Arboretum Silverleaf Income Fund Posts $461,906 Loss Through Nine Months of 2024

Arboretum Silverleaf Income Fund, L.P., a finance lease and lending partnership, reported a net loss of $461,906 for the nine months ended September 30, 2024, compared with a loss of $506,475 in the same period last year. Read more earnings reports.

Total revenue plunged 69% to $186,506 from $605,195 year-over-year. Finance income, the fund's primary revenue source, dropped to $182,302 from $588,089, while interest income declined to $4,204 from $17,106.

The fund recorded a $58,000 benefit from a change in its allowance for credit losses during the nine-month period, reversing a $241,233 charge in the prior-year period. Including this benefit, net revenue totaled $244,506, down from $363,962.

Total expenses fell to $706,412 from $870,437, a 19% decrease. Management fees paid to the investment manager dropped to $315,000 from $450,000, while professional fees declined to $272,086 from $307,409. Administration expenses held steady at $104,272 compared with $103,503.

For the third quarter alone, the partnership posted a net loss of $182,939, wider than the $150,163 loss in the same quarter of 2023. Quarterly revenue fell 76% to $39,023 from $162,526.

Balance Sheet Contraction

Total assets declined to $5.71 million at September 30, 2024, from $9.45 million at December 31, 2023. Investments in finance leases, net of allowances, dropped to $1.25 million from $3.44 million. Cash and cash equivalents fell to $763,886 from $1.41 million.

Partners' equity shrank to $4.81 million from $7.50 million at year-end 2023. Limited partners' equity declined to $4.99 million from $7.66 million, while the general partner remained in a deficit position of $179,189.

The fund distributed $2.80 million to partners during the nine months ended September 30, 2024, compared with $2.90 million in the prior-year period. An additional $445,969 in distributions to limited partners was payable at quarter-end.

Asset Activity

Minimum rents receivable on finance leases totaled $1.34 million at September 30, 2024, down from $3.75 million at year-end 2023. Collateralized loans receivable, including accrued interest, stood at $22,222, down from $100,074.

The allowance for credit losses on finance lease investments decreased to $24,000 from $82,000 at December 31, 2023. The fund reduced the allowance by $58,000 during the nine-month period.

Operating activities consumed $143,033 in cash during the nine months, a reversal from $318,726 generated in the prior-year period. Investing activities provided $2.29 million in cash, driven by net changes in leases and loan originations. Financing activities used $2.80 million, primarily for partner distributions.

Per-Unit Results

Net loss attributable to limited partners was $0.18 per weighted average limited partnership interest for the nine months ended September 30, 2024, compared with $0.20 per unit in the same period of 2023. The weighted average number of limited partnership interests outstanding remained steady at 2,520,653.57.

For the third quarter of 2024, the loss per limited partnership interest was $0.07, compared with $0.06 in the third quarter of 2023.