-----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, KrxyEIehJDdZ6EXmN9Q50XnQUntTl25qzGCNW+MxlMBixTL6hp7rShzCia6TPT0T J5cvUTrCUKJIhEcvd25L8w== 0000710389-95-000003.txt : 19951130 0000710389-95-000003.hdr.sgml : 19951130 ACCESSION NUMBER: 0000710389-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KRUPP REALTY LTD PARTNERSHIP IV CENTRAL INDEX KEY: 0000710389 STANDARD INDUSTRIAL CLASSIFICATION: 6500 IRS NUMBER: 042772783 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11987 FILM NUMBER: 95591479 BUSINESS ADDRESS: STREET 1: C/O BERKSHIRE REALTY AFFILIATES STREET 2: 470 ATLANTIC AVENUE CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 6174232233 MAIL ADDRESS: STREET 1: C/O BERKSHIRE REALTY AFFILIATES STREET 2: 470 ATLANTIC AVENUE CITY: BOSTON STATE: MA ZIP: 02210 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-11987 Krupp Realty Limited Partnership-IV Massachusetts 04-2772783 (State or other jurisdiction of (IRS employer incorporation or organization) identification no.) 470 Atlantic Avenue, Boston, Massachusetts 02210 (Address of principal executive offices) (Zip Code) (617) 423-2233 (Registrant's telephone number, including area code) 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 KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
ASSETS September 30, December 31, 1995 1994 Multi-family apartment complexes, less accumulated depreciation of $22,164,276 and $20,636,291, respectively $17,488,631 $18,714,181 Cash and cash equivalents 2,351,894 2,500,074 Other investments (Note 3) 246,429 - Cash restricted for capital improvements 21,714 20,340 Prepaid expenses and other assets 636,402 723,507 Deferred expenses, net of accumulated amortization of $89,991 and $55,358, respectively 308,667 347,041 Total assets $21,053,737 $22,305,143 LIABILITIES AND PARTNERS' DEFICIT Mortgage notes payable $21,121,965 $21,667,289 Other liabilities 1,007,295 925,234 Total liabilities 22,129,260 22,592,523 Partners' equity (deficit) (Note 2) Limited Partners (30,000 units outstanding) 434,197 1,182,933 Original Limited Partners (1,240,418) (1,208,892) General Partners (269,302) (261,421) Total Partner's deficit (1,075,523) (287,380) Total liabilities and partners' deficit $21,053,737 $22,305,143
The accompanying notes are an integral part of the financial statements. KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended September 30, September 30, 1995 1994 1995 1994 Revenues: Rental income $1,726,117 $1,694,116 $5,172,739 $4,966,195 Other income 43,634 27,784 123,553 86,315 Total revenues 1,769,751 1,721,900 5,296,292 5,052,510 Expenses: Operating (including reimbursements of $33,220, $73,000, $69,491 and $219,105, respectively) 511,724 526,636 1,395,640 1,581,904 Maintenance 177,516 200,040 452,916 455,883 General and administrative (including reimbursements to affiliates of $9,858, $16,457, $29,576 and $49,531, respectively) 44,344 48,969 97,136 104,560 Real estate taxes 184,993 141,565 483,799 397,732 Management fees paid to affiliates 75,161 66,436 215,260 189,668 Depreciation and amortization 528,846 518,073 1,568,300 1,581,417 Interest 327,786 410,798 986,305 1,125,519 Total expenses 1,850,370 1,912,517 5,199,356 5,436,683 Income(loss) before minority interest (80,619) (190,617) 96,936 (384,173) Minority interest 481 1,099 (1,017) 1,496 Net income (loss) $ (80,138) $ (189,518) $ 95,919 $ (382,677) Allocation of net income(loss) (Note 2): Per Unit of Investor Limited Partner Interest (30,000 Units outstanding): $ (2.54) $ (6.00) $ 3.04 $ (12.12) Original Limited Partner $ (3,206) $ (7,581) $ 3,836 $ (15,307) General Partners $ (801) $ (1,895) $ 960 $ (3,827)
The accompanying notes are an integral part of the financial statements. KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 1995 1994 Operating activities: Net income(loss) $ 95,919 $ (382,677) Adjustments to reconcile net income(loss) to net cash provided by operating activities: Depreciation and amortization 1,568,300 1,581,417 Decrease in prepaid expenses and other assets 87,105 243,412 Increase in other liabilities 82,061 73,131 Net cash provided by operating activities 1,833,385 1,515,283 Investing activities: Increase in other investments (246,429) - Increase in cash restricted for capital improvements (47,145) - Additions to fixed assets (302,435) (231,922) Releases from cash restricted for capital improvements 45,771 148,974 Net cash used in investing activities (550,238) (82,948) Financing activities: Proceeds from refinancing mortgage note payable - 7,000,000 Repayment of mortgage note payable - (7,623,487) Increase deferred expenses (1,941) (195,143) Distributions (884,062) (147,372) Principal payments on mortgage notes payable (545,324) (523,973) Net cash used in financing activities (1,431,327) (1,489,975) Net decrease in cash and cash equivalents (148,180) (57,640) Cash and cash equivalents, beginning of period 2,500,074 2,718,901 Cash and cash equivalents, end of period $ 2,351,894 $ 2,661,261
The accompanying notes are an integral part of the financial statements. KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Accounting Policies Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in this report on Form 10-Q pursuant to the Rules and Regulations of the Securities and Exchange Commission. In the opinion of the General Partners of Krupp Realty Limited Partnership-IV and Subsidiaries (the "Partnership"), the disclosures contained in this report are adequate to make the information presented not misleading. See Notes to Consolidated Financial Statements included in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994 for additional information relevant to significant accounting policies followed by the Partnership. The consolidated financial statements present consolidated assets, liabilities and operations of Pavillion Partners, Ltd., Westbridge Partners, Ltd., and Krupp Realty Limited Partnership-IV. Westcop has a 1% interest in the operations of Westbridge Partners, Ltd., and Pavillion Partners, Ltd. At September 30, 1995, minority interest of $29,020 is included in other liabilities. In the opinion of the General Partners of the Partnership, the accompanying unaudited financial statements reflect all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Partnership's financial position as of September 30, 1995 and its results of operations for the three and nine months ended September 30, 1995 and 1994, and its cash flows for the nine months ended September 30, 1995 and 1994. Certain prior year balances have been reclassified to conform with the current year consolidated financial statement presentation. The results of operations for the three and nine months ended September 30, 1995 are not necessarily indicative of the results which may be expected for the full year. See Management's Discussion and Analysis of Financial Condition and Results of Operations included in this report. (2) Changes in Partners' Deficit
