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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
Commission file number 0-15643
NATIONAL LEASE INCOME FUND 6 L.P.
(Exact name of registrant as specified in its charter)
DELAWARE 13-3275922
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
411 West Putnam Avenue, Suite 270, Greenwich, CT 06830
(Address of principal executive offices)
(203) 862-7444
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check whether the registrant (1) has filed all reports required 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 such filing
requirements for the past 90 days.
Yes X No
--- ---
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<PAGE>
NATIONAL LEASE INCOME FUND 6 L.P.
FORM 10-Q - MARCH 31, 1999
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
BALANCE SHEETS - March 31, 1999 and December 31, 1998 .......... 1
STATEMENTS OF OPERATIONS - For the three months ended
March 31, 1999 and 1998 ................................... 2
STATEMENT OF PARTNERS' EQUITY - For the three months ended
March 31, 1999 ............................................ 3
STATEMENTS OF CASH FLOWS - For the three months ended
March 31, 1999 and 1998 ................................... 4
NOTES TO FINANCIAL STATEMENTS .................................. 5-9
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS ...................... 10-12
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS ........................................ 13
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K ......................... 13
SIGNATURES .............................................................. 14
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM I - FINANCIAL STATEMENTS
NATIONAL LEASE INCOME FUND 6 L.P.
BALANCE SHEETS
March 31, December 31,
1999 1998
----------- ------------
ASSETS
Leased equipment, net $ 3,140,404 $ 3,233,889
Equipment held for sale, net 2,248,781 2,463,781
Cash and cash equivalents 2,227,315 2,287,311
Deferred costs 34,187 28,354
Other receivables and prepaid expenses 44,358 8,377
----------- -----------
$ 7,695,045 $ 8,021,712
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Liabilities
Accounts payable and accrued expenses $ 102,256 $ 249,040
Deferred income 34,625 34,625
Due to affiliates - 25,329
----------- -----------
Total liabilities 136,881 308,994
----------- -----------
Commitments and contingencies
Partners' equity
Limited partners' equity (300,005 units issued
and outstanding) 7,472,732 7,625,740
General partners' equity 85,432 86,978
----------- -----------
Total partners' equity 7,558,164 7,712,718
----------- -----------
$ 7,695,045 $ 8,021,712
=========== ===========
See notes to financial statements. 1
<PAGE>
NATIONAL LEASE INCOME FUND 6 L.P.
STATEMENTS OF OPERATIONS
For the three months ended
March 31,
----------------------------
1999 1998
---------- ------------
Revenues
Rental $ 207,750 $ 615,500
Interest 24,689 64,024
Other 42,905 2,240
--------- ---------
275,344 681,764
--------- ---------
Costs and expenses
Provision for equipment impairment 215,000 -
Operating 53,008 83,297
Depreciation 93,485 187,001
Fees to affiliates 10,388 30,775
General and administrative 58,017 36,981
--------- ---------
429,898 338,054
--------- ---------
Net (loss) income $(154,554) $ 343,710
========= =========
Net (loss) income attributable to
Limited partners $ (153,008) $ 340,273
General partners (1,546) 3,437
---------- ---------
$ (154,554) $ 343,710
========== =========
Net (loss) income per unit of limited partnership
interest (300,005 units outstanding) $ (.51) $ 1.13
======= ======
See notes to financial statements. 2
<PAGE>
NATIONAL LEASE INCOME FUND 6 L.P.
