<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 June 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
-----
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - June 30, 2000
and December 31, 1999.................................. 3
Statements of Income for the Three Months and Six Months
Ended June 30, 2000 and 1999......................... 4
Statement of Partners' Capital
for the Year Ended December 31, 1999,
and the Six Months Ended June 30, 2000................ 5
Statements of Cash Flows for the Six Months
Ended June 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
2
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WELLS REAL ESTATE FUND VI, L.P.
(a Georgia Public Limited Partnership)
Balance Sheets
<TABLE>
<CAPTION>
Assets June 30, 2000 December 31, 1999
------ ------------- -----------------
<S> <C> <C>
Investment in joint ventures (Note 2) $17,431,855 $17,884,649
Cash and cash equivalents 157,970 155,443
Due from affiliates 478,856 492,276
Deferred project costs 307 307
Prepaid expenses and other assets 300 300
----------- -----------
Total assets $18,069,288 $18,532,975
=========== ===========
Liabilities and Partners' Capital
---------------------------------
Liabilities:
Partnership distribution payable $ 495,142 $ 476,036
----------- -----------
Partners' Capital
Limited Partners:
Class A - 2,199,570 units
as of June 30, 2000 and 2,195,969
units as of December 31, 1999 17,574,146 18,056,939
Class B - 300,430 units as
of June 30, 2000 and 304,031
units as of December 31, 1999 0 0
----------- -----------
Total partners' capital 17,574,146 18,056,939
----------- -----------
Total liabilities and partners' capital $18,069,288 $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 Six Months Ended
----------------------------------------- -------------------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
-------------------- ------------------- --------------------- --------------------
<S> <C> <C> <C> <C>
Revenues:
Equity in income of joint
ventures (Note 2) $267,717 $280,972 $555,152 $ 532,184
Interest income 1,914 1,583 3,695 3,119
-------- -------- -------- ---------
269,631 282,555 558,847 535,303
-------- -------- -------- ---------
Expenses:
Legal and accounting 2,743 9,615 15,525 18,855
Computer costs 3,426 1,861 6,493 4,681
Partnership administration 19,610 12,701 29,794 32,073
-------- -------- -------- ---------
25,779 24,177 51,812 55,609
-------- -------- -------- ---------
Net income $243,852 $258,378 $507,035 $ 479,694
======== ======== ======== =========
Net income allocated to Class A
Limited Partners $243,852 $332,375 $507,035 $ 784,940
Net loss allocated to Class B
Limited Partners $ 0 $(73,997) $ 0 $(305,246)
Net income per Class A Limited
Partner Unit $ 0.11 $ 0.15 $ 0.23 $ 0.36
Net loss per Class B Limited Partner
Unit $ 0 $ (0.24) $ 0 $ (0.98)
Cash distribution per Class A
Limited Partner Unit $ 0.22 $ 0.21 $ 0.45 $ 0.40
</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 SIX MONTHS ENDED
JUNE 30, 2000
<TABLE>
<CAPTION>
Limited Partners
-----------------------------------------------
Class A Class B Total
----------------------- ---------------------- Partners'
Units Amount Units Amount Capital
--------- ------------ ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
BALANCE, December 31, 1998 2,187,757 $18,608,322 312,243 $ 292,359 $18,900,681
Net income (loss) 0 1,274,859 0 (305,246) 969,613
Partnership distributions 0 (1,813,355) 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 18,056,939
Net income 0 507,035 0 0 507,035
Partnership distributions 0 (989,828) 0 0 (989,828)
Class B conversion elections 3,601 0 (3,601) 0 0
--------- ---------- ------- --------- -----------
BALANCE, June 30, 2000 2,199,570 $17,574,146 300,430 $ 0 $17,574,146
========= =========== ======= ========= ===========
</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>
For the Six Months Ended
------------------------------------------
June 30, 2000 June 30, 1999
------------- -------------
<S> <C> <C>
Cash flow from operating activities:
Net income $ 507,035 $ 479,694
Adjustments to reconcile net income to net cash
used in operating activities:
Equity in income of joint venture (555,152) (532,184)
---------- ----------
Net cash used in operating activities (48,117) (52,490)
---------- ----------
Cash flow from investing activities:
Distributions received from joint ventures 1,024,866 912,238
Investment in joint ventures (3,500) (7,942)
---------- ----------
Net cash provided by investing activities 1,021,366 904,296
---------- ----------
Cash flow from financing activities:
Partnership distributions paid (970,722) (854,902)
---------- ----------
Net decrease in cash and cash equivalents (2,527) (3,096)
Cash and cash equivalents, beginning of year 155,443 145,888
---------- ----------
Cash and cash equivalents, end of period $ 157,970 $ 142,792
========== ==========
Supplemental schedule of noncash investing activities:
Deferred project costs applied to joint ventures $ 0 $ 331
========== ==========
</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 June 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 "880 Holcomb Bridge") which is owned by the Fund II-III-
VI-VII Joint Venture; and (vii) a four story office building located in
Jacksonville,
7
<PAGE>
Florida (the "BellSouth Property") and (viii) a shopping center located in
Clemmons, North Carolina ( the "Tanglewood Commons") which is 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 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 June 30, 2000, the properties owned by the Partnership were 99% as
compared to 97% occupied at June 30, 1999. Gross revenues of the Partnership
were $558,847 for the six months ended June 30, 2000, as compared to $535,303
for the six months ended June 30, 1999. The increase in revenues is attributed
primarily to increased occupancy from the Fund VI-VII-VIII Joint Venture mainly
at Tanglewood Commons. The quarter of June 30, 2000 is lower than the quarter
of June 30, 1999 is due primarily to a catch up of rental billings to a new
tenant in 1999 at Stockbridge Village II.
