<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549
                               -----------------

                                   FORM 10-K

                 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the fiscal year ended December 31, 1997
                          Commission File No. 0-17807

                         COPLEY PENSION PROPERTIES VI;
                       A REAL ESTATE LIMITED PARTNERSHIP

            (Exact name of registrant as specified in its charter)
        Massachusetts                                 04-2988542
(State or other jurisdiction of                    (I.R.S. Employer
incorporation or organization)                     Identification No.)

    225 Franklin Street, 25th FL.
      Boston, Massachusetts                             02110
(Address of principal executive offices)               (Zip Code)

               Registrant's telephone number, including area code:
                                (617) 261-9000

           Securities registered pursuant to Section 12(b) of the Act:
                                     None

          Securities registered pursuant to Section 12(g) of the Act:
                     Units of Limited Partnership Interest

                               (Title of Class)

     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 (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
                                             Yes X  No
                                                ---    ---

     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [X]

         No voting stock is held by nonaffiliates of the Registrant.

                      DOCUMENTS INCORPORATED BY REFERENCE

                                     None
<PAGE>

                                     Part I
                                     ------
      Item 1.  Business.
               --------

              Copley Pension Properties VI; A Real Estate Limited Partnership
      (the "Partnership") (formerly New England Pension Properties VI; A Real
      Estate Limited Partnership) was organized under the Uniform Limited
      Partnership Act of the Commonwealth of Massachusetts on October 16, 1987,
      to invest primarily in newly constructed and existing income-producing
      real properties.

              The Partnership was initially capitalized with contributions of
      $2,000 in the aggregate from Sixth Copley Corp. (the "Managing General
      Partner") and GCOP Associates Limited Partnership (the "Associate General
      Partner") (collectively, the "General Partners") and $10,000 from Copley
      Real Estate Advisors, Inc. (the "Initial Limited Partner"). The
      Partnership filed a Registration Statement on Form S-11 (the "Registration
      Statement") with the Securities and Exchange Commission on October 26,
      1987, with respect to a public offering of 80,000 units of limited
      partnership interest at a price of $1,000 per unit (the "Units") with an
      option to sell up to an additional 80,000 Units (an aggregate of
      $160,000,000). The Registration Statement was declared effective on
      January 20, 1988.

              The first sale of Units occurred on July 28, 1988, at which time
      the Initial Limited Partner withdrew its contribution from the
      Partnership. Investors were admitted to the Partnership thereafter at
      monthly closings; the offering terminated and the last group of
      subscription agreements was accepted by the Partnership on December 31,
      1988. At the termination of the offering, a total of 48,788 Units had been
      sold, a total of 6,396 investors had been admitted as limited partners
      (the "Limited Partners") and a total of $48,511,620 net of discounts had
      been contributed to the capital of the Partnership. The remaining 111,212
      Units were de-registered on February 10, 1989.

              As of December 31, 1997 the Partnership is invested in the four
      real property investments described below. During 1990, a joint venture
      in which the Partnership was a partner sold its interest in a fifth real
      estate investment located in Chino Hills, California. The Partnership made
      a distribution to the Limited Partners in the amount of $48.17 per Unit.
      During 1994, a joint venture in which the Partnership was a partner sold
      its interest in a sixth investment located in Phoenix, Arizona. The
      Partnership made a distribution to the Limited Partners of $182.85 per
      Unit. During 1997, the Partnership sold a seventh investment located in
      Farmers Branch, Texas. The Partnership made a capital distribution to the
      Limited Partners of $88.84 per unit. The Partnership has no current plans
      to renovate, improve or further develop any of its real property
      investments. In the opinion of the Managing General Partner of the
      Partnership, the properties are adequately covered by insurance.

              The Partnership has no employees. Services are performed for the
      Partnership by the Managing General Partner and affiliates of the Managing
      General Partner.

              A.     Industrial Building in Carson, California ("Wilmington
                     ------------------------------------------------------
                     Industrial").
                     -------------

              On July 18, 1988 the Partnership acquired a 60% interest in a
      joint venture with an affiliate of The Hewson Company. On November 15,
      1989, the Partnership agreed to increase its maximum commitment from
      $6,685,000 to $7,285,000. On February 1, 1991, the Partnership agreed to
      increase its maximum commitment to $8,085,000. The Partnership made
      capital contributions totaling $7,774,402. As of December 31, 1991,
      because of the developer partner's inability to fund its share of capital
      contributions, the Partnership assumed 100% ownership of the joint
      venture's assets, which consist primarily of approximately 5.77 acres of
      land in Carson, California and a 115,732 square
<PAGE>

      foot multi-tenant industrial building located thereon. As of December 31,
      1997, the building was 100% leased.

              B.     Apartment Complex in Frederick, Maryland ("Waterford
                     ----------------------------------------------------
                     Apartments").
                     -------------

              On March 20, 1989 the Partnership acquired a 48.75% interest in a
      joint venture formed with Copley Pension Properties VII; A Real Estate
      Limited Partnership, an affiliate of the Partnership (the "Affiliate")
      with a 16.25% interest, and Frederick Bozzuto Limited Partnership. On
      October 23, 1990 the Partnership agreed to increase its maximum commitment
      from $9,000,000 to $14,100,000 of which $10,575,000 is considered Senior
      Capital and $3,525,000 is considered Junior Capital. As of December 31,
      1997, the Partnership had contributed $14,099,978 to the capital of the
      joint venture. The joint venture agreement entitles the Partnership and
      the Affiliate to receive a preferred return on their respective invested
      capital at the rate of 10.09% per annum. Such preferred return will be
      payable currently until the Partnership and the Affiliate have received an
      aggregate of $687,471; thereafter, the preferred return on the Senior
      Capital will be payable currently and the preferred return on the Junior
      Capital will accrue and bear interest at the rate of 10.09% per annum,
      compounded monthly, if sufficient cash flow is not available therefor. In
      the event of a sale or refinancing prior to the tenth anniversary of the
      joint venture agreement, the Partnership would be entitled to have 25% of
      its contribution repaid without premium and to have the remaining 75%
      repaid subject to a premium designed to preserve the stipulated rate of
      return through the ninth anniversary of the joint venture agreement. The
      joint venture agreement also entitles the Partnership to receive 48.75% of
      remaining cash flow and 48.75% of sale and refinancing proceeds following
      the return of the Partnership's and the Affiliate's equity.

              On February 11, 1998, Frederick Bozzuto Limited Partnership filed
      a declaratory judgment action in the Circuit Court for Baltimore County.
      The Partnership and the Affiliate had declared that an impasse under the
      joint venture agreement existed because of a disagreement between the
      Partnership and the Affiliate, on the one hand, and Frederick Bozzuto
      Limited Partnership, on the other hand, with respect to the contents of
      the business plan to be adopted by the joint venture for 1998. The
      Partnership and the Affiliate had sought to effect the dissolution of the
      joint venture pursuant to the terms of the joint venture agreement. The
      declaratory judgment action asks the Court to hold that no impasse (and,
      hence, no right to dissolve the joint venture) can exist with respect to a
      disagreement over the contents of the annual business plan of the joint
      venture.

              The joint venture owns approximately 16.35 acres of land improved
      with a 295,074 square foot, 314-unit apartment complex, which was
      developed in two phases between 1989 and 1991. As of December 31, 1997,
      this complex was approximately 93% leased.

              C.     Industrial Building in Petaluma, California ("White
                     ---------------------------------------------------
                     Phonic").
                     ---------

              On April 30, 1990, the Partnership acquired a 50% interest in a
      joint venture with a partnership whose principals are William White and
      George Vila. As of December 31, 1997, the Partnership had contributed
      $3,294,860 to the capital of the joint venture. The maximum commitment is
      $3,450,000. The joint venture agreement entitles the Partnership to
      receive monthly preferred return payments at the rate of 10% per annum, of
      which a minimum of 9% is payable currently. If sufficient cash flow is not
      available therefor, up to 1% per annum may accrue and bear interest at the
      rate of 10% per annum for up to ten years. The joint venture agreement
      also entitles the Partnership to receive 50% of the remaining cash flow
      and 50% of sale and refinancing proceeds following the return of the
      Partnership's equity.

              The joint venture owns approximately 2.91 acres of land and has
      completed construction thereon of a single-story light industrial building
      containing approximately 35,100 square feet. As of December 31, 1997, the
      building was 100% leased to a single tenant.

              D.     Industrial Building in Itasca, Illinois ("Prentiss
                     --------------------------------------------------
                     Copystar").
                     -----------

              On May 23, 1991, the Partnership acquired a 51.75% interest in a
      joint venture formed with Copley Pension Properties VII; A Real Estate
      Limited Partnership, an affiliate of the Partnership (the "Affiliate")
      with a 23.25% interest, and with an affiliate of Prentiss Properties, Ltd.
      As of December 31, 1997, the Partnership had contributed $2,296,411 to
<PAGE>

      the capital of the joint venture, of which $63,563 had been returned to
      the Partnership. Of the capital contributed and not returned, $1,542,848
      is characterized as Senior Capital and $690,000 is characterized as Junior
      Capital. The joint venture agreement entitles the Partnership to receive a
      preferred compounded monthly return of 11% per annum of which the return
      on Senior Capital will be payable currently and the return on Junior
      Capital may accrue and compound monthly if sufficient cash flow is not
      available therefor. If the Senior Capital is repaid prior to the
      termination of the joint venture, the Partnership will be entitled to
      receive a return on the Senior Capital at the lesser of 11% per annum or
      the treasury rate for treasury bonds having a maturity date coinciding
      with the termination of the joint venture, plus 75 basis points. The joint
      venture agreement also entitles the Partnership to receive 51.75% of the
      net proceeds of sales and financings after return of its capital and
      51.75% of cash flow remaining after payment of the preferred return.

              The joint venture owns approximately 3.75 acres of land in Itasca,
      Illinois and during 1991 completed construction thereon of an
      approximately 70,535 square foot single-story industrial building. As of
      December 31, 1997, the building was 100% leased to a single tenant for a
      term which expires in 1999. The tenant has an option that commenced in
      September, 1995 to purchase the facility at fair market value. As of
      December 31, 1997, the tenant has not expressed any interest in exercising
      the option.
<PAGE>

      Item 2. Properties
              ----------

         The following table sets forth the annual realty taxes for the
Partnership's properties and information regarding tenants who occupy 10% or
more of gross leasable area (GLA) in the Partnership's properties:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                   Number
                                     of
                        Estimated Tenants                                        Annual
                           1998   with 10%                                      Contract                             Line of
                          Annual     or                               Square      Rent                               Business
                          Realty  More of       Names (s) of          Feet of      per       Lease      Renewal     of Principal
           Property       Taxes     GLA          Tenant(s)          Each Tenant  Sq. Ft.   Expiration   Options       Tenants
----------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>       <C>       <C>                     <C>         <C>        <C>        <C>         <C>
Industrial Building in    $75,876    6      Practical Packaging        26,647      $4.20   Jun, 1998      N/A     Packaging
Carson,  CA
                                            Continental Logistics      12,283      $5.16   Feb, 1998     M-T-M    Distribution

                                            O-Super Express            18,253      $4.80   Jun, 2000      N/A     Distribution

                                            Del Monte                  26,545      $5.40   Dec, 1999  Two 5 year  Fruit and Fruit
                                                                                                                  Products

                                            Continental Wire           11,682      $4.44   Dec, 1999      N/A     Wire Fabrication

                                            Haggen Dazs                12,000      $6.48   Dec, 1998      N/A     Ice Cream

Apartment Complex in     $276,192   N/A     N/A                           N/A        N/A      N/A         N/A     N/A
Frederick, MD
Industrial Building,      $42,120    1      Phonic Ear                 35,100     $12.88   May, 2008      Yes     Hearing Products
Petaluma, CA
Industrial Building,      $69,975    1      Mita Copystar of America,  70,535      $5.19   Sept, 1999    None     Photocopier
Itasca, IL                                  Inc.                                                                  Distributor
------------------------------------------------------------------------------------------------------------------------------------

</TABLE>
<PAGE>

         The following table sets forth for each of the last five years the
gross leasable area, occupancy rates, rental revenue, and net effective rent for
the Partnership's properties:

--------------------------------------------------------------------------------
                                    Gross               Rental
               PROPERTY           Leasable  Year-End   Revenue    Net Effective
                                     Area  Occupancy  Recognized Rent ($/sf/yr)*
--------------------------------------------------------------------------------

Industrial Building in Carson,  CA
----------------------------------
                 1993              115,732    100%      $639,297       $5.52
                 1994              115,732    100%      $641,008       $5.54
                 1995              115,732     89%      $620,300       $6.58
                 1996              115,732    100%      $709,199       $7.08
                 1997              115,732    100%      $752,941       $6.51

Apartment Complex in Frederick, MD
----------------------------------
                 1993              295,074     91%    $2,487,586       $9.16
                 1994              295,074     96%    $2,551,410       $9.25
                 1995              295,074     94%    $2,661,022       $9.57
                 1996              295,074     97%    $2,726,498       $9.70
                 1997              295,074     93%    $2,912,841       $10.50

Industrial Building, Petaluma, CA
---------------------------------
                 1993               35,100    100%      $416,146       $11.86
                 1994               35,100    100%      $416,146       $11.86
                 1995               35,100    100%      $416,146       $11.86
                 1996               35,100    100%      $416,146       $11.86
                 1997               35,100    100%      $429,242       $12.23