STATEMENT OF PARTNERS' EQUITY
Limited General Total
Partners' Partners' Partners'
Equity Equity Equity
----------- -------- -----------
Balance, January 1, 1999 $ 7,625,740 $ 86,978 $ 7,712,718
Net loss for the three months
ended March 31, 1999 (153,008) (1,546) (154,554)
----------- -------- -----------
Balance, March 31, 1999 $ 7,472,732 $ 85,432 $ 7,558,164
=========== ======== ===========
See notes to financial statements. 3
<PAGE>
NATIONAL LEASE INCOME FUND 6 L.P.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the three months ended
March 31,
--------------------------
1999 1998
---------- ---------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Cash flows from operating activities
Net (loss) income $ (154,554) $ 343,710
Adjustments to reconcile net income to net
cash (used in) provided by operating activities
Provision for equipment impairment 215,000 -
Depreciation 93,485 187,001
Changes in assets and liabilities
Other receivables and prepaid expenses (35,981) (11,635)
Accounts payable and accrued expenses (152,618) 45,121
Due to affiliates (25,328) -
----------- -----------
Net cash (used in) provided by operating activities (59,996) 564,197
----------- -----------
Cash flows from investing activities
Note receivable collections - 3,481
----------- -----------
Net (decrease) increase in cash and cash equivalents (59,996) 567,678
Cash and cash equivalents, beginning of period 2,287,311 4,796,456
----------- -----------
Cash and cash equivalents, end of period $ 2,227,315 $ 5,364,134
=========== ===========
</TABLE>
See notes to financial statements. 4
<PAGE>
NATIONAL LEASE INCOME FUND 6 L.P.
NOTES TO FINANCIAL STATEMENTS
1 INTERIM FINANCIAL INFORMATION
The summarized financial information contained herein is unaudited;
however, in the opinion of management, all adjustments (consisting only
of recurring accruals) necessary for a fair presentation of such
financial information have been included. The accompanying financial
statements, footnotes and discussions should be read in conjunction
with the financial statements, related footnotes and discussions
contained in the National Lease Income Fund 6 L.P. (the "Partnership")
annual report on Form 10-K for the year ended December 31, 1998. The
results of operations for the three months ended March 31, 1999 are not
necessarily indicative of the results to be expected for the full year.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Leases
The Partnership accounts for all of its leases in accordance with the
operating and financing methods. For operating leases, rental revenue
is recognized on a straight-line basis and expenses (including
depreciation) are charged to operations as incurred. For financing
leases, unearned income is recognized as revenue over the respective
lease term so as to produce a constant rate of return on the net
investment.
Leased equipment and equipment held for sale
The cost of leased equipment and equipment held for sale represents the
initial cost of the equipment to the Partnership plus miscellaneous
acquisition and closing costs, and is carried at the lower of
depreciated cost or net realizable value.
Depreciation is computed using the straight-line method over the
estimated useful lives of such assets (13 to 18 years for aircraft and
aircraft-related equipment). The Partnership capitalizes major
additions to its aircraft and depreciates such capital improvements
over the remaining estimated useful life of such aircraft. Depreciation
is not computed for equipment held for sale.
When equipment is sold or otherwise disposed of, the cost and
accumulated depreciation (and any related allowance for equipment
impairment) are removed from the accounts and any gain or loss on such
sale or disposal is reflected in operations. Normal maintenance and
repairs are charged to operations as incurred. The Partnership provides
allowances for equipment impairment based upon a periodic review of all
equipment in its portfolio, when management believes that, based upon
market analysis, appraisal reports and leases currently in place with
respect to specific equipment, the investment in such equipment may not
be recoverable.
The allowance is inherently subjective and is based upon management's
best estimate of current conditions and assumptions about expected
future conditions. The Partnership may provide for additional losses in
subsequent periods and such losses could be material.
5
<PAGE>
NATIONAL LEASE INCOME FUND 6 L.P.
NOTES TO FINANCIAL STATEMENTS
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES
The general partners of the Partnership are ALI Equipment Management
Corp. ("Equipment Management"), ALI Capital Corp. and Presidio Boram
Corp., all of whom are direct or indirect subsidiaries of Presidio
Capital Corp. ("Presidio"). Other limited partnerships and similar
investment programs have been formed by affiliates of the general
partners to acquire equipment and, accordingly, conflicts of interest
may arise between the Partnership and such other limited partnerships.
Affiliates of the general partners have also engaged in businesses
related to the management of equipment and the sale of various types of
equipment and may transact business with the Partnership.
