SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): October 31, 2000 NEW ENGLAND LIFE PENSION PROPERTIES III; A REAL ESTATE LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) Massachusetts (State or Other Jurisdiction of Incorporation) 0-14052 04-2847256 (Commission File Number) (IRS Employer Identification No.) World Trade Center East Two Seaport Lane, 16th Fl. Boston, MA 02210 (Address of principal executive offices) (Zip Code) (617) 261-9000 Registrant's Telephone Number, Including Area Code (Former Name or Former Address, if Changed Since Last Report) 225 Franklin Street, 25th Floor Boston, MA 02110 (Address of principal executive offices) (Zip Code) (617) 261-9000 Registrant's Telephone Number, Including Area Code 1 Item 2. Acquisition or Disposition of Assets. - ---------------------------------------------- New England Life Pension Properties III; A Real Estate Limited Partnership ("NELPP III"), owns a 98% interest in MORF Associates III, a Maryland general partnership (the "Joint Venture"). The remaining 2% of the Joint Venture is owned by NELPP/M.O.R.F. Associates III Limited Partnership, a Delaware limited partnership ("NELPP/MORF"). NELPP III is the 50% general partner in NELPP/MORF. The Joint Venture owns property at 5310, 5320 and 5330 Spectrum Drive, Frederick, Maryland. On October 31, 2000, NELPP III sold its partnership interests and all related property rights in the Joint Venture and NELPP/MORF to M.O.R.F. III Associates Limited Partnership, a Maryland limited partnership (the "Buyer") for gross proceeds of $6,732,467. The selling price was determined by arm's length negotiations between NELPP III and the Buyer. The Partnership received net proceeds of approximately $6,700,000 and recognized a gain of approximately $879,000. Item 7. Financial Statements and Exhibits. - ------------------------------------------- In connection with the disposition of the asset discussed in Item 2 above, pro forma financial statements are presented below. The pro forma balance sheet is presented as of June 30, 2000 (Exhibit A). The pro forma income statements are presented for the fiscal year ended December 31, 1999 (Exhibit B) and the six month period ended June 30, 2000 (Exhibit C). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned hereunto duly authorized. Date: November 13, 2000 NEW ENGLAND LIFE PENSION PROPERTIES III; A REAL ESTATE LIMITED PARTNERSHIP (Registrant) By: Copley Properties Company III, Inc. Managing General Partner By:/s/ Alison L. Husid --------------------------------- Name: Alison L. Husid Title: President and Chief Executive Officer 2 NEW ENGLAND LIFE PENSION PROPERTIES III EXHIBIT A A Real Estate Limited Partnership Pro Forma Balance Sheet June 30, 2000 Unaudited Pro Forma June 30, 2000 June 30, 2000 Adjustment Pro Forma ASSETS Property, net $0 $0 $0 Property held for disposition, net 5,835,901 (5,835,901)(a) 0 Cash and cash equivalents 310,296 6,715,196 (a) 7,025,492 -------------- ------------ ---------------- $6,146,197 $879,295 $7,025,492 ============== ============ ================ LIABILITIES AND PARTNERS' CAPITAL Accounts payable $88,009 $0 $88,009 Accrued management fee 13,328 0 13,328 -------------- ------------ ---------------- Total liabilities 101,337 0 101,337 -------------- ------------ ---------------- Partners' capital (deficit): Limited partners ($183.60 per unit; 75,000 units authorized, 68,414 units issued and outstanding) 6,043,367 870,502 (a) 6,913,869 General partners 1,493 8,793 (a) 10,286 -------------- ------------ ---------------- Total partners' capital 6,044,860 879,295 6,924,155 -------------- ------------ ---------------- $6,146,197 $879,295 $7,025,492 ============== ============ ================ 3 NEW ENGLAND LIFE PENSION PROPERTIES III EXHIBIT B A Real Estate Limited Partnership Pro Forma Income Statement Year Ended December 31, 1999 Unaudited Year Ended Year Ended Pro Forma December 31, 1999 December 31, 1999 Adjustment Pro Forma Investment Activity Property rentals $ 1,165,510 $(1,117,513)(b) $ 47,997 Property operating expenses (424,157) 385,873 (b) (38,284) Depreciation and amortization (237,056) 225,442 (b) (11,614) ----------- ----------- ----------- 504,297 (506,198) (1,901) Gain on sale of property 1,509,931 0 1,509,931 ----------- ----------- ----------- Total real estate activity 2,014,228 (506,198) 1,508,030 Interest on cash equivalents and short term investments 80,774 0 80,774 ----------- ----------- ----------- Total investment activity 2,095,002 (506,198) 1,588,804 Portfolio Expenses Management fee 138,332 (66,960)(e) 71,372 General and administrative 240,825 (4,000)(f) 236,825 ----------- ----------- ----------- 379,157 (70,960) 308,197 ----------- ----------- ----------- Net income (loss) $ 1,715,845 $( 435,238) $ 1,280,607 =========== =========== =========== Net income (loss) per limited partnership unit $ 24.83 $( 6.30)(c) $ 18.53 =========== =========== =========== Number of limited partnership units outstanding during the year 68,414 68,414 68,414 =========== =========== =========== 4 NEW ENGLAND LIFE PENSION PROPERTIES EXHIBIT C A Real Estate Limited Partnership Pro Forma Income Statement Six Months Ended June 30, 2000 Unaudited Six Months Ended Pro Forma June 30, 2000 June 30, 2000 Adjustment Pro Forma Investment Activity Property rentals $ 450,071 $(450,071)(d) $ 0 Property operating expenses (48,628) 48,628 (d) 0 Depreciation and amortization (112,074) 112,074 (d) 0 --------- --------- --------- Total real estate activity 289,369 (289,369) 0 Interest on cash equivalents 8,534 0 8,534 --------- --------- --------- Total investment activity 297,903 (289,369) 8,534 Portfolio Expenses Management fee 26,655 (26,655)(e) 0 General and administrative 103,455 0 103,455 --------- --------- --------- 130,110 (26,655) 103,455 --------- --------- --------- Net income $ 167,793 $(262,714) $( 94,921) ========= ========= ========= Net income per limited partnership unit $ 2.43 $ (3.80)(c) $ (1.37) ========= ========= ========= Number of limited partnership units outstanding during the period 68,414 68,414 68,414 ========= ========= ========= Pro Forma Financial Statement Footnotes: (a) Disposition of asset as discussed in Item 2 herein and allocation of the gain to the Partners on such disposition. (b) Removal of 1999 operating activity related to the disposed asset discussed in Item 2 herein. (c) Calculation of net loss per limited partnership unit after the removal of operating activity related to the disposed asset discussed in Item 2 herein. (d) Removal of 2000 year-to-date operating activity related to the disposed asset discussed in Item 2 herein. (e) Removal of management fees based on distributions received during the pro forma period from the disposed asset discussed in Item 2 herein. (f) Removal of appraisal fees incurred during the pro forma period for the disposed asset discussed in Item 2 herein. 5