-----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, WJ7rmeJqk/M4nfTR/H8gYiYV1Awnspc7XIBcZzor3vsJ/bvHUhBDuFBY7aWJFqm1 qrt1zLx0fml5+byD+tOOoQ== 0000799126-98-000001.txt : 19980331 0000799126-98-000001.hdr.sgml : 19980331 ACCESSION NUMBER: 0000799126-98-000001 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980330 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RAL YIELD PLUS EQUITIES IV LTD PARTNERSHIP CENTRAL INDEX KEY: 0000799126 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 391558614 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: SEC FILE NUMBER: 000-16890 FILM NUMBER: 98578501 BUSINESS ADDRESS: STREET 1: 20875 CROSSROADS CIRCLE STREET 2: STE 800 CITY: WAUKESHA STATE: WI ZIP: 53186 BUSINESS PHONE: 4147980900 MAIL ADDRESS: STREET 1: 29875 CROSSROADS CIRCLE STREET 2: STE 800 CITY: WAUKESHA STATE: WI ZIP: 53186 10-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE - ------ SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 1997 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF - ------ THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] Commission File Number 0-16890 ------- RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP ------------------------------------------- (Exact name of registrant as specified in its charter) Wisconsin 39-1558614 - -------------------------------- ----------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification Number) 20875 Crossroads Circle Suite 800 Waukesha, Wisconsin 53186 - -------------------------------- ---------------------------- (Address of principal (Zip Code) executive offices) Registrant's telephone number, including area code (414) 798-0900 -------------- Securities registered pursuant to Section 12(b) of the Act: None ---- Securities registered pursuant to Section 12(g) of the Act: LIMITED PARTNERSHIP INTERESTS ----------------------------- (Title of Class) 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 requirement for the past 90 days. Yes X No --------- --------- RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP 1997 FORM 10-K TABLE OF CONTENTS ----------------- Part I Item 1 Business Item 2 Properties Item 3 Legal Proceedings Item 4 Submission of Matters to a Vote of Security Holders Part II Item 5 Market for Registrant's Common Equity and Related Stockholder Matters Item 6 Selected Financial Data Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations Item 8 Financial Statements and Supplementary Data Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Part III Item 10 Directors and Executive Officers of the Partnership Item 11 Executive Compensation Item 12 Security Ownership of Certain Beneficial Owners and Management Item 13 Certain Relationships and Related Transactions Part IV Item 14 Exhibits, Financial Statement Schedules, and Reports on Form 8-K Signatures Financial Statements and Supplementary Data PART 1 Item 1. BUSINESS RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP (the "Registrant" or "Partnership") is a Wisconsin Limited Partnership formed on August 8, 1986, under the Wisconsin Revised Uniform Limited Partnership Act. The Registrant was organized to acquire, for cash (no debt), real estate projects, including real estate for restaurants, mobile home communities, apartment complexes and other commercial properties. The Partnership sold $19,620,500 in Limited Partnership Interests (19,620.5 Interests at $1,000 per unit) pursuant to a registration statement on Form S-11 under the Securities Act of 1933. The Partnership utilized the net offering proceeds to acquire the real property investments described under "Properties" (Item 2). The Registrant originally acquired fourteen real property investments, utilizing the net offering proceeds available for investment. The Registrant sold three of the original properties during 1993. A fourth property was sold during 1994, a fifth was sold in 1996, and the sixth and seventh properties were sold in 1997. Provided below is certain financial information by property type for the three years covered by this report:
Apartment Mobile Home Commercial Complexes Parks Properties ---------------- ---------------- ---------------- 1997 1996 1995 1997 1996 1995 1997 1996 1995 ---- ---- ---- ---- ---- ---- ---- ---- ---- Number of properties 2 2 2 4 4 5 1 3 3 owned at December 31: Gross rental revenues $1,029 $998 $990 $918 $979 $1,028 $29 $210 $210
The officers and employees of RAL Asset Management Group, a Wisconsin General Partnership, and its affiliates, performed services for the Registrant until June 1, 1993. RAL Asset Management Group is controlled by the General Partners of the Partnership. Effective June 1, 1993 the Partnership made separate property and partnership management agreements. The partnership management agreement is with an unrelated management company. The property management agreement is with a related entity with the same general partners as the Partnership. The related property management firm simultaneously subcontracted with the same unrelated management company handling the partnership management. The terms and conditions of these agreements are similar to the above related party agreements, which they replace. The Registrant itself employs individual onsite managers and maintenance personnel in the mobile home parks and apartment complexes. The Registrant employed 16 at March 27, 1998. Item 2. PROPERTIES As of March 27, 1998, the Registrant owned the following properties: Name, Type of Date of Property and Location Purchase Approximate Size - --------------------- -------- ------------------------ South Hills 12/31/86 170 mobile home sites on 40 Mobile Home Park acres of land and a small vacant Beaver Dam, WI* building formerly used as an office. Lakeshore Terrace 06/30/87 135 mobile home sites on Mobile Home Park approximately 25 acres of land Rice Lake, WI* Alexandria Estates 08/17/87 89 mobile home sites on Mobile Home Park approximately 17 acres of land Alexandria, MN Maplewood 08/17/87 75 mobile home sites on Mobile Home Park approximately 9 acres of land Lake City, MN Firestone 02/02/88 A 7,716 square foot building on Retail/Service Center approximately 1.7 acres of land Neenah, WI Northrup Court 03/08/88 A 90 unit garden apartment Apartments complex located on approximately North Canton, OH* 7.6 acres of land Cedar Crossing 08/19/88 Majority ownership (87.709%) Apartments 12/23/88 in a 109 unit garden apartment Frederick, MD* complex (RAL Income + Equity Growth V Limited Partnership, an affiliated limited partnership, owns the remaining interest) *Denotes a material property, having gross revenues greater than 10% of total revenues. All the above properties were unencumbered as of March 27, 1998. Leases on Investment Properties: The Partnership operates four mobile home parks which lease rental spaces. The Partnership also operates two apartment complexes. The mobile home parks and apartment complexes receive income on a monthly basis from tenant leases which normally have lease terms of one year or less. The real estate business is highly competitive and the Partnership competes with many other real estate investment entities many of which have greater financial resources. No one firm or group of firms, in the opinion of the General Partners, is dominant in the industry. The Partnership, therefore, faces substantial competition from a variety of sources for attracting tenants to its properties. All commercial, residential and mobile home community properties acquired by the Partnership have competition for tenants from similar properties in the vicinity. In the opinion of management of the Partnership, all properties are adequately covered by insurance. MATERIAL PROPERTIES - ------------------- Following is information with respect to each property whose revenues are greater than 10% of total revenues as denoted above. The following is a listing of the approximate average physical occupancy rates for the Partnership's material properties during each of the last five years:
