FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
June 30, 1996 0-17466
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
(Exact Name of Registrant as specified in its charter)
Delaware 16-1309987
- -------------------- ------------------------------------
(State of Formation) (IRS Employer Identification Number)
2350 North Forest Road
Suite 12 A
Getzville, New York 14068
(Address of Principal Executive Office)
Registrant's Telephone Number: (716) 636-0280
Indicate by a check mark 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
--- ---
Indicate by a check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of the 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. (X)
As of June 30, 1996 the registrant had 157,377.9 units of limited partnership
interest outstanding.
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
----------------------------------------------------
INDEX
-----
PAGE NO.
--------
PART I: FINANCIAL INFORMATION
- ------- ---------------------
Balance Sheets -
June 30, 1996 and December 31, 1995 3
Statements of Operations -
Three Months Ended June 30, 1996 and 1995 4
Statements of Operations -
Six Months Ended June 30, 1996 and 1995 5
Statements of Cash Flows -
Six Months Ended June 30, 1996 and 1995 6
Statements of Partners' (Deficit) Capital -
Six Months Ended June 30, 1996 and 1995 7
Notes to Financial Statements 8 - 22
PART II: MANAGEMENT'S DISCUSSION & ANALYSIS OF
- -------- FINANCIAL CONDITION & RESULTS OF OPERATIONS 23 - 24
-------------------------------------------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
BALANCE SHEETS
June 30, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Property, at cost:
Land and land improvements $ 2,114,098 $ 2,114,098
Buildings 16,547,368 16,407,368
Furniture and fixtures 1,101,500 1,101,500
------------ ------------
19,762,966 19,622,966
Less accumulated depreciation 4,913,379 4,506,015
------------ ------------
Property, net 14,849,587 15,116,951
Investments in real estate joint ventures 481,192 547,177
Cash -- --
Accounts receivable 70,226 57,923
Accounts receivable - affiliate 356,647 349,027
Property acquisition costs capitalized -- --
Other assets 206,315 180,018
------------ ------------
Total Assets $ 15,963,967 $ 16,251,096
============ ============
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Cash overdraft $ 275,477 $ 174,919
Mortgages payable 9,647,728 9,672,590
Accounts payable and accrued expenses 650,609 681,920
Security deposits and prepaid rents 197,243 172,814
------------ ------------
Total Liabilities 10,771,057 10,702,243
------------ ------------
Partners' (Deficit) Capital:
General partners (245,990) (235,312)
Limited partners 5,438,901 5,784,165
------------ ------------
Total Partners' Capital 5,192,910 5,548,853
------------ ------------
Total Liabilities and Partners' Capital $ 15,963,967 $ 16,251,096
============ ============
</TABLE>
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
STATEMENTS OF OPERATIONS
Three Months Ended June 30, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
June 30, June 30,
1996 1995
Income:
Rental $ 887,450 $ 1,058,002
Interest and other income 17,574 38,889
----------- -----------
Total income 905,024 1,096,891
----------- -----------
Expenses:
Property operations 492,960 585,655
Interest 235,106 206,276
Depreciation and amortization 179,619 201,669
Administrative:
Paid to affiliates 65,693 119,877
Other 108,583 105,443
----------- -----------
Total expenses 1,081,961 1,218,920
----------- -----------
Loss before allocated loss from joint ventures (176,937) (122,029)
Allocated loss from joint ventures (106,330) (25,268)
----------- -----------
Net loss $ (283,267) $ (147,297)
=========== ===========
Loss per limited partnership unit $ (1.75) $ (0.91)
=========== ===========
Distributions per limited partnership unit $ -- $ --
=========== ===========
Weighted average number of
limited partnership units
outstanding 157,378 157,378
=========== ===========
See notes to financial statements
-4-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1996 and 1995
(Unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
Income:
Rental $ 1,861,612 $ 2,065,704
Interest and other income 163,349 90,652
----------- -----------
Total income 2,024,961 2,156,356
----------- -----------
Expenses:
Property operations 1,085,222 1,205,096
Interest 441,382 437,159
Depreciation and amortization 448,050 405,247
