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, 1998
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
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PUBLIC STORAGE PROPERTIES V, LTD.
---------------------------------
(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
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<PAGE>
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Condensed balance sheets at March 31, 1998
and December 31, 1997 2
Condensed statements of income for the three
months ended March 31, 1998 and 1997 3
Condensed statement of partners' equity for the
three months ended March 31, 1998 4
Condensed statements of cash flows for the
three months ended March 31, 1998 and 1997 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>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
--------------------- -----------------
(Unaudited)
ASSETS
------
<S> <C> <C>
Cash and cash equivalents $ 3,631,000 $ 2,963,000
Marketable securities of affiliate (cost of $7,399,000) 16,004,000 15,226,000
Rent and other receivables 124,000 127,000
Real estate facilities, at cost:
Buildings and equipment 15,294,000 15,262,000
Land (including land held for sale of $230,000) 4,714,000 4,714,000
--------------------- -----------------
20,008,000 19,976,000
Less accumulated depreciation (10,092,000) (9,876,000)
--------------------- -----------------
9,916,000 10,100,000
--------------------- -----------------
Other assets 166,000 184,000
--------------------- -----------------
Total assets $ 29,841,000 $ 28,600,000
===================== =================
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Accounts payable $ 119,000 $ 69,000
Deferred revenue 228,000 201,000
Mortgage note payable 22,145,000 22,272,000
Partners' equity:
Limited partners' deficit, $500 per unit, 44,000 units
authorized, issued and outstanding (933,000) (1,314,000)
General partners' deficit (323,000) (455,000)
Unrealized gain on marketable securities 8,605,000 7,827,000
--------------------- -----------------
Total partners' equity 7,349,000 6,058,000
--------------------- -----------------
Total liabilities and partners' equity $ 29,841,000 $ 28,600,000
===================== =================
</TABLE>
See accompanying notes.
2
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------------------
1998 1997
-------------------- --------------------
REVENUES:
<S> <C> <C>
Rental income $ 1,789,000 $ 1,712,000
Dividends from marketable securities of affiliate 114,000 97,000
Interest and other income 45,000 45,000
-------------------- --------------------
1,948,000 1,854,000
-------------------- --------------------
COSTS AND EXPENSES:
Cost of operations 483,000 450,000
Management fees paid to affiliates 107,000 102,000
Depreciation 216,000 205,000
Administrative 16,000 10,000
Interest expense 613,000 618,000
-------------------- --------------------
1,435,000 1,385,000
-------------------- --------------------
NET INCOME $ 513,000 $ 469,000
==================== ====================
Limited partners' share of net income ($11.55 per unit
in 1998 and $10.55 per unit in 1997) $ 508,000 $ 464,000
General partners' share of net income 5,000 5,000
-------------------- --------------------
$ 513,000 $ 469,000
==================== ====================
</TABLE>
See accompanying notes.
3
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENT OF PARTNERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
Unrealized
Gain on Total
Limited General Marketable Partners'
Partners Partners Securities Equity
----------------- ---------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Balance at December 31, 1997 $ (1,314,000) $ (455,000) $ 7,827,000 $ 6,058,000
Unrealized gain on marketable - - 778,000 778,000
securities
Net income 508,000 5,000 - 513,000
Equity transfer (127,000) 127,000 - -
----------------- ---------------- ------------------- -------------------
Balance at March 31, 1998 $ (933,000) $ (323,000) $ 8,605,000 $ 7,349,000
================= ================ =================== ===================
</TABLE>
See accomanying notes.
4
<PAGE>
PUBLIC STORAGE PROPERTIES V, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------------------------
1998 1997
------------------- ----------------
Cash flows from operating activities:
<S> <C> <C>
Net income $ 513,000 $ 469,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 216,000 205,000
Decrease in rent and other receivables 3,000 13,000
Amortization of prepaid loan fees 20,000 20,000
(Increase) decrease in other assets (2,000) 12,000
Increase in accounts payable 50,000 90,000
Increase in deferred revenue 27,000 17,000
------------------- ----------------
Total adjustments 314,000 357,000
------------------- ----------------
Net cash provided by operating activities 827,000 826,000
------------------- ----------------
Cash flow from investing activities:
Additions to real estate facilities (32,000) (99,000)
------------------- ----------------
Net cash used in investing activities (32,000) (99,000)
------------------- ----------------
Cash flow from financing activities:
Principal payments on mortgage note payable (127,000) (114,000)
------------------- ----------------
Net cash used in financing activities (127,000) (114,000)
------------------- ----------------
Net increase in cash and cash equivalents 668,000 613,000
Cash and cash equivalents at beginning of period 2,963,000 3,177,000
------------------- ----------------
Cash and cash equivalents at end of period $ 3,631,000 $ 3,790,000
=================== ================
Supplemental schedule of non-cash investing and
financing activities:
(Increase) decrease in fair value of marketable securities $ (778,000) $ 881,000
=================== ================
Unrealized gain (loss) on marketable securities $ 778,000 $ (881,000)
=================== ================
</TABLE>
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, 1997.
