UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark one)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] 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 0-14695
NTS-PROPERTIES VI, a Maryland Limited Partnership
(Exact name of registrant as specified in its charter)
Maryland 61-1066060
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
10172 Linn Station Road
Louisville, Kentucky 40223
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number,
including area code (502) 426-4800
Not Applicable
Former name, former address and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (l) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months, and (2) has been subject to such
filing requirements for the past 90 days.
YES X NO
<PAGE>
TABLE OF CONTENTS
Pages
PART I
Item 1. Financial Statements
Balance Sheets and Statement of Partners' Equity
as of June 30, 1995 and December 31, 1994 3
Statements of Operations
For the three months and six months ended
June 30, 1995 and 1994 4
Statements of Cash Flows
For the three months and six months ended
June 30, 1995 and 1994 5
Notes To Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8-13
PART II
1. Legal Proceedings 14
2. Changes in Securities 14
3. Defaults upon Senior Securities 14
4. Submission of Matters to a Vote of Security Holders 14
5. Other Information 14
6. Exhibits and Reports on Form 8-K 14
Signatures 15
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
NTS-PROPERTIES VI,
A Maryland Limited Partnership
BALANCE SHEETS AND STATEMENT OF PARTNERS' EQUITY
<CAPTION>
As of As of
June 30, 1995 December 31, 1994*
<S> <C> <C>
ASSETS
Cash and equivalents $ 1,361,819 $ 1,848,208
Investment securities 1,112,490 --
Accounts receivable 146,145 381,455
Land, buildings and amenities, net 42,982,263 43,872,072
Assets held for development, net 1,766,096 1,784,457
Other assets 349,106 381,692
------------ ------------
$ 47,717,919 $ 48,267,884
============ ============
LIABILITIES AND PARTNERS' EQUITY
Mortgages payable $ 27,770,431 $ 27,883,025
Accounts payable 305,482 265,153
Distributions payable 239,571 239,571
Security deposits 255,647 282,517
Other liabilities 279,371 23,009
------------ ------------
28,850,502 28,693,275
Partners' equity 18,867,417 19,574,609
------------ ------------
$ 47,717,919 $ 48,267,884
============ ============
</TABLE>
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
<S> <C> <C> <C>
PARTNERS' EQUITY
Capital contributions,
net of offering costs
(47,435 units) $ 40,518,631 $ 100 $ 40,518,731
Net income (loss) -
prior years (12,208,707) (74,930) (12,283,637)
Net loss - current year (225,769) (2,281) (228,050)
Cash distributions
declared to date (8,880,555) (89,703) (8,970,258)
Repurchase of limited
partnership units (169,369) -- (169,369)
------------ ------------ ------------
Balances at June 30,
1995 $ 19,034,231 $ (166,814) $ 18,867,417
============ ============ ============
<FN>
* Reference is made to the audited financial statements in the Annual
Report on Form 10-K as filed with the Commission on March 31, 1995.
