UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
June 30, 1995
For the period ended ____________________________________________________
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________________ to ___________________
0-15632
Commission File Number: _________________________________________________
FIRST CAPITAL INSTITUTIONAL REAL ESTATE, LTD. - 4
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(Exact name of registrant as specified in its charter)
Illinois 36-3441345
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Two North Riverside Plaza, Suite 950, Chicago, Illinois 60606-2607
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(Address of principal executive offices) (Zip Code)
(312) 207-0020
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(Registrant's telephone number, including area code)
Not applicable
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(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 reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
DOCUMENTS INCORPORATED BY REFERENCE:
The First Amended and Restated Certificate and Agreement of Limited Partnership
filed as Exhibit A to the Partnership's Prospectus dated November 5, 1986,
included in the Partnership's Registration Statement on Form S-11, is
incorporated herein by reference in Part I of this report.
BALANCE SHEETS
(All dollars rounded to nearest 00s)
June 30,
1995 December 31,
(Unaudited) 1994
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ASSETS
Investment in commercial rental properties:
Land $ 5,550,400 $ 5,550,400
Buildings and improvements 39,851,800 39,760,400
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45,402,200 45,310,800
Accumulated depreciation and amortization (8,403,400) (7,703,200)
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Total investment properties, net of accumulated
depreciation and amortization 36,998,800 37,607,600
Cash and cash equivalents 4,668,200 4,142,100
Restricted certificates of deposit 62,500 62,500
Rents receivable 233,500 298,100
Other assets 60,400 65,000
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$42,023,400 $42,175,300
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LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Loan payable to General Partner $ 4,085,700 $ 3,911,700
Accounts payable and accrued expenses 573,900 661,700
Due to Affiliates 165,100 150,800
Security deposits 88,400 101,100
Distributions payable 650,400 678,100
Other liabilities 81,700 79,200
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5,645,200 5,582,600
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Partners' (deficit) capital:
General Partner (246,300) (246,300)
Limited Partners (750,000 Units authorized, 593,025
issued and outstanding) 36,624,500 36,839,000
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36,378,200 36,592,700
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$42,023,400 $42,175,300
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STATEMENTS OF PARTNERS' CAPITAL
For the six months ended June 30, 1995
and the year ended December 31, 1994
(Unaudited)
(All dollars rounded to nearest 00s)
General Limited
Partner Partners Total
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Partners' (deficit) capital,
January 1, 1994 $(240,800) $39,399,500 $39,158,700
Net income for the year ended December
31, 1994 168,500 1,080,700 1,249,200
Distributions for the year ended December
31, 1994 (174,000) (3,641,200) (3,815,200)
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Partners' (deficit) capital,
December 31, 1994 (246,300) 36,839,000 36,592,700
Net income for the six months ended
June 30, 1995 87,000 882,600 969,600
Distributions for the six months ended
June 30, 1995 (87,000) (1,097,100) (1,184,100)
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Partners' (deficit) capital,
June 30, 1995 $(246,300) $36,624,500 $36,378,200
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The accompanying notes are an integral part of the financial statements.
4
STATEMENTS OF INCOME AND EXPENSES
For the quarters ended June 30, 1995 and 1994
(Unaudited)
(All dollars rounded to nearest 00s
except per Unit amounts)
1995 1994
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Income:
Rental $1,376,200 $1,465,700
Interest 66,900 36,200
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1,443,100 1,501,900
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Expenses:
Interest--General Partner 87,800 95,600
Depreciation and amortization 348,900 385,700
Property operating:
Affiliates 87,600 103,200
Nonaffiliates 142,500 172,500
Real estate taxes 147,300 187,300
Insurance--Affiliate 12,500 13,500
Repairs and maintenance 97,900 147,400
General and administrative:
Affiliates 8,200 8,200
Nonaffiliates 50,600 39,000
Loss on sale of property 48,700
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983,300 1,201,100
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Net income $ 459,800 $ 300,800
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Net income allocated to General Partner $ 53,400 $ 46,300
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Net income allocated to Limited Partners $ 406,400 $ 254,500
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Net income allocated to Limited Partners per Unit
(593,025 Units authorized, issued and outstanding) $ 0.69 $ 0.43
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STATEMENTS OF INCOME AND EXPENSES
For the six months ended June 30, 1995 and 1994
(Unaudited)
(All dollars rounded to nearest 00s
except per Unit amounts)
1995 1994
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Income:
