PS PARTNERS VI LTD, 10-K405, 1996-03-25

PS PARTNERS VI LTD
10-K405, 1996-03-25
REAL ESTATE INVESTMENT TRUSTS

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<PAGE>

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [Fee Required]

For the fiscal year ended December 31, 1995
-----------------

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [No Fee Required]

For the transition period from ____________________ to ________________________

Commission File Number 0-14477
-------

PS PARTNERS VI, LTD., a California Limited Partnership
------------------------------------------------------
(Exact name of registrant as specified in its charter)

California 95-3950440
- -------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)

600 N. Brand Boulevard Glendale, California 91203-1241
- ------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (818) 244-8080
--------------

Securities registered pursuant to Section 12(b) of the Act:

NONE

Securities registered pursuant to Section 12(g) of the Act:

Units of Limited Partnership Interest
-------------------------------------
(Title of class)

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
----- -----

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to the
Form 10-K. [X]

- --------------------------------------------------------------------------------
DOCUMENTS INCORPORATED BY REFERENCE

NONE
<PAGE>

PART I

ITEM 1. BUSINESS.
--------
General
- -------
PS Partners VI, Ltd. (the "Partnership") is a publicly held limited
partnership formed under the California Revised Limited Partnership Act.
Commencing in October 1985, 150,000 units of limited partnership interest (the
"Units") were offered to the public in an interstate offering. The offering was
completed in June 1986.

The Partnership was formed to invest in and operate existing self-service
facilities offering storage space for personal and business use (the "mini-
warehouses") and to invest up to 40% of the net proceeds of the offering in and
operate existing office and industrial properties. The Partnership's
investments were made through general partnerships with Storage Equities, Inc.,
now known as Public Storage, Inc. ("PSI"), a real estate investment trust
organized as a corporation under the laws of California. For tax administrative
efficiency, the original general partnerships with PSI were consolidated into a
single general partnership effective December 31, 1990.

In 1995, there was a series of mergers among Public Storage Management,
Inc. (which was the Partnership's mini-warehouse operator), Public Storage, Inc.
and their affiliates (collectively, "PSMI"), culminating in the November 16,
1995 merger (the "PSMI Merger") of PSMI into Storage Equities, Inc. In the
PSMI Merger, Storage Equities, Inc.'s name was changed to Public Storage, Inc.
and it acquired substantially all of PSMI's United States real estate operations
and became the operator of the Partnership's mini-warehouse properties.

The Partnership's general partners (the "General Partners") are PSI and B.
Wayne Hughes ("Hughes"). PSI became a co-general partner in September 1993,
when PSI acquired the interest of PSI Associates, Inc. ("PSA"), an affiliate of
PSMI, relating to PSA's general partner capital contribution in the Partnership.
Hughes has been a general partner of the Partnership since its inception.
Hughes is the chairman of the board and chief executive officer of PSI, and
Hughes and members of his family (the "Hughes Family") is the major shareholder
of PSI. The Partnership is managed, and its investment decisions are made by
Hughes and the executive officers and directors of PSI. The limited partners
of the Partnership have no right to participate in the management or conduct of
its business affairs.

The Partnership's mini-warehouse properties are managed by PSI and the
Partnership's commercial properties are managed by Public Storage Commercial
Properties Group, Inc. ("PSCP"), pursuant to Management Agreements. PSI has a
95% economic interest and the Hughes Family has a 5% economic interest in PSCP.
PSI believes that it is the largest operator of mini-warehouse facilities in the
United States.

PSI's current relationship with the Partnership includes (i) the joint
ownership of 32 of the Partnership's 34 properties, (ii) PSI is a co-general
partner along with Hughes, who is chairman of the board and chief executive
officer of PSI, (iii) as of February 29, 1996, PSI owned approximately 51.11% of
the Partnership's limited partnership units and (iv) PSI is the operator of the
Partnership's mini-warehouse facilities and owns approximately 95% of the
Partnership's commercial property operator (PSCP).

Investments in Facilities
- -------------------------

The Partnership owns interests in 34 properties; 32 of such properties are
held in a general partnership comprised of the Partnership and PSI. The
Partnership purchased its last property in November, 1986. Reference is made to
the table in Item 2 for a summary of information about the Partnership's
properties.

The Partnership believes that its operating results have benefited from
favorable industry trends and conditions. Notably, the level of new mini-
warehouse construction has decreased since 1988 while consumer demand has
increased. In addition, in recent years consolidation has occurred in the
fragmented mini-warehouse industry.

Mini-warehouses
---------------

Mini-warehouses, which comprise the majority of the Partnership's
investments, are designed to offer accessible storage space for personal and
business use at a relatively low cost. A user rents a fully enclosed space
which is for the user's exclusive use and to which only the user has access on
an unrestricted basis during business

2
<PAGE>

hours. On-site operation is the responsibility of resident managers who are
supervised by area managers. Some mini-warehouses also include rentable
uncovered parking areas for vehicle storage. Leases for mini-warehouse space may
be on a long-term or short-term basis, although typically spaces are rented on a
month-to-month basis. Rental rates vary according to the location of the
property and the size of the storage space.

Users of space in mini-warehouses include both individuals and large and
small businesses. Individuals usually employ this space for storage of, among
other things, furniture, household appliances, personal belongings, motor
vehicles, boats, campers, motorcycles and other household goods. Businesses
normally employ this space for storage of excess inventory, business records,
seasonal goods, equipment and fixtures.

Mini-warehouses in which the Partnership has invested generally consist of
three to seven buildings containing an aggregate of between 194 to 1,191 storage
spaces, most of which have between 25 and 400 square feet and an interior height
of approximately 8 to 12 feet.

The Partnership experiences minor seasonal fluctuations in the occupancy
levels of mini-warehouses with occupancies higher in the summer months than in
the winter months. The Partnership believes that these fluctuations result in
part from increased moving activity during the summer.

The Partnership's mini-warehouses are geographically diversified and are
generally located in heavily populated areas and close to concentrations of
apartment complexes, single family residences and commercial developments.
However, there may be circumstances in which it may be appropriate to own a
property in a less populated area, for example, in an area that is highly
visible from a major thoroughfare and close to, although not in, a heavily
populated area. Moreover, in certain population centers, land costs and zoning
restrictions may create a demand for space in nearby less populated areas.

As with most other types of real estate, the conversion of mini-warehouses
to alternative uses in connection with a sale or otherwise would generally
require substantial capital expenditures. However, the Partnership does not
intend to convert its mini-warehouses to other uses.

Commercial Properties
---------------------

The Partnership originally owned three commercial properties: two business
parks and one low-rise office building. The low-rise office building, located
in Sacramento, California, which had secured mortgage notes, was foreclosed upon
by the lender in 1993. One of the two remaining business parks has six separate
one story office/industrial structures with approximately 109,200 net rentable
square feet. The other business park is comprised of 12 separate one story
buildings with approximately 194,500 net rentable square feet.

Investment Objectives and Polices; Sale or Financing of Investments
- -------------------------------------------------------------------

The Partnership's objectives are to (i) preserve and protect invested
capital, (ii) maximize the potential for appreciation in value of its
properties, (iii) provide Federal income tax deductions so that during the early
years of property operations a portion of cash distributions may be treated as a
return of capital for tax purposes, and therefore, may not represent taxable
income to the limited partners and (iv) provide for cash distributions from
operations.

The Partnership will terminate on December 31, 2038, unless earlier
dissolved. Under the terms of the general partnership agreement with PSI, as of
December 31, 1995, PSI has the right to require the Partnership to sell all of
the joint venture properties (see Item 12(c)). The General Partners have no
present intention to seek the liquidation of the Partnership because they
believe that it is not an opportune time to sell mini-warehouses. Although the
General Partners originally anticipated a liquidation of the Partnership in
1991-1994, since the completion of the Partnership's offering in 1986,
significant changes have taken place in the financial and real estate markets
that must be taken into account in considering the timing of any proposed sale
or financing, including: (i) the increased construction of mini-warehouses from
1984 to 1988, which has increased competition, (ii) the general deterioration of
the real estate market (resulting from a variety of factors, including changes
in tax laws), which has significantly affected property values and decreased
sales activities and (iii) the reduced sources of real estate financing.
Although conditions have improved,

3
<PAGE>

these developments have resulted in a reduced market for the sale and financing
of commercial real estate, making this, in the view of the Partnership, a less
than optimal time to liquidate the real estate assets of the Partnership.

The General Partners believe that a liquidation within the period
originally estimated would not be likely to achieve the Partnership's investment
objectives. The General Partners will continue to evaluate the advisability of
the sale or financing of the Partnership's properties. Among the factors the
General Partners would consider are the amount that might be realized from a
sale or financing, the real estate and financing markets at the time and the
prospects for changes in those markets. Currently, the General Partners do not
intend to sell any properties or liquidate the Partnership since they believe
that property values are increasing, although no assurances can be given as to
any future property values.