Occupancy Rate -------------------------------- 1997 1996 1995 1994 1993 ---- ---- ---- ---- ---- Cedar Crossings Apts. 97% 96% 100% 99% 96% Northrup Court Apts. 91% 94% 99% 97% 89% South Hills MHP 99% 99% 99% 99% 99% Lakeshore MHP 94% 91% 91% 90%
The following is a listing of the average annual per unit rental rates for the Partnership's material properties for each of the last five years:
Annual Per Unit Rental Rate -------------------------------- 1997 1996 1995 1994 1993 ---- ---- ---- ---- ---- Cedar Crossings Apts. $5,929 5,835 5,639 5,596 5,610 Northrup Court Apts. $4,376 4,388 4,215 4,174 4,274 South Hills MHP $2,574 2,516 2,402 2,305 2,251 Lakeshore MHP $1,746 1,727 1,677 1,627
The Federal tax basis for each of the material properties is identical to the book basis as listed in Schedule III on page F-15 of the report. Depreciation information for tax purposes on the properties is as follows: Type of Asset Rate Method Depreciable Life ------------- ---- ------ ---------------- Land Improvements SL ACRS 15/19/20 Year Building SL ACRS 19/31.5/40 Year Equipment DDB ACRS/MACRS 5/7/12 Year Real estate tax information for the three years covered by this report for material properties is as follows:
1997 1996 1995 ---- ---- ---- Cedar Crossings Apts. Tax rate (per 1,000) .02260 .02260 .02260 Real estate taxes $39,633 39,396 39,285 Northrup Court Apts. Tax rate (per 1,000) .04532 .05223 .04638 Real estate taxes $25,032 24,361 22,785 South Hills MHP Tax rate (per 1,000) .01959 .02541 .02821 Real estate taxes $25,881 29,182 32,776 Lakeshore MHP Tax rate (per 1,000) .01861 .01454 .02345 Real estate taxes $15,444 9,632 14,427
Item 3. LEGAL PROCEEDINGS The Partnership is not subject to any material pending legal action. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There were no matters submitted to a vote of security holders during 1997. PART II Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS (a)&(b) As of December 31, 1997, there were approximately 2,430 record holders of Interests of the Partnership. There is no public market for Interests and it is not anticipated that a public market for Interests will develop. The General Partners will not redeem or repurchase Interests. (c) All cash available for distribution other than sale or refinancing proceeds will be distributed 95% to the Limited Partners and 5% to the General Partners, at least semiannually. See attached financial statements and footnotes for a detailed discussion of amounts and timing of distributions to Limited Partners. Item 6. SELECTED FINANCIAL DATA Year Ended Year Ended Year Ended Year Ended Year Ended 12/31/97 12/31/96 12/31/95 12/31/94 12/31/93 ---------- ---------- ---------- ---------- ---------- Rental Income$1,976,337 $2,186,579 $2,228,310 $2,161,239 $2,394,977 Interest Income 18,586 12,506 7,700 17,049 9,517 Net Income (Loss) 679,751 (70,824) 549,106 529,276 918,686 Total Assets 9,003,683 9,161,505 10,581,715 10,979,236 14,049,594 Long Term Obligations 0 0 0 0 0 Distributions to Limited Partners: Cash Flow 756,144 898,812 945,550 3,501,235 1,177,230 Return of Capital 0 300,000 0 2,429,000 0 Gain (Loss) on Sale of Investment Property 26,114 (338,622) 0 (20,535) 335,777 Per Unit Data: Net Income(Loss) 32.91 (3.43) 26.59 25.63 44.48 Distributions 38.54 61.10 48.19 178.45 60.00 The above selected financial data should be read in conjunction with financial statements and related footnotes elsewhere herein. (A) The net income per Interest is computed on the basis of the net income allocated to the Limited Partners divided by the outstanding Interests at the end of the period.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP is a Wisconsin Limited Partnership formed on August 8, 1986, under the Wisconsin Revised Uniform Limited Partnership Act. The Partnership was formed to acquire new and existing income-producing properties for cash. The Partnership originally purchased a total of fifteen income- producing properties. The Partnership is managing four mobile home communities (two in Wisconsin and two in Minnesota) and two garden apartment complexes located in Ohio and Maryland. The Partnership is leasing out the retail auto supply store in Neenah, Wisconsin. The Partnership has sold the following properties: a restaurant building located in Longmont, Colorado; a retail auto parts and service store located in Menasha, Wisconsin; a mobile home park located in Little Chute, Wisconsin; a mobile home park located in Willmar, Minnesota; and a restaurant building located in Eagan, Minnesota; and two restaurant buildings in Illinois. Liquidity and Capital Resources: Properties acquired by the Partnership are intended to be held for approximately seven to ten years. Since the Partnership has purchased the Properties for cash, liquidity is not reduced by debt service payments. During the Properties' holding periods, the investment strategy is to improve (on the residential properties) occupancy rates through the application of professional property management (including selective capital improvements). Cash flow generated from property operations is distributed to the partners on a quarterly basis. The Partnership also accumulates working capital reserves for normal repairs, replacements, working capital, and contingencies. Net cash provided by operating activities was $950,000 in 1997, $921,000 in 1996, and $1,188,000 in 1995. During 1997 and 1996 cash provided from the sale of income-producing properties amounted to $1,026,000 and $475,000 respectively. As of December 31, 1997, the Partnership had cash of approximately $1,441,000 consisting of undistributed cash flow, working capital reserves, and tenant security deposits. Liabilities totaled approximately $297,000. The Partnership has not experienced, and is not currently experiencing any liquidity problems. It is not expected that the Partnership will experience liquidity problems due to the nature of the current liabilities. Approximately $122,000 of the current liabilities represent tenant security deposits. The majority of the remaining current liabilities are accrued and escrowed real estate taxes payable in installments in 1998. The Partnership expects to meet all of its obligations as they come due. Total limited partner distributions made during 1997 were approximately $756,000. Results of Operations: Total revenues were as follows during the three year period covered by this report:
1997 $2,055,000 1996 $2,187,000 1995 $2,228,000
The decrease in revenues from 1996 to 1997 is a result of the two restaurant properties vacated by the tenant in late 1996. The properties were sold in 1997. The decrease is also due to the sale of the Parkwood mobile home park in 1996 offset by increased rates at the remaining mobile home parks and the apartment complexes. The decrease in revenues from 1995 to 1996 is a result of the sale of Parkwood Estates mobile home park during 1996, reductions in the occupancy rates at the apartment complexes and offset by the increased rates at the apartment complexes and remaining mobile home parks. Total expenses were $1,437,000 in 1997, $2,317,000 in 1996, and $1,725,000 in 1995. Operating expenses have decreased in 1997 compared to 1996 as the number of properties in the Partnership declined due to property sales in 1997 and 1996. The operating expenses rose significantly in 1996 compared to 1995 due to several factors. The Partnership incurred a loss on sale of the Parkwood Estates mobile home park of $339,000. Bad debt expense for 1996 amounted to $217,000 as a result of the two restaurant properties in Mundelein, Illinois and Joliet, Illinois being vacated by the lessor prior to the expiration of the lease. As a result of the vacancies of the two restaurant properties the carrying value of the building improvements and the land were written down to their estimated net realizable value. The writedown resulted in a charge to income of $159,000 in 1996. The Partnership reported a net income of $680,000 in 1997 compared to a net loss of $71,000 in 1996 and net income of $549,000 in 1995. The decrease in 1996 is attributable to the factors discussed in the previous paragraph. Except for property sales, future net income should increase as a result of rent increases on the mobile home communities and apartment complexes, and base rent increases on the "triple net" lease commercial property. Inflation: Due to the relatively low level of inflation since the Partnership commenced operations, the effect of inflation on the Partnership has not been material to date. Should the rate of inflation increase substantially over the life of the Partnership, it is likely to influence ongoing operations, in particular, the operating expenses of the Partnership. The commercial leases contain clauses permitting pass-through of certain increased operating costs. Residential leases are typically of one year or less in duration; this allows the Partnership to react quickly (through rental increases) to changes in the level of inflation. These factors should serve to reduce, to a certain degree, any impact of rising costs on the Partnership. Potential Sale of Partnership Properties The Partnership has received an offer from a prospective purchaser for all or substantially all of the Partnership's properties. Accordingly, the Partnership has entered into an asset purchase agreement with the potential purchaser subject to Securities and Exchange Commission review of the necessary proxy statement/consent document, approval of the limited partners and the receipt of an acceptable fairness opinion. Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA See Index to Financial Statements and Financial Statement Schedule on page F-1, incorporated herein by reference. The supplemental financial information specified by Item 302 of Regulation S-K is not applicable. Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE a. None. b. None. PART III Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP The General Partners of RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP (the "Partnership") are Robert A. Long, John A. Hanson, Thomas R. Brophy and Bart Starr. The General Partners manage and control the Partnership's affairs and have the general responsibility and the ultimate authority in all matters affecting the Partnership's business. The Partnership has available to it the services, personnel, and experience of certain other organizations affiliated with the General Partners, including RAL Asset Management Group. Some of the General Partners are also General Partners of an affiliate, RAL Asset Management Group. The responsibilities of RAL Asset Management Group were subcontracted to an unrelated third party beginning June 1, 1993. The general partners and significant employee of First Financial Realty Management are as follows: Position with Ral Asset Name Management Group - ---- ----------------------- Robert A. Long General Partner John A. Hanson General Partner Thomas R. Brophy General Partner Bart Starr General Partner Douglas C. Heston President (FFRM) There is no family relationship among any of the foregoing officers. The business experience of the General Partners and significant employees includes the following: Robert A. Long, age 56, has, since January 1982, been a partner in RAL Asset Management Group. He is co-founder of RAL Asset Management Group. Since 1966 Mr. Long has been involved in real estate consulting, development and syndication. Mr. Long is a licensed securities agent. Since 1981 Mr. Long has been involved as an individual, general partner, or affiliate in ownership and management of twenty-six (26) mobile home parks totaling over 2,600 pads in the states of Wisconsin and Minnesota. Prior to 1981, Mr. Long developed or purchased over 200 commercial properties in six states and currently owns individually or through partnerships over 50 restaurants (land and building) leased to restaurant operators, including Pizza Hut, Hardee's, Taco Bell, and Rocky Rococo (or their franchisees). Mr. Long also played professional football for the Green Bay Packers, Atlanta Falcons, and Washington Redskins. Mr. Long received a Bachelor of Science Degree in Business from Wichita State University in 1965 and is currently Executive Director of the Vince Lombardi Scholarship Fund for Wichita State University. Mr. Long is also on the Board of Directors of Roundy's Inc., a major Midwest food distributor and originator of the Pick 'N Save stores. John A. Hanson, age 56, has, since March 1982, been a partner in RAL Asset Management Group. Mr. Hanson is involved individually, as a general partner, or as an affiliate, in the ownership and management of twenty-six (26) mobile home parks in the states of Wisconsin and Minnesota. Mr. Hanson has been involved in pension and profit-sharing and tax consulting for 25 years. In 1975 he founded, and since that time has been president of Pension Designers, Inc., of Appleton, Wisconsin, a firm that specializes in structuring and consulting with respect to qualified retirement plans, estate planning, investment sales and sales of life, health and disability insurance products to individuals, groups or corporations. From 1966 to 1971 Mr. Hanson was engaged in tax consulting, having management and tax accounting responsibilities for a farm management firm with approximately 200 clients. Mr. Hanson is past president of the Fox River Valley Association of Life Underwriters, and the General Agents and Managers Association, an associate member of the American Society of Pension Actuaries, a member of the International Association of Financial Planners, a qualifying and