Rental $2,839,200 $3,056,200
Interest 124,500 59,300
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2,963,700 3,115,500
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Expenses:
Interest--General Partner 172,300 183,100
Depreciation and amortization 700,600 780,900
Property operating:
Affiliates 176,700 201,100
Nonaffiliates 286,300 365,000
Real estate taxes 309,000 343,300
Insurance--Affiliate 29,200 37,000
Repairs and maintenance 214,600 296,500
General and administrative:
Affiliates 16,500 18,600
Nonaffiliates 88,900 69,600
Loss on sale of property 48,700
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1,994,100 2,343,800
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Net income $ 969,600 $ 771,700
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Net income allocated to General Partner $ 87,000 $ 93,100
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Net income allocated to Limited Partners $ 882,600 $ 678,600
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Net income allocated to Limited Partners per Unit
(593,025 Units authorized, issued and outstanding) $ 1.49 $ 1.14
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STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1995 and 1994
(Unaudited)
(All dollars rounded to nearest 00s)
1995 1994
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Cash flows from operating activities:
Net income $ 969,600 $ 771,700
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 700,600 780,900
Loss on sale of property 48,700
Changes in assets and liabilities:
Decrease in rents receivable 64,600 60,500
Decrease in other assets 4,200 26,800
(Decrease) in accounts payable and accrued expenses (87,800) (302,800)
Increase in due to Affiliates 14,300 13,400
Increase in other liabilities 2,500 52,900
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Net cash provided by operating activities 1,668,000 1,452,100
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Cash flows from investing activities:
Proceeds from the sale of property 2,170,300
Payments for capital and tenant improvements (91,400) (142,200)
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Net cash (used for) provided by investing activities (91,400) 2,028,100
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Cash flows from financing activities:
Distributions paid to Partners (1,211,800) (1,144,000)
Proceeds from loan payable to General Partner 174,000 515,400
(Decrease) in security deposits (12,700) (26,200)
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Net cash (used for) financing activities (1,050,500) (654,800)
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Net increase in cash and cash equivalents 526,100 2,825,400
Cash and cash equivalents at the beginning of the period 4,142,100 3,054,000
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Cash and cash equivalents at the end of the period $4,668,200 $5,879,400
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Supplemental information:
Interest paid to the General Partner during the period $ 171,900 $ 180,400
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The accompanying notes are an integral part of the financial statements.
3
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
June 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
DEFINITION OF SPECIAL TERMS:
Capitalized terms used in this report have the same meaning as those terms have
in the Partnership's Registration Statement on Form S-11, filed with the
Securities and Exchange Commission. Definitions of these terms are contained in
Article III of the First Amended and Restated Certificate and Agreement of
Limited Partnership, which is incorporated herein by reference.
ACCOUNTING POLICIES:
The financial statements have been prepared in accordance with generally
accepted accounting principles. Under this method of accounting, revenues are
recorded when earned and expenses are recorded when incurred.
The financial information included in these financial statements is unaudited;
however, in management's opinion, all adjustments (consisting of only normal,
recurring accruals) necessary for a fair presentation of the results of
operations for the periods included have been made. Results of operations for
the quarter and six months ended June 30, 1995, are not necessarily indicative
of the operating results for the year ending December 31, 1995.
The financial statements include the Partnership's 50% interest in two joint
ventures and its 75% interest in one joint venture with Affiliated
partnerships. These joint ventures were formed for the purpose of acquiring an
interest in certain real properties and are operated under the common control
of the General Partner. Accordingly, the Partnership's pro rata share of the
ventures' revenues, expenses, assets, liabilities and capital is included in
the financial statements.
Certain reclassifications have been made to the previously reported 1994
statements in order to provide comparability with the 1995 statements. These
reclassifications have no effect on net income or Partners' capital.
Cash equivalents are considered all highly liquid investments purchased with a
maturity of three months or less.
Reference is made to the Partnership's annual report for the year ended
December 31, 1994, for a description of other accounting policies and
additional details of the Partnership's financial condition, results of
operations, changes in Partners' capital and changes in cash balances for the
year then ended. The details provided in the notes thereto have not changed
except as a result of normal transactions in the interim.
