<PAGE>
                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

For the quarterly period ended              September 30, 2000
                               -------------------------------------------------

                                       OR

[ ]      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                       0-14695
                        --------------------------------------------------------

                NTS-PROPERTIES VI, A Maryland Limited Partnership
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                Maryland                                      61-1066060
---------------------------------------------          -------------------------
(State or other jurisdiction of incorporation          (I.R.S. Employer
or organization)                                        Identification No.)

         10172 Linn Station Road
          Louisville, Kentucky                                   40223
---------------------------------------------          -------------------------
(Address of principal executive offices)                       (Zip Code)

                                 (502) 426-4800
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months,  and (2) has been subject to such filing  requirements
for the past 90 days.
                                                        [X] Yes           [ ] No

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                     PART I
                                     ------

                                                                           Pages
                                                                           -----

Item 1. Financial Statements

        Balance Sheets as of September 30, 2000 and December 31, 1999          3

        Statement of Partners' Equity as of September 30, 2000                 3

        Statements of Operations for the three months and nine months ended
            September 30, 2000 and 1999                                        4

        Statements of Cash Flows for the nine months ended
            September 30, 2000 and 1999                                        5

        Notes to Financial Statements                                       6-16

Item 2. Management's Discussion and Analysis of Financial Condition and
            Results of Operations                                          17-25

Item 3. Quantitative and Qualitative Disclosures About Market Risk            26


                                     PART II
                                     -------

Item 1. Legal Proceedings                                                     27

Item 2. Changes in Securities                                                 27

Item 3. Defaults Upon Senior Securities                                       27

Item 4. Submission of Matters to a Vote of Security Holders                   27

Item 5. Other Information                                                     27

Item 6. Exhibits and Reports on Form 8-K                                      27

Signatures                                                                    28

                                        2

<PAGE>

PART I. FINANCIAL INFORMATION
-----------------------------
Item 1. Financial Statements
----------------------------

<TABLE>
                               NTS-PROPERTIES VI,
                               ------------------
                         A Maryland Limited Partnership
                         ------------------------------
                                 BALANCE SHEETS
                                 --------------

<CAPTION>

                                                                          As of                         As of
                                                                    September 30, 2000           December 31, 1999 *
                                                                --------------------------    --------------------------
                                                                        (UNAUDITED)
ASSETS
------
<S>                                                              <C>                          <C>
Cash and equivalents                                             $                 592,201    $                        -
Cash and equivalents - restricted                                                  353,380                       206,697
Accounts receivable                                                                 78,779                       195,399
Land, buildings and amenities, net                                              48,709,418                    48,357,129
Other assets                                                                       686,363                       451,425
                                                                  ------------------------     -------------------------

     TOTAL ASSETS                                                $              50,420,141    $               49,210,650
                                                                  ========================     =========================

LIABILITIES AND PARTNERS' EQUITY
--------------------------------

Mortgages and note payable                                       $              35,125,459    $               33,312,443
Accounts payable                                                                 1,248,065                     1,650,675
Security deposits                                                                  225,925                       214,523
Other liabilities                                                                  711,834                       221,597
                                                                  ------------------------     -------------------------

     TOTAL LIABILITIES                                                          37,311,283                    35,399,238

COMMITMENTS AND CONTINGENCIES (Note 9)

PARTNERS' EQUITY                                                                13,108,858                    13,811,412
                                                                  ------------------------     -------------------------

TOTAL LIABILITIES AND PARTNERS' EQUITY                           $              50,420,141    $               49,210,650
                                                                  ========================     =========================

</TABLE>

<TABLE>

                          STATEMENT OF PARTNERS' EQUITY
                          -----------------------------

<CAPTION>

                                                             Limited                  General
                                                            Partners                  Partner                  Total
                                                      ---------------------    ---------------------    -------------------
PARTNERS' EQUITY/(DEFICIT)
-------------------------
<S>                                                    <C>                       <C>                     <C>
Capital contributions, net of offering costs           $         40,518,631      $               100     $       40,518,731
Net loss - prior years                                          (11,934,430)                 (72,160)           (12,006,590)
Net loss - current year                                            (657,907)                  (6,646)              (664,553)
Cash distributions declared to date                             (12,006,384)                (121,277)           (12,127,661)
Repurchase of Limited Partnership Units                          (2,611,069)                       -             (2,611,069)
                                                        -------------------       ------------------      -----------------

BALANCES AT September 30, 2000                         $         13,308,841      $          (199,983)    $       13,108,858
                                                        ===================       ==================      =================

</TABLE>

*        Reference is made to the audited financial  statements in the Form 10-K
         as filed with the Commission on March 29, 2000.

The  accompanying  notes to financial  statements  are an integral part of these
statements.

                                        3

<PAGE>

<TABLE>

                               NTS-PROPERTIES VI,
                               ------------------
                         A Maryland Limited Partnership
                         ------------------------------
                            STATEMENTS OF OPERATIONS
                            ------------------------
                                   (UNAUDITED)

<CAPTION>

                                                      Three Months Ended                          Nine Months Ended
                                                         September 30,                              September 30,
                                            ---------------------------------------    ---------------------------------------
                                                   2000                 1999                  2000                 1999
                                            ------------------    -----------------    ------------------    -----------------
REVENUES
--------
<S>                                              <C>                  <C>                   <C>                  <C>
Rental income                                    $   2,630,302        $   2,345,417         $   7,649,561        $   7,074,011
Interest and other income                              261,427                9,792               287,733               29,710
Gain on sale of assets                                       -                    -                 5,188                    -
                                                  ------------         ------------          ------------         ------------

      TOTAL REVENUES                             $   2,891,729        $   2,355,209         $   7,942,482        $   7,103,721
                                                  ------------         ------------          ------------         ------------

EXPENSES
--------
Operating expenses                              $      854,007       $      671,463         $   2,112,117        $   1,838,025
Operating expenses - affiliated                        353,217              315,907             1,027,330              969,809
Loss on disposal of assets                              60,381               17,594               198,212              252,133
Interest expense                                       681,598              502,839             1,985,301            1,461,208
Management fees                                        149,894              123,268               409,334              367,782
Real estate taxes                                      224,488              203,311               721,021              609,932
Professional and administrative
   expenses                                             36,435               58,958               149,280              195,416
Professional and administrative
   expenses - affiliated                                77,810               61,952               231,902              176,485
Depreciation and amortization                          649,819              476,780             1,772,538            1,385,536
                                                  ------------         ------------          ------------         ------------

     TOTAL EXPENSES                                  3,087,649            2,432,072             8,607,035            7,256,326
                                                  ------------         ------------          ------------         ------------

Net (loss)                                       $    (195,920)       $     (76,863)        $    (664,553)       $    (152,605)
                                                  ============         ============          ============         ============

Net (loss) allocated to the
   Limited Partners                              $    (193,961)       $     (76,094)        $    (657,907)       $    (151,079)
                                                  ============         ============          ============         ============

Net (loss) per Limited
   Partnership Unit                              $       (4.97)       $       (1.91)        $      (16.84)       $       (3.79)
                                                  ============         ============          ============         ============

Weighted average number of
   Limited Partnership Units                            39,044               39,839                39,074               39,905
                                                  ============         ============          ============         ============

</TABLE>

The  accompanying  notes to financial  statements  are an integral part of these
statements.

