<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 30, 2000 or
--------------------------------------
[_] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from __________________ to __________________
Commission file number 0-23656
---------------------------------------------------------
Wells Real Estate Fund VI, L.P.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Georgia 58-2022628
-------------------------------------- --------------------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification no.)
6200 The Corners Parkway, Suite 250, Norcross, Georgia 30092
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770) 449-7800
--------------
________________________________________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by 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
------- _______
1
<PAGE>
Form 10-Q
---------
Wells Real Estate Fund VI, L.P.
-------------------------------
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - September 30, 2000 and December 31, 1999 ................. 3
Statements of Income for the Three Months and Nine Months
Ended September 30, 2000 and 1999 ......................................... 4
Statement of Partners' Capital for the Year Ended December 31, 1999,
and the Nine Months Ended September 30, 2000............................... 5
Statements of Cash Flows for the Nine Months
Ended September 30, 2000 and 1999.......................................... 6
Condensed Notes to Financial Statements.................................... 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.......................................................... 8
PART II. OTHER INFORMATION........................................................... 19
</TABLE>
2
<PAGE>
WELLS REAL ESTATE FUND VI, L.P.
(a Georgia Public Limited Partnership)
Balance Sheets
<TABLE>
<CAPTION>
Assets September 30, 2000 December 31, 1999
------ ------------------ -----------------
<S> <C> <C>
Investment in joint ventures (Note 2) $ 17,252,930 $ 17,884,649
Cash and cash equivalents 112,269 155,443
Due from affiliates 464,322 492,276
Deferred project costs 0 307
Prepaid expenses and other assets 300 300
---------------- ----------------
Total assets $ 17,829,821 $ 18,532,975
================ ================
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Partnership distribution payable $ 495,258 $ 476,036
---------------- ----------------
Partners' capital:
Limited partners
Class A - 2,199,470 units as of September
30, 2000 and 2,195,969 units as of 17,334,563 18,056,939
December 31, 1999
Class B - 300,530 units as of September
30, 2000 and 304,031 units as of
December 31, 1999 0 0
---------------- ----------------
Total partners' capital 17,334,563 18,056,939
---------------- ----------------
Total liabilities and partners' capital $ 17,829,821 $ 18,532,975
================ ================
</TABLE>
See accompanying condensed notes to financial statements.
3
<PAGE>
WELLS REAL ESTATE FUND VI, L.P.
(a Georgia Public Limited Partnership)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Equity in income of joint ventures (Note 2) $ 254,748 $ 244,990 $ 809,900 $ 777,174
Interest income 11,217 1,641 14,912 4,760
------------- ------------ ------------- -------------
265,965 246,631 824,812 781,934
------------- ------------ ------------- -------------
Expenses:
Legal and accounting 300 199 15,825 19,054
Computer costs 2,354 2,559 8,847 7,240
Partnership administration 7,937 11,444 37,731 43,517
------------- ------------ ------------- -------------
10,591 14,202 62,403 69,811
------------- ------------ ------------- -------------
Net income $ 255,374 $ 232,429 $ 762,409 $ 712,123
============= ============ ============= =============
Net income allocated to Class A Limited Partners $ 255,374 $ 232,429 $ 762,409 $ 1,017,369
Net loss allocated to Class B Limited Partners $ 0 $ 0 $ 0 $ (305,246)
Net income per Class A Limited Partner Unit $ 0.12 $ 0.11 $ 0.35 $ 0.47
Net loss per Class B Limited Partner Unit $ 0 $ 0 $ 0 $ (0.99)
Cash distribution per Class A Limited Partner Unit $ 0.23 $ 0.21 $ 0.68 $ 0.61
</TABLE>
See accompanying condensed notes to financial statements.
4
<PAGE>
WELLS REAL ESTATE FUND VI, L.P.
