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 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 June 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 -
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 - 20
PART II: MANAGEMENT'S DISCUSSION & ANALYSIS OF
- -------- FINANCIAL CONDITION & RESULTS OF OPERATIONS 21 - 22
-------------------------------------------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
BALANCE SHEETS
June 30, 1996 and December 31, 1995
(Unaudited)
June 30 December 31,
1996 1995
---- ----
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 1,228,959 1,110,360
----------- -----------
Property, net 5,754,286 5,872,886
Investments in real estate joint ventures 413,607 440,646
Cash 690,420 641,724
Accounts receivable - affiliate 845,180 802,099
Property acquisition costs capitalized -- --
Mortgage costs, net of accumulated amortization
of $163,430 and $86,425 respectively 107,582 133,251
Other assets 153,520 158,147
----------- -----------
Total Assets $ 7,964,594 $ 8,048,753
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Mortgages payable $ 4,251,676 $ 4,263,769
Accounts payable and accrued expenses 262,471 261,611
Security deposits and prepaid rents 126,165 85,166
----------- -----------
Total Liabilities 4,640,312 4,610,546
----------- -----------
Partners' (Deficit) Capital:
General partners (84,800) (81,382)
Limited partners 3,409,082 3,519,589
----------- -----------
Total Partners' Capital 3,324,282 3,438,207
----------- -----------
Total Liabilities and Partners' Capital $ 7,964,594 $ 8,048,753
=========== ===========
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
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 $ 398,615 $ 412,816
Interest and other income 29,314 28,763
--------- ---------
Total income 427,929 441,579
--------- ---------
Expenses:
Property operations 191,081 205,586
Interest 111,317 110,267
Depreciation and amortization 72,134 61,795
Administrative:
Paid to affiliates 19,979 40,271
Other 54,830 31,131
--------- ---------
Total expenses 449,341 449,050
--------- ---------
Loss before allocated loss from joint venture (21,412) (7,471)
Allocated loss from joint ventures (21,278) (10,426)
--------- ---------
Net loss $ (42,690) $ (17,897)
========= =========
Loss per limited partnership unit $ (0.53) $ (0.22)
========= =========
Distributions per limited partnership unit $ -- $ 6.36
========= =========
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
Six Months Ended June 30, 1996 and 1995
(Unaudited)
Six Months Six Months
Ended Ended
June 30 June 30
1996 1995
---- ----
Income:
Rental $ 793,376 $ 819,157
Interest and other income 59,633 64,459
--------- ---------
Total income 853,009 883,616
--------- ---------
Expenses:
Property operations 430,115 416,869
Interest 219,867 220,655
Depreciation and amortization 144,268 123,586
Administrative:
Paid to affiliates 39,226 108,441
Other 106,419 77,533
--------- ---------
Total expenses 939,895 947,084
--------- ---------
Loss before allocated loss from joint venture (86,886) (63,468)
Allocated loss from joint ventures (27,039) (24,055)
--------- ---------
Net loss $(113,925) $ (87,523)
========= =========
Loss per limited partnership unit $ (1.41) $ (1.08)
========= =========
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
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 $ (113,925) $ (87,523)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 144,268 123,586
Net loss from joint ventures 27,039 24,055
Changes in operating assets and liabilities:
Accounts receivable -- (7,731)
Other assets 4,627 (100,763)
Accounts payable and accrued expenses 860 26,989
Security deposits and prepaid rent 40,999 3,285
----------- -----------
Net cash provided by (used in) operating activities 103,868 (18,102)
----------- -----------
Cash flow from investing activities:
Accounts receivable - affiliates (43,081) 55,377
Capital expenditures -- --
Contributions to joint ventures, net of distributions -- --
----------- -----------
Net cash (used in) provided by investing activities (43,081) 55,377
----------- -----------
Cash flows from financing activities:
Distributions to partners -- (540,529)
Principal payments on mortgages (12,093) (9,745)
----------- -----------
Net cash (used in) financing activities (12,093) (550,274)
----------- -----------
Increase (decrease) in cash 48,694 (512,999)
Cash - beginning of period 641,726 1,895,609
----------- -----------
Cash - end of period $ 690,420 $ 1,382,610
=========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 218,626 $ 110,388
=========== ===========
</TABLE>
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
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 $ (55,919) 78,625.1 $ 4,842,891
Distribution to partners (1,216) -- (539,313)
Net loss (2,626) -- (84,897)
----------- -------- -----------
Balance, June 30, 1995 $ (59,761) 78,625.1 $ 4,218,681
=========== ======== ===========
Balance, January 1, 1996 $ (81,382) 78,625.1 $ 3,519,589
Distribution to partners -- -- --
Net loss (3,418) -- (110,507)
----------- -------- -----------
Balance, June 30, 1996 $ (84,800) 78,625.1 $ 3,409,082
=========== ======== ===========
See notes to financial statements
-7-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
