<PAGE> 1
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, 1996
Commission File Number 2-82090
REAL ESTATE ASSOCIATES LIMITED VI
(A California Limited Partnership)
I.R.S. Employer Identification No. 95-3778627
9090 WILSHIRE BLVD., SUITE 201
BEVERLY HILLS, CA. 90211
Registrant's Telephone Number,
Including Area Code (310) 278-2191
Indicate by check mark whether the registrant (1) has filed all documents and
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve 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
---- ----
<PAGE> 2
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets,
September 30, 1996 and December 31, 1995 . . . . . . . . . . . . . . . . . . . 1
Consolidated Statements of Operations,
Nine and Three Months Ended, September 30, 1996 and 1995 . . . . . . . . . . . 2
Consolidated Statement of Partners' Deficiency
Nine Months Ended September 30, 1996 . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 1996 and 1995 . . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation . . . . . . . . . . . . . . . . . . . . . . . . 10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
</TABLE>
<PAGE> 3
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
ASSETS
<TABLE>
<CAPTION>
1996 1995
(Unaudited) (Audited)
----------- -----------
<S> <C> <C>
INVESTMENTS IN LIMITED PARTNERSHIPS (Note 2) $ 5,966,587 $ 5,619,146
RENTAL PROPERTY, net of accumulated depreciation
(Notes 1 and 3) 3,265,426 7,285,002
CASH AND CASH EQUIVALENTS (Note 1) 5,840,188 4,895,340
CASH, restricted (Note 1) 84,338 84,338
SHORT TERM INVESTMENTS (NOTE 1) 125,000 125,000
RECEIVABLES FROM LIMITED PARTNERSHIPS (Note 2) 31,000 1,000
OTHER ASSETS 66,217 327,313
----------- -----------
TOTAL ASSETS $15,378,756 $18,337,139
=========== ===========
LIABILITIES AND PARTNERS' DEFICIENCY
LIABILITIES:
Mortgage notes payable related to properties (Notes 3 and 7) $ 4,838,169 $ 9,890,564
Notes payable and amounts due for partnership
interests (Notes 4 and 7) 5,795,000 5,795,000
Accrued interest payable (Notes 4 and 7) 5,484,718 5,253,980
Accounts payable 25,990 193,501
Other liabilities 70,631 131,171
----------- -----------
16,214,508 21,264,216
----------- -----------
COMMITMENTS AND CONTINGENCIES (Notes 2, 5 and 6)
PARTNERS' DEFICIENCY:
General partners (359,547) (380,460)
Limited partners (476,205) (2,546,617)
----------- -----------
(835,752) (2,927,077)
----------- -----------
TOTAL LIABILITIES AND PARTNERS' EQUITY $15,378,756 $18,337,139
=========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
1
<PAGE> 4
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF OPERATIONS
NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine months Three months Nine months Three months
ended ended ended ended
Sept. 30, 1996 Sept. 30, 1996 Sept. 30, 1995 Sept. 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
RENTAL OPERATIONS:
Revenues $ 950,365 $ 254,052 $ 2,035,583 $ 683,635
-------------- -------------- -------------- --------------
Expenses:
Operating 537,448 154,572 1,141,766 412,069
Depreciation and amortization (Note 3) 186,748 43,704 246,959 51,103
Interest 442,503 95,092 762,677 254,136
-------------- -------------- -------------- --------------
1,166,699 293,368 2,151,402 717,308
-------------- -------------- -------------- --------------
LOSS FROM RENTAL OPERATIONS (216,334) (39,316) (115,819) (33,673)
-------------- -------------- -------------- --------------
PARTNERSHIP OPERATIONS:
Interest income 125,408 47,820 133,549 42,059
-------------- -------------- -------------- --------------
Expenses:
Management fees - general partner 388,119 125,274 461,991 153,521
General and administrative 206,734 40,873 205,263 197,076
Mortgage commission - general partner - - 131,100 -
Interest expense 389,738 129,913 389,738 129,913
-------------- -------------- -------------- --------------
984,591 296,060 1,188,092 480,510
-------------- -------------- -------------- --------------
LOSS FROM PARTNERSHIP
OPERATIONS (859,183) (248,240) (1,054,543) (438,451)
-------------- -------------- -------------- --------------
GAIN FROM SALE OF RENTAL
PROPERTY (Note 1) 2,050,417 - - -
EQUITY IN INCOME OF LIMITED
PARTNERSHIPS AND AMORTI-
ZATION OF ACQUISITION COSTS 519,000 173,000 279,000 93,000
DISTRIBUTIONS FROM LIMITED
PARTNERSHIPS RECOGNIZED
AS INCOME (Note 2) 597,425 468,225 235,771 10,588
-------------- -------------- -------------- --------------
NET INCOME (LOSS) $ 2,091,325 $ 353,669 $ (655,591) $ (368,536)
============== ============== ============== ==============
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP INTEREST (Note 1) $ 124 $ 21 $ (39) $ (22)
