FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
March 31, 1996 33-17579
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
(Exact Name of Registrant as specified in its charter)
Delaware 16-1309988
(State of Formation) (IRS Employer Identification Number)
2350 North Forest Road
Suite 12 A
Getzville, New York 14068
(Address of Principal Executive Office)
Registrant's Telephone Number: (716) 636-0280
Indicate by a 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
--- ---
Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in part III of this Form 10-Q or any
amendment to this Form 10-Q. (X)
As of March 31, 1996 the registrant had 78,625.10 units of limited partnership
interest outstanding.
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
INDEX
PAGE NO.
--------
PART I: FINANCIAL INFORMATION
- ------ ----------------------
Balance Sheets -
March 31, 1996 and December 31, 1995 3
Statements of Operations -
Three Months Ended March 31, 1996 and 1995 4
Statements of Cash Flows -
Three Months Ended March 31, 1996 and 1995 5
Statements of Partners' (Deficit) Capital -
Three Months Ended March 31, 1996 and 1995 6
Notes to Financial Statements 7 - 19
PART II: MANAGEMENT'S DISCUSSION & ANALYSIS OF
FINANCIAL CONDITION & RESULTS OF OPERATIONS 20 - 21
-------------------------------------------
-2-
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
BALANCE SHEETS
March 31, 1996 and December 31, 1995
(Unaudited)
March 31, December 31,
1996 1995
----------- -----------
ASSETS
Property, at cost:
Land $ 746,000 $ 746,000
Buildings and improvements 5,981,594 5,981,594
Furniture, fixtures and equipment 255,652 255,652
----------- -----------
6,983,246 6,983,246
Less accumulated depreciation 1,169,660 1,110,360
----------- -----------
Property, net 5,813,586 5,872,886
Investments in real estate joint ventures 434,885 440,646
Cash 642,514 641,724
Accounts receivable - affiliate 839,641 802,099
Property acquisition costs capitalized -- --
Mortgage costs, net of accumulated amortization
of $150,595 and $137,761, respectively 120,416 133,251
Other assets 173,651 158,147
----------- -----------
Total Assets $ 8,024,694 $ 8,048,753
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgages payable $ 4,257,118 $ 4,263,769
Accounts payable and accrued expenses 317,582 261,611
Security deposits and prepaid rents 83,022 85,166
----------- -----------
Total Liabilities 4,657,722 4,610,546
----------- -----------
Partners' (Deficit) Capital:
General partners (83,519) (81,382)
Limited partners 3,450,491 3,519,589
----------- -----------
Total Partners' Capital 3,366,972 3,438,207
----------- -----------
Total Liabilities and Partners' Capital $ 8,024,694 $ 8,048,753
=========== ===========
See notes to financial statements
-3-
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
--------- ---------
Income:
Rental $ 394,761 $ 406,341
Interest and other income 30,319 35,696
--------- ---------
Total income 425,080 442,037
--------- ---------
Expenses:
Property operations 239,034 211,283
Interest 108,550 110,388
Depreciation and amortization 72,134 61,791
Administrative:
Paid to affiliates 19,247 68,170
Other 51,589 46,402
--------- ---------
Total expenses 490,554 498,034
--------- ---------
Loss before allocated loss from joint venture (65,474) (55,997)
Allocated loss from joint ventures (5,761) (13,629)
--------- ---------
Net loss $ (71,235) $ (69,626)
========= =========
Loss per limited partnership unit $ (0.88) $ (0.86)
========= =========
Distributions per limited partnership unit $ -- $ --
========= =========
Weighted average number of
limited partnership units
outstanding 78,625.1 78,625.1
========= =========
See notes to financial statements
-4-
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
----------- -----------
Cash flow from operating activities:
Net loss $ (71,235) $ (69,626)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 72,134 61,791
Net loss from joint ventures 5,761 13,629
Changes in operating assets and liabilities:
Accounts receivable -- (118,693)
Other assets (15,504) (130,205)
Accounts payable and accrued expenses 55,971 59,955
Security deposits and prepaid rent (2,144) 5,520
----------- -----------
Net cash provided by (used in) operating activities 44,983 (177,629)
----------- -----------
Cash flow from investing activities:
Accounts receivable - affiliates (37,542) 55,377
Capital expenditures -- --
Contributions to joint ventures, net of distributions -- --
----------- -----------
Net cash (used in) investing activities (37,542) 55,377
----------- -----------
Cash flows from financing activities:
Distributions to partners -- (40,529)
Principal payments on mortgages (6,651) (4,812)
