<PAGE>
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 June 30, 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
(Issuer'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 .
<PAGE>
INDEX
Page
PART I Financial Information
Item 1. Financial Statements . . . . . . . . . . . . . . . . . . . . .3
Balance Sheet at June 30, 1996 . . . . . . . . . . . . . . . .4
Statements of Operations for the Six Months
Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . . .5
Statements of Operations for the Three Months
Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . . .6
Statements of Cash Flows for the Six Months
Ended June 30, 1996 and 1995 . . . . . . . . . . . . . . . . .7
Notes to Financial Statements. . . . . . . . . . . . . . . . .8
Item 2. Management's Discussion and Analysis or Plan
of Operation . . . . . . . . . . . . . . . . . . . . . . . . 10
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . 13
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . . 13
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . . 13
Item 4. Submission of Matters to a Vote of Security
Holders. . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . . 13
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 13
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
The following Balance Sheet as of June 30, 1996, Statements of
Operations for the six and three months ended June 30, 1996 and
1995 and Statements of Cash Flows for the six months ended June
30, 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.
<PAGE>
BALANCE SHEET
(UNAUDITED)
June 30,
1996
ASSETS
Cash and cash equivalents $ 527,572
Tenant receivables (net of
allowance of $9,200) 206,005
Escrow deposits 392,316
Other assets 203,291
1,329,184
Investment in real estate, at cost:
Land 2,756,651
Buildings 10,637,535
13,394,186
Less: accumulated depreciation (2,886,874)
Total investment in real estate, net 10,507,312
Total Assets $11,836,496
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Accounts payable and accrued expenses $ 149,825
Security deposits 5,583
Mortgages payable 8,890,442
Total Liabilities 9,045,850
Partners' Capital
General Partners 7,933
Limited Partners (7,842.5 limited partnership
units issued and outstanding) 2,782,713
Total Partners' Capital 2,790,646
Total Liabilities and Partners' Capital $11,836,496
See notes to financial statements (unaudited).
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STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1996 and 1995
(UNAUDITED)
1996 1995
INCOME
Rental $ 872,449 $ 908,448
Interest 16,129 27,121
Other, primarily tenant expense
reimbursements 203,514 177,038
Total income 1,092,092 1,112,607
EXPENSES
Interest 434,891 486,804
Depreciation 188,257 185,868
Real estate taxes 67,260 64,800
Repairs and maintenance 15,094 12,514
Operating 194,243 156,854
General and administrative 133,903 154,192
Total expenses 1,033,648 1,061,032
Equity in net income
affiliated joint venture -- 231,115
Net Income $ 58,444 $ 282,690
Net Income Per Limited Partnership
Interest (7,842.5 Units) $7.38 $35.69
See notes to financial statements (unaudited).
<PAGE>
STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 1996 and 1995
(UNAUDITED)
1996 1995
INCOME
Rental $420,030 $452,014
Interest 8,372 21,344
Other, primarily tenant expense
reimbursements 99,167 95,891
Total income 527,569 569,249
EXPENSES
Interest 217,097 223,849
Depreciation 94,546 92,099
Real estate taxes 33,729 31,500
Repairs and maintenance 4,948 4,574
Operating 88,330 82,803
General and administrative 66,999 94,092
Total expenses 505,649 528,917
Equity in net income
affiliated joint venture -- 233,753
Net Income $ 21,920 $274,085
Net Income Per Limited Partnership
Interest (7,842.5 Units) $2.77 $34.60
See notes to financial statements (unaudited).
<PAGE>
STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1996 and 1995
(UNAUDITED)
1996 1995
Cash Flows From Operating Activities:
Net income $ 58,444 $ 282,690
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity in net income from affiliated
joint venture -- (231,115)
Provision for doubtful accounts 9,765 900
Depreciation 188,257 185,868
Normalized rental revenue 5,076 5,075
Changes in operating assets and liabilities:
Decrease in tenant receivables, net 85,991 89,980
Decrease (increase) in escrow deposits 23,044 (166,606)
Decrease in other assets 3,815 43,721
Decrease in due from affiliates 730 17,877
(Decrease) increase in accounts
payable and accrued expenses (121,281) 41,984
Decrease in security deposits -- (1,164)
Net cash provided by operating activities 253,841 269,210
Cash Flows From Investing Activities:
Capital expenditures (14,027) --
Cash used in investing activities (14,027) --
Cash Flows From Financing Activities:
Repayment of mortgages (72,192) (4,727,415)
Proceeds from refinancing -- 6,100,000
Loan fees -- (157,953)
Cash distributions to Limited Partners (201,529) (142,651)
Net cash used in financing activities (273,721) 1,071,981
Net (decrease) increase in cash and
cash equivalents (33,907) 1,341,191
Cash and cash equivalents
at beginning of period 561,479 445,771
Cash and cash equivalents
at end of period $ 527,572 $1,786,962
See notes to financial statements (unaudited).