Administrative:
Paid to affiliates 214,026 218,538
Other 126,238 222,812
----------- -----------
Total expenses 2,314,919 2,488,852
----------- -----------
Loss before allocated loss from joint ventures (289,958) (332,496)
Allocated loss from joint ventures (65,985) (45,903)
----------- -----------
Net loss $ (355,943) $ (378,399)
=========== ===========
Loss per limited partnership unit $ (2.19) $ (2.33)
=========== ===========
Distributions per limited partnership unit $ -- $ --
=========== ===========
Weighted average number of
limited partnership units
outstanding 157,378 157,378
=========== ===========
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
<S> <C> <C>
Cash flow from operating activities:
Net loss $(355,943) $(378,399)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 448,050 405,247
Net loss from joint ventures 65,985 45,903
Changes in operating assets and liabilities:
Accounts receivable (12,303) (78,517)
Other assets (66,984) 17,277
Accounts payable and accrued expenses (31,311) 25,267
Security deposits and prepaid rent 24,429 9,970
--------- ---------
Net cash provided by operating activities 71,923 46,748
--------- ---------
Cash flow from investing activities:
Accounts receivable - affiliates (7,620) 150,424
Capital expenditures (140,000) (171,285)
Contributions to joint ventures, net of distributions -- --
--------- ---------
Net cash (used in) investing activities (147,620) (20,861)
--------- ---------
Cash flows from financing activities:
Cash overdraft 100,558 --
Distributions to partners -- --
Principal payments on mortgages (24,862) (13,802)
Mortgage proceeds -- --
--------- ---------
Net cash provided by (used in) financing activities 75,696 (13,802)
--------- ---------
Increase (decrease) in cash -- 12,085
Cash - beginning of period -- 118,039
--------- ---------
Cash - end of period $ -- $ 130,124
========= =========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 441,382 $ 437,159
========= =========
</TABLE>
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
STATEMENTS OF PARTNERS' (DEFICIT) CAPITAL
Six Months Ended June 30, 1996 and 1995
(Unaudited)
General Limited Partners
Partners
Amount Units Amount
------ ----- ------
Balance, January 1, 1995 $ (196,105) 157,377.9 $ 7,051,862
Net loss (11,352) -- (367,047)
----------- --------- -----------
Balance, June 30, 1995 $ (207,457) 157,377.9 $ 6,684,815
=========== ========= ===========
Balance, January 1, 1996 $ (235,312) 157,377.9 $ 5,784,165
Net loss (10,678) -- (345,264)
----------- --------- -----------
Balance, June 30, 1996 $ (245,990) 157,377.9 $ 5,438,901
=========== ========= ===========
See notes to financial statements
-7-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
NOTES TO FINANCIAL STATEMENTS
Six Months Ended June 30, 1996 and 1995
(Unaudited)
1. GENERAL PARTNERS' DISCLOSURE
In the opinion of the General Partners of Realmark Property Investors
Limited Partnership VI-A, all adjustments necessary for a fair presentation
of the Partnership's financial position, results of operations and changes
in cash flows for the six month periods ended June 30, 1996 and 1995, have
been made in the financial statements. Such financial statements are
unaudited and subject to any year-end adjustments which may be necessary.
2. FORMATION AND OPERATION OF PARTNERSHIP
Realmark Property Investors Limited Partnership VI-A (the "Partnership"), a
Delaware Limited Partnership, was formed on September 21, 1987, to invest
in a diversified portfolio of income-producing real estate investments.
In November 1987, the Partnership commenced the public offering of units of
limited partnership interest. Other than matters relating to organization,
it had no business activities and, accordingly, had not incurred any
expenses or earned any income until the first interim closing (minimum
closing) of the offering, which occurred on February 12, 1988. The offering
was concluded on November 10, 1988, at which time 157,377.9 units of
limited partnership interest were sold and outstanding, including 30 units
held by an affiliate of the General Partners. The offering terminated on
November 10, 1988 with gross offering proceeds of $15,737,790. The General
Partners are Realmark Properties, Inc., a wholly-owned subsidiary of J.M.
Jayson & Company, Inc. and Joseph M. Jayson, the Individual General
Partner. Joseph M. Jayson is the sole shareholder of J.M. Jayson & Company,
Inc.
