-----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, TJeuHrynViydG4yi89C0mZHI6zSYvIOKRE6UXaJL1Aq9mgbJ6uVAEPThYcetaUb5 DPynTkQd6JZBROe16By3Hg== 0000702174-98-000001.txt : 19980211 0000702174-98-000001.hdr.sgml : 19980211 ACCESSION NUMBER: 0000702174-98-000001 CONFORMED SUBMISSION TYPE: 10KSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971031 FILED AS OF DATE: 19980129 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHELTER PROPERTIES IV LIMITED PARTNERSHIP CENTRAL INDEX KEY: 0000702174 STANDARD INDUSTRIAL CLASSIFICATION: 6500 IRS NUMBER: 570721760 STATE OF INCORPORATION: SC FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10KSB SEC ACT: SEC FILE NUMBER: 000-10884 FILM NUMBER: 98516785 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: P O BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: P O BOX 2347 CITY: GREENVILLE STATE: SC ZIP: 29602 10KSB 1 FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D) (As last amended by 34-31905, eff. 4/26/93) [X] Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 [No Fee Required] For the fiscal year ended October 31, 1997 or [ ] Transition Report Under to Section 13 or 15(d) of the Securities Exchange Act of 1934 [No Fee Required] For the transition period.........to......... Commission file number 0-10884 SHELTER PROPERTIES IV LIMITED PARTNERSHIP (Name of small business issuer in its charter) South Carolina 57-0721760 (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) (864) 239-1000 Issuer's telephone number Securities registered under Section 12(b) of the Exchange Act: None Securities registered under Section 12(g) of the Exchange Act: Units of Limited Partnership Interest (Title of class) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 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 Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. [X] State issuer's revenues for its most recent fiscal year. $11,270,000 State the aggregate market value of the voting partnership interests held by non-affiliates computed by reference to the price at which the partnership interests were sold, or the average bid and asked prices of such partnership interests, as of October 31, 1997. Market Value information for the Registrant's partnership interests is not available. Should a trading market develop for these interest, it is the Managing General Partners' belief that such trading would not exceed $25,000,000. DOCUMENTS INCORPORATED BY REFERENCE 1. Portions of the Prospectus of Registrant dated June 8, 1982 (included in Registration Statement, No. 2-77217, of Registrant) are incorporated by reference into Parts I and III PART I ITEM 1. DESCRIPTION OF BUSINESS Shelter Properties IV Limited Partnership (the "Registrant" or the "Partnership") is engaged in the business of acquiring, operating and holding real properties for investment. The Registrant acquired five existing apartment properties during 1982 and 1983 and has been operating such properties since that time with the exception of Rushcreek Village Apartments, which was deeded back to the lender in lieu of foreclosure in June 1987, and The Corners Apartments, which was foreclosed upon on November 2, 1992. Commencing June 8, 1982, the Registrant offered through E. F. Hutton & Company Inc. ("Hutton") up to 49,900 Units of Limited Partnership Interest (the "Units") at a purchase price of $1,000 per Unit with a minimum purchase of 5 Units ($5,000) or 2 Units ($2,000) for an Individual Retirement Account. An additional 100 Units were purchased by the Corporate General Partner. Limited partners are not required to make any additional capital contributions. The Units were registered under the Securities Act of 1933 via Registration Statement No. 2-77217 (the "Registration Statement"). Reference is made to the Prospectus of Registrant dated June 8, 1982 (the "Prospectus") contained in said Registration Statement, which is incorporated herein by reference thereto. The offering terminated on December 15, 1982. Upon termination of the offering, the Registrant had accepted subscriptions for 50,000 Units, including 100 Units purchased by the Corporate General Partner, for an aggregate of $50,000,000. The Registrant invested approximately $38,000,000 of such proceeds in five existing apartment properties and thereby completed its acquisition program in March 1983 at approximately the expenditure level estimated in the Prospectus. Funds not expended because they are held as reserves have been invested by the Registrant, in accordance with the policy described in the Prospectus, in U. S. Government securities or other highly liquid, short-term investments where the General Partner believes there is appropriate safety of principal. A further description of the Partnership's business is included in Management's Discussion and Analysis or Plan of Operation included in "Item 6" of this Form 10-KSB. The Registrant has no employees. Management and administrative services are performed by Shelter Realty IV Corporation, the Corporate General Partner, and by Insignia Management Group, L.P., an affiliate of Insignia Financial Group, Inc. ("Insignia"), the ultimate parent company of the Corporate General Partner. Pursuant to a management agreement between them, Insignia Management Group, L.P. provides property management services to the Registrant. The real estate business in which the Partnership is engaged is highly competitive and the Partnership is not a significant factor in this industry. The Registrant's property is subject to competition from similar properties in the vicinity in which the property is located. In addition, various limited partnerships have been formed by the General Partners and/or their affiliates to engage in business which may be competitive with the Registrant. ITEM 2. DESCRIPTION OF PROPERTIES: The following table sets forth the Registrant's investments in properties: Date of Property Purchase Type of Ownership Use Baymeadows Apartments 9/30/82 Fee ownership subject Apartment Jacksonville, Florida to first and second 904 units mortgages. Quail Run Apartments 1/03/83 Fee ownership subject Apartment Columbia, South Carolina to first and second 332 units mortgages. Countrywood Village Apartments 3/31/83 Fee ownership subject Apartment Raleigh, North Carolina to first and second 384 units mortgages. SCHEDULE OF PROPERTIES: (in thousands) Gross Carrying Accumulated Federal Property Value Depreciation Rate Method Tax Basis Baymeadows Apartments $33,252 $17,856 5-36 yrs S/L $ 4,383 Quail Run Apartments 13,295 6,485 5-34 yrs S/L 1,752 Countrywood Village Apts. 13,449 7,928 5-30 yrs S/L 1,846 Total $59,996 $32,269 $ 7,981 See "Note A" to the financial statements included in "Item 7" for a description of the Partnership's depreciation policy. SCHEDULE OF MORTGAGES: (in thousands)
