-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, jyhhueDJ3At00fRne63ifcsOl7RvHYd9iT+paLI8O2UwJ4IZEQ1DkF7wyDOfJtTJ yXR7GiTSr8l80ZKaEcfpHg== 0000702313-95-000002.txt : 19950530 0000702313-95-000002.hdr.sgml : 19950530 ACCESSION NUMBER: 0000702313-95-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950512 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROPERTY RESOURCES FUND VI CENTRAL INDEX KEY: 0000702313 STANDARD INDUSTRIAL CLASSIFICATION: 6500 IRS NUMBER: 942838890 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11798 FILM NUMBER: 95537079 BUSINESS ADDRESS: STREET 1: 1800 GATEWAY DR CITY: SAN MATEO STATE: CA ZIP: 94404 BUSINESS PHONE: 4153125824 MAIL ADDRESS: STREET 1: PO BOX 7777 CITY: SAN MATEO STATE: CA ZIP: 944047777 10-Q 1 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 March 31, 1995 ----------------------- OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE CHANGE ACT OF 1934 For the transition period from__________________ to _______________________ Commission file number 2-77330 ----------------------------------------------------- Property Resources Fund VI - - - - --------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 94-2838890 - - - - --------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) P. O. Box 7777, San Mateo, California 94403-7777 - - - - --------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (415) 312-2000 N/A - - - - --------------------------------------------------------------------------- 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 --- --- Limited Partnership Units Outstanding as of March 31, 1995: 21,585 PART I - FINANCIAL INFORMATION Item 1. Financial Statements PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) BALANCE SHEETS MARCH 31, 1995 AND DECEMBER 31, 1994
(Unaudited) (Audited) 1995 1994 ---- ---- ASSETS Rental property: Land $ 2,239,000 $ 2,239,000 Land improvements 748,000 748,000 Buildings and improvements 7,124,000 7,124,000 Furnishings and equipment 960,000 951,000 - - - - ----------------------------------------------------- ------------------------ ----------------------- 11,071,000 11,062,000 Less: accumulated depreciation 3,912,000 3,841,000 - - - - ----------------------------------------------------- ------------------------ ----------------------- 7,159,000 7,221,000 Cash and cash equivalents 161,000 131,000 Note receivable 440,000 493,000 Other assets 105,000 115,000 - - - - ----------------------------------------------------- ------------------------ ----------------------- Total assets $ 7,865,000 $ 7,960,000 ===================================================== ======================== ======================= LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Notes payable $ 5,537,000 $5,639,000 Note payable to affiliate 1,721,000 1,724,000 Due to General Partner 713,000 805,000 Accrued interest due to General Partner 452,000 435,000 Tenants' deposits and other liabilities 169,000 246,000 - - - - ----------------------------------------------------- ------------------------ ----------------------- Total liabilities 8,592,000 8,849,000 - - - - ----------------------------------------------------- ------------------------ ----------------------- Partners' capital (deficit): Limited partners, 21,585 units issued and outstanding (234,000) (396,000) General Partner (493,000) (493,000) - - - - ----------------------------------------------------- ------------------------ ----------------------- Total partners' capital (deficit) (727,000) (889,000) - - - - ----------------------------------------------------- ------------------------ ----------------------- Total liabilities and partners' capital (deficit) $ 7,865,000 $ 7,960,000 ===================================================== ======================== =======================
See notes to financial statements. Item 1. Financial Statements (continued) PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1995 AND 1994 (Unaudited)
1995 1994 ---- ---- Revenue: Rent $599,000 $568,000 Interest 10,000 12,000 - - - - ----------------------------------------------------------- --------------------- -------------------- Total revenue 609,000 580,000 - - - - ----------------------------------------------------------- --------------------- -------------------- Expenses: Interest - 152,000 Depreciation and amortization 74,000 83,000 Operating 264,000 284,000 Related party 99,000 92,000 General and administrative 10,000 23,000 - - - - ----------------------------------------------------------- --------------------- -------------------- Total expenses 447,000 634,000 - - - - ----------------------------------------------------------- --------------------- -------------------- Net income (loss) $162,000 $(54,000) =========================================================== ===================== ==================== Net income (loss) allocable to limited partners 154,000 $(51,000) =========================================================== ===================== ==================== Net income (loss) allocable to General Partner $ 8,000 $ (3,000) =========================================================== ===================== ==================== Net income (loss) per $500 limited partnership unit- based on 21,585 units outstanding $ 7.51 $ (2.36) =========================================================== ===================== ====================
See notes to financial statements. Item 1. Financial Statements (continued) PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENT OF PARTNERS' CAPITAL (DEFICIT) FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1995 (Unaudited)
