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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 0-8667
------
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
-- --
<PAGE>
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Condensed balance sheets at June 30, 1997
and December 31, 1996 2
Condensed statements of income for the 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
<PAGE>
<TABLE>
<CAPTION>
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED BALANCE SHEETS
June 30, December 31,
1997 1996
--------------- ---------------
(Unaudited)
ASSETS
------
<S> <C> <C>
Cash and cash equivalents $ 237,000 $ 69,000
Rent and other receivables 78,000 48,000
Real estate facilities, at cost:
Building, land improvements and equipment 7,847,000 7,721,000
Land 2,511,000 2,511,000
--------------- ---------------
10,358,000 10,232,000
Less accumulated depreciation (5,260,000) (5,046,000)
--------------- ---------------
5,098,000 5,186,000
--------------- ---------------
Other assets 173,000 200,000
--------------- ---------------
Total assets $ 5,586,000 $ 5,503,000
=============== ===============
LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
Accounts payable $ 12,000 $ 5,000
Deferred revenue 123,000 118,000
Notes payable 14,661,000 15,217,000
Partners' deficit:
Limited partners' deficit, $500 per unit, 20,000 units
authorized, issued and outstanding (6,838,000) (7,304,000)
General partners' deficit (2,372,000) (2,533,000)
--------------- ---------------
Total partners' deficit (9,210,000) (9,837,000)
--------------- ---------------
Total liabilities and partners' deficit $ 5,586,000 $ 5,503,000
=============== ===============
</TABLE>
See accompanying notes.
2
<PAGE>
<TABLE>
<CAPTION>
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------ ------------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
REVENUES:
<S> <C> <C> <C> <C>
Rental income $ 1,051,000 $ 984,000 $ 2,101,000 $ 1,948,000
Other income 3,000 2,000 5,000 2,000
------------ ------------ ------------ ------------
1,054,000 986,000 2,106,000 1,950,000
------------ ------------ ------------ ------------
COSTS AND EXPENSES:
Cost of operations 220,000 236,000 476,000 467,000
Management fees paid to affiliate 63,000 51,000 126,000 103,000
Depreciation 107,000 98,000 214,000 195,000
Administrative 15,000 12,000 25,000 21,000
Interest expense 328,000 374,000 638,000 689,000
------------ ------------ ------------ ------------
733,000 771,000 1,479,000 1,475,000
------------ ------------ ------------ ------------
NET INCOME $ 321,000 $ 215,000 $ 627,000 $ 475,000
============ ============ ============ ============
Limited partners' share of net income ($31.05 per
unit in 1997 and $23.50 per unit in 1996) $ 621,000 $ 470,000
General partners' share of net income 6,000 5,000
------------ ------------
$ 627,000 $ 475,000
============ ============
</TABLE>
See accompanying notes.
3
<PAGE>
<TABLE>
<CAPTION>
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED STATEMENT OF PARTNERS' DEFICIT
(UNAUDITED)
Total
Limited General Partners'
Partners Partners Deficit
----------- ----------- -----------
<S> <C> <C> <C>
Balance at December 31, 1996 $(7,304,000) $(2,533,000) $(9,837,000)
Net Income 621,000 6,000 627,000
Equity transfer (155,000) 155,000 -
----------- ----------- -----------
Balance at June 30, 1997 $(6,838,000) $(2,372,000) $(9,210,000)
============ ============ ============
</TABLE>
See accompanying notes.