----------- -----------
Net cash (used in) financing activities (6,651) (45,341)
----------- -----------
Increase (decrease) in cash 790 (167,593)
Cash - beginning of period 641,724 1,895,609
----------- -----------
Cash - end of period $ 642,514 $ 1,728,016
=========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 108,550 $ 110,388
=========== ===========
See notes to financial statements
-5-
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
STATEMENTS OF PARTNERS' (DEFICIT) CAPITAL
Three Months Ended March 31, 1996 and 1995
(Unaudited)
General Limited Partners
Partners
Amount Units Amount
------ ----- ------
Balance, January 1, 1995 $ (55,919) 78,625.1 $ 4,842,891
Distribution to partners (1,216) -- (39,313)
Net loss (2,089) -- (67,537)
----------- -------- -----------
Balance, March 31, 1995 $ (59,224) 78,625.1 $ 4,736,041
=========== ======== ===========
Balance, January 1, 1996 $ (81,382) 78,625.1 $ 3,519,589
Distribution to partners -- -- --
Net loss (2,137) -- (69,098)
----------- -------- -----------
Balance, March 31, 1996 $ (83,519) 78,625.1 $ 3,450,491
=========== ======== ===========
See notes to financial statements
-6-
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
NOTES TO FINANCIAL STATEMENTS
Three Months Ended March 31, 1996 and 1995
(Unaudited)
1. GENERAL PARTNERS' DISCLOSURE
In the opinion of the General Partners of Realmark Property Investors
Limited Partnership VI-B, all adjustments necessary for a fair presentation
of the Partnership's financial position, results of operations and changes in
cash flows for the three month periods ended March 31, 1996 and 1995, have
been made in the financial statements. Such financial statements are
unaudited and subject to any year-end adjustments which may be necessary.
2. FORMATION AND OPERATION OF PARTNERSHIP
Realmark Property Investors Limited Partnership VI-B (the "Partnership"), a
Delaware Limited Partnership, was formed on September 21, 1987, to invest in
a diversified portfolio of income-producing real estate investments.
In November 1988, the Partnership commenced the public offering of units of
limited partnership interest. Other than matters relating to organization, it
had no business activities and, accordingly, had not incurred any expenses or
earned any income until the first interim closing (minimum closing) of the
offering, which occurred on February 2, 1989. The offering was concluded on
February 28, 1990, at which time 78,625.1 units of limited partnership
interest were sold and outstanding. The General Partners are Realmark
Properties, Inc., a wholly-owned subsidiary of J.M. Jayson & Company, Inc.
and Joseph M. Jayson, the Individual General Partner. Joseph M. Jayson is the
sole shareholder of J.M. Jayson & Company, Inc.
Under the partnership agreement, the general partners and their affiliates
can receive compensation for services rendered and reimbursement for expenses
incurred on behalf of the Partnership.
-7-
FORMATION AND OPERATION OF PARTNERSHIP (CONTINUED)
Net income or loss and proceeds arising from a sale or refinancing shall be
distributed first to the limited partners in amounts equivalent to a 7%
return on the average of their adjusted capital contributions, then an amount
equal to their capital contributions, then an amount equal to an additional
5% of the average of their adjusted capital contributions after the general
partners receive a 3% property disposition fee. Such fees shall be reduced,
but not below zero, by the amounts necessary to pay to limited partners whose
subscriptions were accepted by January 31, 1989, an additional cumulative
annual return (not compounded) equal to 2% based on their average adjusted
capital contributions, and to limited partners whose subscriptions were
accepted between February 1, 1989 and June 30, 1989, an additional cumulative
annual return (not compounded) equal to 1% based on their average adjusted
capital contributions commencing with the first fiscal quarter following the
termination of the offering of units, then to all partners in an amount equal
to their respective positive capital balances, and finally, in the ratio of
87% to the limited partners and 13% to the general partners.
The partnership agreement also provides that distribution of funds,
revenues, costs and expenses arising from partnership activities, exclusive
of any sale or refinancing activities, are to be allocated 97% to the limited
partners and 3% to the general partners.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash
----
For purposes of reporting cash flows, cash includes the following items:
cash on hand; cash in checking; and money market savings.
