<PAGE>
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 March 31, 1996
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
Exhibit Index: See page 14
Total Pages: 15
<PAGE>
TABLE OF CONTENTS
Pages
PART I
Item 1. Financial Statements
Balance Sheets and Statement of Partners' Equity
as of March 31, 1996 and December 31, 1995 3
Statements of Operations
For the three months ended March 31, 1996 and 1995 4
Statements of Cash Flows
For the three months ended March 31, 1996 and 1995 5
Notes To Financial Statements 6-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-13
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
- 2 -
<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
March 31, 1996 December 31, 1995*
-------------- ------------------
<S> <C> <C>
ASSETS
Cash and equivalents $ 831,138 $ 867,902
Cash and equivalents - restricted 506,129 301,650
Investment securities 940,952 1,151,355
Accounts receivable 231,527 158,429
Land, buildings and amenities, net 41,751,585 42,196,272
Assets held for development, net 1,742,053 1,751,234
Other assets 368,300 386,949
----------- -----------
$46,371,684 $46,813,791
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Mortgages payable $27,592,489 $27,653,044
Accounts payable 322,579 305,779
Accounts payable - construction -- 70,456
Distributions payable 231,773 239,571
Security deposits 232,629 235,187
Other liabilities 209,472 21,122
----------- -----------
28,588,942 28,525,159
Partners' equity 17,782,742 18,288,632
----------- -----------
$46,371,684 $46,813,791
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
Limited General
Partners Partner Total
-------- ------- -----
<S> <C> <C> <C>
PARTNERS' EQUITY
Capital contributions, net of
offering costs $ 40,518,631 $ 100 $ 40,518,731
Net income (loss) - prior years (12,533,124) (78,207) (12,611,331)
Net income - current year 110,765 1,119 111,884
Cash distributions declared to
date (9,584,361) (96,812) (9,681,173)
Repurchase of limited
partnership units (555,369) -- (555,369)
------------ ---------- ------------
Balances at March 31, 1996 $ 17,956,542 $ (173,800) $ 17,782,742
============ ========== ===========
</TABLE>
* Reference is made to the audited financial statements in the Annual
Report on Form 10-K as filed with the Commission on March 29, 1996
- 3 -
<PAGE>
<TABLE>
NTS-PROPERTIES VI,
A Maryland Limited Partnership
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended
March 31,
---------
1996 1995
---- ----
<S> <C> <C>
Revenues:
Rental income $ 2,346,366 $ 2,124,326
Interest and other income 31,810 23,696
----------- -----------
2,378,176 2,148,022
Expenses:
Operating expenses 526,516 535,315
Operating expenses - affiliated 282,643 270,849
Interest expense 587,813 593,194
Management fees 115,787 106,384
Real estate taxes 187,387 187,787
Professional and administrative expenses 36,174 37,264
Professional and administrative expenses
- affiliated 50,491 47,950
Depreciation and amortization 479,481 497,508
----------- -----------
2,266,292 2,276,251
----------- -----------
Net income (loss) $ 111,884 $ (128,229)
=========== ===========
Net income (loss) allocated to the limited
partners $ 110,765 $ (126,947)
=========== ===========
Net income (loss) per limited partnership
unit $ 2.34 $ (2.68)
=========== ===========
Weighted average number of limited
partnership units 47,255 47,435
=========== ===========
</TABLE>
- 4 -
<PAGE>
<TABLE>
NTS-PROPERTIES VI,
A Maryland Limited Partnership
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended
March 31,
---------
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 111,884 $ (128,229)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Accrued interest on investment securities 9,116 --
Depreciation and amortization 479,481 497,508
Changes in assets and liabilities:
Cash and equivalents - restricted (190,479) (180,085)
Accounts receivable (73,098) 222,557
Other assets (3,505) (30,230)
Accounts payable 16,798 58,947
Security deposits (2,558) (18,444)
Other liabilities 188,353 189,061
----------- -----------
Net cash provided by operating activities 535,992 611,085
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Net additions to land, buildings and amenities (73,918) (4,406)
Purchase of investment securities (935,192) --
Maturity of investment securities 1,136,480 --
----------- -----------
Net cash provided by (used in) investing activities 127,370 (4,406)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgages payable (60,555) (55,710)
Cash distributions (239,571) (239,571)
Repurchase of limited partnership units (386,000) --
Cash and equivalents - restricted (14,000) --
----------- -----------
Net cash used in financing activities (700,126) (295,281)
----------- -----------
Net increase (decrease) in cash and equivalents (36,764) 311,398
CASH AND EQUIVALENTS, beginning of period 867,902 1,617,604
----------- -----------
CASH AND EQUIVALENTS, end of period $ 831,138 $ 1,929,002
=========== ===========
Interest paid on a cash basis $ 588,235 $ 593,583
=========== ===========
</TABLE>
- 5 -
<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 1995 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 ended March 31, 1996 and 1995.