Industrial Building, Itasca, IL
-------------------------------
                 1993               70,535    100%      $467,000       $6.62
                 1994               70,535    100%      $475,000       $6.73
                 1995               70,535    100%      $479,000       $6.79
                 1996               70,535    100%      $492,000       $6.98
                 1997               70,535    100%      $462,000       $6.55
--------------------------------------------------------------------------------

* Net effective rent calculation is based on average occupancy during the
respective years.
<PAGE>

         Following is a schedule of lease expirations for each of the next ten
years for the Partnership's properties based on the annual contract rent in
effect at December 31, 1997:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                              TENANT AGING REPORT
                Property                    # of Lease        Total              Total          Percentage of
                                           Expirations     Square Feet       Annual Rental       Gross Annual
                                                                                                   Rental*
-----------------------------------------------------------------------------------------------------------------
<S>                                        <C>             <C>               <C>                <C>
Industrial Building in Carson,  CA
----------------------------------
                  1998                          4             59,222          $300,204                51%
                  1999                          2             38,227          $196,411                34%
                  2000                          1             18,253           $88,709                15%
                  2001                          0               0                   $0                 0%
                  2002                          0               0                   $0                 0%
                  2003                          0               0                   $0                 0%
                  2004                          0               0                   $0                 0%
                  2005                          0               0                   $0                 0%
                  2006                          0               0                   $0                 0%
                  2007                          0               0                   $0                 0%

Apartment Complex in Frederick, MD
----------------------------------
                  1998                         N/A             N/A                 N/A                N/A
                  1999                         N/A             N/A                 N/A                N/A
                  2000                         N/A             N/A                 N/A                N/A
                  2001                         N/A             N/A                 N/A                N/A
                  2002                         N/A             N/A                 N/A                N/A
                  2003                         N/A             N/A                 N/A                N/A
                  2004                         N/A             N/A                 N/A                N/A
                  2005                         N/A             N/A                 N/A                N/A
                  2006                         N/A             N/A                 N/A                N/A
                  2007                         N/A             N/A                 N/A                N/A

Industrial Building, Petaluma, CA
---------------------------------
                  1998                          0               0                   $0                 0%
                  1999                          0               0                   $0                 0%
                  2000                          0               0                   $0                 0%
                  2001                          0               0                   $0                 0%
                  2002                          1             35,100          $450,333               100%
                  2003                          0               0                   $0                 0%
                  2004                          0               0                   $0                 0%
                  2005                          0               0                   $0                 0%
                  2006                          0               0                   $0                 0%
                  2007                          0               0                   $0                 0%

Industrial Building, Itasca, IL
-------------------------------
                  1998                          0               0                   $0                 0%
                  1999                          1             70,535          $374,160               100%
                  2000                          0               0                   $0                 0%
                  2001                          0               0                   $0                 0%
                  2002                          0               0                   $0                 0%
                  2003                          0               0                   $0                 0%
                  2004                          0               0                   $0                 0%
                  2005                          0               0                   $0                 0%
                  2006                          0               0                   $0                 0%
                  2007                          0               0                   $0                 0%
-----------------------------------------------------------------------------------------------------------------
</TABLE>

*  Does not include expenses paid by tenants.
<PAGE>

         The following table sets forth for each of the Partnership's properties
the: (i) federal tax basis, (ii) rate of depreciation, (iii) method of
depreciation, (iv) life claimed for purposes of depreciation, and (v)
accumulated depreciation.

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------

                                                               Rate of                     Life       Accumulated
           Entity / Property                 Tax Basis       Depreciation     Method     in years    Depreciation
---------------------------------------------------------------------------------------------------------------------
<S>                                          <C>             <C>             <C>         <C>         <C>
Apartment Complex in Frederick, MD
----------------------------------
Building & Improvements                      $ 2,680,594         N/A         150% DB        15            $1,436,726
Building & Improvements                       10,239,068       3.64%            SL         27.5            2,668,709
                                              ----------                                                   ---------
Total Depreciable Assets                     $12,919,662                                                  $4,105,435

Industrial Building in Petaluma, CA
-----------------------------------
Building & Improvements                       $2,141,214       3.18%            SL         31.5             $444,477
Building Improvements                            295,617       6.67%            SL          15               128,122
                                                --------                                                    --------
Total Depreciable Assets                      $2,436,831                                                    $572,599

Industrial Building in Carson, CA
---------------------------------
Building                                      $3,727,028       2.50%            SL          40              $752,815
                                              ----------                                                    --------
Total Depreciable Assets                      $3,727,028                                                    $752,815

Industrial Building in Itasca, IL
---------------------------------
Building                                      $2,121,478       2.50%            SL          40              $333,084
                                             -----------                                                    --------
Total Depreciable Assets                      $2,121,478                                                    $333,084

Total Depreciable Assets                     $21,204,999                                                  $5,763,933
                                             ===========                                                  ==========
---------------------------------------------------------------------------------------------------------------------
</TABLE>

SL = Straight Line
DB = Declining Balance
<PAGE>

         Following is information regarding the competitive market conditions
for each of the Partnership's properties. This information has been gathered
from sources deemed reliable. However, the Partnership has not independently
verified the information and, as such, cannot guarantee its accuracy or
completeness:

Industrial Building in Carson, California
-----------------------------------------

The property is located within the greater Los Angeles industrial market. During
1997, the supply and demand balance in the Los Angeles industrial market
remained in equilibrium, while the years of supply grew from 2.2 years in 1996
to 2.7 years in 1997. Net absorption in the Los Angeles County metropolitan area
during 1997 was 1.8%, a decrease from the 3.1% recorded in 1996. The 1997
industrial vacancy rate at year-end 1997 was 6.7%, an improvement from the 8.2%
rate recorded at the close of 1996. Also indicative of the metro area's
improving economy is a falling jobless rate, which recently fell to 6.3%.

Industrial Building, Itasca, Illinois.
-------------------------------------

This industrial building is located in the metropolitan Chicago industrial
market, where employment is approximately 1.7% higher than in 1996. The jobless
rate at year-end 1997 stood at approximately 4.6%, and labor force growth
continues to accelerate. Over the past year, years of supply in the metropolitan
Chicago industrial market fell from 6.4 years to 4.3 years. The year-end 1997
industrial vacancy rate is expected to be 10.6%, up from 10.1% recorded at the
close of 1996. Available space in the property's submarket, DuPage County,
climbed over 400,000 square feet in 1996 to approximately 5.9 million square
feet.

Apartment Complex in Frederick, Maryland.
----------------------------------------

This apartment complex is located in the southwestern section of the city of
Frederick, Maryland, which is approximately 50 miles from both Washington, D.C.
and Baltimore, Maryland. Demand for office space is shifting from northern
Virginia toward suburban Maryland, which is prompting office construction in the
area. This could have a positive effect on the Frederick apartment market.
Average rental rates in the Frederick market increased by approximately 5% - 7%
between 1996 and 1997, as businesses continue to move up the I-270 corridor,
positively impacting the Frederick market.

Industrial Building, Petaluma, California
-----------------------------------------

The property is located in the Sonoma County industrial market, approximately 40
miles north of San Francisco. Demand for R&D/flex properties continues to be
strong in the Sonoma County area. As of September 1997, the Sonoma County
industrial market was 4.6% vacant, while Petaluma, the leading submarket, was
2.4% vacant. This rate was a decrease from the 4.0% recorded at year-end 1996.
Most of the area's growth has been fueled by growth in telecommunications,
software, computer hardware and related service firms.

     However, over the last year, vacancy rates in the market fell from 9.15% at
the end of 1996 to approximately 8.4% at year-end 1997. Furthermore, sales
activity in Northeast DuPage County during the first half of 1997 was 33%
greater than sales activity during the second half of 1996.

<PAGE>

Item 3. Legal Proceedings.
        -----------------

           A partner in a joint venture in which the Partnership holds an
interest has filed a declaratory judgment action with respect to certain
provisions of the joint ventrure agreement. See Item 1.A.

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

           No matters were submitted to a vote of security holders during the
fourth quarter of the fiscal year covered by this Annual Report on Form 10-K.


                                     PART II
                                     -------

Item 5. Market for Registrant's Common Equity and Related Stockholder Matters.
        ---------------------------------------------------------------------

        There is no active market for the Units. Trading in the Units is
sporadic and occurs solely through private transactions.

        As of December 31, 1997, there were 6,482 holders of Units.

        The Partnership's Amended and Restated Agreement of Limited
Partnership dated July 28, 1988, as amended to date (the "Partnership
Agreement"), requires that any Distributable Cash (as defined therein) be
distributed quarterly to the partners in specified proportions and priorities.
There are no restrictions on the Partnership's present or future ability to make
distributions of Distributable Cash. For the year ended December 31, 1997, cash
distributions paid in 1997 or distributed after year end with respect to 1997 to
the Limited Partners as a group totaled $8,111,492, including $4,334,326 of
returned capital from the proceeds of a property sale and $968,442 of returned
capital from original working capital reserves. For the year ended December 31,
1996, cash distributions paid in 1996 or distributed after year end with respect
to 1996 to the Limited Partners as a group totaled $2,062,756.

           Cash distributions exceeded net income in 1997 and 1996 and
therefore resulted in a reduction of partners' capital. Cash distributions in
1997 exceeded cash provided by operating activities. Cash distributions in 1996
approximated cash provided by operating activities. Reference is made to the
Partnership's Statement of Partners' Capital (Deficit) and Statement of Cash
Flows in Item 8 hereof.
<PAGE>

Item 6.  Selected Financial Data.
         -----------------------

<TABLE>
<CAPTION>
                           For Year             For Year            For Year            For Year             For Year
                           Ended or             Ended or            Ended or            Ended or             Ended or
                             as of                as of               as of               as of                as of
                          12/31/97(1)           12/31/96           12/31/95(2)         12/31/94(3)           12/31/93
                     -----------------------------------------------------------------------------------------------------
<S>                       <C>                  <C>                <C>                  <C>                  <C>
Revenues                   $2,688,336          $2,250,424          $2,662,452           $5,885,003          $2,674,282

Net Income (Loss)          $1,588,309          $1,186,133          $(206,204)           $4,677,407          $1,778,797

Net Income (Loss)
per Limited
Partnership Unit           $    32.23          $    24.07          $   (4.18)           $    94.91          $    36.10


Total Assets              $22,706,302         $29,099,680         $30,094,908          $32,766,653         $39,603,994

Total Cash
Distributions
per Limited
Partnership
Unit, including
amounts
distributed
after year end
with respect to
such year                 $    166.26         $     42.28         $     50.00          $    237.73         $     54.74
</TABLE>

(1)  Revenues and net income in 1997 include a gain of $248,172 on the sale of
     the Stemmons Industrial property.

(2)  Net loss in 1995 includes a provision of $1,500,000 to recognize the
     impairment of a real estate investment.

(3)  Revenues and net income in 1994 include a gain of $2,869,376 on the sale of
     the Lakewood property.
<PAGE>

Item 7
------

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

Liquidity and Capital Resources
-------------------------------

         The Partnership completed its offering of units of limited partnership
interest in December 1988 and a total of 48,788 units were sold. The Partnership
received proceeds of $43,472,858, net of selling commissions and other offering
costs, which have been used for investment in real estate, for the payment of
related acquisition costs or retained as working capital reserves. The
Partnership currently holds the four investments described in Item 1 hereof. In
addition, one investment was sold in each of 1990, 1994 and 1997. Through
December 31, 1997, capital of $16,573,771 ($339.71 per limited partnership unit)
has been returned to the limited partners; $15,605,329 as a result of sales and
$968,442 in 1997, as a result of a discretionary reduction of original working
capital previously held in reserves.

         On September 29, 1997, Stemmons Industrial located in Farmers Branch,
Texas was sold to an institutional buyer unaffiliated with the Partnership for
$4,500,000. The Partnership received net proceeds of $4,334,193, after closing
costs, and recognized a gain of $248,172 ($5.04 per limited partnership unit). A
disposition fee of $135,000 was accrued but not paid to AEW. On October 29,
1997, the Partnership made a capital distribution of $4,334,326 ($88.84 per
limited partnership unit) from the proceeds of the sale. Simultaneously, an
additional capital distribution of $968,442 ($19.85 per limited partnership
unit) was made from original working capital previously held in reserves.

         At December 31, 1997, the Partnership had $3,538,379 in cash, cash
equivalents and short-term investments, of which $536,175 was used for cash
distributions to partners on January 29, 1998; the remainder is being retained
as working capital reserves. The source of future liquidity and cash
distributions to partners will be primarily cash generated by the Partnership's
short-term and real estate investments. Distributions of cash from operations
relating to the first three quarters of 1997 were made at the annualized rate of
5.5% on the adjusted capital contribution. The fourth quarter distribution of
cash from operations was made at the annualized rate of 6.25% on the weighted
average capital contribution. Also during the fourth quarter of 1997, a
distribution of $14.98 per limited partnership unit was made from operational
cash previously held in reserves. During 1996, quarterly distributions of cash
from operations were made at the annualized rate of 5.5% on the adjusted capital
contribution.