life member of the Million Dollar Round Table, and a registered principal with the National Association of Securities Dealers. Mr. Hanson received his Bachelor of Science Degree in Agri-Business from the University of Wisconsin - River Falls in 1966. Mr. Hanson is a licensed securities agent. Thomas R. Brophy, CLU, ChFC., age 52, has, since March 1982, been a partner of RAL Asset Management Group. Mr. Brophy is involved individually, as a general partner, or as an affiliate in the ownership and management of twenty-six (26) mobile home parks in the states of Wisconsin and Minnesota which total approximately 2,600 pads. Mr. Brophy has been a NASD registered securities representative since 1969, active in the marketing and sales of mutual funds, unit investment trusts, stocks, bonds, limited partnerships and private ventures. Since 1967 Mr. Brophy has also been active in the marketing, selling, training, supervising and managing of personnel, with respect to qualified retirement plans and personal or business life, health and disability insurance plans. He is active in the financial planning field, having been conferred the degree of Chartered Financial Consultant, by the American College, Bryan Mawr, PA, in 1984. He is associated with the Principal Financial Group. Mr. Brophy is an active member of the National and Wisconsin Association of Life Underwriters, Million Dollar Round Table, Fox Valley Estate Planning Council and International Association of Financial Planners. He is recipient of the Fox River Valley Association of Life Underwriters' 1983 "Agent of the Year" award. A 1967 Bachelor of Science graduate from Marquette University, Mr. Brophy went on for advanced studies in insurance, receiving his Chartered Life Underwriter (CLU) degree from the American College, Bryan Mawr, PA, in 1975. Mr. Brophy is a licensed securities agent. Bart Starr, age 65, has, since January 1984, been a partner in RAL Asset Management Group. He is a University of Alabama graduate with a B.S. Degree in Education. Since 1970, he has been a partner in the Bart Starr Motor Company, Birmingham, Alabama. Since 1979 he has been a member of the Board of Directors of the Sentry Insurance Company, Stevens Point, Wisconsin. He was a Green Bay Packer football player from 1956-1972, the Green Bay Packer Head Coach from 1975-1983, the NFL Most Valuable Player in 1966, and the Most Valuable Player in Super Bowls I and II. Mr. Starr was a CBS Game Analyst in 1973 and 1974 and the first winner of the Byron White Award in 1967. Mr. Starr has been the recipient of numerous civic and sports awards and is actively engaged in many charitable and public service organizations. The following individual is an employee of the unaffiliated property management firm who makes significant contributions to the business of the Partnership: Douglas C. Heston, age 44, is President of First Financial Realty Management (FFRM). FFRM and affiliates own and/or manage over 50 investment properties. Mr. Heston received a B.A. degree from Duke University (North Carolina) with a double major in Economics and Public Policy Analysis (Statistics) in 1975. He received an M.S. degree in Real Estate Investment Analysis from the University of Wisconsin in 1979. Previously he worked for real estate appraisal firms in Atlanta and Milwaukee. He co-founded RAL Asset Management Group in 1982 and left at the end of 1984 to found his current firm. Item 11. EXECUTIVE COMPENSATION (a,b,c, and d) The Registrant has not paid and does not propose to pay any executive compensation to the General Partners or any of their affiliates (other than described in Item 13 below). (e) There are no compensatory plans or arrangements regarding termination of employment or change of control. Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT (a) No person owns of record or is known by the Registrant to own beneficially more than 5% of the outstanding Interests of the Registrant as of March 27, 1998. (b) As of March 27, 1998, the General Partners beneficially owned the following Interests in the Partnership:
Title of Class Name of Partner Percent of Class - -------------- --------------- ---------------- General Partnership Robert A. Long 46.73% Interests John A. Hanson 22.14 Thomas R. Brophy 19.68 Bart Starr 11.45 ------ 100.00 ========
As of March 27, 1998, the General Partners owned as a group the following Limited Partnership Interests in the Registrant:
Title of Class Amount Beneficially Owned Percent of Class - -------------- ------------------------- ---------------- Limited Partnership 6 Interests Less than 1% Interests (c) None
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS (a and b) The Partnership sold Hickory Lane Mobile Home Park to Wisconsin Homesites III Limited Partnership. Doug Heston is the President of the Corporate General Partner of Wisconsin Homesites III. Mr. Heston is also the President of First Financial Realty Management, the company which now manages RAL Yield + Equities IV. Certain General Partners own or control businesses which have agreed to perform a variety of services for the Partnership. In consideration for these services, the General Partners and related parties receive certain compensation at amounts which were provided by the Partnership agreement. The following table sets forth the types, amounts and recipients of compensation related to the Partnership. Real estate commissions payable The total compensation paid to RAL Asset Management Group or to all persons for the sale other related party on sale of of properties shall be Partnership properties. limited to a competitive real estate commission not to exceed 6% of the contract price for the sale of the property. An affiliate may receive up to one-half of such compensation, where it provides brokerage services, subject to certain limitations based on a subordinated return to limited partners. No fees have been paid to date. General Partner's share of The General Partners receive Partnership Cash Available 5% of all Cash Available for for Distribution. Distribution. Distributions paid to the General Partners were $40,000 in 1997, $47,000 in 1996, and $50,000 in 1995. (c) No management person is indebted to the Registrant. (d) Not applicable. PART IV Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) (1 and 2) See Index to Financial Statements and Financial Statement Schedule on Page F-1 (b) Reports on Form 8-K None. (c) Exhibits See Exhibit 27. (d) Financial Statement Schedule See Index to Financial Statements and Financial Statement Schedule on Page F-1. RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP (A Wisconsin Limited Partnership) TABLE OF CONTENTS TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE COVERED BY REPORTS OF INDEPENDENT AUDITORS Item 14(a) Report of Independent Auditors F-2 Consolidated Balance Sheets at December 31, 1997 and 1996 F-3 Consolidated Statements of Income for the years ended December 31, 1997, 1996 and 1995 F-4 Consolidated Statements of Partners' Equity for the years ended December 31, 1997, 1996 and 1995 F-5 Consolidated Statements of Cash Flows for the years ended December 31, 1997, 1996 and 1995 F-6 Notes to Consolidated Financial Statements F-7 to