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
March 31, 1998 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 March 31, 1998 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 -
March 31, 1998 and December 31, 1997 3
Statements of Operations -
Three Months Ended March 31, 1998 and 1997 4
Statements of Cash Flows -
Three Months Ended March 31, 1998 and 1997 5
Statements of Partners' (Deficit) Capital -
Three Months Ended March 31, 1998 and 1997 6
Notes to Financial Statements 7 - 21
PART II: MANAGEMENT'S DISCUSSION & ANALYSIS OF
FINANCIAL CONDITION & RESULTS OF OPERATIONS 22 - 23
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
----------------------------------------------------
BALANCE SHEETS
--------------
March 31, 1998 and December 31, 1997
------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---- ----
ASSETS
<S> <C> <C>
Property, at cost:
Land and land improvements $ 2,159,398 $ 2,159,398
Buildings 17,127,902 17,113,933
Furniture and fixtures 1,101,500 1,101,500
---------------- -----------------
20,388,800 20,374,831
Less accumulated depreciation 6,041,359 5,831,582
---------------- -----------------
Property, net 14,347,441 14,543,249
Investments in real estate joint ventures 202,148 449,640
Accounts receivable 42,258 31,720
Escrow deposits 606,148 568,895
Mortgage costs, net of accumulated amortization
of $242,359 and $268,186 526,662 562,514
Other assets 56,643 38,211
---------------- -----------------
Total Assets $ 15,781,300 $ 16,194,229
================ =================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Cash overdraft $ 158,036 $ 222,301
Mortgages payable 11,445,388 11,468,648
Accounts payable and accrued expenses 792,702 872,561
Accounts payable - affiliates 135,557 37,962
Security deposits and prepaid rents 245,059 238,119
---------------- -----------------
Total Liabilities 12,776,742 12,839,591
---------------- -----------------
Partners' (Deficit) Capital:
General partners (294,102) (283,600)
Limited partners 3,298,660 3,638,238
---------------- -----------------
Total Partners' Capital 3,004,558 3,354,638
---------------- -----------------
Total Liabilities and Partners' Capital $ 15,781,300 $ 16,194,229
================ =================
</TABLE>
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
----------------------------------------------------
STATEMENTS OF OPERATIONS
------------------------
Three Months Ended March 31, 1998 and 1997
------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1998 1997
---- ----
<S> <C> <C>
Income:
Rental $ 953,366 $ 884,889
Interest and other income 54,734 89,036
---------------- -----------------
Total income 1,008,100 973,925
---------------- -----------------
Expenses:
Property operations 704,122 536,992
Interest 239,327 230,091
Depreciation and amortization 209,777 217,878
Administrative:
Paid to affiliates 80,584 93,350
Other 126,879 150,335
---------------- -----------------
Total expenses 1,360,689 1,228,646
---------------- -----------------
Loss before allocated loss from joint ventures (352,589) (254,721)
Allocated loss from joint ventures 2,508 (23,989)
---------------- -----------------
Net loss $ (350,081) $ (278,710)
================ =================
Loss per limited partnership unit $ (2.16) $ (1.72)
================ =================
Distributions per limited partnership unit $ - $ -
================ =================
Weighted average number of
limited partnership units
outstanding 157,378 157,378
================ =================
</TABLE>
See notes to financial statements
-4-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
----------------------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
Three Months Ended March 31, 1998 and 1997
------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1998 1997
---- ----
<S> <C> <C>
Cash flow from operating activities:
Net loss (350,081) (278,710)
Adjustments to reconcile net loss to net cash
(used in) provided by operating activities:
Depreciation and amortization 209,777 217,878
Net loss from joint ventures (2,508) 23,989
Changes in operating assets and liabilities:
Accounts receivable (10,538) -
Prepaid commissions - -
Other assets (18,431) 87,700
Accounts payable and accrued expenses (79,859) 140,867
Security deposits and prepaid rent 6,940 25,053
---------------- -----------------
Net cash (used in) provided by operating activities (244,700) 216,777
---------------- -----------------
Cash flow from investing activities:
Escrow deposits (37,253) -
Accounts receivable - affiliates - -
Accounts payable - affiliates 97,595 35,529
Capital expenditures (13,969) (9,635)
Contributions to joint ventures, net of distributions - -
---------------- -----------------
Net cash (used in) investing activities 46,373 25,894
---------------- -----------------
Cash flows from financing activities:
Cash overdraft 185,735 237,513
Distributions to partners - -
Principal payments on mortgages (23,260) (17,010)
Mortgage costs 35,852 (15,000)
---------------- -----------------
Net cash provided by (used in) financing activities 198,327 205,503
