Arboretum Silverleaf Income Fund Reports $123,674 Loss in Q1 2024

Arboretum Silverleaf Income Fund, L.P., a limited partnership that invests in finance leases and collateralized loans, reported a net loss of $123,674 for the three months ended March 31, 2024, down from a $264,367 loss in the first quarter of 2023. The partnership operates without a public stock listing. Read more earnings reports.

Total revenue fell to $80,796 from $217,070 in the prior-year period, a 63% decline. Finance income, the partnership's primary revenue source, dropped to $78,645 from $210,233, while interest income slid to $2,151 from $6,837.

The partnership recorded a $45,000 reversal in its allowance for credit losses during the quarter, compared to a $179,861 charge in the first quarter of 2023. After adjusting for this credit provision, net revenue was $125,796 versus $37,209 a year earlier.

Total expenses decreased to $249,470 from $301,576. Management fees paid to the investment manager fell to $105,000 from $150,000. Professional fees declined to $97,443 from $106,209, while administration expenses held relatively steady at $35,734 compared to $36,452 in the prior year.

The partnership paid distributions totaling $1,018,362 during the quarter, consisting of $1,008,279 to limited partners and $10,083 to the general partner. Distributions payable at quarter-end stood at $1,114,225.

Balance Sheet Position

Total assets declined to $8,044,219 at March 31, 2024, from $9,452,921 at December 31, 2023. Investments in finance leases, net of allowances, fell to $2,434,229 from $3,442,636. The partnership held $1,410,782 in cash and cash equivalents at quarter-end.

Partners' equity dropped to $6,360,527 from $7,502,563 at year-end, reflecting the quarterly loss and distribution payments. Limited partners' equity stood at $6,524,312, while the general partner maintained a deficit position of $163,785.

Collateralized loans receivable decreased to $54,964 from $100,074, while other assets declined to $4,144,244 from $4,497,008. The allowance for credit losses on finance leases was reduced to $37,000 from $82,000 at year-end.

Cash Flow Activity

Operating activities consumed $60,024 in cash during the quarter, compared to generating $83,951 in the first quarter of 2023. Investing activities provided $1,093,582 in cash, driven by $1,048,472 from changes in leases and $45,110 from loan-related activity.

Financing activities used $1,035,979 in cash for limited partner distributions. The partnership had no loan payable at quarter-end, having fully repaid $542,444 of debt during the first quarter of 2023.

Net loss per limited partnership interest was $0.05 for the quarter, compared to $0.10 in the first quarter of 2023, based on 2,520,653.57 weighted average limited partnership interests outstanding.

Key Financial Data