FLORIDA INCOME FUND II, L.P.
INDEX
PAGE NO.
PART I
FINANCIAL INFORMATION
Balance Sheets at March 31 1995
and December 31, 1994. . . . . . . . . . . . . . . . . .2
Statements of Income for the Three
Months Ended March 31, 1995 and 1994 . . . . . . . . . .3
Statements of Cash Flows for the Three
Months Ended March 31, 1995 and 1994 . . . . . . . . . .4
Notes to Financial Statements. . . . . . . . . . . . . .5
Management's Discussion and Analysis of
Financial Condition and Results of Operations. . . . .5-7
PART II - OTHER INFORMATION
Other Information. . . . . . . . . . . . . . . . . . . .8
PART III - SIGNATURES
Signatures . . . . . . . . . . . . . . . . . . . . . . .9
COVER PAGE
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
PAGE 1
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
March 31, Dec. 31,
1995 1994
___________ ___________
ASSETS
CURRENT ASSETS
Cash 7,229 93,321
A/R Trade, Net of allowance for 80,108 87,049
doubtful accounts of $23,535
for March 31, 1995 and $23,535
for December 31, 1994)
Notes Receivable 79,366 88,719
Prepaid Expenses and Other 227,120 195,815
___________ ___________
Total Current Assets 393,823 464,904
RENTAL PROPERTIES, NET OF
ACCUMULATED DEPRECIATION OF
$3,648,372 AT MARCH 31, 1995 AND
$3,514,674 AT DECEMBER 31, 1994 16,328,861 16,375,160
INTANGIBLE ASSETS
Deferred Loan Costs, Net 69,090 83,827
__________ __________
TOTAL ASSETS 16,791,774 16,923,891
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Current Maturities of Notes
and Mortgages Payable 8,241,792 6,606,330
Accounts Payable 85,324 104,702
Accrued Expenses 78,717 120,374
Customer & Security Deposits 209,251 196,596
___________ ___________
TOTAL CURRENT LIABILITIES 8,615,084 7,028,002
NOTES AND MORTGAGES PAYABLE 2,518,593 4,210,196
PARTNERS' CAPITAL
General Partners' Capital (166,116) (163,312)
Limited Partners' Capital 5,795,730 5,849,005
Net Income 28,483 -0-
___________ ___________
TOTAL PARTNERS' EQUITY 5,658,097 5,685,693
TOTAL LIABILITIES
AND PARTNERS' CAPITAL 16,791,774 16,923,891
See Accompanying Notes to the Financial Statements
PAGE 2
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
STATEMENTS OF INCOME
(Unaudited)
For Three Months Ended
03/31/95 03/31/94
_________ _________
REVENUES:
Rental Income 732,327 828,464
Interest Income 1,236 292
_______ _______
Total Revenues 733,563 828,756
EXPENSES:
Property Operating
Expenses 248,320 242,429
Real Estate Taxes 55,089 65,961
Interest Expense 253,236 282,434
Depreciation 133,699 147,524
Amortization 14,737 14,737
_______ _______
Total Expenses 705,081 753,085
NET INCOME 28,482 75,671
See accompanying Notes to the Financial Statements
PAGE 3
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Unaudited)
For Three Months Ended
03/31/95 03/31/94
________ ________
Cash Flows From Operating Activities:
Net Income 28,483 75,671
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation & Amortization 148,436 162,261
(Increase) decrease in receivables 16,294 ( 11,487)
(Increase) decrease in prepaid
expenses and other ( 31,305) ( 37,896)
Increase (decrease) accounts payable
and accrued expenses ( 61,035) 119,427
Increase (decrease) in customer
and security deposits 12,655 ( 3,975)
Net cash flow provided by operating _________ _________
activities 113,528 304,001
Cash flows from investing activities:
Improvements to rental properties ( 87,400) ( 36,510)
_________ _________
Net cash used in investing activities ( 87,400) ( 36,510)
Cash flows from financing activities:
Repayments of long-term borrowings ( 56,141) ( 67,787)
Partner distribution paid ( 56,079) (168,237)
Loan origination fees paid -0- ( 4,004)
Proceeds from short term borrowings -0- -0-
Repayment of short term borrowings -0- -0-
_________ _________
Net cash flows used by financing activities (112,220) (240,028)
Net increase (decrease) in cash ( 86,092) 27,463
Cash at beginning of year 93,321 91,576
Cash at March 31 7,229 119,039
See accompanying Notes to the Financial Statements
PAGE 4
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in
accordance with the instructions to Form 10-Q and therefore do not
include all disclosures necessary for fair presentation of the
Partnership's financial position, results of operations and
statements of cash flows in conformity with generally accepted
accounting principles, as set forth in the Partnership's Form 10-K
for the period ended December 31, 1994, or any other interim
period. In management's opinion, all adjustments have been made to
the financial statements necessary for a fair presentation of the
interim periods presented.
NOTE 2 - RELATED PARTY TRANSACTIONS
During the three month period ended March 31, 1995, and March 31,
1994, the Partnership incurred $47,907 and $43,490 in property
management fees paid to Mariner Capital Management, Inc., the
Managing General Partner, in accordance with the Partnership
Agreement. These expenses are included in property expenses. The
General Partners and their affiliates are also entitled to
reimbursement of costs (including amounts of any salaries paid to
employees or its affiliates) directly attributable to the operation
of the Partnership that could have been provided by independent
parties. Costs amounting to $78,863 were incurred during the first
quarter of 1995. This compares to $84,405 of costs that were
incurred during the first quarter of 1994.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1994, has been taken from the
audited Financial Statements at that date.