Principal Principal Balance At Stated Balance October 31, Interest Period Maturity Due At Property 1997 Rate Amortized Date Maturity Baymeadows 1st Mortgage $14,179 7.60% (1) 11/15/02 $11,554 2nd Mortgage 493 7.60% (1) 11/15/02 493 Quail Run 1st Mortgage 5,718 7.60% (1) 11/15/02 4,659 2nd Mortgage 199 7.60% (1) 11/15/02 199 Countrywood Village 1st Mortgage 4,430 7.60% (1) 11/15/02 3,610 2nd Mortgage 154 7.60% (1) 11/15/02 154 25,173 Less unamortized discounts (1,106) $24,067
(1)The principal balance is being amortized over 257 months with a balloon payment due November 15, 2002. Average annual rental rate and occupancy for 1997 and 1996 for each property: Average Annual Average Annual Rental Rates Occupancy Property 1997 1996 1997 1996 Baymeadows $6,969 $6,572 95% 96% Quail Run 7,446 7,182 93% 95% Countrywood Village 6,757 6,479 95% 95% As noted under "Item 1. Description of Business," the real estate industry is highly competitive. All of the properties of the Partnership are subject to competition from other residential apartment complexes in the area. The Corporate General Partner believes that all of the properties are adequately insured. The multi-family residential properties' lease terms are for one year or less. No residential tenant leases 10% or more of the available rental space. Real estate taxes and rates in 1997 for each property were: 1997 1997 Billing Rate (in thousands) Baymeadows $ 500* 2.14 Quail Run 167* 1.77 Countrywood 110* 1.24 These properties have a fiscal year end different than the real estate tax year; therefore tax expense does not agree to the 1997 billing. ITEM 3. LEGAL PROCEEDINGS The Partnership is unaware of any pending or outstanding litigation that is not of a routine nature. The Managing General Partner of the Partnership believes that all such pending or outstanding litigation will be resolved without a material adverse effect upon the business, financial condition, or operations of the Partnership. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS During the fiscal year ended October 31, 1997, no matter was submitted to a vote of unit holders through the solicitation of proxies or otherwise. PART II ITEM 5. MARKET FOR PARTNERSHIP EQUITY AND RELATED PARTNER MATTERS As of October 31, 1997, there was minimal trading of the Units in the secondary market establishing a high and low value of $380 and $320, respectively, per Unit quoted in the September/October 1997 edition of The Partnership Spectrum. There are 3,691 holders of record owning an aggregate of 49,995 Units of which at October 31, 1997, Insignia and its affiliates owned 15,775 units. No public trading market has developed for the Units, and it is not anticipated that such a market will develop in the future. During the years ended October 31, 1997 and 1996, distributions of $800,000 and $1,000,000 were paid, respectively. Future distributions will depend on the levels of cash generated from operations, property sales and the availability of cash reserves. Distributions may also be restricted by the requirement to deposit net operating income (as defined in the mortgage note) into the Reserve Account until the Reserve Account is funded in an amount equal to $1,000 per apartment unit for each respective property. (See "Note A" of the financial statements.) ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION This item should be read in conjunction with the consolidated financial statements and other items contained elsewhere in this report. The Partnership's net income as shown in the consolidated statement of operations for the year ended October 31, 1997, was approximately $507,000 versus a net income of approximately $246,000 for the same period in 1996 (see "Note C" of the financial statements for a reconciliation of these amounts to the Partnership's federal taxable losses). The increase in net income for the year ended October 31, 1997, is attributable to an increase in rental income, and a decrease in general and administrative expenses. Rental income increased due to an increase in rental rates at all three investment properties which more than offset the small occupancy decreases at Baymeadows and Quail Run. General and administrative expenses decreased due to a decrease in legal costs. The decrease in legal costs is attributable to a discrimination case at Baymeadows which was settled during November 1996. Partially offsetting the increase in net income was an increase in operating expense which is primarily attributable to exterior painting projects at Quail Run and Baymeadows. These costs were incurred to improve the building exteriors in order to attract new tenants and ultimately increase occupancy at these properties. The Partnership incurred a loss on disposal of property of approximately $39,000 due to a roof replacement project at Quail Run during the period ended October 31, 1997. For the period ended October 31, 1996 the Partnership incurred a loss on disposal of property of approximately $33,000 due to roof replacement projects at Quail Run and Baymeadows. Included in operating expense for the twelve months ended October 31, 1997 is approximately $677,000 of major repair and maintenance comprised primarily of parking lot repairs and exterior painting. Included in operating expense for the twelve months ended October 31, 1996 is approximately $305,000 of major repair and maintenance comprised primarily of window coverings, gutter and parking lot repairs. Management relies on the annual appraisals performed by outside appraisers to assess the impairment of investment properties. There are three recognized approaches or techniques available to the appraiser. When applicable, these approaches are used to process the data considered significant to each to arrive at separate value indications. In all instances the experience of the appraiser, coupled with his objective judgment, plays a major role in arriving at the conclusions of the indicated value from which the final estimate of value is made. The three approaches commonly known are the cost approach, the sales comparison approach, and the income approach. The cost approach is often not considered to be reliable due to the lack of land sales and the significant amount of depreciation and, therefore, is often not presented. Upon receipt of the appraisals, any