F-14 Financial Statement Schedule: III - Real Estate and Accumulated Depreciation F-15 to F-19 Schedules, other than those listed, are omitted for the reason that they are inapplicable or equivalent information has been included elsewhere herein. F-1 INDEPENDENT AUDITOR'S REPORT February 20, 1998 To the Partners of RAL Yield + Equities IV Limited Partnership We have audited the accompanying Consolidated Balance Sheets of RAL Yield + Equities IV Limited Partnership (a Wisconsin Limited partnership) as of December 31, 1997 and 1996, and the related Consolidated Statements of Income, Partners' Equity and Cash Flows for each of the three years in the period ended December 31, 1997. Our audit also included the financial statement schedule listed in the Index at Item 14. These consolidated financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these consolidated 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 consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by 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 RAL Yield + Equities IV Limited Partnership as of December 31, 1997 and 1996, and the results of its operations and cash flows for each of the three years in the period ended December 31, 1997 in conformity with generally accepted accounting principles. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in material respects the information set forth therein. KOLB LAUWASSER & CO., S.C. Milwaukee, Wisconsin F-2 RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP Consolidated Balance Sheets --------------------------- As of December 31,
ASSETS 1997 1996 ------ ---- ---- Properties - ---------- Income-Producing Properties - Notes #1, #3, and #4 Buildings and land improvements 9,326,894 9,253,924 Equipment 476,946 466,952 ---------- ---------- 9,803,840 9,720,876 Less: Accumulated depreciation 3,513,008 3,196,705 ---------- ---------- 6,290,832 6,524,171 Land 1,214,304 1,214,304 ---------- ---------- Total Income-Producing Property 7,505,136 7,738,475 Properties held for sale or re-lease, net-Note #5 - 1,000,000 ---------- ---------- Total Properties 7,505,136 8,738,475 ---------- ---------- Other - ----- Cash and cash equivalents - Note #1 1,441,372 381,659 Rent and other receivables - Note #1 14,057 14,588 Deposits 560 560 Deferred charges - Note #1 19,623 6,525 Prepaid expenses 22,935 19,698 ---------- --------- Total Other 1,498,547 423,030 ---------- --------- Total Assets 9,003,683 9,161,505 ========== ========== LIABILITIES AND PARTNERS' EQUITY -------------------------------- Liabilities - ----------- Accounts payable and accrued expenses 134,183 166,940 Deferred rents 40,164 35,406 Tenants' security deposits 122,440 135,155 ---------- --------- Total Liabilities 296,787 337,501 ---------- --------- Minority interest in joint venture - Note #6 402,830 403,748 ---------- --------- Partners' Equity (Deficit) - -------------------------- General partners (103,823) (98,014) Limited partners 8,407,889 8,518,270 ---------- ---------- Total Partners' Equity 8,304,066 8,420,256 ---------- ---------- Total Liabilities and Partners' Equity 9,003,683 9,161,505 ========== ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS. F-3
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP Consolidated Statements of Income --------------------------------- For the years ended December 31,
1997 1996 1995 ---- ---- ---- Revenue - ------- Rental income 1,976,337 2,186,579 2,228,310 Gain on sale of investment properties 78,914 - - --------- --------- --------- Total Revenues 2,055,251 2,186,579 2,228,310 --------- --------- --------- Expenses - -------- Property management fees 101,762 103,963 107,388 Administrative expenses 408,156 385,853 408,545 Property operating expenses 568,797 632,056 613,325 Amortization and depreciation 318,039 481,083 540,612 Loss on sale of investment properties 52,800 338,622 - Bad debt expense(recoveries) (12,255) 216,582 54,716 Write down of investment properties-Note #5 - 158,859 - --------- --------- --------- Total Expenses 1,437,299 2,317,018 1,724,586 --------- --------- --------- Income (Loss) Before Other Income and Minority Interest 617,952 (130,439) 503,724 --------- --------- --------- Other Income (Expense) - ---------------------- Interest income 18,586 12,506 7,700 Interest expense (1,334) (3,927) (6,109) Miscellaneous 80,202 85,396 77,703 Gain on sale of fixed assets 300 - - --------- --------- --------- Total Other Income 97,754 93,975 79,294 --------- --------- --------- Net Income (Loss) Before Minority Interest 715,706 (36,464) 583,018 Minority interest - Note #6 (35,955) (34,360) (33,912) --------- --------- --------- Net Income (Loss) 679,751 (70,824) 549,106 ========= ========= ========= Net income (loss)per limited partner interest - Note #8 32.91 (3.43) 26.59 ========= ========= ========= Allocation of Income (Loss): Limited partners 645,763 (67,283) 521,651 General partners 33,988 (3,541) 27,455 --------- --------- --------- 679,751 (70,824) 549,106 ========= ========= ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS. F-4
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP Consolidated Statements of Partners' Equity ------------------------------------------- For the years ended December 31,
Limited General 1997 1996 1995 Partners Partners Total Total Total ---------- -------- ---------- -------------------- Capital contributions: Contributed cash 19,620,500 1,000 19,621,500 19,621,500 19,621,500 Less: Syndication costs 2,057,653 - 2,057,653 2,057,653 2,057,653 ----------- ------ ---------- ---------- ---------- Net contributions 17,562,847 1,000 17,563,847 17,563,847 17,563,847 ----------- ------ ---------- ---------- ---------- Accumulated income: Balance, beginning 4,984,515 495,864 5,480,379 5,551,203 5,002,097 Current net income (loss) 645,763 33,988 679,751 (70,824) 549,106 ----------- ------- ---------- --------- ---------- Balance, ending 5,630,278 529,852 6,160,130 5,480,379 5,551,203 ----------- ------- ---------- ---------- --------- Accumulated distributions: Balance, beginning (14,029,092)(594,878) (14,623,970)(13,377,852)(12,382,536) Current distributions (756,144) (39,797) (795,941) (1,246,118) (995,316) ---------- ------- ---------- ---------- ----------- Balance, ending (14,785,236)(634,675) (15,419,911)(14,623,970)(13,377,852) ---------- ------- ---------- ---------- ---------- Total Partners' Equity (Deficit) 8,407,889 (103,823) 8,304,066 8,420,256 9,737,198 ========== ======== ========= ========== ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS. F-5
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP Consolidated Statements of Cash Flows ------------------------------------------- For the years ended December 31,
