-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CQGklWlE62BUCw+huPF8EJjRdjBc8tJM2jH82P4VkjZMfD/pzwq6qi9Teab0y4nA 9CkRQT6S5aKnmRGqGwJWVQ== 0000950148-96-001811.txt : 19960820 0000950148-96-001811.hdr.sgml : 19960820 ACCESSION NUMBER: 0000950148-96-001811 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960819 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: REAL ESTATE ASSOCIATES LTD VI CENTRAL INDEX KEY: 0000715578 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953778627 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13112 FILM NUMBER: 96617475 BUSINESS ADDRESS: STREET 1: 9090 WILSHIRE BLVD STE 201 CITY: BEVERLY HILLS STATE: CA ZIP: 90211 BUSINESS PHONE: 3102782191 MAIL ADDRESS: STREET 1: 9090 WILSHIRE BLVD SUITE 201 CITY: BEVERLY HILLS STATE: CA ZIP: 90211 10-Q 1 FORM 10-Q ENDED JUNE 30, 1996 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 FOR QUARTER ENDED JUNE 30, 1996 COMMISSION FILE NUMBER 2-82090 REAL ESTATE ASSOCIATES LIMITED VI A CALIFORNIA LIMITED PARTNERSHIP I.R.S. EMPLOYER IDENTIFICATION NO. 95-3778627 9090 Wilshire Blvd., Suite 201, Beverly Hills, CA. 90211 Registrant's Telephone Number, Including Area Code (310) 278-2191 Securities Registered Pursuant to Section 12(b) or 12(g) of the Act NONE Indicate by check mark whether the registrant (1) has filed all reports required to be filed with the Commission by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve 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 --- ---- 2 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) INDEX TO FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1996 PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Consolidated Balance Sheets, June 30, 1996 and December 31, 1995 . . . . . . . . 1 Consolidated Statements of Operations, Six and Three Months Ended, June 30, 1996 and 1995 . 2 Consolidated Statement of Partners' Deficiency Six Months Ended June 30, 1996 . . . . . . . . . . . 3 Consolidated Statements of Cash Flows Six Months Ended June 30, 1996 and 1995 . . . . . . 4 Notes to Consolidated Financial Statements . . . . . . . . 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation . . . . . . . . . 10 PART II. OTHER INFORMATION Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . 12 Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 12 Signatures . . . . . . . . . . . . . . . . . . . . . . . 13
3 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) BALANCE SHEETS JUNE 30, 1996 AND DECEMBER 31, 1995 ASSETS
1996 1995 (Unaudited) (Audited) ------------ ------------ INVESTMENTS IN LIMITED PARTNERSHIPS (Note 2) $ 5,856,864 $ 5,619,146 RENTAL PROPERTY, net of accumulated depreciation (Notes 1 and 3) 3,309,130 7,285,002 CASH AND CASH EQUIVALENTS (Note 1) 5,426,374 4,895,340 CASH, restricted (Note 1) 84,338 84,338 SHORT TERM INVESTMENTS (NOTE 1) 125,000 125,000 RECEIVABLES FROM LIMITED PARTNERSHIPS (Note 2) 31,000 1,000 OTHER ASSETS 66,217 327,313 ------------ ------------ TOTAL ASSETS $ 14,898,923 $ 18,337,139 ============ ============ LIABILITIES AND PARTNERS' DEFICIENCY LIABILITIES: Mortgage notes payable related to properties (Notes 3 and 7) $ 4,838,169 $ 9,890,564 Notes payable and amounts due for partnership interests (Notes 4 and 7) 5,795,000 5,795,000 Accrued interest payable (Notes 4 and 7) 5,391,269 5,253,980 Accounts payable 30,481 193,501 Other liabilities 33,425 131,171 ------------ ------------ 16,088,344 21,264,216 ------------ ------------ COMMITMENTS AND CONTINGENCIES (Notes 2, 5 and 6) PARTNERS' DEFICIENCY: General partners (363,083) (380,460) Limited partners (826,338) (2,546,617) ------------ ------------ (1,189,421) (2,927,077) ------------ ------------ TOTAL LIABILITIES AND PARTNERS' EQUITY $ 14,898,923 $ 18,337,139 ============ ============
The accompanying notes are an integral part of these consolidated financial statements. 1 4 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) CONSOLIDATED STATEMENTS OF OPERATIONS SIX AND THREE MONTHS ENDED JUNE 30, 1996 AND 1995 (Unaudited)
Six months Three months Six months Three months ended ended ended ended June 30, 1996 June 30, 1996 June 30, 1995 June 30, 1995 ------------- ------------- ------------- ------------- RENTAL OPERATIONS: Revenues $ 696,313 $ 255,314 $ 1,351,948 $ 672,989 ------------- ------------- ------------- ------------- Expenses: Operating 382,876 114,439 770,422 383,298 Depreciation and amortization (Note 3) 143,044 43,614 195,856 97,928 Interest 347,411 133,676 508,541 254,171 ------------- ------------- ------------- ------------- 873,331 291,729 1,474,819 735,397 ------------- ------------- ------------- ------------- LOSS FROM RENTAL OPERATIONS (177,018) (36,415) (122,871) (62,408) ------------- ------------- ------------- ------------- PARTNERSHIP OPERATIONS: Interest income 77,588 41,382 91,489 60,304 ------------- ------------- ------------- ------------- Expenses: Management fees - general partner 262,846 128,973 267,745 133,872 General and administrative 