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 September 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 September 30, 1995 and December 31, 1994 3
Statements of Operations
For the three months and nine months ended
September 30, 1995 and 1994 4
Statements of Cash Flows
For the three months and nine months ended
September 30, 1995 and 1994 5
Notes To Financial Statements 6-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-14
PART II
1. Legal Proceedings 15
2. Changes in Securities 15
3. Defaults upon Senior Securities 15
4. Submission of Matters to a Vote of Security Holders 15
5. Other Information 15
6. Exhibits and Reports on Form 8-K 15
Signatures 16
<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
September 30, 1995 December 31, 1994*
<S> <C> <C>
ASSETS
Cash and equivalents $ 739,460 $ 1,617,604
Cash and equivalents - restricted 702,695 230,604
Investment securities 1,269,399 --
Accounts receivable 134,966 381,455
Land, buildings and amenities, net 42,567,310 43,872,072
Assets held for development, net 1,760,415 1,784,457
Other assets 361,893 381,692
----------- -----------
$ 47,536,138 $ 48,267,884
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Mortgages payable $ 27,712,349 $ 27,883,025
Accounts payable 371,938 265,153
Distributions payable 239,571 239,571
Security deposits 246,691 282,517
Other liabilities 469,338 23,009
----------- -----------
29,039,887 28,693,275
Partners' equity 18,496,251 19,574,609
----------- -----------
$ 47,536,138 $ 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 (356,048) (3,596) (359,644)
Cash distributions
declared to date (9,117,732) (92,098) (9,209,830)
Repurchase of limited
partnership units (169,369) -- (169,369)
----------- ---------- -----------
Balances at
September 30, 1995 $ 18,666,775 $ (170,524) $ 18,496,251
=========== ========== ===========
* 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 Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 2,265,221 $ 2,198,330 $ 6,558,554 $ 6,458,970
Interest and other income 33,491 23,005 89,755 93,006
---------- ---------- ---------- ----------
2,298,712 2,221,335 6,648,309 6,551,976
Expenses:
Operating expenses 712,931 825,783 1,825,979 1,943,861
Operating expenses - affiliated 260,105 261,940 801,323 795,843
Amortization of capitalized
leasing costs -- 5,202 1,091 26,049
Interest expense 590,756 585,719 1,776,045 1,760,570
Management fees 113,381 111,076 329,419 325,573
Real estate taxes 188,436 203,368 559,617 563,661
Professional and administrative
expenses 35,596 32,650 106,562 105,993
Professional and administrative
expenses - affiliated 49,458 45,902 145,601 142,498
Depreciation and amortization 479,649 514,341 1,462,316 1,548,821
---------- ---------- ---------- ----------
2,430,312 2,585,981 7,007,953 7,212,869
---------- ---------- ---------- ----------
Net loss $ (131,600) $ (364,646) $ (359,644) $ (660,893)
========== ========== ========== ==========
Net loss allocated to the limited
partners $ (130,284) $ (361,000) $ (356,048) $ (654,284)
========== ========== ========== ==========
Net loss per limited partnership
unit $ (2.75) $ (7.61) $ (7.51) $ (13.79)
========== ========== ========== ==========
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 Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (131,600) $ (364,646) $ (359,644) $ (660,893)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Accrued interest on investment
securities (6,914) -- (18,703) --
Amortization of capitalized leasing
costs -- 5,202 1,091 26,049
Depreciation and amortization 479,649 514,341 1,462,316 1,548,821
Changes in assets and liabilities:
Cash and equivalents - restricted (226,490) (136,491) (472,091) (329,379)
Accounts receivable 11,179 (10,907) 246,489 (21,507)
Other assets (34,933) (1,688) (47,747) (13,213)
Accounts payable 66,456 (47,497) 106,785 (21,658)
Security deposits (8,956) (5,645) (35,826) 1,423
Other liabilities 189,967 204,471 446,329 446,173
--------- --------- --------- ---------
Net cash provided by operating
activities 338,358 157,140 1,328,999 975,816
--------- --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to land, buildings and
amenities (36,865) (5,231) (67,059) (8,961)
Purchase of investment securities (649,419) -- (1,750,120) --
Maturity of investment securities 499,424 -- 499,424 --
--------- --------- --------- ----------
Net cash used in investing
activities (186,860) (5,231) (1,317,755) (8,961)
--------- --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgages
payable (58,082) (55,319) (170,676) (162,624)
Cash distributions (239,570) (239,544) (718,712) (598,900)
--------- -------- -------- ---------
Net cash used in financing
activities (297,652) (294,863) (889,388) (761,524)
--------- -------- -------- ---------
Net increase (decrease) in cash
and equivalents (146,154) (142,954) (878,144) 205,331
CASH AND EQUIVALENTS, beginning of
period 885,614 1,743,190 1,617,604 1,394,905
--------- --------- --------- ---------
CASH AND EQUIVALENTS, end of period $ 739,460 $ 1,600,236 $ 739,460 $ 1,600,236
========= ========= ========= =========
Interest paid on a cash basis $ 591,161 $ 586,097 $ 1,777,235 $ 1,761,681
========= ========= ========= =========
</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 nine months ended
September 30, 1995 and 1994.
