-----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, JZRyXDsYDu28DXnS8Vc7agke9Bf6XalWQCfSVjf9NraKsAH1q3Q7G6VM8yv87BkX 1Sr8zBgONCp/O3eXLvoK2w== 0000870376-96-000014.txt : 19960814 0000870376-96-000014.hdr.sgml : 19960814 ACCESSION NUMBER: 0000870376-96-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC STORAGE PARTNERS II LTD CENTRAL INDEX KEY: 0000275915 STANDARD INDUSTRIAL CLASSIFICATION: LESSORS OF REAL PROPERTY, NEC [6519] IRS NUMBER: 953146963 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-08676 FILM NUMBER: 96609673 BUSINESS ADDRESS: STREET 1: 701 WESTERN AVE STREET 2: SUITE 200 CITY: GLENDALE STATE: CA ZIP: 91201 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, 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 0-8676 ------ PUBLIC STORAGE PARTNERS II, LTD. ---------------------------------------------------- (Exact name of registrant as specified in its charter) California 95-3146963 - -------------------------------- ------------------------ (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 June 30, 1996 and December 31, 1995 2 Condensed statements of operations for the three and six months ended June 30, 1996 and 1995 3 Condensed statement of partners' deficit for the six months ended June 30, 1996 4 Condensed statements of cash flows for the six months ended June 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 PARTNERS II, LTD. CONDENSED BALANCE SHEETS
June 30, December 31, 1996 1995 -------------------- --------------------- (Unaudited) ASSETS Cash and cash equivalents $ 57,000 $ - Rent and other receivables 13,000 23,000 Real estate facilities, at cost: Buildings and equipment 3,320,000 3,281,000 Land 1,267,000 1,267,000 -------------------- --------------------- 4,587,000 4,548,000 Less accumulated depreciation (2,346,000) (2,265,000) -------------------- --------------------- 2,241,000 2,283,000 -------------------- --------------------- Other assets 252,000 279,000 -------------------- --------------------- Total assets $ 2,563,000 $ 2,585,000 ==================== ===================== LIABILITIES AND PARTNERS' EQUITY Accounts payable $ 20,000 $ 35,000 Deferred revenue 74,000 66,000 Notes payable 8,307,000 8,602,000 Partners' deficit: Limited partners' deficit, $500 per unit, 10,000 units authorized, 9,890 issued and outstanding (4,324,000) (4,544,000) General partners' deficit (1,506,000) (1,582,000) -------------------- --------------------- Total partners' deficit (5,830,000) (6,126,000) -------------------- --------------------- Total liabilities and partners' deficit $ 2,563,000 $ 2,585,000 ==================== =====================
See accompanying notes. 2 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30, --------------------------------------- ------------------------------------- 1996 1995 1996 1995 ------------------ ------------------ ----------------- ----------------- (Restated) REVENUE: Rental income $ 560,000 $ 558,000 $ 1,127,000 $ 1,088,000 Dividends and other income (including dividends from marketable securities of affiliate in 1995) 1,000 2,000 1,000 5,000 ------------------ ------------------ ----------------- ----------------- 561,000 560,000 1,128,000 1,093,000 ------------------ ------------------ ----------------- ----------------- COSTS AND EXPENSES: Cost of operations 114,000 97,000 231,000 208,000 Management fees paid to affiliate 31,000 34,000 62,000 66,000 Depreciation 41,000 36,000 81,000 72,000 Administrative 10,000 9,000 18,000 18,000 Environmental cost - - - 10,000 Interest expense 222,000 239,000 440,000 482,000 ------------------ ------------------ ----------------- ----------------- 418,000 415,000 832,000 856,000 ------------------ ------------------ ----------------- ----------------- NET INCOME $ 143,000 $ 145,000 $ 296,000 $ 237,000 ================== ================== ================= ================= Limited partners' share of net income ($29.63 per unit in 1996 and $23.76 per unit in 1995) $ 293,000 $ 235,000 General partners' share of net income 3,000 2,000 ---------------- ----------------- $ 296,000 $ 237,000 ================= =================
See accompanying notes. 3 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENT OF PARTNERS' DEFICIT (UNAUDITED) Total Limited General Partners' Partners Partners Deficit ------------- ------------ ----------- Balance at December 31, 1995 ($4,544,000) ($1,582,000) ($6,126,000) Net income 293,000 3,000 296,000 Equity transfer (73,000) 73,000 - ------------- ------------ ----------- Balance at June 30, 1996 ($4,324,000) ($1,506,000) ($5,830,000) ============= ============ =========== See accompanying notes. 