============== ============== ============== ==============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
2
<PAGE> 5
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENT OF PARTNERS' DEFICIENCY
NINE MONTHS ENDED SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
------------- ------------- -------------
<S> <C> <C> <C>
PARTNERSHIP INTERESTS,
September 30, 1996 16,810
=============
DEFICIENCY, January 1, 1996 $ (380,460) $ (2,546,617) $ (2,927,077)
Net income for the nine months
ended September 30, 1996 20,913 2,070,412 2,091,325
------------- ------------- -------------
DEFICIENCY, September 30, 1996 $ (359,547) $ (476,205) $ (835,752)
============= ============= =============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE> 6
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 2,091,325 $ (655,591)
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Equity in (income) of limited partnerships
and amortization of acquisition costs (519,000) (279,000)
Depreciation 186,748 246,959
(Increase) decrease in receivables from limited partnerships (30,000) 70,500
Decrease in other assets 261,096 -
Increase in accrued interest payable 230,738 290,332
(Decrease) increase in accounts payable (167,511) 18,941
Decrease in other liabilities (60,540) -
Gain on sale of rental property (2,050,417) -
------------ ------------
Net cash used in operating activities (57,561) (307,859)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions to limited partnerships recognized as
as a return of capital 171,559 254,267
Proceeds from sale of rental property 5,883,245 -
------------ ------------
Net cash provided by investing activities 6,054,804 254,267
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of mortgages (5,052,395) -
------------ ------------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 944,848 (53,592)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 4,895,340 5,072,944
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 5,840,188 $ 5,019,352
============ ============
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the year for interest $ 202,595 $ 271,637
============ ============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE> 7
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The information contained in the following notes to the financial
statements is condensed from that which would appear in the audited
annual financial statements; accordingly, the financial statements
included herein should be reviewed in conjunction with the financial
statements and related notes thereto contained in the annual report
for the year ended December 31, 1995 prepared by Real Estate
Associates Limited VI and Subsidiaries (the "Partnership"). National
Partnership Investments Corp. ("NAPICO") is the corporate general
partner of the Partnership. Accounting measurements at interim dates
inherently involve greater reliance on estimates than at year end.
The results of operations for the interim periods presented are not
necessarily indicative of the results for the entire year.
In the opinion of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting primarily of
normal recurring accruals) necessary to present fairly the financial
position of the Partnership at September 30, 1996 and the results of
operations for the nine and three months then ended and changes in
cash flows for the nine months then ended.
USE OF ESTIMATES
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 reported amounts of revenues and
expenses during the reporting period. Actual results could differ
from those estimates.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Real
Estate Associates Limited VI and its majority-owned general
partnerships. All significant intercompany accounts and transactions
have been eliminated in consolidation.
METHOD OF ACCOUNTING FOR INVESTMENT IN THE UNCONSOLIDATED LIMITED
PARTNERSHIPS
The investments in unconsolidated limited partnerships are accounted
for on the equity method. Acquisition, selection and other costs
related to the acquisition of the projects are capitalized as part of
the investment account.
5
<PAGE> 8
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1996
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NET LOSS PER LIMITED PARTNERSHIP INTEREST
Net loss per limited partnership interest was computed by dividing the
limited partners' share of net loss by the number of limited
partnership interests outstanding during the year. The number of
limited partnership interests was 16,810 for the periods presented.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of unrestricted cash and bank
certificates of deposit with maturities of three months or less.