2. RELATED PARTY TRANSACTIONS:
Subsequent to May 4, 1988, the Termination of the Offering, as compensation for
services rendered in managing the affairs of the Partnership, the General
Partner shall be entitled to receive a Partnership Management Fee payable
within 60 days following the end of each fiscal year. Such amount shall be
equal to the lesser of (i) 0.5% of the net value of the Partnership's assets as
of the end of such year as reflected on the Certificate of Value furnished to
the Limited Partners, plus, the amount, if any, the Partnership Management Fee
paid in any prior year was less than 0.5% of the net value of the Partnership's
assets in such prior year, or (ii) an amount equal to the difference between
(a) 10% of the Partnership's aggregate Cash Flow (as defined by the Partnership
Agreement) from the Commencement of Operations to the end of the year for which
such Partnership Management Fee is payable, and (b) the aggregate amount
previously paid to the General Partner as a Partnership Management Fee. In
accordance with the Partnership Agreement, Net Profits (exclusive of Net
Profits from the sale or disposition of Partnership properties) shall be
allocated to the General Partner in an amount equal to the greater of the
General Partner's Partnership Management Fee for such year, or 1% of such Net
Profits. The balance of Net Profits, if any, is allocated to the Limited
Partners. For the quarter and six months ended June 30, 1995, the General
Partner was allocated a Partnership Management Fee and,
accordingly, Net Profits from operations of approximately $53,400 and $87,000,
respectively.
As set forth in the Partnership Agreement, the General Partner has agreed to
make available to the Partnership a line of credit in an amount equal to the
sum of the Partnership Management Fees and Acquisition Fees paid to the General
Partner or its Affiliates. This line of credit may be drawn upon for
distribution to the Limited Partners on a pro rata basis to the extent that
Cash Flow (as defined by the Partnership Agreement) is otherwise less than
sufficient to distribute cash in amounts equal to the Limited Partners'
Preferred Return (7.5% per annum noncompounding cumulative return on the
Limited Partner's Capital Investment); provided, however, that the maximum
amount which shall be advanced to the Partnership by the General Partner for
distribution to the Limited Partners shall be the amount of Acquisition Fees
and Partnership Management Fees actually paid to the General Partner or its
Affiliates. Amounts advanced shall bear interest at the rate of 8.5% per annum
simple interest, payable monthly. Repayment of amounts advanced shall be made
only from Cash Flow (as defined by the Partnership Agreement) if and to the
extent that it is more than sufficient to distribute cash to the Limited
Partners in amounts equal to the Limited Partners Preferred Return and from
Sale or Financing Proceeds to the extent permitted by the Partnership
Agreement. As of June 30, 1995, the Partnership has drawn approximately
$4,085,700 which represents the total amount of the General Partner's current
commitment.
Fees and reimbursements paid and payable by the Partnership to Affiliates
during the quarter and six months ended June 30, 1995 were as follows:
Paid
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Quarter Six Months Payable
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Property management and leasing fees $ 90,300 $160,400 $ 89,600
Interest on loan payable to General Partner 88,700 171,900 28,900
Reimbursement of property insurance premiums, at
cost 29,200 29,200 None
Real estate commissions (a) None None 40,200
Reimbursement of expenses, at cost:
(1) Accounting 2,600 7,700 4,300
(2) Investor communication 2,500 6,600 2,100
(3) Legal 4,600 5,000 None
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$217,900 $380,800 $165,100
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(a) As of June 30, 1995, $40,200 was due to the General Partner for real estate
commissions earned in connection with the disposition of Wellington A and
the sale of Wellington B in the Wellington North Office Complex. These
commissions have been accrued but not paid. Under the terms of the
Partnership Agreement, these commissions will not be paid until such time
as the Limited Partners have received cumulative distributions of Sale or
Financing Proceeds equal to 100% of their Original Capital Contribution,
plus a cumulative return (including all Cash Flow (as defined by the
Partnership Agreement) which has been distributed to Limited Partners) of
6% simple interest per annum on their Capital Investment from the initial
date of investment.
3. RESTRICTED CERTIFICATES OF DEPOSIT:
Restricted certificates of deposits includes $37,500 which has been pledged as
collateral for security deposits to the Houston Lighting & Power Company and
$25,000 which has been pledged as collateral for security deposits to the
Florida Lighting & Power Company.
4
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Reference is made to the Partnership's annual report for the year ended
December 31, 1994, for a discussion of the Partnership's business.
As the Partnership progresses through the disposition phase of its life cycle,
comparisons of results of net income and cash flows as defined by generally
accepted accounting principals ("GAAP") as well as Cash Flow (as defined by the
Partnership Agreement) between periods are complicated. These results are
generally expected to decline as real property interests are sold or disposed
of since the Partnership no longer receives the results generated from such
real property interests. Accordingly, rental income, property operating
expenses, repairs and maintenance expenses, real estate taxes and insurance are
expected to decline as well, but will continue to comprise the significant
components of net income and cash flows as defined by GAAP as well as Cash Flow
(as defined by the Partnership Agreement) until the final property is sold.
