-----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, OkX8zGDKMC5Sa4atMLGaCY/sCvCwP6gj01gjoxNSGHKOgRd6y+ZCI3ePbGPvVzYP 4fyGor8X85AGUA/b0rajOQ== 0000736908-95-000004.txt : 19951119 0000736908-95-000004.hdr.sgml : 19951119 ACCESSION NUMBER: 0000736908-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951113 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRAUVIN REAL ESTATE FUND LP 4 CENTRAL INDEX KEY: 0000736908 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 363304339 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13402 FILM NUMBER: 95589856 BUSINESS ADDRESS: STREET 1: 150 S WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124430922 MAIL ADDRESS: STREET 1: 150 S WACKER DR STREET 2: SUITE 3200 CITY: CHICAGO STATE: IL ZIP: 60606 10-Q 1 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 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 0-13402 Brauvin Real Estate Fund L.P. 4 (Exact name of registrant as specified in its charter) Delaware 36-3304339 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 150 South Wacker Drive, Chicago, Illinois 60606 (Address of principal executive offices) (Zip Code) (312) 443-0922 (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 . BRAUVIN REAL ESTATE FUND L.P. 4 INDEX Page PART I Financial Information Item 1. Financial Statements . . . . . . . . . . . . . . . . . . . 3 Consolidated Balance Sheets at September 30, 1995 and December 31, 1994. . . . . . . . . . . . . . . . . . . 4 Consolidated Statements of Operations for the Nine Months Ended September 30, 1995 and 1994. . . . . . . 5 Consolidated Statements of Operations for the Three Months Ended September 30, 1995 and 1994 . . . . . . 6 Consolidated Statement of Partners' Capital for the Period January 1, 1995 to September 30, 1995 . . . . . 7 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 1995 and 1994. . . . . . . 8 Notes to Consolidated Financial Statements . . . . . . . . 9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. . . . . . . . . . . . 11 PART II Other Information Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . 14 Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . 14 Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . 14 Item 4. Submissions of Matters to a Vote of Security Holders. . . . . . . . . . . . . . . . . . . . . . . . . . 14 Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . 14 Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 14 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . 15 PART I - FINANCIAL INFORMATION ITEM 1. Financial Statements Except for the December 31, 1994 Consolidated Balance Sheet, the following Consolidated Balance Sheet as of September 30, 1995, Consolidated Statements of Operations for the nine and three months ended September 30, 1995 and 1994, Consolidated Statement of Partners' Capital for the period January 1, 1995 to September 30, 1995 and Consolidated Statements of Cash Flows for the nine months ended September 30, 1995 and 1994 for Brauvin Real Estate Fund L.P. 4 (the "Partnership") are unaudited but reflect, in the opinion of the management, all adjustments necessary to present fairly the information required. All such adjustments are of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Partnership's 1994 Annual Report on Form 10-K. BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED BALANCE SHEETS September 30, 1995 December 31, 1994 (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 533,546 $ 404,347 Tenant receivables (net of allowance of $12,050 and $19,204, respectively) 145,076 45,979 Escrow and other deposits 132,534 147,988 Other assets 92,561 56,922 Due from affiliates 56,069 -- Investment in affiliated joint venture 990,961 1,019,775 1,950,747 1,675,011 Investment in real estate, at cost: Land 4,035,301 4,035,301 Buildings 16,212,111 16,195,230 20,247,412 20,230,531 Less: accumulated depreciation (4,866,016) (4,536,911) Total investment in real estate, net 15,381,396 15,693,620 Total Assets $17,332,143 $17,368,631 LIABILITIES AND PARTNERS' CAPITAL Liabilities Accounts payable and accrued expenses $ 217,940 $ 124,588 Security deposits 45,484 40,013 Mortgages payable 12,031,441 12,155,027 Total Liabilities 12,294,865 12,319,628 Minority interest in affiliated joint venture 646,460 712,179 Partners' Capital General Partners (16,295) (16,835) Limited Partners (9,550 limited partnership units issued and outstanding) 4,407,113 4,353,659 Total Partners' Capital 4,390,818 4,336,824 Total Liabilities and Partners' Capital $17,332,143 $17,368,631 See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENTS OF OPERATIONS For the Nine Months Ended September 30, 1995 and 1994 (UNAUDITED) 1995 1994 INCOME Rental $1,413,723 $1,407,575 Interest 19,845 6,725 Other, primarily expense reimbursements 201,120 206,923 Total income 1,634,688 1,621,223 EXPENSES Mortgage and other interest 818,198 825,155 Depreciation and amortization 329,105 332,681 Real estate taxes 199,312 208,800 Repairs and maintenance 31,795 56,614 Other property operating 160,378 175,677 General and administrative 161,061 134,357 Total expenses 1,699,849 1,733,284 Loss before participation in affiliated joint ventures (65,161) (112,061) Equity in net income from affiliated joint venture 53,436 27,882 Minority interest's share of affiliated joint venture net loss 65,719 52,208 Net Income (Loss) $ 53,994 $ (31,971) Net Income (Loss) Per Limited Partnership Interest (9,550 Units) $5.60 $(3.31) See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended September 30, 1995 and 1994 (UNAUDITED) 1995 1994 INCOME Rental $481,700 $438,546 