---------------- -----------------
Increase (decrease) in cash - 448,174
Cash - beginning of period - -
---------------- -----------------
Cash - end of period $ - 448,174
================ =================
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 239,327 $ 230,091
================ =================
</TABLE>
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
----------------------------------------------------
STATEMENTS OF PARTNERS' (DEFICIT) CAPITAL
-----------------------------------------
Three Months Ended March 31, 1998 and 1997
------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
General Limited Partners
Partners
Amount Units Amount
------ ----- ------
<S> <C> <C> <C>
Balance, January 1, 1997 $ (264,898) 157,377.9 $ 5,784,165
Net loss
(7,676) - (270,349)
------------------ --------------- -----------------
Balance, March 31, 1997 $ (272,574) 157,377.9 $ 5,513,816
================== =============== =================
Balance, January 1, 1998 $ (283,600) 157,377.9 $ 3,638,238
Net loss
(10,502) - (339,578)
------------------ --------------- -----------------
Balance, March 31, 1998 $ (294,102) 157,377.9 $ 3,298,660
================== =============== =================
</TABLE>
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-A
NOTES TO FINANCIAL STATEMENTS
Three Months Ended March 31, 1998 and 1997
(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 three month periods ended
March 31, 1998 and 1997, 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.
-7-
<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
------------------------------------------
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
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Cash
----
For purposes of reporting cash flows, cash includes the following items:
cash on hand; cash in checking; and money market savings.
-8-
<PAGE>
Property and Depreciation
-------------------------
Depreciation is provided using the straight-line method over the estimated
useful lives of the respective assets and totaled $618,347, $783,559,
$829,055 for the years ended December 31, 1997, 1996, and 1995,
respectively. Generally, buildings and improvements are depreciated over
25 years, and the furniture and fixtures are depreciated over 5 years.
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.
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 March 31, 1998 and 1997.
-9-
<PAGE>
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.
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
(Countrybrook 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.
-10-
<PAGE>
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.
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 $3,415,000 and $3,943,336 at March 31, 1998
and 1997, respectively, bearing interest at 9.1875%, due July 1999. The
mortgage was refinanced into the new mortgage. No significant gain or loss
on refinancing occurred. The mortgage is secured by the Countrybrook
Estates complex.
Inducon - Columbia
The outstanding mortgage payable balance at March 31, 1998, was $2,188,530
with monthly payments of $16,787 including interest at 7.867%. The
maturity date of the mortgage is October 2022. The mortgage is secured by
the Inducon-Columbia office/warehouse building.
The construction loan outstanding at March 31, 1997, amounted to
$1,776,081, was refinanced into the mortgage described above during 1997.
No significant gain or loss on refinancing occurred.
-11-
<PAGE>
MORTGAGES AND NOTES PAYABLE (CONTINUED)
---------------------------------------
Stonegate
---------
The outstanding mortgage payable at March 31, 1998 was $2,633,617, due
July 2027 with monthly paymnets of $20,207 including interest at 8.43%.
The mortgage outstanding at March 31, 1997 of $1,958,116 was refinanced
into the mortgage described above during 1997. No significant gain of loss
on the refinancing occured.
Beaver Creek
------------
The outstanding mortgage payable at March 31,1998 waas $1,346,250 due July
2027 with monthly payments of $7,864 including interest of 8.3%. There was
no mortgage outstanding at March 31, 1997.
The Commons on Lewis Avenue
---------------------------
A mortgage with a balance of $1,860,731 and $1,878,618 at March 31, 1998
and 1997 obtained at the time of purchase, providing for monthly interest
only payments ranging from 8% to 12% annually. Principal and interest
payments are to begin 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
1998 $ 220,676
1999 3,634,473
2000 221,719
2001 1,989,071
2002 198,196
Thereafter 5,181,253
------------
TOTAL $11,445,388
------------
-12-
<PAGE>
6. FAIR VALUE OF FINANCIAL INSTRUMENTS
-----------------------------------
Statement of Finacial Accounting Standards No. 107 requires disclosure
about fair value of certain financial instruments. The fair value of cash,
accounts receivable, accounts receivable affiliates, accounts payable -
affiliates, accounts payable, accrued expenses and deposit liabilities
approximate the carrying value due to the short-term nature of these
instruments.
