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
September 30, 1996 33-17579
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
(Exact Name of Registrant as specified in its charter)
Delaware 16-1309988
- -------------------- -----------------------------------
(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 September 30, 1996 the registrant had 78,625.10 units of limited
partnership interest outstanding.
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
----------------------------------------------------
INDEX
-----
PAGE NO.
--------
PART I: FINANCIAL INFORMATION
- ------- ---------------------
Balance Sheets -
September 30, 1996 and December 31, 1995 3
Statements of Operations -
Three Months Ended September 30, 1996 and 1995 4
Statements of Operations -
Nine Months Ended September 30, 1996 and 1995 5
Statements of Cash Flows -
Nine Months Ended September 30, 1996 and 1995 6
Statements of Partners' (Deficit) Capital -
Nine Months Ended September 30, 1996 and 1995 7
Notes to Financial Statements 8 - 20
PART II: MANAGEMENT'S DISCUSSION & ANALYSIS OF
- -------- FINANCIAL CONDITION & RESULTS OF OPERATIONS 21 - 23
-------------------------------------------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
BALANCE SHEETS
September 30, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Property, at cost:
Land $ 746,000 $ 746,000
Buildings and improvements 5,981,594 5,981,594
Furniture, fixtures and equipment 255,652 255,652
----------- -----------
6,983,246 6,983,246
Less accumulated depreciation 1,288,259 1,110,360
----------- -----------
Property, net 5,694,987 5,872,886
Investments in real estate joint ventures 366,448 440,646
Cash 631,740 641,724
Accounts receivable - affiliate 831,854 802,099
Property acquisition costs capitalized -- --
Mortgage costs, net of accumulated amortization
of $176,264 and $86,425 respectively 94,748 133,251
Other assets 173,131 158,147
----------- -----------
Total Assets $ 7,792,908 $ 8,048,753
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Mortgages payable $ 4,244,240 $ 4,263,769
Accounts payable and accrued expenses 365,113 261,611
Security deposits and prepaid rents 91,546 85,166
----------- -----------
Total Liabilities 4,700,899 4,610,546
----------- -----------
Partners' (Deficit) Capital:
General partners (91,768) (81,382)
Limited partners 3,183,777 3,519,589
----------- -----------
Total Partners' Capital 3,092,009 3,438,207
----------- -----------
Total Liabilities and Partners' Capital $ 7,792,908 $ 8,048,753
=========== ===========
</TABLE>
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
STATEMENTS OF OPERATIONS
Three Months Ended September 30, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
September 30, September 30,
1996 1995
---- ----
Income:
Rental $ 384,522 $ 403,293
Interest and other income 37,479 25,114
--------- ---------
Total income 422,001 428,407
--------- ---------
Expenses:
Property operations 268,156 213,077
Interest 125,716 97,836
Depreciation and amortization 72,133 61,793
Administrative:
Paid to affiliates 82,977 116,060
Other 58,133 30,408
--------- ---------
Total expenses 607,115 519,174
--------- ---------
Loss before allocated loss from joint venture (185,114) (90,767)
Allocated loss from joint ventures (47,159) (32,357)
--------- ---------
Net loss $(232,273) $(123,124)
========= =========
Loss per limited partnership unit $ (2.87) $ (1.52)
========= =========
Distributions per limited partnership unit $ -- $ --
========= =========
Weighted average number of
limited partnership units
outstanding 78,625.1 78,625.1
========= =========
See notes to financial statements
-4-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
STATEMENTS OF OPERATIONS
Nine Months Ended September 30, 1996 and 1995
(Unaudited)
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
---- ----
Income:
Rental $ 1,177,898 $ 1,222,450
Interest and other income 97,113 89,573
----------- -----------
Total income 1,275,010 1,312,023
----------- -----------
Expenses:
Property operations 698,271 629,946
Interest 345,583 318,491
Depreciation and amortization 216,401 185,379
Administrative:
Paid to affiliates 122,203 224,501
Other 164,552 107,941
----------- -----------
Total expenses 1,547,010 1,466,258
----------- -----------
Loss before allocated loss from joint venture (272,000) (154,235)
Allocated loss from joint ventures (74,198) (56,412)
----------- -----------
Net loss $ (346,198) $ (210,647)
=========== ===========
Loss per limited partnership unit $ (4.27) $ (2.60)
=========== ===========
Distributions per limited partnership unit $ -- $ 6.86
=========== ===========
Weighted average number of
limited partnership units
outstanding 78,625.1 78,625.1
=========== ===========
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
---- ----
<S> <C> <C>
Cash flow from operating activities:
Net loss $ (346,198) $ (210,647)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 216,401 185,379
Net loss from joint ventures 74,198 56,413
Changes in operating assets and liabilities:
Accounts receivable -- --
Other assets (14,984) (53,372)
Accounts payable and accrued expenses 103,501 132,282
Security deposits and prepaid rent 6,380 (11,818)
----------- -----------
Net cash provided by (used in) operating activities 39,298 98,237
----------- -----------
Cash flow from investing activities:
Accounts receivable - affiliates (29,755) 55,377
Capital expenditures -- --
Contributions to joint ventures, net of distributions -- --
----------- -----------
Net cash (used in) provided by investing activities (29,755) 55,377
----------- -----------
Cash flows from financing activities:
Distributions to partners -- (540,529)
Principal payments on mortgages (19,529) (27,109)
----------- -----------
Net cash (used in) financing activities (19,529) (567,638)
----------- -----------
Increase (decrease) in cash (9,986) (414,024)
Cash - beginning of period 641,726 1,895,609
----------- -----------
Cash - end of period $ 631,740 $ 1,481,585
=========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 344,342 $ 283,733
=========== ===========
</TABLE>
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
STATEMENTS OF PARTNERS' (DEFICIT) CAPITAL
Nine Months Ended September 30, 1996 and 1995
(Unaudited)
General Limited Partners
Partners
Amount Units Amount
------ ----- ------
Balance, January 1, 1995 $ (55,919) 78,625.1 $ 4,842,891
Distribution to partners (1,216) -- (539,313)
Net loss (6,319) -- (204,328)
----------- -------- -----------
Balance, September 30, 1995 $ (63,454) 78,625.1 $ 4,099,250
=========== ======== ===========
Balance, January 1, 1996 $ (81,382) 78,625.1 $ 3,519,589
Distribution to partners -- -- --
Net loss (10,386) -- (335,812)
----------- -------- -----------
Balance, September 30, 1996 $ (91,768) 78,625.1 $ 3,183,777
=========== ======== ===========
See notes to financial statements
-7-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
NOTES TO FINANCIAL STATEMENTS
Nine Months Ended September 30, 1996 and 1995
(Unaudited)
1. GENERAL PARTNERS' DISCLOSURE
In the opinion of the General Partners of Realmark Property Investors
Limited Partnership VI-B, all adjustments necessary for a fair presentation
of the Partnership's financial position, results of operations and changes
in cash flows for the nine month periods ended September 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-B (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 1988, 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 2, 1989. The offering
was concluded on February 28, 1990, at which time 78,625.1 units of limited
partnership interest were sold and outstanding. 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, 1989, 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, 1989 and June 30, 1989, 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. There were no
capitalized acquisition fees at September 30, 1996.
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. 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 September 30, 1996 and 1995.
Income (Loss) per Limited Partnership Unit
------------------------------------------
The income (loss) per limited partnership unit is based on the weighted
average number of limited partnership units outstanding during the period.
4. ACQUISITION AND DISPOSITION OF RENTAL PROPERTY
In June 1991 the Partnership acquired a 192 unit apartment complex (the
Villa) located in Greenville, South Carolina for a purchase price of
$3,165,456, which included $373,493 in acquisition fees.
In June 1991 the Partnership acquired a 144 unit apartment complex (Players
Club) located in Lutz, Florida for a purchase price of $3,070,800, which
included $190,737 in acquisition fees.
-10-
<PAGE>
5. MORTGAGES PAYABLE
In connection with the acquisition of rental property, the Partnership
obtained mortgages as follows:
The Villa
---------
A mortgage with a balance of $1,955,636 and $1,979,005 at September 30,
1996 and 1995, respectively, providing for monthly principal and interest
payments of $17,998, bearing interest at 9.875%. The note matures July
1998.
Players Club
------------
A mortgage with a balance of $2,288,603 and $2,292,599 at September 30,
1996 and 1995, respectively, providing for monthly principal and interest
payments of $20,402, bearing interest at 10%. The note matures July 1998.
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 three
years are as follows:
Year Amount
---- ------
1996 $ 39,890
1997 42,626
1998 4,181,253
-------------
TOTAL $ 4,263,769
============
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 $62,927 and $65,534 for the nine months ended September 30, 1996
and 1995, respectively.