Under the partnership agreement, the general partners and their affiliates
can receive compensation for services rendered and reimbursement for
expenses incurred on behalf of the Partnership.
-8-
<PAGE>
FORMATION AND OPERATION OF PARTNERSHIP (CONTINUED)
Net income or loss and proceeds arising from a sale or refinancing shall be
distributed first to the limited partners in amounts equivalent to a 7%
return on the average of their adjusted capital contributions, then an
amount equal to their capital contributions, then an amount equal to an
additional 5% of the average of their adjusted capital contributions after
the general partners receive a 3% property disposition fee. Such fees shall
be reduced, but not below zero, by the amounts necessary to pay to limited
partners whose subscriptions were accepted by January 31, 1988, an
additional cumulative annual return (not compounded) equal to 2% based on
their average adjusted capital contributions, and to limited partners whose
subscriptions were accepted between February 1, 1988 and June 30, 1988, an
additional cumulative annual return (not compounded) equal to 1% based on
their average adjusted capital contributions commencing with the first
fiscal quarter following the termination of the offering of units, then to
all partners in an amount equal to their respective positive capital
balances, and finally, in the ratio of 87% to the limited partners and 13%
to the general partners.
The partnership agreement also provides that distribution of funds,
revenues, costs and expenses arising from partnership activities, exclusive
of any sale or refinancing activities, are to be allocated 97% to the
limited partners and 3% to the general partners.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash
----
For purposes of reporting cash flows, cash includes the following items:
cash on hand; cash in checking; and money market savings.
Property and Depreciation
-------------------------
Depreciation is provided using the straight-line method over the estimated
useful lives of the respective assets. Expenditures for maintenance and
repairs are expensed as incurred, and major renewals and betterments are
capitalized. The Accelerated Cost Recovery System and Modified Accelerated
Cost Recovery System are used to determine depreciation expense for tax
purposes.
-9-
<PAGE>
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Acquisition Fees
----------------
Acquisition fees are paid to the general partner as properties are
specified, which generally occurs when a contract to purchase the property
is entered into. Acquisition fees are allocated to specific properties when
actual closing takes place. Acquisition fees paid for properties that
ultimately are not acquired will be applied toward other properties that
are acquired or reallocated to existing properties.
Unconsolidated Joint Ventures
-----------------------------
The Partnership's investment in affiliated real estate joint ventures are
accounted for on the equity method.
Rental Income
-------------
Leases for residential properties have terms of one year or less.
Commercial leases generally have terms ranging from one to five years.
Rental income is recognized on the straight line method over the term of
the lease.
Rents Receivable
----------------
Due to the nature of these accounts, residential rents receivable are fully
reserved as of June 30, 1996 and 1995.
4. ACQUISITION AND DISPOSITION OF RENTAL PROPERTY
Inducon Joint Venture - Columbia (the "Venture") was formed pursuant to an
agreement dated March 16, 1988 between the Partnership and Trion
Development Group, Inc., a New York corporation (the "Corporation"). The
primary purpose of the Venture was to acquire and lease land and construct
office/warehouse buildings as income producing property. The Partnership
contributed initial capital to the Venture of $1,064,950, which was used to
fund the development costs. On May 19, 1989 the Partnership purchased the
minority venturer's interest in the Inducon Joint Venture - Columbia for
$130,000. The office complex, located in Columbia, South Carolina, consists
of four (4) buildings. The first phase was placed in service in July 1989
and has a total cost of $1,793,276, which includes $311,358 in acquisition
fees. The second phase was put in service in December 1991 and has a total
cost of $1,815,206, which includes $48,796 of capitalized interest.
-10-
<PAGE>
ACQUISITION AND DISPOSITION OF RENTAL PROPERTY (CONTINUED)
In February 1989 the Partnership acquired an 80 unit apartment complex
(Beaver Creek) located in Beaver County, Pennsylvania for a purchase price
of $1,872,887, which included $347,404 in acquisition fees.
In June 1989 the Partnership acquired a 240 unit apartment complex
(Countrybrooke Estates, formerly West Creeke) located in Louisville,
Kentucky for a purchase price of $5,670,984, which included $334,285 in
acquisition fees.