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-B, 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-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 June 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 June 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 $1,963,073 and $1,984,019 at June 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 $2,304,950 at June 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 $33,000 and $42,488 for the six months ended June 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 six months ended June 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 $845,420 and $0 at June 30,
1996 and 1995 respectively. This balance is in the process of being
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 $3,168 for the six months ended June 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 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 $ ( 113,925) $ ( 87,523)
Add to (deduct from):
Difference in depreciation ( 140) ( 4,900)
Tax basis adjustments -
Joint Ventures ( 3,840) ( 4,120)
Other non-deductible expenses 28,058 16,419
----------- ------------
Net loss - tax return purposes $ ( 89,847) $ ( 80,124)
=========== ============
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:
March 31, December 31,
1996 1995
---- ----
Partners' Capital - balance sheet $ 3,324,282 $ 3,438,207
Add to (deduct from):
Accumulated difference in
depreciation ( 66,956) ( 66,816)
Tax basis adjustment -
Joint Ventures ( 49,081) ( 45,241)
Syndication fees 1,179,381 1,179,381
Other non-deductible expenses 205,269 177,211
------------ ------------
Partners' Capital - tax return purposes $ 4,592,895 $ 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 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:
-14-
<PAGE>
FOX HUNT JOINT VENTURE
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 $ 206,085 $ 155,903
Property, net of accumulated depreciation 2,910,597 3,016,534
Other assets 1,674,426 1,857,979
---------- ----------
Total Assets $4,791,109 $5,030,416
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Mortgage payable $4,542,292 $4,555,682
Accounts payable and accrued expenses 143,262 322,266
Other liabilities 81,213 65,275
---------- ----------
Total Liabilities 4,766,767 4,943,223
---------- ----------
Partners' Capital 24,342 87,193
---------- ----------
Total Liabilities and Partners' Capital $4,791,109 $5,030,416
========== ==========
</TABLE>
-15-
<PAGE>
FOX HUNT JOINT VENTURE
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1996 and 1995
Six Months Six Months
Ended Ended
June 30, December 31,
1996 1995
---- ----
Income:
Rental $ 617,614 $ 695,956
Interest and other income 47,012 37,545
--------- ---------
Total income 664,626 733,501
--------- ---------
Expenses:
Property operations 293,553 367,047
Depreciation and amortization 110,134 112,478
Interest 204,757 205,905
Administrative 119,034 84,920
--------- ---------
Total expenses 727,478 770,350
--------- ---------
Net loss $ (62,851) $ (36,849)
========= =========
Allocation of net loss:
The Partnership $ (7,228) $ (4,238)
Other Joint Venturer (RPILP II) (55,623) (32,611)
--------- ---------
$ (62,851) $ (36,849)
========= =========
-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 ( 7,228) ( 4,238)
----------- ----------
Investment in joint venture, June 30 $ 378,833 $ 412,921
=========== ==========
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 six month period
ended June 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 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:
-17-
<PAGE>
LAKEVIEW JOINT VENTURE
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 $ -- $ 2,461
Property, net of accumulated depreciation 2,387,343 2,463,639
Other assets 628,518 429,110
----------- -----------
Total Assets $ 3,015,861 $ 2,895,210
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
- ---------------------------------
Liabilities:
Cash overdraft $ 36,235 $ --
Mortgage payable 2,520,822 2,311,688
Accounts payable and accrued expenses 294,317 279,426
Accounts payable - affiliates 161,240 130,379
Other liabilities 37,086 85,414
----------- -----------
Total Liabilities 3,049,700 2,806,907
----------- -----------
Partners' Capital (Deficit):
The Partnership 34,773 54,585
Other joint venturer (68,613) 33,718
----------- -----------
Total Partners' (Deficit) Capital (33,840) 88,303
----------- -----------
Total Liabilities and Partners' (Deficit) Capital $ 3,015,861 $ 2,895,210
=========== ===========
</TABLE>
-18-
<PAGE>
LAKEVIEW 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 $ 357,414 $ 435,792
Interest and other income 24,212 6,054
--------- ---------
Total income 381,627 441,846
--------- ---------
Expenses:
Property operations 216,945 239,135
Depreciation and amortization 98,296 138,216
Interest 110,620 98,296
Administrative 77,909 88,376
--------- ---------
Total expenses 503,769 564,023
--------- ---------
Net loss $(122,143) $(122,177)
========= =========
Allocation of net loss:
The Partnership $ (19,812) $ (19,817)
Other Joint Venturer (102,331) (102,360)
--------- ---------
$(122,143) $(122,177)
========= =========
-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 (19,812) (19,817)
--------- ----------
Investment in joint venture, June 30 $ 51,426 $ 77,393
========= ==========
-20-
<PAGE>
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources
- -------------------------------
The Partnership continues to generate sufficient cash from operations to enable
it to provide for future capital improvements. Unlike the second quarter of 1995
when a distribution of $6.36 was made per limited partnership unit, no
distributions to partners were made in the second quarter of 1996, but the
General Partner does anticipate making distributions at some time during 1996.