165,860 62,140 139,287 56,160 Interest expense 259,825 129,913 259,825 129,913 ------------- ------------- ------------- ------------- 688,531 321,026 666,857 319,945 ------------- ------------- ------------- ------------- LOSS FROM PARTNERSHIP OPERATIONS (610,943) (279,644) (575,368) (259,641) ------------- ------------- ------------- ------------- GAIN FROM SALE OF RENTAL PROPERTY (Note 1) 2,050,417 - - - EQUITY IN INCOME OF LIMITED PARTNERSHIPS AND AMORTI- ZATION OF ACQUISITION COSTS 346,000 173,000 186,000 93,000 DISTRIBUTIONS FROM LIMITED PARTNERSHIPS RECOGNIZED AS INCOME (Note 2) 129,200 47,898 225,183 225,183 ------------- ------------- ------------- ------------- NET INCOME (LOSS) $ 1,737,656 $ (95,161) $ (287,056) $ (3,866) ============= ============= ============= ------------- NET INCOME (LOSS) PER LIMITED PARTNERSHIP INTEREST (Note 1) $ 103 $ (6) $ (17) $ - ============= ============= ============= -------------
The accompanying notes are an integral part of these consolidated financial statements. 2 5 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) CONSOLIDATED STATEMENT OF PARTNERS' DEFICIENCY SIX MONTHS ENDED MARCH 31, 1996 (Unaudited)
General Limited Partners Partners Total ------------ ------------ ------------ PARTNERSHIP INTERESTS, June 30, 1996 16,810 ============ DEFICIENCY, January 1, 1996 $ (380,460) $(2,546,617) $(2,927,077) Net income for the six months ended June 30, 1996 17,377 1,720,279 1,737,656 ------------ ------------ ------------ DEFICIENCY, June 30, 1996 $ (363,083) $ (826,338) $(1,189,421) ============ ============ ============
The accompanying notes are an integral part of these consolidated financial statements 3 6 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED MARCH 31, 1996 AND 1995 (Unaudited)
1996 1995 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 1,737,656 $ (287,056) Adjustments to reconcile net income (loss) to net cash used in operating activities: Equity in (income) of limited partnerships and amortization of acquisition costs (346,000) (186,000) Depreciation 143,044 195,856 Increase in receivables from limited partnerships (30,000) (14,500) Decrease in other assets 261,096 - Increase in accrued interest payable 137,289 160,419 (Decrease) increase in accounts payable (163,020) 6,393 Decrease in other liabilities (97,746) - Gain on sale of rental property (2,050,417) - ------------ ------------ Net cash used in operating activities (408,098) (124,888) ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Distributions to limited partnerships recognized as as a return of capital 108,282 251,062 Proceeds from sale of rental property 5,883,245 - ------------ ------------ Net cash provided by investing activities 5,991,527 251,062 ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Payment of mortgages (5,052,395) - ------------ ------------ NET INCREASE IN CASH AND CASH EQUIVALENTS 531,034 126,174 CASH AND CASH EQUIVALENTS, beginning of period 4,895,340 5,072,944 ------------ ------------ CASH AND CASH EQUIVALENTS, end of period $ 5,426,374 $ 5,199,118 ============ ============ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the year for interest $ 122,536 $ 271,637 ============ ============
The accompanying notes are an integral part of these consolidated financial statements. 4 7 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL The information contained in the following notes to the financial statements is condensed from that which would appear in the audited annual financial statements; accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and related notes thereto contained in the annual report for the year ended December 31, 1995 prepared by Real Estate Associates Limited VI and Subsidiaries (the "Partnership"). National Partnership Investments Corp. ("NAPICO") is the corporate general partner of the Partnership. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire year. In the opinion of the Partnership, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring accruals) necessary to present fairly the financial position of the Partnership at June 30, 1996 and the results of operations for the six and three months then ended and changes in cash flows for the six months then ended. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Real Estate Associates Limited VI and its majority-owned general partnerships. All significant intercompany accounts and transactions have been eliminated in consolidation. METHOD OF ACCOUNTING FOR INVESTMENT IN THE UNCONSOLIDATED LIMITED PARTNERSHIPS The investments in unconsolidated limited partnerships are accounted for on the equity method. Acquisition, selection and other costs related to the acquisition of the projects are capitalized as part of the investment account. NET LOSS PER LIMITED PARTNERSHIP INTEREST Net loss per limited partnership interest was computed by dividing the limited partners' share of net loss by the number of limited partnership interests outstanding during the year. The number of limited partnership interests was 16,810 for the periods presented. 