<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 nine months ended September 30, 1998
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
(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.)
30 North LaSalle Street, Chicago, Illinois 60602
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Issuer's telephone number)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on
which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
Limited Partnership Interests
(Title of class)
Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12
months (or for such shorter period that the issuer was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No .
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
INDEX
PART I
Page
Item 1. Consolidated Financial Statements . . . . . . . . . . . . . . .3
Consolidated Balance Sheet at September 30, 1998. . . . . . . .4
Consolidated Statements of Operations for the
nine months ended September 30, 1998 and 1997 . . . . . . . . .5
Consolidated Statements of Operations for the
three months ended September 30, 1998 and 1997. . . . . . . . .6
Consolidated Statements of Cash Flows for the
nine months ended September 30, 1998 and 1997 . . . . . . . . .7
Notes to Consolidated Financial Statements . . . . . . . . . .8
Item 2. Management's Discussion and Analysis or Plan
of Operation. . . . . . . . . . . . . . . . . . . . . . . . . 16
PART II
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . 21
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . 21
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . . 21
Item 4. Submission of Matters to a Vote of Security
Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . 21
Item 6. Exhibits, and Reports on Form 8-K . . . . . . . . . . . . . . 21
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
PART I - FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
The following Consolidated Balance Sheet as of September 30,
1998, Consolidated Statements of Operations for the nine months
ended September 30, 1998 and 1997, Consolidated Statements of
Operations for the three months ended September 30, 1998 and 1997,
and Consolidated Statements of Cash Flows for the nine months ended
September 30, 1998 and 1997 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 consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Partnership's 1997 Annual Report on Form
10-KSB.
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30,
1998
ASSETS
Investment in real estate:
Land $ 2,756,651
Buildings and improvements 10,736,901
13,493,552
Less accumulated depreciation (3,717,951)
Net investment in real estate 9,775,601
Cash and cash equivalents 791,758
Rent receivable (net of
allowances of $34,668) 211,627
Escrow and other deposits 560,207
Other assets 156,516
Total Assets $11,495,709
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Mortgage notes payable (Note 3) $8,744,892
Accounts payable and accrued
expenses 274,675
Due to affiliates 9,469
Tenant security deposits 13,549
Total Liabilities 9,042,585
PARTNERS' CAPITAL:
General Partners 15,512
Limited Partners (7,842.5
limited partnership units
issued and outstanding) 2,437,612
Total Partners' Capital 2,453,124
Total Liabilities and
Partners' Capital $11,495,709
See accompanying notes to consolidated financial statements
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the nine months ended September 30,
(Unaudited)
1998 1997
INCOME
Rental $1,300,682 $1,433,433
Interest 40,062 34,843
Other, primarily tenant
expense reimbursements 330,201 325,935
Total income 1,670,945 1,794,211
EXPENSES
Interest 649,495 656,239
Depreciation 271,865 279,515
Real estate taxes 98,316 99,381
Repairs and maintenance 16,362 20,986
Management fees (Note 4) 111,529 116,335
Other property operating 143,274 132,791
General and administrative 200,462 233,963
Total expenses 1,491,303 1,539,210
Net income $ 179,642 $ 255,001
Net income allocated to the
General Partners $ 1,796 $ 2,550
Net income allocated to the
Limited Partners $ 177,846 $ 252,451
Net income per limited partnership
interest (7,842.5 units) $ 22.68 $ 32.19
See accompanying notes to consolidated financial statements
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended September 30,
(Unaudited)
1998 1997
INCOME
Rental $ 279,099 $475,889
Interest 13,223 12,953
Other, primarily tenant
expense reimbursements 107,541 88,174
Total income 399,863 577,016
EXPENSES
Interest 216,576 219,147
Depreciation 88,961 93,481
Real estate taxes 32,772 33,459