PSI, a general partner of the Partnership, recently completed a tender
offer for Units in the Partnership. See Item 12

Operating Strategies
- --------------------

The Partnership's mini-warehouses are operated by PSI under the "Public
Storage" name, which the Partnership believes is the most recognized name in the
mini-warehouse industry. The major elements of the Partnership's operating
strategies are as follows:

. Capitalize on Public Storage's name recognition. PSI, together with its
predecessor, has more than 20 years of operating experience in the mini-
warehouse business. PSI has informed the Partnership that it is the
largest mini-warehouse facility operator in the United States in terms of
both number of facilities and rentable space operated. In the past eight
years, in excess of $56 million has been expended promoting the "Public
Storage" name. PSI believes that its marketing and advertising programs
improve its competitive position in the market. PSI believes that it is
the only mini-warehouse operator regularly using television advertising
in several major markets around the country, and its in-house Yellow
Pages staff designs and places advertisements in approximately 700
directories. In addition, PSI offers a toll-free referral system, 800-
44-STORE, which services approximately 100,000 calls per year from
potential customers inquiring as to the nearest Public Storage mini-
warehouse.

. Maintain high occupancy levels and increase realized rents. Subject to
market conditions, the Partnership generally seeks to achieve average
occupancy levels in excess of 90% and to eliminate promotions prior to
increasing rental rates. Average occupancy for the Partnership's mini-
warehouses remained stable at 88% in 1994 and 1995. Realized monthly
rents per square foot increased from $.58 in 1994 to $.60 in 1995. The
Partnership has increased rental rates in many markets where it has
achieved high occupancy levels and eliminated or minimized promotions.

. Systems and controls. PSI has an organizational structure and a
property operation system, "CHAMP" (Computerized Help and Management
Program), which links its corporate office with each mini-warehouse.
This enables PSI to obtain daily information from each mini-warehouse and
to achieve efficiencies in operations and maintain control over its space
inventory, rental rates, promotional discounts and delinquencies.
Expense management is achieved through centralized payroll and accounts
payable systems and a comprehensive property tax appeals department, and
PSI has an extensive internal audit program designed to ensure proper
handling of cash collections.

. Professional property operation. In addition to the approximately 120
support personnel at the Public Storage corporate offices, there are
approximately 2,700 on-site personnel who manage the day-to-day
operations of the mini-warehouse in the Public Storage system. These on-
site personnel are supervised by 107 district managers, 14 regional
managers and three divisional managers (with an average of 12 years of
experience in the mini-warehouse industry) who report to the president of
the mini-warehouse property operator (who has 11 years of experience with
the Public Storage organization). PSI carefully selects and extensively
trains the operational and support personnel and offers them a
progressive career path. See "Property Operator."

4
<PAGE>

Property Operators
- ------------------

The Partnership's mini-warehouse properties are managed by PSI and the
Partnership's commercial properties are managed by PSCP pursuant to Management
Agreements.

Under the supervision of the Partnership, PSI and PSCP coordinate the
operation of the facilities, establish rental policies and rates, direct
marketing activity and direct the purchase of equipment and supplies,
maintenance activity, and the selection and engagement of all vendors, supplies
and independent contractors.

PSI and PSCP engage, at the expense of the Partnership, employees for the
operation of the Partnership's facilities, including resident managers,
assistant managers, relief managers, and billing and maintenance personnel.
Some or all of these employees may be employed on a part-time basis and may also
be employed by other persons, partnerships, REITs, or other entities owning
facilities operated by PSI or PSCP.

In the purchasing of services such as advertising (including broadcast
media advertising) and insurance, PSI and PSCP attempt to achieve economies by
combining the resources of the various facilities that they operate. Facilities
operated by PSI and PSCP have historically carried comprehensive insurance,
including fire, earthquake, liability and extended coverage.

PSI has developed systems for space inventory, accounting and handling
delinquent accounts, including a computerized network linking PSI operated
facilities. Each project manager is furnished with detailed operating
procedures and typically receives facilities management training from PSI. Form
letters covering a variety of circumstances are also supplied to the project
managers. A record of actions taken by the project managers when delinquencies
occur is maintained.

The Partnership's facilities are typically advertised via signage, yellow
pages, flyers and broadcast media advertising (television and radio) in
geographic areas in which many of the Partnership's facilities are located.
Broadcast media and other advertising costs are charged to the Partnership's
facilities located in geographic areas affected by the advertising. From time
to time, PSI or PSCP adopt promotional programs, such as temporary rent
reductions, in selected areas or for individual facilities.

For as long as the respective Management Agreement is in effect, PSI has
granted the Partnership a non-exclusive license to use two PSI service marks and
related designs (and PSCP has granted the Partnership a non-exclusive license to
use a PSI service mark and related designs), including the "Public Storage"
name, in conjunction with rental and operation of facilities managed pursuant to
the Management Agreement. Upon termination of the respective Management
Agreement, the Partnership would no longer have the right to use the service
marks and related designs except as described below. The General Partners
believe that the loss of the right to use the service marks and related designs
could have a material adverse effect on the Partnership's business.

Each Management Agreement provides that the Management Agreement may be
terminated without cause upon 60 days written notice by the Partnership and upon
seven years notice by PSI or PSCP, as the case may be. Each Management
Agreement may also be terminated at any time by either party for cause, but if
terminated for cause by the Partnership, the Partnership retains the right to
use the service marks and related designs until a date seven years after such
termination.

Competition
- -----------

Competition in the market areas in which the Partnership operates is
significant, and affects the occupancy levels, rental rates, and operating
expenses of certain of the Partnership's facilities. Competition may be
accelerated by any increase in availability of funds for investment in real
estate. Recent increases in plans for development of mini-warehouses is
expected to further intensify competition among mini-warehouse operators in
certain market areas. In addition to competition from mini-warehouses operated
by PSI, there are three other national firms and numerous regional and local
operators. The Partnership believes that the significant operating and
financial experience of PSI's

5
<PAGE>

executive officers and directors and the "Public Storage" name should enable the
Partnership to continue to compete effectively with other entities.

Other Business Activities
- -------------------------

A corporation owned by the Hughes Family reinsures policies against losses
to goods stored by tenants in the Partnership's mini-warehouses. The
Partnership believes that the availability of insurance reduces the potential
liability of the Partnership to tenants for losses to their goods from theft or
destruction. This corporation receives the premiums and bears the risks
associated with the insurance.

A corporation, in which PSI has a 95% economic interest and the Hughes
Family has a 5% economic interest, sells locks, boxes, and tape to tenants to be
used in securing their spaces and moving their goods. PSI believes that the
availability of locks, boxes, and tape for sale promotes the rental of spaces.

Employees
- ---------

There are 111 persons who render services on behalf of the Partnership.
These persons include resident managers, assistant managers, relief managers,
district managers, and administrative personnel. Some or all of these employees
may be employed on a part time basis and may also be employed by other persons,
partnerships, REITs, or other entities owning facilities operated by PSI or
PSCP.

ITEM 2. PROPERTIES.
----------

The following table sets forth information as of December 31, 1995 about
properties owned by the Partnership. Thirty-two of these properties were
acquired jointly with PSI and were contributed to a general partnership
comprised of the Partnership and PSI.

Net Number Approximate
Rentable of Date of % of
Location Square Feet Spaces Acquisition Ownership
- -------- ------------ ------ ----------- -----------
<S> <C> <C> <C> <C>
ALABAMA
Anniston
Whiteside 24,600 266 10-01-86 76.2%
Birmingham
Bessemer - Midfield 19,400 286 10-01-86 76.2
Birmingham
Centerpoint Rd. 41,600 338 10-01-86 76.2
Birmingham
Gadson Highway- 20,800 194 10-01-86 76.2
Roebuck Plaza
Birmingham
Lorna Rd.- Hoover 35,400 330 10-01-86 76.2
Birmingham
Mini-warehouse 54,000 479 10-01-86 76.2
Rd.- Riverchase
Birmingham
Oporto-Eastwood 37,000 263 10-01-86 76.2
Birmingham
Oxmoor Blvd. 39,100 350 10-01-86 76.2
Greensprings
Birmingham
Pebble Creek - Forestdale 30,400 321 10-01-86 76.2
Birmingham
27th Place S. - Highland 19,600 272 10-01-86 76.2
Huntsville
Drake 43,400 362 10-01-86 76.2
</TABLE>

6
<PAGE>

Net Number Approximate
Rentable of Date of % of
Location Square Feet Spaces Acquisition Ownership
- -------- ------------ ------ ----------- -----------
<S> <C> <C> <C> <C>
Huntsville
Leeman 43,800 404 10-01-86 76.2

ARIZONA
Silvergate (a)
Tempe- W. 194,500 67 03-27-86 90.2
University Dr.