-11-
<PAGE>
RELATED PARTY TRANSACTIONS (CONTINUED)
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 nine months ended September 30, 1996 or 1995.
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.
Accounts receivable - affiliates amounted to $831,854 and $0 at September
30, 1996 and 1995 respectively. As of December 31, 1996, this balance has
been fully reimbursed.
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 $4,752 for the nine months ended September 30,
1996 and 1995.
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.
-12-
<PAGE>
INCOME TAXES (CONTINUED)
The reconciliation of net loss for the nine months ended September 30, 1996
and 1995 as reported in the statements of operations, and as would be
reported for tax purposes, is as follows:
September 30, September 30,
1996 1995
---- ----
Net loss - statement of operations $ ( 346,198) $ (210,647)
Add to (deduct from):
Difference in depreciation ( 210) ( 7,350)
Tax basis adjustments -
Joint Ventures ( 5,760) ( 6,180)
Other non-deductible expenses 42,087 42,002
------------ -----------
Net loss - tax return purposes $ (310,081) $ (182,175)
============ ===========
The reconciliation of Partners' Capital as of September 30, 1996 and
December 31, 1995 as reported in the balance sheet, and as reported for tax
purposes, is as follows:
September 30, December 31,
1996 1995
---- ----
Partners' Capital - balance sheet $ 3,092,009 $ 3,438,207
Add to (deduct from):
Accumulated difference in
depreciation ( 67,026) ( 66,816)
Tax basis adjustment -
Joint Ventures ( 51,001) ( 45,241)
Syndication fees 1,179,381 1,179,381
Other non-deductible expenses 219,298 177,211
------------ ------------
Partners' Capital - tax return purposes $ 4,372,661 $ 4,682,742
============ ============
-13-
<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 RPILP II returned RPILP VI-A's entire capital contribution
and $580,000 of the capital originally invested by the Partnership. The
amended joint venture agreement now provides that any income, loss, gain,
cash flow or sale proceeds be allocated 88.5% to RPILP II and 11.5% to the
Partnership. Prior to the buyout the allocations were 63.14% to RPILP II,
26.82% to the Partnership and 10.04% to the RPILP VI-A. The allocated net
loss of the joint venture has been included in the statements of operations
of the Partnership.
The following financial statements of the joint venture are presented on a
historical-cost basis. The equity ownership was determined based upon the
cash paid into the joint venture by the Partnership as a percentage of the
general partner's estimate of the fair market value of the apartment
complex and other net assets at the date of inception.
A summary of the assets, liabilities and partner's capital of the joint
venture as of September 30, 1996 and December 31, 1995 and the results of
its operations for the nine months ended September 30, 1996 and 1995 is as
follows:
-14-
<PAGE>
FOX HUNT JOINT VENTURE
BALANCE SHEETS
September 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
September 30, December 31
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Cash and cash equivalents $ 224,207 $ 155,903
Property, net of accumulated depreciation 2,856,462 3,016,534
Other assets 1,680,515 1,857,979
----------- -----------
Total Assets $ 4,761,184 $ 5,030,416
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Mortgage payable $ 4,535,369 $ 4,555,682
Accounts payable and accrued expenses 218,320 322,266
Other liabilities 83,936 65,275
----------- -----------
Total Liabilities 4,837,625 4,943,223
----------- -----------
Partners' Capital (76,440) 87,193
----------- -----------
Total Liabilities and Partners' Capital $ 4,761,184 $ 5,030,416
=========== ===========
</TABLE>
-15-
<PAGE>
FOX HUNT JOINT VENTURE
STATEMENTS OF OPERATIONS
Nine Months Ended September 30, 1996 and 1995
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
---- ----
Income:
Rental $ 946,123 $ 1,014,331
Interest and other income 51,087 62,809
----------- -----------
Total income 997,211 1,077,140
----------- -----------
Expenses:
Property operations 532,010 618,029
Depreciation and amortization 166,368 168,717
Interest 306,754 308,857
Administrative 155,712 163,449
----------- -----------
Total expenses 1,160,844 1,259,052
----------- -----------
Net loss $ (163,633) $ (181,912)
=========== ===========
Allocation of net loss:
The Partnership $ (18,818) $ (20,920)
Other Joint Venturer (RPILP II) (144,816) (160,992)
----------- -----------
$ (163,633) $ (181,912)
=========== ===========
-16-
<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 $ 386,061 $ 417,159
Allocation of net loss (18,818) (20,920)
----------- ----------
Investment in joint venture, September 30 $ 367,243 $ 396,239
=========== ==========
On August 30, 1992 the Partnership entered into a joint venture agreement
with Realmark Property Investors Limited Partnership IV (RPILP IV) for the
purpose of operating the Lakeview Apartment complex located in Milwaukee,
Wisconsin and owned by RPILP IV. Under the terms of the agreement, the
Partnership contributed $175,414 while RPILP IV contributed the property
net of the outstanding mortgage.
