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 JUNE 30, 1996
COMMISSION FILE NUMBER 0-16765
GRIFFIN REAL ESTATE FUND-VI, A LIMITED PARTNERSHIP
MINNESOTA 41-1545501
510 MARQUETTE AVENUE, SUITE 300
MINNEAPOLIS, MINNESOTA 55402
REGISTRANT'S TELEPHONE NUMBER (612) 338-2828
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
June 30, 1996 and December 31, 1995.......................... 1
Condensed Statements of Operations
for the three months and six months ended
June 30, 1996 and 1995....................................... 2
Condensed Statements of Cash Flows
for the six months ended
June 30, 1996 and 1995....................................... 3
Condensed Statements of Changes
in Partners' Equity for the
six months ended June 30, 1996............................... 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)
June 30, December 31,
1996 1995
---- ----
ASSETS
Cash and cash equivalents $ 194,529 $ 135,745
Receivables and other assets 54,228 123,028
----------- -----------
Total 248,757 258,773
----------- -----------
PROPERTY:
Land 673,000 1,085,776
Buildings and improvements 3,174,487 6,443,789
Furniture and equipment -- 242,362
Less valuation allowance (470,000) (470,000)
----------- -----------
Total 3,377,487 7,301,927
Less accumulated depreciation 800,833 1,919,664
----------- -----------
Property - net 2,576,654 5,382,263
----------- -----------
TOTAL ASSETS $ 2,825,411 $ 5,641,036
=========== ===========
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 19,992 $ 59,174
Security deposit 37,366 51,567
Mortgages, contracts for deed 1,782,129 4,172,438
----------- -----------
Total liabilities 1,839,487 4,283,179
----------- -----------
PARTNERS' EQUITY:
General Partner (103,837) (100,118)
Limited Partners 1,089,761 1,457,975
----------- -----------
Total partners' equity 985,924 1,357,857
----------- -----------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 2,825,411 $ 5,641,036
=========== ===========
See notes to condensed financial statements.
<TABLE>
<CAPTION>
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES
Rental income $ 243,642 $ 333,934 $ 581,213 $ 666,618
Interest income 3,898 979 5,386 1,506
Other income 3,858 5,547 10,094 10,479
--------- --------- --------- ---------
Total revenues 251,398 340,460 596,693 678,603
--------- --------- --------- ---------
OPERATING EXPENSES
Operating expenses 165,380 179,277 355,690 360,554
Interest expense 68,485 101,538 167,414 198,964
Depreciation and
amortization 40,868 55,200 98,711 110,399
--------- --------- --------- ---------
Total operating expenses 274,733 336,015 621,815 669,917
--------- --------- --------- ---------
NET INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM (23,335) 4,445 (25,122) 8,686
EXTRAORDINARY ITEM:
LOSS ON SALE OF PROPERTY (393) -- (393) --
--------- --------- --------- ---------
NET INCOME (LOSS) (23,728) 4,445 (25,515) 8,686
NET INCOME (LOSS) ALLOCATED
TO GENERAL PARTNER (237) 45 (255) 87
--------- --------- --------- ---------
NET INCOME (LOSS) ALLOCATED
TO LIMITED PARTNERS $ (23,491) $ 4,400 $ (25,260) $ 8,599
========= ========= ========= =========
PER UNIT (weighted average basis):
NET INCOME(LOSS)BEFORE
EXTRAORDINARY ITEM $ (1.22) $ .23 $ (1.31) $ .45
EXTRAORDINARY ITEM (.02) -- (.02) --
--------- --------- --------- ---------
NET INCOME(LOSS) $ (1.24) $ .23 $ (1.33) $ .45
========= ========= ========= =========
See notes to condensed financial statements.
</TABLE>
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Six Months
Ended June 30,
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (25,515) $ 8,686
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Loss on sale of property 393 --
Depreciation and amortization 98,711 110,399
Decrease (Increase) in other assets-net 63,096 (8,354)
Decrease in accounts payable
and accrued liabilities (39,182) (38,153)
Decrease in security deposits (14,201) (487)
----------- ----------
Net cash provided by
operating activities 83,302 72,091
----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment -- (42,106)
Sale of property and equipment 2,712,209 --
----------- ----------
Net cash used by investing activities 2,712,209 (42,106)
----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in mortgage payable (2,390,309) (27,062)
Distributions to partners (346,418) --
----------- ----------
Net cash used by financing activities (2,736,727) (27,062)
----------- ----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 58,784 2,923
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 135,745 119,572
----------- ----------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 194,529 $ 122,495
=========== ==========
CASH PAID DURING THE PERIOD FOR INTEREST $ 187,700 $ 198,964
=========== ==========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
------- -------- -----------
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1996 $(100,118) $1,457,975 $1,357,857
NET INCOME (255) (25,260) (25,515)
DISTRIBUTIONS (3,464) (342,954) (346,418)
--------- ---------- ----------
PARTNERS' EQUITY (DEFICIT)
JUNE 30, 1996 $(103,837) $1,089,761 $ 985,924
========== =========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 1996
(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 Fund-VI, A Limited Partnership's financial position as of
June 30, 1996 and December 31, 1995 and the results of its operations for
the three months and six months ended June 30, 1996 and 1995 and its cash
flows for the six months ended June 30, 1996 and 1995.
