-----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, Nav7s57tpc38oLw216mYI+UUlEnzUijAra2rlRuRFKS7cQoSFPjRQfOObFNJ3zrE b0SZ+f5800VfrshzLC2fSw== 0000225775-96-000029.txt : 19961113 0000225775-96-000029.hdr.sgml : 19961113 ACCESSION NUMBER: 0000225775-96-000029 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961112 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC STORAGE PROPERTIES LTD CENTRAL INDEX KEY: 0000202953 STANDARD INDUSTRIAL CLASSIFICATION: LESSORS OF REAL PROPERTY, NEC [6519] IRS NUMBER: 953196921 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-08667 FILM NUMBER: 96659121 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 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 September 30, 1996 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 Avenue Glendale, California 91201 - ---------------------------------------- --------------------- (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 September 30, 1996 and December 31, 1995 2 Condensed statements of income for the three and nine months ended September 30, 1996 and 1995 3 Condensed statement of partners' deficit for the nine months ended September 30, 1996 4 Condensed statements of cash flows for the nine months ended September 30, 1996 and 1995 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 9 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED BALANCE SHEETS
September 30, December 31, 1996 1995 ------------------ ------------------- (Unaudited) ASSETS Cash and cash equivalents $ 92,000 $ 89,000 Rent and other receivables 35,000 42,000 Real estate facilities, at cost: Buildings and equipment 7,653,000 7,493,000 Land 2,511,000 2,511,000 ------------------ ------------------- 10,164,000 10,004,000 Less accumulated depreciation (4,942,000) (4,644,000) ------------------ ------------------- 5,222,000 5,360,000 ------------------ ------------------- Other assets 205,000 354,000 ------------------ ------------------- Total assets $ 5,554,000 $ 5,845,000 ================== =================== LIABILITIES AND PARTNERS' EQUITY Accounts payable $ 49,000 $ 77,000 Deferred revenue 113,000 132,000 Due to affiliate - 130,000 Notes payable 15,494,000 16,351,000 Partners' deficit: Limited partners' deficit, $500 per unit, 20,000 units authorized, issued and outstanding (7,501,000) (8,052,000) General partners' deficit (2,601,000) (2,793,000) ------------------ ------------------- Total partners' deficit (10,102,000) (10,845,000) ------------------ ------------------- Total liabilities and partners' deficit $ 5,554,000 $ 5,845,000 ================== ===================
See accompanying notes. 2
PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, -------------------------------------- ------------------------------------- 1996 1995 1996 1995 ----------------- ------------------ ----------------- ----------------- (Restated) (Restated) REVENUE: Rental income $ 1,012,000 $ 976,000 $ 2,960,000 $ 2,873,000 Dividends and other income (including dividends from marketable securities of affiliate in 1995) 2,000 8,000 4,000 26,000 ----------------- ------------------ ----------------- ----------------- 1,014,000 984,000 2,964,000 2,899,,000 ----------------- ------------------ ----------------- ----------------- COSTS AND EXPENSES: Cost of operations 230,000 213,000 697,000 670,000 Management fees paid to affiliate 55,000 58,000 158,000 172,000 Depreciation 103,000 92,000 298,000 260,000 Administrative 15,000 13,000 36,000 38,000 Environmental cost - - - 22,000 Interest expense 343,000 379,000 1,032,000 1,150,000 ----------------- ------------------ ----------------- ----------------- 746,000 755,000 2,221,000 2,312,000 ----------------- ------------------ ----------------- ----------------- NET INCOME $ 268,000 $ 229,000 $ 743,000 $ 587,000 ================= ================== ================= ================= Limited partners' share of net income ($36.75 per unit in 1996 and $29.05 per unit in 1995) $ 735,000 $ 581,000 General partners' share of net income 8,000 6,000 ----------------- ----------------- $ 743,000 $ 587,000 ================= =================
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, 1995 ($8,052,000) ($2,793,000) ($10,845,000) Net income 735,000 8,000 743,000 Equity transfer (184,000) 184,000 - ------------------- ----------------- ----------------- Balance at September 30, 1996 ($7,501,000) ($2,601,000) ($10,102,000) =================== ================= =================
See accompanying notes. 4
PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, ---------------------------------------------- 1996 1995 --------------------- -------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 743,000 $ 587,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 298,000 260,000 Decrease in rent and other receivables 7,000 23,000 Amortization of prepaid management fees 137,000 - Decrease in prepaid loan fees 25,000 24,000 Increase (decrease) in other assets (13,000) 1,000 (Decrease) increase in accounts payable (28,000) 138,000 Decrease in deferred revenue (19,000) (21,000) --------------------- -------------------- Total adjustments 407,000 425,000 --------------------- -------------------- Net cash provided by operating activities 1,150,000 1,1012,000 --------------------- -------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to real estate facilities (160,000) (315,000) --------------------- -------------------- Net cash used in investing activities (160,000) (315,000) --------------------- -------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of note payable to affiliate (130,000) - Principal payments on mortgage notes payable (857,000) (778,000) --------------------- -------------------- Net cash used in financing activities (987,000) (778,000) --------------------- -------------------- Net increase (decrease) in cash and cash equivalents 3,000 (81,000) Cash and cash equivalents at the beginning of the period 89,000 162,000 --------------------- -------------------- Cash and cash equivalents at the end of the period $ 92,000 $ 81,000 ==================== ===================== Supplemental schedule of noncash investing and financing activities: Increase in fair value of marketable securities $ - $ (169,000) ==================== ===================== Unrealized gain on marketable securities - 169,000 ==================== =====================