Cash Increase or (Decrease) ---------------------------------- 1997 1996 1995 ------ ------ ------ Cash Flows From Operating Activities - ------------------------------------ Net (loss) income 679,751 (70,824) 549,106 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Amortization and depreciation 318,039 481,083 540,612 (Gain)loss on sale of investment properties and fixed assets (26,414) 338,622 - Minority interest in joint venture 35,955 34,360 33,912 (Decrease) increase to reserve for doubtful accounts (261,729) 208,729 53,000 Write down of investment properties - 158,859 - Decrease (increase) in - ---------------------- Rent and other receivables, net 262,260 (146,664) (48,496) Prepaid expenses (3,237) 3,885 (4,157) Deferred charges (13,968) - - Increase (decrease) in - ---------------------- Accounts payable and accrued expenses (27,999) (83,384) 53,662 Tenants' security deposits (12,715) (3,851) 10,279 --------- --------- --------- Net Cash Provided by Operating Activities 949,943 920,815 1,187,918 --------- --------- --------- Cash Flows From Investing Activities - ------------------------------------ Additions to income- producing properties (83,830) (10,779) (80,815) Proceeds from sale of income-producing properties 1,026,414 475,009 - --------- --------- --------- Net Cash Provided (Used) by Investing Activities 942,584 464,230 (80,815) --------- --------- --------- Cash Flows From Financing Activities - ------------------------------------ Distributions to partners (795,941)(1,246,118) (995,316) Distributions from joint venture partner (36,873) (50,393) (49,164) --------- --------- --------- Net Cash (Used) by Financing Activities (832,814)(1,296,511)(1,044,480) --------- ---------- --------- Net Increase in Cash 1,059,713 88,534 62,623 Cash and cash equivalents - Beginning of Year 381,659 293,125 230,502 --------- ---------- --------- Cash and cash equivalents - End of Year 1,441,372 381,659 293,125 ========= ========== ========= Supplementary Information Interest Paid 1,334 3,927 6,109 ========= ========== ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS. F-6
RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP Notes to Consolidated Financial Statements ------------------------------------------ For the years ended December 31, 1997, 1996 and 1995 Note #1 Nature of the Business and Summary of Significant - ------- ------------------------------------------------- Accounting Policies ------------------- A. Nature of the Business ---------------------- RAL Yield + Equities IV Limited Partnership (the Partnership) is a Wisconsin limited partnership formed on August 8, 1986, under the provisions of the Wisconsin Uniform Limited Partnership Act, to acquire for cash, operate, lease, develop and eventually sell real estate properties. Currently, the Partnership owns seven properties. It operates four mobile home parks located in the upper midwest and two apartment complexes located in Maryland and Ohio. The Partnership also leases a commercial property to a retail/service business in the upper midwest. On December 30, 1997, two commercial restaurant properties, located in the upper midwest, which had been leased to a franchisee, were sold. The Partnership will terminate December 31, 2016, except in the event of prior sale of the Partnership's properties, action by a majority interest of the Limited Partners or certain other events. Effective July 26, 1988, the Partnership completed its offering of limited partnership interests. A total of 19,620.5 interests were sold for an aggregate contribution of $19,620,500. In connection with the sale of limited partnership interests, the Partnership incurred approximately $2,058,000 of costs to raise capital including sales commissions of $1,766,000 and other offering costs of $292,000, which were charged against partners' equity. B. Method of Accounting -------------------- Assets, liabilities, revenue and expenses are recognized on the accrual basis method of accounting. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. C. Basis of Presentation --------------------- The consolidated financial statements include the accounts of RAL Yield + Equities IV Limited Partnership and its majority owned F-7 investment in Cedar Crossing Apartments. All intercompany transactions and accounts have been eliminated in the consolidation. The Partnership records are maintained in accordance with generally accepted accounting principles. D. Income-Producing Properties --------------------------- Income-producing properties are carried at the lower of cost less accumulated depreciation or fair value. Cost includes acquisition fees paid to RAL Asset Management Group. Management periodically evaluates a property's fair value based upon occupancy rate and comparison to similar properties in the same geographic area. Adjustments to those values are made by management when deemed appropriate. For financial statement purposes, depreciation is determined using the straight-line method. For income tax reporting purposes, building and land improvements are depreciated using the straight - -line method, while equipment is depreciated using accelerated methods. Depreciable lives for financial statement and income tax purposes are set forth below:
Depreciable Lives --------------------------- Financial Income Tax Reporting Reporting --------- ---------- Land improvements 30 years 15-19 years Buildings 30 years 31.5-40 years Equipment 5-10 years 3-7 years
E. Allowance for Doubtful Accounts ------------------------------- Receivables are reviewed periodically by management to determine the adequacy of the allowance for doubtful accounts. Based upon management's evaluation, an allowance for doubtful accounts of $0 and $261,729 was necessary as of December 31, 1997 and 1996, respectively. F-8 F. Deferred Charges ---------------- Costs incurred with respect to organizing the Partnership were deferred and have been fully amortized. Prepaid management fees incurred in the initial public offering were amortized to expense on the straight-line method over the term (ten years) of the management agreement and have been fully amortized. Commission fees incurred to lease the properties have been deferred and amortized over the respective lease term. Deferred charges consist of the following at December 31,
1997 1996 --------- --------- Professional fees - Note #7 13,968 - Lease commissions 8,700 8,700 --------- --------- 22,668 8,700 Less: Accumulated amortization 3,045 2,175 --------- --------- 19,623 6,525 ========= =========
G. Leases ------ The Partnership has determined that all leases relating to the income-producing properties are properly classified as operating leases; therefore, rental income is reported when earned and the cost of each of the properties, excluding cost of land, is depreciated over its estimated useful life. H. Income Taxes ------------ No income taxes will be payable or provided by the Partnership since net income or loss is includable in the respective tax returns of the partners. The Partnership files its income tax return on the accrual basis of accounting. The following reconciles the income reported in the accompanying Statements of Income to that reported in the tax returns. F-9
1997 1996 1995 -------- -------- -------- Net income (loss) per Consolidated Statements of Income 679,752 (70,824) 549,106 Difference in depreciation (93,392) (75,609) (64,681) Difference in gain/loss on the sale of investment properties (167,708) 169,276 - Bad debt expense and asset write down - 208,730 53,000 Difference in write down of properties - 158,859 - Prepaid rent and other differences (9,724) (23,059) (3,202) ------- ------- ------- Net income for tax purposes 408,928 367,373 534,223 ======= ======= =======
