FLORIDA INCOME FUND II, L.P.
INDEX
PAGE NO.
PART I
FINANCIAL INFORMATION
Balance Sheets at March 31 1996
and December 31, 1995. . . . . . . . . . . . . . . . . .2
Statements of Income for the Three
Months Ended March 31, 1996 and 1995 . . . . . . . . . .3
Statements of Cash Flows for the Three
Months Ended March 31, 1996 and 1995 . . . . . . . . . .4
Notes to Financial Statements. . . . . . . . . . . . . .5
Management's Discussion and Analysis of
Financial Condition and Results of Operations. . . . .5-7
PART II
Other Information. . . . . . . . . . . . . . . . . . . .8
PART III
Signatures . . . . . . . . . . . . . . . . . . . . . . .9
COVER LETTER
EXHIBIT 27 - Financial Data Schedule
PAGE 1
PART I - FINANCIAL INFORMATION
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
BALANCE SHEETS (Unaudited)
March 31, Dec. 31,
1996 1995
___________ ___________
ASSETS
CURRENT ASSETS
Cash 1,485,297 147,521
A/R Trade, Net of allowance for 37,897 65,238
doubtful accounts of $55,048
for March 31, 1996 and $38,181
for December 31, 1995)
Notes Receivable 51,086 52,854
Prepaid Expenses and Other 165,085 132,608
___________ ___________
Total Current Assets 1,739,365 398,221
RENTAL PROPERTIES, NET OF
ACCUMULATED DEPRECIATION OF
$3,727,907 AT MARCH 31, 1996 AND
$4,048,938 AT DECEMBER 31, 1995 14,344,196 15,984,294
INTANGIBLE ASSETS
Deferred Loan Costs, Net 33,835 46,425
__________ ___________
TOTAL ASSETS 16,117,396 16,428,940
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES
Current Maturities of Notes
and Mortgages Payable 7,471,576 8,116,010
Accounts Payable 45,223 86,330
Accrued Expenses 73,213 86,724
Customer & Security Deposits 186,088 182,480
Deposit on Sale 100,000 -0-
___________ ___________
TOTAL CURRENT LIABILITIES 7,876,100 8,471,544
NOTES AND MORTGAGES PAYABLE 2,487,189 2,480,347
PARTNERS' CAPITAL
General Partners' Capital (177,950) (173,745)
Limited Partners' Capital 5,570,881 5,650,794
Net Income 361,176 -0-
___________ ___________
TOTAL PARTNERS' EQUITY 5,754,107 5,477,049
TOTAL LIABILITIES
AND PARTNERS' CAPITAL 16,117,396 16,428,940
See Accompanying Notes to the Financial Statements
PAGE 2
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
STATEMENTS OF INCOME
(Unaudited)
For Three Months Ended
03/31/96 03/31/95
_________ _________
REVENUES:
Sales Proceeds 1,950,000 -0-
Rental Income 670,354 732,327
Interest Income 826 1,236
_________ _______
Total Revenues 2,621,180 733,563
EXPENSES:
Cost of Sales & Closing Costs 1,601,791 -0-
Property Operating Expenses 249,186 248,320
Real Estate Taxes 50,571 55,089
Interest Expense 229,131 253,236
Depreciation 118,308 133,699
Amortization 11,017 14,737
_________ _______
Total Expenses 2,260,004 705,081
NET INCOME 361,176 28,482
See accompanying Notes to the Financial Statements
PAGE 3
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Unaudited)
For Three Months Ended
03/31/96 03/31/95
________ ________
Cash Flows From Operating Activities:
Net Income 361,176 28,483
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation & Amortization 129,325 148,436
Cost of Sales 1,521,791 -0-
(Increase) decrease in receivables 29,109 16,294
(Increase) decrease in prepaid
expenses and other (30,904) (31,305)
Increase (decrease) accounts payable
and accrued expenses (54,618) (61,035)
Increase (decrease) in customer
and security deposits 3,608 12,655
Net cash flow provided by operating _________ _________
activities 1,959,487 113,528
Cash flows from investing activities:
Improvements to rental properties -0- (87,400)
__________ _________
Net cash used in investing activities -0- (87,400)
Cash flows from financing activities:
Repayments of long-term borrowings (637,592) (56,141)
Partner distribution paid (84,119) (56,079)
Deposit on Sale 100,000 -0-
__________ _________
Net cash flows used by financing activities (621,711) (112,220)
Net increase (decrease) in cash 1,337,776 (86,092)
Cash at beginning of year 147,521 93,321
Cash at March 31 1,485,297 7,229
See accompanying Notes to the Financial Statements
PAGE 4
FLORIDA INCOME FUND II, LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1996
(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, 1995, 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, 1996, and March 31,
1995, the Partnership incurred $5,130 and $47,907 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 $7,800 were incurred during the first
quarter of 1996. This compares to $78,863 of costs that were
incurred during the first quarter of 1995.
