-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, liMgUx3Dt85jZVOjGWoUxXzITHxAIw13Zz3y4eVIq5IDa302w6so1DUOPr7CB7CP 460T/ax0o0+80PZkgicqrw== 0000898430-95-000678.txt : 19950505 0000898430-95-000678.hdr.sgml : 19950505 ACCESSION NUMBER: 0000898430-95-000678 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950503 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC STORAGE PROPERTIES LTD CENTRAL INDEX KEY: 0000202953 STANDARD INDUSTRIAL CLASSIFICATION: 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: 95533959 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 FORM 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, 1995 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) 600 N. Brand Boulevard Glendale, California 91203 - - ---------------------------------------------- ------------------------ (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, 1995 and December 31, 1994 2 Condensed statements of operations for the three months ended March 31, 1995 and 1994 3 Condensed statement of partners' deficit for the three months ended March 31, 1995 4 Condensed statements of cash flows for the three months ended March 31, 1995 and 1994 5 Notes to condensed financial statements 6-7 Management's discussion and analysis of financial condition and results of operations 8-9 PART II. OTHER INFORMATION 10
PUBLIC STORAGE PROPERTIES, LTD. CONDENSED BALANCE SHEETS
March 31, December 31, 1995 1994 --------- ------------ ASSETS ------ Cash and cash equivalents $ 235,000 $ 162,000 Marketable securities of affiliate at market value (cost of $347,000) 673,000 574,000 Rent and other receivables 78,000 63,000 Real estate facilities at cost: Building, land improvements and equipment 7,237,000 7,149,000 Land 2,511,000 2,511,000 ----------- ----------- 9,748,000 9,660,000 Less accumulated depreciation (4,369,000) (4,288,000) ----------- ----------- 5,379,000 5,372,000 ----------- ----------- Other assets 239,000 247,000 ----------- ----------- Total assets $ 6,604,000 $ 6,418,000 =========== =========== LIABILITIES AND PARTNERS' DEFICIT --------------------------------- Accounts payable $ 237,000 $ 30,000 Deferred revenue 126,000 136,000 Notes payable 17,738,000 17,995,000 Partners' deficit: Limited partners' deficit, $500 per unit, 10,000 units authorized, 9,890 issued and outstanding (8,779,000) (8,888,000) General partners' deficit (3,044,000) (3,082,000) Unrealized gain on marketable securities 326,000 227,000 ------------ ------------ Total partners' deficit (11,497,000) (11,743,000) ------------ ------------ Total liabilities and partners' deficit $ 6,604,000 $ 6,418,000 ============ ============
See accompanying notes. 2 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended March 31, --------------------- 1995 1994 --------- --------- REVENUES: Rental income $934,000 $876,000 Interest income and other income (including dividends from marketable securities of affiliate in 1995) 10,000 26,000 -------- -------- 944,000 902,000 -------- -------- COSTS AND EXPENSES: Cost of operations 238,000 207,000 Management fees paid to affiliate 56,000 53,000 Depreciation and amortization 81,000 74,000 Administrative 34,000 15,000 Interest expense 388,000 439,000 -------- -------- 797,000 788,000 -------- -------- NET INCOME $147,000 $114,000 ======== ======== Limited partners' share of net income ($9.20 per unit in 1995 and $5.65 per unit in 1994) $145,000 $113,000 General partners' share of net income 2,000 1,000 -------- -------- $147,000 $114,000 ======== ========
See accompanying notes. 3 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENT OF PARTNERS' DEFICIT (UNAUDITED)
Unrealized Gain on Total Limited General Marketable Partners' Partners Partners Securities Equity ------------ ------------- ---------- ------------- Balance at December 31, 1994 $(8,888,000) $(3,082,000) $227,000 $(11,743,000) Unrealized gain on marketable Securities - - 99,000 99,000 Net Income 145,000 2,000 - 147,000 Equity transfer (36,000) 36,000 - - ----------- ----------- -------- ------------ Balance at March 31, 1995 $(8,779,000) $(3,044,000) $326,000 $(11,497,000) =========== =========== ======== ============
See accompanying notes. 4 PUBLIC STORAGE PROPERTIES, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED March 31, ------------------------ 1995 1994 ----------- ---------- Cash flows from operating activities: Net income $ 147,000 $114,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 81,000 74,000 Increase in rent and other receivables (15,000) (47,000) Decrease in other assets 8,000 7,000 Decrease in accounts payable 207,000 (9,000) Decrease in deferred revenue (10,000) (12,000) --------- -------- Total adjustments 271,000 13,000 --------- -------- Net cash provided by operating activities 418,000 127,000 --------- -------- Cash flows from investing activities: Additions to real estate facilities (88,000) (28,000) --------- -------- Net cash used in investing activities (88,000) (28,000) --------- -------- Cash flows from financing activities: Principal payments on note payable (257,000) (99,000) --------- -------- Net cash used in financing activities (257,000) (99,000) --------- -------- Net decrease in cash and cash equivalents (73,000) - Cash and cash equivalents at the beginning of the period 162,000 136,000 --------- -------- Cash and cash equivalents at the end of the period $ 235,000 $136,000 ========= ========= 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, 1994. 