property which is stated on the books of the Partnership above the estimated value given in the appraisal, is written down to the estimated value given by the appraiser. The appraiser assumes a stabilized occupancy at the time of the appraisal and, therefore, any impairment of value is considered to be permanent by Management. For the year ended October 31, 1997, no adjustments for the impairment of value were recorded. As part of the ongoing business plan of the Partnership, the Corporate General Partner monitors the rental market environment at 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 Corporate 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 assurance that the Corporate General Partner will be able to sustain this plan. At October 31, 1997, the Partnership had cash and cash equivalents of approximately $1,847,000 as compared to approximately $2,291,000 at October 31, 1996. The net decrease in cash and cash equivalents for the years ended December 31, 1997 and 1996 is $444,000 and $468,000, respectively. Net cash provided by operating activities decreased primarily due to an increase in cash used for other liabilities as a result of accrued legal and settlement costs associated with litigation. Net cash used in investing activities remained stable. Net cash used in financing activities decreased as a result of a reduction in partners' distributions made during the year ended October 31, 1997. The Partnership has budgeted approximately $1.5 million in capital improvements for the three properties in 1998. Budgeted capital improvements at Baymeadows include major carpet replacement, major landscaping, exterior painting, and gutter repairs. Budgeted capital improvements at Quail Run include roof replacement and major carpet replacement. Countrywood has budgeted major carpet replacement in 1998. These capital expenditures will be incurred only if cash is available from operations or from partnership reserves mentioned previously. 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 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 $24,067,000, net of discount, is amortized over 257 months with balloon payments of approximately $20,669,000 due on November 15, 2002, at which time the properties will either be refinanced or sold. Cash distributions of $800,000 and $1,000,000 were made during the year ended October 31, 1997 and October 31, 1996, respectively. These distributions were made from net cash from operations as defined by the Partnership Agreement. Future cash distributions will depend on the levels of net cash generated from operations, property sales, and the availability of cash reserves. The Corporate General Partner is evaluating the feasibility of making a distribution of net cash provided by operations in February 1998. Year 2000 The Partnership is dependent upon the Corporate 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 project is estimated to be completed not later than December 31, 1998, which is prior to any anticipated impact on its operating systems. The Corporate 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 completely timely, the Year 2000 Issue could have a material impact on the operations of the Partnership. Other Certain items discussed in this annual report may constitute forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 (the "Reform Act") and such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this annual report. The Partnership expressly disclaims any obligation or undertaking to release publicly any updates of 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. ITEM 7. FINANCIAL STATEMENTS SHELTER PROPERTIES IV LIMITED PARTNERSHIP LIST OF FINANCIAL STATEMENTS Report of Ernst & Young LLP, Independent Auditors Consolidated Balance Sheet - October 31, 1997 Consolidated Statements of Operations - Years ended October 31, 1997 and 1996 Consolidated Statements of Changes in Partners' Capital - Years ended October 31, 1997 and 1996 Consolidated Statements of Cash Flows - Years ended October 31, 1997 and 1996 Notes to Consolidated Financial Statements Report of Ernst & Young LLP, Independent Auditors The Partners Shelter Properties IV Limited Partnership We have audited the accompanying consolidated balance sheet of Shelter Properties IV Limited Partnership as of October 31, 1997, and the related consolidated statements of operations, changes in partners' capital and cash flows for each of the two years in the period ended October 31, 1997. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Partnership's management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Shelter Properties IV Limited Partnership at October 31, 1997, and the results of its operations and its cash flows for each of the two years in the period ended October 31, 1997, in conformity with generally accepted accounting principles. /s/ERNST & YOUNG LLP Greenville, South Carolina December 2, 1997 SHELTER PROPERTIES IV LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEET (in thousands, except unit data) October 31, 1997 Assets Cash and cash equivalents $ 1,847 Receivables and deposits 1,229 Restricted escrows 1,750 Other assets 532 Investment properties (Notes B & E): Land $ 3,442 Buildings and related personal property 56,554 59,996 Less accumulated depreciation (32,269) 27,727 $ 33,085 Liabilities and Partners' Capital Liabilities Accounts payable $ 104 Tenant security deposit liabilities 277 Accrued property taxes 630 Other liabilities 228 Mortgage notes payable (Note B) 24,067 Partners' Capital General partners $ (7) Limited partners (49,995 units issued and outstanding) 7,786 7,779 $ 33,085 See Accompanying Notes to Consolidated Financial Statements SHELTER PROPERTIES IV LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except unit data) Years Ended October 31, 1997 1996 Revenues: Rental income $ 10,672 $ 10,282 Other income 598 628 Total revenues 11,270 10,910 Expenses: Operating 5,018 4,868 General and administrative 274 390 Property management fees 558 540 Depreciation 1,931 1,846 Interest 2,220 2,257 Property taxes 762 763 Total expenses 10,763 10,664 Net income (Note C) $ 507 $ 246 Net income allocated to general partners (1%) $ 5 $ 2 Net income allocated to limited partners (99%) 502 244 $ 507 $ 246 Net income per limited partnership unit $ 10.04 $ 4.86 See Accompanying Notes to Consolidated Financial Statements SHELTER PROPERTIES IV LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (in thousands, except for unit data) Limited Partnership General Limited Units Partners Partners Total Original capital