-----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, F4v4zIKe6skHrtIqhTt7Mt9c4Co8flftWiuwNI1eKkpttEWRtkYBZKKaXjg3WIMz VLLiwPwgRpOvqtt0ZPjBGg== 0000277925-98-000006.txt : 19980813 0000277925-98-000006.hdr.sgml : 19980813 ACCESSION NUMBER: 0000277925-98-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980812 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: SEC FILE NUMBER: 000-08667 FILM NUMBER: 98684047 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 June 30, 1998 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, 1998 and December 31, 1997 2 Condensed statements of income for the three and six months ended June 30, 1998 and 1997 3 Condensed statement of partners' deficit for the six months ended June 30, 1998 4 Condensed statements of cash flows for the six months ended June 30, 1998 and 1997 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
June 30, December 31, 1998 1997 ----------------- ---------------- (Unaudited) ASSETS ------ Cash and cash equivalents $ 263,000 $ 546,000 Rent and other receivables 30,000 46,000 Real estate facilities, at cost: Building, land improvements and equipment 8,237,000 8,001,000 Land 2,511,000 2,511,000 ----------------- ---------------- 10,748,000 10,512,000 Less accumulated depreciation (5,728,000) (5,492,000) ----------------- ---------------- 5,020,000 5,020,000 ----------------- ---------------- Other assets 133,000 148,000 ----------------- ---------------- Total assets $ 5,446,000 $ 5,760,000 ================= ================ LIABILITIES AND PARTNERS' DEFICIT --------------------------------- Accounts payable $ 88,000 $ 32,000 Deferred revenue 138,000 131,000 Mortgage note payable 1,935,000 14,093,000 Note payable to affiliate 11,000,000 - Partners' deficit: Limited partners' deficit, $500 per unit, 20,000 units authorized, issued and outstanding (5,728,000) (6,308,000) General partners' deficit (1,987,000) (2,188,000) ----------------- ---------------- Total partners' deficit (7,715,000) (8,496,000) ----------------- ---------------- Total liabilities and partners' deficit $ 5,446,000 $ 5,760,000 ================= ================
See accompanying notes. 2 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30, ---------------------------------- ---------------------------------- 1998 1997 1998 1997 ---------------- ---------------- --------------- ----------------- REVENUES: Rental income $ 1,160,000 $ 1,051,000 $ 2,267,000 $ 2,101,000 Other income 7,000 3,000 15,000 5,000 ---------------- ---------------- --------------- ----------------- 1,167,000 1,054,000 2,282,000 2,106,000 ---------------- ---------------- --------------- ----------------- COSTS AND EXPENSES: Cost of operations 258,000 220,000 520,000 476,000 Management fees paid to affiliate 70,000 63,000 136,000 126,000 Depreciation 119,000 107,000 236,000 214,000 Administrative 22,000 15,000 35,000 25,000 Interest expense 277,000 328,000 574,000 638,000 ---------------- ---------------- --------------- ----------------- 746,000 733,000 1,501,000 1,479,000 ---------------- ---------------- --------------- ----------------- NET INCOME $ 421,000 $ 321,000 $ 781,000 $ 627,000 ================ ================ =============== ================= Limited partners' share of net income ($38.65 per unit in 1998 and $31.05 per unit in 1997) $ 773,000 $ 621,000 General partners' share of net income 8,000 6,000 --------------- ----------------- $ 781,000 $ 627,000 =============== =================
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, 1997 $ (6,308,000) $ (2,188,000) $ (8,496,000) Net income 773,000 8,000 781,000 Equity transfer (193,000) 193,000 - ------------------ ------------------ ------------------ Balance at June 30, 1998 $ (5,728,000) $ (1,987,000) $ (7,715,000) ================== ================== ==================
See accompanying notes. 4 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, -------------------------------------------- 1998 1997 --------------------- --------------------- Cash flows from operating activities: Net income $ 781,000 $ 627,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 236,000 214,000 Decrease (increase) in rent and other receivables 16,000 (30,000) Amortization of prepaid loan fees 16,000 16,000 (Increase) decrease in other assets (1,000) 11,000 Increase in accounts payable 56,000 7,000 Increase in deferred revenue 7,000 5,000 --------------------- --------------------- Total adjustments 330,000 223,000 --------------------- --------------------- Net cash provided by opererating activities 1,111,000 850,000 --------------------- --------------------- Cash flows from investing activities: Additions to real estate facilities (236,000) (126,000) --------------------- --------------------- Net cash used in investing activities (236,000) (126,000) --------------------- --------------------- Cash flows from financing activities: Principal payments on notes payable (1,158,000) (556,000) --------------------- --------------------- Net cash used in financing activities (1,158,000) (556,000) --------------------- --------------------- Net (decrease) increase in cash and cash equivalents (283,000) 168,000 Cash and cash equivalents at the beginning of the period 546,000 69,000 --------------------- --------------------- Cash and cash equivalents at the end of the period $ 263,000 $ 237,000 ===================== =====================