Interest 6,975 4,052 Other, primarily expense reimbursements 112,789 63,929 Total income 601,464 506,527 EXPENSES Mortgage and other interest 271,819 274,570 Depreciation and amortization 109,725 101,179 Real estate taxes 65,130 69,600 Repairs and maintenance 10,315 17,087 Other property operating 52,269 75,827 General and administrative 44,372 16,436 Total expenses 553,630 554,699 Income (loss) before participation in affiliated joint ventures 47,834 (48,172) Equity in net income from affiliated joint venture (3,284) (16,517) Minority interest's share of affiliated joint venture net loss 24,866 13,880 Net Income (Loss) $ 69,416 $(50,809) Net Income (Loss) Per Limited Partnership Interest (9,550 Units) $7.20 $(5.27) See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL For the Period January 1, 1995 to September 30, 1995 (UNAUDITED) General Limited Partners Partners Total BALANCE at January 1, 1995 $(16,835) $4,353,659 $4,336,824 Net income 540 53,454 53,994 BALANCE at September 30, 1995 $(16,295) $4,407,113 $4,390,818 See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 1995 and 1994 (UNAUDITED) 1995 1994 Cash Flows From Operating Activities: Net income (loss) $ 53,994 $(31,971) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in net income from affiliated joint venture (53,436) (27,882) Minority interest's share of affiliated joint venture net loss (65,719) (52,208) Provision for doubtful accounts 2,821 14,150 Depreciation and amortization 329,105 332,681 Normalized rental revenue 4,446 9,261 Changes in operating assets and liabilities: Increase in tenant receivables (106,364) (56,222) Decrease (increase) in escrow and other deposits 15,454 (61,194) Increase in due from affiliates (56,069) (3,349) (Increase) decrease in other assets (35,639) 665 Increase (decrease) in accounts payable and accrued expenses 93,352 (68,089) Increase (decrease) in security deposits 5,471 (2,021) Net cash provided by operating activities 187,416 53,821 Cash Flows From Investing Activities: Capital expenditures (16,881) (44,843) Cash distribution from affiliated joint venture 82,250 81,545 Net cash provided by investing activities 65,369 36,702 Cash Flows From Financing Activities: Repayment of mortgages (123,586) (125,580) Contribution from minority partner of affiliated joint venture -- 16,800 Net cash used in financing activities (123,586) (108,780) Net increase (decrease) in cash and cash equivalents 129,199 (18,257) Cash and cash equivalents at beginning of period 404,347 276,652 Cash and cash equivalents at end of period $533,546 $258,395 See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 4 (a Delaware limited partnership) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements 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 management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 1995 are not necessarily indicative of the results that may be expected for the year ended December 31, 1995. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 1994. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reclassifications Certain amounts in the 1994 financial statements have been reclassified to conform to the 1995 presentation. This has not affected the previously reported results of operations. (3) TRANSACTIONS WITH AFFILIATES Fees and other expenses paid to the General Partners or its affiliates for the nine months ended September 30, 1995 and 1994, were as follows: 1995 1994 Management fees $96,437 $95,745 Reimbursable office expenses 63,000 73,865 Legal fees 376 2,700 The Partnership believes the amounts paid to affiliates are representative of amounts which would have been paid to independent parties for similar services. The Partnership had made all payments to affiliates, except for $7,452 for legal services, as of September 30, 1995. (4) INVESTMENT IN AFFILIATED JOINT VENTURE The Partnership owns a 47% interest in Sabal Palm and accounts for its investment under the equity method. The following are condensed income statements for Sabal Palm: INCOME STATEMENTS: Nine Months Ended September 30, 1995 1994 Rental income $551,880 $506,188 Interest income 2,098 1,794 Other income 71,065 79,605 625,043 587,587 Mortgage and other interest 226,532 228,588 Depreciation 105,165 101,479 Operating and administrative expenses 179,653 198,198 511,350 528,265 Net income $113,693 $ 59,322 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Liquidity and Capital Resources The Partnership intends to satisfy its short-term liquidity needs through cash flow from the properties. Long-term liquidity needs are expected to be satisfied through modification of the mortgages. In November 1991, the Partnership reached an agreement with the lender to modify the terms of the Fortune mortgage loan in a manner which has allowed the property to operate at a break-even or positive cash flow level (the "Second Loan Modification"). Pursuant to the Second Loan Modification, the annual interest rate was reduced from 11.875% to 3% effective as of July 1, 1991. The Partnership makes monthly principal and interest payments based upon a 15-year amortization schedule plus 50% of available cash flow for the period from July 1, 1993 through July 1, 1997. Fortune is currently operating at a slight negative cash flow level and the Partnership is current on its mortgage payments for the Fortune loan. The lender had the option to accelerate the loan maturity beginning on July 1, 1994, and each anniversary thereafter, if the property is not: (I) in good condition and repair; (ii) occupied at a rate that is equal to the prevailing occupancy