FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ________________ to ________________
Commission file number 0-13261
SHELTER PROPERTIES VI
(Exact name of small business issuer as specified in its charter)
South Carolina 57-0755618
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Beattie Place, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 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
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
SHELTER PROPERTIES VI
BALANCE SHEET
(Unaudited)
(in thousands, except per unit data)
March 31, 2000
Assets
Cash and cash equivalents $ 2,779
Receivables and deposits 271
Restricted escrows 1,107
Other assets 390
Investment properties:
Land $ 4,950
Buildings and related personal property 50,678
55,628
Less accumulated depreciation (29,811) 25,817
$ 30,364
Liabilities and Partners' (Deficit) Capital
Liabilities
Accounts payable $ 140
Tenant security deposit liabilities 211
Accrued property taxes 709
Other liabilities 276
Mortgage notes payable 25,138
Partners' (Deficit) Capital
General partners $ (306)
Limited partners (42,324 units issued and
outstanding) 4,196 3,890
$ 30,364
See Accompanying Notes to Financial Statements
b)
SHELTER PROPERTIES VI
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended
March 31,
2000 1999
Revenues:
Rental income $2,597 $2,436
Other income 174 170
Total revenues 2,771 2,606
Expenses:
Operating 1,148 1,113
General and administrative 108 86
Depreciation 613 510
Interest 598 585
Property taxes 285 231
Total expenses 2,752 2,525
Net income $ 19 $ 81
Net income allocated to general partners (1%) $ -- $ 1
Net income allocated to limited partners (99%) 19 80
$ 19 $ 81
Net income per limited partnership unit $ .45 $ 1.89
See Accompanying Notes to Financial Statements
<PAGE>
c)
SHELTER PROPERTIES VI
STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Limited
Partnership General Limited
Units Partners Partners Total
<S> <C> <C> <C> <C>
Original capital contributions 42,324 $ 2 $42,324 $42,326
Partners' (deficit) capital at
December 31, 1999 42,324 $ (306) $ 4,177 $ 3,871
Net income for the three months
ended March 31, 2000 -- -- 19 19
Partners' (deficit) capital at
March 31, 2000 42,324 $ (306) $ 4,196 $ 3,890
See Accompanying Notes to Financial Statements
</TABLE>
d)
SHELTER PROPERTIES VI
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
Cash flows from operating activities:
<S> <C> <C>
Net income $ 19 $ 81
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 613 510
Amortization of discounts and loan costs 100 72
Change in accounts:
Receivables and deposits 391 165
Other assets (45) (51)
Accounts payable (70) (42)
Tenant security deposit liabilities (4) 16
Accrued property taxes 54 (204)
Other liabilities (28) (14)
Net cash provided by operating activities 1,030 561
Cash flows from investing activities:
Property improvements and replacements (142) (151)
Net (deposits to) withdrawals from restricted escrows (341) 435
Net cash (used in) provided by investing
activities (483) 284
Cash flows from financing activities:
Payments on mortgage notes payable (241) (226)
Distribution paid to partners (428) --
Net cash used in financing activities (669) (226)
Net (decrease) increase in cash and cash equivalents (122) 619
Cash and cash equivalents at beginning of period 2,901 1,323
Cash and cash equivalents at end of period $ 2,779 $ 1,942
Supplemental disclosure of cash flow information:
Cash paid for interest $ 498 $ 513
See Accompanying Notes to Financial Statements
</TABLE>
e)
SHELTER PROPERTIES VI
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited financial statements of Shelter Properties VI (the
"Partnership" or "Registrant") have been prepared in accordance with generally
accepted accounting principles for interim financial information and with the
instructions to Form 10-QSB and Item 310 (b) of Regulation S-B. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of Shelter Realty VI Corporation (the "Corporate General Partner"), all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three month
period ended March 31, 2000, are not necessarily indicative of the results that
may be expected for the fiscal year ending December 31, 2000. For further
information, refer to the financial statements and footnotes thereto included in
the Partnership's Annual Report on Form 10-KSB for the year ended October 31,
1999.