CALIFORNIA
Fremont
Peralta 39,100 421 10-24-86 70.0
Sacramento
Franklin Blvd. 50,300 575 05-29-86 67.6
Signal Hill (a)
Parkway 109,200 69 05-29-86 86.3
West Los Angeles
Purdue Ave. 51,000 639 07-01-86 50.0

GEORGIA
Jonesboro
Jonesboro Rd. 33,400 275 10-23-86 50.0

KANSAS
Kansas City
So. 44th 77,000 567 09-10-86 72.7

MARYLAND
Capital Heights
Central Ave. 54,400 673 07-15-86 50.0
Laurel
Ft. Meade Rd. 35,400 511 08-20-86 50.0

MICHIGAN
Pontiac
Dixie Hwy. 60,100 546 07-01-86 70.0

MISSOURI
St. Louis
Kirkham 30,600 402 04-10-86 57.4
St. Louis
Reavis Barracks 29,100 317 04-10-86 57.4

TEXAS
Fort Worth
East Loop 36,100 315 04-10-86 100.0
Houston
Fairdale 119,300 1,191 10-01-86 70.0
Houston
Glenvista 59,200 640 10-01-86 70.0
</TABLE>

7
<PAGE>

Net Number Approximate
Rentable of Date of % of
Location Square Feet Spaces Acquisition Ownership
- -------- ------------ ------ ----------- -----------
<S> <C> <C> <C> <C>
Houston
Gulfton 103,900 889 10-01-86 70.0
Houston
N. Freeway 97,000 903 10-01-86 70.0
Houston
Rogerdale 115,500 1,004 10-01-86 70.0
Houston
S. Gessner 114,200 1,122 10-01-86 70.0
Houston
West Park 52,200 418 10-01-86 70.0
Richland Hills
Baker Blvd. 55,600 416 06-24-86 50.0

UTAH
West Valley
So. 3600 St. 65,900 570 06-10-86 100.0
</TABLE>

(a) Business Park

Weighted average occupancy levels for the mini-warehouse and business park
facilities were 88% and 97%, respectively, in both 1995 and 1994. In 1995, the
monthly realized rent per square foot for the mini-warehouse and business park
facilities averaged $.60 and $.54, respectively, compared to $.58 and $.50,
respectively, in 1994.

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 fourth quarter of 1995, an
independent environmental consulting firm completed environmental assessments on
the Partnership's properties to evaluate the environmental condition of, and
potential environmental liabilities of, such properties. Based on the
assessments, the Partnership believes that it is probable that it will incur
costs totaling $217,000 (in addition, approximately $46,000 was expended for the
assessments) for known environmental remediation requirements, for which the
Partnership has accrued and expensed at the end of 1995. The Partnership
expects to expend these funds over the next twelve months. Although there can
be no assurance, the Partnership is not aware of 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.

ITEM 3. LEGAL PROCEEDINGS.
-----------------

No material legal proceeding is pending against the Partnership.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
---------------------------------------------------

No matters were submitted to a vote of security holders during the fourth
quarter of 1995.

8
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PART II

ITEM 5. MARKET FOR THE PARTNERSHIP'S COMMON EQUITY AND RELATED STOCKHOLDER
------------------------------------------------------ -----------
MATTERS.
-------

The Partnership has no common stock.

The Units are not listed on any national securities exchange or quoted on
the NASDAQ System, and there is no established public trading market for the
Units. Secondary sales activity for the Units has been limited and sporadic.
The General Partners monitor transfers of the Units (a) because the admission of
the transferee as a substitute limited partner requires the consent of the
General Partners under the Partnership's Amended and Restated Agreement of
Limited Partnership, (b) in order to ensure compliance with safe harbor
provisions to avoid treatment as a "publicly traded partnership" for tax
purposes and (c) because PSI has purchased Units. However, the General Partners
do not have information regarding the prices at which all secondary sale
transactions in the Units have been effectuated. Various organizations offer to
purchase and sell limited partnership interests (including securities of the
type such as the Units) in secondary sales transactions. Various publications
such as The Stanger Report summarize and report information (on a monthly,
bimonthly or less frequent basis) regarding secondary sales transactions in
limited partnership interests (including the Units), including the prices at
which such secondary sales transactions are effectuated.

In addition, Dean Witter Reynolds Inc., the dealer-manager for the
Partnership's initial offering of Units, has certain information with regard to
sale transactions in the Units.

Exclusive of the General Partners' interest in the Partnership, as of
December 31, 1995, there were approximately 3,082 record holders of Units.

In July 1995, PSI completed a cash tender offer in which PSI acquired
19,088 of the 150,000 outstanding limited partnership units in the Partnership
at $281 per Unit. PSI completed an additional cash tender offer in August 1995,
in which PSI acquired an additional 4,712 units in the Partnership at $281 per
Unit. As of February 29, 1995, PSI owned 76,670 Units in the Partnership
(51.11% of the outstanding Units).

The Partnership makes quarterly distributions of all "Cash Available for
Distribution" and will make distributions of all "Cash from Sales or
Refinancing." Cash Available for Distribution is cash flow from all sources
less cash necessary for any obligations or capital improvements or reserves.

Reference is made to Items 6 and 7 hereof for information on the amount of
such distributions.

9
<PAGE>

ITEM 6. SELECTED FINANCIAL DATA.
------------------------

For the Year Ended December 31,
----------------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
(In thousands, except per Unit data)
<S> <C> <C> <C> <C> <C>
Revenues $12,709 $12,210 $11,781 $12,369 $12,050

Depreciation and amortization 3,168 3,033 3,011 3,127 2,968

Interest expense - - 6 591 668

Net income (a) 2,077 2,097 2,005 (708) 1,179

Limited partners' share 1,660 1,679 1,662 (1,001) 767

General partners' share 417 418 343 293 412

Limited partners'
per unit data (b)

Net income (a) $ 11.07 $ 11.19 $ 11.08 $ (6.67) $ 5.11

Cash distributions (c) $ 23.80 $ 23.80 $ 19.40 $ 17.97 $ 24.00

As of December 31,
- ------------------

Cash and cash equivalents $ 2,054 $ 1,407 $ 1,203 $ 418 $ 1,137

Total assets 67,717 69,194 70,907 76,954 82,179

Mortgage notes payable - - - 5,004 6,628

</TABLE>

(a) One of the Partnership's properties was foreclosed upon by the mortgage
lenders, reducing assets and mortgage notes payable by $4,680,000. The net
loss in 1992 includes a non-recurring loss upon foreclosure of this property
of $2,256,000, resulting in a $2,233,000 loss allocable to the limited
partners, or $14.89 per unit.
(b) Limited Partners' per unit data is based on the weighted average number of
units outstanding during the period (150,000 units).
(c) The General Partners distributed, concurrent with the distributions for the
fourth quarter of 1991, a portion of the operating reserve of the
Partnership estimated to be $4.00 per Unit.

10
<PAGE>

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS.
----------------------

Results of Operations
- ---------------------

YEAR ENDED DECEMBER 31, 1995 COMPARED TO YEAR ENDED DECEMBER 31, 1994:

The Partnership's net income in 1995 was $2,077,000 compared to net income
of $2,097,000 in 1994, representing a decrease of $20,000. The decrease was
primarily a result of increases in environmental costs and depreciation
expenses, partially offset by increased property operating results.

Net operating income (rental income less cost of operations and management
fees and excluding depreciation expense) increased by $389,000 or 5%, as rental
income increased by $450,000 or 4%, and cost of operations (including management
fees and excluding depreciation expense) increased by $61,000.

Rental income for the Partnership's mini-warehouse operations was
$10,700,000 in 1995 compared to $10,368,000 in 1994, representing an increase of
$332,000, or 3%. The increase in rental income was primarily attributable to
increased rental rates at the mini-warehouse facilities. The monthly average
realized rent per square foot for the mini-warehouse facilities was $.60 in 1995
compared to $.58 in 1994. The weighted average occupancy levels at the mini-
warehouse facilities remained stable at 88% in both 1995 and 1994. Costs of
operations (including management fees) increased $49,000 to $3,955,000 in 1995
from $3,906,000 in 1994. Accordingly, for the Partnership's mini-warehouse
operations, property net operating income increased by $283,000 or 5% from
$6,462,000 in 1994 to $6,745,000 in 1995.

Rental income for the Partnership's business park operations was $1,912,000
in 1995 compared to $1,794,000 in 1994, representing an increase of $118,000 or
7%. The increase in rental income was primarily attributable to increased
rental rates. The monthly average realized rent per square foot for the
business park facilities was $.54 in 1995 compared to $.50 in 1994. The
weighted average occupancy level at the business park facilities remained stable
at 97% in both 1995 and 1994. Cost of operations (including management fees)
increased $12,000 to $882,000 in 1995 from $870,000 in 1994. Accordingly, for
the Partnership's business park facilities, property net operating income
increased by $106,000 or 10% from $924,000 in 1994 to $1,030,000 in 1995.