Property and Depreciation
-------------------------
Depreciation is provided using the straight-line method over the estimated
useful lives of the respective assets. Expenditures for maintenance and
repairs are expensed as incurred, and major renewals and betterments are
capitalized. The Accelerated Cost Recovery System and Modified Accelerated
Cost Recovery System are used to determine depreciation expense for tax
purposes.
-8-
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Acquisition Fees
----------------
Acquisition fees are paid to the general partner as properties are
specified, which generally occurs when a contract to purchase the property is
entered into. Acquisition fees are allocated to specific properties when
actual closing takes place. Acquisition fees paid for properties that
ultimately are not acquired will be applied toward other properties that are
acquired or reallocated to existing properties. There were no capitalized
acquisition fees at March 31, 1996.
Unconsolidated Joint Ventures
-----------------------------
The Partnership's investment in affiliated real estate joint ventures are
accounted for on the equity method.
Rental Income
-------------
Leases for residential properties have terms of one year or less. Rental
income is recognized on the straight line method over the term of the lease.
Rents Receivable
----------------
Due to the nature of these accounts, residential rents receivable are fully
reserved as of March 31, 1996 and 1995.
Income (Loss) per Limited Partnership Unit
------------------------------------------
The income (loss) per limited partnership unit is based on the weighted
average number of limited partnership units outstanding during the period.
4. ACQUISITION AND DISPOSITION OF RENTAL PROPERTY
In June 1991 the Partnership acquired a 192 unit apartment complex (the
Villa) located in Greenville, South Carolina for a purchase price of
$3,165,456, which included $373,493 in acquisition fees.
In June 1991 the Partnership acquired a 144 unit apartment complex (Players
Club) located in Lutz, Florida for a purchase price of $3,070,800, which
included $190,737 in acquisition fees.
-9-
5. MORTGAGES PAYABLE
In connection with the acquisition of rental property, the Partnership
obtained mortgages as follows:
The Villa
---------
A mortgage with a balance of $1,968,515 and $1,988,952 at March 31, 1996 and
1995, respectively, providing for monthly principal and interest payments of
$17,998, bearing interest at 9.875%. The note matures July 1998.
Players Club
------------
A mortgage with a balance of $2,288,603 and $2,304,950 at March 31, 1996 and
1995, respectively, providing for monthly principal and interest payments of
$20,402, bearing interest at 10%. The note matures July 1998.
The mortgages described above are secured by the individual properties to
which they relate.
The aggregate maturities of mortgages payable for each of the next three
years are as follows:
Year Amount
1996 $ 39,890
1997 42,626
1998 4,181,253
-------------
TOTAL $ 4,263,769
6. RELATED PARTY TRANSACTIONS
Management fees for the management of certain of the Partnership's
properties are paid to an affiliate of the General Partners. The management
agreement provides for 5% of gross monthly receipts of the complexes to be
paid as fees for administering the operations of the properties. These fees
totaled $17,627 and $19,151 for the three months ended March 31, 1996 and
1995, respectively.
-10-
RELATED PARTY TRANSACTIONS (CONTINUED)
According to the terms of the Partnership Agreement, the General Partner is
also entitled to receive a partnership management fee equal to 7% of net cash
flow (as defined in the Partnership Agreement), 2% of which is subordinated
to the limited partners having received an annual cash return equal to 7% of
their adjusted capital contributions. There were no such fees paid or accrued
for the three months ended March 31, 1996 or 1995.
Pursuant to the terms of the Partnership agreement, the corporate general
partner charges the Partnership for reimbursement of certain costs and
expenses incurred by the corporate general partner and its affiliates in
connection with the administration of the Partnership and acquisition of
properties. These charges are for the Partnership's allocated share of such
costs and expenses as payroll, travel, communication costs related to
partnership accounting, partner communication and relations, and acquisition
of properties. Partnership accounting, communication, marketing and
acquisition expenses are allocated based on total assets, number of partners
and number of units, respectively. These costs amounted to $20,953 and
$45,018 at March 31, 1996 and 1995.
Accounts receivable - affiliates amounted to $839,641 and $0 at March 31,
1996 and 1995 respectively. This balance is in the process of being
reimbursed.
