-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PFT3khFQbst4BkRQb8W0sQOEhOt8fijSR8WEerMo+sgW1xl1PvZp3QXEyLrLu3Of y4Z6VyG1zjfIsJ891MloaA== /in/edgar/work/20000811/0000202953-00-000007/0000202953-00-000007.txt : 20000921 0000202953-00-000007.hdr.sgml : 20000921 ACCESSION NUMBER: 0000202953-00-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC STORAGE PROPERTIES LTD CENTRAL INDEX KEY: 0000202953 STANDARD INDUSTRIAL CLASSIFICATION: [6519 ] IRS NUMBER: 953196921 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-08667 FILM NUMBER: 695121 BUSINESS ADDRESS: STREET 1: 701 WESTERN AVE STREET 2: SUITE 200 CITY: GLENDALE STATE: CA ZIP: 91201-2397 BUSINESS PHONE: 8182448080 MAIL ADDRESS: STREET 1: 701 WESTERN AVE STREET 2: SUITE 200 CITY: GLENDALE STATE: CA ZIP: 91201 10-Q 1 0001.txt 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended June 30, 2000 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to --------------- --------------- Commission File Number 0-8667 ------ PUBLIC STORAGE PROPERTIES, LTD. ------------------------------- (Exact name of registrant as specified in its charter) California 95-3196921 - -------------------------------------- ---------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 701 Western Ave. Glendale, California 91201-2349 - -------------------------------------- ---------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (818) 244-8080 ---------------------- 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 --- --- INDEX Page ---- PART I. FINANCIAL INFORMATION Condensed balance sheets at June 30, 2000 and December 31, 1999 2 Condensed statements of income for the three and six months ended June 30, 2000 and 1999 3 Condensed statement of partners' deficit for the six months ended June 30, 2000 4 Condensed statements of cash flows for the six months ended June 30, 2000 and 1999 5 Notes to condensed financial statements 6 Management's discussion and analysis of financial condition and results of operations 7-8 PART II. OTHER INFORMATION Item 6 Exhibits and Reports on Form 8-K 9 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED BALANCE SHEETS
June 30, December 31, 2000 1999 --------------- --------------- (Unaudited) ASSETS ------ Cash and cash equivalents $ 161,000 $ 153,000 Rent and other receivables 96,000 73,000 Real estate facilities, at cost: Building, land improvements and equipment 8,647,000 8,611,000 Land 2,475,000 2,511,000 --------------- --------------- 11,122,000 11,122,000 Less accumulated depreciation (6,840,000) (6,569,000) --------------- --------------- 4,282,000 4,553,000 Other assets 87,000 94,000 --------------- --------------- Total assets $ 4,626,000 $ 4,873,000 =============== =============== LIABILITIES AND PARTNERS' DEFICIT --------------------------------- Accounts payable $ 32,000 $ 78,000 Deferred revenue 156,000 156,000 Note payable to commercial bank 7,525,000 9,225,000 Partners' deficit: Limited partners' deficit, $500 per unit, 20,000 units authorized, issued and outstanding (2,292,000) (3,405,000) General partners' deficit (795,000) (1,181,000) --------------- --------------- Total partners' deficit (3,087,000) (4,586,000) --------------- --------------- Total liabilities and partners' deficit $ 4,626,000 $ 4,873,000 =============== ===============
See accompanying notes. 2 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30, ------------- ------------- ------------- ------------- 2000 1999 2000 1999 ------------- ------------- ------------- ------------- REVENUES: Rental income $ 1,347,000 $ 1,239,000 $ 2,634,000 $ 2,413,000 Gain on sale of land 69,000 - 135,000 - Other income 3,000 3,000 5,000 5,000 ------------- ------------- ------------- ------------- 1,419,000 1,242,000 2,774,000 2,418,000 ------------- ------------- ------------- ------------- COSTS AND EXPENSES: Cost of operations 284,000 272,000 571,000 578,000 Management fees paid to affiliate 81,000 75,000 158,000 145,000 Depreciation 132,000 145,000 271,000 287,000 Administrative 26,000 17,000 55,000 42,000 Interest expense 103,000 151,000 220,000 316,000 ------------- ------------- ------------- ------------- 626,000 660,000 1,275,000 1,368,000 ------------- ------------- ------------- ------------- NET INCOME $ 793,000 $ 582,000 $ 1,499,000 $ 1,050,000 ============= ============= ============= ============= Limited partners' share of net income ($74.20 per unit in 2000 and $52.00 per unit in 1999) $ 1,484,000 $ 1,040,000 General partners' share of net income 15,000 10,000 ------------- ------------- $ 1,499,000 $ 1,050,000 ============= =============
See accompanying notes. 3 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENT OF PARTNERS' DEFICIT (UNAUDITED)
Total Limited General Partners' Partners Partners Deficit ----------------- ----------------- ----------------- Balance at December 31, 1999 $ (3,405,000) $ (1,181,000) $ (4,586,000) Net income 1,484,000 15,000 1,499,000 Equity transfer (371,000) 371,000 - ----------------- ----------------- ----------------- Balance at June 30, 2000 $ (2,292,000) $ (795,000) $ (3,087,000) ================= ================= =================