Restricted cash consist of tenants' security and escrow deposits and
mortgage impounds.
SHORT-TERM INVESTMENTS
Short-term investments consit of bank certificates of deposit with
original maturities ranging from more than three months to twelve
months. The fair value of these securities, which have been
classified as held for sale, approximates their carrying value.
INCOME TAXES
No provision has been made for income taxes in the accompanying
financial statements since such taxes, if any, are the liability of
the individual partners.
RENTAL PROPERTY AND DEPRECIATION
Rental property is stated at cost. Depreciation is provided on the
straight-line and accelerated methods over the estimated useful lives
of the buildings and equipment. Pursuant to a purchase agreement in
which the Partnership acquired its interest from withdrawing general
partners, certain rental property was revalued to reflect the purchase
price.
Substantially all of the apartment units are leased on a
month-to-month basis.
On February 2, 1996, one of the consolidated general partnerships
(Drexel Park) sold its property for $6,300,000. The property had an
outstanding loan of approximately $5,050,000 and a net book value of
approximately $3,900,000. After payment of closings costs, the
Partnership realized a gain of approximately $2,050,000 and cash of
$830,000.
6
<PAGE> 9
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1996
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
As of September 30, 1996, the Partnership holds limited partnership
interests in 27 local limited partnerships and a general partner
interest in one general partnership. In addition, REAL VI holds a
general partner interest in Real Estate Associates III ("REA III"), a
California general partnership. NAPICO is also a general partner in
REA III. REA III, in turn, holds limited partner interests in seven
local limited partnerships. In total, therefore, the Partnership
holds interests, either directly or indirectly through REA III, in 34
limited partnerships and one general partnership which own residential
rental projects consisting of 2,832 apartment units. The mortgage
loans of these projects are insured by various governmental agencies.
The Partnership, as a limited partner, is entitled to between 80
percent and 99 percent of the profits and losses of the limited
partnerships it has invested in directly. The Partnership is also
entitled to 99.9 percent of the profits and losses of REA III. REA
III holds a 99 percent interest in each of the limited partnerships in
which it has invested.
As of September 30, 1996, the Partnership is obligated, if certain
conditions are met, to invest an additional $90,500 in its investee
partnerships at various times in the future. This amount has not been
recorded as a liability in the accompanying financial statements.
Equity in losses of unconsolidated limited partnerships is recognized
in the financial statements until the limited partnership investment
account is reduced to a zero balance or to a negative amount equal to
further capital contributions required. Losses incurred after the
limited partnership investment account is reduced to zero are not
recognized.
Distributions from the unconsolidated limited partnerships are
accounted for as a return of capital until the investment balance is
reduced to zero. Subsequent distributions received are recognized as
income.
The following is a summary of the investment in unconsolidated limited
partnerships as of September 30, 1996:
<TABLE>
<S> <C>
Balance, beginning of period $5,619,146
Equity in income of limited partnerships 606,000
Amortization of acquisition costs (87,000)
Cash distributions recognized as a return of capital (171,559)
----------
Balance, end of period $5,966,587
==========
</TABLE>
The following are unaudited combined estimated statements of
operations for the nine and three months ended September 30, 1996 and
1995 of the unconsolidated limited partnerships in which the
Partnership has investments:
7
<PAGE> 10
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1996
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIP (CONTINUED)
<TABLE>
<CAPTION>
Nine months Three months Nine months Three months
ended ended ended ended
Sept. 30, 1996 Sept. 30, 1996 Sept. 30, 1995 Sept. 30, 1995
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental and other $15,429,000 $5,143,000 $15,495,000 $ 5,165,000
----------- ---------- ----------- -----------
Expenses:
Depreciation 2,646,000 882,000 2,640,000 880,000
Interest 4,290,000 1,430,000 4,464,000 1,488,000
Operating expenses 10,338,000 3,446,000 9,618,000 3,206,000
----------- ----------- ------------- -----------
Total expenses 17,274,000 5,758,000 16,722,000 5,574,000
----------- ----------- ------------ -----------
Net loss $(1,845,000) $ (615,000) $ (1,227,000) $ (409,000)
============ =========== ============ ===========
</TABLE>
NAPICO, or one of its affiliates, is the general partner and property
management agent for certain of the limited partnerships included
above.