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES VI,
A Maryland Limited Partnership
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 2,169,004 $ 2,196,939 $ 4,293,331 $ 4,260,640
Interest and other income 32,567 25,030 56,262 70,000
----------- ----------- ----------- -----------
2,201,571 2,221,969 4,349,593 4,330,640
Expenses:
Operating expenses 578,602 634,633 1,113,049 1,118,076
Operating expenses -
affiliated 270,368 262,882 540,656 533,902
Amortization of
capitalized leasing
costs 226 8,386 1,091 20,847
Interest expense 592,095 586,864 1,185,289 1,174,853
Management fees 109,653 109,864 216,039 214,498
Repair and maintenance fee -- -- 561 --
Real estate taxes 183,396 184,104 371,182 360,293
Professional and
administrative expenses 33,703 38,957 70,968 73,343
Professional and
administrative expenses
- affiliated 48,192 48,136 96,142 96,596
Depreciation and
amortization 485,159 515,233 982,666 1,034,479
----------- ----------- ----------- -----------
2,301,394 2,389,059 4,577,643 4,626,887
----------- ----------- ----------- -----------
Net loss $ (99,823) $ (167,090) $ (228,050) $ (296,247)
=========== =========== =========== ===========
Net loss allocated to
the limited partners $ (98,825) $ (165,419) $ (225,769) $ (293,285)
=========== =========== =========== ===========
Net loss per limited
partnership unit $ (2.08) $ (3.49) $ (4.76) $ (6.18)
=========== =========== =========== ===========
Weighted average number
of units 47,435 47,435 47,435 47,435
=========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
NTS-PROPERTIES VI,
A Maryland Limited Partnership
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (99,823) $ (167,090) $ (228,050) $ (296,247)
Adjustments to reconcile
net loss to net cash
provided by operating
activities:
Accrued interest on
investment securities (11,789) -- (11,789) --
Amortization of
capitalized
leasing costs 226 8,386 1,091 20,847
Depreciation and
amortization 485,159 515,233 982,666 1,034,479
Changes in assets
and liabilities:
Accounts receivable 4,155 (34,762) 235,310 (10,600)
Other assets 18,289 6,382 (12,807) (11,524)
Accounts payable (14,452) 22,929 40,329 25,839
Security deposits (3,994) 9,036 (26,870) 7,068
Other liabilities 67,301 65,241 256,362 241,702
----------- ----------- ----------- -----------
Net cash provided by
operating activities 445,072 425,355 1,236,242 1,011,564
----------- ----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to land,
buildings and amenities (25,788) (311) (30,194) (3,730)
Purchases of investment
securities (1,100,701) -- (1,100,701) --
----------- ----------- ----------- -----------
Net cash used in
investing activities (1,126,489) (311) (1,130,895) (3,730)
----------- ----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on
mortgages payable (56,884) (54,200) (112,594) (107,305)
Cash distributions (239,571) (179,678) (479,142) (359,356)
----------- ----------- ----------- -----------
Net cash used in
financing activities (296,455) (233,878) (591,736) (466,661)
----------- ----------- ----------- -----------
Net (decrease) increase
in cash and equivalents (977,872) 191,166 (486,389) 541,173
CASH AND EQUIVALENTS,
beginning of period 2,339,691 2,090,493 1,848,208 1,740,486
----------- ----------- ----------- -----------
CASH AND EQUIVALENTS,
end of period $ 1,361,819 $ 2,281,659 $ 1,361,819 $ 2,281,659
=========== =========== =========== ===========
Interest paid on a
cash basis $ 592,491 $ 587,234 $ 1,186,074 $ 1,175,586
=========== =========== =========== ===========
</TABLE>
<PAGE>
NTS-PROPERTIES VI,
A Maryland Limited Partnership
NOTES TO FINANCIAL STATEMENTS
The financial statements and schedules included herein should be read in
conjunction with the Partnership's 1994 Annual Report. In the opinion of
the general partner, all adjustments (only consisting of normal recurring
accruals) necessary for a fair presentation have been made to the
accompanying financial statements for the three months and six months ended
June 30, 1995 and 1994.