contributions 50,000 $ 2 $ 50,000 $ 50,002 Partners' capital at October 31, 1995 49,995 $ 4 $ 8,822 $ 8,826 Net income for the year ended October 31, 1996 -- 2 244 246 Distributions to Partners -- (10) (990) (1,000) Partners' capital at October 31, 1996 49,995 (4) 8,076 8,072 Net income for the year ended October 31, 1997 -- 5 502 507 Distributions to Partners -- (8) (792) (800) Partners' capital at October 31, 1997 49,995 $ (7) $ 7,786 $ 7,779 See Accompanying Notes to Consolidated Financial Statements SHELTER PROPERTIES IV LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Years Ended October 31, 1997 1996 Cash flows from operating activities: Net income $ 507 $ 246 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,931 1,846 Amortization of discounts and loan costs 276 267 Loss on disposal of property 39 33 Change in accounts: Receivables and deposits (86) (159) Other assets (53) (21) Accounts payable (170) (194) Tenant security deposit liabilities 2 37 Accrued property taxes (12) 41 Other liabilities (269) 175 Net cash provided by operating activities 2,165 2,271 Cash flows from investing activities: Property improvements and replacements (1,024) (1,034) Deposits to restricted escrows (72) (44) Net cash used in investing activities (1,096) (1,078) Cash flows from financing activities: Payments on mortgage notes payable (713) (661) Partners' distributions (800) (1,000) Net cash used in financing activities (1,513) (1,661) Net decrease in cash (444) (468) Cash and cash equivalents at beginning of period 2,291 2,759 Cash and cash equivalents at end of period $ 1,847 $ 2,291 Supplemental disclosure of cash flow information: Cash paid for interest $ 1,943 $ 1,995 See Accompanying Notes to Consolidated Financial Statements SHELTER PROPERTIES IV LIMITED PARTNERSHIP Notes to Consolidated Financial Statements NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization: Shelter Properties IV Limited Partnership (the "Partnership" or "Registrant") was organized as a limited partnership under the laws of the State of South Carolina pursuant to a Certificate and Agreement of Limited Partnership filed August 21, 1981. The general partner responsible for management of the Partnership's business is Shelter Realty IV Corporation, a South Carolina corporation (the "Corporate General Partner"). The only other general partner of the Partnership, N. Barton Tuck, Jr. is effectively prohibited by the Partnership's partnership agreement (the "Partnership Agreement") from participating in the management of the Partnership. The Corporate General Partner is an indirect subsidiary of Insignia Financial Group, Inc. ("Insignia"). The directors and officers of the Corporate General Partner also serve as executive officers of Insignia. The Partnership Agreement terminates December 31, 2022. The Partnership commenced operations on July 22, 1982, and completed its acquisition of apartment properties on March 31, 1983. The Partnership operates three apartment properties located in the Southeast. Principles of Consolidation: The financial statements include all the accounts of the Partnership and its 99.99% owned partnership. The General Partner of the consolidated partnership is Shelter Realty IV Corporation. Shelter Realty IV Corporation may be removed by the Registrant; therefore, the consolidated partnership is controlled and consolidated by the Registrant. All significant interpartnership balances have been eliminated. Uses of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Allocation of Cash Distributions: Cash distributions by the Partnership are allocated between general and limited partners in accordance with the provisions of the Partnership Agreement. The Partnership Agreement provides that net cash from operations means revenue received less operating expenses paid, adjusted for certain specified items which primarily include mortgage payments on debt, property improvements and replacements not previously reserved, and the effects of other adjustments to reserves including reserve amounts deemed necessary by the Corporate General Partner. In the following notes to financial statements, whenever net cash from operations is used, it has the aforementioned meaning. The following is a reconciliation of the subtotal in the accompanying statements of cash flows captioned net cash provided by operating activities to net cash from operations, as defined in the Partnership Agreement. However, "net cash from operations" should not be considered an alternative to net income as an indicator of the Partnership's operating performance or to cash flows as a measure of liquidity. Years Ended October 31, 1997 1996 (in thousands) Net cash provided by operating activities $ 2,165 $ 2,271 Property improvements and replacements (1,024) (1,034) Payments on mortgage notes payable (713) (661) Changes in reserves for net operating liabilities 588 121 Changes in restricted escrows, net (72) (44) Additional operating reserves (132) (148) Net cash from operations $ 812 $ 505 The Corporate General Partner believed it to be in the best interest of the Partnership to reserve net cash from operations of approximately $132,000 and $148,000 at October 31, 1997 and 1996, respectively, to fund continuing capital improvements at the three properties. Distributions made from reserves no longer considered necessary by the general partners are considered to be additional net cash from operations for allocation purposes. Cash distributions of $800,000 and $1,000,000 were made during the years ended October 31, 1997 and 1996, respectively. The Partnership Agreement provides that 99% of distributions of net cash from operations are allocated to the limited partners until they receive net cash from operations for such fiscal year equal to 7% of their adjusted capital values (as defined in the Partnership Agreement), at which point the general partners will be allocated all net cash from operations until they have received distributions equal to 10% of the aggregate net cash from operations distributed to partners for such fiscal year. Thereafter, the general partners will be allocated 10% of any distributions of remaining net cash from operations for such fiscal year. All distributions of distributable net proceeds (as defined in the Partnership Agreement) from property dispositions and refinancings will be allocated to the limited partners until each limited partner has received an amount equal to a cumulative 7% per annum of the average of the limited partners' adjusted capital value, less any prior distributions of