1. Cash and Equivalents - Restricted
---------------------------------
Cash and equivalents - restricted represents funds received for residential
security deposits, funds which have been escrowed with mortgage companies
for property taxes and insurance in accordance with the loan agreements and
funds reserved by the Partnership for the repurchase of limited partnership
Units.
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. During 1995 and 1996, the Partnership sold no investment
securities. The following provides details regarding the investments held
at March 31, 1996:
Amortized Maturity Value At
Type Cost Date Maturity
---- ---- ---- --------
Certificate of Deposit $ 272,784 05/02/96 $ 273,951
Certificate of Deposit 301,594 06/03/96 304,044
Certificate of Deposit 165,869 07/03/96 167,841
U.S. Treasury Bill 200,705 08/01/96 204,000
-------- --------
$ 940,952 $ 949,836
======== ========
3. Mortgages Payable
-----------------
Mortgages payable consist of the following:
March 31, December 31,
1996 1995
---- ----
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 8,606,794 8,631,951
Mortgage payable with an insurance
company bearing interest at 8.375%,
due October 5, 2002, secured by
certain land, buildings and amenities 4,037,342 4,050,879
(continued next page)
- 6 -
<PAGE>
3. Mortgages Payable - Continued
-----------------------------
March 31, December 31,
1996 1995
---- ----
Mortgage payable with an insurance
company bearing interest at 8.375%,
due October 5, 2002, secured by
certain land, buildings and amenities $ 961,272 $ 964,495
Mortgage payable with an insurance
company bearing interest at 7.25%, due
January 5, 2003, secured by certain
land, buildings and amenities 2,872,249 2,883,431
Mortgage payable to an insurance
company, bearing interest at 7.25%,
due January 5, 2003, secured by
certain land, buildings and amenities 1,914,832 1,922,288
---------- ----------
$27,592,489 $27,653,044
========== ==========
Based on the borrowing rates currently available to the Partnership for
mortgages with similar terms and average maturities, the fair value of
long-term debt is approximately $33,300,000.
4. New Accounting Pronouncement
----------------------------
In March 1995, the Financial Accounting Standards Board issued Statement
No. 121 (the "Statement") on accounting for the impairment of long-lived
assets, certain identifiable intangibles, and goodwill related to assets to
be held and used. The Statement also establishes accounting standards for
long-lived assets and certain identifiable intangibles to be disposed of.
The Partnership adopted the Statement as of January 1, 1996 as required. No
adjustments were required.
5. Related Party Transactions
--------------------------
Pursuant to the partnership agreement, property management fees of $115,787
and $106,384 for the three months ended March 31, 1996 and 1995,
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 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 $561 for the three months ended March 31, 1995
as a repair and maintenance fee. The Partnership has expensed as an
operating expense - affiliated $561 as a repair and maintenance fee during
the three months ended March 31, 1995. There was no similar expense during
the three months ended March 31, 1996. The Partnership was also charged the
following amounts from NTS Development Company for the three months ended
March 31, 1996 and 1995.
