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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, 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 0-9208
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PUBLIC STORAGE PROPERTIES V, LTD.
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(Exact name of registrant as specified in its charter)
California 95-3292068
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
600 N. Brand Boulevard
Glendale, California 91203
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 244-8080
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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 _____
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INDEX
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Page
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PART I. FINANCIAL INFORMATION
Condensed balance sheets at June 30, 1995
and December 31, 1994 2
Condensed statements of operations for the three
and six months ended June 30, 1995 and 1994 3
Condensed statement of partners' deficit for the
six months ended June 30, 1995 4
Condensed statements of cash flows for the
six months ended June 30, 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 10-11
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PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
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(Unaudited)
<S> <C> <C>
ASSETS
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Cash and cash equivalents $ 988,000 $ 675,000
Marketable securities of affiliate
(cost of $4,885,000) 6,847,000 6,011,000
Rent and other receivables 108,000 74,000
Real estate facilities:
Buildings and equipment 14,045,000 13,824,000
Land 5,077,000 5,077,000
----------- -----------
19,122,000 18,901,000
Less accumulated depreciation (7,923,000) (7,593,000)
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11,199,000 11,308,000
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Other assets 380,000 422,000
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Total assets $19,522,000 $18,490,000
=========== ===========
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LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
<TABLE>
<S> <C> <C>
Accounts payable $ 240,000 $ 396,000
Deferred revenue 216,000 229,000
Mortgage note payable 23,393,000 23,609,000
Partners' deficit:
Limited partners' deficit, $500 per
unit, 44,000 units authorized,
issued and outstanding (4,670,000) (5,101,000)
General partners' deficit (1,619,000) (1,769,000)
Unrealized gain on marketable
securities 1,962,000 1,126,000
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Total partners' deficit (4,327,000) (5,744,000)
----------- -----------
Total liabilities and partners' deficit $19,522,000 $18,490,000
=========== ===========
</TABLE>
See accompanying notes.
2
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PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES:
Rental income $1,528,000 $1,535,000 $3,034,000 $2,973,000
Dividends and other income
(including dividends from marketable
securities of affiliate) 103,000 69,000 203,000 141,000
---------- ---------- ---------- ----------
1,631,000 1,604,000 3,237,000 3,114,000
---------- ---------- ---------- ----------
COSTS AND EXPENSES:
Cost of operations 392,000 385,000 782,000 761,000
Management fees paid to affiliates 91,000 90,000 181,000 177,000
Depreciation and amortization 170,000 153,000 330,000 306,000
Administrative 20,000 14,000 59,000 29,000
Interest expense 651,000 660,000 1,304,000 1,364,000
---------- ---------- ---------- ----------
1,324,000 1,302,000 2,656,000 2,637,000
---------- ---------- ---------- ----------
NET INCOME $ 307,000 $ 302,000 $ 581,000 $ 477,000
========== ========== ========== ==========
Limited partners' share of net income
($13.07 per unit in 1995 and
$10.73 per unit in 1994) $ 575,000 $ 472,000
General partners' share of net income 6,000 5,000
---------- ----------
$ 581,000 $ 477,000
========== ==========
</TABLE>
See accompanying notes.
3
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PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENT OF PARTNERS' DEFICIT
(UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Gain on Total
Limited General Marketable Partners'
Partners Partners Securities Deficit
------------ ------------ ---------- ------------
<S> <C> <C> <C> <C>
Balance at December 31, 1994 $(5,101,000) $(1,769,000) $1,126,000 $(5,744,000)
Unrealized gain on marketable
securities - - 836,000 836,000
Net income 575,000 6,000 - 581,000
Equity transfer (144,000) 144,000 - -
----------- ----------- ---------- -----------
Balance at June 30, 1995 $(4,670,000) $(1,619,000) $1,962,000 $(4,327,000)
=========== =========== ========== ===========
</TABLE>
See accompanying notes.
4
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PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-------------------------
1995 1994
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 581,000 $ 477,000
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 330,000 306,000
(Increase) decrease in rent and other receivables (34,000) 16,000
Decrease in other assets 42,000 39,000
Decrease in accounts payable (156,000) (495,000)
Decrease in deferred revenue (13,000) (27,000)
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Total adjustments 169,000 (161,000)
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Net cash provided
by operating activities 750,000 316,000
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Cash flows from investing activities:
Insurance proceeds relating to destroyed
real estate facility - 825,000
Purchase of marketable securities - (1,129,000)
Additions to real estate facilities (221,000) (87,000)
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Net cash used in
investing activities (221,000) (391,000)
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Cash flows from financing activities:
Principal payments on mortgage note payable (216,000) (1,685,000)
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Net cash used in
financing activities (216,000) (1,685,000)
--------- -----------
Net increase (decrease) in
cash and cash equivalents 313,000 (1,760,000)
Cash and cash equivalents at
the beginning of the period 675,000 3,152,000
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Cash and cash equivalents at
the end of the period $ 988,000 $ 1,392,000
========= ===========
Supplemental schedule of non-cash
investing and financing activities:
Increase in fair value of marketable
securities $(836,000) $(1,346,000)
========== ============
Unrealized gain on marketable
securities $ 836,000 $ 1,346,000
========= ===========
</TABLE>
See accompanying notes.
5
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PUBLIC STORAGE PROPERTIES V, 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 June 30, 1995, the results of its operations for the three
and six months ended June 30, 1995 and 1994 and its cash flows for the
six months then ended.
3. The results of operations for the three and six months ended June 30,
1995 are not necessarily indicative of the results expected for the full
year.