Limited Partners General Units Amount Partner Total ----------------- --------------------- ------------------------ --------------------- Balance, beginning of period 21,585 $(388,000) $(501,000) $(889,000) Net Income - 154,000 8,000 162,000 - - - - ------------------------------------------------ --------------------- ------------------------ --------------------- Balance, end of period 21,585 $(234,000) $(493,000) $(727,000) ================================================ ===================== ======================== =====================
See notes to financial statements. Item 1. Financial Statements (continued) PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 1995 AND 1994 (Unaudited)
1995 1994 ---- ---- Cash flows from operating activities: Net income (loss) $ 162,000 $(54,000) - - - - ----------------------------------------------------------------------------------------------- ----------------------- Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 74,000 83,000 Amortization of capitalized interest on debt restructuring - (69,000) Increase in accrued interest 17,000 70,000 Decrease in other assets 7,000 20,000 Decrease in tenants' deposits and other liabilities (77,000) (86,000) - - - - ----------------------------------------------------------------------------------------------- ----------------------- Total adjustments 21,000 18,000 - - - - ----------------------------------------------------------------------------------------------- ----------------------- Net cash provided by (used in) operating activities 183,000 (36,000) - - - - ----------------------------------------------------------------------------------------------- ----------------------- Cash flow from investing activities: Improvements to rental property (9,000) (8,000) - - - - ----------------------------------------------------------------------------------------------- ----------------------- Net cash used in investing activities (9,000) (8,000) - - - - ----------------------------------------------------------------------------------------------- ----------------------- Cash flows from financing activities: Principal payments on notes payable (105,000) (11,000) Principal received on note receivable 53,000 50,000 Principal payments to General Partner (92,000) - - - - - ----------------------------------------------------------------------------------------------- ----------------------- Net cash provided by (used in) financing activities (144,000) 39,000 - - - - ----------------------------------------------------------------------------------------------- ----------------------- Net increase (decrease) in cash and cash equivalents 30,000 (5,000) Cash and cash equivalents, beginning of period 131,000 116,000 - - - - ----------------------------------------------------------------------------------------------- ----------------------- Cash and cash equivalents end of period $161,000 $111,000 =============================================================================================== =======================
See notes to financial statements. Item 1. Financial Statements (continued) PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS MARCH 31, 1995 NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited financial statements contain all adjustments (consisting of normal recurring accruals) which are necessary, in the opinion of management, for a fair presentation. The statements, which do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements, should be read in conjunction with the Partnership's financial statements for the year ended December 31, 1994. NOTE 2 - TRANSACTIONS WITH GENERAL PARTNER AND AFFILIATES Under the partnership agreement, the General Partner and its affiliates may receive compensation for services rendered to the Partnership and may receive reimbursement for certain expenses incurred on behalf of the Partnership. During the three month period ended March 31, 1995, the Partnership made or accrued the following payments to the General Partner or affiliates: Property management fees, charged to related party expense $26,000 Reimbursement of data processing expenses, charged to related party expense 11,000 Interest on advances from the General Partner, based on the prime rate, charged to related party expense expense 17,000 Interest on Promissory note, collateralized by the property Clearlake Village Apartments,charged to related party expense 45,000 -------------------- $99,000 ==================== NOTE 3 - NOTE RECEIVABLE On November 15, 1994, the promissory note receivable in the amount of $515,000, collateralized by a second deed of trust against 1600 Dell Avenue Office complex, was amended for a principal paydown of $15,000 and an agreement to pay an additional $35,000 on or before January 31, 1995. Fully amortized principal and interest payments are due monthly in the amount of $9,863 commencing on December 15, 1994 until maturity on November 15, 1999. As of March 31, 1995, the outstanding balance of the note was $440,000. Item 1. Financial Statements (continued) PROPERTY RESOURCES FUND VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS MARCH 31, 1995 NOTE 4 - Grouse Run Apartments On October 1, 1994, the Grouse Run note payable was amended. The amendment provides for fixed interest at 9.96%, amortized on a 30-year schedule. A principal payment of $800,000 was made by the Partnership concurrent with the effective date of the amendment. The note's maturity date was extended to October 1, 1999. As of March 31, 1995, the amended note's face value principal balance was $3,869,000. The amended