Also, during the disposition phase, cash and cash equivalents increase as Sale
Proceeds are received and decrease as the Partnership utilizes these proceeds
for the purposes of distributions to Limited Partners, repayment of the loan
payable to the General Partner or making capital improvements to the
Partnership's remaining properties. Prior to being utilized for such purposes,
these funds are invested in short-term money market instruments. Sale Proceeds
are excluded from the determination of Cash Flow (as defined by the Partnership
Agreement).
OPERATIONS
The table below is a recap of certain operating results of each of the
Partnership's properties for the quarters and six months ended June 30, 1995
and 1994. The discussion following the table should be read in conjunction with
the Financial Statements and Notes thereto appearing in this report.
Comparative Operating Results (a)
For the For the
Quarters Ended Six Months Ended
6/30/95 6/30/94 6/30/95 6/30/94
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INDIAN RIDGE PLAZA SHOPPING CENTER
Rental revenues $499,700 $485,100 $1,032,700 $1,051,400
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Property net income $266,500 $236,700 $ 534,400 $ 538,500
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Average occupancy 96% 98% 96% 98%
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PARK PLAZA
PROFESSIONAL BUILDING
Rental revenues $413,100 $448,600 $ 857,600 $ 894,700
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Property net income $ 97,300 $110,800 $ 233,700 $ 229,900
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Average occupancy 88% 87% 88% 88%
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3120 SOUTHWEST FREEWAY OFFICE
BUILDING
Rental revenues $177,400 $171,800 $ 365,200 $ 343,700
-----------------------------------------------------------------------------
Property net income (loss) $ 7,800 $ (6,900) $ 25,100 $ (1,500)
-----------------------------------------------------------------------------
Average occupancy 92% 89% 94% 90%
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CARROLLTON CROSSROADS SHOPPING
CENTER
Rental revenues $305,500 $262,100 $ 583,700 $ 549,900
-----------------------------------------------------------------------------
Property net income $172,900 $104,300 $ 319,900 $ 265,300
-----------------------------------------------------------------------------
Average occupancy 96% 98% 98% 99%
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WELLINGTON C; WELLINGTON
NORTH OFFICE COMPLEX (B)
Rental revenues $ 98,200 $ 216,600
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Property net (loss) $ 7,600 $8,800
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Average occupancy 91% 90%
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(a) Excludes certain income and expense items which are either not directly
related to individual property operating results such as interest income
and general and administrative expenses or are related to properties
previously owned by the Partnership.
(b) This property was sold on June 8, 1994. The property net income excludes
the loss on sale of property of ($48,700) which is included in the
Statements of Income and Expenses for the quarter and six months ended June
30, 1994.
Net income for the Partnership for the quarter and six months ended June 30,
1995 increased $159,000 and $197,900, respectively, when compared to the
quarter and six months ended June 30, 1994. Excluding the results of Wellington
C, net income for the Partnership for the quarter and six months ended June 30,
1995 increased approximately $117,800 or 34% and $138,500 or 17%, respectively,
when compared to 1994. Factors which contributed to the increases were: 1)
increases in interest income earned on short-term investments of approximately
$30,800 or 85% and $65,300 or 110%, respectively, due to an increase in funds
available for such investments as well as an increase in the average interest
rate obtainable on these investments; 2) decreases in property operating
expenses; 3) decreases in repair and maintenance expenses; 4) decreases in
depreciation and amortization expense; 5) decreases in interest expense of
approximately $7,800 or 8% and $10,800 or 6%, respectively, as a result of a
decrease in the loan payable to the General Partner and 6) decreases in
insurance expense. Partially offsetting the increases in net income were
increases in general and administrative expenses of $11,600 or 25% and $17,200
or 20%, respectively, primarily due to an increase in printing and mailing
expenses and Indiana state and county income and sales taxes due to a lower
expense in 1994 as a result of an overestimate of the 1993 liability. Rental
revenues for the quarter and six months ended June 30, 1995 increased and
remained stable, respectively, when compared to the prior year periods. In
addition, real estate taxes decreased for the quarterly periods under
comparison and increased for the six-month periods under comparison.