Expenses of the Partnership were $51,812 for 2000, as compared to $55,609 for
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 $507,035 for the six months ended June 30,
2000, as compared to $479,694 for the same period in 1999. The increase in net
income for 2000, from 1999, is due primarily to increased revenues and decreased
expenses as noted above.
Net cash used in operating activities decreased from $52,490 in 1999 to $48,117
in 2000. This decrease was due primarily to decreased partnership
administrative expenses. Net cash provided by investing activities increased for
the six months ended June 30, 2000, as compared to the same period in 1999, due
primarily to an increase in joint venture distributions. Partnership
distributions also increased in 2000, as compared to 1999. These changes
produced cash and cash equivalents of $142,792 and $157,970 at June 30, 1999,
and 2000, respectively.
The Partnership made cash distributions to Limited Partners holding Class A
Units of $.22 for the three months ended June 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 know improvements and renovations to the properties
expected to be funded from cash flow from operations.
9
<PAGE>
Property Operations
-------------------
As of June 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 Six Months Ended
------------------------------- ------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30,1999
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $179,375 $179,375 $358,750 $358,750
-------- -------- -------- --------
Expenses:
Depreciation 73,008 73,008 146,016 146,016
Management & leasing expenses 7,242 7,242 14,484 14,484
Other operating expenses 4,888 (456) 9,005 4,863
-------- -------- -------- --------
85,138 79,794 169,505 165,363
-------- -------- -------- --------
Net income $ 94,237 $ 99,581 $189,245 $193,387
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership Ownership % in the
Fund V-VI Joint Venture 53.6% 53.6% 53.6% 53.6%
Cash Distribution to Partnership $ 90,537 $ 93,343 $181,486 $183,519
Net Income Allocated to the
Partnership $ 50,508 $ 53,339 $101,430 $103,544
</TABLE>
Net income decreased and expenses increased for the three and six months
ended June 30, 2000, as compared to 1999, due primarily to a greater
insurance reimbursement from the tenant in 1999, which was recorded in the
second quarter of 1999, in other operating expenses.
10
<PAGE>
Stockbridge Village II/Fund V - Fund VI Joint Venture
-----------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ ---------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $77,855 $95,902 $155,504 $155,310
------- ------- -------- --------
Expenses:
Depreciation 26,241 25,992 52,482 51,735
Management & leasing expenses 9,986 10,120 19,613 17,009
Other operating expenses 8,246 3,008 21,646 16,283
------- ------- -------- --------
44,473 39,120 93,741 85,027
------- ------- -------- --------
Net income $33,382 $56,782 $ 61,763 $ 70,283
======= ======= ======== ========
Occupied % 100% 100% 100% 100%
Partnership Ownership % in the
Fund V-VI Joint Venture 53.6% 53.6% 53.6% 53.6%
Cash Distribution to Partnership $32,602 $42,700 $ 62,524 $ 58,156
Net Income Allocated to the
Partnership $17,892 $30,414 $ 33,103 $ 37,640
</TABLE>
Rental income is stable for the six months ended June 30, 2000, as compared
to 1999, while it was lower for the three months ended June 30, 2000, due
to a catch up in rental billing on a new tenant in second quarter of 1999.
Expenses were higher in 2000, due primarily to expenditures for parking lot
repairs in the second quarter of 2000.