(a Georgia Public Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1999 AND THE NINE MONTHS ENDED
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Limited Partners
----------------
Class A Class B Total
-------------------------- -------------------------- General Partners'
Units Amount Units Amount Partners Capital
--------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
BALANCE, December 31, 1998 2,187,757 $18,608,322 312,243 $ 292,359 $ 0 $18,900,681
Net income (loss) 0 1,274,859 0 (305,246) 0 969,613
Partnership distributions 0 (1,813,355) 0 0 0 (1,813,355)
Class B conversion elections 8,212 (12,887) (8,212) 12,887 0
--------- ----------- --------- ----------- --------- -----------
BALANCE, December 31, 1999 2,195,969 18,056,939 304,031 0 0 18,056,939
Net income (loss) 0 762,409 0 0 0 762,409
Partnership distributions 0 (1,484,785) 0 0 0 (1,484,785)
Class B conversion elections 3,501 0 (3,501) 0 0 0
--------- ----------- --------- ----------- --------- -----------
BALANCE, September 30, 2000 2,199,470 $17,334,563 300,530 $ 0 $ 0 $17,334,563
========= =========== ========= =========== ========= ===========
</TABLE>
See accompanying condensed notes to financial statements.
5
<PAGE>
WELLS REAL ESTATE FUND VI, L.P.
(a Georgia Public Limited Partnership)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ended
--------------------------------------
Sept 30, 2000 Sept 30, 1999
------------- -------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 762,409 $ 712,123
Adjustments to reconcile net earnings to net
cash used in operating activities:
Equity in income of joint venture (809,900) (777,174)
------------ ------------
Net cash used in operating activities (47,491) (65,051)
------------ ------------
Cash flow from investing activities:
Distributions received from joint ventures 1,524,351 1,405,127
Investment in joint ventures (54,471) (13,942)
------------ ------------
Net cash provided by investing activities 1,469,880 1,391,185
------------ ------------
Cash flow from financing activities:
Partnership distributions paid (1,465,563) (1,304,698)
------------ ------------
Net increase (decrease) in cash and cash equivalents (43,174) 21,436
Cash and cash equivalents, beginning of year 155,443 145,888
------------ ------------
Cash and cash equivalents, end of period $ 112,269 $ 167,324
============ ============
Supplemental schedule of noncash investing
activities-deferred project costs applied to
investing activities $ 307 $ 581
------------ ------------
</TABLE>
See accompanying condensed notes to financial statements.
6
<PAGE>
WELLS REAL ESTATE FUND VI, L.P.
(A Georgia Public Limited Partnership)
Condensed Notes to Financial Statement
(1) Summary of Significant Accounting Policies
------------------------------------------
(a) General
-----------
Wells Real Estate Fund VI, L.P. (the "Partnership") is a Georgia public limited
partnership having Leo F. Wells, III and Wells Partners, L.P., as General
Partners. The Partnership was formed on December 1, 1992, for the purpose of
acquiring, developing, owning, operating, improving, leasing, and otherwise
managing for investment purposes income producing commercial properties.
On April 5, 1993, the Partnership commenced a public offering of its limited
partnership units pursuant to a Registration Statement on Form S-11 filed under
the Securities Act of 1933. The Partnership terminated its offering on April 4,
1994, and received gross proceeds of $25,000,000 representing subscriptions from
2,500,000 Limited Partners Units, composed of 1,933,218 Class A and 566,782
Class B Limited Partnership Units.
The Partnership owns interests in properties through its equity ownership in the
following joint ventures: Fund V and Fund VI Associates, a joint venture between
the Partnership and Wells Real Estate Fund V, L.P. ( the "Fund V - Fund VI Joint
Venture"); (ii) Fund V, Fund VI, and Fund VII Associates, a joint venture
between the Partnership, Wells Real Estate Fund V, L.P. and Wells Real Estate
Fund VII, L.P. (the "Fund V-VI-VII Joint Venture"); (iii) Fund VI and Fund VII
Associates, a joint venture between the Partnership and Wells Real Estate Fund
VII, L.P. (the "Fund VI-VII Joint Venture"); (iv) Fund II, Fund III, Fund VI and
Fund VII Associates, a joint venture between the Partnership, Fund II and Fund
III Associates, and Wells Real Estate Fund VII, L.P., (the "Fund II,III,VI,VII
Joint Venture"); (v) Fund VI, Fund VII and Fund VIII Associates, a joint venture
between the Partnership, Wells Real Estate Fund VII, L.P. and Wells Real Estate
Fund VIII, L.P. (the "Fund VI,VII,VIII Joint Venture"); and (vi) Fund I, II, II-
OW, VI, VII Associates, a joint venture between the Partnership, Wells Real
Estate Fund I, Wells Real Estate Fund II, Wells Real Estate Fund II-OW, and
Wells Real Estate Fund VII, L.P. (the "Fund I,II,II-OW,VI,VII Joint Venture").