1. Cash and Equivalents - Restricted
Cash and equivalents - restricted represents funds received for
residential security deposits and funds which have been escrowed with
mortgage companies for property taxes and insurance in accordance with
the loan agreements.
2. Investment Securities
Investment securities represent investments in Certificates of Deposit
or securities issued by the U.S. Government 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 September 30, 1995:
Amortized Maturity Value At
Type Cost Date Maturity
U.S. Treasury Bill $ 410,817 10/19/95 $ 412,000
U.S. Treasury Bill 204,588 11/16/95 206,000
FHLB Discount Note 207,270 12/29/96 204,904
FHLB Discount Note 265,545 01/18/96 270,000
FNMA Discount Note 181,179 02/20/96 185,000
--------- ---------
$1,269,399 $1,277,904
========= =========
The Partnership held no investment securities with initial maturities
greater than three months at December 31, 1994.
3. Mortgages Payable
Mortgages payable consist of the following:
September 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 $ 4,064,137 $ 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 967,652 976,736
(Continued next page)
<PAGE>
3. Mortgages Payable - Continued
September 30, December 31,
1995 1994
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 8,656,538 8,727,008
Mortgage payable with an insurance
company bearing interest at 7.25%,
due January 5, 2003, secured by
certain land, buildings and amenities 2,894,413 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 1,929,609 1,950,796
---------- ----------
$27,712,349 $27,883,025
========== ==========
4. Related Party Transactions
Pursuant to the partnership agreement, property management fees of
$329,419 and $325,573 for the nine months ended September 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 $2,839 and
$201 for the nine months ended September 30, 1995 and 1994,
respectively, as a repair and maintenance fee. The Partnership has
expensed as operating expenses - affiliated $561 as a repair and
maintenance fee during the nine months ended September 30, 1995 and has
capitalized $2,278 and $201 as part of land, buildings and amenities
during the nine months ended September 30, 1995 and 1994, respectively.
The Partnership was also charged the following amounts from NTS
Development Company for the nine months ended September 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 $ 185,145 $ 180,528
Property manager 606,301 606,604
Leasing agents 159,438 140,811
Other 6,685 13,492
-------- --------
$ 957,569 $ 941,435
======== ========
<PAGE>
5. Reclassification of 1994 Financial Statements
Certain reclassifications have been made to the September 30 and
December 31, 1994 financial statements to conform with the September
30, 1995 classifications. These reclassifications have no effect on
previously reported operations.
<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 September 30 were
as follows:
1995 1994
Wholly-Owned Properties
Sabal Park Apartments 91% 92%
Park Place Apartments Phase I 96% 98%
Willow Lake Apartments 95% 91%
Properties Owned in Joint Venture
with NTS-Properties IV (ownership
% at September 30, 1995)
Golf Brook Apartments (96%) 94% 93%
Plainview Point III Office Center (95%) 65% 93%
Rental and other income generated by the Partnership's properties for the
three months and nine months ended September 30, 1995 and 1994 was as
follows:
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Wholly-Owned Properties
Sabal Park Apartments $ 417,314 $ 420,082 $1,233,780 $1,235,122
Park Place Apartments
Phase I $ 455,751$ 436,678 $1,307,533 $1,259,712
Willow Lake Apartments $ 599,100 $ 525,133 $1,710,693 $1,550,222
Properties Owned in Joint
Venture with NTS-Properties
IV (ownership % at September
30, 1995)
Golf Brook Apartments $ 707,547 $ 655,771 $2,035,777 $1,973,821
(96%)
Plainview Point III Office $ 95,637 $ 170,022 $ 299,193 $ 499,116
Center (95%)
Sabal Park Apartments' occupancy decreased from 92% at September 30, 1994
to 91% at September 30, 1995. Average occupancy for the nine month period
ended September 30 decreased from 94% in 1994 to 91% in 1995. Average
occupancy for the three month period ended September 30 decreased from 95%
in 1994 to 92% in 1995. Rental and other income at Sabal Park Apartments
remained fairly constant for the three months and nine months ended
September 30, 1995 as compared to the same periods in 1994.
