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, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from to
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Commission File Number 0-9208
PUBLIC STORAGE PROPERTIES V, LTD.
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(Exact name of registrant as specified in its charter)
California 95-3292068
- ------------------------------- ----------------------
(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
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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
-- --
<PAGE>
INDEX
Page
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PART I. FINANCIAL INFORMATION
Condensed balance sheets at March 31, 1996
and December 31, 1995 2
Condensed statements of income for the three
months ended March 31, 1996 and 1995 3
Condensed statement of partners' deficit for the
three months ended March 31, 1996 4
Condensed statements of cash flows for the
three months ended March 31, 1996 and 1995 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
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED BALANCE SHEETS
March 31, December 31,
1996 1995
(Unaudited)
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ASSETS
------
Cash and cash equivalents $ 1,747,000 $ 1,156,000
Marketable securities of affiliate
(cost of $5,283,000 in 1996 and 1995) 8,977,000 8,371,000
Rent and other receivables 80,000 85,000
Real estate facilities:
Buildings and equipment 14,209,000 14,158,000
Land (including land held for sale of $593,000) 5,077,000 5,077,000
----------- -----------
19,286,000 19,235,000
Less accumulated depreciation (8,464,000) (8,281,000)
----------- -----------
10,822,000 10,954,000
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Other assets 464,000 571,000
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Total assets $22,090,000 $21,137,000
=========== ===========
LIABILITIES AND PARTNERS' DEFICIT
---------------------------------
Accounts payable $ 153,000 $ 101,000
Deferred revenue 216,000 196,000
Mortgage note payable 23,074,000 23,196,000
Partners' deficit:
Limited partners' deficit, $500 per
unit, 44,000 units authorized,
issued and outstanding (3,747,000) (4,042,000)
General partners' deficit (1,300,000) (1,402,000)
Unrealized gain on marketable
securities 3,694,000 3,088,000
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Total partners' deficit (1,353,000) (2,356,000)
----------- -----------
Total liabilities and partners' deficit $22,090,000 $21,137,000
=========== ===========
See accompanying notes.
2
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
------------------------------
1996 1995
(Restated)
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REVENUES:
Rental income $1,584,000 $1,506,000
Dividends and other income (including dividends
from marketable securities of affiliate) 114,000 100,000
---------- ---------
1,698,000 1,606,000
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COSTS AND EXPENSES:
Cost of operations 397,000 390,000
Management fees paid to affiliates 89,000 90,000
Depreciation 183,000 160,000
Administrative 9,000 14,000
Environmental cost - 25,000
Interest expense 623,000 653,000
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1,301,000 1,332,000
---------- ---------
NET INCOME $ 397,000 $ 274,000
========== =========
Limited partners'
share of net income
($8.93 per unit in 1996
and $6.16 per unit in 1995) $ 393,000 $ 271,000
General partners' share
of net income 4,000 3,000
---------- ---------
$ 397,000 $ 274,000
========== =========
See accompanying notes.
3
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENT OF PARTNERS' DEFICIT
(UNAUDITED)
Unrealized
Gain on Total
Limited General Marketable Partners'
Partners Partners Securities Deficit
----------- ----------- ---------- ------------
Balance at December 31, 1995 $(4,042,000) $(1,402,000) $3,088,000 $(2,356,000)
Unrealized gain on marketable
securities - - 606,000 606,000
Net income 393,000 4,000 - 397,000
Equity transfer (98,000) 98,000 - -
----------- ----------- ---------- ------------
Balance at March 31, 1996 $(3,747,000) $(1,300,000) $3,694,000 $(1,353,000)
=========== =========== ========== ============
See accompanying notes.
4
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31,
-------------------------
1996 1995
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Cash flows from operating activities:
Net income $ 397,000 $ 274,000
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 183,000 160,000
Decrease in rent and other receivables 5,000 10,000
Decrease in other assets 21,000 21,000
Amortization of prepaid management fees 86,000 --
Increase (decrease) in accounts payable 52,000 (204,000)
Increase (decrease) in deferred revenue 20,000 (6,000)
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Total adjustments 367,000 (19,000)
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Net cash provided
by operating activities 764,000 255,000
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Cash flows from investing activities:
Additions to real estate facilities (51,000) (97,000)
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Net cash used in
investing activities (51,000) (97,000)
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Cash flows from financing activities:
Principal payments on mortgage note payable (122,000) (122,000)
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Net cash used in
financing activities (122,000) (122,000)
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Net increase in cash and
cash equivalents 591,000 36,000
Cash and cash equivalents at
the beginning of the period 1,156,000 675,000
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Cash and cash equivalents at
the end of the period $ 1,747,000 $ 711,000
=========== ===========
Supplemental schedule of non-cash
investing and financing activities:
Increase in fair value of marketable
securities $ (606,000) $(1,045,000)
=========== ===========
Unrealized gain on marketable
securities $ 606,000 $ 1,045,000
=========== ===========
See accompanying notes.