Management has been concentrating heavily on increasing occupancies and at the
same time controlling expenses. Concessions to new tenants has thus proved to be
beneficial to the properties as occupancies are beginning to increase. The
General Partner feels this trend will continue in the next several months of
1996.
During January of 1996, the Partnership was able to secure new financing for the
Lakeview Joint Venture. This reduced debt service and decreased the mortgage
payments, however Lakeview continues to struggle with very low occupancies.
The General Partner has a signed contract for the sale of the Foxhunt
Apartments, although a firm closing date has not been established, and the sale
is dependent on the completion of due diligence and mortgage contingencies.
Result of Operations
- --------------------
For the quarter ended June 30, 1996, the Partnership's net loss was $42,690 or
$0.53 per limited partnership unit. Net loss for the quarter ended June 30, 1995
amounted to $17,897 or $0.22 per unit. For the six month period ended June 30,
1996, the net loss was $113,925 or $1.41 per limited partnership unit as
compared to $87,523 or $1.08 per limited partnership unit for the six month
period ended June 30, 1995.
Partnership revenue for the quarter ended June 30, 1996 totaled $427,929, a
decrease of $13,650 from the 1995 amount of $441,579. Total rental revenue
during this quarter dropped just over $14,000, with the majority of the decrease
being attributed to falling economic occupancy. For the first six months of
1996, rental revenue dropped by almost $26,000; other income decreased by $4,800
mostly due to decreased laundry income at The Villas and less security deposit
forfeits at Players Club. 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. It is expected that in the third quarter of 1996
occupancies will increase and the concessions being offered currently will be
halted.
-21-
<PAGE>
Results of Operations (continued):
- -----------------------------------
For the quarter ended June 30, 1996, Partnership expenses amounted to $449,341
which is almost exactly the same as the same quarter in 1995. For the six month
period ended June 30, 1996, Partnership expenses decreased by almost $7,200
which is only a slight decrease as compared to the same period in 1995. There
was an increase in property operations expenditures of approximately $13,000; in
this area, specifically, there was an increase in repairs and maintenance costs
and contracted services (specifically landscaping and carpet cleaning) at The
Villas, while at Players Club there was a similar increase in the same expenses,
as well as an increase in payroll and related expenses. Administrative expenses
decreased by just over $40,000 due to, for example, decreased management fees
for The Villas as a result of lower occupancies. Insurance and real estate taxes
remained fairly stable between the six month periods ended June 30, 1996 and
1995.
For the six month period ended June 30, 1996, the Foxhunt Joint Venture incurred
a loss of $62,851 as compared to $36,849 for the same period in 1995. This
property similarly suffered from lower occupancies and difficulty in collections
during the six month period ended June 30, 1996. The Partnership was allocated
$7,228 of the total loss for the six month period ended June 30, 1996 as
compared to $4,238 for the same period in the previous year.
The Lakeview Joint Venture had a net loss of $122,143 for the six month period
ended June 30, 1996. For the six month period ended June 30, 1995, this joint
venture generated an almost identical net loss of $122,177. The Partnership was
allocated $19,812 and $19,817 of the loss for the six month periods ended June
30, 1996 and 1995, respectively.
-22-
<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.
-23-
<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
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> 690,420
<SECURITIES> 0
<RECEIVABLES> 845,180
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,210,308
<PP&E> 6,983,246
<DEPRECIATION> 1,228,959
<TOTAL-ASSETS> 7,964,594
<CURRENT-LIABILITIES> 388,636
<BONDS> 4,251,676
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 7,964,594
<SALES> 0
<TOTAL-REVENUES> 853,009
<CGS> 0
<TOTAL-COSTS> 939,895
<OTHER-EXPENSES> 27,039
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 219,867
<INCOME-PRETAX> (113,925)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (113,925)
<EPS-PRIMARY> (1.41)
<EPS-DILUTED> 0
</TABLE>
