SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Quarterly period ended March 31, 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 0-6701
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(Exact name of registrant as specified in its charter)
Michigan 38-6239993
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6100 Glades Road, Suite 205
Boca Raton, Florida 33434
(Address of principal executive offices) (Zip Code)
(407) 487-6700
(Registrant's telephone number, including area code)
(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 report), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
COMMISSION FILE NUMBER 0-6701
FORM 10-Q
March 31, 1995
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statements of Financial Condition, as of March 31, 1995
(Unaudited) and December 31, 1994..............................3
Statements of Operations, for the three months
ended March 31, 1995 and 1994 (Unaudited)......................4
Statements of Cash Flows, for the three months ended
March 31, 1995 and 1994 (Unaudited)............................5
Notes to Financial Statements (Unaudited)...........................6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............................7
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K....................................8
ITEM 1. FINANCIAL STATEMENTS
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
March 31, December 31,
1995 1994
ASSETS
Investment in real estate
Land $ 144,581 $ 144,581
Land improvements 51,425 51,425
Buildings and improvements 3,427,795 3,391,354
3,623,801 3,587,360
Less accumulated depreciation 2,042,846 1,968,393
Net investment in real estate 1,580,955 1,618,967
Wrap-around mortgage notes receivable 5,043,750 5,043,750
Purchase money mortgage note receivablee 1,450,000 1,450,000
Less unamortized discount (37,935) (60,696)
Allowance for loss on note receivable (525,000) (525,000)
Deferred gain on sales of real estate (2,983,868) (2,983,868)
2,946,947 2,924,186
Other assets
Cash 5,475 27,031
Investments, at cost which
approximates market 3,145,530 3,619,725
Accounts receivable 39,544 37,976
Deferred interest receivable 174,488 174,488
Prepaid insurance 19,108 30,051
Replacement reserve 98,287 105,114
Escrow deposits and other assets 67,045 115,770
Deferred charges net of accumulated
amortization of $95,349 and $89,806,
respectively 145,759 151,303
Total other assets 3,695,236 4,261,458
Total assets $ 8,223,138 $ 8,804,611
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 3,960,597 $ 3,974,353
Accounts payable 65,038 31,249
Accrued liabilities to affiliates 471,923 471,421
Unfunded distributions payable - 540,304
Accrued liabilities 82,859 152,401
Tenants' security deposits and other
liabilities 29,551 26,826
Total liabilities 4,609,968 5,196,554
Partners' capital
Limited Partners, 40,004 units 3,597,775 3,592,662
General Partner, 34 units 15,395 15,395
Total Partner's capital 3,613,170 3,608,057
Total liabilities and
Partners' capital $8,223,138 $8,804,611
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1995 1994
Revenues
Rents and other tenant charges $ 205,707 $ 207,934
Interest on mortgage notes receivable 151,262 151,262
Other interest 46,898 19,400
403,867 378,596
Expenses
Maintenance, custodial salaries
and related expenses 19,116 18,985
Real estate management fees 11,959 12,236
Mortgage servicing fees 4,729 3,829
Property taxes 17,256 17,256
Depreciation and amortization 79,996 70,109
Insurance 9,096 7,800
Utilities 33,648 29,782
Repairs and maintenance 36,820 30,460
Legal and accounting 54,566 7,351
Interest 101,857 93,331
Administrative and other 29,711 26,726
398,754 317,865
Income from existing assets 5,113 60,731
Income from sold property - 92,019
Net income $ 5,113 $ 152,750
Allocated to
Limited partners, 40,004 units $ 5,113 $ 152,750
General partners, 34 units - -
$ 5,113 $ 152,750
Net income per partnership unit
based on 40,004 Limited Partnership
units outstanding $ .13 $ 3.82
4
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
1995 1994
Operating Activities
Net income $ 5,113 $ 152,750
Adjustments to reconcile net income to
net cash provided by operating activities:
(Increase) in deferred interest income - (8,775)
Amortization of discount on mortgage notes
receivable (22,761) (22,761)
Depreciation 74,453 65,564
Increase in accounts receivable (1,568) (9,070)
Decrease in prepaid expenses 10,943 3,655
Decrease (increase) in replacement reserve 6,827 (150,201)
Decrease in escrow deposits 48,725 6,817
Increase in accounts payable 33,789 24,534