The joint venture agreement provides that any income, loss, cash flow or
sale proceeds be allocated 16.22% to the Partnership and 83.78% to RPILP
IV. The allocated net loss of the joint venture for the nine month period
ended September 30, 1996 has been included in the statement of operations
for the Partnership.
The equity ownership percentage was determined based upon the cash paid
into the joint venture by the Partnership as a percentage of the general
partner's estimate of the fair market value of the apartment complex and
other net assets at the date of inception.
A summary of the assets, liabilities and partners' capital of the joint
venture as of September 30, 1996 and December 31, 1995 and the results of
its operations for the nine months ended September 30, 1996 and 1995 is as
follows:
-17-
<PAGE>
LAKEVIEW JOINT VENTURE
BALANCE SHEETS
September 30, 1996 and December 31, 1995
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Cash and cash equivalents $ -- $ 2,461
Property, net of accumulated depreciation 2,349,195 2,463,639
Other assets 445,484 429,110
----------- -----------
Total Assets $ 2,794,679 $ 2,895,210
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Cash overdraft $ 26,773 $ --
Mortgage payable 2,514,540 2,311,688
Accounts payable and accrued expenses 264,275 279,426
Accounts payable - affiliates 192,525 130,379
Other liabilities 49,696 85,414
----------- -----------
Total Liabilities 3,047,809 2,806,907
----------- -----------
Partners' Capital (Deficit):
The Partnership (795) 54,585
Other joint venturer (252,335) 33,718
----------- -----------
Total Partners' (Deficit) Capital (253,130) 88,303
----------- -----------
Total Liabilities and Partners' (Deficit) Capital $ 2,794,679 $ 2,895,210
=========== ===========
</TABLE>
-18-
<PAGE>
LAKEVIEW JOINT VENTURE
STATEMENTS OF OPERATIONS
Nine Months Ended September 30, 1996 and 1995
Nine Months Nine Months
Ended Ended
September 30, September 30,
1996 1995
---- ----
Income:
Rental $ 493,523 $ 655,265
Interest and other income 34,307 18,498
--------- ---------
Total income 527,831 673,763
--------- ---------
Expenses:
Property operations 442,593 373,575
Depreciation and amortization 124,290 147,444
Interest 176,390 207,006
Administrative 125,992 164,554
--------- ---------
Total expenses 869,264 892,579
--------- ---------
Net loss $(341,433) $(218,816)
========= =========
Allocation of net loss:
The Partnership $ (55,380) $ (35,492)
Other Joint Venturer (286,053) (183,324)
--------- ---------
$(341,433) $(218,816)
========= =========
-19-
<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 $ 54,585 $ 97,210
Allocation of net loss (55,380) (35,492)
--------- ---------
Investment in joint venture, September 30 $ ( 795) $ 61,718
========= =========
-20-
<PAGE>
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources
- -------------------------------
Financially, the Partnership did not have a good quarter. Revenue from rentals
was lower than was reported in both the first and second quarters of 1996.
Management is reacting to this situation by dealing with the two primary causes:
increases in vacancies and higher delinquencies. Concessions continue to be
offered in hopes of attracting new tenants. In addition, advertising has been
increased in local apartment guides to attract more traffic. The staff at all
properties in the Partnership has been instructed to concentrate heavily on
resident retention and collections. Tighter credit policies are being
implemented in an effort to avoid continued delinquencies in the coming months.
Plans for improvements to the properties are well underway as new carpets,
appliances and fresh paint are regularly being added. Management has also made
several personnel changes at the properties in favor of more experienced
managers and leasing agents. Although there is a heavy emphasis being put on
increasing revenues, expenses continue to be closely monitored as well.
Due to the higher than anticipated loss incurred in the third quarter of 1996,
no distributions to partners were made. The General Partner does anticipate
making distributions as soon as the properties begin generating more cash flow.