5
<PAGE>
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,
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 March 31, 1996, the results of its operations for the three months ended
March 31, 1996 and 1995 and its cash flows for the three months then ended.
3. The results of operations for the three months ended March 31, 1996 are not
necessarily indicative of the results expected for the full year.
4. Certain prior year amounts have been reclassified to conform with the 1996
presentation.
5. Marketable securities at March 31, 1996 consist of 440,584 shares of common
stock of Public Storage, Inc., a publicly traded real estate investment
trust and a general partner of the Partnership. The Partnership has
designated its portfolio of marketable securities as available for sale.
Accordingly, at March 31, 1996, the Partnership has recorded the marketable
securities at fair value, based upon the closing quoted prices of the
securities at March 31, 1996, and has recorded a corresponding unrealized
gain totaling $606,000 as a credit to Partnership equity.
6
<PAGE>
6. In 1995, the Partnership prepaid eight months of 1996 management fees at a
total cost of $229,000. The Partnership expensed $86,000 of the 1996
prepaid management fees for the three months ended March 31, 1996. The
balance of prepaid management fees, $143,000, is included in other assets
in the Balance Sheet at March 31, 1996.
7
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
Three months ended March 31, 1996 compared to three months ended March 31,
1995:
The Partnership's net income for the three months ended March 31, 1996 was
$397,000 compared to $274,000 for the three months ended March 31, 1995,
representing an increase of $123,000 or 45%. 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 $1,584,000 compared to $1,506,000 for the three months
ended March 31, 1996 and 1995, respectively, representing an increase of $78,000
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 89% and 88% for the three months ended
March 31, 1996 and 1995, respectively. Weighted average occupancy levels at the
business park facility were 87% and 94% for the three months ended March 31,
1996 and 1995, respectively.
Other income increased $14,000 for the three months ended March 31, 1996
compared to the same period in 1995 due to an increase in dividend income on
marketable securities of affiliate combined with an increase in interest income
earned on invested cash. Dividend income on marketable securities of affiliate
increased $5,000 due to an increase in the number of shares owned in 1996
compared to the same period in 1995.
Cost of operations (including management fees paid to affiliates) increased
$6,000 to $486,000 from $480,000 for the three months ended March 31, 1996 and
1995, respectively. This increase is primarily due to an increase in property
taxes offset by a decrease in repairs and maintenance.
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 three
month period ended March 31, 1996, the Partnership expensed $86,000 of prepaid
management fees. The amount is included in management fees paid to affiliates in
the condensed statements of income. As a result of the prepayment, the
Partnership saved approximately $6,000 in management fees, based on the
management fees that would have been payable on rental income generated in the
three months ended March 31, 1996 compared to the amount prepaid.
Interest expense decreased $30,000 for the three months ended March 31,
1996 compared to the same period in 1995 due primarily to a lower outstanding
loan balance in 1996 over 1995.
In 1995, the Partnership incurred cost of $25,000 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 flows from operating activities ($764,000 for the three months ended
March 31, 1996) have been sufficient to meet all current obligations of the
Partnership.
At March 31, 1996, the Partnership held 440,584 shares of common stock
(marketable securities) with a fair value totaling $8,977,000 (cost basis of
$5,283,000 at March 31, 1996) in Public Storage, Inc. The Partnership recognized
$97,000 in dividends for the three months ended March 31, 1996 and included this
in other income in the condensed statements of income.
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.
<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: May 13, 1996
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
10
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<ARTICLE> 5
<CIK> 0000277925
<NAME> PUBLIC STORAGE PROPERTIES V, LTD.
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-START> Jan-01-1996
<PERIOD-END> Mar-31-1996
<CASH> 1,747,000
<SECURITIES> 8,977,000
<RECEIVABLES> 544,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 11,268,000
<PP&E> 19,286,000
<DEPRECIATION> (8,464,000)
<TOTAL-ASSETS> 22,090,000
<CURRENT-LIABILITIES> 369,000
<BONDS> 23,074,000
0
0
<COMMON> 0
<OTHER-SE> (1,353,000)
<TOTAL-LIABILITY-AND-EQUITY> 22,090,000
<SALES> 0
<TOTAL-REVENUES> 1,698,000
<CGS> 0
<TOTAL-COSTS> 669,000
<OTHER-EXPENSES> 9,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 623,000
<INCOME-PRETAX> 397,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 397,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 397,000
<EPS-PRIMARY> 8.93
<EPS-DILUTED> 8.93
</TABLE>