         The carrying value of real estate investments in the financial
statements at December 31, 1997 is at depreciated cost, or if the investment's
carrying value is determined not to be recoverable through expected undiscounted
future cash flows, the carrying value is reduced to estimated fair market value.
The fair market value of such investments is further reduced by the estimated
cost of sale for properties held for sale. Carrying value may be greater or less
than current appraised value. At December 31, 1997, the appraised value of each
of the Partnership's real estate investments exceeded their related carrying
value by an aggregate of approximately $8,558,000. The current appraised value
of real estate investments has been estimated by the Managing General Partner
and is generally based on a combination of traditional appraisal approaches
performed by the Partnership's advisor and independent appraisers. Because of
the
<PAGE>

subjectivity inherent in the valuation process, the estimated current appraised
value may differ significantly from that which could be realized if the real
estate were actually offered for sale in the marketplace.

         The Year 2000 Issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of the
Partnership's computer programs that have date-sensitive software may recognize
a date using "00" as the year 1900 rather than the year 2000. This could result
in a system failure or miscalculations causing disruptions of operations,
including among other things, a temporary inability to process transactions or
engage in normal business operations. The Managing General Partner and its
affiliates are assessing the modifications or replacements of its software that
may be necessary for its computer systems to function properly with respect to
the dates in the year 2000 and thereafter. The general partner and its
affiliates do not believe that the cost of either modifying existing software or
converting to new software will be significant or that the Year 2000 Issue will
pose significant operational problems.

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

         Form of Real Estate Investments

         The Wilmington Industrial investment is a wholly-owned property.
Effective July 1, 1994, the Stemmons Industrial joint venture investment was
converted to a wholly-owned property and subsequently sold in September 1997.
The remaining investments in the portfolio are joint ventures.

         Operating Factors

         The Partnership's three industrial properties (Prentiss Copystar,
Wilmington and White Phonic) were 100% leased at December 31, 1997 and December
31, 1996.

         As discussed above, the Partnership sold its Stemmons Industrial
investment on September 29, 1997, and recognized a gain of $248,172. Stemmons
Industrial was vacant at the time of sale, as it had been since February 1996,
with the expiration of a short term lease for 82% of the space.

         During the second quarter of 1995, the Managing General Partner
determined the Partnership would likely not recover the carrying value of its
investment in the Wilmington Industrial property over the projected holding
period. Accordingly, the carrying value was reduced to estimated net fair market
value, with a charge to operations of $1,500,000.

         Occupancy at Waterford Apartments, the Partnership's multi-family
residential property, was at 93% occupancy at December 31, 1997, down from 97%
at December 31, 1996.
<PAGE>

         Investment Activity

         Interest income on cash equivalents and short-term investments
increased by approximately $7,000 compared to 1996 due primarily to higher
average investment balances as a result of the temporary investment of the
receipt of the Stemmons Industrial sales proceeds. Interest income on short-term
investments and cash equivalents decreased between 1996 and 1995, due primarily
to lower average investment balances and lower average yields.


         1997 Compared to 1996

         Exclusive of net losses from operations from Stemmons Industrial of
($172,798) in 1997 and ($242,558) in 1996, total real estate operations for 1997
was $1,698,187, an increase from $1,567,860 for the comparable period of 1996.
Operating results at Waterford Apartments increased by $142,000 primarily due to
higher rental rates combined with a decrease in depreciation expense related to
personal property that became fully depreciated. These improvements in operating
results were partially offset by an increase in property operating expenses
primarily due to increases in salary expense and real estate taxes. Operating
results at Prentiss also improved, by approximately $29,000, due to a reduction
in real estate taxes combined with a decrease in amortization expense related to
leasing commissions that became fully amortized. Conversely, operating income at
Wilmington decreased approximately $55,000, primarily due to higher legal
expenses and an allowance for bad debt associated with long outstanding tenant
receivables. Depreciation expense also increased due to the addition of tenant
improvements in the second half of 1996.

         Cash flow from operations did not change significantly between the two
periods ended December 31, 1997 and December 31, 1996.

         1996 Compared to 1995

         Total real estate operations for 1996 was $1,325,302, a decrease from
$1,432,144 for 1995, exclusive of the investment valuation allowance in 1995.
Operating income at Stemmons Industrial decreased $491,000 due to lower rental
revenue and higher expenses as a result of the property being vacant for the
majority of 1996. This decrease was partially offset by an increase in operating
income of $364,000 from Wilmington Industrial due to the increase in occupancy,
combined with lower depreciation and amortization expense since certain assets
had been fully depreciated.

         Cash flow from operations decreased by $523,000 from 1995 to 1996. This
decrease was largely consistent with the investment results discussed above,
combined with changes in property working capital.

Portfolio Expenses

         The Partnership management fee is 9% of distributable cash flow from
operations after any increase or decrease in working capital reserves as
determined by the Managing General
<PAGE>

Partner. General and administrative expenses consist primarily of real estate
appraisal, printing, legal, accounting and investor servicing fees.

         1997 Compared to 1996

         The Partnership management fee increased approximately $75,000 between
1997 and 1996 due to management fees incurred due to a special distribution of
previously undistributed operating reserves, and to the increase in the fourth
quarter 1997 distribution rate. General and administrative expenses decreased
approximately $22,000 primarily due to a decrease in professional fees for 1997
which was the result of a reduction in accounting, legal and appraisal fees.

         1996 Compared to 1995

         The Partnership management fee decreased approximately $38,000 between
1996 and 1995 due to a decrease in distributable cash flow. General and
administrative expenses did not change significantly between the two years.


Inflation
---------

         By their nature, real estate investments tend not to be adversely
affected by inflation. Inflation may result in appreciation in the value of the
Partnership's real estate investments over time if rental rates and replacement
costs increase. Declines in property values during the period of Partnership
operations, due to market and economic conditions, have overshadowed the
positive affect inflation may have on the value of the Partnership's
investments.
<PAGE>

Item 8.  Financial Statements and Supplementary Data.
         -------------------------------------------

         See the Financial Statements of the Partnership included as a part of
this Annual Report on Form 10-K.

Item 9.  Changes in and Disagreements with Accountants on Accounting and
         ---------------------------------------------------------------
         Financial Disclosure.
         --------------------

         The Partnership has had no disagreements with its accountants on any
matters of accounting principles or practices or financial statement disclosure.

                                   PART III
                                   --------

Item 10. Directors and Executive Officers of the Registrant.
         --------------------------------------------------

         (a) and (b) Identification of Directors and Executive Officers.
                     --------------------------------------------------

         The following table sets forth the names of the directors and
executive officers of the Managing General Partner and the age and position held
by each of them as of December 31, 1997.

<TABLE>
<CAPTION>
Name                           Position(s) with the Managing General Partner                            Age
----                           ---------------------------------------------                            ---
<S>                            <C>                                                                      <C>
Wesley M. Gardiner, Jr.        President, Chief Executive Officer and Director                          39
Pamela J. Herbst               Vice President and Director                                              42
J. Grant Monahon               Vice President                                                           52
James J. Finnegan              Vice President                                                           37
Karin J. Lagerlund             Treasurer and Principal Financial and Accounting Officer                 33
</TABLE>

           (c)    Identification of Certain Significant Employees.
                  -----------------------------------------------

                  None.

           (d)    Family Relationships.
                  --------------------

                  None.

           (e)    Business Experience.
                  -------------------

                  The Managing General Partner was incorporated in Massachusetts
on October 13, 1997. The background and experience of the executive officers and
directors of the Managing General Partner are as follows:

Wesley M. Gardiner, Jr. joined AEW Real Estate Advisors, Inc. ("AEW") , formerly
known as Copley Real Estate Advisors, Inc., in 1990 and has been a Vice
President at AEW since January, 1994. AEW is a subsidiary of AEW Capital
Management, L.P. ("AEW Capital Management"). From 1982 to 1990, he was employed
by Metric Realty, a nationally-known real estate investment advisor and
syndication firm, as a portfolio manager responsible for several public and
private limited partnerships. His career at AEW has included asset management
responsibility for the
<PAGE>

company's Georgia and Texas holdings. Presently, Mr. Gardiner has overall
responsibility for all the partnerships advised by AEW whose securities are
registered under the Securities and Exchange Act of 1934. He received a B.A. in
Economics from the University of California at San Diego.

Pamela J. Herbst directs AEW Capital Management's Portfolio Advisory Services,
with oversight responsibility for the asset and portfolio management areas. Ms.
Herbst is a member of AEW Capital Management's Investment Policy Group and
Management Committee. She came to AEW Capital Management in December 1996 as a
result of the firm's merger with Copley Real Estate Advisors, Inc., where she
held various senior level positions in asset and portfolio management,
acquisitions and corporate operations since 1982. Ms. Herbst is a graduate of
the University of Massachusetts (B.A.) and Boston University (M.B.A.).

J. Grant Monahon is AEW Capital Management's General Counsel and a member of the
firm's Management Committee and Investment Policy Group. He has over 25 years of
experience in real estate law and investments. Prior to joining AEW Capital
Management in 1987, Mr. Monahon was a partner with a major Boston law firm. As
the head of that firm's real estate finance department, he represented a wide
variety of institutional clients, both domestic and international, in complex
equity and debt transactions. He is the former Chairman of the General Counsel
section of the National Association of Real Estate Investment Managers. Mr.
Monahon is a graduate of Dartmouth College (B.A.) and Georgetown University Law
Center (J.D.).

James J. Finnegan is the Assistant General Counsel of AEW Capital Management.
Mr. Finnegan served as Vice President and Assistant General Counsel of Aldrich,
Eastman & Waltch, L.P., a predecessor to AEW Capital Management. Mr. Finnegan
has over ten years of experience in real estate law, including seven years of
experience in private practice with major New York City and Boston law firms.
Mr. Finnegan also serves as AEW's securities and regulatory compliance officer.
Mr. Finnegan is a graduate of the University of Vermont (B.A.) and Fordham
University School of law (J.D.).

Karin J. Lagerlund directs the Advisory Services Portfolio Accounting Group at
AEW Capital Management, overseeing portfolio accounting, performance measurement
and client financial reporting for AEW's private equity investment portfolios.
Ms. Lagerlund is a Certified Public Accountant and has over ten years experience
in real estate consulting and accounting. Prior to joining AEW Capital
Management in 1994, she was an Audit Manager at EY/Kenneth Leventhal LLP. Ms.
Lagerlund is a graduate of Washington State University (B.A.).

(f)  Involvement in Certain Legal Proceedings.
     ----------------------------------------

                  None.

Item 11.  Executive Compensation.
          ----------------------

         Under the Partnership Agreement, the General Partners and their
affiliates are entitled to receive various fees, commissions, cash
distributions, allocations of taxable income or loss and expense reimbursements
from the Partnership. See Notes 1, 2 and 6 of Notes to Financial Statements.
<PAGE>

    The following table sets forth the amounts of the fees and cash
distributions and reimbursements for out-of-pocket expenses which the
Partnership paid to or accrued for the account of the General Partners and their
affiliates for the year ended December 31, 1997:

<TABLE>
<CAPTION>
                                                                     Amount of
                                                                    Compensation
                                                                         and
Receiving Entity                     Type of Compensation          Reimbursement
----------------                     --------------------          -------------
<S>                                  <C>                           <C>
General Partners                     Share of Distributable Cash    $  28,371

AEW Real Estate Advisors, Inc.       Management Fees and              297,618
                                     Expense Reimbursements

New England Securities Corporation   Servicing Fees and                 9,669
                                     Expense Reimbursement

Back Bay Advisors, L.P.              Short-term Investment              5,200
                                     Advisory Services
                                                                    ---------
                                     TOTAL:                         $ 340,858
                                                                    =========
</TABLE>

     For the year ended December 31, 1997, the Partnership allocated $17,977 of
taxable income to the General Partners.

Item 12. Security Ownership of Certain Beneficial Owners and Management.
         ---------------------------------------------------------------

 (a) Security Ownership of Certain Beneficial Owners
     -----------------------------------------------

    No person or group is known by the Partnership to be the beneficial owner of
more than 5% of the outstanding Units at December 31, 1997. Under the
Partnership Agreement, the voting rights of the Limited Partners are limited
and, in some circumstances, are subject to the prior receipt of certain opinions
of counsel or judicial decisions.

    Except as expressly provided in the Partnership Agreement, the right to
manage the business of the Partnership is vested exclusively in the Managing
General Partner.

(b) Security Ownership of Management.
    ---------------------------------

    The General Partners of the Partnership owned no Units at December 31, 1997.

(c) Changes in Control.
    -------------------

    There exists no arrangement known to the Partnership the operation of which
may at a subsequent date result in a change in control of the Partnership.
<PAGE>

Item 13.  Certain Relationships and Related Transactions.
---------------------------------------------------------

The Partnership has no relationships or transactions to report other than as
reported in Item 11, above.


                                     PART IV

Item 14.  Exhibits, Financial Statements, and Reports on Form 8-K.
          -------------------------------------------------------

      (a) The following documents are filed as part of this report:

              (1) Financial Statements--The Financial Statements listed on the
accompanying Index to Financial Statements and Schedule, and Financial
Statements Index No. 2 are filed as part of this Annual Report.

              (2) Financial Statement Schedules--The Financial Statement
Schedule listed on the accompanying Index to Financial Statements and Schedule
is filed as part of this Annual Report.

              (3) Exhibits--The Exhibits listed in the accompanying Exhibit
Index are filed as a part of this Annual Report and incorporated in this Annual
Report as set forth in said Index.

      (b) Reports on Form 8-K. During the last quarter of the year ending
          December 31, 1997, the Partnership filed one Current Report on Form 8-
          K dated October 8, 1997, reporting on Items No. 2 (Acquisition or
          Disposition of Assets) and No. 7 (Financial Statements and Exhibits),
          relating in both cases to the Stemmons Industrial property sale.

