-----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, DtixQ+RailTVvCr+31quQM+MqA2vg9BBgl7f3cVe+hmbyl245NJ5KfPBxagvsCLt 69OdAPqNWrAU8HQoeEM2Vw== 0000711642-00-000168.txt : 20000516 0000711642-00-000168.hdr.sgml : 20000516 ACCESSION NUMBER: 0000711642-00-000168 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SHELTER PROPERTIES VI LIMITED PARTNERSHIP CENTRAL INDEX KEY: 0000730013 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 570755618 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-13261 FILM NUMBER: 632296 BUSINESS ADDRESS: STREET 1: 55 BEATTIE PLACE STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 3037578101 MAIL ADDRESS: STREET 1: 55 BEATTIE PLACE STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 10QSB 1 FIRST QUARTER OF 2000 FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Quarterly or Transitional Report U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB (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, 2000 [ ] 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 0-13261 SHELTER PROPERTIES VI (Exact name of small business issuer as specified in its charter) South Carolina 57-0755618 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 55 Beattie Place, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (864) 239-1000 (Issuer's telephone number) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS a) SHELTER PROPERTIES VI BALANCE SHEET (Unaudited) (in thousands, except per unit data) March 31, 2000 Assets Cash and cash equivalents $ 2,779 Receivables and deposits 271 Restricted escrows 1,107 Other assets 390 Investment properties: Land $ 4,950 Buildings and related personal property 50,678 55,628 Less accumulated depreciation (29,811) 25,817 $ 30,364 Liabilities and Partners' (Deficit) Capital Liabilities Accounts payable $ 140 Tenant security deposit liabilities 211 Accrued property taxes 709 Other liabilities 276 Mortgage notes payable 25,138 Partners' (Deficit) Capital General partners $ (306) Limited partners (42,324 units issued and outstanding) 4,196 3,890 $ 30,364 See Accompanying Notes to Financial Statements b) SHELTER PROPERTIES VI STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 2000 1999 Revenues: Rental income $2,597 $2,436 Other income 174 170 Total revenues 2,771 2,606 Expenses: Operating 1,148 1,113 General and administrative 108 86 Depreciation 613 510 Interest 598 585 Property taxes 285 231 Total expenses 2,752 2,525 Net income $ 19 $ 81 Net income allocated to general partners (1%) $ -- $ 1 Net income allocated to limited partners (99%) 19 80 $ 19 $ 81 Net income per limited partnership unit $ .45 $ 1.89 See Accompanying Notes to Financial Statements c) SHELTER PROPERTIES VI STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Units Partners Partners Total Original capital contributions 42,324 $ 2 $42,324 $42,326 Partners' (deficit) capital at December 31, 1999 42,324 $ (306) $ 4,177 $ 3,871 Net income for the three months ended March 31, 2000 -- -- 19 19 Partners' (deficit) capital at March 31, 2000 42,324 $ (306) $ 4,196 $ 3,890 See Accompanying Notes to Financial Statements
d) SHELTER PROPERTIES VI STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Three Months Ended March 31, 2000 1999 Cash flows from operating activities: Net income $ 19 $ 81 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 613 510 Amortization of discounts and loan costs 100 72 Change in accounts: Receivables and deposits 391 165 Other assets (45) (51) Accounts payable (70) (42) Tenant security deposit liabilities (4) 16 Accrued property taxes 54 (204) Other liabilities (28) (14) Net cash provided by operating activities 1,030 561 Cash flows from investing activities: Property improvements and replacements (142) (151) Net (deposits to) withdrawals from restricted escrows (341) 435 Net cash (used in) provided by investing activities (483) 284 Cash flows from financing activities: Payments on mortgage notes payable (241) (226) Distribution paid to partners (428) -- Net cash used in financing activities (669) (226) Net (decrease) increase in cash and cash equivalents (122) 619 Cash and cash equivalents at beginning of period 2,901 1,323 Cash and cash equivalents at end of period $ 2,779 $ 1,942 Supplemental disclosure of cash flow information: Cash paid for interest $ 498 $ 513 See Accompanying Notes to Financial Statements