Change in Fiscal Year End: The Partnership elected to change its fiscal year end
from October 31 to December 31, as announced in its Form 8-K filed on January
12, 2000. This quarterly report presents the unaudited results of the
Partnership's operations for the first quarter ended March 31, 2000 and the
three month period ended March 31, 1999.
Note B - Transfer of Control
Pursuant to a series of transactions which closed on October 1, 1998 and
February 26, 1999, Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment Investment and Management Company ("AIMCO"), a publicly
traded real estate investment trust, with AIMCO being the surviving corporation
(the "Insignia Merger"). As a result, AIMCO acquired 100% ownership interest in
the Corporate General Partner. The Corporate General Partner does not believe
that this transaction has had or will have a material effect on the affairs and
operations of the Partnership.
Note C - Reconciliation of Cash Flows
The following is a reconciliation of the subtotal on the accompanying statements
of cash flows captioned "net cash provided by operating activities" to "net cash
used in operations", as defined in the partnership agreement of the Partnership
(the "Partnership Agreement"). However, "net cash used in operations" should not
be considered an alternative to net income as an indicator of the Partnership's
operating performance or to cash flows as a measure of liquidity.
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
(in thousands)
<S> <C> <C>
Net cash provided by operating activities $ 1,030 $ 561
Payments on mortgage notes payable (241) (226)
Property improvements and replacements (142) (151)
Change in restricted escrows, net (341) 435
Changes in reserves for net operating
liabilities (298) 102
Additional reserves (8) (721)
Net cash used in operations $ -- $ --
</TABLE>
The Corporate General Partner believed it to be in the best interest of the
Partnership to reserve net cash from operations of approximately $8,000 and
$721,000 at March 31, 2000 and 1999, respectively, to fund continuing capital
improvements and repairs at the Partnership's six investment properties.
Note D - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the Corporate General
Partner and its affiliates for the management and administration of all
Partnership activities. The Partnership Agreement provides for certain payments
to affiliates for services and reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership. The following transactions with the
Corporate General Partner and/or its affiliates were incurred for each of the
three months ended March 31, 2000 and 1999:
2000 1999
(in thousands)
Property management fees (included in
operating expenses) $140 $133
Reimbursement for services of affiliates
(included in general and administrative
expenses and investment properties) 45 50
During the three months ended March 31, 2000 and 1999, affiliates of the
Corporate General Partner were entitled to receive 5% of gross receipts from all
of the Registrant's properties as compensation for providing property management
services. The Registrant paid to such affiliates approximately $140,000 and
$133,000 for the three months ended March 31, 2000 and 1999, respectively.
Affiliates of the Corporate General Partner received reimbursements of
accountable administrative expenses amounting to approximately $45,000 and
$50,000 for the three months ended March 31, 2000 and 1999, respectively.
AIMCO and its affiliates currently own 24,225 limited partnership units in the
Partnership representing approximately 57.24% of the outstanding units. A number
of these units were acquired pursuant to tender offers made by AIMCO or its
affiliates. It is possible that AIMCO or its affiliates will make one or more
additional offers to acquire additional limited partnership interests in the
Partnership for cash or in exchange for units in the operating partnership of
AIMCO. Under the Partnership Agreement, unitholders holding a majority of the
Units are entitled to take action with respect to a variety of matters. As a
result of its ownership of approximately 57.24% of the outstanding units, AIMCO
is in a position to influence all voting decisions with respect to the
Registrant. When voting on matters, AIMCO would in all likelihood vote the Units
it acquired in a manner favorable to the interest of the Corporate General
Partner because of their affiliation with the Corporate General Partner.
Note E - Distributions
During the two months ended December 31, 1999, a distribution was approved and
accrued for approximately $428,000 (approximately $424,000 to the limited
partners, $10.02 per limited partnership unit) from operations. The distribution
was paid during the three months ended March 31, 2000. No distributions were
declared or paid during the three months ended March 31, 1999.
