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, 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
September 30, 1996 and December 31, 1995...................... 1
Condensed Statements of Operations
for the three months and nine months ended
September 30, 1996 and 1995................................... 2
Condensed Statements of Cash Flows
for the nine months ended
September 30, 1996 and 1995................................... 3
Condensed Statements of Changes
in Partners' Equity for the
nine months ended September 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)
September 30, December 31,
1996 1995
----------- -----------
ASSETS
Cash and cash equivalents $ 593,187 $ 135,745
Receivables and other assets 33,095 123,028
----------- -----------
Total 626,282 258,773
----------- -----------
PROPERTY:
Land 338,000 1,085,776
Buildings and improvements 1,644,419 6,443,789
Furniture and equipment -- 242,362
Less valuation allowance (65,000) (470,000)
----------- -----------
Total 1,917,419 7,301,927
Less accumulated depreciation 428,022 1,919,664
----------- -----------
Property - net 1,489,397 5,382,263
----------- -----------
TOTAL ASSETS $ 2,115,679 $ 5,641,036
=========== ===========
LIABILITIES AND PARTNERSHIP EQUITY
LIABILITIES:
Accounts payable and accrued liabilities $ 13,135 $ 59,174
Security deposit 20,228 51,567
Mortgages, contracts for deed 768,790 4,172,438
----------- -----------
Total liabilities 802,153 4,283,179
----------- -----------
PARTNERS' EQUITY:
General Partner (100,561) (100,118)
Limited Partners 1,414,087 1,457,975
----------- -----------
Total partners' equity 1,313,526 1,357,857
----------- -----------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 2,115,679 $ 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 Nine Months
Ended September 30, Ended September 30,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES
Rental income $ 163,507 $ 341,465 $ 744,720 $ 1,008,083
Interest income 2,216 665 7,602 2,171
Other income 9,942 6,406 20,036 16,885
----------- ----------- ----------- -----------
Total revenues 175,665 348,536 772,358 1,027,139
----------- ----------- ----------- -----------
OPERATING EXPENSES
Operating expenses 55,631 206,408 411,321 566,962
Interest expense 70,423 100,335 237,837 299,299
Property valuation
benefit (405,000) -- (405,000) --
Depreciation and
amortization 32,679 55,196 131,390 165,595
----------- ----------- ----------- -----------
Total operating expenses (246,267) 361,939 375,548 1,031,856
----------- ----------- ----------- -----------
NET INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM 421,932 (13,403) 396,810 (4,717)
EXTRAORDINARY ITEM: LOSS
ON SALE OF PROPERTY (94,330) -- (94,723) --
----------- ----------- ----------- -----------
NET INCOME (LOSS) 327,602 (13,403) 302,087 (4,717)
NET INCOME (LOSS) ALLOCATED
TO GENERAL PARTNER 3,276 (134) 3,021 (47)
----------- ----------- ----------- -----------
NET INCOME (LOSS) ALLOCATED
TO LIMITED PARTNERS $ 324,326 $ (13,269) $ 299,066 $ (4,670)
=========== =========== =========== ===========
PER UNIT (weighted average basis):
NET INCOME(LOSS)BEFORE
EXTRAORDINARY ITEM $ 21.93 $ (.70) $ 20.63 $ (.25)
EXTRAORDINARY ITEM (4.90) -- (4.92) --
----------- ----------- ----------- -----------
NET INCOME(LOSS) $ 17.03 $ (.70) $ 15.71 $ (.25)
=========== =========== =========== ===========
See notes to condensed financial statements.
</TABLE>
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
For the Nine Months
Ended September 30,
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 302,087 $ (4,717)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Property valuation benefit (405,000) --
Loss on sale of property 94,723 --
Depreciation and amortization 131,390 165,595
Decrease in other assets-net 76,667 7,274
Decrease in accounts payable
and accrued liabilities (46,039) (23,877)
Increase(decrease) in security deposits (31,339) 2,915
----------- -----------
Net cash provided by
operating activities 122,489 147,190
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment -- (52,793)
Sale of property and equipment 4,085,019 --
----------- -----------
Net cash used by investing activities 4,085,019 (52,793)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Reduction in mortgage payable (3,403,648) (41,991)
Distributions to partners (346,418) --
----------- -----------
Net cash used by financing activities (3,750,066) (41,991)
----------- -----------
INCREASE IN CASH AND CASH EQUIVALENTS 457,442 52,406
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 135,745 119,572
----------- -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 593,187 $ 171,978
=========== ===========
CASH PAID DURING THE PERIOD FOR INTEREST $ 264,921 $ 299,299
=========== ===========
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, 1996
(unaudited)
GENERAL LIMITED TOTAL
PARTNER PARTNERS PARTNERSHIP
------- -------- -----------
PARTNERS' EQUITY (DEFICIT)
JANUARY 1, 1996 $ (100,118) $ 1,457,975 $ 1,357,857
NET INCOME 3,021 299,066 302,087
DISTRIBUTIONS (3,464) (342,954) (346,418)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT)
SEPTEMBER 30, 1996 $ (100,561) $ 1,414,087 $ 1,313,526
=========== =========== ===========
See notes to condensed financial statements.