I. Cash and Cash Equivalents ------------------------- For purposes of the Consolidated Statements of Cash Flows, the Partnership considers all short-term investments in interest-bearing bank accounts and certificates of deposit with a maturity of three months or less, to be equivalent to cash. Several demand deposit accounts are at one financial institution. Such funds on deposit exceeded the federally insured limit by $1,297,452 and $253,004 for the years ended December 31, 1997 and 1996, respectively. J. Fair Value of Financial Instruments ----------------------------------- Unless otherwise indicated, the fair values of all reported assets and liabilities which represent financial instruments (none of which are held for trading purposes) approximate the carrying values of such amounts. Note #2 General Provisions of the Limited Partnership Agreement - ------- ------------------------------------------------------ Pursuant to the terms of the partnership agreement, net income or losses of the Partnership from operations and losses on sale of income-producing properties are allocated 95% to the limited partners and 5% to the general partners. Notwithstanding the foregoing, all depreciation from tax-exempt use properties is allocated to tax-exempt limited partners. F-10 In general, subject to certain limitations, all income from the sale of income-producing properties will be allocated first to the Partners with deficit capital accounts, then to each limited partner in an amount equal to the limited partner's original capital contribution, less prior distributions of sale or refinancing proceeds, then to the limited partners in the amount, if any, of the investment preference that is paid from sale or refinancing proceeds and the remainder shall be allocated 85% to the limited partners and 15% to the general partners, provided that general partners will be allocated at least 1% of such income. The partnership agreement requires that distributions to limited partners of Cash Available for Distribution (as defined in the partnership agreement) shall be made in such amounts and at such times as the general partners may determine, but not less frequently than semi-annually. Note #3 Income-Producing Properties - ------- --------------------------- A summary of income-producing properties as of December 31 follows:
1997 1996 ---------- --------- Apartment complexes (two in 1997 and 1996) 6,771,720 6,710,810 Mobile home park (four in 1997 and 1996) 3,887,492 3,865,438 Retail property (one in 1997 and 1996) 358,932 358,932 ---------- ---------- 11,018,144 10,935,180 Less: Accumulated depreciation 3,513,008 3,196,705 ---------- ---------- 7,505,136 7,738,475 ========== ==========
During 1996, the Partnership recorded a loss on the sale of one mobile home park in the amount of $338,622. During 1997, the Partnership recorded a loss on the sale of two restaurant properties in the amount of $52,800 and a gain on the sale of the land of one mobile home park in the amount of $78,914. F-11 Note #4 Leases of Income-Producing Properties - ------- ------------------------------------- The Partnership leases space to a tenant under a noncancellable operating lease, with a term of ten years. Future minimum annual rental commitments receivable under this long-term lease agreement in effect at December 31, 1997 is as follows:
1998 29,250 1999 29,250 2000 29,250 2001 29,250 2002 29,250 After 2002 46,313 ------- 192,563 =======
The Partnership also operates four mobile home parks, which have a total of 467 rental spaces. As of December 31, 1997 and 1996, a total of 442 and 438 spaces, respectively, were leased. The mobile home parks received income on a monthly basis from tenant leases which normally have lease terms of one year or less. Rental revenue for the parks was approximately $918,000, $983,000 and $1,028,000 in 1997, 1996 and 1995, respectively. The Partnership also operates two apartment complexes which have a total of 199 rental units. As of December 31, 1997 and 1996, a total of 187 spaces were leased. The apartment complexes receive income on a monthly basis from tenant leases which also normally have lease terms of one year or less. Rental revenue for the apartment complexes was approximately $1,029,000, $998,000 and $995,000 in 1997, 1996 and 1995, respectively. Note #5 Properties Held for Sale or Re-Lease - ------- ------------------------------------ At December 31, 1996, two commercial properties were vacant and being held for sale or re-lease. Accordingly, these properties were reclassified in the accompanying consolidated balance sheet at December 31, 1996. These properties were sold on December 30, 1997. At December 31, 1996, the Partnership recorded an allowance of $158,859 for these properties. Management recorded this allowance to reduce the carrying value of the properties to the respective estimated net realizable values in light of the area's real estate market conditions and the vacant status of the properties. F-12 A summary of properties held for sale or re-lease at December 31, follows:
1996 --------- Land 577,845 Building 846,812 --------- 1,424,657 Less: Accumulated depreciation (265,798) Estimated net realizable value allowance (158,859) --------- 1,000,000 =========
Note #6 Affiliate's Participation in Joint Venture - ------- ------------------------------------------ The Cedar Crossing Apartments are owned by a joint venture between the Partnership and an affiliated partnership. All assets, liabilities, revenue and expenses of the joint venture are included in the financial statements of the Partnership with the appropriate adjustment of income for the affiliate's interest in the joint venture. Profits, losses and distributions are allocated 87.709% to the Partnership and 12.291% to the affiliate. Note #7 Potential Sale of Partnership Properties - ------- ---------------------------------------- The Partnership has received an offer from a prospective purchaser for all or substantially all of the Partnership's properties. Accordingly, the Partnership has entered into an asset purchase agreement with the potential purchaser subject to Securities and Exchange Commission review of the necessary proxy statement/consent document, approval of the limited partners and the receipt of an acceptable fairness opinion. The professional fees included as an asset in the deferred charges on the balance sheet (Note #1E) were incurred as a result of this potential sale. F-13 Note #8 Earnings per Share Disclosures - ------- ------------------------------ The following illustrates the calculation of the basic earnings per share calculation for the years ended December 31,
1997 1996 1995 -------- -------- -------- Income (loss) available to limited partners (numerator) 645,764 (67,283) 521,650 ======= ======= ======= Limited partners interests (denominator) 19,620.5 19,620.5 19,620.5 ======== ======== ======== Per-share amount 32.91 (3.43) 26.59 ======== ======== ======== F-14
RAL- YIELD EQUITIES IV LIMITED PARTNERSHIP (A Wisconsin Limited Partnership) Schedule of Real Estate and Accumulated Depreciation December 31, 1997