Note F - Segment Reporting
Description of the types of products and services from which the reportable
segment derives its revenues: The Partnership has one reportable segment:
residential properties consisting of six apartment complexes located in five
states throughout the United States as follows: one each in Georgia, Iowa,
Florida, and Colorado, and two in North Carolina. The Partnership rents
apartment units to tenants for terms that are typically twelve months or less.
Measurement of segment profit or loss: The Partnership evaluates performance
based on segment profit (loss) before depreciation. The accounting policies of
the reportable segment are the same as those described in the summary of
significant accounting policies in the Partnership's Annual Report on Form
10-KSB for the year ended October 31, 1999.
Factors management used to identify the Partnership's reportable segment: The
Partnership's reportable segment consists of investment properties that offer
similar products and services. Although each of the investment properties are
managed separately, they have been aggregated into one segment as they provide
services with similar types of products and customers.
Segment information for the three month period ended March 31, 2000 and 1999, is
shown in the tables below (in thousands). The "Other" column includes
Partnership administration related items and income and expense not allocated to
the reportable segment.
2000 Residential Other Totals
Rental income $ 2,597 $ -- $ 2,597
Other income 162 12 174
Interest expense 598 -- 598
Depreciation 613 -- 613
General and administrative expense -- 108 108
Segment profit (loss) 115 (96) 19
Total assets 29,967 397 30,364
Capital expenditures for investment
properties 142 -- 142
1999 Residential Other Totals
Rental income $ 2,436 $ -- $ 2,436
Other income 161 9 170
Interest expense 585 -- 585
Depreciation 510 -- 510
General and administrative expense -- 86 86
Segment profit (loss) 158 (77) 81
Total assets 29,245 1,328 30,573
Capital expenditures for investment
properties 151 -- 151
Note G - Legal Proceedings
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, the Corporate General Partner and several of their affiliated
partnerships and corporate entities. The action purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia
("Insignia Affiliates") of interests in certain general partner entities, past
tender offers by Insignia Affiliates to acquire limited partnership units, the
management of partnerships by Insignia Affiliates and the Insignia Merger (see
"Note B - Transfer of Control"). The plaintiffs seek monetary damages and
equitable relief, including judicial dissolution of the Partnership. On June 25,
1998, the Corporate General Partner filed a motion seeking dismissal of the
action. In lieu of responding to the motion, the plaintiffs have filed an
amended complaint. The Corporate General Partner filed demurrers to the amended
complaint which were heard February 1999. Pending the ruling on such demurrers,
settlement negotiations commenced. On November 2, 1999, the parties executed and
filed a Stipulation of Settlement, settling claims, subject to final court
approval, on behalf of the Partnership and all limited partners who own units as
of November 3, 1999. Preliminary approval of the settlement was obtained on
November 3, 1999 from the Superior Court of the State of California, County of
San Mateo, at which time the Court set a final approval hearing for December 10,
1999. Prior to the December 10, 1999 hearing the Court received various
objections to the settlement, including a challenge to the Court's preliminary
approval based upon the alleged lack of authority of class plaintiffs' counsel
to enter the settlement. On December 14, 1999, the Corporate General Partner and
its affiliates terminated the proposed settlement. Certain plaintiffs have filed
a motion to disqualify some of the plaintiffs' counsel in the action. The
Corporate General Partner does not anticipate that costs associated with this
case will be material to the Partnership's overall operations.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature arising in the ordinary course of business.
Item 2. Management's Discussion and Analysis or Plan of Operation
The matters discussed in this Form 10-QSB contain certain forward-looking
statements and involve risks and uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the
disclosures contained in this Form 10-QSB and the other filings with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussion of the Registrant's business and results of operations, including
forward-looking statements pertaining to such matters, does not take into
account the effects of any changes to the Registrant's business and results of
operations. Accordingly, actual results could differ materially from those
projected in the forward-looking statements as a result of a number of factors,
including those identified herein.