Subject to the rights of the Limited Partners under the Limited
Partnership Agreement, Presidio controls the Partnership through its
direct or indirect ownership of all of the shares of the general
partners. On August 28, 1997, an affiliate of NorthStar Capital
Partners acquired all of the Class B shares of Presidio, the corporate
parent of the general partners. This acquisition, when aggregated with
previous acquisitions, caused NorthStar Capital Partners to acquire
indirect control of the general partners. Effective July 31, 1998,
Presidio is indirectly controlled by NorthStar Capital Investment Corp.
("NorthStar"), a Maryland corporation.
Presidio entered into a management agreement with NorthStar Presidio
Management Company, LLC ("NorthStar Presidio"), an affiliate of
NorthStar. Under the terms of the management agreement, NorthStar
Presidio provides the day-to-day management of Presidio and its direct
and indirect subsidiaries and affiliates. During the three months ended
March 31, 1999 and 1998 reimbursable expenses to NorthStar Presidio
from the Partnership amounted to $1,200 and $2,596, respectively.
The Partnership has a management agreement with Integrated Resources
Equipment Group ("IREG"), an affiliate of the general partners,
pursuant to which IREG receives 5% of annual gross rental revenues on
operating leases; 2% of annual gross rental revenues on full payout
leases which contain net lease provisions; and 1% of annual gross
rental revenues if services are performed by third parties under the
active supervision of Equipment Management, as defined in the Limited
Partnership Agreement. The Partnership incurred equipment management
fees of $10,388 and $30,775 for the three months ended March 31, 1999
and 1998, respectively.
During the operating and liquidating stage of the Partnership, IREG may
be entitled to a partnership management fee equal to 4% of cash from
operations as defined in the Limited Partnership Agreement, subject to
possible increase after the limited partners have received certain
specified minimum returns on their investment. No Partnership
management fees were incurred for the three months ended March 31, 1999
and 1998.
The management agreements between the Partnership and IREG may be
terminated by either party to such agreements.
6
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NATIONAL LEASE INCOME FUND 6 L.P.
NOTES TO FINANCIAL STATEMENTS
3 CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (continued)
The general partners are entitled to 1% of distributable cash from
operations, cash from sales or financing and cash from the equipment
reserve accounts and an allocation of 1% of taxable net income or loss
of the Partnership.
During the operating and liquidating stage of the Partnership, IREG may
be entitled to receive certain other fees which are subordinated to the
receipt by the limited partners of their original invested capital and
certain specified minimum returns on their investment.
Upon the ultimate liquidation of the Partnership, the general partners
may be required to remit to the Partnership certain payments
representing capital account deficit restoration based upon a formula
provided within the Limited Partnership Agreement. Such restoration
amount may be less than the recorded general partners' deficit, which
could result in distributions to the limited partners of less than
recorded equity.
4 EQUIPMENT HELD FOR SALE
Equipment held for sale consists of certain transportation equipment
with an aggregate net carrying value of $2,248,781 (net of accumulated
depreciation of $12,817,338 and an allowance for equipment impairment
of $1,782,750) at March 31, 1999. Based upon current information with
respect to potential sales of the equipment, management recorded an
additional provision for equipment impairment of $215,000 for the three
month period ended March 31, 1999 with respect to the two Boeing
737-200 aircraft.
5 COMMITMENTS AND CONTINGENCIES
a. Continental Micronesia, Inc.
On March 31, 1993, the Partnership leased two Boeing 727-227 Advanced
aircraft to Continental Airlines, Inc. ("Continental") for a term of
approximately 69 months to be used by Continental's Air Micronesia
operation (the "Air Mike Leases"). Each Air Mike Lease provided for a
monthly base rent of $69,250, subject to adjustments for rent credits
relating to initial modifications (the "Initial Modifications") which
include Traffic Collision Avoidance Systems, windshear detection and
upgraded avionics, aggregating approximately $1,308,000 for both
aircraft. Such modifications were funded by Continental and were repaid
by the Partnership through the application of rent credits such that
Continental recouped the aggregate cost of the Initial Modifications
over a 36-month period with interest at 9.31% per annum.