NOTE 4 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION RESULTS OF OPERATIONS
Liquidity
The Partnership's cash position, including interest bearing
deposits at March 31, 1995, was $7,229. This compares to its cash
position of $93,321 at December 31, 1994. At March 31, 1994, the
Partnership's cash position, including interest bearing deposits,
was $119,039.
PAGE 5
Liquidity - Continued
The decrease in cash between December 31, 1994, and March 31, 1995,
was due primarily to cash provided by operations of $113,528,
principal repayments of $56,141, payments for rental property
improvements of $87,400 and partnership distributions paid of
$56,079.
The Partnership's total investment in properties for its portfolio
at March 31, 1995, was $19,977,233. This compares to its total
property investment at December 31, 1994, of $19,889,834 and
$21,602,680 at March 31, 1994. Other than as discussed herein,
there are no known trends, demands, commitments, events or
uncertainties that in management's opinion will result or are
reasonably likely to result in the registrant's liquidity
increasing or decreasing in any material way.
Capital Resources
The Partnership's outstanding debt as of March 31, 1995, was
$10,760,385. This compares to debt outstanding December 31, 1994,
of $10,816,526. The $56,141 decrease during the first three months
was due to principal pay downs of $56,141. The Partnership had
$12,308,163 of outstanding debt at March 31, 1994.
In September 1995, the Partnership has two loans which come due.
The first loan in the amount of $5,832,554 is secured by a first
mortgage on Town Center, Heritage Square and Broadway Medical
Center. The second mortgage on these properties in the amount of
$643,022 will also come due in September 1995. Management intends
to refinance these loans and believes it will be successful for the
following reasons: The loans have a low loan to value ratio, the
properties continue to experience high occupancy and there is
sufficient cash flow to meet the debt service obligation.
Results of Operations
As of March 31, 1995, the occupancy percentages for the Fund's
properties were as follows: Broadway Medical Center, 100%, Marco
Town Center Mall, 90%, Heritage Square Shopping Center, 92%,
Manatee West Shopping Center, 75%, and Pinebrook Commons, 97%.
For the three months ended March 31, 1995, rental income decreased
$96,137 as compared to the same period one year ago. The decrease
in rental income was attributed to Broadway Center decreasing $795,
Laurel Medical Center decreasing $61,084, Marco Town Center Mall
increasing $4,822, Manatee West decreasing $51,995, Heritage Square
decreasing $8,727 and Pinebrook Commons increasing $21,642.
PAGE 6
Results of Operations - Continued
For the three months ended March 31, 1995, interest income
increased by $944. Rental revenue increases were attributable to
increases in the CPI, rent escalator clauses and additional tenants
occupying the spaces. Heritage Square and Manatee West's rent
decreases were due to vacancies occurring in those centers. The
rental decrease at Laurel Medical Center was due to the Partnership
not having this property in 1995, whereas the Partnership had the
property in the first quarter of 1994.
Property expenses increased by $5,891 from a year ago due to
increased maintenance costs primarily at Town Center and Pinebrook
Commons. These increases were partially offset by the costs of
Laurel Center which were not incurred in 1995.
Real estate taxes have decreased to reflect anticipated assessments
for the year and the decrease due to Laurel Center not belonging to
the Partnership portfolio.
Interest expense has decreased $29,198 for the three month period
ended March 31, 1995, as compared to a year ago. This decrease is
due to the partnership's debt decreasing from $10,816,526 at
December 31, 1994, to $10,760,385 as of March 31, 1995. The
partnership also did not make mortgage payments on the Laurel
Medical Center loan in the first quarter of 1995. The
partnership's debt as of March 31, 1994, was $12,308,163.
Depreciation and amortization have decreased $13,825 due to some
costs being fully amortized in 1994.
During the first quarter of 1993, Tandy Corporation closed their
9,900 square foot McDuff's Electronics store located in Pinebrook
Commons Shopping Center. This is a result of their corporate
decision to close approximately 100 stores. Management and Tandy
have agreed to settle the outstanding future rental obligation,
with Tandy agreeing to pay 15 months rent in order to terminate
their lease obligations. The amount of the settlement was
$114,468. The lender on the property, Allstate Life Insurance
Company, has agreed to this settlement. These funds have been
placed into escrow to fund future capital improvements, pay leasing
commissions and for future loan payments. As of March 31, 1995,
the amount remaining in escrow is $40,136.
Management had signed a lease for 4,643 square feet of vacant space
at Pinebrook Commons. The tenant's lease obligation began July 1,
1994. However, during the third quarter of 1994, the tenant did
not complete it's build out and has defaulted on it's lease
obligation. The fund is attempting to recover funds in it's legal
action against the tenant. The space has been re-leased and it is
anticipated that the build-out will be completed in the second
quarter of 1995. It is anticipated that the remaining escrow money
will be released by the lender when the property shows a positive
cash flow after debt.
PAGE 7
PART II
OTHER INFORMATION
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
ITEM 1. LEGAL PROCEEDINGS
None
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 MATERIALLY IMPORTANT EVENTS
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
None
(B) REPORTS ON FORM 8-K
None
PAGE 8
PART III
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.
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
MARINER CAPITAL MANAGEMENT, INC.
MANAGING GENERAL PARTNER
(Registrant)
5/5/95 Lawrence A. Raimondi
President and Director, and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
(SIGNATURE)
5/5/95 Michael J. Scullion
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and
Accounting Officer)
(SIGNATURE)
PAGE 9