      (c) Reports on Form 8-K/A. The partnership filed one Current Report on
          Form 8-K/A dated November 26, 1997 reporting on Items No. 2
          (Acquisition or Disposition of Assets) and No. 7 (Financial Statements
          and Exhibits), relating in both cases to the Stemmons Industrial
          property sale.
<PAGE>

                         COPLEY PENSION PROPERTIES VI;

                       A REAL ESTATE LIMITED PARTNERSHIP




                             Financial Statements


                            * * * * * * * * * * * *



                               December 31, 1997
<PAGE>

                         COPLEY PENSION PROPERTIES VI;
                         ----------------------------
                       A REAL ESTATE LIMITED PARTNERSHIP
                       ---------------------------------

                  INDEX TO FINANCIAL STATEMENTS AND SCHEDULE
                  ------------------------------------------





Report of Independent Accountants

Financial Statements:

         Balance Sheets - December 31, 1997 and 1996

         Statements of Operations - Years ended December 31, 1997, 1996 and 1995

         Statements of Partners' Capital (Deficit) - Years ended December 31,
         1997, 1996 and 1995

         Statements of Cash Flows - Years ended December 31, 1997, 1996 and 1995

         Notes to Financial Statements

Financial Statement Schedule:

         Schedule III - Real Estate and Accumulated Depreciation at December 31,
         1997, 1996 and 1995
<PAGE>

                       Report of Independent Accountants
                       ---------------------------------

To the Partners

Copley Pension Properties VI;
A Real Estate Limited Partnership

In our opinion, based upon our audits and the reports of other auditors for the
years ended December 31, 1977, 1996 and 1995, the financial statements listed in
the accompanying index present fairly, in all material respects, the financial
position of Copley Pension Properties VI; A Real Estate Limited Partnership (the
"Partnership") at December 31, 1997 and 1996, and the results of its operations
and its cash flows for each of the three years in the period ended December 31,
1997, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of Sixth Copley Corp., the Managing
General Partner of the Partnership; our responsibility is to express an opinion
on these financial statements based on our audits. We did not audit the
financial statements of the Partnership's Waterford Apartments and White Phonic
joint venture investees (collectively, the "Ventures") for the years ended
December 31, 1996 and 1995, which results of operations are recorded using
the equity method of accounting in the Partnership's financial statements.
Equity in joint venture income for the Ventures aggregated $1,002,020 and
$1,021,252 for the years ended December 31, 1996 and 1995, respectively. We also
did not audit the financial statements of the Partnership's Prentiss/Copley
Itasca Associates joint venture investee for the year ended December 31, 1995,
which results of operations are recorded using the equity method of accounting
in the Partnership's financial statements. Equity in joint venture income for
Prentiss/Copley Itasca Associates aggregated $143,434 for the year ended
December 31, 1995. We also did not audit the financial statements of 21136
Wilmington Avenue, a wholly-owned property, for the years ended December 31,
1996 and 1995, which statements reflect total revenues of $746,004 and $625,282,
for the years ended December 31, 1996 and 1995, respectively. Those statements
were audited by other auditors whose reports thereon have been furnished to us,
and our opinion expressed herein, insofar as it relates to the amounts included
for the equity in joint venture income for the Ventures for the years ended
December 31, 1995 and 1994, for equity in joint venture income for
Prentiss/Copley Itasca Associates for the year ended December 31, 1995, and for
the amounts for 21136 Wilmington Avenue for the years ended December 31, 1996
and 1995, is based solely on the reports of the other auditors. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by the Managing
General Partner, and evaluating the overall financial statement presentation. We
believe that our audits and the reports of other auditors for the years ended
December 31, 1997, 1996 and 1995 provide a reasonable basis for the opinion
expressed above.


/s/  Price Waterhouse LLP
-------------------------
Boston, Massachusetts
March 22, 1998
<PAGE>

COPLEY PENSION PROPERTIES VI;
A REAL ESTATE LIMITED PARTNERSHIP

BALANCE SHEETS

                                                          December 31,
                                                   ----------------------------
                                                       1997            1996
                                                   -------------  -------------
Assets

Real estate investments:
   Joint ventures                                  $  14,966,370  $  15,479,056
   Property, net                                       4,201,553      8,350,231
                                                   -------------  -------------
                                                      19,167,923     23,829,287

Cash and cash equivalents                              2,105,728      3,076,103
Short-term investments                                 1,432,651      2,194,290
                                                   -------------  -------------
                                                   $  22,706,302  $  29,099,680
                                                   =============  =============

Liabilities and Partners' Capital

Accounts payable                                   $      92,737  $      86,347
Accrued management fee                                    53,028         51,517
Deferred disposition fees                                717,677        582,677
                                                   -------------  -------------
Total liabilities                                        863,442        720,541
                                                   -------------  -------------

Partners' capital (deficit):
   Limited partners ($660.29 and $768.98 per
   Unit, respectively; 160,000 units authorized;
   48,788 units issued and outstanding)               21,891,360     28,415,303
   General partners                                      (48,500)       (36,164)
                                                   -------------  -------------
Total partners' capital                               21,842,860     28,379,139
                                                   -------------  -------------
                                                   $  22,706,302  $  29,099,680

               (See accompanying notes to financial statements)
<PAGE>

COPLEY PENSION PROPERTIES VI;
A REAL ESTATE LIMITED PARTNERSHIP

STATEMENTS OF OPERATIONS

                                                Year ended December 31,
                                       ----------------------------------------
                                          1997           1996           1995
                                       -----------    -----------   -----------

Investment Activity

Property rentals                       $   813,691    $   818,078   $ 1,187,128
Property operating expenses               (374,736)      (369,959)     (399,757)
Depreciation and amortization             (264,913)      (286,940)     (533,107)
                                       -----------    -----------   -----------
                                           174,042        161,179       254,264

Joint venture earnings                   1,351,347      1,164,123     1,164,686
Investment valuation allowance                --             --      (1,500,000)
                                       -----------    -----------   -----------

   Total real estate operations          1,525,389      1,325,302       (81,050)

Gain on sales of property                  248,172           --          13,194
                                       -----------    -----------   -----------


   Total real estate activity            1,773,561      1,325,302       (67,856)

Interest on cash equivalents
   and short-term investments              275,126        268,223       297,444
                                       -----------    -----------   -----------

   Total investment activity             2,048,687      1,593,525       229,588
                                       -----------    -----------   -----------

Portfolio Expenses

Management fee                             280,592        206,070       243,696
General and administrative                 179,786        201,322       192,096
                                       -----------    -----------   -----------
                                           460,378        407,392       435,792
                                       -----------    -----------   -----------

Net Income (Loss)                      $ 1,588,309    $ 1,186,133   $  (206,204)
                                       ===========    ===========   ===========

Net income (loss) per limited
   partnership unit                    $     32.23    $     24.07   $     (4.18)
                                       ===========    ===========   ===========

Cash distributions per limited
   partnership unit                    $    165.95    $     44.21   $     50.00
                                       ===========    ===========   ===========

Number of limited partnership
   units outstanding during the year        48,788         48,788        48,788
                                       ===========    ===========   ===========


               (See accompanying notes to financial statements)
<PAGE>

COPLEY PENSION PROPERTIES VI;
A REAL ESTATE LIMITED PARTNERSHIP

STATEMENTS OF PARTNERS' CAPITAL (DEFICIT)

<TABLE>
<CAPTION>

                                                                      Year ended December 31,
                                   -----------------------------------------------------------------------------------------
                                                   1997                        1996                             1995
                                            -----------------            -----------------             ---------------------

                                         General          Limited      General         Limited       General         Limited
                                        Partners         Partners     Partners        Partners      Partners        Partners
                                        --------         --------     --------        --------      --------        --------
<S>                                <C>               <C>          <C>             <C>               <C>            <C>
Balance at beginning
     of year                       $    (36,164)     $28,415,303  $   (26,238)    $ 29,397,948     $     464       $32,041,490

Cash distributions                      (28,219)      (8,096,369)     (21,787)      (2,156,917)      (24,640)       (2,439,400)

Net income (loss)                        15,883        1,572,426       11,861        1,174,272        (2,062)         (204,142)
                                   ------------   --------------  -----------     ------------     ---------       -----------

Balance at end
     of year                       $    (48,500)  $   21,891,360  $   (36,164)    $ 28,415,303     $ (26,238)      $29,397,948
                                   ============   ==============  ===========     ============     =========       ===========
</TABLE>


               (See accompanying notes to financial statements)
<PAGE>

COPLEY PENSION PROPERTIES VI;
A REAL ESTATE LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                   Year ended December 31,
                                                               --------------------------------------------------------------------
                                                                            1997                      1996                     1995
                                                               ------------------         -----------------       -----------------
<S>                                                            <C>                        <C>                     <C>
Cash flows from operating activities:
   Net income (loss)                                           $       1,588,309          $      1,186,133                $(206,204)
   Adjustments to reconcile net income (loss)
      to net cash provided by operating activities:
      Depreciation and amortization                                      264,913                   286,940                  533,107
      Equity in joint venture income                                  (1,351,347)               (1,164,123)              (1,164,686)
      Cash distributions from joint ventures                           1,849,700                 1,871,702                1,841,184
      Gain on sales of property                                         (248,172)                        -                  (13,194)
      Investment valuation allowance                                           -                         -                1,500,000
      Increase in deferred leasing costs and
       other assets                                                         (556)                  (34,104)                 (11,731)
      (Increase) decrease in investment income
        receivable                                                        (1,152)                  (16,876)                   1,244
      (Increase) decrease in property working capital                    (52,369)                  (84,903)                  86,916
      Increase (decrease) in operating liabilities                         7,903                    (2,657)                  (1,501)
                                                               -----------------          ----------------        -----------------
        Net cash provided by operating activities                      2,057,229                 2,042,112                2,565,135
                                                               -----------------          ----------------        -----------------

Cash flows from investing activities:
   Investment in property                                                      -                  (132,458)                 (12,014)
   Net proceeds from sale of investment                                4,199,193                         -                   13,194
   Deferred disposition fee                                              135,000                         -                       -
   Decrease (increase) in short-term
      investments, net                                                   762,791                   347,219               (1,757,244)
                                                               -----------------          ----------------        -----------------
      Net cash provided by (used in)
        investing activities                                           5,096,984                   214,761               (1,756,064)
                                                               -----------------          ----------------        -----------------

Cash flows from financing activity:
   Distributions to partners                                          (8,124,588)               (2,178,704)              (2,464,040)
                                                               ------------------         ----------------        -----------------
      Net cash used in financing activity                             (8,124,588)               (2,178,704)              (2,464,040)
                                                               ------------------         ----------------        -----------------

Net increase (decrease) in cash and
   cash equivalents                                                     (970,375)                   78,169               (1,654,969)


Cash and cash equivalents:
   Beginning of year                                                   3,076,103                 2,997,934                4,652,903
                                                               -----------------          ----------------        -----------------
   End of year                                                 $       2,105,728          $      3,076,103               $2,997,934

</TABLE>


               (See accompanying notes to financial statements)
<PAGE>

COPLEY PENSION PROPERTIES VI;
A REAL ESTATE LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and Business
----------------------------------

         General
         -------

         Copley Pension Properties VI; A Real Estate Limited Partnership (the
"Partnership") is a Massachusetts limited partnership organized for the purpose
of investing primarily in newly constructed and existing income-producing real
properties. It primarily serves as an investment for qualified pension and
profit sharing plans and other organizations intended to be exempt from federal
income tax. The Partnership commenced operations in July 1988, and acquired the
four real estate investments it currently owns prior to the end of 1991. It
intends to dispose of its investments within eight to twelve years of their
acquisition, and then liquidate.

         The Managing General Partner of the Partnership is Sixth Copley Corp.,
a wholly-owned subsidiary of AEW Real Estate Advisors, Inc. ("AEW"), formerly
known as Copley Real Estate Advisors, Inc. ("Copley"). The associate general
partner is GCOP Associates Limited Partnership, a Massachusetts limited
partnership. Subject to the Managing General Partner's overall authority, the
business of the Partnership is managed by AEW pursuant to an advisory contract.

         On December 10, 1996, Copley's parent, New England Investment
Companies, Limited Partnership ("NEIC") a publicly traded master limited
partnership, acquired certain assets subject to then existing liabilities from
Aldrich, Eastman & Waltch, Inc. and its affiliates and principals (collectively,
"the AEW operations"). Simultaneously, a new entity, AEW Capital Management,
L.P., was formed into which NEIC contributed its interest in Copley and its
affiliates. As a result, the AEW operations were combined with Copley to form
the business operations of AEW Capital Management, L.P. At year end 1997, NEIC
completed a restructuring plan under which it contributed all of its operations
to a newly formed private partnership, NEIC Operating Partnership, L.P., in
exchange for a general partnership interest in the newly formed entity. As such,
at December 31, 1997, AEW Capital Management, L.P. is wholly owned by NEIC
Operating Partnership, L.P. AEW is a subsidiary of AEW Capital Management, L.P.

         Prior to August 30, 1996, New England Mutual Life Insurance Company
("The New England") was NEIC's principal unit holder and owner of all of the
outstanding stock of NEIC's general partner. On August 30, 1996, The New England
merged with and into Metropolitan Life Insurance Company ("Met Life"). Met Life
is the surviving entity and, therefore, through a wholly owned subsidiary,
became the owner of the units of partnership interest previously owned by The
New England and of the stock of NEIC's general partner.