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, 1995, the results of its operations for the three months ended March 31, 1995 and its cash flows for the three months then ended. 3. The results of operations for the three months ended March 31, 1995 are not necessarily indicative of the results expected for the full year. 4. Marketable securities at March 31, 1995 consist of 39,911 common shares of Storage Equities, Inc. ("SEI"), a publicly traded real estate investment trust, whose investment advisor is an affiliate of Public Storage, Inc. (a general partner of the Partnership). SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities." requires marketable securities to be classified as trading or available for sale. The Partnership has designated its portfolio of marketable securities as available for sale. Accordingly, at March 31, 1995, the Partnership has recorded the marketable securities at fair value and, based upon the closing quoted price of the securities at March 31, 1995, recorded a corresponding unrealized gain totaling $326,000 as a credit to Partnership equity. 6 5. Substantially all of the Partnership's facilities were acquired prior to the time that it was customary to conduct environmental investigations in connection with property acquisitions. During the first quarter of 1995, the Partnership commenced environmental assessments on its properties. The result of those assessments have not been completed. The Partnership is not presently aware of any environmental matters with respect to any of its properties which would have a materially adverse effect on the Company's financial position. Included in administrative expenses on the statements of operations for three months ended March 31, 1995 is approximately $24,000 in cost incurred in connection with the environmental assessments. 7 PUBLIC STORAGE PROPERTIES, LTD., MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS --------------------- THREE MONTHS ENDED MARCH 31, 1995 COMPARED TO THREE MONTHS ENDED MARCH 31, 1994: The Partnership's net income for the three months ended March 31, 1995 was $147,000 compared to $114,000 for the three months ended March 31, 1994, representing an increase of $33,000. 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 1995 compared to 1994. Rental income was $934,000 compared to $876,000 for the three months ended March 31, 1995 and 1994, respectively, representing an increase of $58,000. This increase is primarily attributable to an increase in occupancy levels at the Partnership's mini-warehouse facilities. The weighted average occupancy levels at the mini-warehouse facilities were 90% and 84% for the three months ended March 31, 1995 and 1994, respectively. Other income decreased $16,000 in the three months ended March 31, 1995 compared to the same period in 1994 as the result of less dividend income earned on marketable securities of affiliate. This decrease is due to a decrease in the number of shares held in 1995 compared to 1994. Cost of operations (including management fees paid to an affiliate) increased $34,000 to $294,000 from $260,000 for the three months ended March 31, 1995 and 1994, respectively. This increase is mainly attributable to increases in payroll and management fees paid to an affiliate. Payroll increased in 1995 compared to 1994 due to an increase in incentive payroll attributable to an increase in property performance. Administrative expenses increased $19,000 for the three months ended March 31, 1995 compared to the same period in 1994 primarily as the result of cost incurred on environmental assessments on the Partnership's properties. Substantially all of the Partnership's facilities were acquired prior to the time that it was customary to conduct extensive environmental investigations in connection with the property acquisitions. During the first quarter of 1995, the Partnership commenced environmental assessments on its properties. The result of those assessments have not been completed. However, the Partnership is not presently aware of 8 any environmental matters with respect to any of its properties which would have a materially adverse effect on the Company's financial position. LIQUIDITY AND CAPITAL RESOURCES ------------------------------- Cash generated from operations ($418,000 for the three months ended March 31, 1995) has been sufficient to meet all current obligations of the Partnership. At March 31, 1995 the Partnership held 39,911 shares of common stock (marketable securities) with a fair value totaling $673,000 (cost basis of $326,000 at March 31, 1995) in Storage Equities, Inc. ("SEI"), a publicly traded real estate investment trust, whose investment advisor is an affiliate of Public Storage, Inc. (a general partner of the Partnership). The Partnership recognized $9,000 in dividends for the three months ended March 31, 1995 and included this in other income on the condensed Statements of Operations. 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. Future distribution rates may be adjusted to levels supported by operating cash flow after capital improvements and scheduled debt service. 9 PART II. OTHER INFORMATION ITEMS 1 through 6 are inapplicable. 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: April 28, 1995 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 (principal accounting and financial officer) 10 -----END PRIVACY-ENHANCED MESSAGE-----