5 8 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of unrestricted cash and bank certificates of deposit with maturities of three months or less. Restricted cash consist of tenants' security and escrow deposits and mortgage impounds. SHORT-TERM INVESTMENTS Short-term investments consit of bank certificates of deposit with original maturities ranging from more than three months to twelve months. The fair value of these securities, which have been classified as held for sale, approximates their carrying value. INCOME TAXES No provision has been made for income taxes in the accompanying financial statements since such taxes, if any, are the liability of the individual partners. RENTAL PROPERTY AND DEPRECIATION Rental property is stated at cost. Depreciation is provided on the straight-line and accelerated methods over the estimated useful lives of the buildings and equipment. Pursuant to a purchase agreement in which the Partnership acquired its interest from withdrawing general partners, certain rental property was revalued to reflect the purchase price. Substantially all of the apartment units are leased on a month-to-month basis. On February 2, 1996, one of the consolidated general partnerships (Drexel Park) sold its property for $6,300,000. The property had an outstanding loan of approximately $5,050,000 and a net book value of approximately $3,900,000. After payment of closings costs, the Partnership realized a gain of approximately $2,050,000 and cash of $837,000. NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS As of June 30, 1996, the Partnership holds limited partnership interests in 27 local limited partnerships and a general partner interest in one general partnership. In addition, REAL VI holds a general partner interest in Real Estate Associates III ("REA III"), a California general partnership. NAPICO is also a general partner in REA III. REA III, in turn, holds limited partner interests in seven local limited partnerships. In total, therefore, the Partnership holds interests, either directly or indirectly through REA III, in 34 limited partnerships and one general partnership which own residential rental projects consisting 6 9 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIP (CONTINUED) of 2,832 apartment units. The mortgage loans of these projects are insured by various governmental agencies. The Partnership, as a limited partner, is entitled to between 80 percent and 99 percent of the profits and losses of the limited partnerships it has invested in directly. The Partnership is also entitled to 99.9 percent of the profits and losses of REA III. REA III holds a 99 percent interest in each of the limited partnerships in which it has invested. As of June 30, 1996, the Partnership is obligated, if certain conditions are met, to invest an additional $90,500 in its investee partnerships at various times in the future. This amount has not been recorded as a liability in the accompanying financial statements. Equity in losses of unconsolidated limited partnerships is recognized in the financial statements until the limited partnership investment account is reduced to a zero balance or to a negative amount equal to further capital contributions required. Losses incurred after the limited partnership investment account is reduced to zero are not recognized. Distributions from the unconsolidated limited partnerships are accounted for as a return of capital until the investment balance is reduced to zero. Subsequent distributions received are recognized as income. The following is a summary of the investment in unconsolidated limited partnerships as of June 30, 1996: Balance, beginning of period $5,619,146 Equity in income of limited partnerships 404,000 Amortization of acquisition costs (58,000) Cash distributions recognized as a return of capital (108,282) ------------- Balance, end of period $5,856,864 ==========
The following are unaudited combined estimated statements of operations for the six months ended June 30, 1996 and 1995 of the unconsolidated limited partnerships in which the Partnership has investments:
Six months Three months Six months Three months ended ended ended ended June 30, 1996 June 30, 1996 June 30, 1995 June 30, 1995 ------------- ------------- ------------- ------------- Income: Rental and other $10,286,000 $5,143,000 $10,330,000 $ 5,165,000 ----------- ---------- ----------- ----------- Expenses: Depreciation 1,765,000 882,000 1,760,000 880,000 Interest 2,860,000 1,430,000 2,976,000 1,488,000 Operating expenses 6,892,000 3,446,000 6,412,000 3,206,000 --------- --------- ------------- ----------- Total expenses 11,517,000 5,758,000 11,148,800 5,574,000 ---------- --------- ------------ ----------- Net loss $(1,231,000) $ (615,000) $ (818,000) $ (409,000) ============ =========== ============= ===========