- 7 -
<PAGE>
5. Related Party Transactions - Continued
--------------------------------------
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:
1996 1995
---------- ----------
Administrative $ 64,926 $ 61,922
Property manager 214,868 198,908
Leasing agents 69,118 54,580
Other 218 2,828
--------- ---------
$ 349,130 $ 318,238
========= =========
6. Reclassification of 1995 Financial Statements
---------------------------------------------
Certain reclassifications have been made to the March 31, 1995 financial
statements to conform with the March 31, 1996 classifications. These
classifications have no effect on previously reported operations.
7. Interest Repurchase Reserve
---------------------------
As of December 31, 1995, the Partnership had established an Interest
Repurchase Reserve in the amount of $474,350 pursuant to Section 16.4 of
the Partnership's Amended and Restated Agreement of Limited Partnership.
With these funds, the Partnership will be able to repurchase up to 1,897
Units at a price of $250 per Unit. As of March 31, 1996, the Partnership
had repurchased a total of 1,544 Units. Repurchased Units are retired by
the Partnership, thus increasing the share of ownership of each remaining
investor. The Interest Repurchase Reserve was funded from cash reserves.
- 8 -
<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 March 31 were as
follows:
1996 1995
-------- ------
Wholly-Owned Properties
- -----------------------
Sabal Park Apartments 93% 89%
Park Place Apartments Phase I 93% 92%
Willow Lake Apartments 94% 88%
Properties Owned in Joint Venture
with NTS- Properties IV (Ownership % at
March 31, 1996)
- ---------------------------------------
Golf Brook Apartments (96%) 92% 94%
Plainview Point III Office Center (95%) 98% 48%
Rental and other income generated by the Partnership's properties for the three
months ended March 31, 1996 and 1995 was as follows:
1996 1995
--------- ---------
Wholly-Owned Properties
- -----------------------
Sabal Park Apartments $ 441,415 $ 409,761
Park Place Apartments Phase I $ 432,992 $ 416,692
Willow Lake Apartments $ 611,913 $ 540,148
Properties Owned in Joint Venture
with NTS- Properties IV (Ownership %
at March 31, 1996)
- ------------------------------------
Golf Brook Apartments (96%) $ 672,205 $ 656,862
Plainview Point III Office Center (95%) $ 196,905 $ 109,862
Revenues shown in the table above for properties owned through a joint venture
represent only the Partnership's percentage interest in those revenues.
- 9 -
<PAGE>
Results of Operations - Continued
- ---------------------------------
Sabal Park Apartments' occupancy increased from 89% at March 31, 1995 to 93% at
March 31, 1996. Average occupancy for the three month period ended March 31
increased from 90% in 1995 to 93% in 1996. Occupancy at residential properties
fluctuate on a continuous basis. Period-ending occupancy percentages represent
occupancy only on a specific date; therefore, it is more meaningful to consider
average occupancy percentages which are more representative of the entire
period's results. Rental and other income at Sabal Park Apartments increased for
the three months ended March 31, 1996 as compared to the same period in 1995 as
a result of the increase in average occupancy, increased rental rates and
increased fees collected upon early lease termination.
Park Place Apartments Phase I had a 1% increase in occupancy from March 31, 1995
to March 31, 1996. Average occupancy for the three month period ended March 31
decreased from 93% in 1995 to 91% in 1996. Rental and other income at Park Place
Apartments Phase I increased for the three months ended March 31, 1996 as
compared to the same period in 1995 as a result of increased rental rates and
increased income from fully furnished units. Fully furnished units are
apartments which rent at an additional premium above base rent. Therefore, it is
possible for average occupancy to decrease and revenues to increase when the
number of fully furnished units occupied has increased. The increases in rental
and other income at Park Place Apartments Phase I are partially offset by the
decrease in average occupancy.
Willow Lake Apartments' occupancy increased from 88% at March 31, 1995 to 94% at
March 31, 1996. Average occupancy for the three month period ended March 31
increased from 89% in 1995 to 96% in 1996. Rental and other income increased for
the three months ended March 31, 1996 as compared to the same period in 1995 as
a result of the increase in average occupancy, increased rental rates and
increased income from fully furnished units.