GRIFFIN REAL ESTATE FUND-VI,
A LIMITED PARTNERSHIP
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 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
September 30, 1996 and December 31, 1995 and the results of its
operations for the three months and nine months ended September 30, 1996
and 1995 and its cash flows for the nine months ended September 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 nine months ended September 30, 1996 and 1995 relating
to the Griffin Companies and its affiliates:
1996 1995
---- ----
Management fees $ 48,014 $ 52,012
Supervisory fees $ 7,884 $ 14,821
3. TAXABLE INCOME (LOSS)
The income (loss) shown on the statement of operations for the nine
months ended September 30, 1996 and 1995 is the same as the taxable
income (loss) for each period, respectively.
4. VALUATION ALLOWANCES
As of December 31, 1995, management had recorded valuation allowances of
$405,000 and $65,000 related to the Bass Lake Building and the Industry
Park Building, respectively. These allowances were the difference
between the net book values of the properties and estimated sales values
(net of sales costs) as of December 31, 1995.
When the Bass Lake Building was sold on September 30, 1996, the
corresponding valuation allowance was reversed and recognized as a
property valuation benefit on the Condensed Statement of Operations.
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, 1996, the Partnership had cash and cash equivalents of $593,187
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. Distributions of $18 per
unit were also made, on October 23, 1996, from the proceeds of the sale of the
Bass Lake Building, which occured during the third quarter. Future cash
distributions will depend on future property operations or dispositions.
RESULTS OF OPERATIONS
The Partnership has begun final liquidation of the Partnership assets. Carriage
House Apartments was sold on May 10, 1996, the Bass Lake building was sold on
September 30, 1996, while the sale of Industry Park is scheduled to close by
December 1, 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 $40 per limited partnership unit will be distributed in
December to holders of record on the closing date. If the sale occurs on
schedule, the Partnership will terminate by the end of the year.
Since Carriage House Apartments was sold during the second quarter, operating
income and expenses for the Partnership as a whole are not easily comparable to
previous periods. For simplicity, the following discussion excludes Carriage
House results.
Before its sale on September 30, 1996, the Bass Lake Building enjoyed 100%
occupancy. Rental income for the third quarter of 1996 was $73,625 which is
comparable to the third quarter 1995 total of $72,221. Total operating expenses
totaled $24,455 for the third quarter 1996, as compared to $36,647 in 1995 which
contained unusually high advertising and repair expenses.
For the Industry Park building, third quarter rental income went from $82,783 in
1995 to $90,255, an increase of $7,472 or 9%. This combined with lower vacancies
and stable expenses to produce a year to date net income of $59,770 as compared
to $20,555 for the first three quarters of 1995. Capital improvements continue
to be minimal as the property is being marketed for sale.
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
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% 99%
* Indicates the Partnership did not own this property at the end of the quarter.
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
(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.
A form 8-K was also filed with required pro forma financial
information on October 8, 1996 regarding the sale of the Bass
Lake Building that took place on September 30, 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: November 15, 1996 By /s/ Larry D. Fransen
-------------------------------
Larry D. Fransen, for the
General Partner, Griffin
Equity Partners
Date: November 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 593,187
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 33,095
<PP&E> 1,917,419
<DEPRECIATION> 428,022
<TOTAL-ASSETS> 2,115,679
<CURRENT-LIABILITIES> 33,363
<BONDS> 768,790
0
0
<COMMON> 0
<OTHER-SE> 1,313,526<F1>
<TOTAL-LIABILITY-AND-EQUITY> 2,115,679
<SALES> 0
<TOTAL-REVENUES> 764,756
<CGS> 0
<TOTAL-COSTS> 137,711
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 230,235
<INCOME-PRETAX> 396,810
<INCOME-TAX> 0
<INCOME-CONTINUING> 396,810
<DISCONTINUED> 0
<EXTRAORDINARY> (94,723)
<CHANGES> 0
<NET-INCOME> 302,087
<EPS-PRIMARY> 15.72<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 per limited partnership unit.
</FN>
</TABLE>
