November 13, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Re: Boston Financial Tax Credit Fund VIII, A Limited Partnership
Report on Form 10-Q Edgar for Quarter Ended September 30, 1996
File No. 0-26522
Dear Sir/Madam:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Very truly yours,
/s/Marie D. Reynolds
Marie D. Reynolds
Assistant Controller
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)of the Securities Exchange Act of 1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
--------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1996 Commission file number 0-26522
Boston Financial Tax Credit Fund VIII, A Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts 04-3205879
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
101 Arch Street, Boston, Massachusetts 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-3911
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 reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets - September 30, 1996 (Unaudited)
and March 31, 1996 1
Statements of Operations (Unaudited) - For the Three and Six
Months Ended September 30, 1996 and 1995 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Six Months Ended September 30, 1996 3
Statements of Cash Flows (Unaudited) - For the Six
Months Ended September 30, 1996 and 1995 4
Notes to Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II - OTHER INFORMATION
Items 1-6 10
SIGNATURE 11
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
BALANCE SHEETS
September 30, March 31,
1996 1996
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 511,978 $ 71,715
Other current assets 15,609 33,038
-------------- ------------
Total current assets 527,587 104,753
Investments in Local Limited Partnerships (Note 2) 27,980,029 26,064,146
Restricted cash 489,998 1,369,364
Marketable securities, at fair value (Note 1) 1,228,826 3,709,881
Organization costs, net of accumulated
amortization of $25,833 and $20,833
as of September 30 and March 31, 1996, respectively 24,167 29,167
-------------- ------------
Total Assets $ 30,250,607 $ 31,277,311
============== ============
Liabilities and Partners' Equity
Current liabilities:
Accounts payable to affiliate $ 91,249 $67,175
Accrued expenses 20,100 35,184
-------------- ------------
Total current liabilities 111,349 102,359
-------------- ------------
General, Initial and Investor Limited Partners' Equity 30,147,370 31,175,486
Net unrealized losses on marketable securities (8,112) (534)
-------------- ------------
Total Partners' Equity 30,139,258 31,174,952
-------------- ------------
Total Liabilities and Partners' Equity $ 30,250,607 $ 31,277,311
============== ============
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Six Months Ended September 30, 1996 and 1995
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
------------------ ----------------- ----------------- -----------------
Revenue:
Investment $ 39,766 $ 175,827 $ 41,652 $ 370,247
Other (18,603) 300 (1,869) 450
------------ ---------- ------------- ---------
Total Revenue 21,163 176,127 39,783 370,697
------------ ---------- ------------- ---------
Expenses:
Asset management fees,
related party 47,931 46,853 96,002 93,706
General and administrative
expenses (includes
reimbursements to affiliates
in the amounts of $58,937
and $51,631 in 1996 and
1995, respectively) 39,148 46,349 109,239 95,877
Amortization 5,967 5,668 15,954 10,812
------------ ---------- ------------- ---------
Total Expenses 93,046 98,870 221,195 200,395
------------ ---------- ------------- ---------
Income (loss) before equity in losses
of Local Limited Partnership (71,883) 77,257 (181,412) 170,302
Equity in losses of Local
Limited Partnerships (672,494) (123,054) (846,704) (114,163)
------------ ---------- ------------- ---------
Net Income (Loss) $ (744,377) $ (45,797) $ (1,028,116) $ 56,139
============ ========== ============= =========
Net Income (Loss) allocated
To General Partners $ (7,444) $ (458) $ (10,281) $ 561
To Limited Partners (736,933) (45,339) (1,017,835) 55,578
------------ ---------- ------------- ---------
$ (744,377) $ (45,797) $ (1,028,116) $ 56,139
============ ========== ============= =========
Net Income (Loss) per Limited
Partnership Unit (36,497 Units) $ (20.19) $ (1.24) $ (27.88) $1.52
======== ======= ======== =====
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Six Months Ended September 30, 1996