As of September 30, 2000, the Partnership owned interests in the following
properties through its ownership of the foregoing joint ventures: (i) a four
story office building located in Hartford, Connecticut (the "Hartford Building")
and (ii) two retail buildings located in Clayton County, Georgia (the
"Stockbridge Village II") which are owned by the Fund V - Fund VI Joint Venture;
(iii) a three-story office building located in Appleton Wisconsin (the "Marathon
Building") which is owned by the Fund V-VI-VII Joint Venture; (iv) two retail
buildings located in Clayton County, Georgia (the "Stockbridge Village III")
which are owned by the Fund VI - Fund VII Joint Venture; (v) a shopping center
expansion located in Clayton County, Georgia (the Stockbridge Village I
Expansion") which is owned by the Fund VI - Fund VII Joint Venture; (vi) an
office/retail center located in Roswell, Georgia (the "Holcomb Bridge Road
Project") which is owned by the Fund II-III-VI-VII Joint Venture; and (vii) a
four story office building located in
7
<PAGE>
Jacksonville, Florida (the "BellSouth Property") and (viii) a shopping center
located in Clemmons, North Carolina ( the "Tanglewood Commons") which are owned
by the Fund VI - VII - VIII Joint Venture; and (ix) a retail shopping center
located in Cherokee County, Georgia (the "Cherokee Commons") which is owned by
the Fund I-II-II-OW-VI-VII Joint Venture. All of the foregoing properties were
acquired on an all cash basis. For further information regarding these joint
ventures and properties, refer to the Partnership's Form 10-K for the year ended
December 31, 1999.
(b). Basis of Presentation
--------------------------
The financial statements of Wells Real Estate Fund VI, L.P. (the "Partnership")
have been prepared in accordance with instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. These quarterly
statements have not been examined by independent accountants, but in the opinion
of the General Partners, the statements for the unaudited interim periods
presented include all adjustments, which are of a normal and recurring nature,
necessary to present a fair presentation of the results for such periods. For
further information, refer to the financial statements and footnotes included in
the Partnership's Form 10-K for year ended December 31, 1999.
(2) Investment in Joint Ventures
----------------------------
The Partnership owns interests in nine properties through its investment in
joint ventures of which three are office buildings and six are retail buildings.
The Partnership does not have control over the operations of the joint ventures;
however, it does exercise significant influence. Accordingly, investment in
joint ventures is recorded on the equity method. For further information, refer
to Form 10-K of the Partnership for the year ended December 31, 1999.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
-------------------------------------------------------------------------
RESULTS OF OPERATIONS.
----------------------
The following discussion and analysis should be read in conjunction with
accompanying financial statements of the Partnership and notes thereto. This
Report contains forward-looking statements, within the meaning of Section 27A of
the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934,
including discussion and analysis of the financial condition of the Partnership,
anticipated capital expenditures required to complete certain projects, amounts
of cash distributions anticipated to be distributed to Limited Partners in the
future and certain other matters. Readers of this Report should be aware that
there are various factors that could cause actual results to differ materially
from any forward-looking statement made in this Report, which include
construction costs which may exceed estimates, construction delays, lease-up
risks, inability to obtain new tenants upon expiration of existing leases, and
the potential need to fund tenant improvements or other capital expenditures out
of operating cash flow.
8
<PAGE>
Results of Operations and Changes in Financial Conditions
---------------------------------------------------------
(a) General
-----------
As of September 30, 2000, the properties owned by the Partnership were 98%
occupied as compared to 97% occupied at September 30, 1999. Gross revenues of
the Partnership were $824,812 for the nine months ended September 30, 2000, as
compared to $781,934 for the same period in 1999. The increase in revenues is
attributed primarily to increased earnings from joint ventures caused by
increased occupancy at Stockbridge Village Expansion and Tanglewood Commons and
an increase in interest income.
Expenses of the Partnership were $62,403 for the nine months ended September 30,
2000, as compared to $69,811 for the same period in 1999. The decrease in
expenses for 2000, as compared to 1999, was primarily due to decreased
partnership administration expenses and accounting fees.