e) SHELTER PROPERTIES VI NOTES TO FINANCIAL STATEMENTS (Unaudited) Note A - Basis of Presentation The accompanying unaudited financial statements of Shelter Properties VI (the "Partnership" or "Registrant") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310 (b) of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of Shelter Realty VI Corporation (the "Corporate General Partner"), all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2000, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2000. For further information, refer to the financial statements and footnotes thereto included in the Partnership's Annual Report on Form 10-KSB for the year ended October 31, 1999. Change in Fiscal Year End: The Partnership elected to change its fiscal year end from October 31 to December 31, as announced in its Form 8-K filed on January 12, 2000. This quarterly report presents the unaudited results of the Partnership's operations for the first quarter ended March 31, 2000 and the three month period ended March 31, 1999. Note B - Transfer of Control Pursuant to a series of transactions which closed on October 1, 1998 and February 26, 1999, Insignia Financial Group, Inc. and Insignia Properties Trust merged into Apartment Investment and Management Company ("AIMCO"), a publicly traded real estate investment trust, with AIMCO being the surviving corporation (the "Insignia Merger"). As a result, AIMCO acquired 100% ownership interest in the Corporate General Partner. The Corporate General Partner does not believe that this transaction has had or will have a material effect on the affairs and operations of the Partnership. Note C - Reconciliation of Cash Flows The following is a reconciliation of the subtotal on the accompanying statements of cash flows captioned "net cash provided by operating activities" to "net cash used in operations", as defined in the partnership agreement of the Partnership (the "Partnership Agreement"). However, "net cash used in operations" should not be considered an alternative to net income as an indicator of the Partnership's operating performance or to cash flows as a measure of liquidity.
Three Months Ended March 31, 2000 1999 (in thousands) Net cash provided by operating activities $ 1,030 $ 561 Payments on mortgage notes payable (241) (226) Property improvements and replacements (142) (151) Change in restricted escrows, net (341) 435 Changes in reserves for net operating liabilities (298) 102 Additional reserves (8) (721) Net cash used in operations $ -- $ --
The Corporate General Partner believed it to be in the best interest of the Partnership to reserve net cash from operations of approximately $8,000 and $721,000 at March 31, 2000 and 1999, respectively, to fund continuing capital improvements and repairs at the Partnership's six investment properties. Note D - Transactions with Affiliated Parties The Partnership has no employees and is dependent on the Corporate General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for certain payments to affiliates for services and reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following transactions with the Corporate General Partner and/or its affiliates were incurred for each of the three months ended March 31, 2000 and 1999: 2000 1999 (in thousands) Property management fees (included in operating expenses) $140 $133 Reimbursement for services of affiliates (included in general and administrative expenses and investment properties) 45 50 During the three months ended March 31, 2000 and 1999, affiliates of the Corporate General Partner were entitled to receive 5% of gross receipts from all of the Registrant's properties as compensation for providing property management services. The Registrant paid to such affiliates approximately $140,000 and $133,000 for the three months ended March 31, 2000 and 1999, respectively. Affiliates of the Corporate General Partner received reimbursements of accountable administrative expenses amounting to approximately $45,000 and $50,000 for the three months ended March 31, 2000 and 1999, respectively. AIMCO and its affiliates currently own 24,225 limited partnership units in the Partnership representing approximately 57.24% of the outstanding units. A number of these units were acquired pursuant to tender offers made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates will make one or more additional offers to acquire additional limited partnership interests in the Partnership for cash or in exchange for units in the operating partnership of AIMCO. Under the Partnership Agreement, unitholders holding a majority of the Units are entitled to take action with respect to a variety of matters. As a result of its ownership of approximately 57.24% of the outstanding units, AIMCO is in a position to influence all voting decisions with respect to the Registrant. When voting on matters, AIMCO would in all likelihood vote the Units it acquired in a manner favorable to the interest of the Corporate General Partner because of their affiliation with the Corporate General Partner. Note E - Distributions During the two months ended December 31, 1999, a distribution was approved and accrued for approximately $428,000 (approximately $424,000 to the limited partners, $10.02 per limited partnership unit) from operations. The distribution was