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 MARCH 31, 1996
COMMISSION FILE NUMBER 0-16765
GRIFFIN REAL ESTATE FUND-VI, A LIMITED PARTNERSHIP
MINNESOTA 41-1545501
SUITE 300
510 MARQUETTE AVENUE, 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
March 31, 1996 and December 31, 1995....................... 1
Condensed Statements of Operations
for the three months ended
March 31, 1996 and 1995.................................... 2
Condensed Statements of Cash Flows
for the three months ended
March 31, 1996 and 1995.................................... 3
Condensed Statements of Changes
in Partners' Equity for the
three months ended March 31, 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)
March 31, December 31,
1996 1995
----------- -----------
ASSETS
Cash and cash equivalents $ 182,306 $ 135,745
Receivables and other assets 116,806 123,028
----------- -----------
Total 299,112 258,773
----------- -----------
PROPERTY:
Land 1,085,776 1,085,776
Buildings and improvements 6,443,789 6,443,789
Furniture and equipment 242,362 242,362
Less valuation allowance (470,000) (470,000)
----------- -----------
Total 7,301,927 7,301,927
Less accumulated depreciation 1,974,656 1,919,664
----------- -----------
Property - net 5,327,271 5,382,263
----------- -----------
TOTAL ASSETS $ 5,626,383 $ 5,641,036
=========== ===========
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 58,816 $ 59,174
Security deposit 54,888 51,567
Mortgage notes payable 4,156,609 4,172,438
----------- -----------
Total liabilities 4,270,313 4,283,179
----------- -----------
PARTNERS' EQUITY:
General Partner (100,136) (100,118)
Limited Partners 1,456,206 1,457,975
----------- -----------
Total partners' equity 1,356,070 1,357,857
----------- -----------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 5,626,383 $ 5,641,036
=========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months
Ended March 31,
1996 1995
--------- ---------
REVENUES
Rental income $ 337,571 $ 332,684
Interest income 1,488 527
Other income 6,236 4,932
--------- ---------
Total revenues 345,295 338,143
--------- ---------
OPERATING EXPENSES
Operating expenses 190,310 181,277
Interest expense 98,929 97,426
Depreciation and amortization 57,843 55,199
--------- ---------
Total operating expenses 347,082 333,902
--------- ---------
NET INCOME (LOSS) (1,787) 4,241
NET INCOME (LOSS) ALLOCATED TO
GENERAL PARTNER (18) 42
--------- ---------
NET INCOME (LOSS) ALLOCATED TO
LIMITED PARTNERS $ (1,769) $ 4,199
========= =========
NET INCOME (LOSS) PER LIMITED
PARTNERSHIP UNIT
(weighted average basis) $ (.09) $ .22
========= =========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Three Months
Ended March 31,
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (1,787) $ 4,241
Adjustments to reconcile net loss to net
cash provided (used) by operating activities:
Depreciation and amortization 57,843 55,199
Decrease in other assets-net 3,371 10,776
Decrease in accounts payable
and accrued liabilities (358) (32,317)
Increase (decrease) in security deposits 3,321 (941)
--------- ---------
Net cash provided by
operating activities 62,390 36,958
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment -- (29,646)
--------- ---------
Net cash used by investing activities -- (29,646)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in mortgage payable (15,829) (12,669)
--------- ---------
Net cash used by financing activities (15,829) (12,669)
--------- ---------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 46,561 (5,357)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 135,745 119,572
--------- ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 182,306 $ 114,215
========= =========
CASH PAID DURING THE PERIOD FOR INTEREST $ 98,929 $ 97,426
========= =========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1996
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1996 $ (100,118) $ 1,457,975 $ 1,357,975
NET LOSS (18) (1,769) 1,787)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
MARCH 31, 1996 $ (100,136) $ 1,456,206 $ 1,356,070
=========== =========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 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 Fund-VI, A Limited Partnership's financial position as of
March 31, 1996 and December 31, 1995 and the results of its operations for
the three months ended March 31, 1996 and 1995 and its cash flows for the
three months ended March 31, 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 three
months ended March 31, 1996 and 1995 relating to the Griffin Companies and
its affiliates:
1996 1995
---- ----
Management fees $ 17,895 $ 17,607
Supervisory fees $ 6,531 $ 5,231
3. TAXABLE INCOME (LOSS)
The income (loss) shown on the statement of operations for the three
months ended March 31, 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. The remaining property was also analyzed, with the result being
no allowance considered necessary at 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 March 31, 1996, the Partnership had cash and cash equivalents of $182,306
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 to partners were not made during the first quarter of 1996. Future
cash distributions will depend on future property operations and sales.
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, other than those disclosed below, 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 $337,571 and $332,684 for the first quarter of 1996 and
1995 respectively. This increase in the net rental income of $4,887 is
attributable to the improved occupancy at Industry Park Building, which more
than offset the additional vacancy at Carriage House Apartments. Operating
expenses were $190,310 and $181,277 for the first quarter of 1996 and 1995
respectively. The increase of $9,033 was a result of additional plumbing repairs
at Carriage House Apartments. The excess of total expenses over revenue resulted
in a net loss from operations of $1,787 for the first quarter of 1996, compared
to net income of $4,241 for the first quarter of 1995. However, overall
operations of the Partnership and its properties resulted in a cash flow
increase for the first quarter of 1996 of $46,561 compared to a cash flow loss
of $5,357 in the first quarter of 1995.
The Partnership has begun the final liquidation of all of the Partnership
properties. The sale of Carriage House Apartments is scheduled to close on May
10, 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 $15 per limited partnership unit will be distributed in June to
holders of record on May 31, 1996. Bass Lake and Industry Park Buildings are
currently being marketed. Neither property is currently under any formal sales
contract.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
OCCUPANCY TABLE
Approximate occupancy levels of the Partnership's investment property by
quarter.
<TABLE>
<CAPTION>
1995 1996
--------------------------------- ---------------------------------
at at
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
1. Carriage House Apts.
Jacksonville, FL 90% 88% 96% 91% 85%
2. Bass Lake Road
New Hope, MN 100% 100% 83% 83% 100%
3. Industry Park
New Hope, MN 85% 85% 85% 97% 99%
</TABLE>
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
(b) 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
Date: May 15, 1996 By /s/ Larry D. Fransen
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: May 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 182,306
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 299,112
<PP&E> 7,301,927
<DEPRECIATION> 1,974,656
<TOTAL-ASSETS> 5,626,383
<CURRENT-LIABILITIES> 113,704
<BONDS> 4,156,609
0
0
<COMMON> 0
<OTHER-SE> 1,356,070<F1>
<TOTAL-LIABILITY-AND-EQUITY> 5,626,383
<SALES> 0
<TOTAL-REVENUES> 343,807
<CGS> 0
<TOTAL-COSTS> 248,153
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 97,441
<INCOME-PRETAX> (1,787)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,787)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,787)
<EPS-PRIMARY> (.09)<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 loss per limited partnership unit.
</FN>
</TABLE>