7. 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 $53,563 for the three months ended March
31, 1998.
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 three months ended March 31, 1998 or 1997.
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 March 31, 1998 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.
-13-
<PAGE>
RELATED PARTY TRANSACTIONS (CONTINUED)
--------------------------------------
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 $2640 for both the three months ended March
31, 1998 and 1997, respectively.
8. 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.
The reconciliation of net loss for the three months ended March 31, 1998
and 1997 as reported in the statements of operations, and as would be
reported for tax purposes, is as follows:
March 31, March 31,
1998 1997
---- ----
Net loss - statement of operations $(350,081) $(278,710)
Add to (deduct from):
Difference in depreciation 20,254 27,364
Tax basis adjustments -
Joint Ventures 2,509 39,034
Allowance for doubtful accounts 31,720 30,101
--------- ---------
Net loss - tax return purposes $(295,598) $(182,211)
========= =========
-14-
<PAGE>
INCOME TAXES (CONTINUED)
------------------------
The reconciliation of Partners' Capital as of March 31, 1998 and December
31, 1997 as reported in the balance sheet, and as reported for tax
purposes, is as follows:
March 31, December 31,
1998 1997
---- ----
Partners' Capital - balance sheet $3,004,558 $3,354,638
Add to (deduct from):
Accumulated difference in
depreciation 303,181 282,927
Tax basis adjustment -
Joint Ventures 907,058 909,567
Syndication fees 2,312,863 2,312,863
Other non-deductible expenses 449,638 421,308
---------- ----------
Partners' Capital - tax return purposes $6,977,298 $7,281,303
========== ==========
9. 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.
-15-
<PAGE>
INVESTMENT IN JOINT VENTURES (CONTINUED)
----------------------------------------
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 Carriage House of Englewood (formerly 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 March 31, 1998 and December 31, 1997 and the
results of its operations for the three months ended March 31, 1998 and
1997 is as follows:
A reconciliation of the Partnership's investment in the joint venture is
as follows:
1998 1997
---- ----
Investment in joint venture, January 1 $ 362,134 $ 274,180
Allocation of net loss (44,956) (22,378)
--------- ---------
Investment in joint venture, March 31 $ 317,178 $ 251,802
========= =========
-16-
<PAGE>
CARRIAGE HOUSE OF ENGLEWOOD JOINT VENTURE
-----------------------------------------
BALANCE SHEETS
--------------
March 31, 1998 and 1997
-----------------------
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
ASSETS ---- ----
- ------
<S> <C> <C>
Property, at cost:
Land and land improvements $ 367,500 $ 367,500
Building 2,627,133 2,627,133
Building equipment 12,141 12,141
------------------ -----------------
3,006,774 3,006,774
Less accumulated depreciation 1,753,955 1,753,995
------------------ -----------------
Property, net 1,252,819 1,252,779
Escrow deposits 59,662 155,194
Other assets 161,939 183,526
------------------ -----------------
Total Assets $ 1,474,420 $ 1,591,499
================== =================
LIABILITIES AND PARTNERS' (DEFICIT)
- ----------------------------------
Liabilities:
Cash overdraft $ 299,250 $ 256,695
Mortgages payable 2,906,142 2,914,486
Accounts payable and accrued expenses 209,687 211,304
Accounts payable - affiliates - 12,553
Accrued interest 21,796 65,539
Security deposits and prepaid rent 67,025 42,969
------------------ -----------------
Total Liabilities 3,503,900 3,503,546
------------------ -----------------
Partners' Capital (Deficit):
The Partnership 21,194 172,598
RPILP (2,050,674) (2,084,645)
------------------ -----------------
Total Partners' (Deficit) (2,029,480) (1,912,047)
------------------ -----------------
Total Liabilities and Partners' (Deficit) $ 1,474,420 $ 1,591,499
================== =================
</TABLE>
-17-
<PAGE>
CARRIAGE HOUSE OF ENGLEWOOD JOINT VENTURE
-----------------------------------------
STATEMENTS OF OPERATIONS
------------------------
Three Months Ended March 31, 1998 and 1997
------------------------------------------
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1998 1997
---- ----
<S> <C> <C>
Income:
Rental $ 144,562 $ 157,082
Interest and other income 7,513 10,420
