<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, 1997
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, 1997
<TABLE>
<CAPTION>
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets,
September 30, 1997 and December 31, 1996 ................1
Consolidated Statements of Operations,
Nine and Three Months Ended,
September 30, 1997 and 1996..............................2
Consolidated Statement of Partners' Deficiency
Nine Months Ended September 30, 1997 ....................3
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 1997 and 1996 ...........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, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
ASSETS
1997 1996
(Unaudited) (Audited)
------------- -------------
<S> <C> <C>
INVESTMENTS IN LIMITED PARTNERSHIPS (Note 2) $ 5,716,979 $ 6,051,522
RENTAL PROPERTY, net of accumulated depreciation
(Notes 1 and 3) 3,027,626 3,158,470
CASH AND CASH EQUIVALENTS (Note 1) 6,697,094 5,849,983
CASH, restricted (Note 1) 35,750 35,750
OTHER ASSETS 215,761 190,643
------------ ------------
TOTAL ASSETS $ 15,693,210 $ 15,286,368
============ ============
LIABILITIES AND PARTNERS' DEFICIENCY
LIABILITIES:
Mortgage notes payable related to properties (Notes 3 and 7) $ 4,886,300 $ 4,886,300
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) 5,970,206 5,650,383
Accounts payable 49,381 47,372
Other liabilities 35,750 35,750
------------ ------------
16,736,637 16,414,805
------------ ------------
COMMITMENTS AND CONTINGENCIES (Notes 2, 5 and 6)
PARTNERS' DEFICIENCY:
General partners (361,624) (362,474)
Limited partners (681,803) (765,963)
------------ ------------
(1,043,427) (1,128,437)
------------ ------------
TOTAL LIABILITIES AND PARTNERS' DEFICIENCY $ 15,693,210 $ 15,286,368
============ ============
</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, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Nine months Three months Nine months Three months
ended ended ended ended
Sept. 30, 1997 Sept. 30, 1997 Sept. 30, 1996 Sept. 30, 1996
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
RENTAL OPERATIONS:
Revenues $ 798,573 $ 268,902 $ 950,365 $ 254,052
----------- ----------- ----------- -----------
Expenses:
Operating 363,511 110,204 537,448 154,572
Depreciation and amortization (Note 1) 130,844 43,615 186,748 43,704
Interest 363,465 121,155 442,503 95,092
----------- ----------- ----------- -----------
857,820 274,974 1,166,699 293,368
----------- ----------- ----------- -----------
LOSS FROM RENTAL OPERATIONS (59,247) (6,072) (216,334) (39,316)
----------- ----------- ----------- -----------
PARTNERSHIP OPERATIONS:
Interest income 208,041 76,846 125,408 47,820
----------- ----------- ----------- -----------
Expenses:
Management fees - general partner (Note 3) 376,104 125,556 388,119 125,274
General and administrative 237,063 69,829 206,734 40,873
Interest expense 400,275 133,425 389,738 129,913
----------- ----------- ----------- -----------
1,013,442 328,810 984,591 296,060
----------- ----------- ----------- -----------
LOSS FROM PARTNERSHIP OPERATIONS (805,401) (251,964) (859,183) (248,240)
----------- ----------- ----------- -----------
GAIN FROM SALE OF RENTAL PROPERTY (Note 1) -- -- 2,050,417 --
EQUITY IN INCOME OF LIMITED PARTNERSHIPS AND
AMORTIZATION OF ACQUISITION COSTS 447,000 149,000 519,000 173,000
DISTRIBUTIONS FROM LIMITED PARTNERSHIPS
RECOGNIZED AS INCOME (Note 2) 502,658 235,526 597,425 468,225
----------- ----------- ----------- -----------
NET INCOME $ 85,010 $ 126,490 $ 2,091,325 $ 353,669
=========== =========== =========== ===========
NET INCOME PER LIMITED PARTNERSHIP
INTEREST (Note 1) $ 5 $ 8 $ 124 $ 21
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
2
<PAGE> 5
REAL ESTATE ASSOCIATES LIMITED VI AND SUBSIDIARIES
(A CALIFORNIA LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENT OF PARTNERS' DEFICIENCY
NINE MONTHS ENDED SEPTEMBER 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
---------- ------------ -----------
<S> <C> <C> <C>
PARTNERSHIP INTERESTS,
September 30, 1997 16,810
===========
DEFICIENCY, January 1, 1997 $ (362,474) $ (765,963) $(1,128,437)
Net income for the nine months
ended September 30, 1997 850 84,160 85,010
----------- ----------- -----------
DEFICIENCY, September 30, 1997 $ (361,624) $ (681,803) $(1,043,427)
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
3
<PAGE> 6
REAL ESTATE ASSOCIATES LIMITED VI AND SUBSIDIARIES
(A CALIFORNIA LIMITED PARTNERSHIP)
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 85,010 $ 2,091,325
Adjustments to reconcile net income (loss) to net
cash used in operating activities:
Equity in income of limited partnerships
and amortization of acquisition costs (447,000) (519,000)
Depreciation 130,844 186,748
Increase in receivables from limited partnerships -- (30,000)