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
Balance at March 31, 1996 $ (4,592) $ 100 $ 31,179,978 $ (534) $ 31,174,952
Net change in net unrealized
losses on marketable securities
available for sale - - - (7,578) (7,578)
Net Loss (10,281) - (1,017,835) - (1,028,116)
------------ --------- ------------ -------- ------------
Balance at September 30, 1996 $ (14,873) $ 100 $ 30,162,143 $ (8,112) $ 30,139,258
============ ========= ============ ======== ============
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended September 30, 1996 and 1995
1996 1995
-------------- ---------
Net cash used for operating activities $ (219,993) $ (135,001)
------------- -------------
Cash flows from investing activities:
Investment in Local Limited Partnerships (2,777,062) (3,804,608)
Restricted cash 879,366 -
Cash distributions received from Local
Limited Partnerships 4,409 -
Purchases of marketable securities (3,722,909) (2,227,649)
Proceeds from sales and maturities of
marketable securities 6,277,340 2,340,000
Payment of acquisition expenses (888) (57,018)
------------- -------------
Net cash provided by (used for) investing activities 660,256 (3,749,275)
------------- -------------
Cash flows from financing activities:
Refund of organizational and offering expenses - 7,017
------------- -------------
Net cash provided by financing activities - 7,017
------------- -------------
Net increase (decrease) in cash and cash equivalents 440,263 (3,877,259)
Cash and cash equivalents, beginning of period 71,715 10,495,010
------------- -------------
Cash and cash equivalents, end of period $ 511,978 $ 6,617,751
============= =============
The accompanying notes are an integral part of these financial statements.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements (Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Partnership's 10-K for the year
ended March 31, 1996. In the opinion of management, these financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the Partnership's financial position and results of
operations. The results of operations for the periods may not be indicative of
the results to be expected for the year.
1. Marketable Securities
A summary of marketable securities is as follows:
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
Debt securities issued by the
US Treasury and
other US government
corporations and agencies $ 1,138,021 $ - $ (8,120) $ 1,129,901
Other debt securities 98,917 8 - 98,925
------------ -------- ---------- ------------
Marketable securities
at September 30, 1996 $ 1,236,938 $ 8 $ (8,120) $ 1,228,826
============ ======== ========== ============
Debt securities issued by the
US Treasury $ 1,465,038 $ 195 $ (2,839) $ 1,462,394
Other debt securities 2,245,377 2,500 (390) 2,247,487
------------ -------- ---------- ------------
Marketable securities
at March 31, 1996 $ 3,710,415 $ 2,695 $ (3,229) $ 3,709,881
============ ======== ========== ============
The contractual maturities at September 30, 1996 are as follows:
Fair
Cost Value
Due in one year or less $ 298,581 $ 298,487
Due in one year to five years 938,357 930,339
------------ ------------
$ 1,236,938 $ 1,228,826
============ ============
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from the sales of fixed
maturities were approximately $6,277,000 and $2,340,000 for the six months ended
September 30, 1996 and 1995, respectively. Included in investment income are
gross gains of $82,829 and $41,243 for the six months ended September 30, 1996
and 1995, respectively, and gross losses of $1,875 for the six months ended
September 30, 1996.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements (Unaudited) (continued)
2. Investments in Local Limited Partnerships
The Fund has acquired an interest in ten Local Limited Partnerships which own
and operate multi-family housing complexes. The Fund, as Investor Limited
Partner, pursuant to the Local Limited Partnership Agreements, has generally
acquired a 99% interest in the profits, losses, tax credits and cash flows from
operations of the Local Limited Partnerships, with the exception of Springwood,
Hemlock Ridge and West End Place, which are 79.20%, 77% and 90%, respectively.
An affiliate of the General Partner owns the remaining 19.80% Limited Partner
interest in Springwood. Upon dissolution, proceeds will be distributed according
to the partnership agreements.