------------------ -----------------
Total income 152,075 167,502
------------------ -----------------
Expenses:
Property operations 172,011 85,201
Interest 65,426 72,186
Depreciation and amortization 1,436 31,605
Administrative 25,593 34,456
------------------ -----------------
Total expenses 264,466 223,448
------------------ -----------------
Net loss $ (112,391) $ (55,946)
================== =================
Allocation of net loss:
The Partnership $ (44,956) $ (22,378)
RPILP
(67,435) (33,568)
------------------ -----------------
$ (112,391) $ (55,946)
================== =================
</TABLE>
-18-
<PAGE>
RESEARCH TRIANGLE INDUSTRIAL PARK JOINT VENTURES
------------------------------------------------
BALANCE SHEETS
--------------
March 31, 1998 and March 31, 1997
---------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
ASSETS ---- ----
- ------
<S> <C> <C>
Cash and cash equivalents $ 1,161,489 $ 1,127,231
Property, net of accumulated depreciation 1,768,382 1,798,722
Accounts receivable - other 5,146 54,774
Other assets 724,470 593,205
------------------ -----------------
Total Assets $ 3,659,487 $ 3,573,932
================== =================
LIABILITIES AND PARTNERS' (DEFICIT)
- ----------------------------------
Liabilities:
Notes payable $ 5,544,615 $ 5,558,723
Accounts payable and accrued expenses 92,359 90,071
Accounts payable - affiliates 885 (1,560)
------------------ -----------------
Total Liabilities 5,637,859 5,647,234
------------------ -----------------
Partners' (Deficit):
General partners (1,084,978) (1,132,442)
Other investors (893,394) (940,860)
------------------ -----------------
Total Partners' (Deficit) (1,978,372) (2,073,302)
------------------ -----------------
Total Liabilities and Partners' (Deficit) $ 3,659,487 $ 3,573,932
================== =================
</TABLE>
-19-
<PAGE>
RESEARCH TRIANGLE INDUSTRIAL PARK JOINT VENTURES
------------------------------------------------
STATEMENTS OF OPERATIONS
------------------------
Three Months Ended March 31, 1997 and 1996
------------------------------------------
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1998 1997
---- ----
<S> <C> <C>
Income:
Rental $ 289,403 $ 246,104
Interest and other income 218 1,448
------------------ -----------------
Total income 289,621 247,552
------------------ -----------------
Expenses:
Property operations 24,704 12,436
Interest 115,521 107,553
Depreciation and amortization 37,881 113,867
Administrative 16,585 16,917
------------------ -----------------
Total expenses 194,691 250,773
------------------ -----------------
Net loss $ 94,930 $ (3,221)
================== =================
Allocation of net loss:
The Partnership $ 47,465 $ (1,611)
RPILP II
47,465 (1,610)
------------------ -----------------
$ 94,930 $ (3,221)
================== =================
</TABLE>
-20-
<PAGE>
INVESTMENT IN JOINT VENTURES (CONTINUED)
----------------------------------------
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
March 31, 1998 and December 31, 1997 and the results of its operations for
the three months ended March 31, 1998 and 1997 is as follows:
A reconciliation of the Partnership's investment in the joint venture is
as follows:
1998 1997
---- ----
Investment in joint venture, January 1 $170,220 $ 6,155
Allocation of net loss 47,465 (1,611)
-------- --------
Investment in joint venture, March 31 $217,685 $ 4,544
======== ========
-21-
<PAGE>
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources:
--------------------------------
The Partnership experienced a poor quarter from a cash flow point of view; the
cash flow deficiency from operations amounted to just over $250,000. Management
is concentrating on the implementation of controls over expenses, through closer
monitoring of payroll and other operating expenses, to balance the loss of
revenues which resulted in the first quarter of 1998 over that which management
had expected. More aggressive marketing campaigns are being put in place and
reinforced through routine/regular charting of which ads are successful in
attracting renters and through which sources the ads are bringing in the
traffic. Management also continues to offer attractive incentives to lease
properties whose occupancies fall below 90%. It is hoped that the combination of
strategies being followed by management will lead to the generation of higher
revenues, thus improving the cash flow of the Partnership.