rate for similar properties in the same locale; and (iii) leased at rental rates which are at least 90% of the prevailing rate for similar properties in the same locale. The Partnership believes that the property currently meets these standards and will continue to meet these standards. In November 1992, the Partnership negotiated a modification of the terms of the mortgage on Raleigh Springs Marketplace with the lender (the "Modified Loan"). In October 1992, the interest rate was reduced from 12.75% to 10.00%. Since November 1992 and through September 1999, principal and interest payments are based on a 25-year amortization schedule. The Modified Loan capitalized the August, September and October 1992 mortgage payments with the final payment due on October 1, 1999. The Partnership is current on its mortgage payments for the Raleigh Springs loan. The occupancy level at Fortune at September 30, 1995 was 97% as compared to 79% at December 31, 1994. The Partnership is continuing to work to sustain the occupancy level of Fortune. Fortune operated at a slight negative cash flow for the nine months ended September 30, 1995. Raleigh continued to generate positive cash flow for the nine months ended September 30, 1995. The occupancy level at Raleigh at September 30, 1995 was 99% compared to 92% at December 31, 1994. Strawberry Fields continued to generate a negative cash flow for the nine months ended September 30, 1995. The occupancy level at Strawberry Fields at September 30, 1995 was 83% compared to 78% at December 31, 1994. At Sabal Palm, the Partnership and its joint venture partner are continuing to work to sustain the occupancy level, which stood at 99% at September 30, 1995 and December 31, 1994. Although the Sabal Palm retail market appears to be overbuilt, the property has continued to generate positive cash flow since its acquisition in 1986. The General Partners of the Partnership expect to distribute proceeds from operations, if any, and from the sale of real estate, to Limited Partners in a manner that is consistent with the investment objectives of the Partnership. Management of the Partnership believes that cash needs may arise from time to time which will have the effect of reducing distributions to Limited Partners to amounts less than would be available from refinancings or sale proceeds. These cash needs include, among other things, maintenance of working capital reserves in compliance with the partnership agreement as well as payments for major repairs, tenant improvements and leasing commissions in support of real estate operations. Results of Operations - Nine Months Ended September 30, 1995 and 1994 (Amounts rounded to 000's) The Partnership generated a net income of $53,000 for the nine months ended September 30, 1995, as compared to a net loss of $32,000 in 1994. The $85,000 increase in net income resulted primarily from a decrease in expenses at all properties and an increase in operations at the joint venture properties. Total income was $1,635,000 for the nine months ended September 30, 1995, as compared to $1,621,000 in 1994, an increase of $14,000. The $14,000 increase in total income resulted primarily from an increase in interest income due to the increase in cash flow. Expenses were $1,700,000 for the nine months ended September 30, 1995, as compared to $1,733,000 in 1994, a decrease of $33,000. This decrease was a result of the steady decrease of expenses at all properties. Results of Operations - Three Months Ended September 30, 1995 and 1994 (Amounts rounded to 000's) The Partnership generated net income of $69,000 for the three months ended September 30, 1995, as compared to a net loss of $51,000 in 1994. The $120,000 increase in net income resulted primarily from a $94,000 increase in total income. For the three months ended September 30, 1995, total income was $601,000 in 1995, as compared to $507,000 in 1994, an increase of $94,000. The $94,000 increase in total income resulted primarily from a $62,000 increase in accrued tenant reimbursables at Raleigh Springs and a $42,000 increase in rental income, also at Raleigh Springs. For the three months ended September 30, 1995, total expenses were $554,000 in 1995 as compared to $555,000 in 1994, a decrease of $1,000. PART II - OTHER INFORMATION ITEM 1. Legal Proceedings. None. ITEM 2. Changes in Securities. None. ITEM 3. Defaults Upon Senior Securities. None. ITEM 4. Submission Of Matters To a Vote of Security Holders. None. ITEM 5. Other Information. None. ITEM 6. Exhibits and Reports On Form 8-K. Exhibit 27. Financial Data Schedule. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BY: Brauvin Ventures, Inc. Corporate General Partner of Brauvin Real Estate Fund L.P. 4 BY: /s/ Jerome J. Brault Jerome J. Brault Chairman of the Board of Directors and President DATE: November 13, 1995 BY: /s/ Thomas J. Coorsh Thomas J. Coorsh Chief Financial Officer and Treasurer DATE: November 13, 1995 EX-27 2
5 9-MOS DEC-31-1995 SEP-30-1995 533,546 990,961 145,076 0 0 0 20,247,412 4,866,016 17,332,143 0 12,031,441 0 0 4,390,818 0 17,332,143 0 1,634,688 0 1,699,849 119,155 0 818,198 0 0 0 0 0 0 53,994 0 0 "SECURITIES" REPRESENTS INVESTMENT IN JOINT VENTURE "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND BUILDING] "BONDS" REPRESENTS MORTGAGES PAYABLE "COMMON" REPRESENTS TOTAL PARTNERS' CAPITAL "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER INCOME "TOTAL COSTS" REPRESENTS TOTAL EXPENSES "OTHER EXPENSES" REPRESENTS EQUITY AND MINORITY INTEREST IN JOINT VENTURES' NET INCOME/LOSS
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