         Management
         ----------

         AEW, as advisor, is entitled to receive stipulated fees from the
Partnership in consideration of services performed in connection with the
management of the Partnership and the acquisition and disposition of Partnership
investments in real property. Partnership management fees are 9% of
distributable cash from operations, as defined, before deducting such fees. The
deferred management fees of $112,441 incurred through 1990 were paid to the
advisor in September 1994 with a portion of the proceeds from the sale of
Lakewood Apartments. AEW is also reimbursed for expenses incurred in connection
with administering the Partnership ($17,026 in 1997, $21,352 in 1996, and
$23,012 in 1995). Acquisition fees were paid in an amount equal to 2% of the
gross proceeds from the offering, at the time commitments were initially funded.
Disposition fees are limited to the lesser of 3% of the selling price of the
property, or 50% of the standard real estate commission customarily charged by
an independent real estate broker. Payments of disposition fees are subject to
the prior receipt by the limited partners of their capital contributions plus a
stipulated return thereon. Deferred disposition fees were $717,677 and $582,677
at December 31, 1997 and 1996, respectively.
<PAGE>

         New England Securities Corporation ("NESC"), an indirect subsidiary of
Met Life, is engaged by the Partnership to act as its unit holder servicing
agent. Fees and out-of-pocket expenses for such services totaled $9,669, $9,211
and $8,493 in 1997, 1996 and 1995, respectively. Fees to Back Bay Advisors,
L.P., a wholly-owned subsidiary of NEIC, for short-term investment advisory
services totaled $5,200, $6,278 and $5,047, for the same annual periods.

Note 2 - Summary of Significant Accounting Policies
---------------------------------------------------

         Accounting Estimates
         --------------------

         The preparation of financial statements in conformity with generally
accepted accounting principles requires the Managing General Partner to make
estimates affecting the reported amounts of assets and liabilities, and of
revenues and expenses. In the Partnership's business, certain estimates require
an assessment of factors not within management's control, such as the ability of
tenants to perform under long-term leases and the ability of the properties to
sustain their occupancies in changing markets. Actual results, therefore, could
differ from those estimates.

         Real Estate Joint Ventures
         --------------------------

         Investments in joint ventures including loans, which are in substance
real estate investments, are stated at cost plus (minus) equity in undistributed
joint venture income (losses). Allocations of joint venture income (losses) were
made to the Partnership's venture partners as long as they had substantial
economic equity in the project. Currently, the Partnership records an amount
equal to 100% of the operating results of each joint venture, after the
elimination of all inter-entity transactions, except for the two ventures which
include an affiliate of the Partnership, which has substantial economic equity
in the respective projects.

         Property
         --------

         Property includes land and buildings, which are stated at cost less
accumulated depreciation, and other operating net assets (liabilities). The
Partnership's initial carrying value of a property previously owned by a joint
venture equals the Partnership's carrying value of the prior investment on the
conversion date.

         Capitalized Costs, Depreciation and Amortization
         ------------------------------------------------

         Maintenance and repair costs are expensed as incurred. Significant
improvements and renewals are capitalized. Depreciation is computed using the
straight-line method based on estimated useful lives of the buildings and
improvements. Leasing costs are also capitalized and amortized over the related
lease term.

         Acquisition fees have been capitalized as part of the cost of real
estate investments. Amounts not related to land are being amortized using the
straight-line method over the estimated useful lives of the underlying property.

         Certain tenant leases provide for rental increases over the respective
lease terms. Rental revenue is being recognized on a straight-line basis over
the lease terms.
<PAGE>

         Realizability of Real Estate Investments
         ----------------------------------------

         The Partnership considers a real estate investment to be impaired when
it determines the carrying value of the investment is not recoverable through
expected undiscounted cash flows generated from the operations and disposition
of the property. The impairment loss is based on the excess of the investment's
carrying value over its estimated fair market value. For investments held for
sale, the impairment loss also includes estimated costs of sale. Property held
for sale is not depreciated during the holding period.

         Carrying value may be greater or less than current appraised value. At
December 31, 1997, the appraised values of investments exceeded the related
carrying value by an aggregate of approximately $8,558,000. At December 31,
1996, the carrying value of one investment exceeded its appraised value by
$260,000. The remaining investments had appraised values which exceeded the
related carrying values by an aggregate of $5,700,000.

         The current appraised value of real estate investments has been
estimated by the Managing General Partner and is generally based on a
combination of traditional appraisal approaches performed by AEW and independent
appraisers. Because of the subjectivity inherent in the valuation process, the
estimated current appraised value may differ significantly from that which could
be realized if the real estate were actually offered for sale in the
marketplace.

         Cash Equivalents and Short-Term Investments
         -------------------------------------------

         Cash equivalents are stated at cost, plus accrued interest. The
Partnership considers all highly liquid debt instruments purchased with a
maturity of ninety days or less to be cash equivalents; otherwise, they are
classified as short-term investments.

         The Partnership has the positive intent and ability to hold all
investments to maturity; therefore, short-term investments are carried at cost,
plus accrued interest which approximates market value. At December 31, 1997 and
1996, all investments were in commercial paper with less than seven and five
months, respectively, remaining to maturity.

         Organization Costs
         ------------------

         Costs incurred in connection with organizing the Partnership were
capitalized and have been amortized using the straight-line method over five
years.

         Deferred Disposition Fees
         -------------------------

         Disposition fees due to AEW related to sales of investments are
included in the determination of gains or losses resulting from such
transactions. According to the terms of the advisory contract, payment of such
fees has been deferred until the limited partners first receive their capital
contributions, plus stipulated returns thereon.
<PAGE>

         Income Taxes
         ------------

         A partnership is not liable for income taxes and, therefore, no
provision for income taxes is made in the financial statements of the
Partnership. A proportionate share of the Partnership's income is reportable on
each partner's tax return.

         Per Unit Computations
         ---------------------

         Per unit computations are based on the number of units of limited
partnership interest outstanding during the year. The actual per unit amount
will vary by partner depending on the date of admission to, or withdrawal from,
the Partnership.

         Effective January 1, 1998, the Partnership adopted FAS 128 "Earnings
per Share," which simplifies the standards of reporting earnings per share (EPS)
previously found in APB No. 15. It provides guidance on the computation and
disclosure of basic and diluted EPS and requires restatement of prior periods
for comparative purposes. The adoption of FAS 128 did not have a material impact
on the Partnership's financial statements.

         Reclassifications
         -----------------

         Certain amounts in prior year financial statements have been
reclassified to conform with the current year presentation.

Note 3 - Real Estate Joint Ventures
-----------------------------------

         The Partnership had invested in seven real estate joint ventures,
organized as general partnerships with a real estate management/development firm
and, in three cases, with an affiliate of the Partnership. One joint venture
sold its property in 1990; another joint venture investment was restructured
into a wholly-owned property in 1991. During 1994, the Lakewood joint venture
sold its property and the Stemmons Industrial investment was converted to a
wholly-owned property and subsequently sold in 1997. The Partnership has
committed to make capital contributions to the ventures, which are generally
subject to preferential cash distributions at a specified rate and to priority
distributions with respect to sale or refinancing proceeds. The joint venture
agreements provide for the funding of cash flow deficits by the venture partners
in proportion to ownership interests, and for the dilution of their ownership
share in the event a venture partner does not contribute proportionately.

         The respective real estate management/development firm is responsible
for day-to-day development and operating activities, although overall authority
and responsibility for the business is shared by the venturers. The real estate
management/development firm, or its affiliates, also provides various services
to the respective joint venture for a fee.

         The following is a summary of cash invested in joint ventures, net of
returns of capital and excluding acquisition fees:

                        Preferential
     Investment/           Rate of     Ownership             December 31,
     Location              Return      Interest          1997            1996
     --------              ------      --------         ------          -----

Waterford Apartments
  Frederick, MD            10.09%      48.75%     $ 14,099,978     $ 14,099,978

White Phonic
  Petaluma, CA              10.0%         50%     $  3,281,963     $  3,281,963

Prentiss Copystar
  Itasca, IL                11.0%      51.75%     $  2,232,848     $  2,232,848
<PAGE>

         Waterford Apartments
         --------------------

         On March 20, 1989, the Partnership entered into a joint venture with an
affiliate of Bozzuto and Associates, and with an affiliate of the Partnership,
to develop and operate a garden-style apartment complex. The Partnership and its
affiliate collectively have a 65% ownership interest in the joint venture. The
Partnership committed to contribute up to $14,100,000 to the capital of the
joint venture. The preferential return related to $3,525,000 is payable
currently only to the extent of available cash flow. In the event of a sale or
refinancing prior to the tenth anniversary of the joint venture agreement, 25%
of the Partnership's contribution would first be repaid unconditionally. The
remaining 75% would be repaid subject to a premium designed to preserve the
stipulated rate of return through the ninth anniversary of the joint venture
agreement.

         White Phonic
         ------------

         On April 30, 1990, the Partnership entered into a joint venture with an
affiliate of William C. White and George Vila to develop and operate an
office/industrial building. The Partnership committed to make a maximum capital
contribution of $3,450,000. During the first ten years, up to 1% of the
preferential return may be deferred to the extent payments cannot be made from
operating and extraordinary cash flow. Future minimum rents due to the venture
under non-cancelable operating leases are: $450,333 in 1998; $459,108 in 1999;
$468,936 in 2000; $475,956 in 2001 and $488,241 in 2002.

         Prentiss Copystar
         -----------------

         On May 23, 1991, the Partnership entered into a joint venture with an
affiliate of Prentiss Properties, Ltd., and an affiliate of the Partnership, to
develop and operate an industrial facility. The Partnership and its affiliate
collectively have a 75% interest in the joint venture. The Partnership committed
to make a maximum capital contribution of $2,300,000. The preferential return
related to $690,000 is payable currently only to the extent of available cash
flow. If $1,610,000, or any portion thereof, is returned to the Partnership
between the second and tenth anniversary of the joint venture agreement, the
return will be increased by an amount sufficient to preserve the stipulated rate
of return through the tenth anniversary. Future minimum rents due to the venture
under a non-cancelable operating lease are: $366,000 in 1998; and $281,000 in
1999.

         Sale of Lakewood
         ----------------

         On August 12, 1988, the Partnership entered into a joint venture with
an affiliate of Evans Withycombe Company, and an affiliate of the Partnership,
to develop and operate an apartment complex. The Partnership and its affiliate
collectively had a 65% interest in the joint venture. The Partnership made
capital contributions totaling $6,731,182.

         On August 17, 1994, the joint venture sold its property. After closing
costs, the Partnership received its share of the sale proceeds of $9,131,207 and
recognized a gain of $2,869,376 ($58.23 per limited partnership unit). At that
time, the Partnership also received a preferential return payment of $237,880. A
disposition fee of $318,677 was accrued but not paid to AEW. On September 15,
1994, the Partnership made a capital distribution of $8,920,886 ($182.85 per
limited partnership unit) from the proceeds of this sale. An additional $13,194
was received in 1995 in final settlement of this sale.
<PAGE>

Summarized Financial Information
--------------------------------

         The following summarized financial information is presented in the
aggregate for the joint ventures:

                             Assets and Liabilities
                             ----------------------

<TABLE>
<CAPTION>
                                                                       December 31,
                                                    --------------------------------------------------
                                                             1997                      1996
                                                        ---------------           ---------------
<S>                                                <C>                        <C>
Assets
  Real property, at cost less
    accumulated depreciation
    of $6,910,873 and
    $6,158,575, respectively                       $        16,461,895        $        17,199,404
  Other                                                      1,029,387                    739,700
                                                   -------------------        -------------------
                                                            17,491,282                 17,939,104

Liabilities                                                    379,809                    235,655
                                                   -------------------        -------------------

Net assets                                         $        17,111,473        $        17,703,449
                                                   ===================        ===================
</TABLE>

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

<TABLE>
<CAPTION>
                                                                       Year ended December 31,
                                                   ----------------------------------------------------------
                                                         1997                 1996                1995
                                                   -----------------    -----------------   -----------------
<S>                                                <C>                  <C>                 <C>
Revenue:
  Rental income                                    $       3,883,758    $       3,720,730   $       3,622,286
  Interest and other income                                    6,410                7,842               7,098
                                                   -----------------    -----------------   -----------------
                                                           3,890,168            3,728,572           3,629,384
                                                   -----------------    -----------------   -----------------

Expenses:
  Operating expenses                                       1,395,823            1,367,708           1,217,644
  Depreciation and amortization                              766,748              878,016             907,276
                                                   -----------------    -----------------   -----------------
                                                           2,162,571            2,245,724           2,124,920
                                                   -----------------    -----------------   -----------------

Net income                                         $       1,727,597    $       1,482,848   $       1,504,464
                                                   =================    =================   =================
</TABLE>

         Liabilities and expenses exclude amounts owed and attributable to the
Partnership and (with respect to three investments) its affiliates on behalf of
their various financing arrangements with the joint ventures.
<PAGE>

Note 4 - Property
-----------------

         On July 18, 1988, the Partnership entered into a joint venture with an
affiliate of The Hewson Company to acquire and operate an industrial building
known as Wilmington Industrial in Carson, California. The Partnership made
capital contributions totaling $7,774,402. During 1991, when the venture partner
did not fund its proportionate share of the cash flow deficit, the Partnership's
ownership interest increased to 100%.