A summary of changes in partners' deficit for the nine months ended September 30, 1995 is as follows: Investor Original Total Limited Limited General Partners' Partners Partner Partners Deficit Balance at December 31, 1994 $1,182,933 $(1,208,892) $(261,421) $ (287,380) Net income 91,123 3,836 960 95,919 Distributions $ (839,859) (35,362) (8,841) (884,062) Balance at September 30, 1995 $ 434,197 $(1,240,418) $(269,302) $(1,075,523)
(3) Other Investments At September 30, 1995, the Partnership held investments in commercial paper maturing within one year. Cost approximates market value. KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources The Partnership's ability to generate cash adequate to meet its needs is dependent primarily upon the successful operations of its remaining real estate investments. Such ability is also dependent upon the future availability of bank borrowings, and upon the future refinancing and sale of the Partnership's remaining real estate investments. These sources of liquidity will be used by the Partnership for payment of expenses related to real estate operations, capital improvements, refinancings and expenses. Cash Flow, if any, as calculated under Section 8.2(a) of the Partnership Agreement, will then be available for distribution to the Partners. Due to improvements in the operations of the properties and a reduction in debt service discussed below, the Partnership had sufficient cash flow in 1994 to reinstate semi-annual distributions. The distributions were increased in February, 1995 to an annualized rate of 3% of remaining invested capital. The Partnership refinanced Pavillion and Indian Run at lower interest rates during 1994. As a result of the lower rates, the reduced mortgage payments have provided additional liquidity to the Partnership. This additional liquidity will assist the Partnership in funding approximately $400,000 in anticipated capital improvements to the properties in 1995. These improvements consist of continued interior enhancements that includes the replacement of appliances, carpeting, and vinyl flooring as needed. Cash Flow Shown below is the calculation of Cash Flow as defined by Section 8.2(a) of the Partnership Agreement for the nine months ended September 30, 1995:
Rounded to $1,000 Net loss for tax purposes $ (144,000) Items not requiring (requiring) the use of operating funds: Tax basis depreciation and amortization 1,427,000 Tax basis principal payments on mortgage (162,000) Expenditures for capital improvements (302,000) Amount required to maintain reasonable working capital reserves (156,000) Cash Flow $ 663,000
Continued KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued Operations Rental income increased for the three and nine months ended September 30, 1995, as compared to the same period in 1994. The increase in rental revenue is due to rental rate increases at all of the partnership properties. The increase in the rental rate is a direct result of the capital improvement programs implemented in 1994 by management. Occupancy has remained consistent during this time. Other income increased for the three and nine months ended September 30, 1995, as compared to same period in 1994, due to an increase in interest income earned on short term investments due to higher average cash balances. For the three and nine months ended September 30, 1995, as compared to the same period in 1994, the Partnership recognized a reduction in operating, general and administrative, and interest expenses. The decrease in operating and general and administrative expenses was due to management's efforts to reduce reimbursable costs. Certain of these cost savings are anticipated to continue throughout 1995. The decrease in interest expense was due to the refinancings of Indian Run and Pavillion in 1994. For the three and nine months ended September 30, 1995, as compared to the same period in 1994, real estate taxes increased due an to increase in the assessed values of Walden Pond and Pavillion. KRUPP REALTY LIMITED PARTNERSHIP-IV AND SUBSIDIARIES PART II - OTHER INFORMATION Item 1. Legal Proceedings Response: None Item 2. Changes in Securities Response: None Item 3. Defaults upon Senior Securities Response: None Item 4. Submission of Matters to a Vote of Security Holders Response: None Item 5. Other Information Response: None Item 6. Exhibits and Reports on Form 8-K Response: None SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Krupp Realty Limited Partnership-IV (Registrant) BY: /s/ Marianne Pritchard Marianne Pritchard Treasurer and Chief Accounting Officer of The Krupp Corporation, a General Partner. DATE: November 2, 1995 EX-27 2
5 9-MOS DEC-31-1995 SEP-30-1995 2,373,608 246,429 22,824 0 0 613,578 40,051,565 (22,254,267) 21,053,737 1,007,295 21,121,965 (1,075,523) 0 0 0 21,053,737 5,296,292 5,296,292 0 0 4,214,068 0 986,305 95,919 0 95,919 0 0 0 95,919 0 0 Includes apartment complexes of $39,652,907 and deferred expenses of $398,658. Includes depreciation of $22,164,276 and amortization of deferred expneses, $89,991. Represents mortgage note payable. Represents total equity of general partners ($269,302) and limited partners ($806,221). Includes oprating expenses $2,160,952, real estate tax $483,799, depreciation and amortization of $1,568,300 adn minority interest of $1,017. Net income allocated $960 to general partners and $94,959 to limited partners for the nine months ended 9/30/95. Net income is $3.04 per unit for 30,000 units outstanding.
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