paid during the three months ended March 31, 2000. No distributions were declared or paid during the three months ended March 31, 1999. Note F - Segment Reporting Description of the types of products and services from which the reportable segment derives its revenues: The Partnership has one reportable segment: residential properties consisting of six apartment complexes located in five states throughout the United States as follows: one each in Georgia, Iowa, Florida, and Colorado, and two in North Carolina. The Partnership rents apartment units to tenants for terms that are typically twelve months or less. Measurement of segment profit or loss: The Partnership evaluates performance based on segment profit (loss) before depreciation. The accounting policies of the reportable segment are the same as those described in the summary of significant accounting policies in the Partnership's Annual Report on Form 10-KSB for the year ended October 31, 1999. Factors management used to identify the Partnership's reportable segment: The Partnership's reportable segment consists of investment properties that offer similar products and services. Although each of the investment properties are managed separately, they have been aggregated into one segment as they provide services with similar types of products and customers. Segment information for the three month period ended March 31, 2000 and 1999, is shown in the tables below (in thousands). The "Other" column includes Partnership administration related items and income and expense not allocated to the reportable segment. 2000 Residential Other Totals Rental income $ 2,597 $ -- $ 2,597 Other income 162 12 174 Interest expense 598 -- 598 Depreciation 613 -- 613 General and administrative expense -- 108 108 Segment profit (loss) 115 (96) 19 Total assets 29,967 397 30,364 Capital expenditures for investment properties 142 -- 142 1999 Residential Other Totals Rental income $ 2,436 $ -- $ 2,436 Other income 161 9 170 Interest expense 585 -- 585 Depreciation 510 -- 510 General and administrative expense -- 86 86 Segment profit (loss) 158 (77) 81 Total assets 29,245 1,328 30,573 Capital expenditures for investment properties 151 -- 151 Note G - Legal Proceedings In March 1998, several putative unit holders of limited partnership units of the Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia Financial Group, Inc., et al. in the Superior Court of the State of California for the County of San Mateo. The plaintiffs named as defendants, among others, the Partnership, the Corporate General Partner and several of their affiliated partnerships and corporate entities. The action purports to assert claims on behalf of a class of limited partners and derivatively on behalf of a number of limited partnerships (including the Partnership) which are named as nominal defendants, challenging the acquisition by Insignia Financial Group, Inc. ("Insignia") and entities which were, at one time, affiliates of Insignia ("Insignia Affiliates") of interests in certain general partner entities, past tender offers by Insignia Affiliates to acquire limited partnership units, the management of partnerships by Insignia Affiliates and the Insignia Merger (see "Note B - Transfer of Control"). The plaintiffs seek monetary damages and equitable relief, including judicial dissolution of the Partnership. On June 25, 1998, the Corporate General Partner filed a motion seeking dismissal of the action. In lieu of responding to the motion, the plaintiffs have filed an amended complaint. The Corporate General Partner filed demurrers to the amended complaint which were heard February 1999. Pending the ruling on such demurrers, settlement negotiations commenced. On November 2, 1999, the parties executed and filed a Stipulation of Settlement, settling claims, subject to final court approval, on behalf of the Partnership and all limited partners who own units as of November 3, 1999. Preliminary approval of the settlement was obtained on November 3, 1999 from the Superior Court of the State of California, County of San Mateo, at which time the Court set a final approval hearing for December 10, 1999. Prior to the December 10, 1999 hearing the Court received various objections to the settlement, including a challenge to the Court's preliminary approval based upon the alleged lack of authority of class plaintiffs' counsel to enter the settlement. On December 14, 1999, the Corporate General Partner and its affiliates terminated the proposed settlement. Certain plaintiffs have filed a motion to disqualify some of the plaintiffs' counsel in the action. The Corporate General Partner does not anticipate that costs associated with this case will be material to the Partnership's overall operations. The Partnership is unaware of any other pending or outstanding litigation that is