7 10 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 1996 NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIP (CONTINUED) NAPICO, or one of its affiliates, is the general partner and property management agent for certain of the limited partnerships included above. NOTE 3 - MORTGAGE NOTES PAYABLE The mortgage note outstanding at June 30, 1996 has an interest rate of 9.5 percent per annum, with principal and interest payments due monthly. The note matures in September 1996 and is in the process of being refinanced. The Partnership is of the opinion that it will obtain financing at comparable terms. The note is collateralized by the underlying rental property. NOTE 4 - NOTES PAYABLE Certain of the Partnership's investments involved purchases of partnership interests from partners who subsequently withdrew from the operating partnership. The purchase of these interests provides for additional cash payments of approximately $325,000 based upon specified events as outlined in the purchase agreements. Such amounts have been recorded as liabilities. In addition, the Partnership is obligated on non-recourse notes payable of $5,470,000 which bear interest at 9.5 percent and have principal maturities ranging from December 1996 to December 2012. The notes and related interest are payable from cash flow generated from operations of the related rented properties as defined in the notes. These obligations are collateralized by the Partnership's investments in the limited partnerships. Unpaid interest equal to $5,391,269 at June 30, 1996, is due at maturity of the notes. NOTE 5 - MANAGEMENT FEES AND EXPENSES DUE TO GENERAL PARTNER Under the terms of the Restated Certificate and Agreement of Limited Partnership, the Partnership is obligated to the corporate general partner for an annual management fee of approximately .4 percent of the original invested assets of the limited partnerships. Invested assets are defined as the costs of acquiring project interests, including the proportionate amount of the mortgage loans related to the Partnership's interests in the capital accounts of the respective partnerships. This fee was approximately $262,845 for the six months ended June 30, 1996 and 1995. The Partnership reimburses NAPICO for certain expenses. The reimbursement to NAPICO was approximately $22,000 for the six months ended June 30, 1996 and 1995, and is included in general and administrative expenses. 8 11 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1996 NOTE 6 - CONTINGENCIES The corporate general partner of the Partnership and the Partnership are plaintiffs in various lawsuits and have also been named defendants in other lawsuits arising from transactions in the ordinary course of business. In the opinion of management and the corporate general partner, the claims will not result in any material liability to the Partnership. NOTE 7 - FAIR VALUE OF FINANCIAL INSTRUMENTS Statement of Financial Accounting Standards No. 107, "Disclosure about Fair Value of Financial Instruments," requires disclosure of fair value information about financial instruments, when it is practicable to estimate that value. The mortgage notes payable are insured by HUD and are collateralized by the rental properties. The operations generated by the properties and investee limited partnerships are subject to various government rules, regulations and restrictions which make it impracticable to estimate the fair value of the mortgage notes payable and related accrued interest. The carrying amount of other assets and liabilities reported on the balance sheets that require such disclosure approximates fair value due to their short-term maturity. 9 12 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) JUNE 30, 1996 ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES The Partnership's primary sources of funds include interest income on short term investments and distributions from limited partnerships in which the Partnership has invested. It is not expected that any of the local limited partnerships in which the Partnership has invested will generate cash flow sufficient to provide for distributions to limited partners in any material amount. The Partnership has committed as of June 30, 1996 to investments in limited partnerships requiring additional capital contributions of $90,500. The Partnership normally makes its capital contributions to the local limited partnerships in stages, over a period of two to five years, with each contribution due on a specified date, provided that certain conditions regarding construction or operation of the project have been fulfilled. The Partnership has no significant commitments once the capital contributions have been made. RESULTS OF OPERATIONS On February 2, 1996, one of the consolidated general partnerships (Drexel Park) sold its property for $6,300,000. The property had an outstanding loan of approximately $5,050,000 and a net book value of approximately $3,900,000. After payment of closings costs, the Partnership realized a gain of