Golf Brook Apartments' occupancy decreased from 94% at March 31, 1995 to 92% at
March 31, 1996. Average occupancy for the three month period ended March 31 was
94% in 1995 and 1996. Rental and other income at Golf Brook Apartments increased
for the three months ended March 31, 1996 as compared to the same period in 1995
as a result of increased rental rates and increased fees collected for short
term leases and for early lease terminations.
The 50% increase in occupancy at Plainview Point III Office Center from March
31, 1995 to March 31, 1996 is primarily the result of two new leases totalling
27,070 square feet. The new leases consist of a 10,343 square foot 63-month
lease (took occupancy September 1, 1995) and a 16,727 square foot five-year
lease (took occupancy December 27, 1995). The increase in occupancy can also be
attributed to an expansion by a current tenant of its existing space by
approximately 4,400 square feet. Average occupancy for the three months ended
March 31 increased from 54% in 1995 to 96% in 1996. Rental and other income
increased at Plainview Point III Office Center for the three months ended March
31, 1996 as compared to the same period in 1995 as a result of the increase in
average occupancy.
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.
Interest and other income includes income from investments made by the
Partnership with cash reserves. The increase in interest income for the three
months ended March 31, 1996 as compared to the same period in 1995 is a result
of increased cash reserves being available for investment.
- 10 -
<PAGE>
Results of Operations - Continued
- ---------------------------------
Operating expenses decreased for the three months ended March 31, 1996 as
compared to the same period in 1995 primarily as a result of decreased
landscaping costs at Golf Brook and Sabal Park Apartments and decreased repair
and maintenance costs and exterior wood replacement costs at Sabal Park
Apartments. These decreases in operating expenses are partially offset by
increased costs associated with fully furnished units at Willow Lake Apartments
and Park Place Apartments Phase I and increased carpet and vinyl replacement
costs at Park Place Apartments Phase I. Operating expenses remained fairly
constant at Plainview Point III Office Center for the three months ended March
31, 1996 as compared to the same period in 1995.
The change in operating expenses - affiliated for the three months ended March
31, 1996 as compared to the same period in 1995 was not significant. Operating
expenses - affiliated are expenses incurred for services performed by employees
of NTS Development Company, an affiliate of the General Partner of the
Partnership.
Interest expense remained fairly constant for the three months ended March 31,
1996 as compared to the same period in 1995.
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.
Real estate taxes, professional and administrative expenses and professional and
administrative expenses - affiliated have remained fairly constant for the three
months ended March 31, 1996 as compared to the same period in 1995. Professional
and administrative expenses - affiliated are expenses incurred for services
performed by employees of NTS Development Company, an affiliate of the General
Partner of the Partnership.
Depreciation and amortization decreased for the three months ended March 31,
1996 as compared to the same period in 1995 due to a portion of the assets with
shorter lives at the Partnership's residential properties having become fully
depreciated. Depreciation at Plainview Point III Office Center remained fairly
constant for the three months ended March 31, 1996 as compared to the same
period in 1995. Depreciation is computed using the straight-line method over the
useful lives of the assets which are 5 - 30 years for land improvements, 30
years for buildings, 5 - 30 years for building and improvements and 5 - 30 years
for amenities. The aggregate cost of the Partnership's properties for Federal
tax purposes is approximately $59,300,000.
Liquidity and Capital Resources
- -------------------------------
Cash provided by operations was $535,992 and $611,085 for the three months ended
March 31, 1996 and 1995, respectively. These funds in conjunction with cash on
hand were used to make a 2% (annualized) cash distribution of $231,773 for the
three months ended March 31, 1996 and a 2% (annualized) cash distribution of
$239,571 for the three months ended March 31, 1995. 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. Cash reserves (which are unrestricted cash and equivalents and investment
securities as shown on the Partnership's balance sheet as of March 31) were
$1,772,090 and $1,929,002 at March 31, 1996 and 1995, respectively.