11
<PAGE>
The Marathon Building/Fund V-VI-VII Joint Venture
-------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
----------------------------- -----------------------------
June 30, 2000 June 30, 1999 June 30,2000 June 30,1999
-------------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Revenues:
Rental Income $242,762 $242,754 $485,525 $485,508
-------- -------- -------- --------
Expenses:
Depreciation 87,647 87,647 175,293 175,293
Management & leasing expenses 2,360 6,443 4,721 22,687
Other operating expenses 6,463 2,865 11,429 10,411
-------- -------- -------- --------
96,470 96,955 191,443 208,391
-------- -------- -------- --------
Net income $146,292 $145,799 $294,082 $277,117
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership Ownership % in the
Fund V-VI-VII Joint Venture 41.8% 41.8% 41.8% 41.8%
Cash Distribution to Partnership $ 98,755 $ 98,552 $198,137 $191,047
Net Income Allocated to the
Partnership $ 61,193 $ 60,988 $123,014 $115,918
</TABLE>
Rental income remained stable for the six months ended June 30, 2000, as
compared to the six months ended June 30, 1999.
Management and leasing fees decreased for the six months ended June 30,
2000, as compared to the same period last year 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.
Operating expenses increased due primarily to increases in administrative
salary.
12
<PAGE>
Stockbridge Village III / Fund VI - Fund VII Joint Venture
----------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
---------------------------------- -----------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $76,895 $76,001 $153,733 $156,602
------- ------- -------- --------
Expenses:
Depreciation 21,408 22,457 42,816 45,043
Management & leasing expenses 9,201 13,183 18,778 18,739
Other operating expenses 3,587 6,611 2,608 9,578
------- ------- -------- --------
34,196 42,251 64,202 73,360
------- ------- -------- --------
Net income $42,699 $33,750 $ 89,531 $ 83,242
======= ======= ======== ========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund VI-VII Joint Venture 43.7% 43.7% 43.7% 43.7%
Cash distribution to Partnership $28,963 $24,450 $ 59,682 $ 53,537
Net income allocated to the
Partnership $18,671 $14,750 $ 39,137 $ 36,379
</TABLE>
Rental income remained relatively stable for the three months and six months
ended June 30, 2000 as compared to the same period in 1999.
Net income and cash distribution to the Partnership increased for the three
months and six months ended June 30, 2000 due to a decrease in administrative
salary.
13
<PAGE>
Holcomb Bridge Road Project / Fund II, III, VI, VII Joint Venture
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------------ -----------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $222,699 $227,761 $444,856 $457,824
-------- -------- -------- --------
Expenses:
Depreciation 104,130 94,128 208,260 188,257
Management & leasing expenses 26,480 42,063 57,066 80,937
Other operating expenses 23,890 387 41,108 24,781
-------- -------- -------- --------
154,500 136,578 306,434 293,975
-------- -------- -------- --------
Net income $ 68,199 $ 91,183 $138,422 $163,849
======== ======== ======== ========
Occupied % 100% 94% 100% 94%
Partnership Ownership % 26.9% 26.9% 26.9% 26.9%
Cash distributed to the Partnership $ 50,729 $ 51,534 $102,001 $ 91,058
Net income allocated to the
Partnership $ 18,318 $ 24,492 $ 37,180 $ 44,010
</TABLE>
Rental income remained relatively stable for the three months ended June 30,
2000, as compared to the same period in 1999. Management and leasing fees
decreased in 2000, as compared to 1999, due to a catch-up of 1998 management
fees in 1999. Other operating expenses increased for the three months and six
months periods as compared to the same period last year due to appraisal fees
for this property which is currently being marketed for sale and 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 six month period as
compared to the same period in 1999 even though there is a decrease in net
income this year due to lease acquisition fees and procurement fees paid in
1999.
14
<PAGE>
Stockbridge Village I Expansion / Fund VI - Fund VII Joint Venture
------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------------------- ------------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $83,061 $66,480 $165,808 $144,626
------- ------- -------- --------
Expenses:
Depreciation 37,151 32,648 74,302 74,203
Management & leasing expenses 11,360 8,437 22,720 17,727
Other operating expenses 15,608 (3,805) 19,787 986
------- ------- -------- --------
64,119 37,280 116,809 92,916
------- ------- -------- --------
Net income $18,942 $29,200 $ 48,999 $ 51,710
======= ======= ======== ========
Occupied % 86% 86% 86% 86%
Partnership Ownership % 43.7% 43.7% 43.7% 43.7%
Cash distributed to the Partnership $28,692 $33,747 $ 59,996 $ 64,893
Net income allocated to the
Partnership $ 8,283 $12,761 $ 21,418 $ 22,598
</TABLE>
Rental income increased for the three months and six months ended June 30, 2000,
as compared to the same period 1999 due to increased rental renewal rates this
year.