net cash from operations and distributable net proceeds, and has also received an amount equal to the limited partners' adjusted capital value. Thereafter, the general partners receive 1% of the selling prices of properties sold where they acted as a broker, and then the limited partners will be allocated 85% of any remaining distributions of distributable net proceeds and the general partners will receive 15%. Distributions may be restricted by the requirement to deposit net operating income (as defined in the mortgage note) into the Reserve Account until the Reserve Account is funded in an amount equal to $1,000 per apartment unit for each respective property. Allocation of Profits, Gains and Losses: Profits, gains and losses of the Partnership are allocated between general and limited partners in accordance with the provisions of the Partnership Agreement. Profits, not including gains from property dispositions, are allocated as if they were distributions of net cash from operations. Any gain from property dispositions attributable to the excess, if any, of the indebtedness relating to a property immediately prior to the disposition of such property over the Partnership's adjusted basis in the property shall be allocated to each partner having a negative capital account balance, to the extent of such negative balance. The balance of any gain shall be treated on a cumulative basis as if it constituted an equivalent amount of distributable net proceeds and shall be allocated to the general partners to the extent that general partners would have received distributable net proceeds in connection therewith; the balance shall be allocated to the limited partners. However, the interest of the general partners will be equal to at least 1% of each gain at all times during the existence of the Partnership. All losses, including losses attributable to property dispositions, are allocated 99% to the limited partners and 1% to the general partners. Accordingly, net income as shown in the statements of operations and changes in partners' capital for 1997 and 1996 were allocated 99% to the limited partners and 1% to the general partners. Net income per limited partnership unit for each such year was computed as 99% of net income divided by 49,995 units outstanding. Fair Value of Financial Instruments: "Statement of Financial Accounting Standards ("SFAS") No. 107, Disclosures about Fair Value of Financial Instruments", as amended by "SFAS No. 119, Disclosures about Derivative Financial Instruments and Fair Value of Financial Instruments", requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. Fair value is defined in the SFAS as the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Partnership believes that the carrying amount of its financial instruments (except for long term debt) approximates their fair value due to the short term maturity of these instruments. The fair value of the Partnership's long term debt, after discounting the scheduled loan payments to maturity, approximates its carrying balance. Other Reserves: The general partners may designate a portion of cash generated from operations as "other reserves" in determining net cash from operations. The general partners designated as other reserves an amount equal to the net liabilities related to the operations of apartment properties during the current fiscal year that are expected to require the use of cash during the next fiscal year. The changes in other reserves during 1997 and 1996 were approximately $588,000 and approximately $121,000 respectively, which amounts were determined by considering changes in the balances of receivables and deposits, other assets, accounts payable, tenant security deposit liabilities, accrued taxes and other liabilities. At this time, the general partners expect to continue to adjust other reserves based on the net change in the aforementioned account balances. Restricted Escrow: Reserve Account: A general Reserve Account was established in 1992 with the refinancing proceeds for each mortgaged property. These funds were established to cover necessary repairs and replacements of existing improvements, debt service, out of pocket expenses incurred for ordinary and necessary administrative tasks, and payment of real property taxes and insurance premiums. The Partnership is required to deposit net operating income (as defined in the mortgage note) from each refinanced property to the respective reserve account until they equal $1,000 per apartment unit or $1,620,000 in total. The balance at October 31, 1997, is approximately $1,750,000, which includes interest. Depreciation: Depreciation is provided by the straight-line method over the estimated lives of the apartment properties and related personal property. For Federal income tax purposes, the accelerated cost recovery method is used (1) for real property over 15 years for additions prior to March 16, 1984, 18 years for additions after March 15, 1984 and before May 9, 1985, and 19 years for additions after May 8, 1985, and before January 1, 1987, and (2) for personal property over 5 years for additions prior to January 1, 1987. As a result of the Tax Reform Act of 1986, for additions after December 31, 1986, the modified accelerated cost recovery method is used for depreciation of (1) real property over 27 1/2 years and (2) personal property additions over 7 years. Loan Costs: Loan costs of approximately $849,000 less accumulated amortization of approximately $418,000 are included in other assets and are being amortized on a straight-line basis over the life of the loans. Cash and Cash Equivalents: Includes cash on hand and in banks, money market funds and certificates of deposit with original maturities less than 90 days. At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits. Tenant Security Deposits: The Partnership requires security deposits from lessees for the duration of the lease and such deposits are included in receivables and deposits. Deposits are refunded when the tenant vacates, provided the tenant has not damaged its space and is current on its rental payments. Leases: The Partnership generally leases apartment units for twelve-month terms or less. The Partnership recognizes income as earned on its leases. In addition, the Corporate General Partner's policy is to offer rental concessions during particularly slow months or in response to heavy competition from other similar complexes in the area. Concessions are charged to expense as incurred. Investment Properties: Investment properties consist of three apartment