- 11 -
<PAGE>
Liquidity and Capital Resources - Continued
- -------------------------------------------
As of March 31, 1996, the Partnership 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 March 31, 1996, the Partnership had a mortgage payable to an insurance
company in the amount of $8,606,794. 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 March 31, 1996, the Partnership had two mortgage loans each with an
insurance company in the amount of $4,037,342 and $961,272. 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 March 31, 1996, the Partnership also had two mortgage loans each with an
insurance company in the amount of $2,872,249 and $1,914,832. 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).
As previously discussed in the Partnership's Form 10-K for the year ended
December 31, 1995, the General Partner of the Partnership was exploring the
possibility of refinancing the current mortgages payable encumbering the
Partnership's properties. As a result of an increase in current interest rates,
the Partnership has suspended inquiries into alternative financings.
As of December 31, 1995, the Partnership had established an Interest Repurchase
Reserve in the amount of $474,350 pursuant to Section 16.4 of the Partnership's
Amended and Restated Agreement of Limited Partnership. With these funds, the
Partnership will be able to repurchase up to 1,897 Units at a price of $250 per
Unit. As of March 31, 1996, the Partnership had repurchased a total of 1,544
Units. Repurchased Units are retired by the Partnership, thus increasing the
share of ownership of each remaining investor. The Interest Repurchase Reserve
was funded from cash reserves. The Partnership is currently contemplating an
additional funding to its Interest Repurchase Reserve in the near term.
The majority of the Partnership's cash flow is derived from operating
activities. The decrease in accounts receivable during 1995 represents a
settlement received from the insurance company of the manufacturer of the pipe
fittings which were used in the construction of Willow Lake Apartments. 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 the 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 cash reserves. 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,
- 12 -
<PAGE>
Liquidity and Capital Resources - Continued
- -------------------------------------------
principal payments on mortgages payable and repurchases of limited partnership
Units. Cash flows used in financing activities also include cash which has been
reserved by the Partnership for the repurchase of limited partnership Units. The
Partnership does not expect any material changes in the mix and relative cost of
capital resources from those in 1995.
The table below presents that portion of the distributions that represent a
return of capital on a Generally Accepted Accounting Principle basis for the
three months ended March 31, 1996 and 1995. These distributions were funded by
cash flow derived from operating activities.
Net Income Cash
(Loss) Distributions Return of
Allocated Declared Capital
--------- -------- -------
Limited Partners:
1996 $ 110,765 $ 229,455 $ 118,690
1995 (126,947) 237,175 237,175
General Partner:
1996 $ 1,119 $ 2,318 $ 1,199
1995 (1,282) 2,396 2,396
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 agent's 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 development, in Lexington, Kentucky which is zoned for 163 apartment
units (Park Place Apartments Phase III). Included in the cost of approximately
$1,740,000 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. At this time, no final decision has been made.
- 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
From 8-K, dated February 1, 1996, was filed to report in Item 5
the fact that the Partnership has established an Interest
Repurchase Reserve pursuant to Section 16.4 of the Partnership's
Amended and Restated Agreement of Limited Partnership.
- 14 -
<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: May 14, 1996
- 15 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AS OF MARCH 31, 1996 AND FROM THE STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,337,267
<SECURITIES> 940,952
<RECEIVABLES> 231,527
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 41,751,585
<DEPRECIATION> 0<F2>
<TOTAL-ASSETS> 46,371,684
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 27,592,489
0
0
<COMMON> 0
<OTHER-SE> 17,782,742
<TOTAL-LIABILITY-AND-EQUITY> 46,371,684
<SALES> 2,346,366
<TOTAL-REVENUES> 2,378,176
<CGS> 0
<TOTAL-COSTS> 1,591,814
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 587,813
<INCOME-PRETAX> 111,884
<INCOME-TAX> 0
<INCOME-CONTINUING> 111,884
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 111,884
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AS OF MARCH 31, 1996 AND FROM THE STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<F2>THIS INFORMATION IS NOT DISCLOSED IN THE PARTNERSHIP'S FORM 10-Q FILING.
</FN>
</TABLE>