<PAGE>
Results of Operations - Continued
Park Place Apartments Phase I's occupancy decreased from 98% at September
30, 1994 to 96% at September 30, 1995. Average occupancy for the nine month
period ended September 30 remained constant at 94%. Average occupancy for
the three month period ended September 30 decreased from 96% in 1994 to 95%
in 1995. Rental and other income at Park Place Apartments Phase I increased
for the three months and nine months ended September 30, 1995 as compared
to the same periods in 1994 as a result of increased rental rates. These
increases were partially offset by decreased income from the rental of fully
furnished units.
Willow Lake Apartments' occupancy increased from 91% at September 30, 1994
to 95% at September 30, 1995. Average occupancy for the nine month period
ended September 30 increased from 85% in 1994 to 91% in 1995. Average
occupancy for the three month period increased from 88% in 1994 to 94% in
1995. Rental and other income increased for the three months and nine
months ended September 30, 1995 as compared to the same periods in 1994 as
a result of the increases in average occupancy, increased rental rates and
decreased rent concessions. The increases in rental and other income for
both periods are partially offset by decreased fees collected upon early
lease termination. The increase in rental and other income for the nine
month period is also partially offset by decreased income from fully
furnished units and 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 took to negotiate the settlement.
Golf Brook Apartments' occupancy increased from 93% at September 30, 1994
to 94% at September 30, 1995. Average occupancy for the nine month period
ended September 30 increased from 94% in 1994 to 95% in 1995. Average
occupancy for the three month period increased from 94% in 1994 to 96% in
1995. Rental and other income increased for the three months and nine
months ended September 30, 1995 as compared to the same periods in 1994 as
a result of increased rental rates, increased fees collected upon early
terminations and increased average occupancy.
The 28% decrease in occupancy at Plainview Point III Office Center from
September 30, 1994 to September 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. The
decrease in occupancy is partially offset by a new 10,343 square foot 63-
month lease. The tenant took occupancy in September 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 nine month
period ended September 30 decreased from 92% (1994) to 52% (1995). Average
occupancy for the three month period decreased from 93% (1994) to 54%
(1995). Rental and other income decreased at Plainview Point III Office
Center for the three months and nine months ended September 30, 1995 as
compared to the same periods in 1994 as a result of the decrease in
occupancy.
<PAGE>
Results of Operations - Continued
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 nine months ended September 30,
1995 as compared to the nine months ended September 30, 1994 as a result of
a settlement received in the first quarter of 1994. See page 10 (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 nine months ended September 30, 1995 as compared to the same period in
1994 is partially offset by increased interest income earned. Interest and
other income increased for the three month period as a result of increased
interest income. Interest income increased in both periods as a result of
increased cash being available for investment.
Operating expenses decreased for the nine months ended September 30, 1995
as compared to the same period in 1994 as a result of decreased repair and
maintenance costs at all the Partnership's properties, decreased utility
costs at Willow Lake Apartments, Park Place Apartments Phase I and Plainview
Point III Office Center and decreased janitorial costs at Plainview Point
III Office Center. These decreases in operating expenses for the nine month
period are partially offset by increased landscaping costs at Sabal Park and
Golf Brook Apartments. Operating expenses decreased for the three month
period as a result of decreased exterior painting costs at Sabal Park and
Golf Brook Apartments, decreased wood replacement costs at Sabal Park
Apartments and decreased roof repairs at Park Place Apartments Phase I. The
decreases in operating expenses for the three month period are partially
offset by increased exterior painting costs at Willow Lake Apartments and
Park Place Apartments Phase I and increased roof repairs at Willow Lake
Apartments.