not of a routine nature arising in the ordinary course of business. Item 2. Management's Discussion and Analysis or Plan of Operation The matters discussed in this Form 10-QSB contain certain forward-looking statements and involve risks and uncertainties (including changing market conditions, competitive and regulatory matters, etc.) detailed in the disclosures contained in this Form 10-QSB and the other filings with the Securities and Exchange Commission made by the Registrant from time to time. The discussion of the Registrant's business and results of operations, including forward-looking statements pertaining to such matters, does not take into account the effects of any changes to the Registrant's business and results of operations. Accordingly, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including those identified herein. The Partnership's investment properties consist of six apartment complexes. The following table sets forth the average occupancy of the properties for each of the three months ended March 31, 2000 and 1999: Average Occupancy Property 2000 1999 Rocky Creek Apartments Augusta, Georgia 92% 91% Carriage House Apartments Gastonia, North Carolina 93% 91% Nottingham Square Apartments Des Moines, Iowa 97% 95% Foxfire/Barcelona Apartments Durham, North Carolina (1) 92% 95% River Reach Apartments Jacksonville, Florida 95% 93% Village Gardens Apartments Fort Collins, Colorado (2) 95% 99% (1) The decrease in average occupancy at Foxfire/Barcelona Apartments is due to the renting, during the three months ended March 31, 1999, of corporate units to a construction company that was building a hospital in the area. The construction company is no longer renting such units. (2) The decrease in average occupancy at Village Gardens Apartments is due to a change in demographics of the market area. Results of Operations The Partnership realized net income of approximately $19,000 for the three months ended March 31, 2000, compared to net income of approximately $81,000 for the corresponding period in 1999. The decrease in net income for the three month period ended March 31, 2000, is primarily attributable to an increase in total expenses partially offset by an increase in total revenues. Total revenues increased during the three month period ended March 31, 2000, primarily as a result of an increase in rental income. Rental income increased due to an increase in average rental rates at all of the Partnership's properties, reduced concession costs at Rocky Creek, Carriage House and Nottingham Apartments and reduced bad debt expense at Carriage House, Nottingham and Foxfire/Barcelona Apartments, which more than offset reductions in occupancy at Foxfire/Barcelona Apartments and Village Gardens Apartments. The increase in total expenses during the three month period ended March 31, 2000 is primarily attributable to an increase in depreciation, general and administrative, and property tax expenses. Depreciation expense increased due to capital improvements completed during the past twelve months which are now being depreciated. General and administrative expenses increased due to an increase in professional fees necessary to operate the Partnership. Included in general and administrative expenses at both March 31, 2000 and 1999, are reimbursements to the Corporate General Partner allowed under the Partnership Agreement associated with the quarterly and annual communications with investors and regulatory agencies and the annual audit and appraisals required by the Partnership Agreement are also included. Property tax expense increased due to the timing of the receipt of tax bills. As part of the ongoing business plan of the Partnership, the Corporate General Partner monitors the rental market environment of each of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the Corporate General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening market conditions, there is no guarantee that the Corporate General Partner will be able to sustain such a plan. Liquidity and Capital Resources At March 31, 2000, the Partnership had cash and cash equivalents of approximately $2,779,000 as compared to approximately $1,942,000 at March 31, 1999. Cash and cash equivalents decreased approximately $122,000 for the three months ended March 31, 2000 from the Partnership's year end of December 31, 1999. The decrease was due to approximately $483,000 of cash used in investing activities and approximately $669,000 of cash used in financing activities largely offset by approximately $1,030,000 of cash provided by operating activities. Cash used in investing activities consisted primarily of net deposits to restricted escrows maintained by the mortgage lender and, to a lesser extent, property improvements, and replacements. Cash used in financing activities consisted primarily of distributions paid to partners and, to a lesser extent, payments of principal made on the mortgages encumbering the Registrant's properties. The Registrant invests its working capital reserves in money market accounts. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the investment properties to adequately maintain the physical assets and other operating needs of the Partnership and to comply with Federal, state, local, legal, and regulatory requirements. Capital improvements planned for each of the Registrant's properties are detailed below. Rocky Creek Approximately $92,000 has been budgeted for capital improvements at Rocky Creek Apartments for the year 2000 consisting primarily of carpet and vinyl replacement, air conditioning unit replacements and appliance replacements. During the three months ended March 31, 2000, the Partnership expended approximately $40,000 for capital improvements at Rocky Creek primarily consisting of carpet and vinyl replacement, other building enhancements, and roof replacement. The improvements were funded from Partnership operating cash and reserves. Carriage House Approximately $34,000 has been budgeted for capital improvement at Carriage House Apartments for the year 2000 consisting primarily of carpet and vinyl replacement, air conditioning unit replacements and appliance replacements. During the three months ended March 31, 2000, the Partnership expended approximately $16,000 for capital improvements at Carriage House primarily consisting of carpet and vinyl replacement and appliance replacement. These improvements were funded from Partnership operating cash and reserves. Nottingham Square Approximately $159,000 has been budgeted for capital improvements at Nottingham Square Apartments for the year 2000 consisting primarily of carpet and vinyl replacement, plumbing enhancements and appliance replacements. During the three months ended March 31, 2000, the Partnership expended approximately $18,000 for capital improvements at Nottingham Square primarily consisting of carpet and vinyl replacements. These improvements were funded from Partnership operating cash reserves. Foxfire/Barcelona Approximately $125,000 has been budgeted for capital improvements at Foxfire/Barcelona Apartments for the year 2000 consisting primarily of carpet and vinyl replacements, cabinet replacements, air conditioning units replacements and appliance replacements. During the three months ended March 31, 2000, the Partnership expended approximately $27,000 for capital improvements at Foxfire/Barcelona primarily consisting of carpet and vinyl replacement, appliance replacement, and other structural improvements. These improvements were funded from Partnership reserves. River Reach Approximately $274,000 has been budgeted for capital improvements at River Reach Apartments for the year 2000 consisting primarily of carpet and vinyl replacement, plumbing enhancements, air conditioning unit replacements, appliance replacements and other structural enhancements. During the three months ended March 31, 2000, the Partnership expended approximately $29,000 for capital improvements at River Reach primarily consisting of carpet and vinyl replacement, air conditioning unit replacements, plumbing fixtures and appliance replacements. These improvements were funded from Partnership operating cash. Village Gardens Approximately $88,000 has been budgeted for capital improvements at Village Gardens Apartments for the year 2000 consisting primarily of plumbing enhancements, carpet and vinyl replacements and appliance replacements. During the three months ended March 31, 2000, the Partnership expended approximately $12,000 for capital improvements at Village Gardens primarily consisting of carpet and vinyl replacements. These improvements were funded from Partnership operating cash and reserves. The budgeted capital expenditures will be incurred only if cash is available from operations and Partnership reserves. To the extent that such budgeted capital improvements are completed, the Registrant's distributable cash flow, if any, may be adversely affected at least in the short term. The Partnership's current assets are thought to be sufficient for any near term needs (exclusive of capital improvements) of the Partnership. The mortgage indebtedness of approximately $25,138,000, net of discounts, is being amortized over 257 months with a balloon payment of approximately $23,008,000 due on November 15, 2002. The Corporate General Partner will attempt to refinance such indebtedness and/or sell the properties prior to such maturity date. If the properties cannot be refinanced or sold for a sufficient amount, the Partnership will risk losing such properties through foreclosure. During the two months ended December 31, 1999, a distribution was approved and accrued for approximately $428,000 (approximately $424,000 to the limited partners, $10.02 per limited partnership unit) from operations. The distribution was paid during the three months ended March 31, 2000. No distributions were declared or paid during the three months ended March 31, 1999. Future cash distributions will depend on the levels of net cash generated from operations, the availability of cash reserves, and the timing of debt maturities, refinancings, and/or property sales. The Partnership's distribution policy is reviewed on a semi-annual basis. In addition, the Partnership is restricted from making distributions if the amount in the reserve account for each property maintained by the mortgage lender is less than $400 per apartment unit at such property. At March 31, 2000, the reserve account was adequately funded with a balance of approximately $1,107,000. There can be no assurance, however, that the Partnership will generate sufficient funds from operations, after required capital improvements, to permit further distributions to its partners during the remainder of 2000 or subsequent periods. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS In March 1998, several putative unit holders of limited partnership units of the Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia Financial Group, Inc., et al. in the Superior Court of the State of California for the County of San Mateo. The plaintiffs named as defendants, among others, the Partnership, the Corporate General Partner and several of their affiliated partnerships and corporate entities. The action purports to assert claims on behalf of a class of limited partners and derivatively on behalf of a number of limited partnerships (including the Partnership) which are named as nominal defendants, challenging the acquisition by Insignia Financial Group, Inc. ("Insignia") and entities which were, at one time, affiliates of Insignia ("Insignia Affiliates") of interests in certain general partner entities, past tender offers by Insignia Affiliates to acquire limited partnership units, the management of partnerships by Insignia Affiliates and the Insignia Merger (see "Part 1 - Financial Information, Item 1. Financial Statements, Note B - Transfer of Control"). The plaintiffs seek monetary damages and equitable relief, including judicial dissolution of the Partnership. On June 25, 1998, the Corporate General Partner filed a motion seeking dismissal of the action. In lieu of responding to the motion, the plaintiffs have filed an amended complaint. The Corporate General Partner filed demurrers to the amended complaint which were heard February 1999. Pending the ruling on such demurrers, settlement negotiations commenced. On November 2, 1999, the parties executed and filed a Stipulation of Settlement, settling claims, subject to final court approval, on behalf of the Partnership and all limited partners who own units as of November 3, 1999. Preliminary approval of the settlement was obtained on November 3, 1999 from the Superior Court of the State of California, County of San Mateo, at which time the Court set a final approval hearing for December 10, 1999. Prior to the December 10, 1999 hearing the Court received various objections to the settlement, including a challenge to the Court's preliminary approval based upon the alleged lack of authority of class plaintiffs' counsel to enter the settlement. On December 14, 1999, the Corporate General Partner and its affiliates terminated the proposed settlement. Certain plaintiffs have filed a motion to disqualify some of the plaintiffs' counsel in the action. The Corporate General Partner does not anticipate that costs associated with this case will be material to the Partnership's overall operations. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. b) Reports on Form 8-K filed: Form 8-K dated January 3, 2000, and filed January 12, 2000 documenting the decision of the Registrant to adopt a new fiscal year. The new fiscal year will be for the twelve months commencing January 1, 2000 and ending December 31, 2000. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SHELTER PROPERTIES VI By: Shelter Realty VI Corporation Corporate General Partner By: /s/Patrick J. Foye Patrick J. Foye Executive Vice President By: /s/Martha L. Long Martha L. Long Senior Vice President and Controller Date: May 15, 2000 EX-27 2 FIRST QUARTER 10-QSB
5 This schedule contains summary financial information extracted from SHELTER PROPERTIES VI 2000 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000730013 SHELTER PROPERTIES VI 1,000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 2,779 0 271 0 0 0 55,628 29,811 30,364 0 25,138 0 0 0 3,890 30,364 0 2,771 0 0 2,752 0 598 0 0 0 0 0 0 19 0.45 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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