1. Investment Securities
Investment securities represent investments in Certificates of Deposit
or debt securities issued by the U.S. Treasury with initial maturities
of greater than three months. The investments are carried at cost which
approximates market value. The Partnership intends to hold the
securities until maturity. The following provides details regarding the
investments held at June 30, 1995:
Amortized Maturity Value At
Type Cost Date Maturity
U.S. Treasury Bill $ 202,519 08/17/95 $ 204,000
U.S. Treasury Bill 303,373 09/14/95 307,000
U.S. Treasury Bill 404,774 10/19/95 412,000
U.S. Treasury Bill 201,824 11/16/95 206,000
--------- ---------
$1,112,490 $1,129,000
========= =========
2. Mortgages Payable
Mortgages payable consist of the following:
June 30, December 31,
1995 1994
Mortgage payable with an insurance
company bearing interest at 8.375%,
due October 5, 2002, secured by
certain land, buildings and amenities $ 4,077,122 $ 4,102,291
Mortgage payable with an insurance
company bearing interest at 8.375%,
due October 5, 2002, secured by
certain land, buildings and amenities 970,743 976,736
Mortgage payable with an insurance
company bearing interest at 8.625%,
due August 1, 1997, secured by
certain land, buildings and amenities 9,200,000 9,200,000
Mortgage payable with an insurance
company bearing interest at 9.20%,
due November 1, 1997, secured by
certain land, buildings and amenities 8,680,568 8,727,008
(Continued next page)
<PAGE>
2. Mortgages Payable - Continued
June 30, December 31,
1995 1994
Mortgage payable with an insurance
company bearing interest at 7.25%,
due January 5, 2003, secured by
certain land, buildings and amenities $ 2,905,199 $ 2,926,194
Mortgage payable with an insurance
company bearing interest at 7.25%,
due January 5, 2003, secured by
certain land, buildings and amenities 1,936,799 1,950,796
----------- -----------
$27,770,431 $27,883,025
=========== ===========
3. Related Party Transactions
Pursuant to the partnership agreement, property management fees of
$216,039 and $214,498 for the six months ended June 30, 1995 and 1994,
respectively, were paid to NTS Development Company, an affiliate of the
general partner. The fee is equal to 5% of gross revenues of the
residential properties and 6% of gross revenues of the commercial
property. Also, as permitted by the partnership agreement, NTS
Development Company will receive a repair and maintenance fee equal to
5.9% of costs incurred which related to capital improvements and major
repair and renovation projects. The Partnership has incurred $1,098 and
$201 for the six months ended June 30, 1995 and 1994, respectively, as
a repair and maintenance fee. The Partnership has expensed $561 as a
repair and maintenance fee during the six months ended June 30, 1995 and
has capitalized $537 and $201 as part of land, buildings and amenities
during the six months ended June 30, 1995 and 1994, respectively. The
Partnership was also charged the following amounts from NTS Development
Company for the six months ended June 30, 1995 and 1994. These charges
include items which have been expensed as operating expenses -
affiliated or professional and administrative expenses - affiliated and
items which have been capitalized as other assets or as land, buildings
and amenities:
1995 1994
Administrative $ 124,087 $ 124,508
Property manager 408,241 404,455
Leasing agents 101,408 95,026
Other 3,062 9,010
-------- --------
$ 636,798 $ 632,999
======== ========
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
The occupancy levels at the Partnership's properties as of June 30 were as
follows:
1995 1994
Wholly-Owned Properties
Sabal Park Apartments 92% 93%
Park Place Apartments Phase I 94% 96%
Willow Lake Apartments 91% 85%
Properties Owned in Joint Venture
with NTS-Properties IV (ownership
% at June 30, 1995)
Golf Brook Apartments (96%) 93% 95%
Plainview Point III Office Center (95%) 48% 93%
Rental and other income generated by the Partnership's properties for the
three months and six months ended June 30, 1995 and 1994 was as follows:
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Wholly-Owned Properties
Sabal Park Apartments $ 406,706 $ 408,023 $ 816,467 $ 815,039
Park Place Apartments
Phase I $ 435,090 $ 420,997 $ 851,782 $ 823,034
Willow Lake Apartments $ 571,445 $ 529,915 $1,111,593 $1,025,089
Properties Owned in Joint
Venture with NTS-Properties
IV (ownership % at June
30, 1995)
Golf Brook Apartments $ 671,368 $ 687,298 $1,328,230 $1,318,050
(96%)
Plainview Point III Office $ 93,694 $ 163,157 $ 203,557 $ 329,094
Center (95%)
Sabal Park Apartments' occupancy decreased from 93% at June 30, 1994 to 92%
at June 30, 1995. Average occupancy for the six month period ended June 30
decreased from 93% in 1994 to 91% in 1995. Average occupancy for the three
month period ended June 30 remained constant at 92% during 1995 and 1994.