Computer service charges for the partnerships are paid or accrued to an
affiliate of the General Partner. The fee is based upon the number of
apartment units and totaled $1,584 for the three months ended March 31, 1996
and 1995.
7. INCOME TAXES
No provision has been made for income taxes since the income or loss of the
partnership is to be included in the tax returns of the individual partners.
The tax returns of the Partnership are subject to examination by the Federal
and state taxing authorities. Under federal and state income tax laws,
regulations and rulings, certain types of transactions may be accorded
varying interpretations and, accordingly, reported partnership amounts could
be changed as a result of any such examination.
-11-
INCOME TAXES (CONTINUED)
The reconciliation of net loss for the three months ended March 31, 1996 and
1995 as reported in the statements of operations, and as would be reported
for tax purposes, is as follows:
March 31, March 31,
1996 1995
---- ----
Net loss - statement of operations $ ( 71,235) $ ( 69,626)
Add to (deduct from):
Difference in depreciation ( 70) ( 2,450)
Tax basis adjustments -
Joint Ventures ( 1,920) ( 2,060)
Other non-deductible expenses 14,029 10,154
---------- -----------
Net loss - tax return purposes $ ( 59,196) $ ( 63,982)
The reconciliation of Partners' Capital as of March 31, 1996 and December
31, 1995 as reported in the balance sheet, and as reported for tax purposes,
is as follows:
March 31, December 31,
1996 1995
---- ----
Partners' Capital - balance sheet $ 3,366,972 $ 3,438,207
Add to (deduct from):
Accumulated difference in
depreciation ( 66,886) ( 66,816)
Tax basis adjustment -
Joint Ventures ( 47,161) ( 45,241)
Syndication fees 1,179,381 1,179,381
Other non-deductible expenses 191,240 177,211
------------ -----------
Partners' Capital - tax return purposes $ 4,623,546 $ 4,682,742
-12-
8. INVESTMENT IN JOINT VENTURES
On September 27, 1991 the Partnership entered into an agreement to form a
joint venture with Realmark Property Investors Limited Partnership II (RPILP
II) and Realmark Property Investors Limited Partnership VI-B (RPILP VI-B).
The joint venture was formed for the purpose of operating the Foxhunt
Apartments located in Dayton, Ohio and owned by RPILP II. Under the terms of
the original agreement, the Partnership contributed $390,000 and RPILP VI-B
contributed $1,041,568 to buy out the wraparound promissory note on the
property. RPILP II contributed the property net of the first mortgage.
On April 1, 1992 RPILP II returned RPILP VI-A's entire capital contribution
and $580,000 of the capital originally invested by the Partnership. The
amended joint venture agreement now provides that any income, loss, gain,
cash flow or sale proceeds be allocated 88.5% to RPILP II and 11.5% to the
Partnership. Prior to the buyout the allocations were 63.14% to RPILP II,
26.82% to the Partnership and 10.04% to the RPILP VI-A. The allocated net
loss of the joint venture has been included in the statements of operations
of the Partnership.
The following financial statements of the joint venture are presented on a
historical-cost basis. The equity ownership was determined based upon the
cash paid into the joint venture by the Partnership as a percentage of the
general partner's estimate of the fair market value of the apartment complex
and other net assets at the date of inception.