Net income of the Partnership was $762,409 for the nine months ended September
30, 2000, as compared to $712,123 for the same period in 1999. The increase in
net income for 2000, from 1999, is due primarily to increased revenues and a
decrease in expenses as noted above.
Net cash used in operating activities decreased from $65,051 in 1999 to $47,491
in 2000. This decrease was due primarily to decreased expenses and increased
interest income. Net cash provided by investing activities increased for the
nine months ended September 30, 2000, as compared to the same period in 1999,
due primarily an increase in joint venture distributions partially offset by an
increase in investments in joint ventures. Partnership distributions also
increased slightly in 2000, as compared to 1999. These changes produced cash and
cash equivalents of $167,324 and $112,269 at September 30, 1999, and 2000,
respectively.
The Partnership made cash distributions to Limited Partners holding Class A
Units of $.23 for the three months ended September 30, 2000 as compared to
distributions of $.21 per Class A Unit for the same period in 1999. No cash
distributions were made to Limited Partners holding Class B Units or to the
General Partners.
The Partnership expects to continue to meet its short-term liquidity
requirements and budget demands generally through net cash provided by
operations which the Partnership believes will continue to be adequate to meet
both operating requirements and distributions to Limited Partners. At this time,
given the nature of the joint ventures in which the Partnership has invested,
there are no known improvements and renovations to the properties expected to be
funded from cash flow from operations.
At this time, two properties are being marketed for sale. CB Richard Ellis is
marketing the sale of 880 Holcomb Bridge, and Cherokee Commons. The marketing
piece is being broadly distributed to investors throughout the country. To
maximize the disposition value, the management team is separating the retail and
creating a condominium for the office buildings. The legal and site work should
be complete so that the management team can market this property to investors in
early fall. The Partnership's goal is to have these properties sold by the end
of 2002. As the properties are sold, all proceeds will be returned to the
Limited Partners in accordance with the Partnership's prospectus. Management
estimates that the fair market value of each of the properties exceeds the
9
<PAGE>
carrying value of the corresponding real estate assets; consequently, no
impairment loss has been recorded. In the event that the net sales proceeds are
less than the carrying value of the property sold, the Partnership would
recognize a loss on the sale. Management is not contractually or financially
obligated to sell any of its properties, and it is management's current intent
to fully realize the Partnership's investment in real estate. The success of the
Partnership's future operations and the ability to realize investment in its
assets will be dependent on the Partnership's ability to maintain rental rates,
occupancy, and an appropriate level of operating expenses in future years.
Management believes that the steps that it is taking will enable the Partnership
to realize its investment in its assets.
Property Operations
-------------------
As of September 30, 2000, the Partnership owned interests in the following
operational properties:
The Hartford Building/Fund V - Fund VI Joint Venture
----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 179,374 $ 179,374 $ 538,124 $ 538,124
------------- ------------- ------------- -------------
Expenses:
Depreciation 73,008 73,008 219,024 219,024
Management & leasing expenses 7,407 7,242 21,891 21,726
Other operating expenses (1,595) 2,643 7,410 7,506
------------- ------------- ------------- -------------
78,820 82,893 248,325 248,256
------------- ------------- ------------- -------------
Net income $ 100,554 $ 96,481 $ 289,799 $ 289,868
============= ============= ============= =============
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 53.6% 53.6% 53.6% 53.6%
Cash Distribution to Partnership $ 93,921 $ 91,700 $ 275,407 $ 275,219
Net Income Allocated to the
Partnership $ 53,894 $ 51,690 $ 155,324 $ 155,234
</TABLE>
Net income increased and expenses decreased for the three months ended September
30, 2000, as compared to 1999, due primarily to a timing difference in insurance
reimbursements from the tenant, which was recorded in the second quarter of
1999, but in the third quarter of 2000.