Rental and other income at Sabal Park Apartments remained fairly constant
for the three months and six months ended June 30, 1995 as compared to the
same periods in 1994.
<PAGE>
Results of Operations - Continued
Park Place Apartments Phase I's occupancy decreased from 96% at June 30,
1994 to 94% at June 30, 1995. Average occupancy for the six month period
ended June 30 increased from 93% in 1994 to 94% in 1995. Average occupancy
for the three month period ended June 30 remained constant at 94%. Rental
and other income at Park Place Apartments Phase I increased for the three
months and six months ended June 30, 1995 as compared to the same periods
in 1994 as a result of increased rental rates. These increases were
partially offset by decreased fees collected upon early lease terminations.
Rental and other income at Park Place Apartments Phase I for the six month
period increased also as a result of the increase in average occupancy.
Willow Lake Apartments' occupancy increased from 85% at June 30, 1994 to 91%
at June 30, 1995. Average occupancy for the six month period ended June 30
increased from 83% in 1994 to 90% in 1995. Average occupancy for the three
month period increased from 86% in 1994 to 91% in 1995. Rental and other
income increased for the three months and six months ended June 30, 1995 as
compared to the same periods in 1994 as a result of the increases in average
occupancy, decreased rent concessions and increased rental rates. The
increases in rental and other income for both periods are partially offset
by decreased income from the rental of fully furnished units and decreased
fees collected upon early lease termination. The increase in rental and
other income for the six month period is also partially offset by a $23,000
settlement (recorded as other income) received during the first quarter of
1994. This settlement was received from the insurance company of the
manufacturer of the pipe fittings which were used in the construction of
Willow Lake Apartments. The reimbursement was for certain repair expenses
the Partnership incurred from 1987 to 1991. The repair costs were expensed
at the time they were incurred due to the length of time it has taken to
negotiate the settlement.
Golf Brook Apartments' occupancy decreased from 95% at June 30, 1994 to 93%
at June 30, 1995. Average occupancy for the six month period ended June 30
decreased from 95% in 1994 to 94% in 1995. Average occupancy for the three
month period decreased from 96% in 1994 to 94% in 1995. Rental and other
income increased for the six months ended June 30, 1995 as compared to the
same period in 1994 as a result of increased rental rates. Rental and other
income at Golf Brook Apartments decreased for the three months ended June
30, 1995 as compared to the three months ended June 30, 1994 as a result of
the decrease in average occupancy.
The 45% decrease in occupancy at Plainview Point III Office Center from June
30, 1994 to June 30, 1995 can be attributed to two tenant move-outs
totalling approximately 26,000 square feet. Of this total, 16,400 square
feet represents a tenant who vacated the office center at the end of the
lease term due to the company's decision to consolidate its Louisville
processing center with one located in another city. The tenant occupied 27%
of the office center's rentable area. Approximately 9,600 square feet of
the total move-outs represents a tenant who vacated the premises January 31,
1995. The tenant's lease was on a month-to-month basis at the time of move-
out. The tenant's original lease term was for a period of four years. The
tenant occupied approximately 16% of the office center's rentable area.
There were no new leases during the 12 month period ended June 30, 1995.
The Partnership is actively seeking new tenants to occupy the vacant space.
At this time, it is unknown the extent and cost of any tenant improvements
which will be required to attract new tenants. Average occupancy for the
six month period ended June 30 decreased from 91% (1994) to 51% (1995).
<PAGE>
Results of Operations - Continued
Average occupancy for the three month period decreased from 93% (1994) to
48% (1995). Rental and other income decreased at Plainview Point III Office
Center for the three months and six months ended June 30, 1995 as compared
to the same period in 1994 as a result of the decrease in occupancy.