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 fourth quarter of 1995, an
independent environmental consulting firm completed environmental assessments on
the Partnership's properties to evaluate the environmental condition of, and
potential environmental liabilities of, such properties. Based on the
assessments, the Partnership believes that it is probable that it will incur
costs totaling $217,000 (in addition, approximately $46,000 was expended for
the assessments) for known environmental remediation requirements, for which the
Partnership has accrued and expensed at the end of 1995. The Partnership
expects to expend these funds over the next twelve months. Although there can
be no assurance, the Partnership is not aware of 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.

Minority interest in income was $2,234,000 in 1995 compared to $2,173,000
in 1994, representing an increase of $61,000, or 3%. This increase was
primarily the result of improved operations at the Partnership's mini-warehouse
facilities which are owned jointly with PSI.

YEAR ENDED DECEMBER 31, 1994 COMPARED TO YEAR ENDED DECEMBER 31, 1993:

The Partnership's net income in 1994 was $2,097,000 compared to net income
of $2,005,000 in 1993, representing an increase of $92,000, or 5%. This increase
was primarily due to improved property operations at the Partnership's mini-
warehouse facilities partially offset by reduced property operations at the
Partnership's business park facilities combined with an increase in minority
interest in income for those properties held jointly with PSI.

11
<PAGE>

Property net operating income (rental income less cost of operations and
management fees and excluding depreciation expense) increased approximately
$196,000 or 3% in 1994 compared to 1993, as rental income increased by $419,000
or 4%, and cost of operations (including management fees) increased by $223,000
or 5%.

Rental income for the Partnership's mini-warehouse operations was
$10,368,000 in 1994 compared to $9,859,000 in 1993, representing an increase of
$509,000, or 5%. The increase in rental income was primarily attributable to
increased occupancy levels at the mini-warehouse facilities combined with
increased rental rates. The weighted average occupancy levels at the mini-
warehouse facilities were 88% in 1994 compared to 87% in 1993. The monthly
average realized rent per square foot for the mini-warehouse facilities was $.58
in 1994 compared to $.56 in 1993. Costs of operations (including management
fees) increased $208,000 or 6%, to $3,906,000 in 1994 from $3,698,000 in 1993.
Accordingly, for the Partnership's mini-warehouse operations, property net
operating income increased by $301,000 or 5% from $6,161,000 in 1993 to
$6,462,000 in 1994.

Rental income for the Partnership's business park operations was $1,794,000
in 1994 compared to $1,884,000 in 1993, representing a decrease of $90,000 or
5%. The decrease in rental income was primarily attributable to reduced rental
rates. The weighted average occupancy level at the business park facilities was
97% in both 1994 and 1993. The monthly average realized rent per square foot
for the business park facilities was $.50 in 1994 compared to $.53 in 1993.
Cost of operations (including management fees) increased $15,000 or 2% to
$870,000 in 1994 from $855,000 in 1993. Accordingly, for the Partnership's
business park facilities, property net operating income decreased by $105,000 or
10% from $1,029,000 in 1993 to $924,000 in 1994.

Minority interest in income was $2,173,000 in 1994 compared to $2,089,000
in 1993, representing an increase of $84,000, or 4%. This increase was
primarily the result of improved operations at the Partnership's mini-warehouse
facilities which are owned jointly with PSI.

Liquidity and Capital Resources
- -------------------------------

The Partnership has adequate sources of cash to finance its operations,
both on a short-term and long-term basis, primarily by internally generated cash
from property operations and existing cash reserves. At December 31, 1995, the
Partnership had cash and cash equivalents totaling $2,054,000.

Cash flows from operating activities ($7,763,000 for the year ended
December 31, 1995) have been sufficient to meet all current obligations of the
Partnership. Total capital improvements were $1,045,000, $1,122,000, and
$844,000 in 1995, 1994 and 1993, respectively. The increase in 1995 verses 1993
is mostly due to various repair and refurbishment projects, including work on
parking lot and driveway, heating, ventilation, and air conditioning units,
roof, and paint at the Signal Hill, California and Tempe, Arizona business park
facilities for approximately $335,000. The increase in 1994 verses 1993 is due
to the installation of new air conditioning systems at two of the Houston, Texas
mini-warehouse facilities for approximately $375,000. During 1996, the
Partnership anticipates approximately $833,000 of capital improvements
(including PSI's joint venture share of $193,000). During 1995, the
Partnership's property manager commenced a program to enhance the visual
appearance of the mini-warehouse facilities managed by it. Such enhancements
will include new signs, exterior color schemes, and improvements to the rental
offices. Included in the 1996 capital improvement budget are estimated costs of
$145,000 for such enhancements.

The Partnership expects to continue making quarterly distributions. Total
distributions paid to the General Partners and the limited partners (including
per Unit amounts) for 1995 and prior years were as follows:

Total Per Unit
---------- --------
<S> <C> <C>
1995 $4,007,000 $23.80
1994 4,007,000 23.80
1993 3,265,000 19.40
1992 3,026,000 17.97
1991 4,041,000 24.00
1990 3,523,000 20.93
1989 3,368,000 20.00
</TABLE>

12
<PAGE>

The Partnership, in prior years, made distributions based on anticipated
operating cash flows. Beginning in the second quarter of 1989, the distribution
level was lowered to a level supported by current operating cash flow after
capital improvements and scheduled debt service. The General Partners
distributed, concurrently with the distributions for the fourth quarter of 1991,
a portion of the operating reserve of the Partnership and adjusted the on-going
distribution level. The operating reserve that was distributed was estimated at
$4.00 per Unit.

The 1996 distribution level is estimated to be $23.80 per Unit, assuming no
material change in property operations.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
-------------------------------------------

The Partnership's financial statements are included elsewhere herein.
Reference is made to the Index to Consolidated Financial Statements and
Financial Statement Schedules in Item 14(a).

ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
----------------------------------------------------

None.

13
<PAGE>

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE PARTNERSHIP.
---------------------------------------------------

The Partnership has no directors or executive officers.

The Partnership's General Partners are PSI and B. Wayne Hughes. PSI,
acting through its directors and executive officers, and Mr. Hughes manage and
make investment decisions for the Partnership. The Partnership's properties are
operated by PSI and PSCP, a subsidiary of PSI.

The names of all directors and executive officers of PSI, the offices held
by each of them with PSI, and their ages and business experience during the past
five years are as follows:

Name Positions with PSI
- ------------------------ --------------------------------------------------
<S> <C>
B. Wayne Hughes Chairman of the Board and Chief Executive Officer
Harvey Lenkin President and Director
Ronald L. Havner, Jr. Senior Vice President and Chief Financial Officer
Hugh W. Horne Senior Vice President
Obren B. Gerich Senior Vice President
Marvin M. Lotz Senior Vice President
Mary Jayne Howard Senior Vice President
David Goldberg Senior Vice President and General Counsel
John Reyes Vice President and Controller
Sarah Hass Vice President and Secretary
Robert J. Abernethy Director
Dann V. Angeloff Director
William C. Baker Director
Uri P. Harkham Director
Berry Holmes Director
</TABLE>

B. Wayne Hughes, age 62, a general partner of the Partnership, has been a
director of PSI since its organization in 1980 and was President and Co-Chief
Executive Officer from 1980 until November 1991 when he became Chairman of the
Board and sole Chief Executive Officer. Mr. Hughes has been a director of
Storage Properties, Inc. ("SPI"), a real estate investment trust whose
investment adviser is PSI, since 1989. Since 1990, Mr. Hughes has been Chairman
of the Board of Public Storage Properties X, Inc., Public Storage Properties XI,
Inc., Public Storage Properties XII, Inc., Public Storage Properties XIV, Inc.,
Public Storage Properties XV, Inc., Public Storage Properties XVI, Inc., Public
Storage Properties XVII, Inc., Public Storage Properties XVIII, Inc., Public
Storage Properties XIX, Inc., Public Storage Properties XX, Inc., Partners
Preferred Yield, Inc., Partners Preferred Yield II, Inc. and Partners Preferred
Yield III, Inc. (collectively, the "Public Storage Properties REITs"), real
estate investment trusts organized by affiliates of PSMI. Mr. Hughes has been
active in the real estate investment field for over 25 years.

Harvey Lenkin, age 59, became President and a director of PSI in November
1991. He has been President of the Public Storage Properties REITs since 1990.
He was President of PSMI from January 1978 until September 1988, when he became
Chairman of the Board of PSMI and assumed overall responsibility for investment
banking and investor relations. In 1989, Mr. Lenkin became President and a
director of SPI.

Ronald L. Havner Jr., age 38, a certified public accountant, became an
officer of PSI in 1990, Chief Financial Officer in November 1991 and Senior Vice
President of PSI in November 1995. He was an officer of PSMI from 1986 to 1995
and Chief Financial Officer of PSMI and its affiliates from 1991 to November
1995. Mr. Havner has been an officer of SPI since 1989 and Chief Financial
Officer of SPI since November 1991. He has been a Vice President of the Public
Storage Properties REITS since 1990 and was Controller from 1990 to November
1995 when he became Chief Financial Officer.