10
<PAGE>
Stockbridge Village II/Fund V - Fund VI Joint Venture
-----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 77,992 $ 75,654 $ 233,496 $ 230,964
------------- ------------- ------------- -------------
Expenses:
Depreciation 26,241 26,304 78,723 78,039
Management & leasing expenses 8,923 9,921 28,536 26,930
Other operating expenses 9,482 17,021 31,128 33,304
------------- ------------- ------------- -------------
44,646 53,246 138,387 138,273
------------- ------------- ------------- -------------
Net income $ 33,346 $ 22,408 $ 95,109 $ 92,691
============= ============= ============= =============
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund V - Fund VI Joint Venture 53.6% 53.6% 53.6% 53.6%
Cash Distribution to Partnership $ 32,583 $ 23,783 $ 95,107 $ 81,939
Net Income Allocated to the
Partnership $ 17,873 $ 12,005 $ 50,976 $ 49,645
</TABLE>
Rental income and net income are relatively stable for the nine months ended
September 30, 2000, as compared to the same period in 1999. Operating expenses
are lower for the three months ended September 30, 2000, as compared to the same
period in 1999, due to timing differences in vendor invoicing of various
operating expenses. Cash distributions are greater in 2000, due primarily to
lease acquisition fees paid in 1999, which lowered the cash available for
distribution in 1999.
11
<PAGE>
The Marathon Building/Fund V-VI-VII Joint Venture
-------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 242,763 $ 243,182 $ 728,288 $ 728,690
------------- ------------- ------------- -------------
Expenses:
Depreciation 87,646 87,646 262,939 262,939
Management & leasing expenses 2,361 14,627 7,082 37,314
Other operating expenses 3,555 4,181 14,984 14,592
------------- ------------- ------------- -------------
93,562 106,454 285,005 314,845
------------- ------------- ------------- -------------
Net income $ 149,201 $ 136,728 $ 443,283 $ 413,845
============= ============= ============= =============
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund V-VI-VII Joint Venture 41.8% 41.8% 41.8% 41.8%
Cash Distribution to Partnership $ 99,971 $ 94,586 $ 298,108 $ 285,633
Net Income Allocated to the
Partnership $ 62,412 $ 57,194 $ 185,426 $ 173,112
</TABLE>
Rental income remained stable for the nine months and the three months ended
September 30, 2000, as compared to the nine months and the three months ended
September 30, 1999.
Management and leasing fees decreased for both the three months and nine months
ended September 30, 2000, as compared to the same periods in 1999, due to a
lower rate charged starting October, 1999. The management and leasing agreement
reduces fees to 1% after five years on triple-net leases of ten years or more.
As a result, net income and cash distribution to the Partnership increased.
12
<PAGE>
Stockbridge Village III / Fund VI - Fund VII Joint Venture
----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $ 77,651 $ 76,916 $ 231,384 $ 233,518
------------- ------------- ------------- -------------
Expenses:
Depreciation 21,409 20,711 64,225 65,754
Management & leasing expenses 9,268 9,260 28,046 27,999
Other operating expenses 3,783 10,105 6,391 19,683
------------- ------------- ------------- -------------
34,460 40,076 98,662 113,436
------------- ------------- ------------- -------------
Net income (loss) $ 43,191 $ 36,840 $ 132,722 $ 120,082
============= ============= ============= =============
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund VI - Fund VII Joint Venture 44.3% 43.7% 44.3% 43.7%
Cash Distribution to Partnership $ 29,068 $ 27,376 $ 88,750 $ 80,913
Net Income (Loss) Allocated to the
Partnership $ 19,051 $ 16,100 $ 58,188 $ 52,478
</TABLE>
Rental income remained relatively stable for the three months and nine months
ended September 30, 2000, as compared to the same periods in 1999.
Net income and cash distributions have increased for the three months and nine
months ended September 30, 2000, as compared to the same periods in 1999, due
primarily to decreased expenses for legal fees, accounting fees and
administrative salary.
The Partnership's ownership percentage in the Fund VI-Fund VII Joint Venture
increased to 44.3% for 2000, as compared to 43.7% in September 30, 1999, due to
additional fundings by the Partnership, which increased the Partnership's
ownership in the Fund VI-Fund VII Joint Venture.