Subsequent to June 30, 1995, a new 63-month lease for approximately 10,300
square feet was signed at Plainview Point III Office Center. The tenant is
expected to take occupancy during the third quarter. With this new lease,
the building's occupancy will increase to 64%.
If present trends continue, the Partnership will be able to continue at its
current level of operations without the need of any additional financing.
Current occupancy levels are considered adequate to continue the operation
of the Partnership's properties without the need of any additional
financing.
Interest and other income decreased for the six months ended June 30, 1995
as compared to the six months ended June 30, 1994 as a result of a
settlement received in the first quarter of 1994. See page 9 (Willow Lake
Apartments) for a discussion regarding this settlement. Interest and other
income also includes interest income from investments made by the
Partnership with excess cash. The decrease in interest and other income for
the six months ended June 30, 1995 as compared to the same period in 1994
is partially offset by increased interest income earned as a result of
increased cash available for investment. Interest income increased for the
six month period as a result of increased cash being available for
investment.
Operating expenses overall remained fairly constant for the six months ended
June 30, 1995 as compared to the same period in 1994. Operating expenses
decreased for the three month period ended June 30, 1995 as compared to the
1994 three month period as a result of decreased exterior painting costs at
Golf Brook Apartments, decreased maintenance and utility costs at Park Place
Apartments Phase I and Plainview Point III Office Center, and decreased
landscape costs at Park Place Apartments Phase I and Golf Brook Apartments.
These decreases in operating expenses for the three month period are
partially offset by increased maintenance and landscape costs at Sabal Park
Apartments and Willow Lake Apartments.
Operating expenses - affiliated remained fairly constant for the three
months and six months ended June 30, 1995 as compared to the same periods
in 1994.
Amortization of capitalized leasing costs decreased for the three months and
six months ended June 30, 1995 as compared to the same periods in 1994 as
a result of a portion of the costs capitalized during start-up having become
fully amortized.
The increase in interest expense for the three months and six months ended
June 30, 1995 as compared to the same periods in 1994 is the result of an
interest rate change (in accordance with the mortgage agreement) effective
December 1, 1994. The interest rate on the Willow Lake Apartments permanent
financing ($8,680,568 mortgage payable) increased from 8.75% to 9.2%. See
Note 2 of the Partnership's financial statements for details regarding the
Partnership's debt.
<PAGE>
Results of Operations - Continued
Management fees are calculated as a percentage of cash collections; however,
revenue for reporting purposes is on the accrual basis. As a result, the
fluctuations of revenues between periods will differ from the fluctuations
of management fee expense.
Repair and maintenance fees are calculated as a percentage (5.9%) of major
renovation and repair costs. The 1995 repair and maintenance fees are
associated with the wood replacement costs at Sabal Park Apartments. This
fee was paid to NTS Development Company, an affiliate of the general
partner, pursuant to an agreement with the Partnership.
The increase in real estate taxes for the six months ended June 30, 1995 as
compared to the same period in 1994 is a result of increased property
assessments for Golf Brook and Sabal Park Apartments and increased tax rates
for Park Place Apartments Phase I. The assessment for Plainview Point Phase
III Office Center has remained constant. Current year real estate taxes are
based on the prior year's actual expense until current year rates and
assessments are received at which time any necessary adjustments are made.
As of June 30, 1995, no current year information was available with the
exception of Willow Lake Apartments. Real estate taxes at Willow Lake
Apartments have remained constant. The change in real estate taxes for the
three month period was not significant.
Professional and administrative expenses and professional and administrative
expenses - affiliated have remained fairly constant for the three months and
six months ended June 30, 1995 as compared to the same periods in 1994.