Operating expenses - affiliated remained fairly constant for the three
months and nine months ended September 30, 1995 as compared to the same
periods in 1994.
Amortization of capitalized leasing costs decreased for the three months and
nine months ended September 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. Capitalized leasing costs were fully amortized
during the second quarter of 1995.
The increase in interest expense for the three months and nine months ended
September 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 ($8,656,538 mortgage payable) increased from 8.75% to
9.20%. See Note 3 of the Partnership's financial statements for details
regarding the Partnership's debt.
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.
<PAGE>
Results of Operations - Continued
Real estate taxes have remained fairly constant for the nine months ended
September 30, 1995 as compared to the same period in 1994. Real estate
taxes decreased for the three months ended September 30, 1995 as compared
to the same period in 1994 as a result of decreased taxes at Willow Lake
Apartments.
Professional and administrative expenses and professional and administrative
expenses - affiliated have remained fairly constant for the three months and
nine months ended September 30, 1995 as compared to the same periods in
1994.
Depreciation and amortization decreased for the three months and nine months
ended September 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 September 30, 1994.
Liquidity and Capital Resources
Cash provided by operations was $1,328,999 and $975,816 for the nine months
ended September 30, 1995 and 1994, respectively. These funds in conjunction
with cash on hand were used to make a 2% (annualized) cash distribution of
$718,712 for the nine months ended September 30, 1995 and a 1.83%
(annualized) cash distribution of $658,793 for the nine months ended
September 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 September 30, 1995, the Partnership had two mortgage loans each with
an insurance company in the amount of $4,064,137 and $967,652. 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).
As of September 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 September 30, 1995, the Partnership had a mortgage payable to an
insurance company in the amount of $8,656,538. The mortgage payable is due
November 1, 1997, bears interest at a fixed rate of 9.20% 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 September 30, 1995, the Partnership also had two mortgage loans each
with an insurance company in the amount of $2,894,413 and $1,929,609. Both
mortgages are due January 5, 2003, currently bear interest at a fixed rate
<PAGE>
Liquidity and Capital Resources - Continued
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 purchase of investment securities. As part of its
cash management activities, the Partnership has purchased Certificates of
Deposit or securities issued by the U.S. Government 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
provided by investing activities are derived from the maturity of investment
securities. 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 $8,656,538 mortgage payable
(discussed on page 12). Effective December 1, 1994, the interest rate
increased from 8.75% to 9.20%.
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 10 regarding the tenant move-outs. The demand on future
liquidity is also anticipated to increase as a result of 2,516 square feet
in leases expiring at Plainview Point III Office Center from October 1, 1995
to September 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 September 30, 1995, no commitments had been made in
connection with these capital improvements.
The demand on future liquidity may also increase during the next 12 months
due to the Partnership's receipt of a market analysis which shows it to be
advantageous to build additional apartment units (Phase III) at Park Place
Apartments on land owned by the Partnership (see page 14). Efforts to sell
the land have not produced attractive prices. A phased development of
apartment units on this land utilizing cash reserves and a portion of cash
flow is being considered. As of September 30, 1995, no commitments have
been made in connection with this project.
<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 nine months ended September 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 $(356,048) $ 711,525 $ 711,525
1994 (654,284) 652,205 652,205
General Partner:
1995 $ (3,596) $ 7,187 $ 7,187
1994 (6,609) 6,588 6,588
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 $1,760,000 is land cost, capitalized interest, common area
costs and amenity costs. The Partnership intends to use the land to
construct Park Place Apartments Phase III as discussed on page 13.
<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 September 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: November 10, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AS OF SEPTEMBER 30, 1995 AND FROM THE STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,442,155
<SECURITIES> 1,269,399
<RECEIVABLES> 134,966
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 42,567,310
<DEPRECIATION> 0<F2>
<TOTAL-ASSETS> 47,536,138
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 27,712,349
<COMMON> 0
0
0
<OTHER-SE> 18,496,251
<TOTAL-LIABILITY-AND-EQUITY> 47,536,138
<SALES> 6,558,554
<TOTAL-REVENUES> 6,648,309
<CGS> 0
<TOTAL-COSTS> 4,979,745
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,776,045
<INCOME-PRETAX> (359,644)
<INCOME-TAX> 0
<INCOME-CONTINUING> (359,644)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (359,644)
<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>