note payable is classified as a troubled debt restructuring and, in accordance with Statement of Financial Accounting Standards No. 15, the Partnership is carrying the amended note equal to the total future cash payments payable and is not recognizing interest expense between the restructuring and the maturity of the amended note. NOTE 5- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION For the three month period ended March 31, 1995, the Partnership paid interest on the note payable to affiliate of $45,000. PART I - FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations COMPARISON OF THREE MONTH PERIODS ENDED MARCH 31, 1995 AND 1994 Net income for the quarter ended March 31, 1995 amounted to $162,000, an increase of $216,000 as compared to net loss of $54,000 in 1994. The increase is due to the following factors: an increase in rental revenue of $31,000; a decrease in interest and dividends of $2,000; a decrease in interest expense of $152,000; a decrease in depreciation and amortization of $9,000; a decrease in operating expenses of $20,000; an increase in related party of $7,000, and a decrease in general and administrative expense of $13,000. Rental revenue from the Partnership's properties amounted to $599,000 and $568,000 for the quarter ended March 31, 1995 and 1994, respectively. The increase in rental revenue of $31,000 for the quarter ended March 31, 1995 when compared to the same period in 1994 is attributable to an increase in the average occupancy rate at Clearlake Village Apartments and Space Savers One & Three. For the quarter ended March 31, 1995 and 1994 the average occupancy rate at Clearlake Village Apartments was 92% and 86% and at Space Savers One and Three it was 93% and 90%, respectively. Interest revenue decreased $2,000, due to the reduced balance of the note receivable. Total expenses decreased by $187,000, or 29%, from $634,000 in 1994 to $447,000. The decrease in total expenses is attributable to the following factors: a decrease in interest expense of $152,000, or 100%; a decrease in depreciation and amortization of $9,000, or 11%; a decrease in operating expenses of $20,000, or 7%; an increase in related party expense of $7,000, or 8%; and a decrease in general and administrative expense of $13,000, or 57%. Interest expense decreased $152,000, due to the sale of Space Savers One and Three in June, 1994 and to the amended Grouse Run note payable in October, 1994. The amended Grouse Run note payable is classified as a troubled debt restructuring and, in accordance with Statement of Financial Accounting Standards No. 15, the Partnership is carrying the amended note equal to the total future cash payments payable and is not recognizing interest expense between the restructuring and the maturity of the amended note. Depreciation and amortization expense decreased $9,000, as a result of the sale of Space Savers One and Three in the second quarter of 1994. Operating expenses decreased $20,000, as a result of a decrease in payroll, property taxes and extraordinary expenses. Liquidity and Capital Resources In July, 1983, the Partnership completed a public offering of its limited partnership units with total proceeds of $10,795,500 from the sale of 21,585 limited partnership units. The Partnership acquired five properties with an aggregate cost of $23,526,000. As of March 31, 1995, the Partnership had two operating properties: Clearlake Village Apartments and Grouse Run Apartments. The buildings and the land upon which the buildings are located are owned directly by the Partnership in fee. All Partnership properties are subject to mortgages. PART I - FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources (Continued) As of March 31, 1995, cash and cash equivalents totaled $161,000. As of March 31, 1995, the General Partner had advanced $713,000 plus accrued interest of $452,000 to the Partnership to pay for various capital improvements and to support operating cash flow deficits. The General Partner presently intends to continue to make such advances to the Partnership as necessary. Consequently, management believes that the Partnership's current sources of funds will be adequate to meet both its short-term and long-term capital commitments and operating requirements. The Partnership presently believes that funds available from improved operations and from its note receivable due in 1999 will permit it to repay advances owed to the General Partner. The Partnership also believes that the present trend toward improved operations at its properties will permit it to repay the Grouse Run note payable due in 1999 either from the sale of a property or a loan refinancing. Impact of Inflation The Partnership's management believes that inflation may have a positive effect on the Partnership's property portfolio, but this effect generally will not be fully realized until such properties are sold or exchanged. PART II - OTHER INFORMATION Item 6. Exhibits and Reports an Form 8-K (a) Not applicable (b) Reports on Form 8-K No reports on Form 8-K were filed by the Registrant during the quarter ended March 31, 1995. SIGNATURE 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. PROPERTY RESOURCES FUND VI By: /s/ David P. Goss Chief Executive Officer Date: May 12, 1995 EX-27 2
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REGISTRANT'S CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED MARCH 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1995 MAR-31-1995 161 0 0 0 0 0 11,071 3,912 7,865 0 0 0 0 0 0 7,865 0 609 0 447 0 0 0 0 0 0 0 0 0 162 0 0
-----END PRIVACY-ENHANCED MESSAGE-----