14
<PAGE>

Hugh W. Horne, age 51, has been a Vice President of PSI since 1980 and was
Secretary of PSI from 1980 until February 1992 and became Senior Vice President
of PSI in November 1995. He was an officer of PSMI from 1973 to November 1995.
Mr. Horne has been a Vice President of SPI since 1989 and of the Public Storage
Properties REITs since 1993. He is responsible for managing all aspects of
property acquisition for PSI.

Obren B. Gerich, age 56, a certified public accountant and certified
financial planner, has been a Vice President of PSI since 1980 and became Senior
Vice President of PSI in November 1995. He was Chief Financial Officer of PSI
until November 1991. Mr. Gerich was an officer of PSMI from 1975 to November
1995. Mr. Gerich has been Vice President and Secretary of SPI since 1989 and
was Chief Financial Office of SPI until November 1991. He has been Vice
President and Secretary of the Public Storage Properties REITS since 1990 and
was Chief Financial Officer until November 1995.

Marvin M. Lotz, age 53, has had overall responsibility for Public Storage's
mini-warehouse operations since 1988. He became a Senior Vice President of PSI
in November 1995. Mr. Lotz was an officer of PSMI with responsibility for
property acquisitions from 1983 until 1988.

Mary Jayne Howard, age 50, has had overall responsibility for Public
Storage's commercial property operations since December 1985. She became a
Senior Vice President of PSI in November 1995.

David Goldberg, age 46, joined PSMI's legal staff in June 1991, rendering
services on behalf of PSI and PSMI. He became a Senior Vice President and
General Counsel of PSI in November 1995. From December 1982 until May 1991, he
was a partner in the law firm of Sachs & Phelps, then counsel to PSI and PSMI.

John Reyes, age 35, a certified public accountant, joined PSMI in 1990 and
has been the Controller of PSI since 1992. He became a Vice President of PSI in
November 1995. From 1983 to 1990, Mr. Reyes was employed by Ernst & Young.

Sarah Hass, age 40, became Secretary of PSI in February 1992. She became a
Vice President of PSI in November 1995. She joined PSMI's legal department in
June 1991, rendering services on behalf of PSI and PSMI. From 1987 until May
1991, her professional corporation was a partner in the law firm of Sachs &
Phelps, then counsel to PSI and PSMI, and from April 1986 until June 1987, she
was associated with that firm, practicing in the area of securities law. From
September 1979 until September 1985, Ms. Hass was associated with the law firm
of Rifkind & Sterling, Incorporated.

Robert J. Abernethy, age 55, is President of American Standard Development
Company and of Self-Storage Management Company, which develop and operate mini-
warehouses. Mr. Abernethy has been a director of PSI since its organization.
He is a member of Johns Hopkins University and of the Los Angeles County
Metropolitan Transportation Authority and a former member of the board of
directors of the Metropolitan Water District of Southern California.

Dann V. Angeloff, age 60, is President of the Angeloff Company, a corporate
financial advisory firm. The Angeloff Company has rendered, and is expected to
continue to render, financial advisory and securities brokerage services for
PSI. Mr. Angeloff is the general partner of a limited partnership that owns a
mini-warehouse operated by PSI and which secures a note owned by PSI. Mr.
Angeloff has been a director of PSI since its organization. He is a director of
Compensation Resource Group, Datametrics Corporation, Nicholas/Applegate Growth
Equity Fund, Nicholas/Applegate Investment Trust, Royce Medical Company, Seda
Specialty Packaging Corp., and SPI.

William C. Baker, age 62, became a director of PSI in November 1991. From
April 1993 through May 1995, Mr. Baker was President of Red Robin International,
Inc., an operator and franchiser of casual dining restaurants in the United
States and Canada. Since January 1992, he has been Chairman and Chief Executive
Officer of Carolina Restaurant Enterprises, Inc., a franchisee of Red Robin
International, Inc. From 1976 to 1988, he was a principal shareholder and
Chairman and Chief Executive Officer of Del Taco, Inc., an operator and
franchiser of fast food

15
<PAGE>

restaurants in California. Mr. Baker is a director of Santa Anita Realty
Enterprises, Inc., Santa Anita Operating Company and Callaway Golf Company.

Uri P. Harkham, age 47, became a director of PSI in March 1993. Mr.
Harkham has been the President and Chief Executive Officer of the Jonathan
Martin Fashion Group, which specializes in designing, manufacturing and
marketing women's clothing, since its organization in 1976. Since 1978, Mr.
Harkham has been the Chairman of the Board of Harkham Properties, a real estate
firm specializing in buying and managing fashion warehouses in Los Angeles and
Australia.

Berry Holmes, age 65, is a private investor. Mr. Holmes has been a
director of PSI since its organization. He was President and a director of
Financial Corporation of Santa Barbara and Santa Barbara Savings and Loan
Association through 1983 and was a consultant with Santa Barbara Savings and
Loan Association during 1984. Mr. Holmes is a director of SPI.

Pursuant to Articles 16 and 17 of the Partnership's Amended and Restated
Agreement of Limited Partnership (the "Partnership Agreement"), a copy of which
is included in the Partnership's prospectus included in the Partnership's
Registration Statement, File No. 2-98968, each of the General Partners
continues to serve until (i) death, insanity, insolvency, bankruptcy or
dissolution, (ii) withdrawal with the consent of the other general partner and a
majority vote of the limited partners, or (iii) removal by a majority vote of
the limited partners.

Each director of PSI serves until he resigns or is removed from office by
PSI, and may resign or be removed from office at any time with or without cause.
Each officer of PSI serves until he resigns or is removed by the board of
directors of PSI. Any such officer may resign or be removed from office at any
time with or without cause.

There have been no events under any bankruptcy act, no criminal
proceedings, and no judgments or injunctions material to the evaluation of the
ability of any director or executive officer of PSI during the past five years.

ITEM 11. EXECUTIVE COMPENSATION.
----------------------

The Partnership has no subsidiaries, directors or officers. See Item 13
for a description of certain transactions between the Partnership and the
General Partners and their affiliates.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
--------------------------------------------------------------

(a) At February 29, 1996, the following entities owned 5% or more of the
Units of the Partnership:

Title Amount of Percent
of Name and Address of Beneficial of
Class Beneficial Owner Ownership Class
- ---------------- ------------------------- ---------- -------
<S> <C> <C> <C>
Units of Limited Public Storage, Inc.
Partnership 600 North Brand Blvd.
Interest Glendale, California 91203 76,670 units 51.11%
</TABLE>

The Partnership is not aware of any other beneficial owners of more than 5%
of the Units.

(b) The Partnership has no officers and directors.

The General Partners (or their predecessor-in-interest) have contributed
$747,000 to the capital of the Partnership representing 1% of the aggregate
capital contributions and as a result participate in the distributions to the
limited partners and in the Partnership's profits and losses in the same
proportion that

16
<PAGE>

the general partners' capital contribution bears to the total capital
contribution. Information regarding ownership of the Units by PSI, a General
Partner, is set forth under section (a) above.

(c) The Partnership knows of no contractual arrangements, the operation of
the terms of which may at a subsequent date result in a change in control of the
Partnership, except for articles 16, 17 and 21.1 of the Partnership's Amended
Certificate and Agreement of Limited Partnership, a copy of which is included in
the Partnership's prospectus included in the Partnership's Registration
Statement File No. 2-98968. Those articles provide, in substance, that the
limited partners shall have the right, by majority vote, to remove a general
partner and that a general partner may designate a successor with the consent of
the other general partner and a majority of the limited partners.

The Partnership owns interests in 34 properties, 32 of such properties are
held in a general partnership comprised of the Partnership and PSI. Under the
terms of the partnership agreement relating to the ownership of the properties,
PSI has the right to compel a sale of each property at any time after seven
years from the date of acquisition at not less than its independently determined
fair market value provided the Partnership receives its share of the net sales
proceeds solely in cash. As of December 31, 1995, PSI has the right to require
the Partnership to sell all of the joint venture properties on these terms.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
----------------------------------------------
The Partnership Agreement provides that the General Partners and their
affiliates are entitled to the following compensation:

1. Incentive distributions equal to 10% of Cash Flow from Operations.
2. Provided the limited partners have received distributions equal to 100%
of their investment plus a cumulative 8% per year (not compounded) on
their investment (reduced by distributions other than from Cash Flow
from Operations), subordinated incentive distributions equal to 15% of
remaining Cash from Sales or Refinancings.
3. Provided the limited partners have received distributions equal to 100%
of their capital contributions plus a cumulative 6% per year (not
compounded) on their investment (reduced by distributions other than
distributions from Cash Flow from Operations), brokerage commissions at
the lesser of 3% of the sales price of a property or 50% of a
competitive commission.