13
<PAGE>
Holcomb Bridge Road Project / Fund II, III, VI, VII Joint Venture
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 214,051 $ 213,028 $ 658,907 $ 670,852
------------- ------------- ------------- -------------
Expenses:
Depreciation 104,129 79,605 312,389 277,862
Management & leasing expenses 28,099 22,263 85,165 93,200
Other operating expenses 29,194 14,889 70,302 39,670
------------- ------------- ------------- -------------
161,422 116,757 467,856 410,732
------------- ------------- ------------- -------------
Net income $ 52,629 $ 96,271 $ 191,051 $ 260,120
============= ============= ============= =============
Occupied % 92% 94% 92% 94%
Partnership's Ownership % 26.9% 26.9% 26.9% 26.9%
Cash Distribution to Partnership $ 46,136 $ 45,857 $ 148,362 $ 136,915
Net Income Allocated to the
Partnership $ 14,136 $ 25,858 $ 51,316 $ 69,868
</TABLE>
Rental income decreased for the nine months ended September 30, 2000, as
compared to the same period in 1999, due to decreased occupancy. Other operating
expenses increased for the three months and nine months ended September 30,
2000, as compared to the same periods in 1999 due to appraisal fees for this
property which is currently being marketed for sale and a decrease in the common
area maintenance reimbursements from tenants. Monthly common area maintenance
billings were increased in 1999 to offset 1998 underpayment. Tenants are billed
an estimated amount for the current year common area maintenance which is then
reconciled the following year and the difference billed to the tenant.
Cash distributions to the Partnership increased for the three months and nine
months ended September 30, 2000, as compared to the same periods in 1999 even
though there is a decrease in net income this year due to lease acquisition fees
and procurement fees paid in 1999.
This property is currently being marketed for sale by CB Richard Ellis. The
marketing piece is being broadly distributed to investors throughout the
country. The Partnership's goal is to have this property sold by the end of
2002.
14
<PAGE>
Stockbridge Village I Expansion / Fund VI - Fund VII Joint Venture
------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 88,046 $ 67,729 $ 253,854 $ 212,355
------------- ------------- ------------- -------------
Expenses:
Depreciation 38,690 37,350 112,992 111,553
Management & leasing expenses 11,628 14,104 34,348 31,831
Other operating expenses 10,192 3,811 29,979 4,797
------------- ------------- ------------- -------------
60,510 55,265 177,319 148,181
------------- ------------- ------------- -------------
Net income $ 27,536 $ 12,464 $ 76,535 $ 64,174
============= ============= ============= =============
Occupied % 93% 86% 93% 86%
Partnership's Ownership % in the Fund
VI - Fund VII Joint Venture 44.3% 43.7% 44.3% 43.7%
Cash Distribution to Partnership $ 26,620 $ 27,933 $ 86,616 $ 92,826
Net Income Allocated to the
Partnership $ 12,146 $ 5,447 $ 33,564 $ 28,045
</TABLE>
Rental income increased for the three months and nine months ended September 30,
2000, as compared to the same period in 1999, due to increased rental renewal
rates this year and increased occupancy in the third quarter of 2000.
Other operating expenses increased due to increased legal fees and decreases in
common area maintenance billing to tenants. In 1999, monthly common area
maintenance billing to tenants were increased to offset 1998 underpayments.
Tenants are billed an estimated amount for the current year common area
maintenance which is then reconciled the following year and the difference
billed to the tenant.
The Partnership's ownership percentage in the Fund VI - Fund VII Joint Venture
increased to 44.3%, as compared to 43.7% in September 30, 1999, due to
additional fundings by the Partnership, which increased the Partnership's
ownership in the Fund VI-Fund VII Joint Venture.
15
<PAGE>
BellSouth Building / Fund VI - Fund VII - Fund VIII Joint Venture
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 380,278 $ 380,278 $ 1,140,832 $ 1,140,832
Interest income 240 1,159 1,745 3,461
------------- ------------- ------------- -------------
380,518 381,437 1,142,577 1,144,293
------------- ------------- ------------- -------------
Expenses:
Depreciation 111,606 111,606 334,818 334,818
Management & leasing expenses 48,166 47,891 145,306 144,824
Other operating expenses 129,132 111,440 354,742 321,275
------------- ------------- ------------- -------------
288,904 270,937 834,866 800,917
------------- ------------- ------------- -------------
Net income $ 91,614 $ 110,500 $ 307,711 $ 343,376
============= ============= ============= =============
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the Fund
VI - Fund VII - Fund VIII Joint Venture 34.3% 34.3% 34.3% 34.3%
Cash Distribution to Partnership $ 72,461 $ 78,929 $ 228,640 $ 240,856
Net Income Allocated to the Partnership $ 31,378 $ 37,846 $ 105,392 $ 117,607
</TABLE>
Net income and cash distributions have decreased for the three months and nine
months ended September 30, 2000, as compared to the same periods in 1999 due
primarily to increased janitorial expenses and expenses for an application of
water repellent on the building.