See accompanying notes. 4 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, ------------------------------------- 2000 1999 ---------------- ---------------- Cash flows from operating activities: Net income $ 1,499,000 $ 1,050,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 271,000 287,000 Gain on sale of land (135,000) - (Increase) decrease in rent and other receivables (23,000) 3,000 Decrease in other assets 7,000 7,000 Decrease in accounts payable (46,000) (41,000) Increase in deferred revenue - 15,000 ---------------- ---------------- Total adjustments 74,000 271,000 ---------------- ---------------- Net cash provided by operating activities 1,573,000 1,321,000 ---------------- ---------------- Cash flows from investing activities: Proceeds from sale of land 171,000 - Additions to real estate facilities (36,000) (76,000) ---------------- ---------------- Net cash provided by (used in) investing activities 135,000 (76,000) ---------------- ---------------- Cash flows from financing activities: Principal payments on note payable to commercial bank (1,700,000) (1,375,000) ---------------- ---------------- Net cash used in financing activities (1,700,000) (1,375,000) ---------------- ---------------- Net increase (decrease) in cash and cash equivalents 8,000 (130,000) Cash and cash equivalents at the beginning of the period 153,000 248,000 ---------------- ---------------- Cash and cash equivalents at the end of the period $ 161,000 $ 118,000 ================ ================
See accompanying notes. 5 PUBLIC STORAGE PROPERTIES, LTD. NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) 1. The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures contained herein are adequate to make the information presented not misleading. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes appearing in the Partnership's Form 10-K for the year ended December 31, 1999. 2. In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal accruals, necessary to present fairly the Partnership's financial position at June 30, 2000, the results of its operations for the six months ended June 30, 2000 and 1999 and its cash flows for the six months then ended. 3. The results of operations for the six months ended June 30, 2000 are not necessarily indicative of the results expected for the full year. 4. During October 1998, we borrowed $12,400,000 from a commercial bank. The loan is unsecured and bears interest at the London Interbank Offering Rate ("LIBOR") plus 0.55% (7.18% as of June 30, 2000). The loan requires monthly payments of interest and matures October 2002. Principal may be paid, in whole or in part, at any time without penalty or premium. We also entered into interest rate swap agreements to reduce the impact of changes in interest rates on a portion of its floating rate debt. The agreement, which covers $5,000,000 of debt through October 2000, effectively changes the interest rate exposure from floating rate to a fixed rate of 5.205%. The second agreement, which covers $2,500,000 of debt through October 2001 and effectively changes the interest rate exposure from floating rate to a fixed rate of 5.33%. Market gains and losses on the value of the swap are deferred and included in income over the life of the contract. We record the differences paid or received on the interest rate swap in interest expense as payments are made or received. As of June 30, 2000 the unrealized gain on the interest swap, if required to be liquidated was approximately $85,000. 5. We sold during March 2000 excess land adjacent to one of our operating properties for $98,000. This resulted in a gain of $66,000 being realized in the first quarter of 2000. We sold during June 2000, excess land adjacent to one of our operating properties for $73,000. This resulted in a gain $69,000 being realized in the second quarter of 2000. 6 PUBLIC STORAGE PROPERTIES, LTD., MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FORWARD LOOKING STATEMENTS - -------------------------- When used within this document, the words "expects," "believes," "anticipates," "should," "estimates," and similar expressions are intended to identify "forward-looking statements" within the meaning of that term in Section 27A of the Securities Exchange Act of 1933, as amended, and in Section 21F of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results and performance of the Partnership to be materially different from those expressed or implied in the forward looking statements. Such factors include the impact of competition from new and existing real estate facilities which could impact rents and occupancy levels at the real estate facilities that the Partnership has an interest in; the