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, 1997. 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, 1998, the results of its operations for the six months ended June 30, 1998 and its cash flows for the six months then ended. 3. The results of operations for the six months ended June 30, 1998 are not necessarily indicative of the results expected for the full year. 4. On June 1, 1998, the Partnership paid down its mortgage note with a third party lender by $11,641,000. The payment was made from cash reserves and an $11,000,000 loan from Public Storage, Inc. The loan from Public Storage, Inc. bears interest at the fixed rate of 7.3% and matures June 1999. The loan calls for monthly payments of interest only. Principal may be paid at anytime without penalty. Public Storage, Inc. has also provided the Partnership with options to extend the loan term through June 2003. 6 PUBLIC STORAGE PROPERTIES, LTD., MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- THREE AND SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO THREE AND SIX MONTHS ENDED JUNE 30, 1997: The Partnership's net income for the six months ended June 30, 1998 was $781,000 compared to $627,000 for the six months ended June 30, 1997, representing an increase of $154,000 or 25%. The Partnership's net income for the three months ended June 30, 1998 was $421,000 compared to $321,000 for the three months ended June 30, 1997, representing an increase of $100,000 or 31%. These increases are primarily a result of increased operating results at the Partnership's real estate facilities combined with a decrease in interest expense resulting from a lower notes payable balance in 1998 compared to 1997. Rental income for the six months ended June 30, 1998 was $2,267,000 compared to $2,101,000 for the six months ended June 30, 1997 representing an increase of $166,000 or 8%. Rental income for the three months ended June 30, 1998 was $1,160,000 compared to $1,051,000 for the three months ended June 30, 1997, representing an increase of $109,000 or 10%. These increases are primarily attributable to higher rental rates at the Partnership's mini-warehouse facilities. The weighted average occupancy levels at the mini-warehouse facilities was 94% for the six months ended June 30, 1998 and 1997. Realized rent for the six months ended June 30, 1998 increased to $.79 per occupied square foot from $.74 per occupied square foot for the six months ended June 30, 1997. Cost of operations (including management fees paid to affiliate) for the six months ended June 30, 1998 was $656,000 compared to $602,000 for the six months ended June 30, 1997, representing an increase of $54,000 or 9%. This increase is mainly attributable to increases in management fees and advertising and promotion expenses. Cost of operations (including management fees paid to affiliate) for the three months ended June 30, 1998 was $328,000 compared to $283,000 for the three months ended June 30, 1997, representing an increase of $45,000 or 16%. This increase is mainly attributable to an increase in repairs and maintenance, management fees and advertising and promotion expenses. Interest expense decreased $64,000 to $574,000 in the six months ended June 30, 1998 from $638,000 in the same period in 1997. This decrease is mainly attributable to lower outstanding principal balances on the Partnership's notes payable. 7 LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- Cash generated from operations ($1,111,000 for the six months ended June 30, 1998) has been sufficient to meet all current obligations of the Partnership. 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. On June 1, 1998, the Partnership paid down its mortgage note with a third party lender by $11,641,000. The payment was made from cash reserves and an $11,000,000 loan from Public Storage, Inc. The loan from Public Storage, Inc. bears interest at the fixed rate of 7.3% and matures June 1999. The loan calls for monthly payments of interest only. Principal may be paid at anytime without penalty. Public Storage, Inc. has also provided the Partnership with options to extend the loan term through June 2003. 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: August 12, 1998 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 FDS --
5 0000202953 Public Storage Properties, Ltd. 1 US 6-MOS Dec-31-1998 Jan-01-1998 Jun-30-1998 1 263,000 0 30,000 0 0 426,000 10,748,000 (5,728,000) 5,446,000 226,000 12,935,000 0 0 0 (7,715,000) 5,446,000 0 2,282,000 0 656,000 271,000 0 574,000 781,000 0 781,000 0 0 0 781,000 38.65 38.65
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