7
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NATIONAL LEASE INCOME FUND 6 L.P.
NOTES TO FINANCIAL STATEMENTS
5 COMMITMENTS AND CONTINGENCIES
a. Continental Micronesia, Inc. (continued)
In addition, Continental made certain other modifications to such
aircraft. The Partnership provided financing for the modifications
("Lessor Financing Credits") against the base rental payments due under
the Air Mike Leases. The lessee repaid Lessor Financing Credits through
monthly installments which were amortized at the rate of 9.31% per
annum over 36 months. Through March 31, 1999, the Partnership had
provided financing aggregating approximately $1,308,000 The Partnership
sold one aircraft to an unaffiliated third party during the third
quarter of 1998. Additionally, the Partnership has agreed to extend the
term of the lease with respect to the second aircraft until December
31, 1999 at the same lease rate. The net carrying value of the aircraft
aggregated approximately $3,140,000 and $3,234,000 (net of allowances
for equipment impairment aggregating approximately $5,005,000 provided
in prior periods) at March 31, 1999 and December 31, 1998,
respectively.
In April 1993, Continental transferred all of its rights and
obligations under the Air Mike Leases to Air Micronesia, a stand-alone
air carrier affiliated with Continental.
b. Southwest Airlines Co.
On November 30, 1994, the leases with Southwest Airlines, Co.
("Southwest") of two Boeing 737-200 aircraft (the "Southwest Aircraft")
were scheduled to expire in accordance with their original terms. The
associated nonrecourse debt was repaid upon the receipt of the final
rental installment. Southwest and the Partnership agreed to extend
Southwest's leases for one additional year for a monthly rent of
approximately 28% of the original lease rate.
On November 30, 1995, the lease extensions with Southwest were
scheduled to expire in accordance with their terms. Southwest and the
Partnership agreed to a two year extension of each lease which provided
for monthly rentals of 125% of the previous lease rate.
The Partnership and Southwest agreed to short term extension of the
leases to facilitate the return of the aircraft. In January 1998, one
of the aircraft was returned and the second was returned in August
1998. The Partnership is actively remarketing the aircraft.
The net carrying value of the Southwest Aircraft aggregated
approximately $2,249,000 and $2,464,000 (net of allowances for
equipment impairment aggregating approximately $10,615,000 and
$10,400,000 provided) at March 31, 1999 and December 31, 1998,
respectively.
The Partnership recorded a provision for equipment impairment of
$215,000 during the three month period ended March 31, 1999 to
recognize the loss in value related to its two Boeing 737-200 aircraft.
8
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NATIONAL LEASE INCOME FUND 6 L.P.
NOTES TO FINANCIAL STATEMENTS
5 COMMITMENTS AND CONTINGENCIES (continued)
c. Tax assessment
In July 1998, the Partnership received proposed notices of assessment
from the State of Hawaii with respect to general excise tax ("GET")
aggregating approximately $1,757,000 (including interest and penalties)
for the years 1987 through 1995. The state is alleging that the
Partnership owes GET with respect to rents received from Aloha
Airlines, Inc. ("Aloha") and Hawaiian Airlines, Inc. ("Hawaiian") under
the leases between the Partnership and each of the airlines.
The leases with both Aloha and Hawaiian provided for full
indemnification of the Partnership for such taxes, but the bankruptcy
of Hawaiian may relieve Hawaiian of its indemnification obligation for
any periods prior to September 21, 1993, when Hawaiian and its
affiliates sought bankruptcy protection. In any event, it is the
Partnership, as taxpayer, which is ultimately liable for GET, if it is
applicable.
The State of Hawaii has not previously applied the GET to rentals
received by a lessor of aircraft where the lessor's only contact with
the State of Hawaii is that it has leased its aircraft to airlines
which are based in the state. Aloha and Hawaiian, as well as the
Partnership, have separately engaged tax counsel and both airlines are
cooperating with the Partnership to vigorously contest the proposed
assessments.
