-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OlLeZsu7R5l8hJIYf6JMLTHKAaXkQ5vwTcEH/GmPU3r2UO7wbn/TCkgosTy82V+Y lrCWUylUTW+0X3o/sFyA5Q== 0000355804-98-000006.txt : 19980505 0000355804-98-000006.hdr.sgml : 19980505 ACCESSION NUMBER: 0000355804-98-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980504 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSOLIDATED CAPITAL PROPERTIES IV CENTRAL INDEX KEY: 0000355804 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 942768742 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-11002 FILM NUMBER: 98609782 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCLE PLZ STREET 2: P O BOX CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 10-Q 1 FORM 10-Q--QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the quarterly period ended March 31, 1998 or [ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period.........to......... (Amended by Exch Act Rel No. 312905. eff 4/26/93.) Commission file number 0-11002 CONSOLIDATED CAPITAL PROPERTIES IV (Exact name of registrant as specified in its charter) California 94-2768742 (State or other jurisdiction of I.R.S. Employer incorporation or organization) Identification No.) One Insignia Financial Plaza, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) Issuer's telephone number (864) 239-1000 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 . PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS a) CONSOLIDATED CAPITAL PROPERTIES IV CONSOLIDATED BALANCE SHEET (in thousands, except unit data) March 31, December 31, 1998 1997 (Unaudited) (Note) Assets Cash and cash equivalents $ 11,325 $ 12,090 Receivables and deposits 1,712 1,999 Note and interest receivable 1,081 1,081 Restricted escrows 3,159 3,174 Other assets 1,709 1,874 Investment properties: Land 12,491 12,491 Buildings and related personal property 119,069 118,162 131,560 130,653 Less accumulated depreciation (99,638) (98,490) 31,922 32,163 $ 50,908 $ 52,381 Liabilities and Partners' Deficit Liabilities Accounts payable $ 851 $ 526 Tenant security deposit liabilities 583 580 Accrued property taxes 862 1,312 Other liabilities 881 902 Mortgage notes and interest payable 72,333 72,439 75,510 75,759 Partners' Deficit General partner (6,144) (6,174) Limited partners (342,773 units issued and outstanding at March 31, 1998 and December 31, 1997) (18,458) (17,204) (24,602) (23,378) $ 50,908 $ 52,381 Note: The balance sheet at December 31, 1997, has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. See Accompanying Notes to Consolidated Financial Statements b) CONSOLIDATED CAPITAL PROPERTIES IV CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1998 1997 Revenues: Rental income $6,845 $6,551 Casualty gain 227 7 Other income 511 442 Total revenues 7,583 7,000 Expenses: Operating 3,073 2,902 General and administrative 420 230 Depreciation 1,148 1,613 Interest 1,472 1,475 Property taxes 489 385 Total expenses 6,602 6,605 Net income $ 981 $ 395 Net income allocated to general partners (4%) $ 39 $ 16 Net income allocated to limited partners (96%) 942 379 Net income $ 981 $ 395 Net income per limited partnership unit $ 2.75 $ 1.11 See Accompanying Notes to Consolidated Financial Statements c) CONSOLIDATED CAPITAL PROPERTIES IV CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' DEFICIT (Unaudited) For the Three Months Ended March 31, 1998 and 1997 (in thousands, except unit data) Limited Total Partnership General Limited Partners' Units Partner Partners Deficit Original capital contributions 343,106 $ 1 $171,553 $171,554 Partners' deficit at December 31, 1996 342,783 $(6,089) $(15,153) $(21,242) Net income for the three months ended March 31, 1997 -- 16 379 395 Distributions to Partners -- (58) (1,395) (1,453) Partners' deficit at March 31, 1997 342,783 $(6,131) $(16,169) $(22,300) Partners' deficit at December 31, 1997 342,773 $(6,174) $(17,204) $(23,378) Net income for the three months ended March 31, 1998 -- 39 942 981 Distributions to Partners -- (9) (2,196) (2,205) Partners' deficit at March 31, 1998 342,773 $(6,144) $(18,458) $(24,602) See Accompanying Notes to Consolidated Financial Statements d) CONSOLIDATED CAPITAL PROPERTIES IV CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) Three Months Ended March 31, 1998 1997 Cash flows from operating activities: Net income $ 981 $ 395 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,148 1,613 Amortization of loan costs and lease commissions 79 72 Loss on disposition of investment property -- 33 Casualty gain (227) (7) Change in accounts: Receivables and deposits 364 125 Other assets 103 47 Accounts payable 101 (286) Tenant security deposit liabilities 3 (9) Accrued property taxes (450) (395) Other liabilities (21) (64) Net cash provided by operating activities 2,081 1,524 Cash flows from investing activities: Property improvements and replacements (683) (558) Proceeds from sale of investments -- 492 Net receipts from restricted escrows 15 236 Collections of note receivable -- 10 Net insurance proceeds from casualty gain 150 7 Net cash (used in) provided by investing activities (518) 187 Cash flows from financing activities: Payments on notes payable (106) (100) Distributions to partners (2,205) (1,453) Loan costs paid (17) -- Net cash used in financing activities (2,328) (1,553) Net (decrease) increase in cash and cash equivalents (765) 158 Cash and cash equivalents at beginning of period 12,090 9,239 