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, 1998, the results of its operations for the three
months ended March 31, 1998 and 1997 and its cash flows for the three
months then ended.
3. The results of operations for the three months ended March 31, 1998 are
not necessarily indicative of the results expected for the full year.
4. Marketable securities at March 31, 1998 consist of 518,334 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, 1998, the Partnership has
recorded the marketable securities at fair value, based upon the
closing quoted prices of the securities at March 31, 1998. Changes in
market value of marketable securities are reflected as unrealized gains
or losses directly in Partners' Equity and accordingly have no effect
on net income.
6
<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, 1998 compared to three months ended March
31, 1997:
The Partnership's net income for the three months ended March 31, 1998
was $513,000 compared to $469,000 for the three months ended March 31, 1997,
representing an increase of $44,000 or 9%. The increase is primarily a result of
increased operating results at the Partnership's mini-warehouse facilities
combined with decreased interest expense.
Rental income for the three months ended March 31, 1998 was $1,789,000
compared to $1,712,000 for the three months ended March 31, 1997, representing
an increase of $77,000 or 4%. This increase is primarily attributable to
increased occupancy levels and rental rates at the Partnership's mini-warehouse
and business-park facilities. Realized rent at the mini-warehouse facilities for
the three months ended March 31, 1998 increased to $.83 per occupied square foot
from $.80 per occupied square foot for the three months ended March 31,1997.
Weighted average occupancy levels at the mini-warehouse facilities were 94% and
93% for the three months ended March 31, 1998 and 1997, respectively. Rental
income at the Partnership's San Francisco business park facility increased
$7,000 for the three months ended March 31, 1998 compared to the same period in
1997 due to an increase in rental rates and occupancy levels. Average monthly
realized rent for the three months ended March 31, 1998 increased to $1.22 per
occupied square foot from $1.18 per occupied square foot for the three months
ended March 31, 1997. Weighted average occupancy levels at the business park
facility were 98% and 92% for the three months ended March 31, 1998 and 1997,
respectively.
Other income remained stable for the three months ended March 31, 1998
compared to the same period in 1997.
Dividend income from marketable securities of affiliate increased
$17,000 for the three months ended March 31, 1998 compared to the same period in
1997 due to an increase in the number of shares owned in 1998 compared to the
same period in 1997.
7
<PAGE>
Cost of operations (including management fees paid to affiliates) for
the three months ended March 31, 1998 was $590,000 compared to $552,000 for the
three months ended March 31, 1997, representing an increase of $38,000 or 7%.
This increase is primarily due to an increase in advertising and promotion and
repairs and maintenance expenses.
Interest expense decreased $5,000 for the three months ended March 31,
1998 compared to the same period in 1997 due primarily to a lower outstanding
loan balance in 1998 over 1997.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Cash flows from operating activities ($827,000 for the three months
ended March 31, 1998) have been sufficient to meet all current obligations of
the Partnership.
At March 31, 1998, the Partnership held 518,334 shares of common stock
with a fair value totaling $16,004,000 (cost basis of $7,399,000 at March 31,
1998) in Public Storage, Inc. The Partnership recognized $114,000 in dividends
for the three months ended March 31, 1998.
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.
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: May 13, 1998
PUBLIC STORAGE PROPERTIES V, LTD.
BY: Public Storage, Inc.
General Partner
BY: /s/ John Reyes
--------------
John Reyes
Senior Vice President and
Chief Financial Officer
9
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000277925
<NAME> Public Storage Properties V, Ltd.
<MULTIPLIER> 1
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Mar-31-1998
<EXCHANGE-RATE> 1
<CASH> 3,631,000
<SECURITIES> 16,004,000
<RECEIVABLES> 124,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 19,925,000
<PP&E> 20,008,000
<DEPRECIATION> (10,092,000)
<TOTAL-ASSETS> 29,841,000
<CURRENT-LIABILITIES> 347,000
<BONDS> 22,145,000
0
0
<COMMON> 0
<OTHER-SE> 7,349,000
<TOTAL-LIABILITY-AND-EQUITY> 29,841,000
<SALES> 0
<TOTAL-REVENUES> 1,948,000
<CGS> 0
<TOTAL-COSTS> 590,000
<OTHER-EXPENSES> 232,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 613,000
<INCOME-PRETAX> 513,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 513,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 513,000
<EPS-PRIMARY> 11.55
<EPS-DILUTED> 11.55
</TABLE>