A summary of the assets, liabilities and partner's capital of the joint
venture as of March 31, 1996 and December 31, 1995 and the results of its
operations for the three months ended March 31, 1996 and 1995 is as follows:
-13-
FOX HUNT JOINT VENTURE
BALANCE SHEETS
March 31, 1996 and December 31, 1995
March 31, December
31,
1996 1995
---------- ----------
ASSETS
Cash and cash equivalents $ 292,810 $ 155,903
Propery, net of accumulated depreciation 2,964,732 3,016,534
Other assets 1,685,902 1,857,979
---------- ----------
Total Assets $4,943,444 $5,030,416
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage payable $4,549,062 $4,555,682
Accounts payable and accrued expenses 257,767 322,266
Other liabilities 72,052 65,275
---------- ----------
Total Liabilities 4,878,881 4,943,223
---------- ----------
Partners' Capital 64,563 87,193
---------- ----------
Total Liabilities and Partners' Capital $4,943,444 $5,030,416
========== ==========
-14-
FOX HUNT JOINT VENTURE
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
--------- ---------
Income:
Rental $ 319,805 $ 335,486
Interest and other income 26,389 14,259
--------- ---------
Total income 346,194 349,745
--------- ---------
Expenses:
Property operations 203,133 161,201
Depreciation and amortization 53,900 56,239
Interest 102,453 102,953
Administrative 9,337 49,413
--------- ---------
Total expenses 368,824 369,806
--------- ---------
Net loss $ (22,630) $ (20,061)
========= =========
Allocation of net loss:
The Partnership $ (2,602) $ (2,307)
Other Joint Venturer (RPILP II) (20,028) (17,754)
--------- ---------
$ (22,630) $ (20,061)
========= =========
-15-
INVESTMENT IN JOINT VENTURES (CONTINUED)
A reconciliation of the Partnership's investment in the joint venture is as
follows:
1996 1995
---- ----
Investment in joint venture, January 1 $ 386,061 $ 417,159
Allocation of net loss ( 2,602) ( 2,307)
---------- ---------
Investment in joint venture, March 31 $ 383,459 $ 414,852
On August 30, 1992 the Partnership entered into a joint venture agreement
with Realmark Property Investors Limited Partnership IV (RPILP IV) for the
purpose of operating the Lakeview Apartment complex located in Milwaukee,
Wisconsin and owned by RPILP IV. Under the terms of the agreement, the
Partnership contributed $175,414 while RPILP IV contributed the property net
of the outstanding mortgage.
The joint venture agreement provides that any income, loss, cash flow or
sale proceeds be allocated 16.22% to the Partnership and 83.78% to RPILP IV.
The allocated net loss of the joint venture for the three month period ended
March 31, 1996 has been included in the statement of operations for the
Partnership.
The equity ownership percentage was determined based upon the cash paid into
the joint venture by the Partnership as a percentage of the general partner's
estimate of the fair market value of the apartment complex and other net
assets at the date of inception.
A summary of the assets, liabilities and partners' capital of the joint
venture as of March 31, 1996 and December 31, 1995 and the results of its
operations for the three months ended March 31, 1996 and 1995 is as follows:
-16-
LAKEVIEW JOINT VENTURE
BALANCE SHEETS
March 31, 1996 and December 31, 1995
March 31, December
31,
1996 1995
---------- ----------
ASSETS
Cash and cash equivalents $ -- $ 2,461
Propery, net of accumulated depreciation 2,425,491 2,463,639
Other assets 728,696 429,110
---------- ----------
Total Assets $3,154,187 $2,895,210
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Cash overdraft $ 21,839 $ --
Mortgage payable 2,614,748 2,311,688
Accounts payable and accrued expenses 280,839 279,426
Accounts payable - affiliates 128,258 130,379
Other liabilities 39,674 85,414
---------- ----------
Total Liabilities 3,085,357 2,806,907
---------- ----------
Partners' Capital:
The Partnership 51,426 54,585
Other joint venturer 17,403 33,718
---------- ----------
Total Partners' Capital 68,829 88,303
---------- ----------
Total Liabilities and Partners' Capital $3,154,187 $2,895,210
========== ==========
-17-
LAKEVIEW JOINT VENTURE
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
Three Months Three Months
Ended Ended
March 31, March 31,
1996 1995
--------- ---------
Income:
Rental $ 213,787 $ 208,339
Interest and other income 11,502 1,818
--------- ---------
Total income 225,289 210,157
--------- ---------
Expenses:
Property operations 109,203 123,355
Depreciation and amortization 49,149 49,148
Interest 47,561 69,426
Administrative 38,850 38,036
--------- ---------
Total expenses 244,763 279,965
--------- ---------
Net loss $ (19,474) $ (69,808)
========= =========
Allocation of net loss:
The Partnership $ (3,159) $ (11,323)
Other Joint Venturer (16,315) (58,485)
--------- ---------
$ (19,474) $ (69,808)
========= =========
-18-
INVESTMENT IN JOINT VENTURES (CONTINUED)
A reconciliation of the Partnership's investment in the joint venture is as
follows:
1996 1995
Investment in joint venture, January 1 $ 54,585 $ 97,210
Allocation of net loss ( 3,159) ( 11,323)
--------- ---------
Investment in joint venture, March 31 $ 51,426 $ 85,887
-19-
PART II MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources
- -------------------------------
The Partnership has maintained sufficient cash to enable it to not only fund
current operations, but also to provide for future capital improvements. No
distributions to partners were made in either the first quarter of 1996 or 1995.