16
<PAGE>
Tanglewood Commons / Fund VI - VII - VIII Joint Venture
-------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 210,475 $ 192,850 $ 626,366 $ 579,169
Interest income 0 2,374 1,988 7,663
------------- ------------- ------------- -------------
210,475 195,224 628,354 586,832
------------- ------------- ------------- -------------
Expenses:
Depreciation 67,554 64,677 200,204 190,779
Management & leasing expenses 19,389 16,639 60,466 49,281
Other operating expenses 13,699 18,093 (32,553) 47,541
------------- ------------- ------------- -------------
100,642 99,409 228,117 287,601
------------- ------------- ------------- -------------
Net income $ 109,833 $ 95,815 $ 400,237 $ 299,231
============= ============= ============= =============
Occupied % 97% 91% 97% 91%
Partnership's Ownership % in the Fund VI -
Fund VII - Fund VIII Joint Venture 34.3% 34.3% 34.3% 34.3%
Cash Distribution to Partnership $ 60,844 $ 55,381 $ 207,138 $ 168,959
Net Income Allocated to the
Partnership $ 37,618 $ 32,817 $ 137,082 $ 102,488
</TABLE>
Rental income, net income, depreciation expenses and management and leasing
expenses have increased in 2000, as compared to 1999, due to the increased
occupancy at the property.
Other operating expenses decreased due to monthly common area maintenance
billing to the tenants which were increased in 2000 to offset 1999 underpayment.
Tenants are billed an estimated amount for the current year common area
maintenance which is then reconciled the following year and the difference
billed to the tenant.
17
<PAGE>
Cherokee Commons/ Fund I, II, II-OW, VI, VII Joint Venture
----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------ -----------------
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000 Sept 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 249,102 $ 238,923 $ 713,717 $ 703,538
Interest income 32 8 71 47
------------- ------------- ------------- -------------
249,134 238,931 713,788 703,585
------------- ------------- ------------- -------------
Expenses:
Depreciation 110,562 111,379 331,687 332,906
Management & leasing expenses 10,360 22,863 46,653 73,992
Other operating expenses 51,473 48,342 30,688 28,699
------------- ------------- ------------- -------------
172,395 182,584 409,028 435,597
------------- ------------- ------------- -------------
Net income $ 76,739 $ 56,347 $ 304,760 $ 267,988
============= ============= ============= =============
Occupied % 97% 97% 97% 97%
Partnership's Ownership % 10.7% 10.7% 10.7% 10.7%
Cash Distribution to Partnership $ 17,492 $ 18,629 $ 68,335 $ 63,310
Net Income Allocated to the
Partnership $ 6,242 $ 6,034 $ 32,634 $ 28,696
</TABLE>
Rental income increased for the three months and nine months ended September 30,
2000, as compared to the same periods in 1999, due to increased rental renewal
rates. Management and leasing expenses decreased in 2000, as compared to 1999,
due to increased leasing commissions for 1999 and a catch-up of 1998 management
fees in 1999. Other operating expenses remained relatively stable for the nine
months ended September 30, 2000, as compared to the same period in 1999. Net
income increased for the three months and nine months ended September 30, 2000,
as compared to the same periods in 1999, due to the lower management and leasing
expenses.
This property is currently being marketed for sale by CB Richard Ellis. The
marketing piece is being broadly distributed to investors throughout the
country. The Partnership's goal is to have this property sold by the end of
2002.
18
<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM 6 (b). No reports on Form 8-K were filed during the third quarter of
2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
WELLS REAL ESTATE FUND VI, L.P.
(Registrant)
Dated: November 10, 2000 By: /s/ Leo F. Wells, III
----------------------------------------
Leo F. Wells, III, as Individual
General Partner and as President,
Sole Director and Chief Financial
Officer of Wells Capital, Inc., the
General Partner of Wells Partners, L.P.
19