<PAGE>
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 six month period ended June 30, 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 six months ended June 30, 1996 and 1995, were as
follows:
1996 1995
Management fees $75,977 $75,523
Reimbursable office expenses 41,400 44,165
Legal fees 679 6,816
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 $1,232 and $1,525 for legal
services, as of June 30, 1996 and 1995, respectively.
(4) SUBSEQUENT EVENTS
A cash distribution for the quarter ending June 30, 1996, will
be paid to Limited Partners on August 15, 1996, in the aggregate
amount of $85,297.
<PAGE>
ITEM 2. Management's Discussion and Analysis or Plan of
Operation.
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 June 30, 1996, December
31, 1995 and June 30, 1995 was 100%. Delchamps operated at a
positive cash flow for the six months ended June 30, 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 six months
ended June 30, 1996. The occupancy level at Shoppes at June 30,
1996 and December 31, 1995 was 97% compared to 100% at June 30,
1995.
Ponderosa operated at a positive cash flow for the six months
ended June 30, 1996.
A distribution of Operating Cash Flow for the second quarter
of 1996 will be made to the Limited Partners on August 15, 1996 in
the amount of $85,297. The Preferential Distribution Deficiency
will equal $3,722,334 after this next distribution, a $231,529
increase over the December 31, 1995 balance of $3,490,805.
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 - Six Months Ended June 30, 1996 and 1995
(Amounts rounded to 000's)
The Partnership generated net income of $58,000 for the six
months ended June 30, 1996 as compared to net income of $283,000
for the same six month period in 1995. The $225,000 decrease in
net income resulted primarily from a $21,000 decrease in total
income and a $231,000 decrease in the Partnership's share of the
Annex income due to its foreclosure on May 15, 1995.
Total income for the six months ended June 30, 1996 was
$1,092,000 as compared to $1,113,000 for the same six month period
in 1995, a decrease of $21,000. The $21,000 decrease resulted
primarily from a $36,000 decrease in rental income and a $11,000
decrease in interest income. These decreases were offset by a
$26,000 increase in tenant expense reimbursements. The $36,000
decrease in rental income is mainly attributed to the $32,000
decrease at Shoppes. This decrease was a result of the occupancy
level decreasing from 100% at June 30, 1995 to 97% at June 30,
1996. The $11,000 decrease in interest income was a result of the
decrease in short-term investments. The decrease in short-term
investments was due to the August 1995 distribution to Investors of
the excess funds from the Shoppes refinancing. This decrease was
offset by a $26,000 increase in tenant expense reimbursements.
For the six months ended June 30, 1996 total expenses were
$1,034,000 as compared to $1,061,000 for the same six month period
in 1995, a decrease of $27,000. The decrease of $27,000 is due
primarily to a decrease in interest expense of $52,000. The higher
expense for the six months ended June 30, 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 $37,000
due primarily to an increase of $22,000 for landscaping expenses
relating to irrigation and site preparation at Shoppes.
<PAGE>
Results of Operations - Three Months Ended June 30, 1996 and 1995
(Amounts rounded to 000's)
The Partnership generated net income of $22,000 for the three
months ended June 30, 1996 as compared to net income of $274,000
for the same three month period in 1995. The $252,000 decrease in
net income resulted primarily from a $234,000 decrease in the
Partnership's share of the Annex income due to its foreclosure on
May 15, 1995.
Total income for the three months ended June 30, 1996 was
$528,000 as compared to $569,000 for the same three month period in
1995, a decrease of $41,000. The $41,000 decrease resulted
primarily from a $34,000 decrease in rental income at the Shoppes
relating to the decrease in occupancy of 100% at June 30, 1995 to
97% at June 30, 1996.
For the three months ended June 30, 1996 total expenses were
$506,000 as compared to $529,000 for the same three month period in
1995, a decrease of $23,000. The decrease of $23,000 is due
primarily to a decrease of $27,000 in general and administrative
expenses. This $27,000 decrease in general and administrative
expense was a result of the decrease in costs associated with the
foreclosure of the Annex during the second quarter of 1995.
<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
<PAGE>
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: August 13, 1996
BY: /s/ B. Allen Aynessazian
B. Allen Aynessazian
Chief Financial Officer
and Treasurer
DATE: August 13, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 527,572
<SECURITIES> 0
<RECEIVABLES> 206,005
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 13,394,186 <F1>
<DEPRECIATION> (2,886,874)
<TOTAL-ASSETS> 11,836,496
<CURRENT-LIABILITIES> 0
<BONDS> 8,890,442 <F2>
0
0
<COMMON> 2,790,646 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,836,496
<SALES> 0
<TOTAL-REVENUES> 1,092,092 <F4>
<CGS> 0
<TOTAL-COSTS> 1,033,648 <F5>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 434,891
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 58,444
<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>