There were no distributions made during the three month periods ended March 31,
1998 and 1997. The Partnership does not anticipate resuming distributions until
sufficient cash flow is generated to cover the Partnership's liabilities and set
up reserves for construction work which is necessary at several of the
residential complexes.
Results of Operations:
- ----------------------
Partnership operations for the three month period ended March 31, 1998 resulted
in a net loss of $350,081 or $2.16 per limited partnership unit versus a net
loss of $278,710 or $1.72 per limited partnership unit for the quarter ended
March 31, 1997.
The tax basis loss for the quarter ended March 31, 1998 amounted to $201,390 or
$1.28 per limited partnership unit. The tax loss for the three month period
ended March 31, 1997 totaled $182,211 or $1.12 per limited partnership unit.
Revenue for the three month period ended March 31, 1998 amounted to $1,008,100,
increasing approximately $34,175 from the quarter ended March 31, 1997. An
increase in rental revenue was solely responsible for the increase in total
revenue when comparing the quarters ended March 31, 1998 and 1997. Interest and
other income decreased between the two quarters. Higher occupancy at
Countrybrook Estates, Beaver Creek, and The Commons accounted for much of the
increase in rental revenue; also responsible for the increase are substantially
lower concessions and discounts offered as a means of increasing occupancy in
the coming months.
-22-
<PAGE>
Results of Operations (continued):
- -----------------------------------
For the three month period ended March 31, 1998, total expenses were $1,360,689,
an increase of just over $132,043 from the same quarter in 1997. Property
operations expenditures increased approximately $167,130 between the two periods
due to increased repairs and maintenance costs, contracted services (an almost
35% increase can be noted due to higher costs associated with outside services
responsible for landscaping, painting, carpeting, etc.), and utilities.
Management has been concentrating heavily on upgrading and better maintaining of
the complexes as cash flow permits in an effort to increase occupancy, as well
as to maintain current tenants. Interest expense remained relatively stable
between the quarters ended March 31, 1998 and 1997. Total administrative charges
decreased just over $36,222 as legal fees and advertising expenses decreased.
Management is confident that overall Partnership revenue will increase in future
periods. Occupancy throughout the Partnership, particularly at Beaver Creek,
Stonegate and Countrybrook Estates, should begin to escalate; the high occupancy
level at Inducon-Columbia is expected to remain constant in the coming months.
Total expenses, meanwhile, are anticipated to stay slightly ahead of previous
levels as the expected occupancy increases should ultimately lead to an increase
in several variable expenses, and as the repairs and maintenance work scheduled
is completed.
For the three month period ended March 31, 1998, the Gold Key Joint Venture
generated a net loss of $112,391, an increase from the net loss of $55,946 for
the three month period ended March 31, 1997. Pursuant to the terms of the joint
venture agreement, the Partnership was allocated $44,956 of the loss in 1998 and
$22,378 of the loss in 1997.
The Research Triangle Industrial Park Joint Venture had a net gain of $94,930
for the three month period ended March 31, 1998 with $47,465 of the gain
allocated to the Partnership. For the three month period ended march 31, 1997,
the Research Triangle Office Complex continues to enjoy high occupancy and
positive cash flow.
-23-
<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
- -----------------------------------------
None.
-24-
<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 May 20, 1998
------------------------------ ------------------------
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 May 20, 1998
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/ Michael J. Colmerauer May 20, 1998
------------------------------ ------------------------
Michael J. Colmerauer Date
Secretary
-25-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> MAR-31-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 42,258
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 705,049
<PP&E> 20,388,800
<DEPRECIATION> 6,041,359
<TOTAL-ASSETS> 15,781,300
<CURRENT-LIABILITIES> 1,331,804
<BONDS> 11,445,388
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 15,781,300
<SALES> 0
<TOTAL-REVENUES> 1,008,100
<CGS> 0
<TOTAL-COSTS> 1,360,689
<OTHER-EXPENSES> 2,508
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 239,327
<INCOME-PRETAX> (350,081)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (350,081)
<EPS-PRIMARY> (2.16)
<EPS-DILUTED> 0
</TABLE>