Final notices of assessment have not yet been issued. Although there
can be no assurance that the contest of the assessments will be
successful, the Partnership believes that the state's position on the
applicability of GET in this instance is without merit. The Partnership
has not recorded any provision or liability as a result of the proposed
notices of assessment.
6 SUBSEQUENT EVENTS
On April 20, 1999, the Partnership sold one Boeing 737-200 aircraft to
an unaffiliated third party for proceeds of approximately $1,250,000,
exclusive of selling expenses of approximately $52,000. At the time of
sale, the aircraft had a net carrying value of approximately
$1,198,000. At March 31, 1999, the Partnership recorded a provision for
equipment impairment of approximately $34,000 with respect to this
aircraft.
On May 5, 1999, a Boeing 737-200 aircraft owned by the Partnership was
sold to an unaffiliated third party for proceeds of approximately
$1,100,000, exclusive of selling expenses of approximately $49,000. At
the time of sale, the aircraft had a net carrying value of
approximately $1,051,000. At March 31, 1999, the Partnership recorded a
provision for equipment impairment of approximately $181,000 with
respect to this aircraft.
9
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
As of March 31, 1999, the Partnership had operating reserves of approximately
$2,130,000 or $7.00 per unit, which was comprised of undistributed cash from
operations and sales, aggregating approximately $630,000 as well as the general
working capital reserve of $1,500,000.
It may be necessary for the Partnership to use a portion of its operating
reserve which would otherwise be available for distribution, to upgrade or
enhance off-lease aircraft if the Partnership determines that such expenditures
are in its best interests in order to maximize the re-marketing value of such
aircraft.
During 1999, the Partnership anticipates receiving approximately $623,000 of
rentals from one non-cancelable lease accounted for as an operating lease which
represents approximately $2.07 per Unit. The foregoing per Unit amount does not
reflect deductions for operating expenses and is not sufficient to maintain
previous distribution levels. Distribution levels may fluctuate based upon the
proceeds generated by the sales of the Partnership's remaining aircraft and
requirements for operating reserves, if any. Equipment with an original cost of
approximately $26,849,000 was off-lease at March 31, 1999.
As of March 31, 1999, the Partnership remained the owner of three aircraft and
related engines (one of which were sold in April and one was sold in May) as
well as one additional aircraft engine and components, which in the aggregate
represented 100% of its remaining equipment, on an original cost basis. Such
aircraft and engine had an original cost of approximately $40,631,000 (net
carrying value of approximately $5,389,000).
In July 1998, the Partnership received a proposed notices of assessment from the
State of Hawaii with respect to general excise tax ("GET") aggregating
approximately $1,757,000 (including interest and penalties) for the years 1987
through 1995. The state is alleging that the Partnership owes GET with respect
to rents received from Aloha Airlines, Inc. ("Aloha") and Hawaiian Airlines,
Inc. ("Hawaiian") under the leases between the Partnership and each of the
airlines.
The leases with both Aloha and Hawaiian provided for full indemnification of the
Partnership for such taxes, but the bankruptcy of Hawaiian may relieve Hawaiian
of its indemnification obligation for any periods prior to September 21, 1993,
when Hawaiian and its affiliates sought bankruptcy protection. In any event, it
is the Partnership, as taxpayer, which is ultimately liable for GET, if it is
applicable.
The State of Hawaii has not previously applied the GET to rentals received by a
lessor of aircraft where the lessor's only contact with the State of Hawaii is
that it has leased its aircraft to airlines which are based in the state. Aloha
and Hawaiian, as well as the Partnership, have separately engaged tax counsel
and both airlines are cooperating with the Partnership to vigorously contest the
proposed assessments.
Final notices of assessment have not yet been issued. Although there can be no
assurance that the contest of the assessments will be successful, the
Partnership believes that the state's position on the applicability of GET in
this instance is without merit. The Partnership has not recorded any provision
or liability as a result of the proposed notices of assessment.