NOTE 3 - MORTGAGE NOTES PAYABLE
The mortgage note outstanding at June 30, 1996 had an interest rate of
9.5 percent per annum, with principal and interest payments due
monthly. The note was refinanced in September 1996 at an interest
rate of 8.63% per annum and matures in September 2006.
The note is collateralized by the underlying rental property.
NOTE 4 - NOTES PAYABLE
Certain of the Partnership's investments involved purchases of
partnership interests from partners who subsequently withdrew from the
operating partnership. The purchase of these interests provides for
additional cash payments of approximately $325,000 based upon
specified events as outlined in the purchase agreements. Such amounts
have been recorded as liabilities. In addition, the Partnership is
obligated on non-recourse notes payable of $5,470,000 which bear
interest at 9.5 percent and have principal maturities ranging from
December 1996 to December 2012. The notes and related interest are
payable from cash flow generated from operations of the related rented
properties as defined in the notes. These obligations are
collateralized by the Partnership's investments in the limited
partnerships. Unpaid interest equal to $5,521,924 at September 30,
1996, is due at maturity of the notes.
8
<PAGE> 11
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
NOTE 5 - MANAGEMENT FEES AND EXPENSES DUE TO GENERAL PARTNER
Under the terms of the Restated Certificate and Agreement of Limited
Partnership, the Partnership is obligated to the corporate general
partner for an annual management fee of approximately .4 percent of
the original invested assets of the limited partnerships. Invested
assets are defined as the costs of acquiring project interests,
including the proportionate amount of the mortgage loans related to
the Partnership's interests in the capital accounts of the respective
partnerships. This fee was approximately $388,000 and $462,000 for
the nine months ended September 30, 1996 and 1995, respectively.
The Partnership reimburses NAPICO for certain expenses. The
reimbursement to NAPICO was approximately $35,780 and $32,800 for the
nine months ended September 30, 1996 and 1995, respectively, and is
included in general and administrative expenses.
NOTE 6 - CONTINGENCIES
The corporate general partner of the Partnership and the Partnership
are plaintiffs in various lawsuits and have also been named defendants
in other lawsuits arising from transactions in the ordinary course of
business. In the opinion of management and the corporate general
partner, the claims will not result in any material liability to the
Partnership.
NOTE 7 - FAIR VALUE OF FINANCIAL INSTRUMENTS
Statement of Financial Accounting Standards No. 107, "Disclosure about
Fair Value of Financial Instruments," requires disclosure of fair
value information about financial instruments, when it is practicable
to estimate that value. The mortgage notes payable are insured by HUD
and are collateralized by the rental properties. The operations
generated by the properties and investee limited partnerships are
subject to various government rules, regulations and restrictions
which make it impracticable to estimate the fair value of the
mortgage notes payable and related accrued interest. The carrying
amount of other assets and liabilities reported on the balance sheets
that require such disclosure approximates fair value due to their
short-term maturity.
9
<PAGE> 12
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1996
ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's primary sources of funds include interest income on
short term investments and distributions from limited partnerships in
which the Partnership has invested. It is not expected that any of
the local limited partnerships in which the Partnership has invested
will generate cash flow sufficient to provide for distributions to
limited partners in any material amount.
The Partnership has committed as of September 30, 1996 to investments
in limited partnerships requiring additional capital contributions of
$90,500. The Partnership normally makes its capital contributions to
the local limited partnerships in stages, over a period of two to five
years, with each contribution due on a specified date, provided that
certain conditions regarding construction or operation of the project
have been fulfilled. The Partnership has no significant commitments
once the capital contributions have been made.
RESULTS OF OPERATIONS
On February 2, 1996, one of the consolidated general partnerships
(Drexel Park) sold its property for $6,300,000. The property had an
outstanding loan of approximately $5,050,000 and a net book value of
approximately $3,900,000. After payment of closings costs, the
Partnership realized a gain of approximately $2,050,000 and cash of
$830,000.
