-----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, S18GaauJUMF4icTeoixEGM/Vok9E8yJbOl73mBJQ9oN9lkrji8yd2Ca0BvL4HWD1 j9AFc/xZHB2FLCZjMRPc/g== 0000783287-96-000006.txt : 19960514 0000783287-96-000006.hdr.sgml : 19960514 ACCESSION NUMBER: 0000783287-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC STORAGE PROPERTIES LTD CENTRAL INDEX KEY: 0000202953 STANDARD INDUSTRIAL CLASSIFICATION: TRUCKING & COURIER SERVICES (NO AIR) [4210] 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: 96561803 BUSINESS ADDRESS: STREET 1: 600 N BRAND BLVD CITY: GLENDALE STATE: CA ZIP: 91203 BUSINESS PHONE: 8182448080 MAIL ADDRESS: STREET 1: 600 NORTH BRAND BLVD STREET 2: SUITE 300 CITY: GLENDALE STATE: CA ZIP: 91203 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 March 31, 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 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 March 31, 1996 and December 31, 1995 .................................................... 2 Condensed statements of income for the three months ended March 31, 1996 and 1995 ..................................... 3 Condensed statement of partners' deficit for the three months ended March 31, 1996 ........................................ 4 Condensed statements of cash flows for the three months ended March 31, 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 March 31, December31, 1996 1995 ----------- ----------- (unaudited) ASSETS ------ Cash and cash equivalents $ 321,000 $ 89,000 Rent and other receivables 34,000 42,000 Real estate facilities at cost: Building, land improvements and equipment 7,496,000 7,493,000 Land 2,511,000 2,511,000 10,007,000 10,004,000 Less accumulated depreciation (4,741,000) (4,644,000) ----------- ----------- 5,266,000 5,360,000 ----------- ----------- Other assets 303,000 354,000 ----------- ----------- Total assets $ 5,924,000 $ 5,845,000 ============ ============ LIABILITIES AND PARTNERS' DEFICIT --------------------------------- Accounts payable $ 71,000 $ 77,000 Deferred revenue 114,000 132,000 Due to affiliate 130,000 130,000 Notes payable 16,194,000 16,351,000 Partners' deficit: Limited partners' deficit, $500 per unit, 20,000 units authorized, issued and outstanding (7,859,000) (8,052,000) General partners' deficit (2,726,000) (2,793,000) Total partners' deficit (10,585,000) (10,845,000) ----------- ----------- Total liabilities and partners' deficit $ 5,924,000 $ 5,845,000 ============ ============ See accompanying notes. 2 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, --------------------------------- 1996 1995 ------------ ------------ REVENUES: Rental income $ 964,000 $ 934,000 Other income - 10,000 ------------ ------------ 964,000 944,000 ------------ ------------ COSTS AND EXPENSES: Cost of operations 231,000 238,000 Management fees paid to affiliate 52,000 56,000 Depreciation expense 97,000 81,000 Administrative 9,000 12,000 Environmental costs - 22,000 Interest expense 315,000 388,000 ------------ ------------ 704,000 797,000 ------------ ------------ NET INCOME $ 260,000 $ 147,000 ============ ============ Limited partners' share of net income ($12.85 per unit in 1996 and $9.20 per unit in 1995) $ 257,000 $ 145,000 General partners' share of net income 3,000 2,000 ------------ ------------ $ 260,000 $ 147,000 ============ ============ See accompanying notes. 3 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENT OF PARTNERS' DEFICIT (UNAUDITED) Limited General Partners Partners Total ------------ ------------ ------------- Balance at December 31, 1995 $ (8,052,000) $(2,793,000) $(10,845,000) Net Income 257,000 3,000 260,000 Equity transfer (64,000) 64,000 - ------------ ------------ ------------- Balance at March 31, 1996 $(7,859,000) $(2,726,000) $(10,585,000) ============ ============ ============= See accompanying notes. 4 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, --------------------------------- 1996 1995 ------------ ------------ Cash flows from operating activities: Net income $ 260,000 $ 147,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 97,000 81,000 Decrease (increase) in rent and other receivables 8,000 (15,000) Amortization of prepaid management fees 52,000 - Decrease in other assets (1,000) 8,000 (Decrease) increase in accounts payable (6,000) 207,000 Decrease in deferred revenue (18,000) (10,000) ------------ ------------ Total adjustments 132,000 271,000 ------------ ------------ Net cash provided by operating activities 392,000 418,000 ------------ ------------ Cash flows from investing activities: Additions to real estate facilities (3,000) (88,000) ------------ ------------ Net cash used in investing activities (3,000) (88,000) ------------ ------------ Cash flows from financing activities: Principal payments on note payable (157,000) (257,000) ------------ ------------ Net cash used in financing activities (157,000) (257,000) ------------ ------------ Net increase (decrease) in cash and cash equivalents 232,000 (73,000) Cash and cash equivalents at the beginning of the period 89,000 162,000 ------------ ------------ Cash and cash equivalents at the end of the period $ 321,000 $ 235,000 =========== ============ Supplemental schedule of non-cash investing and financing activities: Increase in fair value of marketable securities - $ (326,000) =========== ============ Unrealized gain on marketable securities - 326,000 =========== ============ 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 March 31, 1996, the results of its operations for the three months ended March 31, 1996 and its cash flows for the three months then ended. 3. The results of operations for the three months ended March 31, 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 total cost of $137,000. The Partnership expensed $52,000 of the 1996 prepaid management fees for the three months ended March 31, 1996. The balance of prepaid management fees, $85,000, is included in other assets in the Balance Sheet at March 31, 1996. 5. Certain prior year amounts have been reclassified to conform with the 1996 classifications. 6 PUBLIC STORAGE PROPERTIES, LTD., MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- Three months ended March 31, 1996 compared to three months ended March 31, 1995: The Partnership's net income for the three months ended March 31, 1996 was $260,000 compared to $147,000 for the three months ended March 31, 1995, representing an increase of $113,000. This increase is primarily a result of increased operating results at the Partnership's real estate facilities and a decrease in interest expense resulting from a lower note payable balance in 1996 compared to 1995. Rental income was $964,000 compared to $934,000 for the three months ended March 31, 1996 and 1995, respectively, representing an increase of $30,000. This increase is primarily attributable to an increase of approximately 3% in rental rates at the Partnership's mini-warehouse facilities. The weighted average occupancy levels at the mini-warehouse facilities were 89% and 90% for the three months ended March 31, 1996 and 1995, respectively. Other income decreased $10,000 in the three months ended March 31, 1996 compared to the same period in 1995 as a result of a decrease in dividend income earned on its marketable securities sold in November 1995. Cost of operations (including management fees paid to an affiliate) decreased $11,000 to $283,000 from $294,000 for the three months ended March 31, 1996 and 1995, respectively. This decrease is mainly attributable to a decrease in management fees paid to an affiliate described below. 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 at the rate of 14% per year to compensate for early payment. During the three month period ended March 31, 1996, the Partnership expensed $52,000 of prepaid management fees. 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 $6,000 in management fees, based on the management fees that would have been payable on rental income generated in the three months ended March 31, 1996 compared to the amount prepaid. 7 Interest expense decreased $73,000 to $315,000 from $388,000 for the three months ended March 31, 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 ($392,000 for the three months ended March 31, 1996) has been sufficient to meet all current obligations of the Partnership. For the three months ended March 31, 1995, the Partnership recognized $9,000 in dividends from 39,911 shares of common stock (marketable securities) held in Public Storage, Inc. ("PSI"), 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: May 13, 1996 PUBLIC STORAGE PROPERTIES, LTD. BY: Public Storage, Inc. General Partner BY: /s/Ronald L. Havner, Jr. ------------------------- Ronald L. Havner, Jr. Vice President and Chief Financial Officer 9 EX-27 2 FDS -- ARTICLE 5 OF REGULATION S-X WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 0000202953 PUBLIC STORAGE PROPERTIES, LTD. US 3-MOS Dec-31-1995 Jan-01-1996 Mar-31-1996 321,000 0 337,000 0 0 658,000 10,007,000 (4,741,000) 5,924,000 315,000 16,194,000 0 0 0 (10,585,000) 5,924,000 0 964,000 0 380,000 9,000 0 315,000 260,000 0 260,000 0 0 0 260,000 12.85 12.85
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