As was mentioned in previous quarters' reports, the General Partner has a signed
contract for the sale of the Foxhunt Apartments. A closing date has not been
set, but the purchaser continues to perform due diligence and regular
inspections.
Result of Operations
- --------------------
For the quarter ended September 30, 1996, the Partnership's net loss was
$232,273 or $2.87 per limited partnership unit. Net loss for the quarter ended
September 30, 1995 amounted to $123,124 or $1.52 per unit. For the nine month
period ended September 30, 1996, the net loss was $346,198 or $4.27 per limited
partnership unit as compared to $210,647 or $2.60 per limited partnership unit
for the nine month period ended September 30, 1995.
-21-
<PAGE>
Results of Operations (continued):
- -----------------------------------
Partnership revenue for the quarter ended September 30, 1996 totaled $422,001, a
decrease of $6,406 from the 1995 amount of $428,407. Total rental revenue during
this quarter dropped approximately $18,700, while other income increased just
over $12,000. For the first nine months of 1996, rental revenue dropped by
almost $45,000; other income increased by $7,500. The primary reason for the
decrease in rental revenue continues to be a decline in economic occupancy; for
example, occupancy at Players Club averaged 89.3% for the third quarter of 1996,
which is a decrease of over 7% from the previous quarter average. Occupancy at
The Villas remained fairly constant between the second and third quarters of
1996. The increase in other income can be attributed to additional income from
laundry machines and larger termination fees charged. Management continues to
offer rental concessions and other promotions in an attempt to increase the
occupancies.
For the quarter ended September 30, 1996, Partnership expenses amounted to
$607,115 which is an increase of almost $88,000 over the same quarter in 1995.
For the nine month period ended September 30, 1996, Partnership expenses also
increased fairly substantially; the increase amounted to just under $81,000.
During this quarter of 1996, there was an increase in property operations
expenditures of approximately $55,000. As management implements its plan to
continually maintain and upgrade the properties, increases in repairs and
maintenance expenses and contracted services, such as landscaping, are being
seen; this trend is expected to continue, but is being controlled as contracts
with national paint and carpet companies are being used to bring down the cost
of such replacements and improvements. Administrative expenses continued the
trend that has been prevalent for this category of expenses thus far in 1996.
Such costs decreased for the first nine months of 1996 by just over $45,000. A
large part of the decrease may be attributed to a decrease in management fees
which have resulted from lower occupancies. Also responsible for the decrease is
a drop in investor services and brokerage fees and portfolio management and
accounting expenses.
For the nine month period ended September 30, 1996, the Foxhunt Joint Venture
generated a loss of $163,633 as compared to $181,912 for the same period in
1995. This property continues to suffer from low occupancy and difficulty in
collections. Although an improvement can be seen from last year to this year,
management feels that with some extra effort in marketing the property,
occupancy should increase. Efforts to increase the appeal of the property
include offering rental concessions, additional emphasis on advertising
campaigns, and implementation of a plan for capital improvements such as new
carpeting, appliances and improvements to landscaping.
- 22 -
<PAGE>
Results of Operations (continued):
- -----------------------------------
The Lakeview Joint Venture had a net loss of $341,433 for the nine month period
ended September 30, 1996. For the nine month period ended September 30, 1995,
this joint venture generated a net loss of $218,816. The Partnership was
allocated $55,380 and $35,492 of the loss for the nine month periods ended
September 30, 1996 and 1995, respectively. Lakeview continued to struggle with
exceedingly low occupancy during the third quarter of 1996, although management
believes based upon the number of pending rental applications that there will be
an upward turn in this trend during the final quarter of 1996.
-23-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
----------------------------------------------------
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.
-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-B
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-B FOR
NINE MONTHS ENDED SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 631,740
<SECURITIES> 0
<RECEIVABLES> 831,854
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,097,921
<PP&E> 6,983,246
<DEPRECIATION> 1,288,259
<TOTAL-ASSETS> 7,792,908
<CURRENT-LIABILITIES> 456,659
<BONDS> 4,244,240
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 7,792,908
<SALES> 0
<TOTAL-REVENUES> 1,275,010
<CGS> 0
<TOTAL-COSTS> 1,547,010
<OTHER-EXPENSES> 74,198
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 345,583
<INCOME-PRETAX> (346,198)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (346,198)
<EPS-PRIMARY> (4.27)
<EPS-DILUTED> 0
</TABLE>
