UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
COMMISSION FILE NUMBER 0-16765
GRIFFIN REAL ESTATE FUND-VI, A LIMITED PARTNERSHIP
MINNESOTA 41-1545501
750 NORTHLAND PLAZA
3800 WEST 80TH STREET, MINNEAPOLIS, MINNESOTA 55431
REGISTRANT'S TELEPHONE NUMBER (612) 896-3800
WATS NUMBER 800-328-3788
Indicate by check mark whether the registrant (1) has filed reports to be filed
by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to filing requirements for the
past 90 days.
Yes _x_ No ___
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-Q
or any amendment to this Form 10-Q. [ ]
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
INDEX
PART 1. Financial Information
Condensed Balance Sheets
September 30, 1995 and December 31, 1994.................... 1
Condensed Statements of Operations
for the three months and the nine months ended
September 30, 1995 and 1994................................. 2
Condensed Statements of Cash Flows
for the nine months ended
September 30, 1995 and 1994................................. 3
Condensed Statements of Changes
in Partners' Equity for the
nine months ended September 30, 1995........................ 4
Notes to Financial Statements................................. 5
Management's Discussion and Analysis of
Financial Conditions and Results
of Operations............................................... 6-7
PART II. Other Information............................................. 8
SIGNATURES.............................................................. 9
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED BALANCE SHEETS
(unaudited)
September 30, December 31,
1995 1994
ASSETS
Cash and cash equivalents $ 171,978 $ 119,572
Receivables and other assets 109,378 118,021
Total 281,356 237,593
PROPERTY:
Land 1,085,776 1,085,776
Buildings and improvements 6,420,443 6,367,650
Furniture and equipment 242,362 242,362
Less valuation allowance (545,000) (545,000)
Total 7,203,581 7,150,788
Less accumulated depreciation 1,863,567 1,699,341
Property - net 5,340,014 5,451,447
TOTAL ASSETS $ 5,621,370 $ 5,689,040
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 60,321 $ 84,198
Security deposits 50,760 47,845
Mortgage notes payable 4,185,974 4,227,965
Total liabilities 4,297,055 4,360,008
PARTNERS' EQUITY:
General Partner (100,453) (100,406)
Limited Partners 1,424,768 1,429,438
Total partners' equity 1,324,315 1,329,032
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 5,621,370 $ 5,689,040
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
1995 1994 1995 1994
REVENUES
Rental income $341,465 $330,326 $1,008,083 $ 953,702
Interest income 665 841 2,171 2,459
Other income 6,406 7,381 16,885 19,861
Total revenues 348,536 338,548 1,027,139 976,022
OPERATING EXPENSES
Operating expenses 206,408 248,544 566,962 664,379
Interest expense 100,335 102,871 299,299 313,047
Depreciation and
amortization 55,196 58,634 165,595 175,906
Total operating expenses 361,939 410,049 1,031,856 1,153,332
NET LOSS 13,403 71,501 4,717 177,310
NET LOSS ALLOCATED
TO GENERAL PARTNER 134 715 47 1,773
NET LOSS ALLOCATED
TO LIMITED PARTNERS $ 13,269 $ 70,786 $ 4,670 $ 175,537
NET LOSS PER LIMITED
PARTNERSHIP UNIT $ .70 $ 3.72 $ .25 $ 9.21
(weighted average basis)
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Nine Months
Ended September 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (4,717) $(177,310)
Adjustments to reconcile net loss
to net cash provided by operating
activities:
Depreciation and amortization 165,595 175,906
Decrease in other assets-net 7,274 37,280
Increase (decrease) in accounts payable
and accrued liabilities (23,877) 8,266
Increase (decrease) in security deposits 2,915 (4,723)
Net cash provided by operating activities 147,190 39,419
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (52,793) --
Net cash used by investing activities (52,793) --
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in mortgage payable (41,991) (42,443)
Net cash used by financing activities (41,991) (42,443)
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 52,406 (3,024)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 119,572 151,655
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 171,978 $ 148,631
CASH PAID DURING THE PERIOD FOR INTEREST $ 299,299 $ 313,047
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1995 $(100,406) $ 1,429,438 $ 1,329,032
NET LOSS (47) (4,670) (4,717)
PARTNERS' EQUITY (DEFICIT)
SEPTEMBER 30, 1995 $(100,453) $ 1,424,768 $ 1,324,315
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
(unaudited)
1. Griffin Real Estate Fund-VI, A Limited Partnership (the Partnership) was
formed by Griffin Equity Partners, A Minnesota Partnership and Guardian
Investment Corporation, a Minnesota corporation on March 19, 1986 under the
laws of the State of Minnesota. The limited partnership offering terminated
on March 18, 1988 at which time 19,053 units ($9,526,500) had been sold.
