitive damages. The Partnership filed a motion to dismiss
as the Partnership believes the Florida court does not have
jurisdiction over the Partnership. During 1994, the motion to
dismiss was denied. The Partnership made attempts to settle but
did not succeed. The Partnership intends to vigorously defend
itself in this action.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission Of Matters To a Vote of Security Holders.
None.
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports On Form 8-K.
Exhibit 27. Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
l934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
BY: Brauvin Realty Advisors IV, Inc.
Corporate General Partner of
Brauvin Corporate Lease Program IV L.P.
BY: /S/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of
Directors, President and Chief
Executive Officer
DATE: August 14, 1995
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer and
Treasurer
DATE: August 14, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 622,666
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 14,308,630 <F1>
<DEPRECIATION> 506,411
<TOTAL-ASSETS> 14,843,399
<CURRENT-LIABILITIES> 0
<BONDS> 716,471 <F2>
0
0
<COMMON> 13,998,954 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 14,843,399
<SALES> 0
<TOTAL-REVENUES> 830,457 <F4>
<CGS> 0
<TOTAL-COSTS> 210,711 <F5>
<OTHER-EXPENSES> (619,746) <F6>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 589,685
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<F2> "BONDS" REPRESENTS MINORITY INTEREST IN JOINT VENTURE
<F3> "COMMON" REPRESENTS TOTAL PARTNERS CAPITAL
<F4> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F5> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
<F6> "OTHER EXPENSES" REPRESENTS MINORITY INTEREST IN JOINT
VENTURES' NET INCOME
</FN>
</TABLE>