During 1995, approximately $401,000 was paid to PSI with respect to items
1, 2, and 3 above. The Partnership owns interests in 34 properties; 32 of such
properties are held in a general partnership comprised of the Partnership and
PSI.

The Partnership has Management Agreements with PSI (as successor-in-
interest to PSMI) and PSCP. Under the Management Agreements, the Partnership
pays PSI (and previously paid PSMI) a fee of 6% of the gross revenues of the
mini-warehouse spaces operated for the Partnership, and pays PSCP a fee of 5% of
the gross revenues of the Partnership's non-mini-warehouse space. During 1995,
the Partnership paid or accrued fees of $560,000 to PSMI, $82,000 to PSI, and
$96,000 to PSCP pursuant to the Management Agreements.

17
<PAGE>

PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.
---------------------------------------------------------------

(a) List of Documents filed as part of the Report.
1. Financial Statements: See Index to Consolidated Financial
Statements and Financial Statement Schedules.
2. Financial Statement Schedules: See Index to Consolidated
Financial Statements and Financial Statement Schedules.
3. Exhibits: See Exhibit Index contained herein.

(b) Reports on Form 8-K:
None

18
<PAGE>

PS PARTNERS VI, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP
INDEX TO EXHIBITS

3.1 Amended and Restated Agreement of Limited Partnership. Previously
filed with the Securities and Exchange Commission as an Exhibit to the
Storage Equities, Inc. Registration Statement No. 33-43750 and
incorporated herein by reference.

10.1 Amended Management Agreement dated February 21, 1995 between Storage
Equities, Inc. and Public Storage Management, Inc. Previously filed
with the Securities and Exchange Commission as an exhibit to the
Partnership's Annual Report on Form 10-K for the year ended December
31, 1994, and incorporated herein by reference.

10.2 Amended Management Agreement dated February 21, 1995 between Storage
Equities, Inc, Inc. and Public Storage Commercial Properties Group,
Inc. Previously filed with the Securities and Exchange Commission as
an exhibit to the Partnership's Annual Report on Form 10-K for the year
ended December 31, 1994, and incorporated herein by reference.

10.3 Participation Agreement dated as of October 18, 1985, among Storage
Equities, Inc., the Partnership, Public Storage, Inc., B. Wayne Hughes
and Kenneth Q. Volk, Jr. Previously filed with the Securities and
Exchange Commission as an exhibit to Storage Equities, Inc.'s Annual
Report on Form 10-K dated November 30, 1985 and incorporated herein by
reference.

27 Financial data schedule. filed herewith.

19
<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Partnership has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

PS PARTNERS VI, LTD.,
a California Limited Partnership
Dated: March 25, 1996 By: Public Storage, Inc., General Partner

By: /s/ B Wayne Hughes
---------------------------------------
B. Wayne Hughes, Chairman of the Board

By: /s/ B Wayne Hughes
---------------------------------------
B. Wayne Hughes, General Partner

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Partnership in the capacities and on the dates indicated.

<TABLE>
<CAPTION>
Signature Capacity Date
--------- -------- -----
<S> <C> <C>
/s/ B Wayne Hughes Chairman of the Board and March 25, 1996
- ------------------------------- Chief Executive Officer of
B. Wayne Hughes Public Storage, Inc. and
General Partner (principal
executive officer)

/s/ Harvey Lenkin President and Director March 25, 1996
- ------------------------------- of Public Storage, Inc.
Harvey Lenkin

/s/ Ronald L. Havner, Jr. Senior Vice President and March 25, 1996
- ------------------------------- Chief Financial Officer of
Ronald L. Havner, Jr. Public Storage, Inc.
(principal financial officer)

/s/ John Reyes Vice President and Controller March 25, 1996
- ------------------------------- of Public Storage, Inc.
John Reyes (principal accounting officer)

/s/ Robert J. Abernethy Director of Public Storage, Inc. March 25, 1996
- -------------------------------
Robert J. Abernethy

/s/ Dann V. Angeloff Director of Public Storage, Inc. March 25, 1996
- -------------------------------
Dann V. Angeloff

/s/ William C. Baker Director of Public Storage, Inc. March 25, 1996
- -------------------------------
William C. Baker

/s/ Uri P. Harkham Director of Public Storage, Inc. March 25, 1996
- -------------------------------
Uri P. Harkham

/s/ Berry Holmes Director of Public Storage, Inc. March 25, 1996
- -------------------------------
Berry Holmes
</TABLE>

20
<PAGE>

PS PARTNERS VI, LTD.
a California Limited Partnership

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT SCHEDULES

(Item 14 (a))
<TABLE>
<CAPTION>
Page
References
-----------
<S> <C>
Report of Independent Auditors F-1

Consolidated Financial Statements and Schedules:

Consolidated Balance Sheets as of December 31,
1995 and 1994 F-2

For the years ended December 31, 1995, 1994 and 1993:

Consolidated Statements of Income F-3

Consolidated Statements of Partners' Equity F-4

Consolidated Statements of Cash Flows F-5 - F-6

Notes to Consolidated Financial Statements F-7 - F-9

Schedule

III - Real Estate and Accumulated Depreciation F-10 - F-13

</TABLE>

All other schedules have been omitted since the required information is not
present or not present in amounts sufficient to require submission of the
schedule, or because the information required is included in the consolidated
financial statements or the notes thereto.

21
<PAGE>

Report of Independent Auditors

The Partners
PS Partners VI, Ltd., a California Limited Partnership

We have audited the consolidated balance sheets of PS Partners VI, Ltd., a
California Limited Partnership, as of December 31, 1995 and 1994 and the related
consolidated statements of operations, partners' equity, and cash flows for each
of the three years in the period ended December 31, 1995. Our audits also
included the financial statement schedule listed in the Index at Item 14(a).
These financial statements and schedule are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements and schedule based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of PS
Partners VI, Ltd., a California Limited Partnership, at December 31, 1995 and
1994, and the consolidated results of its operations and its cash flows for each
of the three years in the period ended December 31, 1995, in conformity with
generally accepted accounting principles. Also, in our opinion, the related
financial statement schedule, when considered in relation to the basic financial
statements taken as a whole, presents fairly in all material respects the
information set forth therein.

ERNST & YOUNG LLP

Los Angeles, CA
March 11, 1996

F-1
<PAGE>

PS PARTNERS VI, LTD.,
a California Limited Partnership
CONSOLIDATED BALANCE SHEETS
December 31, 1995 and 1994
<TABLE>
<CAPTION>

1995 1994
------------ ------------
<S> <C> <C>
ASSETS

Cash and cash equivalents $ 2,054,000 $ 1,407,000

Rent and other receivables 53,000 61,000

Real estate facilities, at cost:
Land 24,282,000 24,282,000
Buildings and equipment 66,819,000 65,774,000
------------ ------------
91,101,000 90,056,000

Less accumulated depreciation (25,636,000) (22,468,000)
------------ ------------
65,465,000 67,588,000

Other assets 145,000 138,000
------------ ------------
$ 67,717,000 $ 69,194,000
============ ============

LIABILITIES AND PARTNERS' EQUITY

Accounts payable $ 1,063,000 $ 753,000

Advance payments from renters 373,000 400,000

Minority interest in general
partnerships 23,596,000 23,426,000

Partners' equity:
Limited partners' equity, $500
per unit, 150,000 units
authorized, issued and
outstanding 42,161,000 44,071,000

General partners' equity 524,000 544,000
------------ ------------
Total partners' equity 42,685,000 44,615,000
------------ ------------
$ 67,717,000 $ 69,194,000
============ ============

</TABLE>

See accompanying notes.

F-2
<PAGE>

PS PARTNERS VI, LTD.,
a California Limited Partnership
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31, 1995, 1994, and 1993

<TABLE>
<CAPTION>
1995 1994 1993
----------- ----------- -----------
<S> <C> <C> <C>
REVENUE:

Rental income $12,612,000 $12,162,000 $11,743,000
Interest income 97,000 48,000 38,000
----------- ----------- -----------
12,709,000 12,210,000 11,781,000
----------- ----------- -----------

COSTS AND EXPENSES:

Cost of operations 4,099,000 4,065,000 3,869,000
Management fees 738,000 711,000 684,000
Depreciation and amortization 3,168,000 3,033,000 3,011,000
Interest expense - - 6,000
Administrative 130,000 131,000 117,000
Environmental costs 263,000 - -
----------- ----------- -----------
8,398,000 7,940,000 7,687,000
----------- ----------- -----------

Income before minority interest 4,311,000 4,270,000 4,094,000

Minority interest in income 2,234,000 2,173,000 2,089,000
----------- ----------- -----------

NET INCOME $ 2,077,000 $ 2,097,000 $ 2,005,000
=========== =========== ===========

Limited partners' share of net income
($11.07, $11.19, and $11.08 per unit
in 1995, 1994, and 1993, respectively) $ 1,660,000 $ 1,679,000 $ 1,662,000

General partners' share of net income 417,000 418,000 343,000
----------- ----------- -----------
$ 2,077,000 $ 2,097,000 $ 2,005,000
=========== =========== ===========

</TABLE>

See accompanying notes.