(Increase) decrease in other assets (25,118) 261,096
Increase in accrued interest payable 319,823 230,738
Decrease in accounts payable 2,009 (167,511)
Decrease in other liabilities -- (60,540)
Gain on sale of rental property -- (2,050,417)
----------- -----------
Net cash provided by (used in) operating activities 65,568 (57,561)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions to limited partnerships recognized as
as a return of capital 781,543 171,559
Proceeds from sale of rental property -- 5,883,245
----------- -----------
Net cash provided by investing activities 781,543 6,054,804
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of mortgages -- (5,052,395)
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 847,111 944,848
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 5,849,983 4,895,340
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 6,697,094 $ 5,840,188
=========== ===========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period for interest $ 443,917 $ 202,595
=========== ===========
</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, 1997
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, 1996 prepared by Real Estate Associates
Limited VI and Subsidiaries (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, 1997 and the results of operations
for the nine and three months then ended and changes in cash flows for
the nine months then ended.
The general partners have a 1 percent interest in profits and losses of
the Partnership. The limited partners have the remaining 99 percent
interest which is allocated in proportion to their respective individual
investments. National Partnership Investments Corp. (NAPICO) is the
corporate general partner of the Partnership.
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 and are being amortized on a straight line basis over
the estimated lives of the underlying assets, which is generally 30
years.
5
<PAGE> 8
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
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. The Partnership has its cash and cash equivalents on
deposit primarily with one high credit quality financial institution.
Such cash and cash equivalents are in excess of the FDIC insurance
limit.
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. After payment of
closings costs, the Partnership realized a gain of approximately
$2,000,000 and cash of $830,000.
IMPAIRMENT OF LONG-LIVED ASSETS
The Partnership adopted Statement of Financial Accounting Standards No.
121, Account for the Improvement of Long-Lived Assets and for Long-Lived
Assets To Be Disposed Of as of January 1, 1996 without a significant
effect on its financial statements. The Partnership reviews long-lived
assets to determine if there has been any permanent impairment whenever
events or changes in circumstances indicate that the carrying amount of
the asset may not be recoverable. If the sum of the expected future cash
flows is less than the carrying amount of the assets, the Partnership
recognizes an impairment loss.
6
<PAGE> 9
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
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 90 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, 1997, 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 for the nine months ended September 30, 1997:
<TABLE>
<CAPTION>
<S> <C>
Balance, beginning of period $ 6,051,522
Equity in income of limited partnerships 462,000
Amortization of acquisition costs (15,000)
Cash distributions recognized as a return of capital (781,543)
-----------
Balance, end of period $ 5,716,979
===========
</TABLE>
The following are unaudited combined estimated statements of operations
for the nine months ended September 30, 1997 and 1996 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, 1997
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIP (CONTINUED)
<TABLE>
<CAPTION>
Nine months Three months Nine months Three months
ended ended ended ended
Sept. 30, 1997 Sept. 30, 1997 Sept. 30, 1996 Sept. 30, 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenues:
Rental and other $ 15,933,000 $ 5,311,000 $ 15,429,000 $ 5,143,000
------------ ------------ ------------ ------------
Expenses:
Depreciation 2,697,000 899,000 2,646,000 882,000
Interest 6,234,000 2,078,000 4,290,000 1,430,000
Operating expenses 8,409,000 2,803,000 10,338,000 3,446,000
------------ ------------ ------------ ------------
Total expenses 17,340,000 5,780,000 17,274,000 5,758,000
------------ ------------ ------------ ------------
Net loss $ (1,407,000) $ (469,000) $ (1,845,000) $ (615,000)
============ ============ ============ ============
</TABLE>
NAPICO, or one of its affiliates, is the general partner and property
management agent for certain of the limited partnerships included above.