Depreciation and amortization decreased for the three months and six months
ended June 30, 1995 as compared to the same periods in 1994 due to a portion
of the assets with shorter lives at the Partnership's residential properties
having become fully depreciated and as a result of a portion of the original
tenant improvements at Plainview Point III Office Center becoming fully
depreciated since June 30, 1994.
Liquidity and Capital Resources
Cash provided by operations was $1,236,242 and $1,011,564 for the six months
ended June 30, 1995 and 1994, respectively. These funds in conjunction with
cash on hand were used to make a 2% (annualized) cash distribution of
$479,142 for the six months ended June 30, 1995 and a 1.75% (annualized)
cash distribution of $419,222 for the six months ended June 30, 1994. The
annualized distribution rate is calculated as a percent of the original
capital contribution. The limited partners received 99% and the general
partner received 1% of the distributions. The primary source of future
liquidity and distributions is expected to be derived from cash generated
by the Partnership's properties after adequate cash reserves are established
for future leasing and tenant finish costs.
As of June 30, 1995, the Partnership had two mortgage loans each with an
insurance company in the amount of $4,077,122 and $970,743. Both mortgages
are due October 5, 2002, currently bear interest at a fixed rate of 8.375%
and are secured by the land, buildings and amenities of Park Place
Apartments Phase I. Current monthly principal payments on both mortgages
are based upon a 27-year amortization schedule. The outstanding balance at
maturity based on the current rate of amortization would be $4,413,955
($3,565,118 and $848,837).
<PAGE>
Liquidity and Capital Resources - Continued
As of June 30, 1995, the Partnership also had a mortgage payable to an
insurance company in the amount of $9,200,000. The mortgage bears interest
at a fixed rate of 8.625% and is secured by the land, buildings and
amenities of Golf Brook Apartments. The unpaid balance of the loan is due
August 1, 1997.
As of June 30, 1995, the Partnership had a mortgage payable to an insurance
company in the amount of $8,680,568. The mortgage payable is due November
1, 1997, bears interest at a fixed rate of 9.2% and is secured by the land,
buildings and amenities of Willow Lake Apartments. Current monthly
principal payments are based upon a 25-year amortization schedule. The
outstanding balance at maturity based on the current rate of amortization
will be $8,433,356.
As of June 30, 1995, the Partnership also had two mortgage loans each with
an insurance company in the amount of $2,905,199 and $1,936,799. Both
mortgages are due January 5, 2003, currently bear interest at a fixed rate
of 7.25% and are secured by the land, buildings and amenities of Sabal Park
Apartments. Current monthly principal payments on both mortgages are based
upon a 27-year amortization schedule. The outstanding balance at maturity
based on the current rate of amortization would be $4,122,326 ($2,473,396
and $1,648,930).
The majority of the Partnership's cash flow is derived from operating
activities. Cash flows used in investing activities are for capital
improvements at the Partnership's properties. The capital improvements are
funded by cash flow from operations. Cash flows used in investing
activities are also for purchases of investment securities. As part of its
cash management activities, the Partnership has purchased Certificates of
Deposit or debt securities issued by the U.S. Treasury with initial
maturities of greater than three months to improve the return on its excess
cash. The Partnership intends to hold the securities until maturity. Cash
flows used in financing activities are for cash distributions and principal
payments on mortgages payable. The Partnership does not expect any material
changes in the mix and relative cost of capital resources except for an
increase in interest payments resulting from an interest rate change
associated with the $8,680,568 mortgage payable (as discussed above).
Effective December 1, 1994, the interest rate increased from 8.75% to 9.2%.
In the next 12 months, the demand on future liquidity is anticipated to
increase as a result of the decreases in occupancy which took place at
Plainview Point III Office Center during the first quarter of 1995. See the
discussion on page 9 regarding the tenant move-outs. The demand on future
liquidity is also anticipated to increase as a result of approximately 2,516
square feet in leases expiring at Plainview Point III Office Center from
July 1, 1995 to June 30, 1996. The Partnership is actively seeking new
tenants to occupy the vacated space. At this time, the future leasing and
tenant finish costs which will be required to renew the current leases or
to obtain new tenants are unknown. It is anticipated that the cash flow
from operations and cash reserves will be sufficient to meet the needs of
the Partnership. As of June 30, 1995, no commitments had been made in
connection with these capital improvements.