In March 1990 the Partnership purchased a 131 unit apartment complex
(Stonegate) located in Mobile, Alabama for a purchase price of $4,145,367,
which included $225,620 in acquisition fees.
In March 1991 the Partnership purchased a 230 unit apartment complex (The
Commons on Lewis Avenue, formerly Williamsburg Commons) located in Tulsa,
Oklahoma for a purchase price of $2,965,803, which included $269,721 in
acquisition fees.
In September 1991 the Partnership entered into an agreement and formed a
joint venture with Realmark Property Investors Limited Partnership II and
VI-B (RPILP II and VI-B) for the purpose of operating the 250 unit Foxhunt
Apartments in Kettering, Ohio and owned by RPILP II. In April 1992 the
Partnership's capital contribution of $389,935 plus interest was returned
by RPILP II and the Partnership's interest in the joint venture ended.
In May 1992 the Partnership entered into an agreement to form a joint
venture with Realmark Property Investors Limited Partnership (RPILP) for
the purpose of operating the 144 unit Gold Key Apartments located in
Englewood, Ohio and owned by RPILP.
In August 1992 the Partnership entered into a joint venture agreement for
the purpose of operating Research Triangle Industrial Park West, a 150,000
square foot office/warehouse facility located in Durham, North Carolina.
The original joint venture agreement to develop and operate the property,
created between Realmark Property Investors Limited Partnership II (RPILP
II) and Adaron Group (Adaron), was dissolved, and the Partnership acquired
all rights held by Adaron.
-11-
<PAGE>
5. MORTGAGES AND NOTES PAYABLE
In connection with the acquisition of rental property, the Partnership
obtained mortgages as follows:
Countrybrook Estates (formerly West Creeke)
-------------------------------------------
A mortgage with a balance of $3,964,286 and $3,989,961 at June 30, 1996 and
1995, respectively, bearing interest at 9.75%. The mortgage provides for
annual principal and interest payments of $413,570 payable in equal monthly
installments with a final payment of $3,964,286 due on July 1, 1996.
Inducon - Columbia
------------------
On July 27, 1989 a construction loan was approved. Interest on the amount
advanced is at the prime rate, as announced by Nations Bank, plus 1.25%.
Interest is payable in monthly installments commencing the first month
following the first advance, and continuing until July 10, 1994. On that
date the Partnership had the option of purchasing two one-year extensions
by paying, at the time of each extension, a fee equal to one-half of one
percent of the then outstanding principal balance. The Partnership
exercised both of its options, and has extended the due date to July 10,
1996. On July 26, 1993 the construction loan was restructured to allow up
to $500,000 to be advanced solely for tenant upfit expenses. All terms
under the original agreement are still in effect. As of June 30, 1996 and
1995 loan advances amounted to $1,816,081 and $1,748,556, respectively.
Stonegate
---------
A mortgage with a balance of $1,973,717 and $1,993,974 at June 30, 1996 and
1995, respectively. The mortgage provided for monthly principal and
interest payments of $18,800 through March 31, 1994. On April 1, 1994 the
interest rate changed to 1% over the corporate base rate charged by the
Boatman's National Bank. Monthly payments from April 1, 1994 through
maturity on March 1, 1997 will equal $1,726 in principal plus accrued
interest. A final payment of $1,960,592 plus accrued interest is due April
1, 1997.
-12-
<PAGE>
MORTGAGES AND NOTES PAYABLE (CONTINUED)
The Commons on Lewis Avenue (formerly Williamsburg Commons)
-----------------------------------------------------------
A mortgage with a balance of $1,895,000 at June 30, 1996 and 1995 obtained
at the time of purchase, providing for monthly interest only payments
ranging from 8% to 12% annually. Principal and interest payments began May
1996 with an effective interest rate of 10% per the loan agreement. The
entire principal balance, plus accrued interest, is due and payable April
1, 2001.
The mortgages described above are secured by the individual properties to
which they relate.