Repairs and maintenance 4,481 6,360
Management fees (Note 4) 36,421 34,075
Other property operating 51,325 45,947
General and administrative 62,879 58,512
Total expenses 493,415 490,981
Net (loss)income $ (93,552) $ 86,035
Net (loss)income allocated
to the General Partners $ (936) $ 860
Net (loss) income allocated
to the Limited Partners $ (92,616) $ 85,175
Net (loss) income per limited
partnership interest
(7,842.5 units) $ (11.81) $ 10.86
See accompanying notes to consolidated financial statements
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30,
(Unaudited)
1998 1997
Cash Flows From Operating Activities:
Net income $179,642 $255,001
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation 271,865 279,515
Provision for doubtful accounts 10,956 (2,695)
Change in rent receivable 70,168 39,876
Change in escrow and other deposits (22,425) (82,239)
Change in other assets 5,990 48,484
Change in accounts payable
and accrued expenses 50,029 39,063
Change in due to affiliates (1,995) 11,622
Change in security deposits -- 8,766
Net cash provided by operating
activities 564,230 597,393
Cash Flows From Investing Activities:
Capital expenditures (30,229) (34,826)
Cash used in investing activities (30,229) (34,826)
Cash Flows From Financing Activities:
Repayment of mortgage notes payable (81,785) (2,886,857)
Proceeds from refinancing -- 2,925,000
Loan fees -- (38,543)
Cash distributions to Limited
Partners (410,404) (375,217)
Net cash used in financing activities (492,189) (375,617)
Net increase in cash and cash
equivalents 41,812 186,950
Cash and cash equivalents at
beginning of period 749,946 623,087
Cash and cash equivalents at end
of period $791,758 $810,037
Supplemental disclosure of
cash flow information:
Cash paid for interest $621,244 $628,517
See accompanying notes to consolidated financial statements
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Brauvin Income Properties L.P. 6 (the "Partnership") is a
Delaware limited partnership organized for the purpose of
acquiring, operating, holding for investment and disposing of
commercial properties consisting principally of existing shopping
centers and, to a lesser extent, office and industrial buildings.
The General Partners of the Partnership are Brauvin 6, Inc. and
Jerome J. Brault. On August 8, 1997, Mr. Cezar M. Froelich
resigned as a Individual General Partner effective 90 days from
August 14, 1997. Brauvin 6, Inc. is owned by the A.G.E. Realty
Corporation Inc.(50%) and by Messrs. Brault (beneficially) (25%)
and Froelich (25%). A.G. Edwards & Sons, Inc. and Brauvin
Securities, Inc., affiliates of the General Partners, were the
selling agents of the Partnership. The Partnership is managed by
an affiliate of the General Partners.
The Partnership was formed in April 1986. The Partnership filed
a Registration Statement on Form S-11 with the Securities and
Exchange Commission which became effective on May 30, 1986. The
offering was terminated on August 31, 1987 having sold $7,842,500
in limited partnership interests.
The Partnership has acquired the land and buildings underlying
Delchamps Shopping Center ("Delchamps"), Shoppes on the Parkway
("Shoppes") and a Ponderosa Restaurant ("Ponderosa").
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Management's Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements
and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those
estimates.
Accounting Method
The accompanying consolidated financial statements have been
prepared using the accrual method of accounting.
Rental Income
Rental income is recognized on a straight line basis over the
life of the related leases. Differences between rental income
earned and amounts due per the respective lease agreements are
credited or charged, as applicable, to deferred rent receivable.
Federal Income Taxes
Under the provisions of the Internal Revenue Code, the
Partnership's income and losses are reportable by the partners on
their respective income tax returns. Accordingly, no provision is
made for Federal income taxes in the consolidated financial
statements.
Consolidation of Special Purpose Entities
The Partnership has two special purpose entities ("SPE"),
Brauvin/Shoppes on the Parkway L.P. and Brauvin/Delchamps L.P.,
which are each owned 99% by the Partnership and 1% by an affiliate
of the General Partners. Distributions from each SPE are
subordinated to the Partnership which effectively precludes any
distributions from an SPE to affiliates of the General Partners.