NOTE 3 - BALANCE SHEET
The Balance Sheet at December 31, 1995, 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, 1996, was $1,485,297. This compares to its
cash position of $147,521 at December 31, 1995. At March 31, 1995,
the Partnership's cash position, including interest bearing
deposits, was $7,229.
PAGE 5
Liquidity - Continued
The increase in cash between December 31, 1995, and March 31, 1996,
was due primarily to cash provided by operations of $1,959,487,
which includes the sale of Heritage Square Shopping Center on Marco
Island as previously reported in an 8-K filed on January 26, 1996,
principal repayments of $637,592 and partnership distributions paid
of $84,119.
The Partnership's total investment in properties for its portfolio
at March 31, 1996, was $18,072,103. This compares to its total
property investment at December 31, 1995, of $20,033,232 and
$19,977,233 at March 31, 1995. This decline resulted primarily
from the sale of Heritage Square Shopping Center.
A pending sale of Town Center Shopping Center, scheduled for the
second quarter will result in a material reduction in both
partnership assets, partnership debt and partnership liquidity.
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, 1996, was
$9,958,765. This compares to debt outstanding December 31, 1995,
of $10,596,357. The $637,592 decrease during the first three
months was due to principal pay downs of $637,592. The Partnership
had $10,760,385 of outstanding debt at March 31, 1995.
In April 1996 the Partnership has a loan in the amount of
$1,686,280 which will mature. This loan is secured by a first
mortgage on Manatee West. Management is negotiating a partial
paydown of approximately $1,200,000 of this loan from available
cash with the balance of the loan due in June 1996. Management
believes it will be successful in accomplishing this, based upon
oral commitments by the lender. The remaining balance of that loan
will then be paid from proceeds of the pending sale of Town Center
in the second quarter.
The Partnership has a loan which comes due in September 1996 in the
amount of $5,773,296. The loan is secured by a first mortgage on
Town Center and Broadway Medical Center. Management intends to
satisfy this obligation with the proceeds from the sale of Town
Center.
PAGE 6
Results of Operations
As of March 31, 1996, the occupancy percentages for the Fund's
properties were as follows: Broadway Medical Center, 67%, Marco
Town Center Mall, 82%, Manatee West Shopping Center, 68%, and
Pinebrook Commons, 85%.
For the three months ended March 31, 1996, rental income decreased
$61,973 as compared to the same period a year ago. The decrease
was attributable to selling Heritage Square during the three months
ended March 31, 1996, and increased vacancies in other assets as
compared to the same period one year ago.
For the three months ended March 31, 1996, interest income
decreased by $410.
Property expenses increased by $866 from a year ago due to
increased maintenance costs primarily at Town Center and final
owner expenses associated with the sale of Heritage Square.
Real estate taxes have decreased to reflect anticipated assessments
for the year and the decrease due to the sale of Heritage Square.
Interest expense has decreased $24,105 for the three month period
ended March 31, 1996, as compared to a year ago. This decrease is
due to the partnership's debt decreasing from $10,596,357 at
December 31, 1995, to $9,958,765 as of March 31, 1996. The
partnership's debt as of March 31, 1995, was $10,760,385.
Depreciation and amortization have decreased $19,111 due to some
costs being fully amortized in 1995.
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)
5/6/96 Lawrence A. Raimondi
President and Director, and CEO
Mariner Capital Management, Inc.
(Principal Executive Officer)
(SIGNATURE)
5/6/96 Joe K. Blacketer
Secretary/Treasurer
Mariner Capital Management, Inc.
(Principal Financial and
Accounting Officer)
(SIGNATURE)
PAGE 9