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, 1996 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, 1996
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Statements of Financial Condition, as of March 31, 1996
(Unaudited) and December 31, 1995.................................3
Statements of Operations, for the three months
ended March 31, 1996 and 1995 (Unaudited).........................4
Statements of Cash Flows, for the three months ended
March 31, 1996 and 1995 (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,
1996 1995
(Unaudited)
ASSETS
Investment in real estate
Land $ 144,581 $ 144,581
Land improvements 51,425 51,425
Buildings and improvements 3,607,358 3,469,704
3,803,364 3,665,710
Less accumulated depreciation 2,339,899 2,264,798
Net investment in real estate 1,463,465 1,400,912
Purchase money mortgage note receivable 1,450,000 1,450,000
Allowance for loss on note receivable (525,000) (525,000)
Deferred gain on sales of real estate (518,800) (518,800)
406,200 406,200
Other assets
Cash 4,660 24,175
Investments, at cost which
approximates market 3,253,250 4,359,300
Accounts receivable 15,977 16,369
Deferred interest receivable 174,488 174,488
Prepaid insurance 16,776 26,720
Replacement reserve 74,204 112,450
Escrow deposits and other assets 149,933 107,140
Deferred charges net of accumulated
amortization of $24,966 and $21,970,
respectively 282,027 285,023
Total other assets 3,971,315 5,105,665
Total assets $ 5,840,980 $ 6,912,777
LIABILITIES AND PARTNERS' CAPITAL
Mortgage notes payable $ 1,469,912 $ 1,472,561
Accounts payable 30,013 10,510
Accrued liabilities to affiliates 16,869 16,691
Unfunded distributions payable 480,158 -
Accrued liabilities 171,737 158,276
Tenants' security deposits and other
liabilities 32,025 31,776
Total liabilities 2,200,714 1,689,814
Partners' capital
Limited Partners, 40,004 units 3,624,871 5,207,568
General Partner, 34 units 15,395 15,395
Total Partner's capital 3,640,266 5,222,963
Total liabilities and $ 5,840,980 $ 6,912,777
Partners' capital
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1996 1995
Revenues
Rents and other tenant charges $ 219,568 $ 205,707
Interest on mortgage notes receivable - 38,001
Other interest 48,622 46,898
268,190 290,606
Expenses
Maintenance, custodial salaries
and related expenses 21,224 19,116
Real estate management fees 12,510 11,959
Mortgage servicing fees 900 2,253
Property taxes 19,230 17,256
Depreciation and amortization 78,096 77,449
Insurance 7,875 9,096
Utilities 32,913 33,648
Repairs and maintenance 29,214 36,820
Legal and accounting 5,489 54,566
Interest 34,861 32,173
Administrative and other 28,417 29,711
270,729 324,047
Loss from existing assets (2,539) (33,441)
Income from sold property - 38,554
Net income (loss) $ (2,539) $ 5,113
Allocated to
Limited partners, 40,004 units (2,539) 5,113
General partners, 34 units - -
$ (2,539) $ 5,113
Net income (loss) per partnership unit
based on 40,004 Limited Partnership
units outstanding $ (.06) $ .13
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
1996 1995
Operating Activities
Net income (loss) $ (2,539) $ 5,113
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of discount on mortgage notes
receivable - (22,761)
Depreciation 75,101 74,453
Decrease (increase) in accounts receivable 392 (1,568)
Decrease in prepaid expenses 9,944 10,943
Decrease in replacement reserve 38,246 6,827
(Increase) decrease in escrow deposits (42,793) 48,725
Increase in accounts payable 19,503 33,789
(Increase) decrease in accrued liabilities
to affiliates 178 502
Decrease in accrued liabilities 13,461 (69,542)
Increase in security deposits 249 2,725
Decrease in deferred charges 2,996 5,544
(Increase) decrease in unfunded
distributions payable 480,158 (540,304)
Net cash provided by (used in)
operating activities 594,896 (445,554)
Investing Activities
Capital improvements to real estate (137,654) (36,441)
Net cash used in investing activities (137,654) (36,441)
Financing Activities
Distributions to Partners (1,580,158) -
Principal payments on mortgage notes
payable (2,649) (13,756)
Net cash used in financing activities (1,582,807) (13,756)
Decrease in cash and cash equivalents (1,125,565) (495,751)
Cash and cash equivalents - January 1 4,383,475 3,646,756
Cash and cash equivalents - March 31 $ 3,257,910 $ 3,151,005
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 1995 financial statements to
conform to the presentation of 1996 results of operations.