approximately $2,050,000 and cash of $837,000. Rental operations consist primarily of rental income and depreciation expense, debt service, and normal operating expenses to maintain the properties. Variances in rental operations from the prior year to the current year relate to the sale of the Drexel Property. Partnership revenues consist primarily of interest income earned on certificates of deposit and other temporary investment of funds not required for investment in local partnerships. Operating expenses consist primarily of recurring general and administrative expenses and professional fees for services rendered to the Partnership. In addition, an annual Partnership management fee in an amount equal to .5 percent of invested assets is payable to the corporate general partner. General and administrative expenses are higher in 1996 than in 1995 primarily because of expenditures for litigation regarding a dispute with a local partnership general partner. The Partnership accounts for its investments in the local limited partnerships on the equity method, thereby adjusting its investment balance by its proportionate share of the income or loss of the local limited partnerships. Losses incurred after the limited partnership investment account is reduced to zero are not recognized. Distributions received from limited partnerships are recognized as return of capital until the investment balance has been reduced to zero or to a negative amount equal to future capital contributions required. Subsequent distributions received are recognized as income. 10 13 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) JUNE 30, 1996 ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS (CONTINUED) Except for certificates of deposit and money market funds, the Partnership's investments are entirely from interests in other limited and general partnerships owning government assisted projects. Funds temporarily not required for such investments in projects are invested providing interest income as reflected in the statement of operations. These funds can be converted to cash to meet obligations as they arise. The Partnership intends to continue investing available funds in this manner. 11 14 REAL ESTATE ASSOCIATES LIMITED VI (A CALIFORNIA LIMITED PARTNERSHIP) JUNE 30, 1996 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS The corporate general partner is a plaintiff or defendant in several suits, including the following related to REAL VI as of June 30, 1996. Real Estate Associates Limited VI vs. Jansen Properties of Florida, Inc., Jeffrey Auslander and Peck, Shaffer & Williams, as Escrow Agents, Case No. 95-7005 AO, Circuit Court, 15th Judicial Circuit, Palm Beach County, Florida. On September 5, 1995, REAL VI filed a declaratory judgment action claiming that it is entitled to $376,500 of funds presently held in escrow which funds were realized from a refinancing of an apartment project in Boynton Beach, Florida in which REAL VI is the limited partner. The contestants to the escrow fund, in addition to REAL VI, were the general partners, Jeffrey Auslander and Jansen Properties of Florida, Inc., and Keith Rothchild, a judgment creditor of Auslander. In connection with REAL VI's litigation the parties reached a settlement during the period wherein Messrs. Auslander and Jansen were paid $180,000 as a distribution and they resigned as General Partners of the Local Partnership. In connection with their resignation, Rosewood Corporation (an affiliate of your General Partner) assumed the role of local operating general partner. Additional proceeds of approximately $150,000 were spent to cure deferred maintenance at the property and the balance of approximately $46,500 (less fees and costs) was distributed to REAL VI. The Property is operating at a breakeven level of operations. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) No exhibits are required per the provision of item 7 of regulation S-K. 12 15 REAL ESTATE ASSOCIATES LIMITED VI (A LIMITED PARTNERSHIP) JUNE 30, 1996 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. REAL ESTATE ASSOCIATES LIMITED VI AND SUBSIDIARIES (a California limited partnership) By: National Partnership Investments Corp., General Partner Date: ------------------------------------------------------- By: ----------------------------------------------------- Bruce Nelson President Date: ------------------------------------------------------ By: ----------------------------------------------------- Shawn Horwitz Executive Vice President and Chief Financial Officer 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE PARTNERSHIP'S STATEMENTS OF EARNINGS AND BALANCE SHEETS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-1996 JAN-01-1996 JUN-30-1996 5,426,374 0 31,000 0 0 5,732,929 5,800,191 2,491,061 14,898,923 63,906 0 0 0 0 (1,189,421) 14,898,923 0 3,299,518 0 0 954,626 0 607,236 1,737,656 0 1,737,656 0 0 0 1,737,656 0 0
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