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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[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 0-16857
Brauvin Income Properties L.P. 6
(Exact name of small business issuer as specified
in its charter)
Delaware 36-1276801
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act
during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been
subject to such filing requirements
for the past 90 days. Yes X No .
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INDEX
Page
PART I Financial Information
Item 1. Financial Statements . . . . . . . . . . . . . . . . . . . . .3
Balance Sheet at March 31, 1996. . . . . . . . . . . . . . . .4
Statements of Operations for the three months
ended March 31, 1996 and 1995. . . . . . . . . . . . . . . . .5
Statements of Cash Flows for the three months
ended March 31, 1996 and 1995. . . . . . . . . . . . . . . . .6
Notes to Financial Statements. . . . . . . . . . . . . . . . .7
Item 2. Management's Discussion and Analysis or Plan
of Operations. . . . . . . . . . . . . . . . . . . . . . . . .9
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . 11
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . . 11
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . . 11
Item 4. Submissions of Matters to a Vote of Security
Holders. . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 11
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
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PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
The following Balance Sheet as of March 31, 1996, Statements of
Operations for the three months ended March 31, 1996 and 1995 and
Statements of Cash Flows for the three months ended March 31, 1996
and 1995 for Brauvin Income Properties L.P. 6 (the "Partnership")
are unaudited but reflect, in the opinion of the management, all
adjustments necessary to present fairly the information required.
All such adjustments are of a normal recurring nature.
These financial statements should be read in conjunction with the
financial statements and notes thereto included in the
Partnership's 1995 Annual Report on Form 10-K.
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BALANCE SHEET
(UNAUDITED)
March 31,
1996
ASSETS
Cash and cash equivalents $ 588,121
Tenant receivables (net of
allowance of $17,615) 220,468
Escrow deposits 340,455
Other assets 186,765
1,335,809
Investment in real estate, at cost:
Land 2,756,651
Buildings 10,627,535
13,384,186
Less: accumulated depreciation (2,795,196)
Total investment in real estate, net 10,588,990
Total Assets $11,924,799
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable and accrued expenses $ 121,170
Security deposits 5,583
Mortgages payable 8,926,962
Total Liabilities 9,053,715
Partners' Capital
General Partners 7,714
Limited Partners (7,842.5 limited partnership
units issued and outstanding) 2,863,370
Total Partners' Capital 2,871,084
Total Liabilities and Partners' Capital $11,924,799
See notes to financial statements (unaudited).
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STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 1996 and 1995
(UNAUDITED)
1996 1995
INCOME
Rental $452,419 $456,434
Interest 7,757 5,777
Other, primarily tenant expense
reimbursements 104,347 81,147
Total income 564,523 543,358
EXPENSES
Interest 217,794 262,955
Depreciation 93,711 93,769
Real estate taxes 33,531 33,300
Repairs and maintenance 10,146 7,940
Operating 105,913 74,051
General and administrative 66,904 60,100
Total expenses 527,999 532,115
Equity in net loss from
affiliated joint venture -- (2,638)
Net Income $ 36,524 $ 8,605
Net Income Per Limited Partnership
Interest (7,842.5 Units) $ 4.61 $ 1.09
See notes to financial statements (unaudited).
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STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 1996 and 1995
(UNAUDITED)
1996 1995
Cash Flows From Operating Activities:
Net income $ 36,524 $ 8,605
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity in net loss from
affiliated joint venture -- 2,638
Provision for doubtful accounts 9,315 450
Depreciation 93,711 93,769
Normalized rental revenue 2,538 2,537
Changes in operating assets and liabilities:
Decrease in tenant receivables, net 74,516 115,279
Decrease (increase) in escrow deposits 77,773 (9,886)
Decrease in due from affiliates 730 2,756
Decrease (increase) in other assets 20,341 (14,377)
(Decrease) increase in accounts payable
and accrued expenses (149,936) 76,126
Net cash provided by operating activities 165,512 277,897
Cash Flows From Investing Activities:
Capital expenditures (4,027) --
Cash used in investing activities (4,027) --
Cash Flows From Financing Activities:
Repayment of mortgages (35,672) (32,590)
Cash distributions to Limited Partners (99,171) (39,536)
Cash used in financing activities (134,843) (72,126)
Net increase in cash and cash equivalents 26,642 205,771
Cash and cash equivalents
at beginning of period 561,479 445,771
Cash and cash equivalents
at end of period $588,121 $651,542
See notes to financial statements (unaudited).
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NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(1) BASIS OF PRESENTATION
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-QSB and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating
results for the three month period ended March 31, 1996 are not
necessarily indicative of the results that may be expected for the
year ended December 31, 1996. For further information, refer to
the financial statements and footnotes thereto included in the
Annual Report on Form 10-K for the year ended December 31, 1995.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reclassifications
Certain amounts in the 1995 financial statements have been
reclassified to conform to the 1996 presentation. This has not
affected the previously reported results of operations.