complexes and are stated at cost. Acquisition fees are capitalized as a cost of real estate. In accordance with Financial Accounting Standards Board Statement No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, the Partnership records impairment losses on long- lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. Costs of apartment properties that have been permanently impaired have been written down to appraised value. The Corporate General Partner relies on the annual appraisals performed by the outside appraisers for the estimated value of the Partnership's properties. There are three recognized approaches or techniques available to the appraiser. When applicable, these approaches are used to process the data considered significant to each to arrive at separate value indications. In all instances the experience of the appraiser, coupled with his objective judgment, plays a major role in arriving at the conclusions of the indicated value from which the final estimate of value is made. The three approaches commonly known are the cost approach, the sales comparison approach, and the income approach. The cost approach is often not considered to be reliable due to the lack of land sales and the significant amount of depreciation and, therefore, is often not presented. Upon receipt of the appraisals, any property which is stated on the books of the Partnership above the estimated value given in the appraisal, is written down to the estimated value given by the appraiser. The appraiser assumes a stabilized occupancy at the time of the appraisal and, therefore, any impairment of value is considered to be permanent by the Corporate General Partner. No adjustments for the impairment of value were recorded in the years ended October 31, 1997 or 1996. Advertising: The Partnership expenses the costs of advertising as incurred. Advertising expense, included in operating expenses, was approximately $140,000 and $105,000 for the years ended October 31, 1997 and 1996, respectively. Reclassification: Certain reclassifications have been made to the 1996 information to conform to the 1997 presentation. NOTE B - MORTGAGE NOTES PAYABLE The principal terms of mortgage notes payable are as follows (in thousands): Principal Monthly Principal Balance At Payment Stated Balance October 31, Including Interest Maturity Due At Property 1997 Interest Rate Date Maturity Baymeadows 1st Mortgage $14,179 $ 126 7.60% 11/15/02 $11,554 2nd Mortgage 493 3 7.60% 11/15/02 493 Quail Run 1st Mortgage 5,718 51 7.60% 11/15/02 4,659 2nd Mortgage 199 1 7.60% 11/15/02 199 Countrywood Village 1st Mortgage 4,430 39 7.60% 11/15/02 3,610 2nd Mortgage 154 1 7.60% 11/15/02 154 25,173 $ 221 Less unamortized discounts (1,106) $24,067 The Partnership exercised interest rate buy-down options for the three properties when the debt was refinanced, reducing the stated rate from 8.76% to 7.6%. The fee for the interest rate reduction amounted to approximately $1,964,000 and is being amortized as a loan discount on the interest method over the life of the loans. The unamortized discount fee is reflected as a reduction of the mortgage notes payable and increases the effective rate of the debt to 8.76%. The mortgage notes payable are non-recourse and are secured by pledge of the respective apartment properties and by pledge of revenues from the respective apartment properties. The notes cannot be prepaid prior to November 15, 1997, thereafter, they require prepayment penalties if repaid prior to maturity and prohibit resale of the property subject to existing indebtedness. The estimated fair values of the Partnership's aggregate debt is approximately $25,173,000. This estimate is not necessarily indicative of the amounts the Partnership may pay in actual market transactions. Scheduled principal payments of mortgage notes payable subsequent to October 31, 1997, are as follows (in thousands): 1998 $ 770 1999 830 2000 896 2001 966 2002 21,711 $25,173 NOTE C - INCOME TAXES The Partnership has received a ruling from the Internal Revenue Service that it will be classified as a partnership for Federal income tax purposes. Accordingly, no provision for income taxes is made in the financial statements of the Partnership. Taxable income or loss of the Partnership is reported in the income tax returns of its partners. The following is a reconciliation of reported net income (loss) and Federal taxable income (loss) (in thousands, except per unit data): 1997 1996 Net income as reported $ 507 $ 246 Add (deduct): Amortization of present value discounts (6) (14) Depreciation differences (1,160) (1,486) Change in prepaid rental 203 56 Accrued expenses (100) 14 Other 40 33 Federal taxable loss $ (516) $(1,151) Federal taxable loss per limited partnership unit $(10.21) $(22.79) The following is a reconciliation between the Partnership's reported amounts and Federal tax basis of net assets and liabilities (in thousands): Net assets as reported $ 7,779 Land and buildings 9,256 Accumulated depreciation (29,002) Syndication 6,293 Other 315 Net liabilities - tax basis $ (5,359) NOTE D - TRANSACTIONS WITH AFFILIATED PARTIES The Partnership has no employees and is dependent on the Corporate General Partner and its affiliates for the management and administration of all partnership activities. The Partnership Agreement provides for payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. Balances and other transactions with affiliates of Insignia Financial Group, Inc. in 1997 and 1996 are (in thousands): For The Years Ended October 31, 1997 1996 Property management fees $ 558 $ 540 Reimbursement for services of affiliates 223 196 For the period of November 1, 1995 to August 31, 1997, the Partnership insured its properties under a master policy through an agency and insurer unaffiliated with the Corporate General Partner. An affiliate of the Corporate 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 current year's master policy. The agent assumed the financial obligations to the affiliate of the Corporate General Partner who received payments on these obligations from the agent. The amount of the Partnership's insurance premiums which accrued to the benefit of the affiliate of the Corporate General Partner by virtue of the agent's obligations was not significant. NOTE E - REAL ESTATE AND ACCUMULATED DEPRECIATION Investment Properties (in thousands)
Initial Cost To Partnership Buildings Cost and Related Capitalized Personal Subsequent to Description Encumbrances Land Property Acquisition Baymeadows Jacksonville, Florida $14,672 $ 1,884 $26,916 $ 4,452 Quail Run Columbia, South Carolina 5,917 875 10,642 1,778 Countrywood Village Raleigh, North Carolina 4,584 683 10,711 2,055 Totals $25,173 $ 3,442 $48,269 $ 8,285