The aggregate maturities of mortgages payable for each of the next five
years and thereafter are as follows:
Year Amount
---- ------
1996 $ 5,814,229
1997 1,963,361
1998 0
1999 0
2000 0
Thereafter 1,895,000
----------
TOTAL $ 9,672,590
===========
6. RELATED PARTY TRANSACTIONS
Management fees for the management of certain of the Partnership's
properties are paid to an affiliate of the General Partners. The management
agreement provides for 5% of gross monthly receipts of the complexes to be
paid as fees for administering the operations of the properties. These fees
totaled $98,324 and $98,580 for the six months ended June 30, 1996 and
1995, respectively.
According to the terms of the Partnership Agreement, the General Partner is
also entitled to receive a partnership management fee equal to 7% of net
cash flow (as defined in the Partnership Agreement), 2% of which is
subordinated to the limited partners having received an annual cash return
equal to 7% of their adjusted capital contributions. There were no such
fees paid or accrued for the six months ended June 30, 1996 or 1995.
-13-
<PAGE>
RELATED PARTY TRANSACTIONS (CONTINUED)
The general partners are also allowed to collect a property disposition fee
upon the sale of acquired properties. This fee is not to exceed the lesser
of 50% of amounts customarily charged in arm's-length transactions by
others rendering similar services for comparable properties, or 3% of the
sales price. The property disposition fee is subordinate to payments to the
limited partners of a cumulative annual return (not compounded) equal to 7%
of their average adjusted capital balances and to repayment to the limited
partners of an amount equal to their original capital contributions. No
properties have been sold as of June 30, 1996 and accordingly, there have
been no property disposition fees paid or earned by the general partner.
Pursuant to the terms of the Partnership agreement, the corporate general
partner charges the Partnership for reimbursement of certain costs and
expenses incurred by the corporate general partner and its affiliates in
connection with the administration of the Partnership and acquisition of
properties. These charges are for the Partnership's allocated share of such
costs and expenses as payroll, travel, communication costs related to
partnership accounting, partner communication and relations, and
acquisition of properties. Partnership accounting, communication, marketing
and acquisition expenses are allocated based on total assets, number of
partners and number of units, respectively.
Computer service charges for the partnerships are paid or accrued to an
affiliate of the General Partner. The fee is based upon the number of
apartment units and totaled $5,280 for both the six months ended June 30,
1996 and 1995.
Accounts receivable - affiliates amounted to $356,647 at June 30, 1996.
This balance is in the process of being reimbursed.
7. INCOME TAXES
No provision has been made for income taxes since the income or loss of the
partnership is to be included in the tax returns of the Individual
Partners.
The tax returns of the Partnership are subject to examination by the
Federal and state taxing authorities. Under federal and state income tax
laws, regulations and rulings, certain types of transactions may be
accorded varying interpretations and, accordingly, reported partnership
amounts could be changed as a result of any such examination.
-14-
<PAGE>
INCOME TAXES (CONTINUED)
The reconciliation of net loss for the six months ended June 30, 1996 and
1995 as reported in the statements of operations, and as would be reported
for tax purposes, is as follows:
June 30, June 30,
1996 1995
---- ----
Net loss - statement of operations $ (355,943) $ (378,399)
Add to (deduct from):
Difference in depreciation 72,172 40,060
Tax basis adjustments -
Joint Ventures 111,288 87,000
Allowance for doubtful accounts 28,898 30,443
----------- ------------
Net (loss) - tax return purposes $ (143,585) $ (220,896)
=========== ============
The reconciliation of Partners' Capital as of June 30, 1996 and December
31, 1995 as reported in the balance sheet, and as reported for tax
purposes, is as follows:
June 30, December 31,
1996 1995
---- ----
Partners' Capital - balance sheet $ 5,192,910 $ 5,548,853
Add to (deduct from):
Accumulated difference in
depreciation 218,278 146,106
Tax basis adjustment -
Joint Ventures 825,687 714,399
Syndication fees 2,312,863 2,312,863
Other non-deductible expenses 299,700 270,802
----------- -----------
Partners' Capital - tax return purposes $ 8,849,438 $ 8,993,023
=========== ===========
-15-
<PAGE>
8. INVESTMENT IN JOINT VENTURES
On September 27, 1991 the Partnership entered into an agreement to form a
joint venture with Realmark Property Investors Limited Partnership II
(RPILP II) and Realmark Property Investors Limited Partnership VI-B (RPILP
VI-B). The joint venture was formed for the purpose of operating the
Foxhunt Apartments located in Dayton, Ohio and owned by RPILP II. Under the
terms of the original agreement, the Partnership contributed $390,000 and
RPILP VI-B contributed $1,041,568 to buy out the wraparound promissory note
on the property. RPILP II contributed the property net of the first
mortgage.