The creation of each SPE did not affect the Partnership's economic
ownership of the properties. Furthermore, this change in ownership
structure had no material effect on the consolidated financial
statements of the Partnership.
Investment in Real Estate
The Partnership's rental properties are stated at cost including
acquisition costs, leasing commissions, tenant improvements and net
of provision for impairment. Depreciation and amortization are
recorded on a straight-line basis over the estimated economic lives
of the properties, which approximate 31.5 years, and the term of
the applicable leases, respectively. Two of the Partnership's
properties are subject to liens under first mortgages (see Note 3).
In 1995, the Partnership adopted Statement of Financial
Accounting Standards No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of"
(SFAS 121). The Partnership has performed an analysis of its long-
lived assets, and the Partnership's management determined that
there were no events or changes in circumstances that indicated
that the carrying amount of the assets may not be recoverable at
September 30, 1998 and December 31, 1997. Accordingly, no
impairment loss has been recorded in the accompanying consolidated
financial statements for the nine months ended September 30, 1998
and year ended December 31, 1997.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid debt
instruments with an original maturity within three months of
purchase.
Estimated Fair Value of Financial Instruments
Disclosure of the estimated fair value of financial instruments
is made in accordance with the requirements of Statement of
Financial Accounting Standards No. 107, "Disclosures About Fair
Value of Financial Instruments". The estimated fair value amounts
have been determined by using available market information and
appropriate valuation methodologies. However, considerable
judgement is necessarily required in interpreting market data to
develop estimates of fair value.
The fair value estimates presented herein are based on
information available to management as of September 30, 1998 and
December 31, 1997, but may not necessarily be indicative of the
amounts that the Partnership could realize in a current market
exchange. The use of different assumptions and/or estimation
methodologies may have a material effect on the estimated fair
value amounts.
The carrying amounts of the following items are reasonable
estimates of fair value: cash and cash equivalents; rent receivable
escrow and other deposits; accounts payable and accrued expenses;
and due to affiliate.
(2) PARTNERSHIP AGREEMENT
The restated Limited Partnership Agreement (the "Agreement")
provides that 99% of the net profits and losses from operations of
the Partnership for each fiscal year of the Partnership shall be
allocated to the Limited Partners and 1% of the net profits and
losses from operations during each of said fiscal years shall be
allocated to the General Partners.
All Operating Cash Flow, as such term is defined in the
Agreement, during any calendar year shall be distributed 99% to the
Limited Partners and 1% to the General Partners. The receipt by
the General Partners of such 1% of Operating Cash Flow shall be
subordinated to the receipt by the Limited Partners of Operating
Cash Flow equal to a 10% per annum, cumulative, non-compounded
return on Adjusted Investment, as such term is defined in the
Agreement (the "Preferential Distribution"). In the event the full
Preferential Distribution is not made in any year (herein referred
to as a "Preferential Distribution Deficiency") and Operating Cash
Flow is available in following years in excess of the Preferential
Distribution for said years, then the Limited Partners shall be
paid such excess Operating Cash Flow until they have been paid any
unpaid Preferential Distribution Deficiency from prior years. For
subscribers who were admitted as Limited Partners during 1986, the
term "Preferential Distribution" shall mean a 12% per annum,
cumulative, non-compounded return on Adjusted Investment.
A cash distribution for the third quarter of 1998 was made to the
Limited Partners on November 15, 1998 in the amount of $137,976.
The Preferential Distribution Deficiency equaled $4,025,307 after
this last distribution.
(3) MORTGAGE NOTES PAYABLE
Mortgage notes payable at September 30, 1998, consisted of the
following:
Interest Date
1998 Rate Due
Shoppes on the Parkway(a) $5,867,379 9.55% 5/01/02
Delchamps Plaza
North Shopping Center(b) 2,877,513 9.03% 2/01/02
$8,744,892
The net carrying value of Delchamps and Shoppes approximated
$3,036,400 and $5,813,900, respectively, at September 30, 1998.