(3) TRANSACTIONS WITH AFFILIATES
Fees and other expenses paid to the General Partners or their
affiliates for the three months ended March 31, 1996 and 1995, were
as follows:
1996 1995
Management fees $37,829 $39,714
Reimbursable office expenses 20,700 20,760
Legal fees 310 2,079
The Partnership believes the amounts paid to affiliates are
representative of amounts which would have been paid to independent
parties for similar services. The Partnership had made all
payments to affiliates, except for $1,511 and $2,297 for legal
services, as of March 31, 1996 and 1995, respectively.
(4) SUBSEQUENT EVENTS
A cash distribution for the first quarter ending March 31,
1996, will be paid to Limited Partners on May 15, 1996, in the
aggregate amount of $102,358.
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ITEM 2. Management's Discussion and Analysis or Plan of
Operations.
Liquidity and Capital Resources
The Partnership intends to satisfy its short-term liquidity
needs through cash flow from the properties. Long-term liquidity
needs are expected to be satisfied through modification of the
mortgages at more favorable interest rates.
The occupancy level at Delchamps at March 31, 1996, December
31, 1995 and March 31, 1995 was 100%. Delchamps operated at a
positive cash flow for the three months ended March 31, 1996. The
Delchamps mortgage loan matures on December 1, 1996. It is the
General Partners' intention to refinance this loan when it matures
but there is no assurance that the General Partners will be
successful in their refinancing efforts in which case the
Partnership would sustain a loss upon foreclosure.
Shoppes operated at a positive cash flow for the three months
ended March 31, 1996. The occupancy level at Shoppes at March 31,
1996 and December 31, 1995 was 97% compared to 100% at March 31,
1995.
Ponderosa operated at a positive cash flow for the three
months ended March 31, 1996.
A distribution of Operating Cash Flow for the first quarter of
1996 will be made to the Limited Partners on May 15, 1996 in the
amount of $102,358. The Preferential Distribution Deficiency will
equal $3,598,039 after this next distribution, a $107,234 increase
over the December 31, 1995 balance of $3,490,805.
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The General Partners of the Partnership expect to distribute
proceeds from operations, if any, and from the sale of real estate,
to Limited Partners in a manner that is consistent with the
investment objectives of the Partnership. Management of the
Partnership believes that cash needs may arise from time to time
which will have the effect of reducing distributions to Limited
Partners to amounts less than would be available from refinancings
or sale proceeds. These cash needs include, among other things,
maintenance of working capital reserves in compliance with the
partnership agreement as well as payments for major repairs, tenant
improvements and leasing commissions in support of real estate
operations.
Results of Operations - Three Months Ended March 31, 1996 and 1995
(Amounts rounded to 000's)
The Partnership generated net income of $37,000 for the three
months ended March 31, 1996 as compared to net income of $9,000 for
the same three month period in 1995. The $28,000 increase in net
income resulted primarily from a $21,000 increase in total income,
a $4,000 decrease in total expenses and a $3,000 decrease in the
share of the loss of the Annex, which foreclosed on May 15, 1995.
Total income for the three months ended March 31, 1996 was
$564,000 as compared to $543,000 for the same three month period in
1995, an increase of $21,000. The $21,000 increase resulted
primarily from a $24,000 increase in tenant expense reimbursements
at Delchamps for $16,000 and Shoppes for $8,000. This total
increase of $24,000 was offset by a decrease of $6,000 at
Ponderosa, relating to percentage rent.
For the three months ended March 31, 1996 total expenses were
$528,000 as compared to $532,000 for the same three month period in
1995, a decrease of $4,000. The decrease of $4,000 is due
primarily to a decrease in interest expense of $45,000. The higher
expense for the three months ended March 31, 1995 was a result of
the Shoppes mortgage rate increasing to a default rate (during the
four month extension of the mortgage) effective December 1, 1994.
This decrease is offset by an increase in operating expenses of
$32,000 due primarily to landscaping expenses of $27,000 for
irrigation and site preparation at Shoppes.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings.
None.
ITEM 2. Changes in Securities.
None.
ITEM 3. Defaults Upon Senior Securities.
None.
ITEM 4. Submission Of Matters To a Vote of Security
Holders.
None.
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports On Form 8-K.
Exhibit 27. Financial Data Schedule
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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.
BY: Brauvin 6, Inc.
Corporate General Partner of
Brauvin Income Properties L.P. 6
BY: /s/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of
Directors and President
DATE: May 14, 1996
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer and
Treasurer
DATE: May 14, 1996
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 588,121
<SECURITIES> 0
<RECEIVABLES> 220,468
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 13,384,186 <F1>
<DEPRECIATION> 2,795,196
<TOTAL-ASSETS> 11,924,799
<CURRENT-LIABILITIES> 0
<BONDS> 8,926,962 <F2>
0
0
<COMMON> 2,871,084 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,924,799
<SALES> 0
<TOTAL-REVENUES> 564,523 <F4>
<CGS> 0
<TOTAL-COSTS> 527,999 <F5>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 217,794
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 36,524
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE
<F2> "BONDS" REPRESENTS MORTGAGES PAYABLE
<F3> "COMMON" REPRESENTS TOTAL PARTNERS' CAPITAL
<F4> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F5> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
</FN>
</TABLE>
