SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): September 23, 1998 NEW ENGLAND LIFE PENSION PROPERTIES IV; A REAL ESTATE LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) Massachusetts (State or Other Jurisdiction of Incorporation) 0-15429 04-2893298 (Commission File Number) (IRS Employer Identification No.) 225 Franklin Street, 25th Floor Boston, MA 02110 (Address of principal executive offices) (Zip Code) (617) 261-9000 Registrant's Telephone Number, Including Area Code Not Applicable (Former Name or Former Address, if Changed Since Last Report) Item 2. Acquisition or Disposition of Assets. - ---------------------------------------------- On September 23, 1998, New England Life Pension Properties IV; A Real Estate Limited Partnership (the "Partnership") sold its property known as Metro Business Center located in Phoenix, AZ. The property was sold to an unaffiliated third party (the "Buyer") for gross proceeds of $9,900,000. The terms of the sale were determined by arm's length negotiation between the Buyer and the Partnership. The Partnership received net proceeds of approximately $9,730,000 and recognized a gain of approximately $3,767,000. Item 7. Financial Statements and Exhibits. - ------------------------------------------- In connection with the disposition of the asset discussed in Item 2 above, pro forma financial statements are presented below. The pro forma balance sheet is presented for the period ended June 30, 1998 (Exhibit A). The pro forma income statements are presented for the fiscal year ended December 31, 1997 (Exhibit B) and the period ended June 30, 1998 (Exhibit C). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 2, 1998 NEW ENGLAND LIFE PENSION PROPERTIES IV; A REAL ESTATE LIMITED PARTNERSHIP (Registrant) By: Fourth Copley Corp., Managing General Partner By: /s/ Scott W. Edwards --------------------------------- Name: Scott W. Edwards Title: President, Chief Executive Officer and Director New England Life Pension Properties IV EXHIBIT A A Real Estate Limited Partnership Pro Forma Balance Sheet June 30, 1998 Unaudited Pro Forma June 30, 1998 June 30, 1998 Adjustment Pro Forma ------------- ---------- --------- ASSETS Real estate investments: Joint ventures $16,047,855 - $16,047,855 Property, net 14,672,556 (5,666,301)(a) 9,006,255 ------------ ----------- ------------ 30,720,411 (5,666,301) 25,054,110 Cash and cash equivalents 6,949,194 9,730,100 (a) 16,679,294 ------------ ----------- ------------ $37,669,605 $4,063,799 $41,733,404 ============ =========== ============ LIABILITIES AND PARTNERS' CAPITAL Accounts payable $ 99,124 - $ 99,124 Accrued management fee 34,212 - 34,212 Deferred management fees 2,579,535 - 2,579,535 Deferred disposition fees 1,694,879 297,000 (b) 1,991,879 ------------ ----------- ------------ Total liabilities 4,407,750 297,000 4,704,750 ------------ ----------- ------------ Partners' capital (deficit): Limited partners ($524 per unit; 120,000 units authorized, 94,997 units issued and outstanding) 33,331,839 3,729,131 (a) 37,060,970 General partners (69,984) 37,668 (a) (32,316) ------------ ----------- ------------ Total partners' capital 33,261,855 3,766,799 37,028,654 ------------ ----------- ------------ $37,669,605 $4,063,799 $41,733,404 ============ =========== ============ New England Life Pension Properties IV EXHIBIT B A Real Estate Limited Partnership Pro Forma Income Statement December 31, 1997 Unaudited Pro Forma December 31, 1997 December 31, 1997 Adjustment Pro Forma ----------------- ---------- ---------- Investment Activity Property rentals $ 4,981,451 (1,057,023)(c) $ 3,924,428 Property operating expenses (2,028,830) 325,736 (c) (1,703,094) Depreciation and amortization (921,501) 236,902 (c) (684,599) ------------- ----------- ------------- 2,031,120 (494,385) 1,536,735 Joint venture earnings 900,050 - 900,050 Amortization (5,308) - (5,308) ------------- ----------- ------------- Total real estate operations 2,925,862 (494,385) 2,431,477 Gain on sales of property 10,482,458 3,766,799 (a) 14,249,257 ------------- ----------- ------------- Total real estate activity 13,408,320 3,272,414 16,680,734 Interest on cash equivalents and short term investments 473,796 - 473,796 ------------- ----------- ------------- Total investment activity 13,882,116 3,272,414 17,154,530 Portfolio Expenses Management fee 352,468 (49,390)(f) 303,078 General and administrative 318,489 (4,200)(g) 314,289 ------------- ----------- ------------- 670,957 (53,590) 617,367 ------------- ----------- ------------- Net income $13,211,159 $3,326,004 $16,537,163 ============= =========== ============= Net income per limited partnership unit $ 137.68 $ 34.66 (d) $ 172.34 ============= =========== ============= Number of limited partnership units outstanding during the period 94,997 94,997 94,997 ============= =========== ============= New England Life Pension Properties IV EXHIBIT C A Real Estate Limited Partnership Pro Forma Income Statement June 30, 1998 Unaudited Pro Forma June 30, 1998 June 30, 1998 Adjustment Pro Forma ------------- ---------- ----------- Investment Activity Property rentals $1,652,565 (597,969)(e) $1,054,596 Property operating expenses (702,231) 134,870 (e) (567,361) Depreciation and amortization (308,811) 141,375 (e) (167,436) -------------- ----------- ------------ 641,523 (321,724) 319,799 Joint venture earnings 726,629 - 726,629 Amortization (2,654) - (2,654) -------------- ----------- ------------ Total real estate operations 1,365,498 (321,724) 1,043,774 Gain on sale of property - 3,766,799 (a) 3,766,799 -------------- ----------- ------------ Total real estate activity 1,365,498 3,445,075 4,810,573 Interest on cash equivalents and short term investments 174,749 - 174,749 -------------- ----------- ------------ Total investment activity 1,540,247 3,445,075 4,985,322 Portfolio Expenses Management fee 136,849 (27,540)(f) 109,309 General and administrative 171,223 - 171,223 -------------- ----------- ------------ 308,072 (27,540) 280,532 -------------- ----------- ------------ Net income $1,232,175 $3,472,615 $4,704,790 ============== =========== ============ Net income per limited partnership unit $ 12.84 $ 36.19 (d) $ 49.03 ============== =========== ============ Number of limited partnership units outstanding during the period 94,997 94,997 94,997 ============== =========== ============ Pro Forma Financial Statement Footnotes: (a) Disposition of asset as discussed in Item 2 herein and allocation of the gain on such disposition to the Partners. (b) Disposition fee incurred in connection with the disposition of the asset discussed in Item 2 herein. (c) Removal of 1997 operating activity related to the disposed asset discussed in Item 2 herein. (d) Calculation of net income per limited partnership unit after the removal of operating activity and addition of the gain related to the disposed asset discussed in Item 2 herein. (e) Removal of 1998 year-to-date operating activity related to the disposed asset discussed in Item 2 herein. (f) Removal of management fees based on distributions received during the pro forma period from the disposed asset discussed in Item 2 herein. (g) Removal of appraisal fees incurred during the pro forma period for the disposed asset discussed in Item 2 herein.