For purposes of the following comparative discussion, the operating results of
Wellington C have been excluded.
Rental revenues increased approximately $28,100 for the quarter ended June 30,
1995 and decreased approximately $500 for the six months ended June 30, 1995
when compared to the prior year quarter and six-month periods, respectively.
The factors which contributed to the changes in rental revenues were: 1) lower
tenant expense reimbursements as a result of an overestimate of prior year
billings as well as a decrease in parking lot income in 1995 and the
recognition of security deposits as income in 1994 at the Park Plaza
Professional Building ("Park Plaza"); 2) an increase in percentage rents at
Carrollton Crossroads Shopping Center ("Carrollton"); 3) an increase in the
average occupancy rates and base rental rates for new and renewing tenants at
3120 Southwest Freeway Office Building ("Southwest Freeway"); 4) a decrease in
the base rental rate charged to new and renewing tenants and a lower average
occupancy rate in 1995 at Indian Ridge Shopping Center ("Indian Ridge"); 5) an
increase in quarterly tenant expense reimbursements at Indian Ridge as a result
of a partial refund to tenants in 1994 of prior year billings and 6) a decrease
in the six-month tenant expense reimbursements at Carrollton due to additional
billings in 1994 which were more than had been previously estimated in 1993.
Property operating expenses decreased approximately $25,700 or 10% and $48,600
or 10%, respectively. Contributing factors to the decrease in property
operating expenses were lower property management and leasing fees at Park
Plaza, lower utility costs at Southwest Freeway and lower professional service
fees at Indian Ridge.
Repairs and maintenance decreased approximately $9,300 or 8% and $17,900 or 7%,
respectively, primarily due to a reduction in personnel costs.
Depreciation and amortization expenses decreased approximately $10,700 or 3%
and $15,300 or 2%, respectively, primarily as a result of the provision for
value impairment recorded at Park Plaza as of December 31, 1994.
Insurance expense decreased approximately $4,300 or 26% and $4,600 or 14%,
respectively, during the quarter and six months ended June 30, 1995, when
compared to the prior year periods. The decreases were primarily due to lower
5
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
group rates on the Partnership's combined insurance coverage as a result of a
minimal amount of claims made over the past several years, which provided a
good loss experience relative to the Partnership's properties.
Real estate tax expense decreased for the quarterly periods under comparison
approximately $12,700 or 8% due to a decrease at Carrollton as a result of a
lower estimated liability in 1995 when compared to 1994. Total real estate tax
expense increased for the six-month periods under comparison approximately
$6,300 or 2% primarily due to a projected increases in the property's assessed
valuation and tax rate at Park Plaza, partially offset by a decrease at
Carrollton, as previously discussed.
To further increase and or maintain occupancy levels at the Partnership's
properties, the General Partner, through its Affiliated asset and property
management groups, continues to take the necessary actions deemed appropriate
for the properties discussed above. Some of these actions include: 1)
implementation of marketing programs, including hiring of third-party leasing
agents or providing on-site leasing personnel, advertising, direct mail
campaigns and development of building brochures; 2) early renewal of existing
tenants and addressing any expansion needs these tenants may have; 3) promotion
of local broker events and networking with local brokers; 4) networking with
national level retailers; 5) cold-calling other businesses and tenants in the
market area; and 6) providing rental concessions or competitively pricing
rental rates depending on market conditions.
LIQUIDITY AND CAPITAL RESOURCES
One of the Partnership's objectives is to dispose of its properties when market
conditions allow for the achievement of the maximum possible sales price. In
the interim, the Partnership continues to manage and maintain it properties.
Notwithstanding the Partnership's intention relative to the sale of its
properties, another primary objective of the Partnership is to provide cash
distributions to Limited Partners from Partnership operations. To the extent
cash distributions exceed net income, such excess distributions will be treated
as a return of capital. Cash Flow (as defined by the Partnership Agreement) is
generally not equal to Partnership net income or cash flows as defined by GAAP,
since certain items are treated differently under the Partnership Agreement
than under GAAP. Management believes that to facilitate a clear understanding
of the Partnership's operations, an analysis of Cash Flow (as defined by the
Partnership Agreement) should be examined in conjunction with an analysis of
net income or cash flows as defined by GAAP. The following table includes a
reconciliation of Cash Flow (as defined by the Partnership Agreement) to cash
flow provided by operating activities as determined by GAAP, is not indicative
of actual distributions to Partners and should not be considered as an
alternative to the results disclosed in the Statements of Income and Expenses
and the Statement of Cash Flows.