The Partnership is undergoing an extensive review of disposition,
refinancing or re-engineering alternatives for the properties in which
it has invested. The Partnership has began to incur expenses in
connection with this review by various third party professionals, which
amounted to $36,224 for the nine months ended September 30, 1997.
One of the limited partnerships (Drexel Park III) sold its property on
May 1, 1997, upon the necessary regulatory approval from the Maryland
Community Development Agency. Drexel Park III was sold for $2,450,000.
After payment of closing costs, the limited partnership received net
proceeds of approximately $733,000, which were distributed to the
Partnership. The investment balance as of December 31, 1996 was
$597,000.
NOTE 3 - MORTGAGE NOTE PAYABLE
The mortgage note outstanding at September 30, 1997 had an interest rate
of 8.78 percent per annum, with principal and interest payments due
monthly. The note matures in September 2006.
The note is collateralized by the underlying rental property.
8
<PAGE> 11
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 1997
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 through 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 is due at maturity of the
notes.
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 $376,000 and $388,000 for the nine months ended
September 30, 1997 and 1996, respectively.
The Partnership reimburses NAPICO for certain expenses. The
reimbursement to NAPICO was approximately $35,700 and $35,800 for the
nine months ended September 30, 1997 and 1996, and is included in
general and administrative expenses.
NOTE 6 - CONTINGENCIES
The corporate general partner of the Partnership is involved 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
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.
The Partnership has committed as of September 30, 1997 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.
The sale of Drexel Park III closed on May 1, 1997, upon the
necessary regulatory approval from the Maryland Community Development
Agency. Drexel Park III was sold for $2,450,000. Net proceeds of
approximately $733,000 have been received after deducting existing debt,
commissions and other related closing costs. The investment balance as
of December 31, 1996 was $597,000.
RESULTS OF OPERATIONS
On February 2, 1996, one of the consolidated general partnerships
(Drexel Park) sold its property for $6,300,000. After payment of
closings costs, the Partnership realized a gain of approximately
$2,000,000 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.
The Partnership is undergoing an extensive review of disposition,
refinancing or re-engineering alternatives for the properties in which
it has invested. The Partnership has began to incur expenses in
connection with this review by various third party professionals, which
amounted to $36,224 for the nine months ended September 30, 1997.
10
<PAGE> 13
REAL ESTATE ASSOCIATES LIMITED VI
(A CALIFORNIA LIMITED PARTNERSHIP)
SEPTEMBER 30, 1997
ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS (CONTINUED)
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 in accordance
with the equity accounting method.
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.
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, 1997
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Partnership's general partner is involved in various lawsuits. None of these
lawsuits are related to the Partnership.
ITEM 5. OTHER INFORMATION
On October 20, 1997 the Partnership became aware of an unsolicited tender offer
from Equity Resources Fund XXI (the "Buyer") to buy up to 400 units of limited
partnership interests (the "Units") in the Partnership for a price of $250 per
Unit. The Buyer did not contact the Corporate General Partner prior to
commencing its tender offer. By letter dated October 30, 1997, the Corporate
General Partner advised limited partners that it had determined not to take a
position with respect to the tender offer but cautioned limited partners to
consider certain items before determining whether to tender their Units to the
Buyer. A copy of the letter is attached as an Exhibit to this form 10-Q.
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, 1997
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
------------------------------------------------
Bruce Nelson
President
Date:
-----------------------------------------------
------------------------------------------------
Charles H. Boxenbaum
Chief Executive Officer
Date:
-----------------------------------------------
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
PARTNERSHIP'S STATEMENTS OF EARNINGS AND BALANCE DSHEETS AND IS QUALIFIED IN ITS
ENTIREY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-10-1997
<PERIOD-END> SEP-30-1997
<CASH> 6,697,094
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,948,605
<PP&E> 5,665,419
<DEPRECIATION> 2,637,793
<TOTAL-ASSETS> 15,693,210
<CURRENT-LIABILITIES> 49,381
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,043,427
<TOTAL-LIABILITY-AND-EQUITY> 15,693,210
<SALES> 0
<TOTAL-REVENUES> 1,956,272
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,107,522
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 763,740
<INCOME-PRETAX> 85,010
<INCOME-TAX> 0
<INCOME-CONTINUING> 85,010
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 85,010
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