The General Partner does anticipate making distributions at some time during
1996. Although the Partnership experienced a loss for the first quarter of 1996,
management feels that with scheduled rent increases and efforts to control and
manage expenses, profitability should increase.
During January of 1996, the Partnership was able to secure new financing for the
Lakeview Joint Venture. This not only reduced debt service, but also decreased
the mortgage payments approximately $450 per month at Lakeview.
Result of Operations
- --------------------
For the three month period ended March 31, 1996, the Partnership generated a net
loss of $71,235 or $0.88 per limited partnership unit. The loss for the same
period in 1995 was $69,626 or $0.86 per limited partnership unit.
On a tax basis, the Partnership loss totaled $59,196 or $0.73 per limited
partnership unit for the three month period ended March 31, 1996 as compared to
the tax loss for the three month period ended March 31, 1995 which was $63,982
or $0.79 per limited partnership unit.
Total revenue for the three month period ended March 31, 1996 decreased $16,957
from the corresponding period in 1995. The major portion of this decrease is
attributable to a decrease in rental income due to increased vacancies and
rental concessions at Players Club and substantially higher uncollectible rents
at both The Villa and Players Club. Interest and other income decreased by just
over $5,000 primarily due to a drop in laundry income collected at The Villa.
Management continues to focus on efforts to increase occupancy by offering
rental concessions, and to decrease delinquencies by tightening credit and
collection procedures. The properties are both located in economically favorable
areas for rental properties, so rental income is expected to increase in the
future.
-20-
Partnership expenses totaled $490,554 for the three month period ended March 31,
1996. This is a decrease of slightly less than $7,500 from the same period in
1995. Property operations expenses increased approximately $28,000 due to higher
costs of payroll and related expenses and contracted services such as
landscaping at Players Club. There were also slight increases in expenses
associated with repairs and maintenance and replacements at The Villa. Interest
expense remained virtually unchanged between the two periods. Administrative
charges decreased by approximately $44,000 between the three month periods ended
March 31, 1996 and March 31, 1995; this decrease can be attributed to decreases
in deferred repair costs, commissions, legal costs, finance charges and lower
costs associated with portfolio, management and accounting fees. Management
continues to try to lower expenses by focusing on tenant retention and
attempting to do more of the repair and maintenance work in-house as opposed to
hiring outside contractors.
For the three month period ended March 31, 1996, the Foxhunt Joint Venture
generated a loss of $22,630 compared to $20,061 for the three month period ended
March 31, 1995. Of the total loss, $2,602 was allocated to the Partnership for
the three month period ended March 31, 1996; $2,307 was allocated to the
Partnership for the same period in 1995.
The Lakeview Joint Venture had a net loss of $19,474 for the three month period
ended March 31, 1996 as compared to a loss of $69,808 for the three month period
ended March 31, 1995. The Partnership was allocated $3,159 of the loss for three
month period ended March 31, 1996 and $11,323 for the same period in 1995.
Management continues its efforts to decrease operating expenses related to this
property in hopes of seeing signs of an economic improvement in this region.
Additionally, the successful refinancing of this property early in January of
1996 resulted in significantly lower interest expense.
-21-
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP VI-B
----------------------------------------------------
PART II
-------
OTHER INFORMATION
-----------------
Item 1 - Legal Proceedings
- --------------------------
The Partnership is not party to, nor is it the subject of, any material pending
legal proceedings other than ordinary routine litigation incidental to the
Partnership's business.
Item 2, 3, 4 and 5
- ------------------
Not applicable.
Item 6 - Exhibits and Reports on Form 8-K
- -----------------------------------------
Exhibit 27 - Financial Data Schedule (Electronic filing only)
-22-
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.
REALMARK PROPERTY INVESTORS
LIMITED PARTNERSHIP VI-B
By: /s/Joseph M. Jayson July 12, 1996
------------------------------ ------------------------
Joseph M. Jayson, Date
Individual General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By: REALMARK PROPERTIES, INC.
Corporate General Partner
/s/Joseph M. Jayson July 12, 1996
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/Michael J. Colmerauer July 12, 1996
------------------------------ ------------------------
Michael J. Colmerauer Date
Secretary