F-3
<PAGE>

PS PARTNERS VI, LTD.,
a California Limited Partnership
CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY
For the years ended December 31, 1995, 1994, and 1993

<TABLE>
<CAPTION>
Limited General
Partners Partners Total
----------- --------- -----------
<S> <C> <C> <C>
Balances at December 31, 1992 $47,210,000 $ 575,000 $47,785,000

Net income 1,662,000 343,000 2,005,000

Distributions (2,910,000) (355,000) (3,265,000)
----------- --------- -----------

Balances at December 31, 1993 45,962,000 563,000 46,525,000

Net income 1,679,000 418,000 2,097,000

Distributions (3,570,000) (437,000) (4,007,000)
----------- --------- -----------

Balances at December 31, 1994 44,071,000 544,000 44,615,000

Net income 1,660,000 417,000 2,077,000

Distributions (3,570,000) (437,000) (4,007,000)
----------- --------- -----------

Balances at December 31, 1995 $42,161,000 $ 524,000 $42,685,000
=========== ========= ===========

</TABLE>

See accompanying notes.

F-4
<PAGE>

PS PARTNERS VI, LTD.,
a California Limited Partnership
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 1995, 1994, and 1993

<TABLE>
<CAPTION>
1995 1994 1993
----------- ----------- -----------
<S> <C> <C> <C>
Cash flows from operating activities:

Net income $ 2,077,000 $ 2,097,000 $ 2,005,000

Adjustments to reconcile net income
to net cash provided by operating
activities:

Depreciation and amortization 3,168,000 3,033,000 3,011,000
Decrease (increase) in rent and
other receivables 8,000 (1,000) 76,000
(Increase) decrease in other assets (7,000) 7,000 (91,000)
Increase (decrease) in accounts
payable 310,000 (76,000) (165,000)
(Decrease) increase in advance
payments from renters (27,000) (30,000) 23,000
Minority interest in income 2,234,000 2,173,000 2,089,000
----------- ----------- -----------
Total adjustments 5,686,000 5,106,000 4,943,000
----------- ----------- -----------
Net cash provided by operating
activities 7,763,000 7,203,000 6,948,000
----------- ----------- -----------
Cash flows from investing activities:

Additions to real estate facilities (1,045,000) (1,122,000) (844,000)
----------- ----------- -----------
Net cash used in investing
activities (1,045,000) (1,122,000) (844,000)
----------- ----------- -----------

Cash flows from financing activities:

Principal payments on mortgage note
payable - - (324,000)
Distributions to holder of minority
interest (2,064,000) (1,870,000) (1,730,000)
Distributions to partners (4,007,000) (4,007,000) (3,265,000)
----------- ----------- -----------
Net cash used in financing
activities (6,071,000) (5,877,000) (5,319,000)
----------- ----------- -----------
Net increase in cash and cash
equivalents 647,000 204,000 785,000
Cash and cash equivalents at the
beginning of the year 1,407,000 1,203,000 418,000
----------- ----------- -----------
Cash and cash equivalents at the end of
the year $ 2,054,000 $ 1,407,000 $ 1,203,000
=========== =========== ===========

</TABLE>

See accompanying notes.

F-5
<PAGE>

PS PARTNERS VI, LTD.,
a California Limited Partnership
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 1995, 1994, and 1993
(Continued)

<TABLE>
<CAPTION>
1995 1994 1993
------ ------ ------------
<S> <C> <C> <C>
Supplemental schedule of noncash
investing and financing activities:

Decrease in real estate facilities
held pending foreclosure, net
upon final foreclosure $ - $ - $ 4,680,000

Decrease in mortgage notes payable
upon foreclosure of related
collateral - - (4,680,000)

</TABLE>

See accompanying notes.

F-6
<PAGE>

PS PARTNERS VI, LTD.,
a California Limited Partnership
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995

1. Summary of Significant Accounting Policies and Partnership Matters
------------------------------------------------------------------

Description of Partnership
--------------------------

PS Partners VI, Ltd., a California Limited Partnership (the
"Partnership") was formed with the proceeds of an interstate public offering.
PSI Associates II, Inc. ("PSA"), an affiliate of Public Storage Management,
Inc., organized the Partnership along with B. Wayne Hughes ("Hughes"). In
September 1993, Storage Equities, Inc,, now known as Public Storage, Inc.
("PSI"), a California corporation, acquired the interest of PSA relating to
its general partner capital contribution in the Partnership and was
substituted as a co-general partner in place of PSA.

In 1995, there was a series of mergers among Public Storage Management,
Inc. (which was the Partnership's mini-warehouse operator), Public Storage,
Inc. and their affiliates (collectively, "PSMI"), culminating in the November
16, 1995 merger (the "PSMI Merger") of PSMI into Storage Equities, Inc. In
the PSMI merger, Storage Equities, Inc.'s name was changed to Public Storage,
Inc., and it acquired substantially all of PSMI's United States real estate
operations, and became the operator of the Partnership's mini-warehouse
properties.

The Partnership has invested in existing mini-warehouse storage
facilities which offer self-service storage spaces for lease, usually on a
month-to-month basis, to the general public. The Partnership has also
invested in an existing office building and two business park facilities
which offer industrial and office space for lease.

The Partnership has ownership interests in 34 properties; 32 of which
are owned jointly through 14 general partnerships (the "Joint Ventures") with
PSI. For tax administrative efficiency, the Joint Ventures were subsequently
consolidated into a single general partnership. The Partnership is the
managing general partner of the Joint Ventures, with ownership interests in
the Joint Ventures ranging from 50% to 90%.

Basis of Presentation
---------------------

The consolidated financial statements include the accounts of the
Partnership and the Joint Ventures. PSI's ownership interest in the Joint
Ventures is shown as minority interest in general partnerships in the
accompanying consolidated balance sheets. All significant intercompany
balances and transactions have been eliminated.

Minority interest in income represents PSI's share of net income with
respect to the Joint Ventures. Under the terms of the partnership agreements
all depreciation and amortization with respect to each Joint Venture is
allocated solely to the Partnership until the limited partners recover their
initial capital contribution. Thereafter, all depreciation and amortization
is allocated solely to PSI until it recovers its initial capital
contribution. All remaining depreciation and amortization is allocated to the
Partnership and PSI in proportion to their ownership percentages. No amounts
have been allocated to PSI with respect to this provision.

Under the terms of the partnership agreements, PSI has the right to
compel the sale of each property in the general partnerships at any time
after seven years from the date of acquisition at not less than its
independently determined fair market value provided the Partnership receives
its share of the net proceeds solely in cash. PSI's right to require the
Partnership to sell all of the properties owned jointly with the Partnership
became exercisable during 1993.

Depreciation and Amortization
-----------------------------

The Partnership depreciates the buildings and equipment on the straight-
line method over estimated useful lives of 25 and 5 years, respectively.
Leasing commissions relating to business park properties are expensed when
incurred.

F-7
<PAGE>
PS PARTNERS VI, LTD.,
a California Limited Partnership
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995

1. Summary of Significant Accounting Policies and Partnership Matters
------------------------------------------------------------------
(continued)
-----------

Revenue Recognition
-------------------

Property rents are recognized as earned.

Allocation of Net Income
------------------------

The General Partners' share of net income consists of an amount
attributable to their 1% capital contribution and an additional percentage of
cash flow (as defined, see Note 2) which relates to the General Partners'
share of cash distributions as set forth in the Partnership Agreement. All
remaining net income is allocated to the limited partners.

Per Unit Data
-------------

Per unit data is based on the number of limited partner units (150,000)
outstanding during the periods presented.

Environmental Cost
------------------

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 fourth quarter of 1995, an
independent environmental consulting firm completed environmental assessments
on the Partnership's properties to evaluate the environmental condition of,
and potential environmental liabilities of, such properties. Based on the
assessments, the Partnership believes that it is probable that it will incur
costs totaling $217,000 (in addition, approximately $46,000 was expended for
the assessments) for known environmental remediation requirements, for which
the Partnership has accrued and expensed at the end of 1995. The Partnership
expects to expend these funds over the next twelve months. Although there can
be no assurance, the Partnership is not aware of 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.

Cash Distributions
------------------

The Partnership Agreement provides for quarterly distributions of cash
flow from operations (as defined). Cash distributions per limited partner
unit were $23.80, $23.80 and $19.40 for 1995, 1994 and 1993, respectively.

Cash and Cash Equivalents
-------------------------

For financial statement purposes, the Partnership considers all highly
liquid investments purchased with a maturity of three months or less to be
cash equivalents.

2. General Partners' Equity
------------------------

The General Partners have a 1% interest in the Partnership. In addition,
the General Partners have a 10% interest in cash distributions attributable
to operations, exclusive of distributions attributable to sales and
refinancing proceeds.