Col. A Col. B Col. C Col.D - --------------------- ------- ---------------------- ------------ Initial cost to Costs Partnership Capitalized ----------------------- Subsequent to Acquisition Encum- Buildings& ------------- Description brances Land Improvements Improvements(b) - --------------------- ------- ---------- ------------ ------------ South Hills MHP Beaver Dam, WI (a) $100,000 $1,078,221 $487,017 Vacant Auto Service Center Menasha, WI (a) 195,095 274,512 (469,607) Vacant Restaurant Longmont, Co (a) 261,258 358,887 (620,145) Lakeshore Terrace MHP Rice Lake, WI (a) 51,227 794,416 27,821 Alexandria Estates MHP Alexandria, MN (a) 110,650 556,197 38,258 Maplewood MHP Lake City, MN (a) 54,300 385,138 64,380 Hardee's Restaurant Mundelein, IL (vacant) (a) 339,125 398,817 (737,942) Hardee's Restaurant Joliet, IL (vacant) (a) 238,720 447,995 (686,715) South Hills Office Beaver Dam, WI (a) 15,245 113,244 11,379 Hardee's Restaurant Eagan, MN (a) 368,834 425,630 (794,464) Hickory Lane MHP Little Chute, WI (a) 300,190 917,186 (1,217,376) Firestone Auto Service Center Neenah, WI (a) 157,779 316,650 (115,497) Northrup Court Apartments North Canton, OH (a) 254,086 2,167,507 63,744 Parkwood Estates MHP Willmar, MN (a) 151,632 778,599 (930,231) Cedar Crossing Apartments Frederick, MD (a) 471,017 3,768,843 46,522 ---------- ---------- --------- Total $3,069,158 12,781,842 (4,832,856) ========= ========== =========
F-15 RAL- YIELD EQUITIES IV LIMITED PARTNERSHIP (A Wisconsin Limited Partnership) Schedule of Real Estate and Accumulated Depreciation December 31, 1997
Col. A Col. E - ------------------------- --------------------------------------- Gross Amount at which Carried at Close of Period --------------------------------------- Buildings and Description Land Improvements(b) Total - -------------------------- ----------- --------------- ----------- South Hills MHP Beaver Dam, WI $100,000 $1,565,238 $1,665,238 Vacant Auto Service Center Menasha, WI - - - Vacant Restaurant Longmont, Co - - - Lakeshore Terrace MHP Rice Lake, WI 51,227 822,237 873,464 Alexandria Estates MHP Alexandria, MN 110,650 594,455 705,105 Maplewood MHP Lake City, MN 54,300 449,518 503,818 Hardee's Restaurant Mundelein, IL (vacant) - - - Hardee's Restaurant Joliet, IL (vacant) - - - South Hills Office Beaver Dam, WI 15,245 124,623 139,868 Hardee's Restaurant Eagan, MN - - - Hickory Lane MHP Little Chute, WI - - - Firestone Auto Service Center Neenah, WI 157,779 201,153 358,932 Northrup Court Apartments North Canton, OH 254,086 2,231,251 2,485,337 Parkwood Estates MHP Willmar, MN - - - Cedar Crossing Apartments Frederick, MD 471,017 3,815,365 4,286,382 --------- ---------- ---------- Total 1,214,304 9,803,840 11,018,144 ========= ========== ==========
F-16 RAL- YIELD EQUITIES IV LIMITED PARTNERSHIP (A Wisconsin Limited Partnership) Schedule of Real Estate and Accumulated Depreciation December 31, 1997
Col. A Col. F Col. G Col. H Col. I - -------------------- ----------- ----------- ---------- -------- Depreciable Accumulated Date Life per Depreciation Date of Acquired by Income Description (Book basis) Construction P-shp Statement - -------------------- ------------ ------------ --------- ---------- South Hills MHP Beaver Dam, WI $542,438 VAR 12/31/86 (d) Vacant Auto Service Center Menasha, WI - 1987 04/16/87 (d) Vacant Restaurant Longmont, Co - 1987 04/28/87 (d) Lakeshore Terrace MHP Rice Lake, WI 285,902 VAR 06/30/87 (d) Alexandria Estates MHP Alexandria, MN 203,190 VAR 08/17/87 (d) Maplewood MHP Lake City, MN 147,687 VAR 08/17/87 (d) Hardee's Restaurant Mundelein, IL(vacant) - 1986 08/18/87 (d) Hardee's Restaurant Joliet, IL (vacant) - 1986 08/18/87 (d) South Hills Office Beaver Dam, WI 39,005 VAR 09/03/87 (d) Hardee's Restaurant Eagan, MN - 1987 09/10/87 (d) Hickory Lane MHP Little Chute, WI - VAR 10/30/87 (d) Firestone Auto Service Center Neenah, WI 102,324 1987 02/02/88 (d) Northrup Court Apartments North Canton, OH 798,752 1986 03/08/88 (d) Parkwood Estates MHP Willmar, MN - VAR 06/10/88 (d) Cedar Crossing Apartments 8/19/88 Frederick, MD 1,393,710 1986 12/23/88 (d) --------- Total 3,513,008 =========
F-17 RAL-YIELD EQUITIES IV LIMITED PARTNERSHIP (A Wisconsin Limited Partnership) NOTES TO SCHEDULE III (a) All properties are unencumbered at December 31, 1997. (b) Includes personal property. The Joliet and Mundelien, Illinois properties were written down to management's estimated net realizable value during 1996. The write-downs were based on the current real estate market conditions in the respective areas. These properties were sold during 1997. (c) The Cedar Crossing Apartments are owned by a joint venture between the Partnership and the affiliated partnership. All assets of the joint venture are included in the financial statements of the Partnership. For tax purposes, the Partnership includes only its portion of the joint venture's assets on its tax balance sheet. (d) Depreciation expense is computed based upon the following estimated useful lives:
Years -------------------------------- Financial Income Statement Tax Purposes Purposes --------- -------- Buildings and Improvements 30 15-40 Personal Property 5-7 5-12
(e) Reconciliation of Real Estate - ------------------------------------- Balance at January 1, 1995 $13,302,908 Acquisitions 0 Improvements 80,812 Cost of investment property sold 0 ----------- Balance at December 31, 1995 13,383,720 Acquisitions 0 Improvements 10,779 Reduction of net realizable value (158,859) Cost of investment property sold (1,034,662) ----------- Balance at December 31, 1996 12,200,978 Acquisitions 0 Improvements 83,830 Cost of investment property sold (1,266,664) ----------- Balance at December 31, 1997 $11,018,144
=========== F-18 RAL-YIELD EQUITIES IV LIMITED PARTNERSHIP (A Wisconsin Limited Partnership) Reconciliation of Accumulated Depreciation
Balance at January 1, 1995 $ 2,916,170 Depreciation expense for 1995 407,955 Sale of investment property 0 ---------- Balance at December 31, 1995 3,324,125 Depreciation expense for 1996 359,409 Cost of investment property sold (221,031) ---------- Balance at December 31, 1996 3,462,503 Depreciation expense for 1997 317,169 Cost of investment property sold (266,664) ---------- Balance at December 31, 1997 $3,513,008 ==========
F-19 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. RAL YIELD + EQUITIES IV LIMITED PARTNERSHIP BY: Robert A. Long ------------------------------- Robert A. Long, General Partner DATE: March 27, 1998 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Signature Title Date - ---------------------------------------------------------------- Robert A. Long General Partner of RAL 3/27/98 - -------------------- Yield + Equities IV ------- Robert A. Long Limited Partnership John A. Hanson General Partner of RAL 3/27/98 - -------------------- Yield + Equities IV ------- John A. Hanson Limited Partnership Douglas C. Heston President, First Financial 3/27/98 - -------------------- Realty Management ------- Douglas C. Heston EX-27 2
5 YEAR DEC-31-1997 DEC-31-1997 1,441,372 0 14,057 0 0 1,498,547 11,018,144 3,513,008 9,003,683 296,787 0 0 0 0 8,304,066 9,003,683 0 2,154,339 0 1,437,299 35,955 0 1,334 679,751 0 679,751 0 0 0 679,751 0 0
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