Partnership's ability to effectively compete in the markets that it does business in; the impact of the regulatory environment as well as national, state, and local laws and regulations including, without limitation, those governing Partnerships; and the impact of general economic conditions upon rental rates and occupancy levels at the real estate facilities that the Partnership has an interest in. RESULTS OF OPERATIONS - --------------------- THREE AND SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THREE AND SIX MONTHS ENDED JUNE 30, 1999: Our net income for the six months ended June 30, 2000 was $1,499,000 compared to $1,050,000 for the six months ended June 30, 1999, representing an increase of $449,000 or 43%. Our net income for the three months ended June 30, 2000 was $793,000 compared to $582,000 for the three months ended June 30, 1999, representing an increase of $211,000 or 36%. These increases are primarily a result of the sale of excess land which resulted in a gain of $135,000 and increased property operating results combined with a decrease in interest expense. Rental income for the six months ended June 30, 2000 was $2,634,000 compared to $2,413,000 for the six months ended June 30, 1999, representing an increase of $221,000 or 9%. Rental income for the three months ended June 30, 2000 was $1,347,000 compared to $1,239,000 for the three months ended June 30, 1999, representing an increase of $108,000 or 9%. These increases are primarily attributable to higher rental rates and higher occupancy levels at our mini-warehouse facilities. The weighted average occupancy levels at the mini-warehouse facilities were 96% and 93% for the six months ended June 30, 2000 and 1999, respectively. Annual realized rent for the six months ended June 30, 2000 increased to $10.85 per occupied square foot from $10.19 per occupied square foot for the six months ended June 30, 1999. Cost of operations (including management fees paid to an affiliate) for the six months ended June 30, 2000 was $729,000 compared to $723,000 for the six months ended June 30, 1999, representing an increase of $6,000 or 1%. Cost of 7 operations (including management fees paid to an affiliate) for the three months ended June 30, 2000 was $365,000 compared to $347,000 for the three months ended June 30, 1999, representing a increase of $18,000 or 5%. Interest expense decreased $96,000 to $220,000 for the six months ended June 30, 2000 from $316,000 for the same period in 1999. This decrease is mainly attributable to lower outstanding principal balances. See Liquidity and Capital Resources for a discussion of the refinancing of the Partnership's indebtedness. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- Cash generated from operations ($1,573,000 for the six months ended June 30, 2000) has been sufficient to meet all current obligations of the Partnership. During October 1998, we borrowed $12,400,000 from a commercial bank to payoff other loans. The loan is unsecured and bears interest at the London Interbank Offering Rate ("LIBOR") plus 0.55% (7.18% as of June 30, 2000). The loan requires monthly payments of interest and mature October 2002. Principal may be paid, in whole or in part, at any time without penalty or premium. We have also entered into interest rate swap agreements to reduce the impact of changes in interest rates on a portion of its floating rate debt. The agreement, which covers $5,000,000 of debt through October 2000, effectively changes the interest rate exposure from floating rate to a fixed rate of 5.205%. The second agreement, which covers $2,500,000 of debt through October 2001 and effectively changes the interest rate exposure from floating rate to a fixed rate of 5.33%. Market gains and losses on the value of the swap are deferred and included in income over the life of the contract. We record the differences paid or received on the interest rate swap in interest expense as payments are made or received. As of June 30, 2000, the unrealized gain on the interest rate swap, if required to be liquidated was approximately $85,000. 8 PART II. OTHER INFORMATION ITEMS 1 through 5 are inapplicable. ITEM 6 Exhibits and Reports on Form 8-K -------------------------------- (a) The following Exhibits are included herein: (27) Financial Data Schedule (b) Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DATED: August 11, 2000 PUBLIC STORAGE PROPERTIES, LTD. BY: Public Storage, Inc. General Partner BY: /s/ John Reyes -------------- John Reyes Senior Vice President and Chief Financial Officer 9 EX-27 2 0002.txt FDS --
5 0000202953 Public Storage Properties, Ltd. 1 US 6-MOS Dec-31-2000 Jan-01-2000 Jun-30-2000 1 161,000 0 96,000 0 0 257,000 11,122,000 (6,840,000) 4,626,000 188,000 0 0 0 0 (3,087,000) 4,626,000 0 2,774,000 0 729,000 326,000 0 220,000 1,499,000 0 1,499,000 0 0 0 1,499,000 74.20 74.20
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