Proceeds from sales and refinancings will be distributed entirely to the
limited partners until the limited partners recover their investment plus a
cumulative 8% annual return (not compounded); thereafter, the General
Partners have a 15% interest in remaining proceeds.

3. Related Party Transactions
--------------------------

PSI operates the Partnership's mini-warehouses for a "management fee"
equal to 6% of gross revenue (as defined) and Public Storage Commercial
Properties Group, Inc. operates the commercial properties for a "management
fee" equal to 5% of gross revenue (as defined).

F-8
<PAGE>
PS PARTNERS VI, LTD.,
a California Limited Partnership
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995

3. Related Party Transactions (continued)
--------------------------------------

PSI has a 95% economic interest, and Hughes and family members of Hughes
have a 5% economic interest in PSCP.

4. Taxes Based on Income
---------------------

Taxes based on income are the responsibility of the individual partners
and, accordingly, the Partnership's consolidated financial statements do not
reflect a provision for such taxes.

Taxable net income was $1,724,000, $1,557,000 and $1,507,000 for the
years ended December 31, 1995, 1994 and 1993, respectively. The difference
between taxable income and book income is primarily related to timing
differences in depreciation expense.

F-9
<PAGE>

PS PARTNERS VI, LTD.
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION

<TABLE>
<CAPTION>
Costs
subsequent Gross Carrying Amount
Initial Cost to At December 31, 1995
---------------------- acquisition -------------------------------------------------

Date Building & Building & Building & Accumulated
Acquired Description Encumbrances Land improvements improvements Land improvements Total Depreciation

- ------------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Mini-
warehouse

4/86 Kirkham - 199,000 1,001,000 142,000 199,000 1,143,000 1,342,000 442,000

4/86 Reavis - 192,000 958,000 144,000 192,000 1,102,000 1,294,000 423,000

4/86 Fort Worth/East Loop - 196,000 804,000 157,000 196,000 961,000 1,157,000 357,000

6/86 Richlan Hills - 543,000 857,000 353,000 543,000 1,210,000 1,753,000 504,000

5/86 Sacramento/Franklin
Blvd. - 872,000 978,000 311,000 872,000 1,289,000 2,161,000 501,000

6/86 West Valley/So. 3600 - 208,000 1,552,000 211,000 208,000 1,763,000 1,971,000 668,000

7/86 West LA/Purdue Ave. - 2,415,000 3,585,000 284,000 2,415,000 3,869,000 6,284,000 1,464,000

7/86 Capital Heights/
Central Ave. - 649,000 3,851,000 249,000 649,000 4,100,000 4,749,000 1,565,000

10/86 Perleta/Fremont - 851,000 1,074,000 232,000 851,000 1,306,000 2,157,000 479,000

7/86 Pontiac/Dixie hwy. - 259,000 2,091,000 28,000 259,000 2,119,000 2,378,000 806,000

8/86 Laurel/Ft. Meade Rd. - 475,000 1,475,000 209,000 475,000 1,684,000 2,159,000 623,000

9/86 Kansas City/S. 44th. - 509,000 1,906,000 359,000 509,000 2,265,000 2,774,000 860,000
</TABLE>

F-10
<PAGE>

PS PARTNERS VI, LTD.
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION

<TABLE>
<CAPTION>
Costs
subsequent Gross Carrying Amount
Initial Cost to At December 31, 1995
---------------------- acquisition -------------------------------------------------

Date Building & Building & Building & Accumulated
Acquired Description Encumbrances Land improvements improvements Land improvements Total Depreciation

- ------------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/86 Birmingham/Highland - 89,000 786,000 78,000 89,000 864,000 953,000 317,000

10/86 Birmingham/Riverchase - 262,000 1,338,000 313,000 262,000 1,651,000 1,913,000 607,000

10/86 Birmingham/Eastwood - 166,000 1,184,000 144,000 166,000 1,328,000 1,494,000 482,000

10/86 Birmingham/Forestdale - 152,000 948,000 124,000 152,000 1,072,000 1,224,000 392,000

10/86 Birmingham/Centerpoint - 265,000 1,305,000 191,000 265,000 1,496,000 1,761,000 543,000

10/86 Birmingham/Roebuck
Plaza - 101,000 399,000 125,000 101,000 524,000 625,000 189,000

10/86 Birmingham/
Greensprings - 347,000 1,173,000 275,000 347,000 1,448,000 1,795,000 531,000

10/86 Birmingham/Hoover - 372,000 1,128,000 279,000 372,000 1,407,000 1,779,000 519,000

10/86 Birmingham/Midfield - 170,000 355,000 159,000 170,000 514,000 684,000 188,000

10/86 Birmingham/
Huntsville-Leeman - 158,000 992,000 212,000 158,000 1,204,000 1,362,000 432,000

10/86 Birmingham/
Huntsville-Drake - 253,000 1,172,000 196,000 253,000 1,368,000 1,621,000 500,000

10/86 Birmingham/Anniston - 59,000 566,000 105,000 59,000 671,000 730,000 263,000

10/86 Pilgrim/Monroe - 595,000 1,043,000 227,000 595,000 1,270,000 1,865,000 473,000

10/86 Pilgrim/I-45 - 704,000 1,146,000 437,000 704,000 1,583,000 2,287,000 556,000

10/86 Pilgrim/Rogerdale - 1,631,000 2,792,000 404,000 1,631,000 3,196,000 4,827,000 1,181,000

</TABLE>

F-11
<PAGE>

PS PARTNERS VI, LTD.
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION

<TABLE>
<CAPTION>
Costs
subsequent Gross Carrying Amount
Initial Cost to At December 31, 1995
---------------------- acquisition -------------------------------------------------

Date Building & Building & Building & Accumulated
Acquired Description Encumbrances Land improvements improvements Land improvements Total Depreciation

- ------------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/86 Pilgrim/Gessner - 1,032,000 1,693,000 276,000 1,032,000 1,969,000 3,001,000 721,000

10/86 Pilgrim/Richmond - 1,502,000 2,506,000 450,000 1,502,000 2,956,000 4,458,000 1,076,000

10/86 Pilgrim/Gulfton - 1,732,000 3,036,000 806,000 1,732,000 3,842,000 5,574,000 1,422,000

10/86 Pilgrim/West Park - 503,000 854,000 127,000 503,000 981,000 1,484,000 363,000

10/86 Jonesboro - 157,000 718,000 145,000 157,000 863,000 1,020,000 312,000

Business
Parks

3/86 Silvergate - 4,201,000 5,099,000 2,644,000 4,201,000 7,743,000 11,944,000 3,480,000

5/86 Signal Hill/Parkway - 2,463,000 4,837,000 1,221,000 2,463,000 6,058,000 8,521,000 2,397,000

----------------------------------------------------------------------------------------------------

$ - $24,282,000 $55,202,000 $11,617,000 $24,282,000 $66,819,000 $91,101,000 $25,636,000

====================================================================================================

</TABLE>

F-12
<PAGE>

PS PARTNERS VI, LTD.
A CALIFORNIA LIMITED PARTNERSHIP
REAL ESTATE RECONCILIATION
SCHEDULE III (CONTINUED)

(a) The following is a reconciliation of cost and related accumulated
depreciation.

GROSS CARRYING COST RECONCILIATION

<TABLE>
<CAPTION>
Years Ended December 31,
----------------------------------------
1995 1994 1993
----------------------------------------
<S> <C> <C> <C>
Balance at beginning of the period $90,056,000 $88,934,000 $88,090,000

Additions during the period:
Improvements, etc. 1,045,000 1,122,000 844,000

Deductions during the period:
Foreclosure of real estate - - -
----------------------------------------
Balance at the close of the period $91,101,000 $90,056,000 $88,934,000
========================================

</TABLE>

ACCUMULATED DEPRECIATION RECONCILIATION

Additions during the period:
Depreciation 3,168,000 3,005,000 3,017,000

Deductions during the period:
Foreclosure of real estate - - -
----------------------------------------
Balance at the close of the period $25,636,000 $22,468,000 $19,463,000
========================================
</TABLE>

(b) The aggregate cost of real estate for Federal income tax purposes is
$90,062,000.

F-13

<PAGE>

<ARTICLE> 5
<MULTIPLIER> 1

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 2,054,000
<SECURITIES> 0
<RECEIVABLES> 53,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,107,000
<PP&E> 91,101,000
<DEPRECIATION> (25,636,000)
<TOTAL-ASSETS> 67,717,000
<CURRENT-LIABILITIES> 1,436,000
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 42,685,000
<TOTAL-LIABILITY-AND-EQUITY> 67,717,000
<SALES> 12,612,000
<TOTAL-REVENUES> 12,709,000
<CGS> 4,837,000
<TOTAL-COSTS> 4,837,000
<OTHER-EXPENSES> 3,561,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,077,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,077,000
<EPS-PRIMARY> 11.07
<EPS-DILUTED> 0

</TABLE>