         On December 7, 1988, the Partnership entered into a joint venture with
an affiliate of The Trammell Crow Company to acquire, rehabilitate and operate
an industrial building known as Stemmons Industrial in Farmers Branch, Texas.
The Partnership made a capital contribution of $5,307,504. Effective July 1,
1994 this joint venture was dissolved and the venture partner's interest was
assigned to the Partnership. Accordingly, as of this date, the investment has
been accounted for as a wholly-owned property.

         On September 29, 1997, the Partnership sold the Stemmons Industrial
property for a gross sales price of $4,500,000. The Partnership received net
proceeds of $4,334,193, after closing costs, and recognized a gain of $248,172
($5.04 per limited partnership unit). A disposition fee of $135,000 was accrued
but not paid to AEW. On October 30, 1997, the Partnership made a capital
distribution of $4,334,326 ($88.84 per limited partnership unit) from the
proceeds of the sale.

         The following is a summary of the Partnership's investment in property
(one at December 31, 1997 and two at December 31, 1996):



                                                     December 31,
                                    ------------------------------------------
                                          1997                       1996
                                    ---------------            ---------------
Land                                $     2,770,056            $     3,408,203
Buildings, improvements and
  other capitalized costs                 4,894,641                  8,869,433
Impairment provision                     (1,500,000)                (1,500,000)
Accumulated depreciation and
  amortization                           (1,918,953)                (2,330,843)
Net operating liabilities                   (44,191)                   (96,562)
                                    ---------------            ---------------
                                    $     4,201,553            $     8,350,231
                                    ===============            ===============

         The Wilmington Industrial building is being depreciated over 30 years
and capitalized improvements are being depreciated over seven years. The
building and improvements at Stemmons Industrial were depreciated over 25 years,
beginning July 1, 1994.

         Tenant leases provide for minimum rents, subject to adjustment as
stated in each lease. Tenants are also obligated to reimburse their pro-rata
share of operating expenses. The minimum rents due under non-cancelable
operating leases at Wilmington Industrial are as follows: $469,000 in 1998;
$285,000 in 1999; $47,000 in 2000.
<PAGE>

Note 5 - Income Taxes
---------------------

         The Partnership's income for federal income tax purposes differs from
that reported in the accompanying statement of operations as follows:


                                              Year ended December 31,
                                  ----------------------------------------------
                                      1997             1996            1995
                                  -------------   --------------   -------------

Net income (loss) per financial
  statements                        $1,588,309      $1,186,133      $ (206,204)
Timing differences:
    Joint venture earnings              33,639         288,647         276,972
    Property rentals                    12,550         (15,318)        (24,245)
    Depreciation                        49,547         (28,769)        131,752
    Expenses                            14,332          10,749          14,332
    Gain on sale                        99,284              -               -
    Valuation allowance                      -              -        1,500,000
                                  -------------   --------------   -------------
Taxable income                      $1,797,661      $1,441,442      $1,692,607
                                  =============   ==============   =============

Note 6 - Partners' Capital
--------------------------

         Allocation of net income (losses) from operations and distributions of
distributable cash from operations, as defined, are in the ratio of 99% to the
limited partners and 1% to the general partners. Cash distributions are made
quarterly.

         Net sale proceeds and financing proceeds are allocated first to limited
partners to the extent of their contributed capital plus a stipulated return
thereon, as defined, second to pay disposition fees, and then 85% to the limited
partners and 15% to the general partners. The adjusted capital contribution per
limited partnership unit was reduced from $1,000 to $951.83 during 1990, from
$951.83 to $768.98 during 1994, and from $768.98 to $660.29 during 1997. Income
from a sale is allocated in proportion to the distribution of related proceeds,
provided that the general partners are allocated at least 1%. Losses from a
sale, and income from a sale if there are no residual proceeds after the
repayment of the related debt, will be allocated 99% to the limited partners and
1% to the general partners.

Note 7 - Litigation
-------------------------

         On February 11, 1998, Frederick Bozzuto Limited Partnership filed a
declaratory judgment action in the Circuit Court for Baltimore County. The
Partnership and Affiliate had declared that an impasse under the joint venture
agreement existed because of a disagreement between the Partnership and the
Affiliate, on the one hand, and Frederick Bozzuto Limited Partnership, on the
other hand, with respect to the contents of the business plan to be adopted by
the joint venture for 1998. The Partnership and the Affiliate had sought to
effect the dissolution of the joint venture pursuant to the terms of the joint
venture agreement. The declaratory judgment action asks the Court to hold that
no impasse (and, hence, no right to dissolve the joint venture) can exist with
respect to a disagreement over the contents of the annual business plan of the
joint venture.

Note 8 - Subsequent Event
-------------------------

         Distributions of cash from operations relating to the quarter ended
December 31, 1997 were made on January 29, 1998 in the aggregate amount of
$536,175 ($10.88 per limited partnership unit).
<PAGE>

                         COPLEY PENSION PROPERTIES VI,
                       A REAL ESTATE LIMITED PARTNERSHIP

                                  SCHEDULE III
                    REAL ESTATE AND ACCUMULATED DEPRECIATION
                              AT DECEMBER 31, 1997

<TABLE>
<CAPTION>
                                                                                          GROSS AMOUNT AT WHICH
                                                                                           CARRIED AT CLOSE OF
                    INITIAL COST TO THE PARTNERSHIP  COSTS SUBSEQUENT TO ACQUISITION              PERIOD
                    ------------------------------- -----------------------------------  ------------------------
                                BUILDINGS,
                               IMPROVEMENTS                                                          BUILDINGS,
                                AND OTHER    OTHER               CHANGE IN                          IMPROVEMENTS,  OTHER
                                 CAPITAL      NET   CAPITALIZED  OTHER NET   VALUATION                AND OTHER     NET
    DESCRIPTION        LAND       COSTS     ASSETS  IMPROVEMENTS  ASSETS     ALLOWANCE      LAND    CAPITAL COSTS  ASSETS
    -----------     ---------- ------------ ------- ------------ ---------  -----------  ---------- ------------- --------
 <S>                <C>        <C>          <C>     <C>          <C>        <C>          <C>        <C>           <C>
 CARSON, CA (See
 Note A)

 Industrial
 bldg............   $2,770,056  $4,380,463  $ 8,285   $514,169   $(52,478)  $(1,500,000) $2,770,056  $3,394,632   $(44,193)

 DALLAS, TX (See
 Note A)

 Industrial
 bldg............   $  638,147  $3,966,791  $46,661   $  8,581   $(46,672)          --   $  638,147  $3,975,372   $    (11)
                    ----------  ----------  -------   --------   --------   -----------  ----------  ----------   --------
 Total wholly-
 owned property..   $3,408,203  $8,347,254  $54,946   $522,750   $(99,150)  $(1,500,000) $3,408,203  $7,370,004   $(44,204)
                    ==========  ==========  =======   ========   ========   ===========  ==========  ==========   ========

 ITASCA, IL

 51.75% interest
 in Prentiss
 Copley/Itasca
 Assoc. J/V......   ................................................   See Note B   ................................................
 Develop and
 operate an
 industrial
 building

 FREDERICK, MD

 48.75% interest
 in Frederick
 Partners Joint
 Venture.........   ................................................   See Note B   ................................................
 Develop and
 operate an
 apartment
 complex

 PETALUMA, CA

 50% interest in
 White Phonic
 Associates Joint
 Venture.........   ................................................   See Note B   ................................................
 Develop and
 operate an
 industrial
 building
                    ----------  ----------  -------   --------   --------   -----------  ----------  ----------   --------
 TOTAL JOINT
 VENTURE
 INVESTMENTS:....
                    ==========  ==========  =======   ========   ========   ===========  ==========  ==========   ========
<CAPTION>
                    DISPOSAL OF              ACCUM. DEPR.   STATUS OF     DATE   DEPRECIABLE
    DESCRIPTION        ASSET        TOTAL      & AMORT.    CONSTRUCTION ACQUIRED    LIFE
    -----------     ------------ ----------- ------------- ------------ -------- -----------
 <S>                <C>          <C>         <C>           <C>          <C>      <C>
 CARSON, CA (See
 Note A)

 Industrial
 bldg............                $ 6,120,495 $ (1,918,942)   Completed   7/18/88    30 Years
                                                                  1990
 DALLAS, TX (See
 Note A)

 Industrial
 bldg............   $(4,613,508) $         0 $          0    Completed   12/7/88    40 Years
                    ------------ ----------- ------------         1989
 Total wholly-
 owned property..   $(4,613,508) $ 6,120,495 $ (1,918,942)
                    ============ =========== ============

 ITASCA, IL

 51.75% interest
 in Prentiss
 Copley/Itasca
 Assoc. J/V......                  1,711,204          N/A    Completed   05/20/91   35 Years
 Develop and                                                      1991
 operate an
 industrial
 building

 FREDERICK, MD

 48.75% interest
 in Frederick
 Partners Joint
 Venture.........                 10,163,029          N/A    Completed   03/20/89 27.5 Years
 Develop and                                               Ph I - 1990
 operate an                                                Ph I - 1991
 apartment
 complex

 PETALUMA, CA

 50% interest in
 White Phonic
 Associates Joint
 Venture.........                  3,092,137          N/A    Completed   04/30/90   40 Years
 Develop and                                                      1991
 operate an
 industrial
 building
                    ------------ -----------
 TOTAL JOINT
 VENTURE
 INVESTMENTS:....                $14,966,370
                    ============ ===========
</TABLE>
<PAGE>

COPLEY PENSION PROPERTIES VI;
A REAL ESTATE LIMITED PARTNERSHIP
REAL ESTATE AND ACCUMULATED DEPRECIATION - WHOLLY OWNED PROPERTY
SCHEDULE III NOTE A
AT DECEMBER 31, 1997

<TABLE>
<CAPTION>

                                   Balance    Conversion to    Additions to                                      Change in
                                   as of      Wholly-Owned        Lease       Additions to     Write Down    Property Working
Description                        1/1/95       Property       Commissions      Property       of Property        Capital
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>         <C>              <C>            <C>              <C>           <C>
Stemmons                          4,558,688              0        7,791                  0              0          (113,055)

Hewson/Wilmington                 7,434,096              0        3,940             12,014     (1,500,000)           26,139

                               -----------------------------------------------------------------------------------------------------
Total Wholly-Owned Property      11,992,784              0       11,731             12,014     (1,500,000)          (86,916)
                               =====================================================================================================

<CAPTION>

                                   Balance    Conversion to    Additions to                                      Change in
                                   as of      Wholly-Owned        Lease       Additions to     Write Down    Property Working
Description                        1/1/96       Property       Commissions      Property       of Property        Capital
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>         <C>              <C>            <C>              <C>           <C>

Stemmons                          4,453,424              0            0                  0              0            58,493

Hewson/Wilmington                 5,976,189              0       34,103            132,459              0            26,410

                               -----------------------------------------------------------------------------------------------------
Total Wholly-Owned Property      10,429,613              0       34,103            132,459              0            84,903
                               =====================================================================================================

<CAPTION>

                                   Balance    Conversion to    Additions to                                      Change in
                                   as of      Wholly-Owned        Lease       Additions to     Write Down    Property Working
Description                        1/1/97       Property       Commissions      Property       of Property        Capital
------------------------------------------------------------------------------------------------------------------------------------
<S>                               <C>         <C>              <C>            <C>              <C>           <C>
Stemmons                          4,511,917              0            0                  0              0           101,591

Hewson/Wilmington                 6,169,161              0          556                  0                          (49,222)

                               -----------------------------------------------------------------------------------------------------
Total Wholly-Owned Property      10,681,078              0          556                  0              0            52,369
                               =====================================================================================================
</TABLE>

<TABLE>
<CAPTION>


                                                 Balance      12/31/94          1995         12/31/95        1995
                                 Disposal         as of     Accumulated     Depreciation    Accumulated    Disposal    Balance per
Description                      of Asset       12/31/95    Depreciation      Expense      Depreciation    of Asset  G/L @ 12/31/95
------------------------------------------------------------------------------------------------------------------------------------
<S>                              <C>          <C>           <C>             <C>            <C>             <C>       <C>

Stemmons                              0      4,453,424        209,315       (186,427)        395,742           0      4,057,682

Hewson/Wilmington                     0      5,976,189      1,330,148       (332,348)      1,662,496           0      4,313,693

                             ------------------------------------------------------------------------------------------------------
Total Wholly-Owned Property           0     10,429,613      1,539,463       (518,775)      2,058,238           0      8,371,375
                             ======================================================================================================

<CAPTION>

                                                 Balance      12/31/95          1996         12/31/96        1996
                                 Disposal         as of     Accumulated     Depreciation    Accumulated    Disposal    Balance per
Description                      of Asset       12/31/96    Depreciation       Expense     Depreciation    of Asset  G/L @ 12/31/96
---------------------------  ------------------------------------------------------------------------------------------------------
<S>                              <C>         <C>            <C>             <C>            <C>            <C>        <C>
Stemmons                              0      4,511,917        395,742       (152,416)        548,158           0      3,963,759

Hewson/Wilmington                     0      6,169,161      1,662,496       (120,192)      1,782,688           0      4,386,473

                             ------------------------------------------------------------------------------------------------------
Total Wholly-Owned Property           0     10,681,078      2,058,238       (272,608)      2,330,846           0      8,350,232
                             ======================================================================================================