Management and leasing fees increased due to increased rental income. Other
operating expenses increased due to 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. As a result of increased
expenses, net income decreased for the three and six months ended June 30, 2000,
as compared to the same periods in 1999.
15
<PAGE>
BellSouth Building / Fund VI - Fund VII - Fund VIII Joint Venture
-----------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------------------- ----------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $380,277 $380,277 $760,554 $760,554
Interest income 215 1,160 1,505 2,302
-------- -------- -------- --------
380,492 381,437 762,059 762,856
-------- -------- -------- --------
Expenses:
Depreciation 111,606 111,606 223,212 223,212
Management & leasing expenses 48,974 49,041 97,140 96,933
Other operating expenses 121,277 106,051 225,610 209,835
-------- -------- -------- --------
281,857 266,698 545,962 529,980
-------- -------- -------- --------
Net income $ 98,635 $114,739 $216,097 $232,876
======== ======== ======== ========
Occupied % 100% 100% 100% 100%
Partnership's Ownership % in the
Fund VI-VII-VIII Joint Venture 34.3% 34.3% 34.3% 34.3%
Cash distribution to Partnership $ 74,866 $ 80,382 $156,179 $161,927
Net income allocated to the
Partnership $ 33,783 $ 39,299 $ 74,014 $ 79,761
</TABLE>
Net income has decreased slightly for the three months and six months ended June
30, 2000 as compared to the same period in 1999, due primarily to increased
expenditures in water/sewer, landscaping supplies, janitorial contract and
janitorial supplies.
16
<PAGE>
Tanglewood Commons / Fund VI - VII - VIII Joint Venture
-------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended Five Months Ended
----------------------------------- ---------------- -----------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------- ------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $210,402 $193,288 $415,891 $386,319
Interest income 0 2,353 1,988 5,289
-------- -------- -------- --------
210,402 195,641 417,879 391,608
-------- -------- -------- --------
Expenses:
Depreciation 67,554 64,677 132,650 126,102
Management & leasing expenses 23,302 17,537 41,077 32,642
Other operating expenses (20,542) 10,367 (46,252) 29,448
-------- -------- -------- --------
70,314 92,581 127,475 188,192
-------- -------- -------- --------
Net income $140,088 $103,060 $290,404 $203,416
======== ======== ======== ========
Occupied % 97% 91% 97% 91%
Partnership's Ownership % in the
Fund VI-VII-VIII Joint Venture 34.3% 34.3% 34.3% 34.3%
Cash distribution to Partnership $ 71,115 $ 57,863 $146,294 $113,578
Net income allocated to the
Partnership $ 47,981 $ 35,299 $ 99,464 $ 69,671
</TABLE>
Rental income, net income, depreciation expenses, and management and leasing
fees have increased in 2000 as compared to 1999 due to increased occupancy at
the property.
Other operating expenses decreased due to monthly common area maintenance
billings 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 Six Months Ended
-------------------------------------- -----------------------------------
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Rental income $240,192 $237,232 $483,053 $464,615
Interest income 40 19 47 39
-------- -------- -------- --------
240,232 237,251 483,100 464,654
-------- -------- -------- --------
Expenses:
Depreciation 110,563 111,415 221,125 221,527
Management & leasing expenses 19,938 26,135 36,293 51,129
Other operating expenses 6,183 9,772 (20,785) (19,643)
-------- -------- -------- --------
136,684 147,322 236,633 253,013
-------- -------- -------- --------
Net income $103,548 $ 89,929 $246,467 $211,641
======== ======== ======== ========
Occupied % 97% 96% 97% 96%
Partnership Ownership % 10.7% 10.7% 10.7% 10.7%
Cash distributed to the Partnership $ 23,296 $ 20,320 $ 50,843 $ 44,680
Net income allocated to the
Partnership $ 11,088 $ 9,630 $ 26,392 $ 22,663
</TABLE>
Rental income increased in 2000, as compared to 1999, due to increased occupancy
and 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 remain
negative for the six months ended June 30, 2000 and 1999, due to the billing of
common area maintenance to tenants. Tenants are billed an estimate amount for
the current year common area maintenance which is then reconciled in the
following year and the difference billed to the tenant.
18
<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM 6 (b). No reports on Form 8-K were filed during the second 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: August 11, 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