                                        4

<PAGE>

<TABLE>

                               NTS-PROPERTIES VI,
                               ------------------
                         A Maryland Limited Partnership
                         ------------------------------
                            STATEMENTS OF CASH FLOWS
                            ------------------------
                                   (UNAUDITED)

<CAPTION>
                                                                                   Nine Months Ended
                                                                                     September 30,
                                                               ---------------------------------------------------------
                                                                          2000                           1999
                                                               ---------------------------    --------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
<S>                                                                <C>                             <C>
Net loss                                                           $              (664,553)        $            (152,605)
Adjustment to reconcile net loss to net cash provided by
  operating activities:
    Loss on disposal of assets                                                     198,212                       252,133
    Gain on sale of assets                                                          (5,188)                            -
    Depreciation and amortization                                                1,772,538                     1,385,535
    Changes in assets and liabilities:
      Cash and equivalents - restricted                                           (146,683)                     (155,078)
      Accounts receivable                                                          116,620                       (14,876)
      Other assets                                                                (112,862)                        2,488
      Accounts payable                                                            (402,610)                      331,007
      Security deposits                                                             11,402                        (7,388)
      Other liabilities                                                            490,237                       695,770
                                                                    ----------------------          --------------------

     Net cash provided by operating activities                                   1,257,113                     2,336,986
                                                                    ----------------------          --------------------

CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------
Additions to land, buildings, and amenities                                     (2,292,115)                   (6,192,983)
Proceeds from sale of assets                                                         8,736                             -
                                                                    ----------------------          --------------------

     Net cash used in investing activities                                      (2,283,379)                   (6,192,983)
                                                                    ----------------------          --------------------

CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------
Principal payments on mortgages and note payable                                (1,040,266)                   (1,346,480)
Proceeds from mortgage loan                                                      2,853,282                     5,868,040
Cash distributions                                                                       -                      (303,703)
Repurchase of Limited Partnership Units                                            (38,000)                     (447,500)
Cash and equivalents - restricted                                                        -                        77,500
Additions to loan costs                                                           (156,549)                      (17,837)
                                                                    ----------------------          --------------------

    Net cash provided by financing activities                                    1,618,467                     3,830,020
                                                                    ----------------------          --------------------

    Net increase (decrease) in cash and equivalents                                592,201                       (25,977)

CASH AND EQUIVALENTS, beginning of period                                                -                       362,822
                                                                    ----------------------          --------------------

CASH AND EQUIVALENTS, end of period                                $               592,201         $             336,845
                                                                    ======================          ====================

Interest paid on a cash basis                                      $             1,990,690         $           1,481,798
                                                                    ======================          ====================

</TABLE>

The  accompanying  notes to financial  statements  are an integral part of these
statements.

                                        5

<PAGE>

                               NTS-PROPERTIES VI,
                              ------------------
                         A Maryland Limited Partnership
                         ------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------

The unaudited financial statements included herein should be read in conjunction
with the Partnership's  1999 Form 10-K as filed with the Securities and Exchange
Commission  on March 29,  2000.  In the  opinion  of the  General  Partner,  all
adjustments (only consisting of normal recurring  accruals) necessary for a fair
presentation  have been made to the  accompanying  financial  statements for the
nine months ended September 30, 2000 and 1999.

1.   Use of Estimates in the Preparation of Financial Statements
     -----------------------------------------------------------

     The  preparation  of financial  statements  in  conformity  with  Generally
     Accepted  Accounting   Principles  ("GAAP")  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 the  reported  amounts of  revenues  and
     expenses  during the  reporting  period.  Actual  results could differ from
     those estimates.

2.   Concentration of Credit Risk
     ----------------------------

     The  Partnership  owns and  operates,  either  wholly  or  through  a joint
     venture,   residential  rental  properties,  all  of  which  are  apartment
     communities,  in Kentucky (Lexington),  Indiana  (Indianapolis) and Florida
     (Orlando). The Partnership also owns and operates, through a joint venture,
     a commercial rental property in Louisville,  Kentucky. Substantially all of
     the tenants are local businesses or are businesses which have operations in
     the Louisville area.

3.   Reclassifications of 1999 Financial Statements
     ----------------------------------------------

     Certain  reclassifications  have  been  made  to  the  September  30,  1999
     financial  statements to conform with  September 30, 2000  classifications.
     These reclassifications have no effect on previously reported operations.

4.   Cash and Equivalents - Restricted
     ---------------------------------

     Cash and equivalents - restricted represents funds received for residential
     security  deposits,  funds which have been escrowed with mortgage companies
     for  property  taxes in  accordance  with the loan  agreements,  and  funds
     reserved by the Partnership for the purchase of Limited  Partnership  Units
     through tender offers (See Notes to Financial Statements - Note 7).

5.   Basis of Property and Depreciation
     ----------------------------------

     Land,   buildings  and  amenities  are  stated  at  historical  cost,  less
     accumulated  depreciation,  to the Partnership.  Costs directly  associated
     with  the  acquisition,  development  and  construction  of a  project  are
     capitalized.  Depreciation is computed using the straight-line  method over
     the

                                        6

<PAGE>



5.   Basis of Property and Depreciation - Continued
     ----------------------------------------------

     estimated  useful  lives of the  assets  which  are  10-30  years  for land
     improvements,  7-30 years for  buildings and  improvements,  5-30 years for
     amenities and the applicable lease term for tenant improvements.

     Statement of Financial  Accounting  Standards ("SFAS") No. 121, "Accounting
     for the  Impairment of Long-Lived  Assets and for  Long-Lived  Assets to be
     Disposed Of," specifies  circumstances in which certain  long-lived  assets
     must be reviewed for impairment. If the carrying amount of an asset exceeds
     the sum of its expected future cash flows,  the asset's carrying value must
     be written down to fair value.  Application  of this standard by management
     during the periods ended  September 30, 2000 and 1999 did not result in any
     impairment loss.

6.   Mortgages and Note Payable
     --------------------------

     Mortgages and note payable consist of the following:

<TABLE>

                                                             September 30, 2000                December 31,1999
                                                       ------------------------------    ----------------------------
    <S>                                                     <C>                               <C>
     Mortgage payable with an insurance company,
     bearing interest at 7.74%, due October 15, 2012,
     secured by certain land, buildings and amenities.       $            11,852,711           $       11,186,637

     Mortgage payable with an insurance  company,
     bearing  interest at 7.43%,  until February 2, 2000
     when the loan was refinanced.  The interest rate
     after February 2, 2000 is 7.57%, due May 15, 2009,
     secured by certain land, buildings and amenities.                     8,602,797                    7,677,179

     Mortgage payable with an insurance company,
     bearing interest at 7.32%, due October 15, 2012,
     secured by certain land, buildings and amenities.                     7,487,001                    7,767,882

     Mortgage payable to a bank, currently bearing interest
     at the Euro-Rate plus 225 basis  points, due June 23, 2002,
     secured  by  certain  land,  buildings  and amenities.
     At September 30, 2000, the interest rate was
     approximately 8.82%.                                                  2,992,882                    2,298,001

     Mortgage payable with an insurance company,
     bearing interest at 7.38%, due December 5, 2012,
     secured by certain land, buildings and amenities.                     2,506,166                    2,598,146

     Mortgage payable with an insurance company,
     bearing interest at 7.38%, due December 5, 2012,
     secured by certain land, buildings and amenities.                     1,670,777                    1,732,098


                                             (Continued on next page)

                                        7

<PAGE>

6.   Mortgages and Note Payable - Continued
     --------------------------------------

                                                             September 30, 2000               December 31, 1999
                                                       ------------------------------    ----------------------------
    Note payable to a bank, bearing interest at the
    Prime Rate + 1% , due June 14, 2001, secured by
    certain land, buildings and amenities. At
    September 30, 2000, the interest rate was 10.50%.        $                13,125          $            52,500
                                                              ----------------------           ------------------

                                                             $            35,125,459          $        33,312,443
                                                              ======================           ==================

</TABLE>

     Based on the borrowing  rates  currently  available to the  Partnership for
     mortgages  with  similar  terms and average  maturities,  the fair value of
     long-term debt is approximately $34,534,000.

     The  mortgage  payable with an  outstanding  balance of  $11,852,711  as of
     September  30,  2000,  has an  additional  availability  of  $231,144.  The
     proceeds were used to fund the  construction of Park Place Apartments Phase
     III.

     On February 2, 2000, the Partnership  obtained additional  financing in the
     amount of $1,369,064 by  refinancing  an existing loan secured by the land,
     buildings and amenities of Golf Brook Apartments.  The refinancing resulted
     in an increase in the interest rate from 7.43% to 7.57%.  The maturity date
     remained the same (May 15, 2009).

     On May 17,  2000,  the  Partnership  obtained  additional  financing in the
     amount of $500,000 by amending the mortgage  note for  Plainview  Point III
     Office Center. The amendment  increased the monthly payment from $31,000 to
     $37,000. The interest rate and the maturity date remained the same.