In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly Griffin Real
Estate FundVI, A Limited Partnership's financial position as of September
30, 1995 and December 31, 1994 and the results of its operations for the
three months and nine months ended September 30, 1995 and 1994 and its cash
flows for the nine months ended September 30, 1995 and 1994.
The accounting policies followed by the Partnership are set forth in Note 1
to the Partnership financial statements in the 1994 Griffin Real Estate
Fund-VI, A Limited Partnership Form 10K.
2. RELATED PARTY TRANSACTIONS
The partners of Griffin Equity Partners and the shareholders, of Guardian
Investment Corporation, the general partners of the Partnership, are also
owners, directors, and officers of the Griffin Companies, a Minnesota
corporation. The following is a summary of fees incurred for the nine
months ended September 30, 1995 and 1994 relating to the Griffin Companies
and its affiliates:
1995 1994
Management fee $ 52,012 $ 55,351
Supervisory fee $ 14,821 $ 5,229
3. TAXABLE LOSS
The loss shown on the statement of operations for the nine months ended
September 30, 1995 and 1994 is the same as the taxable loss for each
period, respectively.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1995, the Partnership had cash and cash equivalents of $171,978
which will be used for working capital requirements of the Partnership and its
properties. It is anticipated that the Partnership will be able to meet current
obligations and commitments from cash on hand and from cash generated from
operations during 1995.
Distributions to partners were not made during the first nine months of 1995.
Future cash distributions will depend on future property operations.
RESULTS OF OPERATIONS
The General Partner, after reasonable inquiry, is not aware of any material
factors relating to any of the Partnership's properties or the operations of the
Partnership that would cause the financial information of the Partnership not to
be indicative of future operating results or of future financial conditions.
Net rental income was $1,008,083 and $953,702 for the first three quarters 1995
and 1994 respectively. This is an increase in net rental income of $54,381.
Rents have been adjusted with an increase in rates at Carriage House of
approximately 2% and an increase in rental rates for new leases at the
industrial properties of approximately 8%. Generally, operating expenses
declined from the first three quarters of 1994 from a level of $664,379 to
$566,962 in the first three quarters of 1995. This is a decrease of $97,417
which is due largely to lower repairs and maintenance expenses. The combined
increase in revenue and decrease in expenses resulted in an overall increase of
net income of $172,593 from the first three quarters of 1994 to the first three
quarters of 1995. Also, despite spending $52,793 on capital improvements to the
properties, $52,406 of cash was provided during the first three quarters of 1995
as compared to $3,024 of cash used during the first three quarters of 1994.
The Partnership has begun final liquidation of the Partnership assets. Carriage
House Apartments, Bass Lake, and Industry Park properties have all been listed
for sale.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
1994 1995
at at
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
1. Carriage House Apts.
Jacksonville, FL 87% 90% 93% 86% 90% 88% 96%
2. Bass Lake Road
New Hope, MN 95% 95% 93% 89% 100% 100% 83%
3. Industry Park
New Hope, MN 98% 96% 96% 91% 85% 85% 85%
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
To the best of our knowledge no legal proceedings exist against the
Partnership.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial data schedule - for SEC use only.
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for
which this report is filed.
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.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
Date: November 15, 1995 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: November 15, 1995 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 171,978
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 281,356
<PP&E> 7,203,581
<DEPRECIATION> 1,863,567
<TOTAL-ASSETS> 5,621,370
<CURRENT-LIABILITIES> 111,081
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<OTHER-SE> 1,324,315<F1>
<TOTAL-LIABILITY-AND-EQUITY> 5,621,370
<SALES> 0
<TOTAL-REVENUES> 1,024,968
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 732,557
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 297,128
<INCOME-PRETAX> 4,717
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<INCOME-CONTINUING> 4,717
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<F1>This entity is a limited partnership. The Other Stockholders Equity line
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<F2>The EPS-Primary line represents net income (loss) per limited partnership
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