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, 1995. 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 September 30, 1996, the results of its operations for the three and nine months ended September 30, 1996 and 1995 and its cash flows for the nine months then ended. 3. The results of operations for the three and nine months ended September 30, 1996 are not necessarily indicative of the results expected for the full year. 4. In 1995, the Partnership prepaid eight months of 1996 management fees at a cost of $137,000. The amount has been amortized at management fees paid to affiliate during the nine months ended September 30, 1996. 5. Certain prior year amounts have been reclassified to conform with the 1996 presentation. 6 PUBLIC STORAGE PROPERTIES, LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1995: The Partnership's net income for the nine months ended September 30, 1996 was $743,000 compared to $587,000 for the nine months ended September 30, 1995, representing an increase of $156,000, or 27%. The Partnership's net income for the three months ended September 30, 1996 was $268,000 compared to $229,000 for the three months ended September 30, 1995, representing an increase of $39,000 or 17%. These increases are primarily a result of increased rental income combined with decreased interest expense due to lower outstanding loan balances in 1996 compared to 1995, partially offset by a decrease in dividend income. During 1995, the Partnership held 39,911 shares of common stock in Public Storage, Inc., an affiliate of the Partnership. In November 1995, the Partnership sold these shares. Rental income was $2,960,000 compared to $2,873,000 for the nine months ended September 30, 1996 and 1995, respectively, representing an increase of $87,000 or 3%. Rental income was $1,012,000 compared to $976,000 for the three months ended September 30, 1996 and 1995, respectively, representing an increase of $36,000 or 4%. These increases are primarily attributable to increases in occupancy levels and rental rates. The weighted average occupancy levels at the mini-warehouse facilities were 91% and 90% for the nine months ended September 30, 1996 and 1995, respectively. Realized rent for the nine months ended September 30, 1996 increased to $.71 per occupied square foot from $.70 per occupied square foot for the nine months ended September 30, 1995. Cost of operations (including management fees paid to affiliate) increased $13,000 or 2% to $855,000 from $842,000 for the nine months ended September 30, 1996 and 1995, respectively. This increase is mainly attributable to increases in payroll and advertising expenses. Cost of operations (including management fees paid to affiliate) increased $14,000 or 5% to $285,000 from $271,000 for the three months ended September 30, 1996 and 1995, respectively. This increase is mainly attributable to increases in payroll and advertising expenses, partially offset by a decrease in management fees paid to an affiliate. In 1995, the Partnership prepaid eight months of 1996 management fees on its mini-warehouse operations (based on the management fees for the comparable period during the calendar year immediately preceding the prepayment) discounted 7 at the rate of 14% per year to compensate for early payment. The Partnership has expensed the prepaid management fees during the nine months ended September 30, 1996 The amount is included in management fees paid to affiliate in the condensed statements of income. As a result of the prepayment, the Partnership saved approximately $20,000 in management fees, based on the management fees that would have been payable on rental income generated in the nine months ended September 30, 1996 compared to the amount prepaid. Interest expense decreased $118,000 to $1,032,000 from $1,150,000 for the nine months ended September 30, 1996 and 1995, respectively. This decrease is mainly attributable to lower outstanding principal balances on the Partnership's notes payable. In 1995, the Partnership incurred cost of $22,000 to conduct environmental assessments of its properties to evaluate the environmental condition of and potential environmental liabilities of such properties. Those assessments did not indicate any environmental contamination of any of its property sites which individually or in the aggregate would be material to the Partnership's overall business, financial condition, or results of operations. No such cost was incurred in 1996. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- Cash generated from operations ($1,150,000 for the nine months ended September 30, 1996) has been sufficient to meet all current obligations of the Partnership, including principal repayments of the Partnership's notes payable. For the nine months ended September 30, 1995, the Partnership recognized $26,000 in dividends from 39,911 shares of common stock (marketable securities) held in Public Storage, Inc., one of the general partners in the Partnership. The marketable securities were sold in November 1995, and, as a result, no such dividend income was earned in 1996. In the fourth quarter of 1990, quarterly distributions were discontinued to enable the Partnership to increase its cash reserves for principal payments that commenced in 1993. 8 PART II. OTHER INFORMATION ITEMS 1 through 5 are inapplicable. ITEM 6 Exhibits and Reports on Form 8-K -------------------------------- (a) The following Exhibit is 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: November 12, 1996 PUBLIC STORAGE PROPERTIES, LTD. BY: Public Storage, Inc. General Partner BY: /s/ Ronald L. Havner, Jr. ------------------------------------ Ronald L. Havner, Jr. Senior Vice President and Chief Financial Officer (principal financial officer) 9 EX-27 2 FDS -- ARTICLE 5
5 0000202953 PUBLIC STORAGE PROPERTIES , LTD. 1 US 9-MOS DEC-31-1996 JAN-01-1996 SEP-30-1996 1 92,000 0 240,000 0 0 332,000 10,164,000 (4,942,000) 5,554,000 162,000 15,494,000 0 0 0 (10,102,000) 5,554,000 0 2,964,000 0 855,000 334,000 0 1,032,000 743,000 0 743,000 0 0 0 743,000 36.75 36.75
-----END PRIVACY-ENHANCED MESSAGE-----