     On June 22, 2000, the Partnership  submitted an application with a mortgage
     company for a first mortgage loan commitment in the amount of $3,200,000 to
     be  secured  by land and  buildings  known as  Plainview  Point III  Office
     Center.  The mortgage would be for a term of 10 years with an interest rate
     of 8.375%,  amortized over 20 years.  If the  application is approved,  the
     Partnership  will use the proceeds to pay off the mortgage  payable with an
     outstanding  balance of $2,992,882 on Plainview Point III Office Center. As
     of September 30, 2000, the application was still awaiting approval.

7.   Tender Offer
     ------------

     On March 24,  2000,  the  Partnership  and ORIG,  LLC, an  affiliate of the
     Partnership  (the  "Offerors"),  filed a tender offer (the  "Fourth  Tender
     Offer") with the  Securities and Exchange  Commission,  commencing on March
     27, 2000, to purchase up to 200 of the  Partnership's  Limited  Partnership
     Units at a price of $380 per Unit.  The Fourth Tender Offer stated that the
     Partnership  would purchase the first 100 Units tendered and would fund its
     purchase and its portion of the expenses from cash flow from operations. If
     more than 100 Units  were  tendered,  ORIG,  LLC  would  purchase  up to an
     additional 100 Units.  If more than 200 Units were  tendered,  the Offerors
     had the option to acquire the  additional  Units on a pro rata  basis.  The
     Fourth Tender Offer was scheduled to expire on June 27, 2000.

                                        8

<PAGE>

7.   Tender Offer - Continued
     ------------------------

     On June 23, 2000, the  Partnership  filed an amendment to the Fourth Tender
     Offer which extended the expiration date to August 15, 2000.

     On August 15, 2000, the Fourth Tender Offer expired. A total of 3,685 Units
     were tendered and the Offerors accepted all Units tendered. The Partnership
     repurchased  100 Units at a cost of $38,000 and ORIG,  LLC purchased  3,585
     Units at a cost of  $1,362,300.  The  expenses  associated  with the Fourth
     Tender Offer were approximately  $36,686 of which the Partnership  incurred
     $575 and ORIG incurred  $36,111.  Units acquired by the Partnership will be
     retired.  Units  acquired  by  ORIG,  LLC will be held by it.  The  General
     Partner,  NTS-Properties  Associates VI, did not  participate in the Fourth
     Tender Offer.

8.   Related Party Transactions
     --------------------------

     Pursuant to an agreement with the Partnership,  NTS Development Company, an
     affiliate  of the General  Partner of the  Partnership,  receives  property
     management  fees on a  monthly  basis.  The fee is equal to 5% of the gross
     revenues of the residential  properties and 6% of the gross revenues of the
     commercial property. Also pursuant to an agreement, NTS Development Company
     receives a repair and maintenance fee equal to 5.9% of costs incurred which
     relate to  capital  improvements.  These  repair and  maintenance  fees are
     capitalized as part of land, buildings and amenities.

     The  Partnership  was charged the  following  amounts from NTS  Development
     Company  for  the  nine  months   ended   September   30,  2000  and  1999,
     respectively.  These  charges  include  items  which have been  expensed as
     operating expenses - affiliated or professional and administrative expenses
     - affiliated,  and items which have been  capitalized as other assets or as
     land, buildings and amenities.

<TABLE>

                                                                                       Nine Months Ended
                                                                                         September 30,
                                                                          -------------------------------------------
                                                                                 2000                     1999
                                                                          ------------------       ------------------
<S>                                                                         <C>                      <C>
Property management fees                                                    $        409,334         $        367,782
                                                                             ---------------          ---------------

     Total property management fees                                                  409,334                  367,782
                                                                             ---------------          ---------------

Property management                                                                  662,076                  580,123
Leasing                                                                              130,159                  175,171
Administrative - operating                                                           227,299                  203,879
Other                                                                                  7,796                   10,636
                                                                             ---------------          ---------------

     Total operating expenses -affiliated                                          1,027,330                  969,809
                                                                             ---------------          ---------------

Administrative - professional                                                        231,902                  176,485
                                                                             ---------------          ---------------

     Total professional and administrative expenses - affiliated                     231,902                  176,485
                                                                             ---------------          ---------------

                            (Continued on next page)

                                       9

<PAGE>

8.   Related Party Transactions - Continued
     --------------------------------------

                                                                                       Nine Months Ended
                                                                                         September 30,
                                                                          -------------------------------------------
                                                                                 2000                     1999
                                                                          ------------------       ------------------
Repairs and maintenance fee                                                           34,670                   19,028
Fixed assets                                                                             299                      391
Leasing commissions                                                                    4,784                   12,549
Construction management                                                               97,274                  342,142
                                                                             ---------------          ---------------

     Total related party transactions capitalized                                    137,027                  374,110
                                                                             ---------------          ---------------

     Total related party transactions                                         $    1,805,593           $    1,888,186
                                                                             ===============          ===============

</TABLE>

     On February 7, 2000, ORIG, LLC (the "Affiliate") purchased Interests in the
     Partnership  pursuant to an Agreement,  Bill of Sale and  Assignment by and
     among the Affiliate and four  investors in the  Partnership.  The Affiliate
     purchased 675 Interests in the  Partnership  for a total  consideration  of
     $281,128 or an average price of $416 per Interest. The Affiliate paid these
     investors  a premium  above  the  purchase  price  previously  offered  for
     Interests pursuant to prior tender offers because this purchase allowed the
     Affiliate to purchase  substantial  numbers of Interests  without incurring
     the  significant  expenses  involved  with  a  tender  offer  and  multiple
     transfers.

9.   Commitments and Contingencies
     -----------------------------

     The  Partnership,  as an  owner  of real  estate,  is  subject  to  various
     environmental  laws of federal  and local  governments.  Compliance  by the
     Partnership with existing laws has not had a material adverse effect on the
     Partnership's  financial condition and results of operations.  However, the
     Partnership cannot predict the impact of new or changed laws or regulations
     on its  current  properties  or on  properties  that it may  acquire in the
     future.

     The Partnership does not believe there is any litigation threatened against
     the Partnership other than routine  litigation  arising out of the ordinary
     course of business  some of which is  expected to be covered by  insurance,
     none of which is  expected  to have a material  effect on the  consolidated
     financial statements of the Partnership except as discussed herein.

     On  July,  19,  2000,  there  was a fire at Golf  Brook  Apartments.  Eight
     apartment units sustained fire and/or smoke damage. The Partnership filed a
     claim with its insurance company,  and after meeting the $5,000 deductible,
     collected $100,000  subsequent to September 30, 2000. It is unknown at this
     time,  if the  costs  of  the  repairs  to the  eight  apartments  will  be
     completely covered by the insurance claim.

     The  Partnership  plans to replace the roofs at both Willow Lake Apartments
     (26  buildings)  and Park Place  Apartments  Phase I (24  buildings) all of
     which were installed using shingles produced by a single manufacturer.  The
     shingles appear to contain defects which may cause the roofs to fail before
     the end of their expected  useful lives. As the  manufacturer  has declared
     bankruptcy,  the  Partnership  does not expect to be able to recover any of
     the costs of the roof replacements.

                                        10

<PAGE>

9.   Commitments and Contingencies - Continued
     -----------------------------------------

     The Partnership does not have sufficient working capital to make all of the
     roof  replacements  at once and intends to make the  replacements  over the
     next 36 months.  As of September  30, 2000,  four  buildings at Willow Lake
     Apartments  have had roofs  replaced.  The total cost of replacing  all the
     remaining roofs is estimated to be $920,000 ($20,000 per building).

     The  roof  replacements  discussed  above  will be made  using  funds  from
     operations  or   additional   borrowings   secured  by  the   Partnership's
     properties.  There can be no guarantee that such funds will be available at
     which  time the  General  Partner  will  manage  the  demand  on  liquidity
     according to the best interest of the Partnership.

