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 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 0-6701
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
June 30, 1995
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Financial Condition, as of June 30, 1995
and December 31, 1994 (Unaudited).............................3
Statements of Operations, for the three months and the six months
ended June 30, 1995 and 1994 (Unaudited)......................4
Statements of Cash Flows, for the six months ended
June 30, 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)
June 30, December 31,
1995 1994
ASSETS (Unaudited)
Investment in real estate
Land $ 144,581 $ 144,581
Land improvements 51,425 51,425
Buildings and improvements 3,444,674 3,391,354
3,640,680 3,587,360
Less accumulated depreciation 2,116,365 1,968,393
Net investment in real estate 1,524,315 1,618,967
Wrap-around mortgage notes receivable 5,043,750 5,043,750
Purchase money mortgage note receivable 1,450,000 1,450,000
Less unamortized discount (15,174) (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)
2,969,708 2,924,186
Other assets
Cash 4,936 27,031
Investments, at cost which
approximates market 2,790,875 3,619,725
Accounts receivable 39,571 37,976
Deferred interest receivable 174,488 174,488
Prepaid insurance 8,155 30,051
Replacement reserve 124,582 105,114
Escrow deposits and other assets 77,759 115,770
Deferred charges net of accumulated
amortization of $100,893 and
$89,806, respectively 140,216 151,303
Total other assets 3,360,582 4,261,458
Total assets $ 7,854,605 $ 8,804,611
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 3,946,827 $ 3,974,353
Accounts payable 35,617 31,249
Accrued liabilities to affiliates 114,078 471,421
Unfunded distributions payable - 540,304
Accrued liabilities 111,548 152,401
Tenants' security deposits and other
liabilities 30,201 26,826
Total liabilities 4,238,271 5,196,554
Partners' capital
Limited Partners, 40,004 units 3,600,939 3,592,662
General Partner, 34 units 15,395 15,395
Total Partners' capital 3,616,334 3,608,057
Total liabilities and
Partners' capital $ 7,854,605 $ 8,804,611
3
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Revenues
Interest on wrap-around
mortgage notes receivable $ 151,262 $ 151,262 $ 302,524 $ 302,524
Rents and other tenant charges 209,072 205,330 414,779 413,265
Other income 47,879 29,203 94,776 48,601
408,213 385,795 812,079 764,390
Expenses
Maintenance, custodial salaries
and related expenses 18,237 17,576 37,354 36,561
Real estate management fee 11,743 11,535 23,702 23,772
Mortgage servicing fee 2,929 2,929 7,658 6,758
Property taxes 17,256 17,256 34,512 34,512
Depreciation and amortization 79,063 73,997 159,059 144,106
Insurance 9,096 7,800 18,192 15,600
Utilities 31,119 31,505 64,767 61,287
Repairs and maintenance 42,325 37,479 79,145 67,940
Legal and accounting 48,091 10,738 102,657 18,089
Interest 103,946 98,000 205,803 191,330
Administrative and other 41,244 42,788 70,953 69,512
405,049 351,603 803,802 669,467
Income from existing assets 3,164 34,192 8,277 94,923
Income from disposed property - 94,314 - 186,333
Net income $ 3,164 $ 128,506 $ 8,277 $ 281,256
Allocated to
Limited partners, 40,004 units $ 3,164 $ 128,506 $ 8,277 $ 281,256
General partners, 34 units - - - -
$ 3,164 $ 128,506 $ 8,277 $ 281,256
Net income per limited
partnership unit based on
40,004 average units
outstanding $ .08 $ 3.21 $ .21 $ 7.03
4
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months
Ended June 30,
1995 1994
Operating Activities
Net income $ 8,277 $ 281,256
Adjustments to reconcile net income to
net cash provided by operating activities:
Increase in deferred interest income - (17,550)
Amortization of discount on mortgage notes
receivable (45,522) (45,522)
Depreciation 147,972 135,017
(Increase) in accounts receivable (1,595) (5,582)
Decrease in prepaid expenses 21,896 12,948
Increase in replacement reserve (19,468) (150,201)
Decrease (increase) in escrow deposits 38,011 (37,582)
Decrease (increase) in deferred charges 11,087 (62,486)
Increase in accounts payable 4,368 8,341
Decrease in accrued liabilities (40,853) (37,930)
Decrease in accrued liabilities to affiliates (357,343) -
Decrease in unfunded distributions payable (540,304) -
Increase in security deposits 3,375 2,845
Net cash (used in) provided by operating
activities (770,099) 83,554
Investing Activities
Capital improvements to real estate (53,320) (71,360)
Net cash used in investing activities (53,320) (71,360)
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 (27,526) (123,102)
Net cash (used in) provided by
financing activities (27,526) 535,890
(Decrease) increase in cash and cash equivalents (850,945) 548,084
Cash and cash equivalents - January 1 3,646,756 1,666,688
Cash and cash equivalents - June 30 $ 2,795,811 $ 2,214,772
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 normal and recurring
in nature and, 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.
6
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
June 30, 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
(Hidden Village Apartments, located in Irving, Texas) owned by the Partnership,
collections on mortgage notes received upon sale of certain Partnership
properties and protection of the Partnership's mortgage interest in such
properties.
The Partnership's total revenues increased $22,418 or 6% for the three months,
and $47,689 or 6% for the six months ended June 30, 1995 as compared with the
same periods of the prior year. Other income increased $18,676 or 64%, and
$46,175 or 95% for the three and six month periods ended June 30, 1995,
respectively, due primarily to increased interest earnings on investments.
Total expenses of the Partnership increased $53,446 or 15% for the quarter, and
$134,335 or 20% for the six months ended June 30, 1995 as compared to the same
periods of the prior year. Repair and maintenance costs increased $4,846 or 13%
for the quarter, and $11,205 or 16% for the six month period ended June 30,
1995, in an effort to maintain and enhance the physical condition of Hidden
Village Apartments. Legal and accounting costs increased $37,353 or 348%, and
$84,568 or 468% for the three and six month periods, respectively, 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
through 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. 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, to distribute funds to the partners. There was no distribution of
funds for the period ended June 30, 1995.
7
MULTIVEST REAL ESTATE FUND, LTD. SERIES IV
(a Michigan limited partnership)
June 30, 1995
PART II - OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits:
(i) Exhibit 27 - Financial Data Schedule
(b) No report on Form 8-K has been filed during the quarter ended June 30,
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: August 14, 1995
Richard L. Davis
President -
Chief Executive Officer
JOHN J. KAMMERER
Date: August 14, 1995
John J. Kammerer
Principal Accounting Officer