(in thousands) Gross Amount At Which Carried At October 31, 1997 Buildings And Related Personal Accumulated Date of Date Depreciable Description Land Property Total Depreciation Construction Acquired Life-Years Baymeadows Jacksonville, Florida $ 1,884 $31,368 $33,252 $17,856 1969-1975 09/30/82 5-36 Quail Run Columbia, South Carolina 875 12,420 13,295 6,485 1970-1973 01/03/83 5-34 Countrywood Village Raleigh, North Carolina 683 12,766 13,449 7,928 1973-1974 03/31/83 5-30 Totals $ 3,442 $56,554 $59,996 $32,269
Reconciliation of "Real Estate and Accumulated Depreciation":
Years Ended October 31, 1997 1996 (in thousands) Real Estate Balance at beginning of year $59,038 $58,092 Property improvements 1,024 1,034 Disposals of property (66) (88) Balance at End of Year $59,996 $59,038 Accumulated Depreciation Balance at beginning of year $30,365 $28,574 Additions charged to expense 1,931 1,846 Disposals of property (27) (55) Balance at end of year $32,269 $30,365
The aggregate cost of the real estate for Federal income tax purposes at October 31, 1997 and 1996 is approximately $69,252,000 and approximately $68,228,000, respectively. The accumulated depreciation taken for Federal income tax purposes at October 31, 1997 and 1996 is approximately $61,270,000 and approximately $58,179,000, respectively. ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. PART III ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS, COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT The Registrant has no officers or directors. The Individual and Corporate General Partners are as follows: Individual General Partner - N. Barton Tuck, Jr., age 59, is the Individual General Partner of the Registrant. Mr. Tuck is Chairman of GolfSouth Management, Inc. Until August 1990, he served as Chairman and Chief Executive Officer of U.S. Shelter Corporation ("Shelter"), the former parent of AmReal Corporation (parent of the Corporate General Partner of the Partnership). For six years prior to 1966, Mr. Tuck was employed in Greenville, South Carolina by the certified public accounting firm of S.D. Leidesdorf & Company. From 1966 to 1970, he was a registered representative with the investment banking firm of Harris Upham & Co., Inc. in Greenville, South Carolina. Since 1970, Mr. Tuck has been engaged in arranging equity investments for individuals and partnerships. Mr. Tuck is a graduate of the University of North Carolina. Mr. Tuck has delegated to the Corporate General Partner all of his authority, as a general partner of the Partnership, to manage and control the Partnership and its business and affairs. Corporate General Partner - The names and ages of, as well as the positions and offices held by, the executive officers and directors of Shelter Realty IV Corporation ("Corporation") are set forth below. There are no family relationships between or among any officers or directors. Name Age Position William H. Jarrard, Jr. 51 President and Director Ronald Uretta 41 Vice President, Treasurer and Secretary Robert D. Long, Jr. 30 Vice President Kelley M. Buechler 40 Assistant Secretary Mr. Jarrard, who had previously served as Vice President, became President in August 1994. William H. Jarrard, Jr. has acted as Senior Vice President of Insignia Properties Trust ("IPT"), parent of the Corporation, since May 1997. Mr. Jarrard previously acted as Managing Director - Partnership Administration of Insignia from January 1991 through September 1997 and served as Managing Director - Partnership Administration and Asset Management from July 1994 until January 1996. Ronald Uretta has been Insignia's Treasurer since January 1992 and became Secretary of the Corporate General Partner effective January 28, 1998. Since August 1996, he has also served as Chief Operating Officer. He also served as Secretary from January 1992 to June 1994 and as Chief Financial Officer from January 1992 to August 1996. Since September 1990, Mr. Uretta has also served as the Chief Financial Officer and controller of MAG. Robert D. Long, Jr. became Vice President of the Corporation on January 2, 1998. Mr. Long joined Metropolitan Asset Enhancement, L.P. ("MAE"), an affiliate of Insignia, in September 1993. Since 1994 he has acted as Vice President/Chief Accounting Officer of the MAE subsidiaries. Mr. Long was an accountant for Insignia until joining MAE in 1993. Prior to joining Insignia, Mr. Long was an auditor for the State of Tennessee and was associated with the accounting firm of Harsman Lewis and Associates. Kelley M. Buechler is Assistant Secretary of the Corporate General Partner and Assistant Secretary of Insignia since 1991. During the five years prior to joining Insignia in 1991, she served in similar capacities with U.S. Shelter. ITEM 10. EXECUTIVE COMPENSATION Neither the Individual General Partner nor any of the directors and officers of the Corporate General Partner received any remuneration from the Registrant. ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT Except as noted below, no person or entity was known by the Registrant to be the beneficial owner of more than 5% of the Limited Partnership Units of the Registrant as of October 31, 1997. Number Entity of Units Percentage Insignia Financial Group, Inc. 4,263 8.53% Market Ventures, L.L.C. 11,512 23.03% No director or officer of the Corporate General Partner owns any Units. The Corporate General Partner owns 100 Units as required by the terms of the partnership agreement governing the Partnership. ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS The Individual General Partner and the Corporate General Partner received cash distributions of $8,000 and $10,000 from operations as General Partners during the fiscal year ended October 31, 1997 and 1996, respectively. For a description of the share of cash distributions from operations, if any, to which the general partners are entitled, reference is made to the material contained in the Prospectus under the heading "PROFITS AND LOSSES AND CASH DISTRIBUTIONS." The Registrant has a property management agreement with Insignia Management Group, L.P. pursuant to which Insignia Management Group, L.P. has assumed direct responsibility for day-to-day management of the Partnership's properties. This service includes the supervision of leasing, rent collection, maintenance, budgeting, employment of personnel, payment of operating expenses, etc. Insignia Management Group, L.P. receives a property management fee equal to 5% of apartment revenues. During the fiscal year ended October 31, 1997, Insignia Management Group, L.P. received approximately $558,000 in fees for property management. ITEM 13. 