The following is a summary of Investments in Local Limited Partnerships:
September 30,
1996
(Unaudited)
Capital Contributions paid to Local Limited
Partnerships $ 28,873,935
Cumulative equity in losses of Local Limited Partnerships (1,889,412)
Cumulative cash distributions received from Local
Limited Partnerships (17,732)
Investment in Local Limited Partnerships before adjustments 26,966,791
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (34,772)
-------------
Investments in Local Limited Partnerships $ 27,980,029
=============
Summarized financial information as of June 30, 1996 (due to the Fund's policy
of reporting the financial information of its Local Limited Partnership
interests on a 90 day lag basis) of the ten Local Limited Partnerships in which
the Fund was invested as of that date is as follows:
Summarized Balance Sheets - June 30, 1996 (Unaudited)
Assets:
Investment property, net $ 71,083,251
Current assets 3,207,699
Other assets 2,603,631
-------------
Total Assets $ 76,894,581
=============
Liabilities and Partners' Equity:
Long-term debt $ 38,951,691
Current liabilities 5,072,562
Other liabilities 5,837,959
-------------
Total Liabilities 49,862,212
Partners' Equity 27,032,369
-------------
Total Liabilities and Partners' Equity $ 76,894,581
=============
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements (Unaudited) (continued)
2. Investments in Local Limited Partnerships (continued)
Summarized Income Statements (Unaudited) - For
the Six Months Ended June 30, 1996
Rental and other income $ 3,802,617
-------------
Expenses:
Operating 1,973,525
Interest 1,448,096
Depreciation and amortization 1,283,310
-------------
Total Expenses 4,704,931
Net Loss $ (902,314)
=============
Partnership's share of net loss $ (846,704)
=============
Other Partners' share of net loss $ (55,610)
=============
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At September 30, 1996, the Fund had cash and cash equivalents of $511,978 as
compared to $71,715 at March 31, 1996. This increase is primarily attributable
to proceeds from the sale of marketable securities, offset by cash paid for
investments in Local Limited Partnerships, purchase of marketable securities,
and net cash used for operations.
The Fund had restricted cash of $489,998 at September 30, 1996 as compared to
$1,369,364 at March 31, 1996. The decrease is the result of capital
contributions made to one of the Local Limited Partnerships in which the Fund
has invested.
As of September 30, 1996, approximately $1,629,000 of marketable securities and
cash and cash equivalents have been designated as Reserves. The Reserves are
established to be used for working capital of the Fund and contingencies related
to the ownership of Local Limited Partnership interests. Management believes
that the interest income earned on Reserves, along with cash distributions
received from Local Limited Partnerships, to the extent available, will be
sufficient to fund the Fund's ongoing operations. Reserves may be used to fund
operating deficits if the Managing General Partner deems funding appropriate.
Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of September 30, 1996, the Fund had no contractual or other
obligation to any Local Limited Partnership, which had not been paid or provided
for, except as disclosed above.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Fund might deem it in its best interest to
voluntarily provide such funds in order to protect its investment. No such event
has occurred to date.
Cash Distributions
No cash distributions were made during the six months ended September 30, 1996.
Results of Operations
1996 versus 1995
For the six months ended September 30, 1996, the Fund's operations resulted in a
net loss of $1,028,116, as compared to net income of $56,139 for the six months
ended September 30, 1995. The change to a net loss position is primarily
attributable to an increase in equity in losses of Local Limited Partnerships
and a decrease in investment income.
For the three months ended September 30, 1996, the Fund's operations resulted in
a net loss of $744,377 compared to a net loss of $45,797 for the comparable 1995
period. The increase in net loss is primarily attributable to an increase in
equity in losses of Local Limited Partnerships and a decrease in investment
income.
The increase in equity in losses of Local Limited Partnerships for the three and
six months ended September 30, 1996, as compared to the same periods in 1995, is
primarily attributable to an increase in the number of operational Local Limited
Partnerships from seven as of September, 1995 to ten as of September, 1996.
Since certain properties were under construction during the six months ended
September 30, 1995, the results of operations are not indicative of the results
to be expected for the future, nor are they comparable.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations (continued)
The decline in investment income for the three and six month periods is due
primarily to lower average cash balances, as a result of the Fund's investment
in Local Limited Partnerships.
Property Discussions
The Fund is invested in ten Local Limited Partnerships which own ten properties
located in eight states. Two properties, representing 356 units, underwent
rehabilitation, and eight properties, representing 1001 units, are new
construction.
Each of the ten properties are complete, through initial lease-up and operating
satisfactorily.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended September 30, 1996.
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
SIGNATURE
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.
DATED: November 13, 1996 BOSTON FINANCIAL TAX CREDIT FUND VIII,
A LIMITED PARTNERSHIP
By: Arch Street VIII Limited Partnership,
its General Partner
/s/Georgia Murray
Georgia Murray
A Managing Director, Treasurer
and Chief Financial Officer