<CAPTION>

                                                Balance      12/31/96          1997         12/31/97        1997
                                 Disposal        as of      Accumulated     Depreciation    Accumulated    Disposal    Balance per
Description                      of Asset      12/31/97     Depreciation   Amort/Expense   Depreciation    of Asset  G/L @ 12/31/97
------------------------------------------------------------------------------------------------------------------------------------
<S>                          <C>             <C>            <C>            <C>             <C>             <C>       <C>
Stemmons                     (4,613,508)             0        548,158        (114,312)       662,470       (662,470)            0

Hewson/Wilmington                     0      6,120,495      1,782,688        (136,254)     1,918,942              0     4,201,553

                             -------------------------------------------------------------------------------------------------------
Total Wholly-Owned Property  (4,613,508)     6,120,495      2,330,846       (250,566)      2,581,412       (662,470)    4,201,553
                             =======================================================================================================
</TABLE>

<PAGE>

COPLEY PENSION PROPERTIES VI;
A REAL ESTATE LIMITED PARTNERSHIP
SCHEDULE III    NOTE B - JOINT VENTURES
AT DECEMBER 31, 1997

<TABLE>
<CAPTION>
                                                        BALANCE                                                         BALANCE
                                                         AS OF      EQUITY IN   1995 AMORTIZATION      CASH              AS OF
                                      PERCENT OF      DECEMBER 31,   INCOME/       OF DEFERRED     DISTRIBUTED        DECEMBER 31,
               DESCRIPTION             OWNERSHIP          1994        (LOSS)    ACQUISITION FEES     FROM J/V             1995
------------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>             <C>           <C>         <C>                <C>                <C>
Prentiss Copystar                       51.75%        1,950,970         143,434       -                 (245,613)       1,848,791

Waterford Apartments                    48.75%       11,615,204         749,851       (10,272)        (1,249,086)      11,105,697

White Phonic                               50%        3,325,623         271,401        (4,060)          (346,485)       3,246,479

                                                   ---------------------------------------------------------------------------------
Investments in Joint Ventures at
December 31, 1995:                                  $16,891,797      $1,164,686      ($14,332)       ($1,841,184)     $16,200,967
                                                   =================================================================================
<CAPTION>
                                                       BALANCE                                                            BALANCE
                                                        AS OF          EQUITY IN    1996 AMORTIZATION       CASH           AS OF
                                     PERCENT OF      DECEMBER 31,       INCOME/        OF DEFERRED       DISTRIBUTED    DECEMBER 31,
        DESCRIPTION                   OWNERSHIP         1995            (LOSS)       ACQUISITION FEES      FROM J/V        1996
------------------------------------------------------------------------------------------------------------------------------------
<S>                                  <C>             <C>               <C>           <C>                <C>             <C>
Prentiss Copystar                       51.75%        1,848,791         162,103        -                (245,613)       1,765,281

Waterford Apartments                    48.75%       11,105,697         712,467       (10,272)        (1,248,103)      10,559,789

White Phonic                               50%        3,246,479         289,553        (4,060)          (377,986)       3,153,986


                                                   ---------------------------------------------------------------------------------
Investments in Joint Ventures
at December 31, 1996:                               $16,200,967      $1,164,123      ($14,332)       ($1,871,702)     $15,479,056
                                                   =================================================================================
<CAPTION>
                                                          BALANCE                                                         BALANCE
                                                           AS OF       EQUITY IN   1997 AMORTIZATION        CASH           AS OF
                                      PERCENT OF        DECEMBER 31,    INCOME/      OF DEFERRED        DISTRIBUTED     DECEMBER 31,
               DESCRIPTION             OWNERSHIP           1996         (LOSS)     ACQUISITION FEES       FROM J/V         1997
------------------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>             <C>              <C>         <C>                  <C>             <C>
Prentiss Copystar                      51.75%         1,765,281         191,536        -                (245,613)       1,711,204

Waterford Apartments                   48.75%        10,559,789         865,614       (10,273)        (1,252,101)      10,163,029

White Phonic                              50%         3,153,986         294,197        (4,060)          (351,986)       3,092,137


                                                    --------------------------------------------------------------------------------
Investments in Joint Ventures
at December 31, 1997:                               $15,479,056      $1,351,347      ($14,333)       ($1,849,700)     $14,966,370
                                                   =================================================================================
</TABLE>
<PAGE>

                              FINANCIAL STATEMENTS
                                   INDEX NO. 2

                    Auditor's Report and Financial Statements

                              of Frederick Partners

                 (referred to elsewhere as Waterford Apartments)




Independent Auditor's Report of Reznick, Fedder & Silverman, P.C.

Balance Sheets - December 31, 1997 and 1996

Statements of Operations - For the Years Ended December 31, 1997, 1996 and 1995

Statements of Partners' Equity - For the Years Ended December 31, 1997, 1996 and
1995

Statements of Cash Flows - For the Years Ended December 31, 1997, 1996 and 1995

Notes to Financial Statements
<PAGE>

                            FINANCIAL STATEMENTS AND
                          INDEPENDENT AUDITORS' REPORT

                               FREDERICK PARTNERS

                           DECEMBER 31, 1997 AND 1996
<PAGE>

                               Frederick Partners


                                TABLE OF CONTENTS

                                                                            PAGE


INDEPENDENT AUDITORS' REPORT                                                 3


FINANCIAL STATEMENTS


         BALANCE SHEETS                                                      4


         STATEMENTS OF OPERATIONS                                            5


         STATEMENTS OF PARTNERS' EQUITY                                      6


         STATEMENTS OF CASH FLOWS                                            7


         NOTES TO FINANCIAL STATEMENTS                                       8
<PAGE>

            [LETTERHEAD OF REZNICK FEDDER & SILVERMAN APPEARS HERE]



                          INDEPENDENT AUDITORS' REPORT



To the Partners
Frederick Partners

         We have audited the accompanying balance sheets of Frederick Partners
as of December 31, 1997 and 1996 and the related statements of operations,
partners' equity and cash flows for each of the three years in the period ended
December 31, 1997. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

         We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

         In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Frederick Partners
as of December 31, 1997 and 1996 and the results of its operations, changes in
partners' equity and its cash flows for each of the three years in the period
ended December 31, 1997, in conformity with generally accepted accounting
principles.



                                        /s/ Reznick Fedder & Silverman




Baltimore, Maryland
January 21, 1998


                                     - 3 -
<PAGE>

                               Frederick Partners

                                 BALANCE SHEETS

                           December 31, 1997 and 1996





                                                       1997             1996
                                               ----------------   --------------
                              ASSETS

INVESTMENT IN REAL ESTATE
  Land                                              $ 3,099,120      $ 3,099,120
  Building and improvements                          12,919,662       12,906,062
  Personal property                                   1,601,830        1,601,830
                                                    -----------      -----------

                                                     17,620,612       17,607,012
  Less accumulated depreciation                       5,695,652        5,082,280
                                                    -----------      -----------

                                                     11,924,960       12,524,732

  Cash                                                  341,988          174,893
  Tenant receivables                                      2,120            4,337
  Tenants' security deposits                             55,241           44,276
  Prepaid expenses                                      149,521          150,451
                                                    -----------      -----------

                                                    $12,473,830      $12,898,689
                                                    ===========      ===========

                       LIABILITIES AND PARTNERS' EQUITY

  Accounts payable                                  $     6,047      $       830
  Deferred rental income                                154,323           69,380
  Accrued distributions                               2,709,187        2,315,804
  Accrued guaranteed payments                         1,458,793        1,246,972
  Tenants' security deposits payable                     55,241           44,276
  Due to affiliates                                      18,197           14,521
                                                    -----------      -----------

                                                      4,401,788        3,691,783

PARTNERS' EQUITY                                      8,072,042        9,206,906
                                                    -----------      -----------

                                                    $12,473,830      $12,898,689
                                                    ===========      ===========

                       See notes to financial statements


                                     - 4 -
<PAGE>

                               Frederick Partners

                            STATEMENTS OF OPERATIONS

                  Years ended December 31, 1997, 1996 and 1995


                                           1997             1996           1995
                                         ----------- --------------   ---------

Revenue
  Rent                                    $2,794,683    $2,629,810    $2,572,890
  Other lease related income                 118,158        96,688        88,132
  Interest                                     5,796         7,153         6,198
                                          ----------    ----------    ----------

        Total revenue                      2,918,637     2,733,651     2,667,220
                                          ----------    ----------    ----------

Expenses
  Operating expenses
     Advertising and promotion                53,690        63,263        45,491
     Salaries                                303,412       262,844       256,226
     Administrative                           57,442        61,019        50,708
     Management fee                          102,152        95,681        93,354
     Maintenance                             251,807       270,429       177,913
     Utilities                                93,679        91,077        86,482
     Real estate taxes                       275,285       247,279       252,920
     Insurance                                24,686        27,764        28,057
     Depreciation                            613,371       675,378       687,307
     Guaranteed payments                     797,252       776,988       758,097
                                          ----------    ----------    ----------

        Total operating expenses           2,572,776     2,571,722     2,436,555
                                          ----------    ----------    ----------

        EXCESS OF REVENUE OVER
          EXPENSES                        $  345,861    $  161,929    $  230,665
                                          ==========    ==========    ==========


                       See notes to financial statements

                                     - 5 -
<PAGE>

                               Frederick Partners

                         STATEMENTS OF PARTNERS' EQUITY

                  Years ended December 31, 1997, 1996, and 1995


<TABLE>
<CAPTION>
                                            Frederick         Frederick                             Copley
                                             Bozzuto         Bozzuto Two         Copley            Pension
                                             Limited           Limited           Pension          Properties           Total
                                           Partnership       Partnership      Properties VI          VII               Equity
                                         ----------------- -----------------------------------  ---------------  -------------------

<S>                                       <C>               <C>              <C>                 <C>               <C>
Partners' equity, (deficit),
         December 31, 1994                $     (110,796)   $      (63,178)  $      8,879,379    $   2,959,780     $     11,665,185

Distributions                                         -                 -          (1,055,921)        (351,974)          (1,407,895)

Excess of revenue over expenses                       -                 -             172,999           57,666              230,665
                                           ---------------   ---------------  ----------------    -------------     ----------------


Partners' equity (deficit)
         December 31, 1995                      (110,796)          (63,178)         7,996,457        2,665,472           10,487,955

Distributions                                         -                 -          (1,082,233)        (360,745)          (1,442,978)

Excess of revenue over expenses                       -                 -             121,447           40,482              161,929
                                           ---------------   ---------------  ----------------    -------------     ----------------


Partners' equity (deficit),
         December 31, 1996                      (110,796)          (63,178)         7,035,671        2,345,209            9,206,906

Distributions                                         -                 -          (1,110,542)        (370,183)          (1,480,725)

Excess of revenue over expenses                       -                 -             259,396           86,465              345,861
                                           ---------------   ---------------  ----------------    -------------     ----------------


Partners' equity (deficit),
         December 31, 1997                $     (110,796)   $      (63,178)  $      6,184,525    $   2,061,491     $      8,072,042
                                           ===============   ===============  ================    =============     ================

</TABLE>

                       See notes to financial statements

                                     - 6 -
<PAGE>

                               Frederick Partners

                            STATEMENTS OF CASH FLOWS

                  Years ended December 31, 1997, 1996 and 1995

<TABLE>
<CAPTION>
                                                                                   1997               1996                1995
                                                                             -----------------  ------------------ -----------------

<S>                                                                            <C>                <C>                <C>
Cash flows from operating activities
  Excess of revenue over expenses                                              $      345,861     $       161,929    $      230,665
  Adjustments to reconcile excess of revenue over expenses
    to net cash provided by operating activities
    Depreciation                                                                      613,371             675,378           687,307
    Changes in assets and liabilities
      Decrease (increase) in tenant receivables                                         2,217               1,792            (4,784)
      Decrease (increase) in prepaid expenses                                             930             (25,860)           31,595
      Increase (decrease) in deferred rental income                                    84,943             (45,542)          (53,570)
      Increase (decrease) in accounts payable                                           5,218             (25,124)           15,240
      Net security deposits (paid) received                                                 -               4,239            (4,240)
      Increase in accrued guaranteed payments                                         211,821             204,391           174,570
      Increase (decrease) in due to affiliates                                          3,676             (36,734)           35,831
                                                                                --------------     ---------------    --------------


    Net cash provided by operating activities                                       1,268,037             914,469         1,112,614
                                                                                --------------     ---------------    --------------


Cash flows from investing activities:
  Capital additions                                                                   (13,600)                -                -
                                                                                --------------     ---------------    --------------


    Net cash used in investing activities                                             (13,600)                -                -
                                                                                --------------     ---------------    --------------


Cash flows from financing activities
  Capital distributions paid                                                       (1,087,342)         (1,063,396)       (1,083,694)
                                                                                --------------     ---------------    --------------


    Net cash used in financing activities                                          (1,087,342)         (1,063,396)       (1,083,694)
                                                                                --------------     ---------------    --------------


    NET INCREASE (DECREASE) IN CASH                                                   167,095            (148,927)           28,920

Cash, beginning                                                                       174,893             323,820           294,900
                                                                                --------------     ---------------    --------------


Cash, ending                                                                   $      341,988     $       174,893    $      323,820
                                                                                ==============     ===============    ==============


Supplemental disclosure of cash flow information
  Cash paid during the year for guaranteed payments                            $      585,431     $       572,597    $      583,527
                                                                                ==============     ===============    ==============

</TABLE>

                        See notes to financial statements

                                     - 7 -
<PAGE>

                               Frederick Partners

                          NOTES TO FINANCIAL STATEMENTS

                        December 31, 1997, 1996 and 1995

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


    Frederick Partners (the Partnership) was formed as a general partnership
    under the laws of the State of Maryland on March 20, 1989, for the purpose
    of constructing, owning and operating a rental housing project. The project
    consists of 314 units located in Frederick County, Maryland, and is
    operating as Crystal Park. During 1990, the construction of the first phase
    (Phase I) was completed and rental operations commenced. During 1991,
    construction of a second phase of the project (Phase II) was completed and
    rental operations commenced. All leases between the Partnership and tenants
    of the property are operating leases.