Subsequent event
Following dismissal of the bankruptcy case regarding Eastern Gateway Shopping
Center, the Partnership re-opened its case in the Wayne County Superior Court in
Richmond, Indiana to foreclose on the property and a receiver was appointed to
operate the property. On May 8, 1996, the Partnership took possession of the
property as a result of foreclosure proceedings.
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
March 31, 1996
ITEM 2. MANAGEMENT'S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The current operations of the Partnership are centered on Hidden Village
Apartments, the one apartment complex owned by the Partnership, collections
on a mortgage note received upon sale of a Partnership property, and protection
of the Partnership's mortgage interest in such sold property.
On March 22, 1994 and again on April 6, 1994, the Partnership sent a default
notice to the owner of Eastern Gateway Shopping Center for, among other things,
failing to pay, when due, the real estate taxes on the property as required
under the mortgage documents. When the owner failed to cure the defaults within
the time period required by the mortgage documents, the debt was automatically
accelerated without further notice. The Partnership then exercised its remedies
under the mortgage documents by commencing foreclosure proceedings. In
connection with that process, the Partnership petitioned the Wayne County
Superior Court in Richmond, Indiana for a hearing to appoint a receiver for the
property. The hearing was scheduled for August 3, 1994. On that date, shortly
before the hearing, the owner of the property filed a Voluntary Petition in
Bankruptcy in the United States Bankruptcy Court for the Southern District of
Indiana. The Partnership's petition for an appointment of a receiver and the
related foreclosure proceedings were stayed by the bankruptcy filing.
Eastern Gateway Shopping Center remained under the jurisdiction of the
Bankruptcy Court until November 2, 1995, at which time the case was dismissed.
While in bankruptcy, the owner of the property tried unsuccessfully on more
than one occasion to sell the property. In addition, the owner was unable to
present a Plan of Reorganization acceptable to the Court or the owner's
creditors.
Following dismissal of the bankruptcy case, the Partnership re-opened its case
in the Wayne County Superior Court in Richmond, Indiana to foreclose on the
property and a receiver was appointed to operate the property. On May 8, 1996,
the Partnership took possession of the property as a result of foreclosure
proceedings.
The Partnership's total revenues decreased $22,416 or 8% for the three months
ending March 31, 1996 as compared with the same period of the prior year.
Interest on mortgage notes receivable decreased $38,001 as a result of the
non-payment status of the Eastern Gateway Shopping Center note receivable.
There was a $13,861 or 7% increase in rents and other tenant charges due
primarily to increased occupancy at Hidden Village Apartments.
Total expenses of the Partnership decreased $53,318 or 16% for the period ended
March 31, 1996 as compared to the same period of the prior year. Legal and
accounting costs decreased $49,077 or 90% due primarily to legal costs during
1995 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 note or the
continued performance of the Partnership's rental property. Unanticipated
collection problems on the existing note, 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
the mortgage note receivable on the sold property have primarily been utilized
to meet debt service obligations and, when possible, distribute funds to the
partners. Funds in excess of Partnership reserves resulted in distributions
totaling $1,580,158 or $39.50 per partnership unit being paid during the
quarter ended March 31, 1996.
MULTIVEST REAL ESTATE FUND, LTD., SERIES IV
(a Michigan limited partnership)
March 31, 1996
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, 1996.
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
Date: May 14, 1996 RICHARD L. DAVIS
Richard L. Davis
President -
Chief Executive Officer
Date: May 14, 1996 JOHN J. KAMMERER
John J. Kammerer
Principal Accounting Officer