     The Partnership has been sued by Elder Construction and Associates, Inc. in
     Jefferson Circuit Court,  Louisville,  Kentucky,  in a lawsuit styled Elder
     Construction  &  Associates,  Inc.  V. NTS  Development  Company,  Frontier
     Insurance Company,  NTS-Properties VI, a Maryland limited partnership,  NTS
     Properties Associates VI, and NTS Capital Corporation. All of the named NTS
     entities  are  represented  by  Middleton  and  Reutlinger,  a  Louisville,
     Kentucky law firm.

     Elder  Construction was hired to be the framing  subcontractor with respect
     to certain improvements at Phase III of Park Place Apartments in Lexington,
     Kentucky.  After being  removed from the job for its failure to provide its
     services in a professional,  diligent and workmanlike  manner,  a complaint
     was filed on behalf of Elder Construction in November 1999, alleging, inter
     alia,  breach of contract.  The complaint  requested  judgement against the
     defendants in the amount of $233,122 plus interest and other relief against
     the defendants.

     The Partnership and the other  defendants have answered the complaint,  and
     have asserted  counterclaims  against the plaintiff for, inter alia, breach
     of contract.  Discovery is proceeding, but because the case is in the early
     discovery  phase an outcome cannot be predicted at present.  The principals
     of the NTS  defendants  have  indicated  that  the  suit  brought  by Elder
     Construction  is without merit and will be vigorously  defended,  including
     the   prosecution  by  the  defendants  of   counterclaims   against  Elder
     Construction.  No  amounts  have  been  provided  for in  the  accompanying
     statements regarding this matter.

10.  Segment Reporting
     -----------------

     The Partnership's  reportable  operating  segments include  residential and
     commercial real estate operations. The residential operations represent the
     Partnership's   ownership  and  operating  results  relative  to  apartment
     communities known as Willow Lake, Park Place Phase I, Park Place Phase III,
     Sabal  Park  and  Golf  Brook.  The  commercial  operations  represent  the
     Partnership's   ownership  and  operating   results  relative  to  suburban
     commercial office space known as Plainview Point III Office Center.

     The financial information of the operating segments has been prepared using
     a management  approach,  which is  consistent  with the basis and manner in
     which the Partnership's management internally reports financial information
     for  the  purposes  of  assisting  in  making  operating   decisions.   The
     Partnership  evaluates  performance based on stand-alone  operating segment
     net income.

                                       11

<PAGE>

10.  Segment Reporting - Continued
     -----------------------------

<TABLE>

                                                                     Three Months Ended September 30, 2000
                                                       -----------------------------------------------------------------

                                                           Residential             Commercial               Total
                                                       --------------------    ------------------     ------------------
<S>                                                         <C>                  <C>                    <C>
Rental income                                               $     2,427,381      $        202,921       $     2,630,302
Interest and other income                                           255,718                   438               256,156
                                                             --------------       ---------------        --------------

      Total net revenues                                    $     2,683,099      $        203,359       $     2,886,458
                                                             --------------       ---------------        --------------

Operating expense and operating expenses -
  affiliated                                                $     1,113,157      $         94,067       $     1,207,224
Loss on disposal of assets                                           60,381                     -                60,381
Management fees                                                     137,537                12,357               149,894
Real estate taxes                                                   216,245                 8,243               224,488
Interest expense                                                    216,769                     -               216,769
Depreciation and amortization                                       567,157                49,389               616,546
                                                             --------------       ---------------        --------------

     Total expenses                                         $     2,311,246      $        164,056       $     2,475,302
                                                             --------------       ---------------        --------------

      Net income                                            $       371,853      $         39,303       $       411,156
                                                             ==============       ===============        ==============

</TABLE>

<TABLE>

                                                                    Three Months Ended September 30, 1999
                                                       -----------------------------------------------------------------

                                                           Residential             Commercial               Total
                                                       --------------------    ------------------    -------------------
<S>                                                         <C>                     <C>                  <C>
Rental income                                               $     2,153,354         $     192,063        $     2,345,417
Interest and other income                                             4,253                   (21)                 4,232
                                                             --------------          ------------         --------------

      Total net revenues                                    $     2,157,607         $     192,042        $     2,349,649
                                                             --------------          ------------         --------------

Operating expenses and operating expenses -
  affiliated                                                $       898,167        $       89,203        $       987,370
Loss on disposal of assets                                              842                16,752                 17,594
Management fees                                                     110,064                13,204                123,268
Real estate taxes                                                   195,037                 8,274                203,311
Depreciation and amortization                                       417,518                43,340                460,858
                                                             --------------          ------------         --------------

     Total expenses                                         $     1,621,628         $     170,773        $     1,792,401
                                                             --------------          ------------         --------------

     Net Income                                             $       535,979         $      21,269        $       557,248
                                                             ==============          ============         ==============

</TABLE>

                                       12

<PAGE>

10.  Segment Reporting - Continued
     -----------------------------

<TABLE>

                                                                     Nine Months Ended September 30, 2000
                                                       -----------------------------------------------------------------

                                                           Residential             Commercial               Total
                                                       --------------------    -------------------   -------------------
<S>                                                         <C>                     <C>                  <C>
Rental income                                               $     7,061,080         $      588,481       $     7,649,561
Interest and other income                                           273,377                  1,472               274,849
Gain on sale of assets                                                5,188                      -                 5,188
                                                             --------------          -------------        --------------

     Total net revenues                                     $     7,339,645         $      589,953       $     7,929,598
                                                             --------------          -------------        --------------

Operating expenses and operating expenses -
  affiliated                                                $     2,882,267         $      257,180       $     3,139,447
Loss on disposal of assets                                          194,992                  3,220               198,212
Interest expense                                                    653,021                      -               653,021
Management fees                                                     373,514                 35,820               409,334
Real estate taxes                                                   696,293                 24,728               721,021
Depreciation and amortization                                     1,528,658                144,684             1,673,342
                                                             --------------          -------------        --------------

     Total expenses                                         $     6,328,745         $      465,632       $     6,794,377
                                                             --------------          -------------        --------------

     Net income                                             $     1,010,900         $      124,321       $     1,135,221
                                                             ==============          =============        ==============

</TABLE>

<TABLE>

                                                                     Nine Months Ended September 30, 1999
                                                       -----------------------------------------------------------------

                                                           Residential             Commercial               Total
                                                       --------------------    ------------------    -------------------
<S>                                                         <C>                  <C>                     <C>
Rental income                                               $     6,516,312      $        557,699        $     7,074,011
Interest and other income                                            18,043                   980                 19,023
                                                             --------------       ---------------         --------------

      Total net revenue                                     $     6,534,355      $        558,679        $     7,093,034
                                                             --------------       ---------------         --------------

Operating expenses and operating expenses -
  affiliated                                                $     2,554,115      $        253,719        $     2,807,834
Loss on disposal of assets                                          235,381                16,752                252,133
Management fees                                                     331,850                35,932                367,782
Real estate taxes                                                   585,109                24,823                609,932
Depreciation and amortization                                     1,186,301               119,723              1,306,024
                                                             --------------       ---------------         --------------

     Total expenses                                         $     4,892,756      $        450,949        $     5,343,705
                                                             --------------       ---------------         --------------

     Net income                                             $     1,641,599      $        107,730        $     1,749,329
                                                             ==============       ===============         ==============

</TABLE>

                                       13

<PAGE>



10.  Segment Reporting - Continued
     -----------------------------

     A reconciliation  of the totals reported for the operating  segments to the
     applicable  line items in the  consolidated  financial  statements  for the
     three months and nine months ended September 30, 2000 and 1999 is necessary
     given amounts  recorded at the  Partnership  level and not allocated to the
     operating properties for internal reporting purposes.