On April 1, 1992 the Partnership's interest in the joint venture was bought
out by RPILP II for $389,935 plus accrued interest at 15%. The joint
venture agreement had provided that any income, loss, gain, cash flow or
sale proceeds be allocated 63.14% to RPILP II, 10.04% to the Partnership,
and 26.82% to RPILP VI-B. The allocated net loss of the joint venture from
the date of inception through April 1, 1992 was accounted for on the equity
method due to the general partner's active relationship with each venturer.
On May 5, 1992 the Partnership entered into an agreement to form a joint
venture with Realmark Property Investors Limited Partnership (RPILP) for
the purpose of operating the Gold Key Apartments located in Englewood, Ohio
and owned by RPILP. Under the terms of the original joint venture
agreement, the Partnership contributed $497,912 and RPILP contributed the
property net of the outstanding mortgage.
On March 1, 1993 the Partnership contributed an additional $125,239, in the
process increasing its ownership percentage in the joint venture. The joint
venture agreement had provided that any income, loss, gain, cash flow or
sale proceeds be allocated 68% to RPILP and 32% to the Partnership. The
additional 1993 capital contribution changed the allocation to 60% and 40%,
respectively.
Due to the general partner's active relationship with each venturer, the
Partnership accounts for its interest on the equity method. The equity
ownership has been determined based upon the cash paid into the general
partner's estimate of the fair market value of the apartment complex and
other assets at the date of inception.
A summary of the assets, liabilities and partners' capital (deficiency) of
the joint venture as of June 30, 1996 and December 31, 1995 and the results
of its operations for the six months ended June 30, 1996 and 1995 is as
follows:
-16-
<PAGE>
GOLD KEY APARTMENTS JOINT VENTURE
BALANCE SHEETS
June 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Property, at cost:
Land and land improvements $ 367,500 $ 367,500
Building 2,404,785 2,404,785
Building equipment 12,141 12,141
----------- -----------
2,784,426 2,784,426
Less accumulated depreciation 1,591,850 1,531,705
----------- -----------
Property, net 1,192,576 1,252,721
Cash -- 28,101
Escrow deposits 297,791 277,523
Other assets 854,824 797,919
----------- -----------
Total Assets $ 2,345,191 $ 2,356,264
=========== ===========
LIABILITIES AND PARTNERS' (DEFICIT)
- -----------------------------------
Liabilities:
Cash overdraft $ 213,402 $ --
Mortgages payable 2,939,184 2,947,711
Accounts payable and accrued expenses 592,924 702,735
Accrued interest 22,044 22,108
Security deposits and prepaid rent 49,665 42,710
----------- -----------
Total Liabilities 3,817,219 3,715,264
----------- -----------
Partners' Capital (Deficit):
The Partnership 348,606 393,817
RPILP (1,820,634) (1,752,817)
----------- -----------
Total Partners' (Deficit) (1,472,028) (1,359,000)
----------- -----------
Total Liabilities and Partners' (Deficit) $ 2,345,191 $ 2,356,264
=========== ===========
</TABLE>
-17
<PAGE>
GOLD KEY APARTMENTS JOINT VENTURE
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1996 and 1995
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
Income:
Rental $ 343,689 $ 355,340
Interest and other income 19,854 22,677
--------- ---------
Total income 363,543 378,017
--------- ---------
Expenses:
Property operations 161,228 203,996
Interest 153,064 133,220
Depreciation and amortization 63,015 61,402
Administrative 99,264 79,376
--------- ---------
Total expenses 476,571 477,994
--------- ---------
Net loss $(113,028) $ (99,977)
========= =========
Allocation of net loss:
The Partnership $ (45,211) $ (39,991)
RPILP (67,817) (59,986)
--------- ---------
$(113,028) $ (99,977)
========= =========
-18-
<PAGE>
INVESTMENT IN JOINT VENTURES (CONTINUED)
A reconciliation of the Partnership's investment in the joint venture is as
follows:
1996 1995
---- ----
Investment in joint venture, January 1 $ 486,272 $ 582,605
Allocation of net loss (45,211) (39,991)
---------- ----------
Investment in joint venture, June 30 $ 441,061 $ 542,614
========== ==========
On August 20, 1992 the Partnership entered into a joint venture agreement
for the purpose of operating Research Triangle Industrial Park West, an
office/warehouse facility located in Durham, North Carolina. The original
joint venture agreement to develop and operate the property created between
Realmark Property Investors Limited Partnership II (RPILP II) and Adaron
Group (Adaron) was dissolved, and the Partnership acquired Adaron's
interest in the joint venture. In the transaction, the Partnership paid
$575,459 to Adaron and acquired all rights previously held by Adaron. The
agreement provides for 50% of any income or loss to be allocated to both
the Partnership and RPILP II.