10
<PAGE>
Liquidity and Capital Resources (continued)
Inflation and changing prices have not had any material effect on the
Partnership's revenues since its inception nor does the Partnership anticipate
any material effect on its business from these factors. The softness in the
aircraft industry and resulting decline in value of the aircraft owned by the
Partnership have resulted in the Partnership providing allowances for equipment
impairment.
Year 2000 compliance
The Year 2000 compliance issue concerns the inability of computerized
information systems and equipment to accurately calculate, store or use a date
after December 31, 1999, as a result of the year being stored as a two digit
number. This could result in a system failure or miscalculations causing
disruptions of operations. The Partnership and NorthStar Presidio recognize the
importance of ensuring that its business operations are not disrupted as a
result of Year 2000 related computer system and software issues.
NorthStar Presidio is in the process of assessing its internal computer
information systems and is taking the steps necessary to remediate these systems
so that they will be Year 2000 compliant. In connection therewith, NorthStar
Presidio has installed a new fully compliant accounting and reporting system.
NorthStar Presidio is also reviewing its other internal systems and programs,
along with those of its unaffiliated third party service providers, in order to
ensure compliance.
Because this assessment is ongoing, the total cost of bringing all systems and
equipment into Year 2000 compliance has not been fully quantified. Based upon
available information, NorthStar Presidio does not believe that these costs will
have a material adverse effect on the Partnership's business, financial
condition or results. While the Partnership's present intention is to wind up
its business prior to the end of 1999, it is possible that there could be
adverse consequences to the Partnership as a result of Year 2000 issues that are
outside the Partnership's control.
Results of Operations
Net income decreased for the three months ended March 31, 1999 as compared to
the three months ended March 31, 1998 principally due to a decrease in rental
income and an increase in costs and expenses.
Revenues decreased overall for the three month period ended March 31, 1999
compared to the corresponding period of the prior year. Rental income decreased
due to the sale of one Boeing 727-227 on September 23, 1998 and the return of
two Boeing 737-200 aircraft in January and August 1998
Interest income decreased for the three month period ended March 31, 1999
compared to the corresponding period of the prior year due to lower cash
balances available for short term investment.
Expenses increased for the three month period ended March 31, 1999 as compared
to the corresponding period of the prior year as follows:
Operating expenses decreased for the three month period ended March 31, 1999 as
compared to the corresponding period of the prior year due to lower expenses
related to the return and storage of aircraft.
11
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Results of Operations (continued)
Depreciation expense decreased resulting from the disposition of certain
equipment subsequent to the prior year's period, as well as to the fact that
certain equipment reached salvage value prior to the current year's period.
Fees to affiliates decreased due to a decrease in partnership management fees
resulting from a decrease in distributable cash from operations as well as lower
equipment management fees due to reduced rentals on which such fee is based.
The Partnership recorded a provision for equipment impairment of $215,000 during
the three month period ended March 31, 1999 to recognize the loss in value
related to its two Boeing 737-200 aircraft.
12
<PAGE>
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
None
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None
(b) Reports on form 8-K: None
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Partnership has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
National Lease Income Fund 6 L.P.
By: ALI Equipment Management Corp.
Managing General Partner
/s/ Allan B. Rothschild
----------------------------------
Allan B. Rothschild
President
/s/ Lawrence R. Schachter
----------------------------------
Lawrence R. Schachter
Senior Vice President and Chief
Financial Officer
Date: May 12, 1999
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Statements of the March 31, 1999 Form 10Q of National Lease Income Fund 6 and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 2,227,315
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,305,860
<PP&E> 23,843,394
<DEPRECIATION> 18,454,209
<TOTAL-ASSETS> 7,695,045
<CURRENT-LIABILITIES> 136,881
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 7,558,164
<TOTAL-LIABILITY-AND-EQUITY> 7,695,045
<SALES> 0
<TOTAL-REVENUES> 275,344
<CGS> 0
<TOTAL-COSTS> 121,413
<OTHER-EXPENSES> 308,485
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (154,554)
<INCOME-TAX> 0
<INCOME-CONTINUING> (154,554)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (154,554)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