Increase in accrued liabilities to affiliates 502 -
Decrease in accrued liabilities (69,542) (55,446)
Increase in security deposits 2,725 1,295
Decrease (increase) in deferred charges 5,544 (62,120)
Decrease in unfunded distributions payable (540,304) -
Net cash used in
operating activities (445,554) (53,758)
Investing Activities
Capital improvements to real estate (36,441) (27,439)
Net cash used in investing activities (36,441) (27,439)
Financing Activities
Funds received on Hidden Village refinancing - 1,494,000
Payoff of Hidden Village mortgage note payable - (835,008)
Principal payments on mortgage notes
payable (13,756) (63,714)
Net cash (used in) provided by financing
activities (13,756) 595,278
(Decrease) increase in cash and cash equivalents (495,751) 514,081
Cash and cash equivalents - January 1 3,646,756 1,666,688
Cash and cash equivalents - March 31 $ 3,151,005 $ 2,180,769
5
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
The financial statements reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results of the interim periods
presented. It is suggested that these financial statements be read in
conjunction with the financial statements and the notes included in the
Partnership's latest annual report on Form 10-K. The results of operations for
interim periods should not be considered as indicative of the results to be
expected for a full year.
Reclassifications
Certain reclassifications have been made in the 1994 financial statements to
conform to the presentation of 1995 results of operations.
6
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
March 31, 1995
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The current operations of the Partnership are centered on one apartment
complex owned by the Partnership, collections on mortgage notes received
upon sale of Partnership properties and protection of the Partnership's
mortgage interest in such sold properties.
The Partnership's total revenues increased $25,271 or 7% for the three months
ending March 31, 1995 as compared with the same period of the prior year.
Other interest increased $27,498 or 142% due primarily to increased interest
on investments.
Total expenses of the Partnership increased $80,889 or 25% for the period
ended March 31, 1995 as compared to the same period of the prior year. There
was a $9,887 or 14% increase in depreciation and amortization due primarily
to depreciation associated with additional capital improvements at Hidden
Village Apartments. Legal and accounting costs increased $47,215 or 642% due
primarily to legal costs associated with the Eastern Gateway Shopping Center
bankruptcy.
The liquidity of the Partnership is dependent upon the timely receipt of
cash. The Partnership has no credit facilities currently in place. Limited
partners have no obligation to provide additional funds in excess of their
initial cash contributions. In order to protect the Partnership in the event
of a reduction in cash flow, management closely monitors the Partnership's
cash position and, when necessary, will reserve adequate funds to continue
to operate the Partnership. Funds reserved are generally invested in
short-term investments. The Partnership endeavors to maintain adequate
liquidity on a short-term basis as a result of its cash flow and reserve
policies; however, there can be no assurance of continued collections on the
existing mortgage notes or the continued performance of the Partnership's
rental property. Unanticipated collection problems on the existing notes, or
a decline in the performance of the Partnership's rental property, could have
a negative effect upon the long-term liquidity of the Partnership. Funds
generated from operations and mortgage notes receivable on sold properties
have primarily been utilized to meet debt service obligations and, when
possible, distribute funds to the partners. There was no distribution of funds
during the period ending March 31, 1995.
7
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
March 31, 1995
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(b) No report on Form 8-K has been filed during the quarter ended
March 31, 1995.
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.
MULTIVEST REAL ESTATE FUND, LTD.,
Series IV, a Michigan Limited
Partnership,
(Registrant)
By: MULTIVEST REAL ESTATE, INC.
a Delaware corporation
Its: Corporate General Partner
RICHARD L. DAVIS
Date: May 12, 1995
Richard L. Davis
President -
Chief Executive Officer
JOHN J. KAMMERER
Date: May 12, 1995
John J. Kammerer
Principal Accounting Officer