A summary of the assets, liabilities and equity of the joint venture as of
June 30, 1996 and December 31, 1995 and the results of its operations for
the six months ended June 30, 1996 and 1995 is as follows:
-19-
<PAGE>
RESEARCH TRIANGLE INDUSTRIAL PARK JOINT VENTURES
BALANCE SHEETS
June 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Cash and cash equivalents $ 192,576 $ 92,150
Property, net of accumulated depreciation 2,330,747 2,439,455
Accounts receivable - affiliates 321,073 322,212
Other assets 430,708 461,237
----------- -----------
Total Assets $ 3,275,104 $ 3,315,054
=========== ===========
LIABILITIES AND PARTNERS' (DEFICIT)
- -----------------------------------
Liabilities:
Notes payable $ 5,054,838 $ 5,073,225
Accounts payable and accrued expenses 189,649 169,665
----------- -----------
Total Liabilities 5,244,487 5,242,890
----------- -----------
Partners' (Deficit):
General partners (885,277) (864,503)
Other investors (1,084,107) (1,063,333)
----------- -----------
Total Partners' (Deficit) (1,969,383) (1,927,836)
----------- -----------
Total Liabilities and Partners' (Deficit) $ 3,275,104 $ 3,315,054
=========== ===========
</TABLE>
-20-
<PAGE>
RESEARCH TRIANGLE INDUSTRIAL PARK JOINT VENTURES
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1996 and 1995
Six Months Six Months
Ended Ended
June 30, June 30,
1996 1995
---- ----
Income:
Rental $ 242,961 $ 542,901
Interest and other income 140 145
--------- ---------
Total income 243,101 543,046
--------- ---------
Expenses:
Property operations 17,074 51,901
Interest 127,659 221,193
Depreciation and amortization 109,347 253,832
Administrative 30,568 27,944
--------- ---------
Total expenses 284,648 554,870
--------- ---------
Net loss $ (41,547) $ (11,824)
========= =========
Allocation of net loss:
The Partnership $ (20,774) $ (5,912)
RPILP II (20,774) (5,912)
--------- ---------
$ (41,547) $ (11,824)
========= =========
-21-
<PAGE>
INVESTMENT IN JOINT VENTURES (CONTINUED)
A reconciliation of the Partnership's investment in the joint venture is as
follows:
1996 1995
---- ----
Investment in joint venture, January 1 $ 60,907 $ 263,046
Allocation of net loss (20,774) ( 5,912)
----------- -----------
Investment in joint venture, June 30 $ 40,133 $ 257,134
========== ===========
-22-
<PAGE>
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources:
- --------------------------------
The Partnership struggled this quarter with continued low occupancies at The
Commons on Lewis Avenue, Countrybrook Estates and Gold Key Apartments.
Occupancies at these properties varied from 74.1% to 79.5% during the second
quarter of 1996. The other properties in the Partnership continued to enjoy high
occupancies. Operating revenue decreased approximately $131,000 from the same
six month period in the previous year; on a more positive note, total expenses
also decreased almost $174,000. Management is optimistic that the decrease in
expenses will continue as more control is being exercised over expenditures;
with more control over spending now in place, management is focusing on ways to
increase operating revenue.