4
<PAGE>
<TABLE>
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
June 30,
-----------------------------
1997 1996
----------- ----------
Cash flows from operating activities:
<S> <C> <C>
Net Income $ 627,000 $ 475,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 214,000 195,000
(Increase) decrease in rent and other receivables (30,000) 7,000
Amortization of prepaid management fees - 103,000
Amortization of prepaid loan fees 16,000 17,000
Decrease (increase) in other assets 11,000 (6,000)
Increase (decrease) in accounts payable 7,000 (54,000)
Increase (decrease) in deferred revenue 5,000 (16,000)
----------- ----------
Total adjustments 223,000 246,000
----------- ----------
Net cash provided by operating activities 850,000 721,000
----------- ----------
Cash flows from investing activities:
Additions to real estate facilities (126,000) (104,000)
----------- ----------
Net cash used in investing activities (126,000) (104,000)
----------- ----------
Cash flows from financing activities:
Principal payments on notes payable (556,000) (576,000)
----------- ----------
Net cash used in financing activities (556,000) (576,000)
----------- ----------
Net increase in cash and cash equivalents 168,000 41,000
Cash and cash equivalents at the beginning of the period 69,000 89,000
----------- ----------
Cash and cash equivalents at the end of the period $ 237,000 $ 130,000
=========== ==========
</TABLE>
See accompanying notes.
5
<PAGE>
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,
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
<PAGE>
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, 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
$627,000 compared to $475,000 for the six months ended June 30, 1996,
representing an increase of $152,000 or 32%. The Partnership's net income for
the three months ended June 30, 1997 was $321,000 compared to $215,000 for the
three months ended June 30, 1996, representing an increase of $106,000 or 49%.
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 1997 compared to 1996.
Rental income for the six months ended June 30, 1997 was $2,101,000
compared to $1,948,000 for the six months ended June 30, 1996 representing an
increase of $153,000 or 8%. Rental income for the three months ended June 30,
1997 was $1,051,000 compared to $984,000 for the three months ended June 30,
1996, representing an increase of $67,000 or 7%. 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 94% and 91% for the six months ended June 30,
1997 and 1996, respectively. Realized rent for the six months ended June 30,
1997 increased to $.74 per occupied square foot from $.71 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 $602,000 compared to $570,000 for the six
months ended June 30, 1996, representing an increase of $32,000 or 5%. This
increase is mainly attributable to increases in management fees and property tax
expenses. Cost of operations (including management fees paid to affiliate) for
the three months ended June 30, 1997 was $283,000 compared to $287,000 for the
three months ended June 30, 1996, representing a decrease of $4,000 or 1%. This
decrease is mainly attributable to a decrease in repairs and maintenance expense
partially offset by an increase in management fees expense.
7
<PAGE>
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 $14,000 lower than it would have been under the
customary undiscounted fee structure.
Interest expense decreased $51,000 to $638,000 in the six months ended June
30, 1997 from $689,000 in the same period in 1996. This decrease is mainly
attributable to lower outstanding principal balances on the Partnership's notes
payable.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Cash generated from operations ($850,000 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 increase its cash reserves for principal payments that
commenced in 1993.
8
<PAGE>
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 PROPERTIES, LTD.
BY: Public Storage, Inc.
General Partner
BY: /s/ John Reyes
---------------
John Reyes
Senior Vice President and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000202953
<NAME> PUBLIC STORAGE PROPERTIES, LTD.
<MULTIPLIER> 1
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1997
<PERIOD-START> Jan-01-1997
<PERIOD-END> Jun-30-1997
<EXCHANGE-RATE> 1
<CASH> 237,000
<SECURITIES> 0
<RECEIVABLES> 78,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 315,000
<PP&E> 10,358,000
<DEPRECIATION> (5,260,000)
<TOTAL-ASSETS> 5,586,000
<CURRENT-LIABILITIES> 135,000
<BONDS> 14,661,000
0
0
<COMMON> 0
<OTHER-SE> (9,210,000)
<TOTAL-LIABILITY-AND-EQUITY> 5,586,000
<SALES> 0
<TOTAL-REVENUES> 2,106,000
<CGS> 0
<TOTAL-COSTS> 602,000
<OTHER-EXPENSES> 239,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 638,000
<INCOME-PRETAX> 627,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 627,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 627,000
<EPS-PRIMARY> 31.05
<EPS-DILUTED> 31.05
</TABLE>
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