    Use of Estimates
    ----------------

    The preparation of financial statements in conformity with generally
    accepted accounting principles requires management to make estimates and
    assumptions that affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of the financial
    statements and the reported amounts of revenue and expenses during the
    reporting period. Actual results could differ from those estimates.

    Investment in Real Estate
    -------------------------

    Investment in real estate is carried at cost. Management does not believe
    that there are any current facts or circumstances that would indicate
    impairment of the rental property in accordance with Statement of Financial
    Accounting Standards (SFAS) No. 121. Depreciation is provided for in amounts
    sufficient to relate the cost of depreciable assets to operations over their
    estimated service lives using accelerated methods.

    Rental Income
    -------------

    Rental income is recognized as rentals become due. Rental payments received
    in advance are deferred until earned.

    Income Taxes
    ------------
    No provision or benefit for income taxes has been included in these
    financial statements since taxable income or loss passes through to, and is
    reportable by, the partners individually.

                                     - 8 -
<PAGE>

                               Frederick Partners

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                        December 31, 1997, 1996 and 1995


NOTE B - RELATED PARTY TRANSACTIONS

    Expenses Incurred and Reimbursed to Affiliates
    ----------------------------------------------

    The Partnership reimburses payroll and other costs incurred by Bozzuto &
    Associates, Inc., an affiliate of Frederick Bozzuto Limited Partnership and
    Frederick Bozzuto Two Limited Partnership, general partners, for various
    administrative and operating services relating to the project and performed
    by their employees. During 1997, 1996 and 1995, $345,675, $299,261, and
    $284,283 were incurred, respectively. At December 31, 1997, $18,197 remains
    unpaid, while $14,521 was unpaid as of December 31, 1996.

    Management Fees
    ---------------

    The Partnership is required to pay an annual property management fee to
    Bozzuto Management Company, an affiliate of Frederick Bozzuto Limited
    Partnership and Frederick Bozzuto Two Limited Partnership, general partners,
    in an amount equal to 3.5% of gross receipts collected. Management fees of
    $102,152, $95,681and $93,354 were expensed in 1997, 1996 and 1995,
    respectively. At December 31, 1997, $8,708 remains unpaid, while $8,314 was
    unpaid as of December 31, 1996.


NOTE C - PARTNERS' EQUITY

    The acquisition and development of Phase I was funded by capital
    contributions from Copley Pension Properties VI and VII, (CPP VI and VII),
    general partners, in the amounts of $9,000,000 and $3,000,000, respectively.
    The amended and restated Partnership agreement (the Agreement) provides for
    capital contributions to be characterized as senior and junior capital. CPP
    VI capital consists of $6,750,000 of senior capital and $2,250,000 of junior
    capital. CPP VII capital consists of $2,250,000 of senior capital and
    $750,000 of junior capital. Capital contributed by both CPP VI and CPP VII
    has been contributed pro rata, whereby 75% has been characterized as Phase I
    senior capital and 25% as Phase I junior capital.

    The Agreement provides for both a "Senior and Junior Priority Return," on a
    monthly basis, which is calculated at the rate of 10.09% per annum on the
    outstanding capital. The Phase I Priority Returns are payable monthly from
    Operating Cash Flow as defined in the Agreement; however, (a) to the extent
    Senior Priority Returns are required to be paid currently, they will be
    funded, if necessary, out of the proceeds of Deficit Contributions and
    Default Capital Contributions as defined in the Agreement, and (b) to the
    extent the full amount of the Junior


                                     - 9 -
<PAGE>

                               Frederick Partners

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                        December 31, 1997, 1996 and 1995


NOTE C - PARTNERS' EQUITY (Continued)

    Priority Return cannot be made from such sources on a monthly basis, the
    amount of the Junior Priority Return will accrue with interest compounded
    monthly.

    At December 31, 1997 and 1996, the Phase I Junior Priority Return (including
    accrued interest of $1,015,108, $753,984, respectively) and Senior Priority
    Returns (including accrued interest at $5,775 and $5,916, respectively)
    payable totaled $2,827,913 (of which $2,132,315 was due to CPP VI and
    $695,598 was due to CPP VII) and $2,509,334, (of which $1,892,117 was due to
    CPP VI and $617,217 was due to CPP VII), respectively.

    The acquisition and development of Phase II was funded by capital
    contributions from CPP VI and CPP VII in the amounts of $5,100,000 and
    $1,700,000, respectively. The Agreement provides for capital contributions
    to be characterized as senior and junior capital. CPP VI capital consists of
    $3,825,000 of senior capital and $1,275,000 of junior capital. CPP VII
    capital consists of $1,275,000 of senior capital and $425,000 of junior
    capital. Capital contributed by both CPP VI and CPP VII has been contributed
    pro rata, whereby 75% has been characterized as Phase II senior capital and
    25% as Phase II junior capital.

    The Agreement provides for both a "Senior and Junior Priority Return," on a
    monthly basis, which is calculated at the rate of 10.09% per annum on their
    outstanding capital. The Phase II Priority Returns are payable monthly from
    Operating Cash Flow as defined in the Agreement, but, (a) to the extent
    Senior Priority Returns are required to be paid currently, they will be
    funded, if necessary, out of the proceeds of Deficit Contributions and
    Default Capital Contributions as defined in the Agreement, and (b) to the
    extent the full amount of the Junior Priority Return cannot be made from
    such sources on a monthly basis, the amount of the Junior Priority Return
    will accrue with interest compounded monthly.

    At December 31, 1997 and 1996, the Phase II Junior Priority Return
    (including accrued interest of $368,415 and $253,360 respectively) and
    Senior Priority Returns payable totaled $1,340,067 (of which $1,000,804 was
    due to CPP VI and $339,263 was due to CPP VII) and $1,053,442 (of which
    $786,282 was due to CPP VI and $267,160 was due to CPP VII), respectively.

                                    - 10 -
<PAGE>

                               Frederick Partners

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                        December 31, 1997, 1996 and 1995


NOTE D - RECONCILIATION OF FINANCIAL STATEMENTS TO TAX RETURN

    The following is a reconciliation of the excess of revenue over expenses and
    partners' equity per the financial statements to the tax basis excess
    (deficiency) of revenue over expenses and partners' equity for the years
    ended December 31, 1997, 1996, and 1995.

<TABLE>
<CAPTION>
                                                                 1997               1996                1995
                                                           -----------------  ------------------  ------------------
         <S>                                                <C>                <C>                 <C>
         Excess of revenue over expenses
                  (financial statement basis)               $       345,861    $       161,929     $        230,665
         Deferred rental income                                      84,943            (45,542)             (53,570)
         Real estate taxes deductible under IRS
             Code Section 461                                          (908)           (27,098)              32,738
                                                              --------------     ---------------     ---------------

                           Tax basis excess of revenue
                              over expenses                 $       429,896    $        89,289     $        209,833
                                                              ==============     ===============     ===============

         Partners' equity (financial statement basis)       $     8,072,042    $     9,206,906     $     10,487,955
         Deferred rental income                                     154,323             69,380              114,922
         Real estate taxes deductible under IRS
                  Code Section 461                                 (138,097)          (137,189)            (110,091)
                                                              --------------     ---------------     ---------------

                           Tax basis                        $     8,088,268    $     9,139,097     $     10,492,786
                                                              ==============     ===============     ===============
</TABLE>


NOTE E - CONCENTRATION OF CREDIT RISK

    The Partnership maintains its cash balances in two banks. The balances are
    insured by the Federal Deposit Insurance Corporation up to $100,000 by each
    bank. As of December 31, 1997, the uninsured portion of the cash balances
    held at one of the banks was, $180,396.


                                    - 11 -

<PAGE>

                                 EXHIBIT INDEX
                                 -------------

Exhibit                                                                     Page
Number                             Exhibit
------                             -------

10A.                  Lakewood Associates General Partnership                *
                      Agreement dated August, 1988 between EW
                      Lakewood Limited Partnership, New England
                      Pension properties V; A Real Estate
                      Limited Partnership and the Registrant.

10B.                  Hewson Wilmington Associates General                   *
                      Partnership Agreement dated July 18, 1988
                      between Hewson/Wilmington, L.P. and the
                      Registrant.

10C.                  Farmers Branch Associates General Partnership          *
                      Agreement dated December 7, 1988 between North
                      Dallas Division #81, Ltd. and the Registrant.

10D.                  Payne Ranch Centre Associates General                  *
                      Partnership Agreement dated January 4, 1989
                      between Payne Ranch Investors 88 and the
                      Registrant.

10E.                  Development Agreement dated December 28,               *
                      1988 by and between Payne Ranch Centre Associates
                      and Albertson's, Inc.

10F.                  Contract of Sale dated December 28, 1988 by            *
                      and between Payne Ranch Centre Associates and
                      Albertson's, Inc.

10G.                  Frederick Partners General Partnership                 *
                      Agreement dated as of March 20, 1989 between
                      Frederick Bozzuto Limited Partnership, Copley
                      Pension Properties VII; A Real Estate Limited
                      Partnership and the Registrant.

10H.                  First Amendment to Hewson Wilmington Associates        *
                      General Partnership Agreement dated as of
                      December 31, 1989 by and between Hewson/Wilmington,
                      L.P., a California limited partnership and the
                      Registrant.




-------------------------------------------------------------------
*  Previously filed and incorporated herein by reference.
<PAGE>

10I.                  White Phonic Associates General Partnership            *
                      Agreement dated as of April 30, 1990 between
                      White/Vila Associates II, a California general
                      partnership and the Registrant.

10J.                  Purchase and Sale Agreement and Escrow                 *
                      Instructions dated as of June 12, 1990 by
                      and between Payne Ranch Centre Associates,
                      a Colorado general partnership and Super
                      Enterprises, Inc., a California corporation.

10K.                  Purchase and Sale Agreement and Escrow Instructions    *
                      (Jiffy Lube Parcel) by and between Payne Ranch
                      Centre Associates and Super Enterprises, Inc. dated
                      as of July 26, 1990.

10L.                  Purchase and Sale Agreement and Escrow Instructions    *
                      (Wells Fargo Parcel) by and between Payne Ranch
                      Associates and Super Enterprises, Inc. dated as of
                      August 31, 1990.

10M.                  Second Amendment to Farmers Branch Associates
                      General Partnership Agreement by and between           *
                      North Dallas Division #81, Ltd. and the
                      Registrant effective as of October 18, 1989.


10N.                  General Partnership Agreement of                       *
                      Prentiss/Copley Itasca Associates dated as of
                      May 20, 1991 between Prentiss Properties
                      Itasca, L.P., a Texas limited partnership and
                      the Registrant.

10O.                  Agreement of Dissolution of Partnership and            *
                      Cancellation of Farmers Branch Associates
                      General Partnership Agreement dated July 1, 1994
                      by and between North Dallas Division #81, Ltd., a Texas
                      limited partnership, and Registrant.

10P.                  Asset Contribution Agreement by and among Evans        *
                      Withycombe Residential, Inc., a Maryland Corporation,
                      and Evans Withycombe Residential, L.P., a Delaware
                      limited partnership, as Purchasers and Lakewood
                      Associates, an Arizona limited Partnership composed
                      of Registrant, New England Pension Properties V and EW
                      Lakewood L.P., as Sellers, dated June 9, 1994.

27.                   Financial Data Schedule



 --------------------------------------------------------------
 *  Previously filed and incorporated herein by reference.
<PAGE>

                                   SIGNATURES
                                   ----------


         Pursuant to the requirements of Section 13 or 15(d) 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.

                                    COPLEY PENSION PROPERTIES VI;
                                    A REAL ESTATE LIMITED PARTNERSHIP


Date:    March 31, 1998             By:  /s/ Wesley M. Gardiner, Jr.
                                         ---------------------------
                                         Wesley M. Gardiner, Jr.
                                         President of the
                                         Managing General Partner


         Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.


         Signature                         Title                        Date
         ---------                         -----                        ----

                                      President, Chief
                                      Executive Officer and
 /s/ Wesley M. Gardiner, Jr.          Director                    March 31, 1998
--------------------------------
     Wesley M. Gardiner, Jr.

                                      Vice President and
 /s/ Pamela J. Herbst                 Director                    March 31, 1998
--------------------------------
     Pamela J. Herbst

                                      Vice President and
 /s/ J. Grant Monahon                 Director                    March 31, 1998
--------------------------------
     J. Grant Monahon


 /s/ James J. Finnegan                Vice President              March 31, 1998
--------------------------------
     James J. Finnegan

                                      Treasurer and Principal
 /s/ Karin J. Lagerlund               Financial and
--------------------------------      Accounting Officer          March 31, 1998
     Karin J. Lagerlund