Rental operations consist primarily of rental income and depreciation
expense, debt service, and normal operating expenses to maintain the
properties. Variances in rental operations from the prior year to the
current year relate to the sale of the Drexel Property.
Partnership revenues consist primarily of interest income earned on
certificates of deposit and other temporary investment of funds not
required for investment in local partnerships.
Operating expenses consist primarily of recurring general and
administrative expenses and professional fees for services rendered to
the Partnership. In addition, an annual Partnership management fee in
an amount equal to .4 percent of invested assets is payable to the
corporate general partner. General and administrative expenses are
higher in 1996 than in 1995 primarily because of expenditures for
litigation regarding a dispute with a local partnership general
partner.
The Partnership accounts for its investments in the local limited
partnerships on the equity method, thereby adjusting its investment
balance by its proportionate share of the income or loss of the local
limited partnerships. Losses incurred after the limited partnership
investment account is reduced to zero are not recognized.
Distributions received from limited partnerships are recognized as
return of capital until the investment balance has been reduced to
zero or to a negative amount equal to future capital contributions
required. Subsequent distributions received are recognized as income.
10
<PAGE> 13
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1996
ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (CONTINUED)
Except for certificates of deposit and money market funds, the
Partnership's investments are entirely from interests in other limited
and general partnerships owning government assisted projects. Funds
temporarily not required for such investments in projects are invested
providing interest income as reflected in the statement of operations.
These funds can be converted to cash to meet obligations as they
arise. The Partnership intends to continue investing available funds
in this manner.
11
<PAGE> 14
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1996
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The corporate general partner is a plaintiff or defendant in several suits,
including the following related to REAL VI as of September 30, 1996.
Real Estate Associates Limited VI vs. Jansen Properties of Florida, Inc.,
Jeffrey Auslander and Peck, Shaffer & Williams, as Escrow Agents, Case No.
95-7005 AO, Circuit Court, 15th Judicial Circuit, Palm Beach County, Florida.
On September 5, 1995, REAL VI filed a declaratory judgment action claiming that
it is entitled to $376,500 of funds presently held in escrow which funds were
realized from a refinancing of an apartment project in Boynton Beach, Florida
in which REAL VI is the limited partner. The contestants to the escrow fund,
in addition to REAL VI, were the general partners, Jeffrey Auslander and Jansen
Properties of Florida, Inc., and Keith Rothchild, a judgment creditor of
Auslander. In connection with REAL VI's litigation the parties reached a
settlement during the period wherein Messrs. Auslander and Jansen were paid
$180,000 as a distribution and they resigned as General Partners of the Local
Partnership. In connection with their resignation, Rosewood Corporation (an
affiliate of your General Partner) assumed the role of local operating general
partner. Additional proceeds of approximately $150,000 were spent to cure
deferred maintenance at the property and the balance of approximately $46,500
(less fees and costs) was distributed to REAL VI. The Property is operating at
a breakeven level of operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No exhibits are required per the provision of item 7 of regulation S-K.
12
<PAGE> 15
REAL ESTATE ASSOCIATES LIMITED VI
(A LIMITED PARTNERSHIP)
SEPTEMBER 30, 1996
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.
REAL ESTATE ASSOCIATES LIMITED VI AND
SUBSIDIARIES (a California limited partnership)
By: National Partnership Investments
Corp., General Partner
Date:
------------------------------------
By:
-----------------------------------
Bruce Nelson
President
Date:
------------------------------------
By:
-----------------------------------
Shawn Horwitz
Executive Vice President and
Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
PARTNERSHIP'S STATEMENTS OF EARNINGS AND BALANCE SHEETS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 5,924,526
<SECURITIES> 0
<RECEIVABLES> 31,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,146,743
<PP&E> 5,800,191
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,378,756
<CURRENT-LIABILITIES> 96,621
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 835,752
<TOTAL-LIABILITY-AND-EQUITY> 15,378,756
<SALES> 0
<TOTAL-REVENUES> 4,242,615
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,319,049
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 832,241
<INCOME-PRETAX> 2,091,325
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,091,325
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,091,325
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