Cash and cash equivalents at end of period $11,325 $ 9,397 Supplemental Disclosures of Cash Flow Information and Non-Cash Activities: Cash paid for interest was approximately $1,381,000 and $1,403,000 for the three months ended March 31, 1998 and 1997, respectively. At March 31, 1998, accounts payable and property improvements and replacements were each adjusted by approximately $224,000 and receivables and deposits were adjusted by approximately $77,000 for non-cash activity. See Accompanying Notes to Consolidated Financial Statements e) CONSOLIDATED CAPITAL PROPERTIES IV NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE A - BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Consolidated Capital Properties IV (the "Partnership") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of ConCap Equities, Inc. (the "General Partner"), all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 1998, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1998. For further information, refer to the consolidated financial statements and footnotes thereto included in the Partnership's annual report on Form 10-K for the fiscal year ended December 31, 1997. Consolidation The consolidated financial statements include the Partnership's equity interest in a joint venture which owns South Port Apartments. The Partnership has the ability to control the major operating and financial policies of the Joint Venture. No minority interest has been reflected for the joint venture because minority interests are limited to the extent of their equity capital, and losses in excess of the minority interest equity capital are charged against the Partnership's interest. The Partnership's consolidated financial statements include the accounts of the Partnership, its wholly-owned partnerships and its 99% limited partnership interest in Briar Bay Apartments Associates, Ltd., Post Ridge Associates, Ltd., ConCap Rivers Edge Associates, Ltd., and ConCap Stratford Associates, Ltd. The Partnership may remove the General Partner of its 99%-owned partnership; therefore, these partnerships are controlled and consolidated by the Partnership. All significant interpartnership balances have been eliminated. Presentation of Accounts Certain reclassifications have been made to the 1997 information to conform to the 1998 presentation. NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES The Partnership has no employees and is dependent on the General Partner and its affiliates for the management and administration of all of the partnership activities, as provided in the Partnership Agreement. Partnership management and administrative services as well as property management services are performed by affiliates of Insignia Financial Group, Inc. ("Insignia"), an affiliate of the General Partner. The General Partner and its affiliates were paid the following amounts during the three months ended March 31, 1998 and 1997: 1998 1997 (in thousands) Property management fees (included in operating expenses) $ 359 $ 335 Reimbursements for services of affiliates, including $17,000 and $21,000 in construction services reimbursements in 1998 and 1997, respectively (included in investment property and general and administrative and operating expenses) 164 162 The Partnership has paid the property management fees noted above based on collected gross rental revenues for property management services in each of the three months ended March 31, 1998 and 1997, respectively. The Limited Partnership Agreement ("Partnership Agreement") provides for a special management fee equal to 9% of the total distributions made to the limited partners from cash flow provided by operations to be paid to the General Partner for executive and administrative management services. The Partnership paid approximately $190,000 and $48,000 under this provision of the Partnership Agreement to affiliates of the General Partner for the three months ended March 31, 1998 and 1997, respectively. These fees are included in general and administrative expenses. Included in reimbursements for services of affiliates for the three months ended March 31, 1998, is $7,000 for loan costs which were capitalized and included in "Other assets" on the Consolidated Balance Sheet. These loan costs are related to the refinancing of South Park Apartments in 1997. For the period January 1, 1997, to August 31, 1997, the Partnership insured its properties under a master policy through an agency affiliated with the General Partner with an insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the master policy. The agent assumed the financial obligations to the affiliate of the General Partner, which received payments on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the General Partner by virtue of the agent's obligations was not significant. On August 28, 1997, an Insignia affiliate (the "Purchaser") commenced tender offers for limited partnership interests in six real estate limited partnerships (including the Partnership) in which various Insignia affiliates act as general partner. The Purchaser offered to purchase up to 85,000 of the outstanding units of limited partnership interest in the Partnership, at $140.00 per Unit, net to the seller in cash, upon the terms and subject to the conditions set forth in the Offer to Purchase dated August 28, 1997 (the "Offer to Purchase") and the related Assignment of Partnership Interest attached