<PAGE>
Liquidity and Capital Resources - Continued
The table below presents that portion of the distributions that represent
a return of capital on a Generally Accepted Accounting Principle basis for
the six months ended June 30, 1995 and 1994. These distributions were
funded by cash flow derived from operating activities.
Net Loss Cash Return of
Allocated Distributions Capital
Limited Partners:
1995 $(225,769) $ 474,351 $ 474,351
1994 (293,285) 415,030 415,030
General Partner:
1995 $ (2,281) $ 4,791 $ 4,791
1994 (2,962) 4,192 4,192
In an effort to continue to improve occupancy at the Partnership's
residential properties, the Partnership has an on-site leasing staff,
employees of NTS Development Company, at each of the apartment communities.
The staff handles all on-site visits from potential tenants, coordinates
local advertising with NTS Development Company's marketing staff, makes
visits to local companies to promote fully furnished units and negotiates
lease renewals with current residents.
The leasing and renewal negotiations for the Partnership's commercial
property are handled by leasing agents, employees of NTS Development
Company, located in Louisville, Kentucky. The leasing agents are located
in the same city as the commercial property. All advertising for the
commercial property is coordinated by NTS Development Company's marketing
staff located in Louisville, Kentucky.
Leases at Plainview Point III Office Center provide for tenants to
contribute toward the payment of increases in common area maintenance
expenses, insurance, utilities and real estate taxes. Leases at the office
center also provide for rent increases which are based upon increases in the
consumer price index. These lease provisions, along with the fact that
residential leases are generally for a period of one year, should protect
the Partnership's operations from the impact of inflation and changing
prices.
The Partnership owns approximately 15 acres of land, adjacent to the Park
Place Apartments, in Lexington, Kentucky which is zoned for 163 apartment
units (Park Place Apartments Phase III). Included in the cost of
approximately $1,766,000 is land cost, capitalized interest, common area
costs and amenity costs. The Partnership continues to evaluate whether to
sell or develop the tract of land.
<PAGE>
PART II. OTHER INFORMATION
1. Legal Proceedings
None
2. Changes in Securities
None
3. Defaults upon Senior Securities
None
4. Submission of Matters to a Vote of Security Holders
None
5. Other Information
None
6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K
There were no Form 8-K reports filed during the three months
ended June 30, 1995.
<PAGE>
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.
NTS-PROPERTIES VI, a Maryland Limited
Partnership
(Registrant)
By: NTS-Properties Associates VI
By: NTS Capital Corporation,
General Partner
/s/ John W. Hampton
John W. Hampton
Senior Vice President
Date: August 9, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF JUNE 30, 1995 AND FROM THE STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED JUNE 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,361,819
<SECURITIES> 1,112,490
<RECEIVABLES> 146,145
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 42,982,263
<DEPRECIATION> 0<F2>
<TOTAL-ASSETS> 47,717,919
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 27,770,431
<COMMON> 0
0
0
<OTHER-SE> 18,867,417
<TOTAL-LIABILITY-AND-EQUITY> 47,717,919
<SALES> 4,293,331
<TOTAL-REVENUES> 4,349,593
<CGS> 0
<TOTAL-COSTS> 3,225,244
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,185,289
<INCOME-PRETAX> (228,050)
<INCOME-TAX> 0
<INCOME-CONTINUING> (228,050)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (228,050)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>The Partnership has an unclassified balance sheet; therefore, the value is $0.
<F2>This information is not disclosed in the Partnership's Form 10-Q filing.
</FN>
</TABLE>