Delchamps and Shoppes serve as collateral under its respective
nonrecourse debt obligation.
Maturities of the mortgages payable are as follows:
1998 $ 28,802
1999 121,490
2000 132,707
2001 146,554
2002 8,315,339
$8,744,892
(a) On April 6, 1995, the Partnership obtained a first mortgage
loan in the amount of $6,100,000 (the "First Mortgage Loan")
secured by Shoppes from Morgan Stanley Mortgage Capital, Inc. (the
"Successor Lender"). The First Mortgage Loan bears interest at the
rate of 9.55% per annum, amortizes over a 25-year period, requires
monthly payments of principal and interest of approximately $53,500
and matures on May 1, 2002. A portion of the proceeds of the First
Mortgage Loan, approximately $4,675,000, was used to retire the
existing mortgage secured by Shoppes from Crown Life Insurance
Company. The remaining proceeds were used to pay loan closing
costs and a $999,919 return of capital distribution to the Limited
Partners.
As a precondition to the new financing, the Successor Lender
required that ownership of the property reside in a special purpose
entity ("SPE"). To accommodate the lender's requirements,
ownership of the property was transferred to the SPE,
Brauvin/Shoppes on the Parkway L.P., which is owned 99% by the
Partnership and 1% by an affiliate of the General Partners.
Distributions of Brauvin/Shoppes on the Parkway L.P. are
subordinated to a cumulative return to the Partnership. This
subordination will effectively preclude any distributions from the
SPE to affiliates of the General Partners. The creation of
Brauvin/Shoppes on the Parkway L.P. did not affect the
Partnership's economic ownership of Shoppes. Furthermore, this
change in ownership structure had no material effect on the
consolidated financial statements of the Partnership.
(b) The Partnership was required to make a balloon mortgage
payment for Delchamps in the amount of $2,823,249 in December 1996.
Prior to the scheduled maturity of the first mortgage loan, the
Lender granted the Partnership an extension until February 1, 1997.
On January 14, 1997, the Partnership obtained a first mortgage loan
in the amount of $2,925,000(the "First Mortgage Loan") secured by
Delchamps from NationsBanc Mortgage Capital Corporation. The First
Mortgage Loan bears interest at the rate of 9.03% per annum, is
amortized over a 25-year period, requires monthly payments of
principal and interest of approximately $24,600 and matures on
February 1, 2002. A portion of the proceeds of the First Mortgage
Loan, approximately $2,809,000, was used to retire the existing
mortgage secured by Delchamps from Lincoln National Life Insurance
Company.
As a precondition to the new financing on Delchamps, the lender
required that ownership of the property reside in a SPE. To
accommodate the lender's requirements, ownership of the property
was transferred to the SPE, Brauvin/Delchamps L.P., which is owned
99% by the Partnership and 1% by an affiliate of the General
Partners. Distributions of Brauvin/Delchamps L.P. are subordinated
to the Partnership which effectively precludes any distributions
from the SPE to affiliates of the General Partners. The creation
of Brauvin/Delchamps L.P. did not affect the Partnership's economic
ownership of the Delchamps property. Furthermore, this change in
ownership structure had no material effect on the consolidated
financial statements of the Partnership.
(4) TRANSACTIONS WITH AFFILIATES
Fees and other expenses paid or payable to the General Partners
or their affiliates for the nine months ended September 30, 1998
and 1997 were as follows:
1998 1997
Management fees $111,529 $104,318
Reimbursable office expenses 115,875 69,066
Legal fees -- 499
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 $9,469 for management fees, as of
September 30, 1998.
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
ITEM 2. Management's Discussion and Analysis or Plan of
Operation.