as Exhibits (a)(1) and (a)(2), respectively, to the Tender Offer Statement on Schedule 14D-1 originally filed with the Securities and Exchange Commission on August 28, 1997. Because of the existing and potential future conflicts of interest (described in the Partnership's Statements on Schedule 14D-9 filed with the Securities and Exchange Commission), neither the Partnership nor the General Partner expressed any opinion as to the Offer to Purchase and made no recommendation as to whether unit holders should tender their units in response to the Offer to Purchase. On October 6, 1997, the Insignia affiliate closed the tender offer and acquired 29,618 units of limited partnership interest (8.64% of total Units). In addition, because of these conflicts of interest, including as a result of the Purchaser's affiliation with various Insignia affiliates, the manner in which the Purchaser votes its limited partner interest in the Partnership may not always be consistent with the best interests of the other limited partners. Change in Control On March 17, 1998, Insignia entered into an agreement to merge its national residential property management operations, and its controlling interest in Insignia Properties Trust, with Apartment Investment and Management Company ("AIMCO"), a publicly traded real estate investment trust. The closing, which is anticipated to happen in the third quarter of 1998, is subject to customary conditions, including government approvals and the approval of Insignia's shareholders. If the closing occurs, AIMCO will then control the General Partner of the Partnership. NOTE C - COMMITMENT AND CONTINGENCIES Commitments The Partnership is required by the Partnership Agreement to maintain working capital reserves for contingencies. On September 25, 1995, the partners were proxied and approved a reduction of the capital reserve requirements to $500 per apartment unit owned by the Partnership, or approximately $2,100,000. In the event expenditures are made from these reserves, operating revenue shall be allocated to such reserves to the extent necessary to maintain the foregoing level. Reserves, including cash and cash equivalents totaling approximately $11,325,000 at March 31, 1998, exceeded the Partnership's reserve requirements of approximately $2,100,000. NOTE D - DISTRIBUTIONS In March 1998, the General Partner declared and paid distributions attributable to cash flow from operations totaling approximately $2,205,000. In March 1997, the General Partner declared and paid distributions attributable to cash flow from operations totaling approximately $550,000 and approximately $903,000 representing a return of capital. NOTE E - NOTE AND INTEREST RECEIVABLE When Denbigh Village Apartments was sold in August 1994, the Partnership accepted a promissory note which matured in March 1996. In March 1996, an extension, under the existing terms, was negotiated to extend the note until April 1997. The note matured and the outstanding principal balance was not repaid. The Partnership negotiated with the borrower to extend the terms of the note until April 1, 1998, with all other terms of the note remaining unchanged. In March 1998, an extension, under modified terms, was negotiated to extend the note until September 1, 1998. The modified terms provide for consideration to be paid to the Partnership of an amount equal to one half of one percent of the outstanding principal balance due as of March 31, 1998. The estimated value of the note receivable approximates its carrying value. NOTE F - CASUALTY GAINS In November 1997, Overlook Apartments had a fire which destroyed one apartment unit and caused water and smoke damage in the remaining apartment units in the building. Insurance proceeds of $150,000 were received during the three months ended March 31, 1998 with approximately an additional $77,000 receivable from the insurer. Repair efforts have recently begun and the related costs will be capitalized as a part of the investment property. In accordance with generally accepted accounting principles the total insurance proceeds have been recorded as a casualty gain of approximately $227,000 during the three months ended March 31, 1998. Total insurance proceeds received and receivable approximate the cost of replacement. In January 1997, Foothill Place Apartments sustained extensive wind and flood damage from severe storms. Additionally, in February 1997, a fire occurred at Foothill Place Apartments resulting in minor fire damage. The insurance proceeds anticipated to be received less the estimated costs to make the necessary repairs and the write-off of assets to be replaced, resulted in a net casualty gain for these events of approximately $7,000 for the three month period ended March 31, 1997. All repairs and replacements related to these casualties were subsequently completed in the second quarter of 1997. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Partnership's investment properties consist of seventeen apartment complexes. The following table sets forth the average occupancy of the properties for the three months ended March 31, 1998 and 1997: Average Occupancy 1998 1997 The Apartments Omaha, NE 97% 95% Arbours of Hermitage Apartments Nashville, TN 97% 96% Briar Bay Racquet Club Apartments Miami, FL 95% 92% Chimney Hill Apartments Marietta, GA 85% 91% Citadel Apartments El Paso, TX 95% 94% Citadel Village Apartments Colorado Springs, CO 96% 98% Foothill Place Apartments Salt Lake City, UT 95% 94% Knollwood Apartments Nashville, TN 94% 94% Lake Forest Apartments Omaha, NE 94% 93% Nob Hill Villa Apartments Nashville, TN 92% 95% Overlook Apartments Memphis, TN 89% 85% Point West Apartments Charleston, SC 96% 97% Post Ridge Apartments Nashville, TN 96% 97% Rivers Edge Apartments Auburn, WA 99% 98% South Port Apartments Tulsa, OK 94% 91% Stratford Place Apartments Austin, TX 93% 89% Village East Apartments Cimarron Hills, CO 94% 99% Occupancy for the Briar Bay Racquet Club Apartments has increased due to strong marketing efforts and focusing on renewals. The decrease in occupancy at Chimney Hill Apartments is attributable to a highly competitive market and ongoing construction. With an increase in construction of multi-family units, there has been a drop in the overall occupancy in the Nob Hill Apartments market. Also, this apartment complex is building a perimeter fence to combat the increase in crime in the area. Occupancy at Overlook Apartments has increased due to the repair of unrentable units and better marketing efforts. As a result of a new staff and aggressive marketing, Stratford Place has increased occupancy. The increase in occupancy at South Port Apartments is attributable to an improved appearance, clubhouse renovations and increased marketing efforts. Poor market conditions due to military transfers and increased home purchasing contributed to a decrease in occupancy at Village East Apartments. The Partnership's net income for the three months ended March 31, 1998, was approximately $981,000 versus approximately $395,000 for the three months ended March 31, 1997. The increase in net income is attributable to an increase in rental and other income and a decrease in depreciation expense. Rental income increased for the three months ended March 31, 1998, compared to the three months ended March 31, 1997, due to increased rental rates and occupancy at many of the Partnership's investment properties. The increase in other income is attributable to higher cash balances held for the three months ended March 31, 1998 versus March 31, 1997. Also contributing to the increase in net income was a casualty gain of approximately $227,000 as discussed in Note F. Depreciation expense decreased due to the full depreciation of major assets at several properties by the end of 1997. Partially offsetting these favorable variances were increases in general and administrative and property tax expenses. General and administrative expense increased primarily due to an increase in the special 9% management fee on distributions from operating cash flows. The Partnership distributed approximately $2,205,000 and $550,000 from operating cash flow for the three months ended March 31, 1998 and 1997, respectively. Property tax expense increased due to higher assessed values at several of the Partnership's investment properties. Included in operating expense is approximately $179,000 of major repairs and maintenance mainly comprised of major landscaping, exterior painting and parking lot repairs during the three months ended March 31, 1998. During the three months ended March 31, 1997, approximately $158,000 of major repairs and maintenance comprised primarily of exterior building improvements and major landscaping were included in operating expense. When Denbigh Village Apartments was sold in August 1994, the Partnership accepted a promissory note which matured in March 1996. In March 1996, an extension, under the existing terms, was negotiated to extend the note until April 1997. The note matured and the outstanding principal balance was not repaid. The Partnership negotiated with the borrower to extend the terms of the note until April 1, 1998 with all other terms of the note remaining unchanged. In March 1998, an extension, under modified terms, was negotiated to extend the note until September 1, 1998. The modified terms provide for consideration to be paid to the Partnership of an amount equal to one half of one percent of the outstanding principal balance due as of March 31, 1998 as an extension fee. As of the date of this filing, this fee had not been received. The estimated value of the note receivable approximates its carrying value. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of each of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening market conditions, there is no guarantee that the General Partner will be able to sustain such a plan. At March 31, 1998, the Partnership held cash and cash equivalents of approximately $11,325,000 compared to approximately $9,397,000 at March 31, 1997. Cash and cash equivalents had a net decrease of approximately $765,000 for the three months ended March 31, 1998 as compared to a net increase of approximately $158,000 for the same period in 1997. Net cash provided by operating activities increased due to a decrease in cash used for accounts payable, increased net income, as described above, and a decrease in receivables and deposits and other assets. The increase in accounts payable results from the timing of payments. Receivables and deposits decreased due to lower balances in tax and insurance escrows. Other assets decreased due to a decrease in prepaid insurance. Partially offsetting these positive influences was an increase in cash used for payment of property taxes, as discussed above. Net cash used in investing activities increased primarily due to the non-recurring proceeds from the sale of Treasury Bills in 1997, increased property improvements and replacements, as well as a decrease in net receipts from restricted escrows. Net cash used in financing activities increased as a result of increased distributions to partners during the three months ended March 31, 1998 compared to the corresponding period of 1997. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the properties to adequately maintain the physical assets and meet other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. The mortgage indebtedness of approximately $72,333,000 matures at various dates between December 1998 and December 2005, with balloon payments due at maturity, at which time the properties will either be refinanced or sold. During the three months ended March 31, 1998 and 1997, cash distributions of approximately $2,205,000 and $1,453,000, respectively, were declared and paid. Future cash distributions will depend on the levels of net cash generated from operations, capital expenditure requirements, property sales and the availability of cash reserves. Year 2000 The Partnership is dependent upon the General Partner and Insignia for management and administrative services. Insignia has completed an assessment and will have to modify or replace portions of its software so that its computer systems will function properly with respect to dates in the year 2000 and thereafter (the "Year 2000 Issue"). The project is estimated to be completed not later than December 31, 1998, which is prior to any anticipated impact on its operating systems. The General Partner believes that with modifications to existing software and conversions to new software, the Year 2000 Issue will not pose significant operational problems for its computer systems. However, if such modifications and conversions are not made, or are not completed timely, the Year 2000 Issue could have a material impact on the operations of the Partnership. Other Certain items discussed in this quarterly report may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act") and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Partnership to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such forward-looking statements speak only as of the date of this quarterly report. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Partnership's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS The three lawsuits described in the Partnership's 1997 Annual Report on Form 10- K relating to the August 1997 tender offers made by Insignia affiliates (see discussion of the KLINE, CITY PARTNERSHIPS and HELLER complaints in Item 3 - Legal Proceedings) have each been voluntarily discontinued by their respective plaintiffs with no material affect on the financial condition or operations of the Partnership. In March 1998, several putative unit holders of limited partnership units of the Partnership commenced an action entitled ROSALIE NUANES, ET AL. V. INSIGNIA FINANCIAL GROUP, INC., ET AL. in the Superior Court of the State of California for the County of San Mateo. The plaintiffs named as defendants, among others, the Partnership, the General Partner and several of their affiliated partnerships and corporate entities. The complaint purports to assert claims on behalf of a class of limited partners and derivatively on behalf of a number of limited partnerships (including the Partnership) which are named as nominal defendants, challenging the acquisition by Insignia and its affiliates of interests in certain general partner entities, past tender offers by Insignia affiliates to acquire limited partnership units, the management of partnerships by Insignia affiliates as well as a recently announced agreement between Insignia and AIMCO. The complaint seeks monetary damages and equitable relief, including judicial dissolution of the Partnership. The General Partner was only recently served with the complaint which it believes to be without merit, and intends to vigorously defend the action. The Partnership is unaware of any other pending or outstanding litigation that is not of a routine nature. The General Partner of the Partnership believes that all such other pending or outstanding litigation will be resolved without a material adverse effect upon the business, financial condition, or operations of the Partnership. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits: Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. (b) Reports on Form 8-K: None. SIGNATURES In accordance with the requirements of the Exchange Act, the Partnership caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CONSOLIDATED CAPITAL PROPERTIES IV By: CONCAP EQUITIES, INC. General Partner By: /s/ William H. Jarrard, Jr. William H. Jarrard, Jr. President By: /s/ Ronald Uretta Ronald Uretta Vice President/Treasurer Date: May 4, 1998 EX-27 2
5 This schedule contains summary financial information extracted from Consolidated Capital Properties IV 1998 First Quarter 10-Q and is qualified in its entirety by reference to such 10-Q filing. 0000355804 CONSOLIDATED CAPITAL PROPERTIES IV 1,000 3-MOS DEC-31-1998 MAR-31-1998 11,325 0 0 0 0 0 131,560 (99,638) 50,908 0 72,333 0 0 0 (24,602) 50,908 0 7,583 0 0 6,602 0 1,472 0 0 0 0 0 0 981 2.75 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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