-----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, RQf1DEyOhQPfPfYj4BQlGowF6q1thylBsd+2uvXuDPPn3OO2C47StvTclYskVkYF ZGmmZmHR42wsA006mkGWFw== 0000870541-97-000003.txt : 19970813 0000870541-97-000003.hdr.sgml : 19970813 ACCESSION NUMBER: 0000870541-97-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970812 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: 97656776 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, 1997 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 Ave. 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, 1997 and December 31, 1996 2 Condensed statements of income for three and six months ended June 30, 1997 and 1996 3 Condensed statement of partners' deficit for the six months ended June 30, 1997 4 Condensed statements of cash flows for the six months ended June 30, 1997 and 1996 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, 1997 1996 -------------- -------------- (Unaudited) ASSETS ------ Cash and cash equivalents $ 368,000 $ 163,000 Rent and other receivables 39,000 17,000 Real estate facilities, at cost: Building, land improvements and equipment 3,402,000 3,360,000 Land 1,267,000 1,267,000 -------------- -------------- 4,669,000 4,627,000 Less accumulated depreciation (2,524,000) (2,434,000) -------------- -------------- 2,145,000 2,193,000 -------------- -------------- Other assets 183,000 193,000 -------------- -------------- Total assets $ 2,735,000 $ 2,566,000 ============== ============== LIABILITIES AND PARTNERS' DEFICIT --------------------------------- Accounts payable $ 3,000 $ 4,000 Deferred revenue 58,000 66,000 Note payable 7,738,000 7,984,000 Partners' deficit: Limited partners' deficit, $500 per unit, 10,000 units authorized, 9,890 issued and outstanding (3,756,000) (4,071,000) General partner's deficit (1,308,000) (1,417,000) -------------- -------------- Total partners' deficit (5,064,000) (5,488,000) -------------- -------------- Total liabilities and partners' deficit $ 2,735,000 $ 2,566,000 ============== ==============
See accompanying notes. 2 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended June 30, June 30, ------------------------------- ------------------------------- 1997 1996 1997 1996 -------------- -------------- --------------- ------------- REVENUES: Rental income $ 594,000 $ 560,000 $ 1,187,000 $ 1,127,000 Other income 4,000 1,000 7,000 1,000 -------------- -------------- --------------- ------------- 598,000 561,000 1,194,000 1,128,000 -------------- -------------- --------------- ------------- COSTS AND EXPENSES: Cost of operations 111,000 114,000 227,000 231,000 Management fees paid to affiliate 36,000 31,000 71,000 62,000 Depreciation 45,000 41,000 90,000 81,000 Administrative 13,000 10,000 22,000 18,000 Interest expense 179,000 222,000 360,000 440,000 -------------- -------------- --------------- ------------- 384,000 418,000 770,000 832,000 -------------- -------------- --------------- ------------- NET INCOME $ 214,000 $ 143,000 $ 424,000 $ 296,000 ============== ============== =============== ============= Limited partners' share of net income ($42.37 per unit in 1997 and $29.63 per unit in 1996) $ 419,000 $ 293,000 General partner's share of net income 5,000 3,000 --------------- ------------- $ 424,000 $ 296,000 =============== =============
See accompanying notes. 3 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENT OF PARTNERS' DEFICIT (UNAUDITED)
Total Limited General Partners' Partners Partner Deficit ------------- ------------- ------------- Balance at December 31, 1996 $(4,071,000) $(1,417,000) $(5,488,000) Net income 419,000 5,000 424,000 Equity transfer (104,000) 104,000 - ------------- ------------- ------------- Balance at June 30, 1997 $(3,756,000) $(1,308,000) $(5,064,000) ============= ============= =============
See accompanying notes. 4 PUBLIC STORAGE PARTNERS II, LTD. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, ----------------------------------------- 1997 1996 ----------------- ------------------ Cash flows from operating activities: Net income $ 424,000 $ 296,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 90,000 81,000 (Increase) decrease in rent and other receivables (22,000) 10,000 Amortization of prepaid loan fees 5,000 5,000 Amortization of prepaid management fees - 62,000 Decrease (increase) in other assets 5,000 (40,000) Decrease in accounts payable (1,000) (15,000) Decrease in deferred revenue (8,000) (8,000) ----------------- ------------------ Total adjustments 69,000 95,000 ----------------- ------------------ Net cash provided by operating activities 493,000 391,000 ----------------- ------------------ Cash flows from investing activities: Additions to real estate facilities (42,000) (39,000) ----------------- ------------------ Net cash used in investing activities (42,000) (39,000) ----------------- ------------------ Cash flows from financing activities: Principal payments on note payable (246,000) (295,000) ----------------- ------------------ Net cash used in financing activities (246,000) (295,000) ----------------- ------------------ Net increase in cash and cash equivalents 205,000 57,000 Cash and cash equivalents at beginning of period 163,000 - ----------------- ------------------ Cash and cash equivalents at end of period $ 368,000 $ 57,000 ================= ==================
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, 1996. 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, 1997, the results of its operations for the three and six months ended June 30, 1997 and 1996 and its cash flows for the six months then ended. 3. The results of operations for the three and six months ended June 30, 1997 are not necessarily indicative of the results expected for the full year. 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, 1997 COMPARED TO THREE AND SIX MONTHS ENDED JUNE 30, 1996: The Partnership's net income for the six months ended June 30, 1997 was $424,000 compared to $296,000 for the six months ended June 30, 1996, representing an increase of $128,000 or 43%. The Partnership's net income for the three months ended June 30, 1997 was $214,000 compared to $143,000 for the three months ended June 30, 1996, representing an increase of $71,000 or 50%. 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 for the six months ended June 30, 1997 was $1,187,000 compared to $1,127,000 for the six months ended June 30, 1996, representing an increase of $60,000 or 5%. Rental income for the three months ended June 30, 1997 was $594,000 compared to $560,000 for the three months ended June 30, 1996, representing an increase of $34,000 or 6%. These increases are primarily attributable to higher rental rates and occupancy levels at the Partnership's mini-warehouse facilities. The weighted average occupancy levels at the mini-warehouse facilities were 88% and 86% for the six months ended June 30, 1997 and 1996, respectively. Realized rent for the six months ended June 30, 1997 increased to $.90 per occupied square foot from $.87 per occupied square foot for the six months ended June 30, 1996. Cost of operations (including management fees paid to affiliate) for the six months ended June 30, 1997 was $298,000 compared to $293,000 for the six months ended June 30, 1996, representing an increase of $5,000 or 2%. Cost of operations (including management fees paid to affiliate) for the three months ended June 30, 1997 was $147,000 compared to $145,000 for the three months ended June 30, 1996, representing an increase of $2,000 or 1%. This increase is mainly attributable to an increase in management fees. In 1995, the Partnership prepaid eight months of 1996 management fees on its mini-warehouse operations, discounted at the rate of 14% effective rate to compensate for early payment. As a result, management fee expense for the six months ended June 30, 1996 was $5,000 lower than it would have been under the customary undiscounted fee structure. 7 Interest expense decreased $80,000 to $360,000 in the six months ended June 30, 1997 from $440,000 in the same period in 1996. This decrease is mainly attributable to lower outstanding principal balance on the Partnership's note payable. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- Cash generated from operations ($493,000 for the six months ended June 30, 1997) 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 make principal repayments that commenced in 1990 and will continue through November 2002, at which time the remaining principal 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 12, 1997 PUBLIC STORAGE PARTNERS II, 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 0000275915 PUBLIC STORAGE PARTNERS II, LTD. 1 US 6-Mos Dec-31-1997 Jan-01-1997 Jun-30-1997 1 368,000 0 39,000 0 0 407,000 4,669,000 (2,524,000) 2,735,000 61,000 7,738,000 0 0 0 (5,064,000) 2,735,000 0 1,194,000 0 298,000 112,000 0 360,000 424,000 0 424,000 0 0 0 424,000 42.37 42.37
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