The Partnership's investment properties consist of six apartment complexes. The
following table sets forth the average occupancy of the properties for each of
the three months ended March 31, 2000 and 1999:
Average
Occupancy
Property 2000 1999
Rocky Creek Apartments
Augusta, Georgia 92% 91%
Carriage House Apartments
Gastonia, North Carolina 93% 91%
Nottingham Square Apartments
Des Moines, Iowa 97% 95%
Foxfire/Barcelona Apartments
Durham, North Carolina (1) 92% 95%
River Reach Apartments
Jacksonville, Florida 95% 93%
Village Gardens Apartments
Fort Collins, Colorado (2) 95% 99%
(1) The decrease in average occupancy at Foxfire/Barcelona Apartments is due
to the renting, during the three months ended March 31, 1999, of corporate
units to a construction company that was building a hospital in the area.
The construction company is no longer renting such units.
(2) The decrease in average occupancy at Village Gardens Apartments is due to
a change in demographics of the market area.
Results of Operations
The Partnership realized net income of approximately $19,000 for the three
months ended March 31, 2000, compared to net income of approximately $81,000 for
the corresponding period in 1999. The decrease in net income for the three month
period ended March 31, 2000, is primarily attributable to an increase in total
expenses partially offset by an increase in total revenues. Total revenues
increased during the three month period ended March 31, 2000, primarily as a
result of an increase in rental income. Rental income increased due to an
increase in average rental rates at all of the Partnership's properties, reduced
concession costs at Rocky Creek, Carriage House and Nottingham Apartments and
reduced bad debt expense at Carriage House, Nottingham and Foxfire/Barcelona
Apartments, which more than offset reductions in occupancy at Foxfire/Barcelona
Apartments and Village Gardens Apartments.
The increase in total expenses during the three month period ended March 31,
2000 is primarily attributable to an increase in depreciation, general and
administrative, and property tax expenses. Depreciation expense increased due to
capital improvements completed during the past twelve months which are now being
depreciated. General and administrative expenses increased due to an increase in
professional fees necessary to operate the Partnership. Included in general and
administrative expenses at both March 31, 2000 and 1999, are reimbursements to
the Corporate General Partner allowed under the Partnership Agreement associated
with the quarterly and annual communications with investors and regulatory
agencies and the annual audit and appraisals required by the Partnership
Agreement are also included. Property tax expense increased due to the timing of
the receipt of tax bills.
As part of the ongoing business plan of the Partnership, the Corporate General
Partner monitors the rental market environment of each of its investment
properties to assess the feasibility of increasing rents, maintaining or
increasing occupancy levels and protecting the Partnership from increases in
expenses. As part of this plan, the Corporate General Partner attempts to
protect the Partnership from the burden of inflation-related increases in
expenses by increasing rents and maintaining a high overall occupancy level.
However, due to changing market conditions, which can result in the use of
rental concessions and rental reductions to offset softening market conditions,
there is no guarantee that the Corporate General Partner will be able to sustain
such a plan.
Liquidity and Capital Resources
At March 31, 2000, the Partnership had cash and cash equivalents of
approximately $2,779,000 as compared to approximately $1,942,000 at March 31,
1999. Cash and cash equivalents decreased approximately $122,000 for the three
months ended March 31, 2000 from the Partnership's year end of December 31,
1999. The decrease was due to approximately $483,000 of cash used in investing
activities and approximately $669,000 of cash used in financing activities
largely offset by approximately $1,030,000 of cash provided by operating
activities. Cash used in investing activities consisted primarily of net
deposits to restricted escrows maintained by the mortgage lender and, to a
lesser extent, property improvements, and replacements. Cash used in financing
activities consisted primarily of distributions paid to partners and, to a
lesser extent, payments of principal made on the mortgages encumbering the
Registrant's properties. The Registrant invests its working capital reserves in
money market accounts.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the investment properties to adequately maintain the
physical assets and other operating needs of the Partnership and to comply with
Federal, state, local, legal, and regulatory requirements. Capital improvements
planned for each of the Registrant's properties are detailed below.