<TABLE>

                                                                             Three Months Ended September 30,
                                                                      -----------------------------------------------
                                                                              2000                      1999
                                                                      --------------------     ----------------------
NET REVENUES
------------
<S>                                                                       <C>                        <C>
Total revenues for reportable segments                                    $      2,886,458           $      2,349,649
Other income for Partnership                                                         5,271                      5,560
                                                                           ---------------            ---------------

     Total net revenues                                                   $      2,891,729           $      2,355,209
                                                                           ===============            ===============

INTEREST EXPENSE
----------------
Interest expense for reportable segments                                  $        216,769           $              -
Interest expense for Partnership                                                   464,829                    502,839
                                                                           ---------------            ---------------

     Total interest expense                                               $        681,598           $        502,839
                                                                           ===============            ===============

DEPRECIATION AND AMORTIZATION
-----------------------------
Total depreciation and amortization for reportable segments               $        616,546           $        460,858
Depreciation and amortization for Partnership                                       33,273                     15,922
                                                                           ---------------            ---------------

     Total depreciation and amortization                                  $        649,819           $        476,780
                                                                           ===============            ===============

NET INCOME (LOSS)
----------------
Total net income for reportable segments                                  $        411,156           $        557,248
Net loss for Partnership                                                          (173,922)                  (391,524)
Eliminations                                                                      (433,154)                  (242,587)
                                                                           ---------------            ---------------

     Total net loss                                                       $       (195,920)          $        (76,863)
                                                                           ===============            ===============

</TABLE>

                                       14

<PAGE>

10.  Segment Reporting - Continued
     -----------------------------

<TABLE>

                                                                             Nine Months Ended September 30,
                                                                    -------------------------------------------------
                                                                             2000                       1999
                                                                    ----------------------     ----------------------
NET REVENUES
------------
<S>                                                                       <C>                        <C>
Total revenues for reportable segments                                    $      7,929,598           $      7,093,034
Other income for Partnership                                                        12,884                     10,687
                                                                           ---------------            ---------------

     Total consolidated net revenues                                      $      7,942,482           $      7,103,721
                                                                           ===============            ===============

INTEREST EXPENSE
----------------
Interest expense for reportable segments                                  $        653,021           $              -
Interest expense for Partnership                                                 1,332,280                  1,461,208
                                                                           ---------------            ---------------

     Total interest expense                                               $      1,985,301           $      1,461,208
                                                                           ===============            ===============

DEPRECIATION AND AMORTIZATION
-----------------------------
Total depreciation and amortization for reportable segments               $      1,673,342           $      1,306,024
Depreciation and amortization for Partnership                                       99,196                     79,512
                                                                           ---------------            ---------------

     Total depreciation and amortization                                  $      1,772,538           $      1,385,536
                                                                           ===============            ===============

NET INCOME (LOSS)
-----------------
Total net income for reportable segments                                  $      1,135,221           $      1,749,329
Net loss for Partnership                                                          (838,166)                (1,162,912)
Eliminations                                                                      (961,608)                  (739,022)
                                                                           ---------------            ---------------

     Total net loss                                                       $       (664,553)          $       (152,605)
                                                                           ===============            ===============

</TABLE>

11.  Recent Accounting Pronouncement
     -------------------------------

     The  Emerging  Issues  Task  Force  ("EITF")  of the  Financial  Accounting
     Standards  Board  ("FASB")  has  reached a  consensus  on Issue  No.  00-1,
     "Applicability  of the Pro Rata Method of  Consolidation  to Investments in
     Certain  Partnerships  and Other  Unincorporated  Joint Ventures." The EITF
     reached  a  consensus  that  a  proportionate   gross  financial  statement
     presentation   (referred  to  as   "proportionate   consolidation"  in  the
     Partnership's  1999  Form  10-K  Notes  to  Financial  Statements)  is  not
     appropriate for an investment in an  unincorporated  legal entity accounted
     for by the equity  method of  accounting,  unless the investee is in either
     the  construction  industry  or an  extractive  industry  where  there is a
     longstanding practice of its use.

     The  consensus is  applicable to financial  statements  for annual  periods
     ending  after  June  15,  2000.  Upon  application  of the  consensus,  all
     comparative  financial  statements  shall be restated  to conform  with the
     consensus.  The  application  of  this  consensus  will  not  result  in  a
     restatement  of  previously   reported   partners'  equity  or  results  of
     operations,  but will result in a recharacterization or reclassification of
     certain financial  statements'  captions and amounts. The Partnership plans
     to restate its financial  statements using the equity method to account for
     its joint venture investments for the year ending December 31, 2000.

                                       15

<PAGE>

12.  Subsequent Events
     -----------------

     On October 3, 2000, the Partnership  obtained  additional  financing in the
     amount of $200,000 from a bank. It is an unsecured  short term note with an
     interest  rate of Prime and a maturity  date of January 3, 2001.  It is the
     Partnership's  intention to pay off this note upon the approval and funding
     of a first mortgage loan commitment  which was applied for on June 22, 2000
     (See Notes to Financial Statements - Note 6).

     On October  18,  2000,  the  remaining  availability  of  $231,144,  on the
     mortgage payable with an outstanding balance of $11,852,711 as of September
     30, 2000,  was funded by the mortgage  company.  Upon receipt of the funds,
     the  Partnership  released all remaining  retainage held in relation to the
     Park Place  Apartments Phase III and paid the final  construction  invoices
     received for Park Place Apartments Phase III.

                                       16

<PAGE>

Item 2. Management's Discussion and Analysis of Financial Condition and Results
        ------------------------------------------------------------------------
        of Operations
        -------------

Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  ("MD&A") is  structured  in four major  sections.  The first section
provides  information  related to  occupancy  levels and rental and other income
generated  by the  Partnership's  properties.  The  second  analyzes  results of
operations on a consolidated basis. The final sections address consolidated cash
flows and  financial  condition.  A  discussion  of  certain  market  risks also
follows.  MD&A should be read in  conjunction  with the Financial  Statements in
Item 1 and the Cautionary Statements below.

Cautionary Statements
---------------------

Some  of  the  statements  included  in  this  Item 2 may  be  considered  to be
"forward-looking  statements" since such statements relate to matters which have
not yet occurred.  For example,  phrases such as "the Partnership  anticipates,"
"believes"  or   "expects,"   indicate  that  it  is  possible  that  the  event
anticipated,  believed or expected  may not occur.  Should such event not occur,
then the result which the Partnership  expected also may not occur or occur in a
different  manner,  which may be more or less favorable to the Partnership.  The
Partnership does not undertake any obligations to publicly release the result of
any revisions to these  forward-looking  statements  that may be made to reflect
any future events or circumstances.

Any  forward-looking  statements  included in MD&A, or elsewhere in this report,
which reflect management's best judgement, based on factors known, involve risks
and uncertainties. Actual results could differ materially from those anticipated
in any  forward-looking  statements as a result of a number of factors including
but not  limited  to those  discussed  below.  Any  forward-looking  information
provided by the  Partnership  pursuant to the safe harbor  established by recent
securities legislation should be evaluated in the context of these factors.

The  Partnership's  liquidity,  capital  resources and results of operations are
subject to a number of risks and uncertainties including, but not limited to the
following:  the ability of the  Partnership  to achieve  planned  revenues;  the
ability of the Partnership to make payments due under its debt  agreements;  the
ability of the  Partnership  to negotiate  and  maintain  terms with vendors and
service providers for operating expenses;  competitive  pressures from the other
real estate  companies,  including large  commercial and residential real estate
companies,  which may  affect  the nature  and  viability  of the  Partnership's
business  strategy;  trends in the economy as a whole which may affect  consumer
confidence and demand for the types of rental property held by the  Partnership;
the  ability of the  Partnership  to predict  the  demand  for  specific  rental
properties;  the  ability  of the  Partnership  to attract  and retain  tenants;
availability  and costs of management and labor employed;  real estate occupancy
and  development  costs,   including  the  substantial  fixed  investment  costs
associated with renovations  necessary to obtain new tenants and retain existing
tenants;  and the risk of a major commercial  tenant defaulting on its lease due
to risks  generally  associated  with real estate,  many of which are beyond the
control of the  Partnership,  including  general or local  economic  conditions,
competition, interest rates, real estate tax rates, other operating expenses and
acts of God.