The accounting policies followed by the Partnership are set forth in Note
1 to the Partnership financial statements in the 1995 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 six
months ended June 30, 1996 and 1995 relating to the Griffin Companies and
its affiliates:
1996 1995
---- ----
Management fees $ 38,397 $ 34,928
Supervisory fees $ 7,423 $ 8,089
3. TAXABLE INCOME (LOSS)
The income (loss) shown on the statement of operations for the six months
ended June 30, 1996 and 1995 is the same as the taxable income (loss) for
each period, respectively.
4. VALUATION ALLOWANCE
As of December 31, 1995, management has recorded a valuation allowance of
$470,000 related to the Bass Lake Building and the Industry Park
Building. This allowance is the difference between the net book value of
the property and an estimated sales value (net of sales costs) as of
December 31, 1995.
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 June 30, 1996, the Partnership had cash and cash equivalents of $194,529
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 1996.
Distributions of $18 per unit were made from the proceeds of the sale of
Carriage House Apartments during the second quarter. Future cash distributions
will depend on future property operations or dispositions.
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.
Since Carriage House Apartments was sold about mid-quarter, operating income and
expenses for the fund as a whole are not easily comparable to previous periods.
For simplicity, the following discussion excludes Carriage House results.
Both the Bass Lake and Industry Park buildings' operating expenses were very
comparable from 1995 and 1996 for both year to date and second quarter. The same
can be said for Bass Lake's gross operating income. Gross operating income for
Industry Park grew by 20% and 16% for the second quarter and year to date
respectively from the same periods in 1995. These results are due to Bass Lake's
100% occupancy during the reporting periods and to Industry Park's continuing
steady improvement in occupancy shown on the table on the following page. For
both properties, capital improvements continue to be minimal.
The Partnership has begun final liquidation of the Partnership assets. Carriage
House Apartments was sold on May 10, 1996 while the sale of Bass Lake is
scheduled to close by October 17, 1996. Although there can be no assurance a
closing will take place, if the closing takes place as scheduled the resulting
estimated sales proceeds of approximately $19 per limited partnership unit will
be distributed in November to holders of record on October 31, 1996. The
Industry Park building is still being marketed and is not currently under any
formal sales contract.
<TABLE>
<CAPTION>
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
1995 1996
at at
------------------------------------ ------------------------------
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
<S> <C> <C> <C> <C> <C> <C>
1.Carriage House Apts.
Jacksonville, FL 90% 88% 96% 91% 85% *
2.Bass Lake Road
New Hope, MN 100% 100% 83% 83% 100% 100%
3.Industry Park
New Hope, MN 85% 85% 85% 97% 99% 99%
* Indicates the Partnership did not own this property at the end of the quarter.
</TABLE>
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
As of June 30, 1996, an individual was pursuing a legal action against
the Partnership for injuries sustained in a fall. The individual is
attempting to recover monetary damages and to receive reimbursement for
medical costs. Any judgement against the Partnership would be covered
by insurance.
Item 6. Exhibits and Reports on Form 8-K
(b) A form 8-K was filed with required pro forma financial
information on May 28, 1996 regarding the sale of Carriage
House Apartments that took place on May 10, 1996.
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
Date: August 15, 1996 By /s/ Larry D. Fransen
------------------------------
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: August 15, 1996 By /s/ Larry D. Fransen
------------------------------
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 194,529
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 54,228
<PP&E> 3,377,487
<DEPRECIATION> 800,833
<TOTAL-ASSETS> 2,825,411
<CURRENT-LIABILITIES> 57,358
<BONDS> 1,782,129
0
0
<COMMON> 0
<OTHER-SE> 985,924<F1>
<TOTAL-LIABILITY-AND-EQUITY> 2,825,411
<SALES> 0
<TOTAL-REVENUES> 591,307
<CGS> 0
<TOTAL-COSTS> 454,401
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 162,028
<INCOME-PRETAX> (25,122)
<INCOME-TAX> 0
<INCOME-CONTINUING> (25,122)
<DISCONTINUED> 0
<EXTRAORDINARY> (393)
<CHANGES> 0
<NET-INCOME> (25,515)
<EPS-PRIMARY> (1.33)<F2>
<EPS-DILUTED> 0
<FN>
<F1>This entity is a limited partnership. The Other Stockholders Equity line
represents total Partnership equity.
<F2>The EPS-Primary line represents net income/loss per limited partnership unit.
</FN>
</TABLE>