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 filed in the fourth quarter of fiscal year 1997: None. SIGNATURES In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SHELTER PROPERTIES IV LIMITED PARTNERSHIP By: Shelter Realty IV Corporation Corporate General Partner By: /s/William H. Jarrard, Jr. William H. Jarrard, Jr. President Date: January 28, 1998 In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated. /s/William H. Jarrard, Jr. Date: January 28, 1998 William H. Jarrard, Jr. President and Director /s/Ronald Uretta Date: January 28, 1998 Ronald Uretta Treasurer (Principal Financial Officer and Principal Accounting Officer) EXHIBIT INDEX EXHIBIT 3 See Exhibit 4(a) 4 (a) Amended and Restated Certificate and Agreement of Limited Partnership [included as Exhibit A to the Prospectus of Registrant dated June 8, 1982 contained in Amendment No. 1 to Registration Statement No. 2- 77217, of Registrant filed June 8, 1982 (the "Prospectus") and incorporated herein by reference]. (b) Subscription Agreement and Signature Page [included as Exhibit 8 to the Prospectus and incorporated herein by reference]. 10(I) Contracts related to acquisition of properties: (a) Real Estate Sales Agreement dated May 5, 1982, First Modification to Real Estate Sales Agreement dated June 18, 1982 (filed as Exhibit 12(B) to Amendment No. 1 to Registration Statement No. 2-77217 of Registrant filed June 8, 1982 and incorporated herein by reference) and Second Modification to Real Estate Sales Agreement dated September 30, 1982 between Baymeadows Associates and U.S. Shelter Corporation to purchase Baymeadows Apartments (Filed as Exhibit 10(a) to Form 10-K of Registrant dated January 26, 1983 and incorporated herein by reference). (b) Agreement for Purchase and Sale dated May 14, 1982 between Lincoln Spartanburg Corners Associates and U.S. Shelter Corporation to purchase The Corners Apartments. (Filed as Exhibit 12(A) to Amendment No. 1 to Registration Statement, No. 2-77217, of Registrant filed June 8, 1982 and incorporated herein by reference). (c) Real Estate Purchase Agreement dated October 11, 1982 and Second Addendum to Real Estate Purchase Agreement dated December 10, 1982 between Rushcreek Village Apartments, Ltd. and U.S. Shelter Corporation to purchase Rushcreek Village Apartments. (Filed as Exhibit 10(a) to Form 8-K of Registrant dated December 15, 1982 and incorporated herein by reference). (d) Real Estate Purchase Agreement dated December 3, 1982 between Quail Run Apartments, a Limited Partnership and Percival Partnership and U.S. Shelter Corporation to purchase Quail Run Apartments. (Filed as Exhibit 10(b) to Form 8-K of Registrant dated December 15, 1982 and incorporated herein by reference). (e) Real Estate Purchase Agreement dated March 13, 1983 between Europco Management Company of America, Inc. and U.S. Shelter Corporation to purchase Countrywood Village Apartments. (Filed as Exhibit 10 to Form 8-K of Registrant dated March 31, 1983 and incorporated herein by reference). (II) Form of Management Agreement with U.S. Shelter Corporation subsequently assigned to Shelter Management Group, L.P. (now known as Insignia Management Group, L.P.) [Filed with Amendment No. 1 of Registration Statement No. 2-77217 of Registrant filed June 8, 1982 and incorporated herein by reference]. (III) Contracts related to refinancing of debt: (a) First Deeds of Trust and Security Agreements dated October 28, 1992 between Shelter Properties IV Limited Partnership and Joseph Philip Forte (Trustee) and First Commonwealth Realty Credit Corporation, a Virginia Corporation, securing the following properties: Baymeadows, Quail Run and Countrywood Village.* (b) Second Deeds of Trust and Security Agreements dated October 28, 1992 between Shelter Properties IV Limited Partnership and Joseph Philip Forte (Trustee) and First Commonwealth Realty Credit Corporation, a Virginia Corporation, securing the following properties: Baymeadows, Quail Run and Countrywood Village.* (c) First Assignments of Leases and Rents dated October 28, 1992 between Shelter Properties IV Limited Partnership and Joseph Philip Forte (Trustee) and First Commonwealth Realty Credit Corporation, a Virginia Corporation, securing the following properties: Baymeadows, Quail Run and Countrywood Village.* (d) Second Assignments of Leases and Rents dated October 28, 1992 between Shelter Properties IV Limited Partnership and Joseph Philip Forte (Trustee) and First Commonwealth Realty Credit Corporation, a Virginia Corporation, securing the following properties: Baymeadows, Quail Run and Countrywood Village. * (e) First Deeds of Trust Notes dated October 28, 1992 between Shelter Properties IV Limited Partnership and First Commonwealth Realty Credit Corporation, relating to the following properties: Baymeadows, Quail Run and Countrywood Village. (f) Second Deeds of Trust Notes dated October 28, 1992 between Shelter Properties IV Limited Partnership and First Commonwealth Realty Credit Corporation, relating to the following properties: Baymeadows, Quail Run and Countrywood Village.* *Filed as Exhibits 10 (iii) a through 10 (iii) f, respectively, to Form 10-KSB - Annual or Transitional Report filed January 29, 1993 and incorporated herein by reference. 22 Subsidiaries of the Registrant. 27 Financial Data Schedule. 28 (a) Prospectus of Registrant dated June 8, 1982 (included in Registration Statement No. 2-77217 of Registrant and incorporated herein by reference). (b) Agreement of Limited Partnership for Quail Run IV Limited Partnership between Shelter IV GP Limited Partnership and Shelter Properties IV Limited Partnership entered into on February 12, 1992. (Filed as Exhibit 28 to Form 10-QSB - Quarterly or Transitional Report filed June 11, 1993 and incorporated herein by reference.) EX-27 2
5 This schedule contains summary financial information extracted from Shelter Properties IV Limited Partnership 1997 Year-End 10-KSB and is qualified in its entirety by reference to such 10-KSB filing. 0000702174 SHELTER PROPERTIES IV LIMITED PARTNERSHIP 1,000 12-MOS OCT-31-1997 OCT-31-1997 1,847 0 1,229 0 0 0 59,996 (32,269) 33,085 0 24,067 0 0 0 7,779 33,085 0 11,270 0 0 10,763 0 2,220 0 0 0 0 0 0 507 10.04 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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