                                       17

<PAGE>

Results of Operations
---------------------

The  occupancy  levels at  Partnership's  properties  as of September 30 were as
follows:

<TABLE>

                                                                              Nine Months Ended September 30,
                                                                    ---------------------------------------------------
                                                                           2000 (1)                      1999
                                                                    -----------------------    ------------------------
Wholly-owned Properties
-----------------------
<S>                                                                           <C>                        <C>
Sabal Park Apartments                                                         96%                        93%
Park Place Apartments Phase I (2)                                             76%                        93%
Willow Lake Apartments                                                        97%                        78%
Park Place Apartments Phase III (3)                                           47%                        N/A

Property Owned in Joint Venture with NTS-Properties IV
------------------------------------------------------
(Ownership % at September 30, 2000)
-----------------------------------
Golf Brook Apartments (96.03%)                                                95%                        93%
Plainview Point III Office Center (95.04%)                                    91%                        91%

</TABLE>

(1)  Current occupancy levels are considered  adequate to continue  operation of
     all the underlying  properties,  without additional financing,  except Park
     Place  Apartments  Phase III. Park Place  Apartments Phase III is currently
     undergoing an effort to lease the recently completed apartments.
(2)  In the opinion of the General Partner of the  Partnership,  the decrease in
     occupancy  is  only a  temporary  fluctuation  and  does  not  represent  a
     permanent downward occupancy trend.
(3)  On May 19, 2000, the last building at Park Place  Apartments  Phase III was
     certified for occupancy.  As of September 30, 2000, there are 152 apartment
     units available for lease of which 71 are occupied. There were 14 apartment
     units certified for occupancy as of September 30, 1999.

The average  occupancy levels at the  Partnership's  properties during the three
months and nine months ended September 30 were as follows:

<TABLE>

                                                                      Three Months Ended              Nine Months Ended
                                                                        September 30,                   September 30,
                                                                 ---------------------------     ----------------------------
                                                                    2000            1999             2000            1999
                                                                 -----------     -----------     ------------    ------------
Wholly-owned Properties
-----------------------
<S>                                                                  <C>             <C>             <C>             <C>
Sabal Park Apartments                                                97%             94%             97%             96%
Park Place Apartments Phase I (1)                                    78%             92%             84%             88%
Willow Lake Apartments                                               96%             78%             92%             78%
Park Place Apartments Phase III (2)                                  42%             N/A             N/A             N/A

Property Owned in Joint Venture with NTS-Properties IV
------------------------------------------------------
(Ownership % at September 30, 2000)
-----------------------------------
Golf Brook Apartments (96.03%)                                       95%             92%             93%             93%
Plainview Point III Office Center (95.04%) (1)                       91%             91%             89%             91%

</TABLE>

(1)  In the opinion of the General Partner of the  Partnership,  the decrease in
     average occupancy is only a temporary  fluctuation and does not represent a
     permanent downward occupancy trend.
(2)  Average occupancy is not applicable for Park Place Apartments Phase III for
     the nine months ended September 30, 2000 and 1999, and for the three months
     ended  September  30, 1999,  due to the fact that units were  certified for
     occupancy at different times starting  September 8, 1999 and ending May 19,
     2000.

                                       18

<PAGE>

Results and Operations - Continued
----------------------------------

Rental and other income generated by the Partnership's  properties for the three
months and nine months ended September 30, 2000 and 1999 were as follows:

<TABLE>

                                                              Three Months Ended                   Nine Months Ended
                                                                September 30,                        September 30,
                                                       --------------------------------   -----------------------------------
                                                            2000              1999              2000               1999
                                                       --------------    --------------   ----------------    ---------------
Wholly-owned Properties
-----------------------
<S>                                                    <C>               <C>              <C>                 <C>
Sabal Park Apartments                                  $      489,427    $      488,668   $      1,462,232    $     1,420,452
Park Place Apartments Phase I                          $      414,807    $      489,414   $      1,324,928    $     1,389,456
Willow Lake Apartments                                 $      628,685    $      477,091   $      1,793,617    $     1,568,551
Park Place Apartments Phase III                        $      194,363               N/A   $        368,192                N/A

Property Owned in Joint Venture with NTS-
-----------------------------------------
Properties IV (Ownership % at September 30,
-------------------------------------------
2000)
-----
Golf Brook Apartments (96.03%)                         $      955,817    $      700,763   $      2,390,676    $     2,154,227
Plainview Point III Office Center (95.04%)             $      203,359    $      192,042   $        589,953    $       558,679

</TABLE>

Revenues shown in the table above for  properties  owned through a joint venture
represent only the Partnership's percentage interest in those revenues.

The following is an analysis of material  changes in results of  operations  for
the  periods  ending  September  30,  2000 and 1999.  Items  that did not have a
material  impact on operations  for the periods  listed above have been excluded
from this discussion.

Rental income  increased  approximately  $285,000 or 12 % and $576,000 or 8% for
the three months and nine months ended  September  30,  2000,  respectively,  as
compared  to the same  periods  in 1999.  The  increase  in  rental  income  was
primarily a result of rental income collected at Park Place Apartments Phase III
(Park  Place  Apartments  Phase III was not in full  operation  during the three
months or nine months ended September 30, 1999),  increased average occupancy at
Willow Lake Apartments and increased  rental rates at Plainview Point III Office
Center.  The increase is partially offset by decreased average occupancy at Park
Place Apartments Phase I.

Period-ending occupancy percentages represent occupancy only on a specific date;
therefore,  the above analysis considers average occupancy  percentages that are
representative of the entire year's results.

Other income increased  approximately $252,000 and $258,000 for the three months
and nine months ended September 30, 2000, respectively,  as compared to the same
periods  in 1999,  primarily  as a result of a  settlement  claim  received  for
defective siding at Golf Brook Apartments.

                                       19

<PAGE>

Results of Operations - Continued
---------------------------------

Operating expenses increased  approximately $183,000 or 27% for the three months
ended September 30, 2000, as compared to the same period in 1999,  primarily due
to the following:  1) expenses incurred by Park Place Apartments Phase III (Park
Place  Apartments  Phase III was not in full  operation  during the three months
ended  September 30, 1999) mainly for  advertising,  insurance,  landscaping and
utility  expenses,  2)  increased  repairs and  maintenance  costs at Golf Brook
Apartments  (floor  covering,  plumbing,  appliances and security  alarms net of
decreased  parking lot expenses) and Willow Lake Apartments  (interior paint and
repairs net of decreased  shower stall  expenses),  3) increased  administrative
costs  at  Golf  Brook  Apartments  (temporary  services  for  vacant  assistant
position)  and Willow Lake  Apartments  (professional  fees for  protesting  tax
assessment), and 4) increased landscaping costs at Park Place Apartments Phase I
and Sabal  Park  Apartments.  The  increase  is  partially  offset by  decreased
advertising  at Willow Lake  Apartments  and  decreased  utilities at Park Place
Apartments Phase I.

Operating expenses increased  approximately  $274,000 or 15% for the nine months
ended September 30, 2000, as compared to the same period in 1999,  primarily due
to the following:  1) expenses incurred by Park Place Apartments Phase III (Park
Place  Apartments  Phase III was not in full  operation  during the nine  months
ended  September 30, 1999) mainly for  advertising,  landscaping,  utilities and
insurance,  2) increased  advertising  at Willow Lake  Apartments and Golf Brook
Apartments,  3) increased repairs and maintenance costs at Park Place Apartments
Phase I (wood  replacement),  Sabal Park Apartments  (appliances and heating and
air conditioning expenses),  Golf Brook Apartments (floor covering,  heating and
air conditioning  expenses,  and plumbing net of decreased interior painting and
repairs and  parking lot  expenses),  and at Willow  Lake  Apartments  (interior
painting  and  repairs),  4)  increased   administrative  costs  at  Golf  Brook
Apartments  (temporary  services for vacant assistant  position) and Willow Lake
Apartments (professional fees from protesting tax assessment),  and 5) increased
amortization  of  prepaid  leasing  commissions  at  Plainview  Point III Office
Center.  The increase is partially offset by: 1) decreased  landscaping at Sabal
Park Apartments,  2) decreased  signage at Plainview Point III Office Center, 3)
decreased employee training at Golf Brook Apartments, and 4) decreased utilities
at Park Place Apartments Phase I.