General
Certain statements in this Quarterly Report that are not
historical fact constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Without limiting the foregoing, words such as "anticipates",
"expects", "intends", "plans" and similar expressions are intended
to identify forward-looking statements. These statements are
subject to a number of risks and uncertainties. Actual results
could differ materially from those projected in the forward-looking
statements. The Partnership undertakes no obligation to update
these forward-looking statements to reflect future events or
circumstances.
Year 2000
In 1997, the Partnership initiated the conversion from its
existing accounting software to a program that is year 2000
compliant. Management has determined that the year 2000 issue will
not pose significant operational problems for its computer system.
All costs associated with this conversion are being expensed as
incurred, and are not material.
Also in 1997, management of the Partnership initiated formal
communications with all of its significant third party vendors,
service providers and financial institutions to determine the
extent to which the Partnership is vulnerable to those third
parties failure to remedy their own year 2000 issue. There can be
no guarantee that the systems of these third parties will be timely
converted and would not have an adverse effect on the Partnership.
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
Liquidity and Capital Resources
The Partnership intends to satisfy its short-term liquidity needs
through cash reserves and cash flow from the properties. Long-term
needs are expected to be satisfied through mortgage refinancing.
On April 6, 1995, the Partnership obtained a first mortgage loan
in the amount of $6,100,000 (the "First Mortgage Loan") secured by
Shoppes from Morgan Stanley Mortgage Capital, Inc. The First
Mortgage Loan bears interest at the rate of 9.55% per annum,
amortizes over a 25-year period, requires monthly payments of
principal and interest of approximately $53,000 and matures on May
1, 2002. A portion of the proceeds of the First Mortgage Loan,
approximately $4,675,000, was used to retire an existing mortgage
secured by Shoppes from Crown Life Insurance Company. The
remaining proceeds were used to pay loan closing costs and a
$999,919 return of capital distribution to the Limited Partners.
The Partnership was required to make a balloon mortgage payment
for Delchamps in December 1996 in the amount of $2,823,000. Prior
to the scheduled maturity of the first mortgage loan, the Lender
granted the Partnership an extension until February 1, 1997. On
January 14, 1997, the Partnership obtained a first mortgage loan in
the amount of $2,925,000 (the "First Mortgage Loan") secured by
Delchamps from NationsBanc Mortgage Capital Corporation. The First
Mortgage Loan bears interest at the rate of 9.03% per annum, is
amortized over a 25-year period, requires monthly payments of
principal and interest of approximately $24,600 and matures on
February 1, 2002. A portion of the proceeds of the First Mortgage
Loan, approximately $2,809,000 were used to retire the existing
mortgage secured by Delchamps from Lincoln National Life Insurance
Company.
The Partnership has paid annual cash distributions to Limited
Partners since 1986, as many of the Partnership's properties have
been operating in strong retail markets.
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
Below is a table summarizing the historical data for distribution
per Limited Partnership Interest for the last two years:
Distribution
Date 1998 1997
February 15 $16.49 $15.39
May 15 17.21 16.14
August 15 17.40 16.31
November 15 17.59 17.63
A distribution of Operating Cash Flow for the third quarter of
1998 was made to the Limited Partners on November 15, 1998 in the
amount of $137,976. The Preferential Distribution Deficiency
equaled $4,025,307 after this last distribution, a $115,388
increase over 1997.
On October 15, 1998, the Partnership received notice that an
unsolicited tender offer to purchase up to 10% of the outstanding
Limited Partnership interests of the Partnership (the "Units") was
to commence with a tender price of $475 per Unit. The offer is
being made, in part, by an entity that currently owns a nominal
economic interest in the Partnership and is scheduled to terminate
at midnight on November 13, 1998.
On October 22, 1998, Limited Partners were mailed, without the
consent or knowledge of the General Partners, an additional tender
offer to purchase up to 4.9% of the outstanding Limited Partnership
Units of the fund for $500 per Unit, less any transfer fees. This
offer is being made by an entity that currently does not own any
interests in the Partnership and is scheduled to expire on December
2,1998 at 5:00pm.