Comparative Cash
Flow Results
For the Six Months
Ended
6/30/95 6/30/94
------------------------------------------------------------------------------
Amount of Cash Flow (as defined in the Partnership
Agreement) $ 1,583,200 $1,507,700
Items of reconciliation:
General Partner's Partnership Management Fee 87,000 93,600
Decrease in current assets 68,800 87,300
(Decrease) in current liabilities (71,000) (236,500)
------------------------------------------------------------------------------
Net cash provided by operating activities $ 1,668,000 $1,452,100
------------------------------------------------------------------------------
Net cash (used for) provided by investing activities $ (91,400) $2,028,100
------------------------------------------------------------------------------
Net cash (used for) financing activities $(1,050,500) $ (654,800)
------------------------------------------------------------------------------
The increase in Cash Flow (as defined by the Partnership Agreement) of
approximately $75,500 for the six months ended June 30, 1995 when compared to
six months ended June 30, 1994 was primarily due to the increase in net income,
as previously discussed, exclusive of the decrease in depreciation and
amortization expense and the loss on the sale of Wellington C, and included a
decrease of approximately $6,600 or 7% in the General Partner's Partnership
Management Fee.
The increase in the Partnership's cash position as of June 30, 1995 when
compared to December 31, 1994 was primarily the result of net cash provided by
operating activities exceeding distributions paid to Partners and expenditures
for capital and tenant improvements. Liquid assets of the Partnership as of
June 30, 1995 were comprised of undistributed cash from operations retained for
working capital purposes.
Net cash provided by operating activities continues to be the Partnership's
primary source of funds. Net cash provided by operating activities increased
$215,900 for the six months ended June 30, 1995 when compared to the six months
ended June 30, 1994. This increase was primarily due to the increase in net
income previously discussed and the timing of the payment of certain
Partnership expenses, partially offset by the timing of the collection of
tenant's rental payments.
Net cash (used for) provided by investing activities changed approximately
($2,119,500) for the six months ended June 30, 1995 when compared to the six
months ended June 30, 1994. The change was primarily due to the sale proceeds
received in 1994 for the sale of Wellington C, partially offset by a decrease
in payments made in 1995 for capital and tenant improvements. In addition to
the $91,400 spent in 1995, the Partnership has budgeted to spend approximately
$530,000 for capital and tenant improvements during the remainder of 1995,
consisting of approximately $215,000, $175,000, $95,000 and $45,000,
respectively, at Indian Ridge, Park Plaza, Southwest Freeway and Carrollton.
The General Partner believes these improvements are necessary in order to
maintain the occupancy levels in very competitive markets, as well as to
maximize rental rates charged to new and renewing tenants.
Net cash (used for) financing activities increased $395,700 for the six months
ended June 30, 1995 when compared to the six months ended June 30, 1994
primarily due to an increase in the payment of cash distributions to Limited
Partners.
The General Partner continues to take a conservative approach to projections of
future rental income and to maintain higher levels of cash reserves due to the
anticipated capital and tenant improvements necessary to be made to the
Partnership's properties during the next several years. As a result, cash
continues to be retained to supplement working capital reserves. Cash Flow (as
defined by the Partnership Agreement) retained to supplement working capital
reserves approximated $486,100 for the six months ended June 30, 1995.
Distributions to Limited Partners for the quarter ended June 30, 1995 were
declared in the amount of $0.95 per Limited Partner Unit. Cash distributions
are made 60 days after the quarter-end. The amount of future distributions to
Limited Partners will ultimately be dependent upon the performance of the
Partnership's investments as well as the amount of cash retained in the future
to supplement working capital reserves. Accordingly, there can be no assurance
of the availability of cash for distribution to Partners.
6
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
(a) Exhibits: Financial Data Schedule
(b) Reports on Form 8-K:
There were no reports filed on Form 8-K during the quarter ended
June 30, 1995.
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.
FIRST CAPITAL INSTITUTIONAL REAL ESTATE, LTD. - 4
BY: FIRST CAPITAL FINANCIAL CORPORATION
GENERAL PARTNER
Date: August 14, 1995 By: /s/ DOUGLAS CROCKER II
--------------- ---------------------------------------------
DOUGLAS CROCKER II
President and Chief Executive Officer
Date: August 14, 1995 By: /s/ NORMAN M. FIELD
--------------- ---------------------------------------------
NORMAN M. FIELD
Vice President - Finance and Treasurer