Operating  expenses  -  affiliated  increased  approximately  $37,000 or 12% and
$58,000 or 6% for the three  months and nine months  ended  September  30, 2000,
respectively,  as  compared  to the same  periods in 1999.  The  increases  were
primarily a result of expenses incurred by Park Place Apartments Phase III (Park
Place  Apartments  Phase III was not in full operation  during the three or nine
months ended  September  30, 1999) and  increased  overhead  costs and personnel
costs at Plainview  Point III Office  Center due to changes in allocation of the
costs. The increase is partially offset by decreased overhead costs allocated at
Willow  Lake  Apartments  and  Golf  Brook  Apartments.   Operating  expenses  -
affiliated  are expenses  incurred  for  services  performed by employees of NTS
Development Company, an affiliate of the General Partner.

The loss on disposal of assets for the three  months ended  September  30, 2000,
was a result of partially  retiring  clubhouse  assets at Park Place  Apartments
Phase I as a result of clubhouse renovations completed in 2000.

                                       20

<PAGE>

Results of Operations - Continued
---------------------------------

The loss on disposal of assets for the nine months ended September 30, 2000, was
a result of partially retiring clubhouse assets at Golf Brook Apartments,  Sabal
Park Apartments and Park Place  Apartments  Phase I as a result of the clubhouse
renovations completed in 2000.

The loss on disposal of assets for the three  months ended  September  30, 1999,
was a result of retiring common area assets at Plainview Point III Office Center
that were not fully depreciated.

The loss on disposal of assets for the nine months ended September 30, 1999, was
a result of  retirements  made in  relation  to a signage  project at Sabal Park
Apartments,  an exterior wood  replacement  project at Sabal Park Apartments and
Golf  Brook  Apartments  and common  area  assets  and  tenant  improvements  at
Plainview Point III Office Center.

Interest expense increased approximately $179,000 or 36% and $524,000 or 36% for
the three months and nine months ended  September  30,  2000,  respectively,  as
compared to the same periods in 1999, as a result of the Partnership's increased
mortgage  debt.  The  increase in debt level is  partially  offset by  continued
principal  payments.  The  increase in interest  expense is also due to interest
capitalized on the Park Place Apartments Phase III construction  decreasing from
approximately  $172,000  for the  nine  months  ended  September  30,  1999,  to
approximately $26,000 for the same period in 2000. This reduction in capitalized
interest has  effectively  increased  interest  expense for the three months and
nine months ended September 30, 2000, as compared to the same periods in 1999.

Management  fees are  calculated as a percentage of cash  collections,  however,
revenue  for  reporting  purposes  is on the  accrual  basis.  As a result,  the
fluctuations of revenues  between  periods will differ from the  fluctuations of
management fee expense.  Management fees increased  approximately $27,000 or 22%
and $42,000 or 11% for the three  months and nine  months  ended  September  30,
2000,  respectively,  as compared to the same  periods in 1999,  primarily  as a
result of increased rental income collected (resulting from increased occupancy)
and a settlement claim received for defective siding at Golf Brook Apartments.

Real estate taxes increased approximately $21,000 or 10% and $111,000 or 18% for
the three months and nine months ended  September  30,  2000,  respectively,  as
compared to the same periods in 1999, primarily as a result of the following: 1)
real estate  taxes for Park Place  Apartment  Phase III (Park  Place  Apartments
Phase III was not in full operation during the three months or nine months ended
September  30,  1999),  2) increased  estimated  property  taxes for Willow Lake
Apartments and 3) increased  assessments at Golf Brook Apartments and Sabal Park
Apartments.

Professional and administrative  expenses decreased approximately $23,000 or 38%
and $46,000 or 24% for the three  months and nine  months  ended  September  30,
2000,  respectively,  as compared to the same periods in 1999.  This decrease is
due  primarily to decreased  legal fees in relation to tender offers and general
services and to decreased recruiting fees and temporary services.

                                       21

<PAGE>

Results of Operations - Continued
---------------------------------

Professional and administrative  expenses - affiliated  increased  approximately
$16,000 or 26% and  $55,000 or 31% for the three  months and nine  months  ended
September  30,  2000,  respectively,  as compared  to the same  periods in 1999,
primarily as a result of increased  finance and  accounting  salary costs due to
changes in staff.  Professional  and  administrative  expenses - affiliated  are
expenses  incurred  for  services  performed  by  employees  of NTS  Development
Company, an affiliate of the General Partner.

Depreciation expense increased approximately $173,000 or 36% and $387,000 or 28%
for the three months and nine months ended September 30, 2000, respectively,  as
compared to the same periods in 1999, primarily as a result of the following: 1)
capitalization  of  Park  Place  Apartments  Phase  III's   construction   costs
(approximately  $11,219,000),  2) tenant finish and common area  replacements at
Plainview  Point  III  Office  Center,  net  of  retirements,  and  3)  building
improvements and fitness center  renovation  costs, net of retirements,  at Golf
Brook Apartments and Sabal Park Apartments.  The increase is partially offset by
a portion of the original land improvements, building improvements and amenities
at the Partnership's underlying properties becoming fully depreciated.

Depreciation  is computed  using the  straight-line  method  over the  estimated
useful  lives of the assets  which are 10-30 years for land  improvements,  7-30
years for building  improvements,  5-30 years for amenities  and the  applicable
lease term for tenant  improvements.  The  aggregate  cost of the  Partnership's
properties for Federal tax purposes is approximately $62,358,000.

Consolidated Cash Flows and Financial Condition
-----------------------------------------------

Cash flows provided by (used in):

<TABLE>

                                                                             Nine Months Ended September 30,
                                                                 -------------------------------------------------------
                                                                            2000                         1999
                                                                 --------------------------    -------------------------
<S>                                                                  <C>                           <C>
Operating activities                                                 $            1,257,113        $           2,336,986
Investing activities                                                             (2,283,379)                  (6,192,983)
Financing activities                                                              1,618,467                    3,830,020
                                                                      ---------------------         --------------------

     Net increase (decrease) in cash and equivalents                 $              592,201        $             (25,977)
                                                                      =====================         ====================

</TABLE>

Net cash provided by operating activities decreased approximately  $1,080,000 or
46% for the nine months ended September 30, 2000, as compared to the same period
in 1999.  The decrease in net cash provided by operating  activities  was driven
primarily by 1) increased net loss, 2) decreased accounts payable,  3) increased
prepaid expenses,  and 4) decreased loss on disposal of assets.  The decrease is
partially offset by an increased collection of accounts receivable.

The  decrease in net cash used in  investing  activities  during the nine months
ended  September 30, 2000, as compared to the same period in 1999, was primarily
due to decreased  capital  expenditures  (construction  of Park Place Apartments
Phase III is in its final stage).

                                       22

<PAGE>

Consolidated Cash Flows and Financial Condition - Continued
-----------------------------------------------------------

The  decrease in net cash  provided  by  financing  activities,  during the nine
months ended  September  30, 2000,  as compared to the same period in 1999,  was
primarily due to a decrease in proceeds from mortgage  loans (there was only one
draw made on the Park  Place  Apartments  Phase I and III loan  during  the nine
months ended September 30, 2000).  The decrease is partially offset by decreased
cash  distributions  and a decrease  in the  repurchase  of Limited  Partnership
Units.

On March 21, 2000, the Partnership  notified its Limited  Partners that it would
be  suspending  distributions  starting  January  1,  2000.  The  suspension  is
necessary due to significant capital  improvements  essential to maintaining the
buildings and facilities  owned by the  Partnership  at Willow Lake  Apartments,
Park Place Apartments Phase I, Sabal Park Apartments and Golf Brook  Apartments.
The  Partnership's  cash  position  will be  evaluated  on an  ongoing  basis to
determine when resumption of distributions is appropriate.

The  Partnership  used cash flow  from  operations  and cash on hand to pay a 1%
(annualized)  distribution  of $301,810 for the nine months ended  September 30,
1999.  The  annualized  distribution  rate is  calculated  as a  percent  of the
original capital contribution. The Limited Partners received 99% and the General
Partner received 1% of these distributions.