Rocky Creek
Approximately $92,000 has been budgeted for capital improvements at Rocky Creek
Apartments for the year 2000 consisting primarily of carpet and vinyl
replacement, air conditioning unit replacements and appliance replacements.
During the three months ended March 31, 2000, the Partnership expended
approximately $40,000 for capital improvements at Rocky Creek primarily
consisting of carpet and vinyl replacement, other building enhancements, and
roof replacement. The improvements were funded from Partnership operating cash
and reserves.
Carriage House
Approximately $34,000 has been budgeted for capital improvement at Carriage
House Apartments for the year 2000 consisting primarily of carpet and vinyl
replacement, air conditioning unit replacements and appliance replacements.
During the three months ended March 31, 2000, the Partnership expended
approximately $16,000 for capital improvements at Carriage House primarily
consisting of carpet and vinyl replacement and appliance replacement. These
improvements were funded from Partnership operating cash and reserves.
Nottingham Square
Approximately $159,000 has been budgeted for capital improvements at Nottingham
Square Apartments for the year 2000 consisting primarily of carpet and vinyl
replacement, plumbing enhancements and appliance replacements. During the three
months ended March 31, 2000, the Partnership expended approximately $18,000 for
capital improvements at Nottingham Square primarily consisting of carpet and
vinyl replacements. These improvements were funded from Partnership operating
cash reserves.
Foxfire/Barcelona
Approximately $125,000 has been budgeted for capital improvements at
Foxfire/Barcelona Apartments for the year 2000 consisting primarily of carpet
and vinyl replacements, cabinet replacements, air conditioning units
replacements and appliance replacements. During the three months ended March 31,
2000, the Partnership expended approximately $27,000 for capital improvements at
Foxfire/Barcelona primarily consisting of carpet and vinyl replacement,
appliance replacement, and other structural improvements. These improvements
were funded from Partnership reserves.
River Reach
Approximately $274,000 has been budgeted for capital improvements at River Reach
Apartments for the year 2000 consisting primarily of carpet and vinyl
replacement, plumbing enhancements, air conditioning unit replacements,
appliance replacements and other structural enhancements. During the three
months ended March 31, 2000, the Partnership expended approximately $29,000 for
capital improvements at River Reach primarily consisting of carpet and vinyl
replacement, air conditioning unit replacements, plumbing fixtures and appliance
replacements. These improvements were funded from Partnership operating cash.
Village Gardens
Approximately $88,000 has been budgeted for capital improvements at Village
Gardens Apartments for the year 2000 consisting primarily of plumbing
enhancements, carpet and vinyl replacements and appliance replacements. During
the three months ended March 31, 2000, the Partnership expended approximately
$12,000 for capital improvements at Village Gardens primarily consisting of
carpet and vinyl replacements. These improvements were funded from Partnership
operating cash and reserves.
The budgeted capital expenditures will be incurred only if cash is available
from operations and Partnership reserves. To the extent that such budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.
The Partnership's current assets are thought to be sufficient for any near term
needs (exclusive of capital improvements) of the Partnership. The mortgage
indebtedness of approximately $25,138,000, net of discounts, is being amortized
over 257 months with a balloon payment of approximately $23,008,000 due on
November 15, 2002. The Corporate General Partner will attempt to refinance such
indebtedness and/or sell the properties prior to such maturity date. If the
properties cannot be refinanced or sold for a sufficient amount, the Partnership
will risk losing such properties through foreclosure.