The Partnership continues to review the possibility of refinancing mortgages in
order to reduce interest rates and increase cash flow.
There were no distributions for the six month periods ended June 30,1996 and
1995. The Partnership has been utilizing its cash to fund capital improvements;
management expects to continue making improvements (e.g. painting, carpet and
appliance replacements, etc.) to the properties in an effort to increase
occupancies.
Results of Operations:
- ----------------------
For the quarter ended June 30, 1996, the Partnership's net loss was $283,267 or
$1.75 per limited partnership unit. Net loss for the quarter ended June 30, 1995
amounted to $147,297 or $0.91 per unit. For the six month period ended June 30,
1996, the net loss was $355,943 or $2.19 per limited partnership unit as
compared to $378,399 or $2.33 per limited partnership unit for the six month
period ended June 30, 1995.
Partnership revenue for the quarter ended June 30, 1996 totaled $905,024, a
decrease of approximately $192,000 from the 1995 amount of $1,096,891. Total
rental revenue dropped almost $171,000, which makes up most of the decrease in
total revenue. The majority of the decrease can be attributed to falling
economic occupancy levels at Countrybrook Estates (formerly West Creeke) and The
Commons on Lewis Avenue and continued vacancies at Gold Key Apartments. Compared
to the prior year, physical occupancy dropped, while rental concessions and
delinquencies increased. Management continues to offer rental concessions and
other promotions in an attempt to increase the occupancies.
-23-
<PAGE>
Results of Operations (continued):
- -----------------------------------
For the quarter ended June 30, 1996, Partnership expenses amounted to
$1,081,961, decreasing by almost $137,000 from the same 1995 quarter amount. For
the six month period ended June 30, 1996, Partnership expenses decreased by
approximately $174,000 from the same period in 1995. A large decrease in
property operations expenditures was responsible for much of the decrease in
expenses. There were significant decreases in payroll and associated costs,
repairs and maintenance and utilities (specifically gas costs), while contracted
services expenses, insurance and real estate taxes remained fairly constant as
compared to the same six month period in the previous year. There was also a
large decrease in affiliate administrative expenses primarily due to decreases
in investor service fees, brokerage fees, and decreased management fees due to
lower occupancy levels as described above.
On a tax basis, the partnership had a net loss of $143,585 or $0.88 per limited
partner unit for the six month period ended June 30, 1996 versus a tax loss of
$220,896 or $1.36 per unit for the six month period ended June 30, 1995.
-24-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
----------------------------------------------------
PART II
-------
OTHER INFORMATION
-----------------
Item 1 - Legal Proceedings
- --------------------------
The Partnership is not party to, nor is it the subject of, any material pending
legal proceedings other than ordinary routine litigation incidental to the
Partnership's business.
Item 2, 3, 4 and 5
- ------------------
Not applicable.
Item 6 - Exhibits and Reports on Form 8-K
- -----------------------------------------
Exhibit 27 - Financial Data Schedule (Electronic filing only)
Reports on Form 8-K - None.
-25-
<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.
REALMARK PROPERTY INVESTORS
LIMITED PARTNERSHIP VI-A
By: /s/Joseph M. Jayson January 2, 1997
------------------------------ ------------------------
Joseph M. Jayson, Date
Individual General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By: REALMARK PROPERTIES, INC.
Corporate General Partner
/s/Joseph M. Jayson January 2, 1997
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/Michael J. Colmerauer January 2, 1997
------------------------------ ------------------------
Michael J. Colmerauer Date
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A FOR
SIX MONTHS ENDED JUNE 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 426,873
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,114,380
<PP&E> 19,762,996
<DEPRECIATION> 4,913,379
<TOTAL-ASSETS> 15,963,967
<CURRENT-LIABILITIES> 1,123,329
<BONDS> 9,647,728
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 15,963,967
<SALES> 0
<TOTAL-REVENUES> 2,024,961
<CGS> 0
<TOTAL-COSTS> 2,314,919
<OTHER-EXPENSES> 65,985
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 441,382
<INCOME-PRETAX> (355,943)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (355,943)
<EPS-PRIMARY> (2.19)
<EPS-DILUTED> 0
</TABLE>