The table below  presents  that portion of the  distributions  that  represent a
return of capital on a GAAP basis for the nine months ended  September  30, 2000
and 1999.  These  distributions  were funded by cash flow derived from operating
activities.

<TABLE>

                                                      Net                         Cash
                                                      Loss                    Distributions                Return of
                                                   Allocated                    Declared                    Capital
                                            ------------------------     -----------------------     ----------------------
Limited Partners:
                 <S>                        <C>                          <C>                         <C>
                 2000                       $               (657,907)    $                     -     $                    -
                 1999                       $               (151,079)    $               298,792     $              298,792
General Partner:
                 2000                       $                 (6,646)    $                     -     $                    -
                 1999                       $                 (1,526)    $                 3,018     $                3,018

</TABLE>

The demand on future  liquidity  is  anticipated  to increase as a result of the
replacement  of roofs at both Willow Lake  Apartments  (26  buildings)  and Park
Place  Apartments  Phase I (24  buildings)  all of which  were  installed  using
shingles  produced  by a single  manufacturer.  The  shingles  appear to contain
defects  which  may cause the  roofs to fail  before  the end of their  expected
useful lives. As the manufacturer has declared bankruptcy,  the Partnership does
not expect to be able to recover any of the costs of the roof replacements.  The
Partnership  does not have  sufficient  working  capital to make all of the roof
replacements  at once  and  intends  to make the  replacements  over the next 36
months.  As of September 30, 2000, four buildings at Willow Lake Apartments have
had roofs replaced. The total cost of replacing the remaining roofs is estimated
to be $920,000 ($20,000 per building).

                                       23

<PAGE>

Consolidated Cash Flows and Financial Condition - Continued
-----------------------------------------------------------

In the next 12 months,  the demand on future  liquidity is also  anticipated  to
increase as the  Partnership  continues  its efforts in the leasing of Plainview
Point III Office  Center.  At this time,  the future  leasing and tenant  finish
costs,  which will be required to renew the  current  leases that expire  during
2000 or obtain new tenants, are unknown.

On  March  24,  2000,  the  Partnership  and  ORIG,  LLC,  an  affiliate  of the
Partnership (the  "Offerors"),  filed a tender offer (the "Fourth Tender Offer")
with the  Securities and Exchange  Commission,  commencing on March 27, 2000, to
purchase up to 200 of the Partnership's  limited partnership Units at a price of
$380 per Unit.  The  Fourth  Tender  Offer  stated  that the  Partnership  would
purchase  the first 100 Units  tendered  and  would  fund its  purchase  and its
portion of the expenses from cash flow from  operations.  If more than 100 Units
were tendered,  ORIG, LLC would purchase up to an additional 100 Units.  If more
than 200 Units  were  tendered,  the  Offerors  had the  option to  acquire  the
additional  Units on a pro-rata basis.  The Fourth Tender Offer was scheduled to
expire on June 27, 2000.

On June 23, 2000, the Partnership  filed an amendment to the Fourth Tender Offer
which  extended  the  expiration  date of the Fourth  Tender Offer to August 15,
2000.

On August 15, 2000, the Fourth Tender Offer expired. A total of 3,685 Units were
tendered  and  the  Offerors  accepted  all  Units  tendered.   The  Partnership
repurchased  100 Units at a cost of $38,000 and ORIG, LLC purchased  3,585 Units
at a cost of $1,362,300.  The expenses  associated  with the Fourth Tender Offer
were $36,686 of which the Partnership  incurred $575 and ORIG incurred  $36,111.
Units acquired by the Partnership  will be retired.  Units acquired by ORIG, LLC
will be held by it. The General Partner,  NTS-Properties  Associates VI, did not
participate in the Fourth Tender Offer.

On July 14,  2000, a  settlement  agreement  relative to a class action suit was
executed  in a claim  the  Partnership  had  against  Masonite  Corporation  for
defective  hardboard  siding  installed  at  Golf  Brook  Apartments.   Masonite
Corporation  settled on 15 of 19 buildings at Golf Brook  Apartments  and paid a
total of approximately $254,000. An agreement has not been reached, at this time
for the remaining four buildings.

On July 19, 2000,  there was a fire at Golf Brook  Apartments.  Eight  apartment
units sustained fire and/or smoke damage. The Partnership filed a claim with its
insurance company, and after meeting the $5,000 deductible,  received an advance
of $100,000 subsequent to September 30, 2000. It is unknown at this time, if the
costs of the repairs to the eight  apartments will be completely  covered by the
insurance claim.

                                       24

<PAGE>

Consolidated Cash Flows and Financial Condition - Continued
-----------------------------------------------------------

In an effort to continue to improve occupancy at the  Partnership's  residential
properties,  the Partnership has an on-site leasing staff,  who are employees of
NTS Development Company, at each of the apartment communities. The staff handles
all on-site visits from potential  tenants,  coordinates  local advertising with
NTS Development  Company's  marketing staff,  makes visits to local companies to
promote fully furnished  apartments,  and negotiates lease renewals with current
residents.

The leasing and renewal  negotiations for the Partnership's  commercial property
are handled by leasing  agents,  who are employees of NTS  Development  Company,
located in Louisville, Kentucky. The leasing agents are located in the same city
as the commercial  property.  All  advertising  for the  commercial  property is
coordinated by NTS Development  Company's marketing staff located in Louisville,
Kentucky.

Leases at Plainview  Point III Office  Center  provide for tenants to contribute
toward the payment of increases in common area maintenance expenses,  insurance,
utilities and real estate  taxes.  These lease  provisions,  along with the fact
that residential  leases are generally for a period of one year,  should protect
the Partnership's operations from the impact of inflation and changing prices.

                                       25

<PAGE>

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
         ----------------------------------------------------------

The Partnership's  primary risk exposure with regard to financial instruments is
changes in interest  rates.  All of the  Partnership's  debt bears interest at a
fixed rate with the exception of the $2,992,882 note payable that bears interest
at the  Euro-Rate  plus 225 basis points and the $13,125 note payable that bears
interest at the Prime Rate + 1%. At September 30, 2000, a hypothetical 100 basis
point  increase  in  interest  rates  would  result  in  approximately   $30,000
additional  annual  interest  expense on the variable rate  mortgages.  The same
increase in interest rates would also result in an approximate $873,000 decrease
in the fair value of debt held by the Partnership.

                                       26

<PAGE>

PART II.          OTHER INFORMATION
                  -----------------

Item 1.           Legal Proceedings
                  -----------------

                  On July 14, 2000, a settlement agreement relative to a class
                  action  suit was  executed  in a claim the  Partnership  had
                  against Masonite  Corporation for defective hardboard siding
                  installed  at Golf Brook  Apartments.  Masonite  Corporation
                  settled on 15 of 19 buildings at Golf Brook  Apartments  and
                  paid a total of approximately $254,000. An agreement has not
                  been reached, at this time for the remaining four buildings.


Item 2.           Changes in Securities
                  ---------------------

                  Not applicable.

Item 3.           Defaults Upon Senior Securities
                  -------------------------------

                  Not applicable.

Item 4.           Submission of Matters to a Vote of Security Holders
                  ---------------------------------------------------

                  Not applicable.

Item 5.           Other Information
                  -----------------

                  Not applicable.

Item 6.           Exhibits and Reports on Form 8-K
                  --------------------------------

                  a)       Exhibits:

                           Exhibit 27. Financial Data Schedule

                  b)       Reports on Form 8-K:

                           Not applicable.

                                       27

<PAGE>

                                   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.


                                                   NTS-PROPERTIES VI,
                                             A Maryland Limited Partnership
                                       -----------------------------------------
                                                     (Registrant)

                                       By:      NTS-Properties Associates VI,
                                                General Partner
                                                By:      NTS Capital Corporation
                                                         General Partner



                                       /s/ Gregory A. Wells
                                       -----------------------------------------
                                       Gregory A. Wells
                                       Senior Vice President and
                                       Chief Financial Officer of
                                       NTS Capital Corporation


Date: November 13, 2000

                                       28

<PAGE>