During the two months ended December 31, 1999, a distribution was approved and
accrued for approximately $428,000 (approximately $424,000 to the limited
partners, $10.02 per limited partnership unit) from operations. The distribution
was paid during the three months ended March 31, 2000. No distributions were
declared or paid during the three months ended March 31, 1999. Future cash
distributions will depend on the levels of net cash generated from operations,
the availability of cash reserves, and the timing of debt maturities,
refinancings, and/or property sales. The Partnership's distribution policy is
reviewed on a semi-annual basis. In addition, the Partnership is restricted from
making distributions if the amount in the reserve account for each property
maintained by the mortgage lender is less than $400 per apartment unit at such
property. At March 31, 2000, the reserve account was adequately funded with a
balance of approximately $1,107,000. There can be no assurance, however, that
the Partnership will generate sufficient funds from operations, after required
capital improvements, to permit further distributions to its partners during the
remainder of 2000 or subsequent periods.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, the Corporate General Partner and several of their affiliated
partnerships and corporate entities. The action purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia Financial Group, Inc.
("Insignia") and entities which were, at one time, affiliates of Insignia
("Insignia Affiliates") of interests in certain general partner entities, past
tender offers by Insignia Affiliates to acquire limited partnership units, the
management of partnerships by Insignia Affiliates and the Insignia Merger (see
"Part 1 - Financial Information, Item 1. Financial Statements, Note B - Transfer
of Control"). The plaintiffs seek monetary damages and equitable relief,
including judicial dissolution of the Partnership. On June 25, 1998, the
Corporate General Partner filed a motion seeking dismissal of the action. In
lieu of responding to the motion, the plaintiffs have filed an amended
complaint. The Corporate General Partner filed demurrers to the amended
complaint which were heard February 1999. Pending the ruling on such demurrers,
settlement negotiations commenced. On November 2, 1999, the parties executed and
filed a Stipulation of Settlement, settling claims, subject to final court
approval, on behalf of the Partnership and all limited partners who own units as
of November 3, 1999. Preliminary approval of the settlement was obtained on
November 3, 1999 from the Superior Court of the State of California, County of
San Mateo, at which time the Court set a final approval hearing for December 10,
1999. Prior to the December 10, 1999 hearing the Court received various
objections to the settlement, including a challenge to the Court's preliminary
approval based upon the alleged lack of authority of class plaintiffs' counsel
to enter the settlement. On December 14, 1999, the Corporate General Partner and
its affiliates terminated the proposed settlement. Certain plaintiffs have filed
a motion to disqualify some of the plaintiffs' counsel in the action. The
Corporate General Partner does not anticipate that costs associated with this
case will be material to the Partnership's overall operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
Exhibit 27, Financial Data Schedule, is filed as an exhibit to
this report.
b) Reports on Form 8-K filed:
Form 8-K dated January 3, 2000, and filed January 12, 2000
documenting the decision of the Registrant to adopt a new
fiscal year. The new fiscal year will be for the twelve months
commencing January 1, 2000 and ending December 31, 2000.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SHELTER PROPERTIES VI
By: Shelter Realty VI Corporation
Corporate General Partner
By: /s/Patrick J. Foye
Patrick J. Foye
Executive Vice President
By: /s/Martha L. Long
Martha L. Long
Senior Vice President
and Controller
Date: May 15, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from SHELTER
PROPERTIES VI 2000 First Quarter 10-QSB and is qualified in its entirety by
reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000730013
<NAME> SHELTER PROPERTIES VI
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 2,779
<SECURITIES> 0
<RECEIVABLES> 271
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0 <F1>
<PP&E> 55,628
<DEPRECIATION> 29,811
<TOTAL-ASSETS> 30,364
<CURRENT-LIABILITIES> 0 <F1>
<BONDS> 25,138
0
0
<COMMON> 0
<OTHER-SE> 3,890
<TOTAL-LIABILITY-AND-EQUITY> 30,364
<SALES> 0
<TOTAL-REVENUES> 2,771
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,752
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 598
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19
<EPS-BASIC> 0.45 <F2>
<EPS-DILUTED> 0
<FN>
<F1> Registrant has an unclassified balance sheet. <F2> Multiplier is 1.
</FN>
</TABLE>
