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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 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 0-9208
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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
- - ------------------------------------------------ -------------------------
(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
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INDEX
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Page
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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
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PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED BALANCE SHEETS
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<CAPTION>
March 31, December 31,
1995 1994
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(Unaudited)
<S> <C> <C>
ASSETS
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Cash and cash equivalents $ 711,000 $ 675,000
Marketable securities of affiliate
(cost of $4,885,000) 7,056,000 6,011,000
Rent and other receivables 64,000 74,000
Real estate facilities:
Buildings and equipment 13,921,000 13,824,000
Land 5,077,000 5,077,000
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18,998,000 18,901,000
Less accumulated depreciation (7,753,000) (7,593,000)
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11,245,000 11,308,000
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Other assets 401,000 422,000
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Total assets $19,477,000 $18,490,000
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LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
Accounts payable $ 192,000 $ 396,000
Deferred revenue 223,000 229,000
Mortgage note payable 23,487,000 23,609,000
Partners' deficit:
Limited partners' deficit, $500 per
unit, 44,000 units authorized,
issued and outstanding (4,898,000) (5,101,000)
General partners' deficit (1,698,000) (1,769,000)
Unrealized gain on marketable
securities 2,171,000 1,126,000
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Total partners' deficit (4,425,000) (5,744,000)
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Total liabilities and partners' deficit $19,477,000 $18,490,000
=========== ===========
</TABLE>
See acompanying notes.
2
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PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
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1995 1994
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<S> <C> <C>
REVENUES:
Rental income $1,506,000 $1,438,000
Dividends and other income (including dividends
from marketable securities of affiliate) 100,000 72,000
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1,606,000 1,510,000
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COSTS AND EXPENSES:
Cost of operations 390,000 376,000
Management fees paid to affiliates 90,000 87,000
Depreciation and amortization 160,000 153,000
Administrative 39,000 15,000
Interest expense 653,000 704,000
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1,332,000 1,335,000
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NET INCOME $ 274,000 $ 175,000
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Limited partners'
share of net income
($6.16 per unit in 1995
and $3.93 per unit in 1994) $ 271,000 $ 173,000
General partners' share
of net income 3,000 2,000
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$ 274,000 $ 175,000
========== ==========
</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
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<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 - - 1,045,000 1,045,000
Net income 271,000 3,000 - 274,000
Equity transfer (68,000) 68,000 - -
----------- ----------- ---------- -----------
Balance at March 31, 1995 $(4,898,000) $(1,698,000) $2,171,000 $(4,425,000)
----------- ----------- ---------- -----------
</TABLE>
See accompanying notes.
4
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PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
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<CAPTION>
Three Months Ended
March 31,
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1995 1994
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 274,000 $ 175,000
Adjustments to reconcile net
income to net cash provided
by (used in) operating activities:
Depreciation and amortization 160,000 153,000
Decrease (increase) in rent and
other receivables 10,000 (11,000)
Decrease in other assets 21,000 17,000
Decrease in accounts payable (204,000) (608,000)
(Decrease) increase in deferred revenue (6,000) 2,000
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Total adjustments (19,000) (447,000)
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Net cash provided
by (used in) operating activities 255,000 (272,000)
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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 (97,000) (19,000)
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Net cash used in
investing activities (97,000) (323,000)
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Cash flows from financing activities:
Principal payments on mortgage note payable (122,000) (1,601,000)
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Net cash used in
financing activities (122,000) (1,601,000)
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Net increase (decrease) in
cash and cash equivalents 36,000 (2,196,000)
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 $ 711,000 $ 956,000
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Supplemental schedule of non-cash
investing and financing activities:
Increase in fair value of marketable
securities $(1,045,000) $(1,017,000)
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Unrealized gain on marketable
securities $ 1,045,000 $ 1,017,000
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</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 March 31, 1995, the results of its operations for the three
months ended March 31, 1995 and 1994 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 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 March 31, 1995, the
Partnership has recorded the marketable securities at fair value, based
upon the closing quoted prices of the securities at March 31, 1995, and a
corresponding unrealized gain totaling $2,171,000 as a credit to
Partnership equity.
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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 first quarter of 1995,
the Partnership commenced environmental assessments on its properties. The
results 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
Partnership's financial position. Included in administrative expenses on
the statement of operations for the three months ended March 31, 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
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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 $274,000 compared to $175,000 for the three months ended March 31, 1994,
representing an increase of $99,000 or 56%. The increase is primarily a
result of increased operating results at the Partnership's mini-warehouse
facilities combined with decreased interest expense.
Rental income was $1,506,000 compared to $1,438,000 for the three months
ended March 31, 1995 and 1994, respectively, representing an increase of
$68,000 or 5%. This increase is primarily attributable to an increase in
rental rates at the Partnership's mini-warehouse facilities. Weighted
average occupancy levels at the mini-warehouse facilities were 88% and 87%
for the three months ended March 31, 1995 and 1994, respectively. Weighted
average occupancy levels at the business park facility were 94% and 97% for
the three months ended March 31, 1995 and 1994, respectively.
Other income increased $28,000 for the three months ended March 31, 1995
compared to the same period in 1994 as a result of an increase in dividend
income on marketable securities of affiliate. The increase is primarily
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 by $17,000 to $480,000 from $463,000 for the three months ended
March 31, 1995 and 1994, respectively. This increase is mainly attributable
to increases in office expense and repairs and maintenance costs.
Administrative expenses increased $24,000 for the three months ended
March 31, 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. The
results 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 Partnership's
financial position.
8
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LIQUIDITY AND CAPITAL RESOURCES
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Cash flows from operating activities ($255,000 for the three months ended
March 31, 1995) have been sufficient to meet all current obligations of the
Partnership. During 1995, the Partnership anticipates approximately $311,000
of capital improvements.
At March 31, 1995, the Partnership held 418,128 shares of common stock
(marketable securities) with a fair value totaling $7,056,000 (cost basis of
$4,885,000 at March 31, 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 $92,000 in dividends for the three months ended March 31, 1995 and
included this in Other Income on the Condensed Statements of Operations.
In the 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
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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 is 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 V, LTD.
BY: Public Storage, Inc.
General Partner
BY: /s/ Ronald L. Havner, Jr.
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Ronald L. Havner, Jr.
Vice President and Chief
Financial Officer
(principal accounting and
financial officer)
10