4 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, ------------------------------------------- 1996 1995 -------------------- ------------------- (restated) Cash flows from operating activities: Net income $ 296,000 $ 237,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 81,000 72,000 Decrease (increase) in rent and other receivables 10,000 (6,000) Decrease in prepaid loan fees 5,000 5,000 Amortization of prepaid management fees 62,000 -- Increase in other assets (40,000) (1,000) Decrease in accounts payable (15,000) (9,000) (Decrease) increase in deferred revenue (8,000) 3,000 --------- --------- Total adjustments 95,000 64,000 --------- --------- Net cash provided by operating activities 391,000 301,000 --------- --------- Cash flows from investing activities: Additions to real estate facilities (39,000) (3,000) --------- --------- Net cash used in investing activities (39,000) (3,000) --------- --------- Cash flows from financing activities: Principal payments on mortgage notes payable (295,000) (262,000) --------- --------- Net cash used in financing activities (295,000) (262,000) --------- --------- Net increase in cash and cash equivalents 57,000 36,000 Cash and cash equivalents at the beginning of the period -- 159,000 --------- --------- Cash and cash equivalents at the end of the period $ 57,000 $ 195,000 ========= ========= Supplemental schedule of noncash investing and financing activities: Increase in fair value of marketable securities $ -- $ (10,000) ========= ========= Unrealized gain on marketable securities -- 10,000 ========= =========
See accompanying notes. 5 PUBLIC STORAGE PARTNERS II, 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 June 30, 1996, the results of its operations for the three and six months ended June 30, 1996 and 1995 and its cash flows for the six months then ended. 3. The results of operations for the three and six months ended June 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 total cost of $83,000. The Partnership expensed $62,000 of the prepaid management fees for the six months ended June 30, 1996. The balance of prepaid management fees, $21,000, is included in other assets in the Balance Sheet at June 30, 1996. 5. Certain prior year amounts have been reclassified to conform with the 1996 presentation. 6 PUBLIC STORAGE PARTNERS II, LTD. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- Three and six months ended June 30, 1996 compared to three and six months ended June 30, 1995: The Partnership's net income for the six months ended June 30, 1996 was $296,000 compared to $237,000 for the six months ended June 30, 1995, representing an increase of $59,000, or 25%. The Partnership's net income for the three months ended June 30, 1996 was $143,000 compared to $145,000 for the three months ended June 30, 1995, representing a decrease of $2,000. These increases are primarily a result of increased operating results at the Partnership's real estate facilities combined with a decrease in interest expense. Rental income was $1,127,000 compared to $1,088,000 for the six months ended June 30, 1996 and 1995, respectively, representing an increase of $39,000 or 4%. Rental income was $560,000 compared to $558,000 for the three months ended June 30, 1996 and 1995, respectively, representing an increase of $2,000. The increase for the six months ended 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 86% and 82% for the six months ended June 30, 1996 and 1995, respectively. Realized rent for the six months ended June 30, 1996 remained constant at $.87 per occupied square foot for both six month periods ended June 30, 1996 and 1995. Cost of operations (including management fees paid to an affiliate) increased $19,000 or 7% to $293,000 from $274,000 for the six months ended June 30, 1996 and 1995, respectively. This increase is mainly attributable to increases in repairs and maintenance, payroll, and advertising expenses. Cost of operations (including management fees paid to an affiliate) increased $14,000 or 11% to $145,000 from $131,000 for the three months ended June 30, 1996 and 1995 respectively. This increase is mainly attributable to an increase in repairs and maintenance expense. 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 six month period ended June 30, 1996, the Partnership expensed $62,000 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 $5,000 in management fees, based on the management fees that would have been payable on rental income generated in the six months ended June 30, 1996 compared to the amount prepaid. 7 Interest expense decreased $42,000 to $440,000 from $482,000 for the six months ended June 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 $10,000 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 ($391,000 for the six months ended June 30, 1996) has been sufficient to meet all current obligations of the Partnership, including principal repayments of the Partnership's notes payable. In the fourth quarter of 1990, quarterly distributions were discontinued to enable the Partnership to make principal repayments that commenced in 1990 and will continue through 1996, at which time the remaining principal balance is due. 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 13, 1996 PUBLIC STORAGE PARTNERS II, 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 --
5 0000275915 PUBLIC STORAGE PARTNERS II, LTD. 1 US 6-MOS DEC-31-1996 JUN-30-1996 1 57,000 0 13,000 0 0 70,000 4,587,000 (2,346,000) 2,563,000 86,000 8,307,000 0 0 0 (5,830,000) 2,563,000 0 1,128,000 0 293,000 99,000 0 440,000 296,000 0 296,000 0 0 0 296,000 29.63 29.63
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