At this time, the General Partners have not made a decision as
to the particular merits or risks associated with either of the
tender offers to the Limited Partners. However, the General
Partners did notify the Limited Partners that they are exploring
various alternatives to sell the Partnership's assets. In this
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
regard, the Partnership has engaged nationally known appraisal
firms to value the Partnership's assets. Additionally, these firms
will assist the General Partners in determining the appropriate
method and timing for the disposition of the Partnership's assets.
The General Partners believe an informed determination of the true
value of the Units can be made at that time. The value of the
Units after the receipt of the appraisals may be more or less than
the current tender offers.
The General Partners further informed the Limited Partners that,
for those investors who are primarily interested in liquidating
their Units immediately, the tender offers provided such an
opportunity.
The General Partners expect to distribute proceeds from operating
cash flow, 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
Agreement, as well as payments for major repairs, tenant
improvements and leasing commissions in support of real estate
operations.
Results of Operations - Nine months ended September 30, 1998 and
1997
(Amounts rounded to nearest $000's)
The Partnership generated net income of $180,000 for the nine
months ended September 30, 1998 as compared to net income of
$255,000 for the same nine month period in 1997. The $75,000
decrease in net income resulted primarily from a $123,000 decrease
in total income and a $48,000 decrease in total expenses.
Total income for the nine months ended September 30, 1998 was
$1,671,000 as compared to $1,794,000 for the same nine month period
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
in 1997, a decrease of $123,000. The $123,000 decrease resulted
primarily from a decrease in rental income at Shoppes due to
decreased percentage rental income caused by lower sales of several
tenants.
For the nine months ended September 30, 1998 total expenses were
$1,491,000 as compared to $1,539,000 for the same nine month period
in 1997, a decrease of $48,000. The decrease of $48,000 was due
primarily to a $37,000 decrease in insurance expense at Shoppes.
Results of Operations - Three months ended September 30, 1998 and
1997
(Amounts rounded to nearest $000's)
The Partnership generated net loss of $94,000 for the three
months ended September 30, 1998 as compared to net income of
$86,000 for the same three month period in 1997. The $180,000
decrease in net income resulted primarily from a $177,000 decrease
in total income and a $2,000 increase in total expenses.
Total income for the three months ended September 30, 1998 was
$400,000 as compared to $577,000 for the same three month period in
1997, a decrease of $177,000. The $177,000 decrease resulted
primarily from a decrease in rental income at Shoppes due to
decreased percentage rental income caused by lower sales of several
tenants.
For the three months ended September 30, 1998 total expenses were
$493,000 as compared to $491,000 for the same three month period in
1997, an increase of $2,000. The increase of $2,000 was due
primarily to an increase in general and administrative expenses of
$4,500 as a result of an increase in bad debt expense. Also
contributing to the increase in expenses was an increase of $5,500
in other property operating expense related to the Shoppes
property. Partially offsetting the increase in total expenses was
a decrease in Shoppes insurance expense of $15,000 compared to the
same three month period in 1997.
<PAGE>
BRAUVIN INCOME PROPERTIES L.P. 6
(a Delaware limited partnership)
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
In accordance with the requirements of the Exchange Act, the
registrant 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: November 13, 1998
BY: /s/ Thomas E. Murphy
Thomas E. Murphy
Chief Financial Officer and
Treasurer
DATE: November 13, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 791,758
<SECURITIES> 0
<RECEIVABLES> 211,627
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 13,493,552 <F1>
<DEPRECIATION> 3,717,951
<TOTAL-ASSETS> 11,495,709
<CURRENT-LIABILITIES> 297,693
<BONDS> 8,744,892 <F2>
0
0
<COMMON> 2,453,124 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,495,709
<SALES> 0
<TOTAL-REVENUES> 1,670,945 <F4>
<CGS> 0
<TOTAL-COSTS> 841,808 <F5>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 649,495
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 179,642
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<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 LESS INTEREST
EXPENSE
</FN>
</TABLE>