4. Marketable securities at June 30, 1995 consist of 418,128 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 June 30, 1995, the
Partnership has recorded the marketable securities at fair value, based
upon the closing quoted prices of the securities at June 30, 1995, and a
corresponding unrealized gain totaling $1,962,000 as a credit to
Partnership equity.
6
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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 six month period ended
June 30, 1995, the Partnership completed environmental assessments on its
properties. Those assessments indicate that the Partnership's property
sites do not have any significant environmental issues which would have a
materially adverse effect on the Partnership's financial position.
Included in administrative expenses on the statement of operations for the
six months ended June 30, 1995 is approximately $25,000 incurred in
connection with the environmental assessments.
7
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PUBLIC STORAGE PROPERTIES V, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
---------------------
THREE AND SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO THREE AND SIX MONTHS
ENDED JUNE 30, 1994:
The Partnership's net income for the six months ended June 30, 1995 and
1994 was $581,000 and $477,000, respectively, representing an increase of
$104,000 or 22%. Net income for the three months ended June 30, 1995 and
1994 was $307,000 and $302,000, respectively, representing an increase of
$5,000 or 2%. These increases are primarily the result of increased
operating results at the Partnership's mini-warehouse facilities offset by a
decrease in operations at the San Francisco business park facility.
Rental income was $3,034,000 compared to $2,973,000 for the six months
ended June 30, 1995 and 1994, respectively, representing an increase of
$61,000 or 2%. Rental income was $1,528,000 compared to $1,535,000 for the
three months ended June 30, 1995 and 1994, respectively, representing a
slight decrease of $7,000. The increase for the six months ended June 30,
1995 is attributable to an increase in rental rates and a slight increase in
occupancy levels at the Partnership's mini-warehouse facilities. Weighted
average occupancy levels at the mini-warehouse facilities were 89% and 88%
for the six months ended June 30, 1995 and 1994, respectively. Rental income
at the San Francisco business park facility declined by $21,000 for the six
months ended June 30, 1995 compared to the same period in 1994 due to a
decrease in occupancy. Weighted average occupancy levels at the business
park facility were 91% and 97% for the six months ended June 30, 1995 and
1994, respectively.
Other income increased $62,000 for the six months ended June 30, 1995
compared to the same period in 1994. Other income increased $34,000 for the
three months ended June 30, 1995 compared to the same period in 1994. These
increases are primarily the result of an increase in dividend income on
marketable securities of affiliate. The increase is attributable to an
increase in the number of shares owned in 1995 compared to the same period in
1994 and an increase in the dividend rate from $.21 to $.22 per quarter per
share.
Cost of operations (including management fees paid to affiliates)
increased $25,000 to $963,000 from $938,000 for the six months ended June 30,
1995 and 1994, respectively. Cost of operations increased $8,000 to $483,000
from $475,000 for the three months ended June 30, 1995 and 1994,
respectively. These
8
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increases are mainly attributable to increases in payroll, office expense and
repairs and maintenance costs offset by a decrease in property tax expense.
Administrative expenses increased $30,000 for the six months ended June
30, 1995 compared to the same period in 1994 primarily as a 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 environmental investigations in
connection with property acquisitions. During the first quarter of 1995, the
Partnership commenced environmental assessments on its properties and
incurred approximately $25,000 in connection with those assessments. Those
assessments indicate that the Partnership's property sites do not have any
significant environmental issues which would have a materially adverse effect
on the Partnership's financial position.
Interest expense decreased $60,000 for the six months ended June 30, 1995
compared to the same period in 1994 due primarily to a lower outstanding loan
balance in 1995 over 1994.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Cash flows from operating activities ($750,000 for the six months ended
June 30, 1995) have been sufficient to meet all current obligations of the
Partnership. During 1995, the Partnership anticipates approximately $311,000
of capital improvements, of which $221,000 has been incurred through June 30,
1995.
At June 30, 1995, the Partnership held 418,128 shares of common stock
(marketable securities) with a fair value totaling $6,847,000 (cost basis of
$4,885,000 at June 30, 1995) in Storage Equities, Inc. ("SEI"), a real estate
investment trust whose investment advisor is an affiliate of Public Storage,
Inc. (a general partner of the Partnership). The Partnership recognized
$184,000 in dividends for the six months ended June 30, 1995 and included
this in Other income on the Condensed Statements of Operations.
In the third quarter of 1991, quarterly distributions were discontinued
to enable the Partnership to make principal payments that commenced in 1991
and to increase cash reserves in subsequent years through 1999, at which time
the remaining principal balance is due.
9
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PART II. OTHER INFORMATION
Items 1 through 4 are inapplicable.
Item 5 Other Information
-----------------
In April 1995, Public Storage, Inc. completed a cash tender offer for
17,137 of the 44,000 outstanding limited partnership units in the Partnership
at $250 per unit.
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
10
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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 4, 1995
PUBLIC STORAGE PROPERTIES V, 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)
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1995
<CASH> 988,000
<SECURITIES> 6,847,000
<RECEIVABLES> 108,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 7,943,000
<PP&E> 19,502,000
<DEPRECIATION> (7,923,000)
<TOTAL-ASSETS> 19,522,000
<CURRENT-LIABILITIES> 456,000
<BONDS> 23,393,000
<COMMON> 0
0
0
<OTHER-SE> (4,327,000)
<TOTAL-LIABILITY-AND-EQUITY> 19,522,000
<SALES> 0
<TOTAL-REVENUES> 3,237,000
<CGS> 0
<TOTAL-COSTS> 1,293,000
<OTHER-EXPENSES> 59,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,304,000
<INCOME-PRETAX> 581,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 581,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 581,000
<EPS-PRIMARY> 13.07
<EPS-DILUTED> 0.000
</TABLE>
