PS PARTNERS VI, LTD.
CONDENSED BALANCE SHEETS
September 30, December 31,
2000 1999
-----------------------------------
(Unaudited)
ASSETS
------
Cash and cash equivalents $3,180,000 $2,092,000
Rent and other receivables 16,000 5,000
Real estate facility, at cost:
Land 404,000 404,000
Buildings and equipment 2,889,000 2,887,000
-----------------------------------
3,293,000 3,291,000
Less accumulated depreciation (1,675,000) (1,560,000)
-----------------------------------
1,618,000 1,731,000
Investment in real estate entities 29,849,000 31,345,000
Other assets 6,000 4,000
-----------------------------------
$34,669,000 $35,177,000
===================================
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Accounts payable $113,000 $122,000
Advance payments from renters 16,000 10,000
Partners' equity:
Limited partners' equity, $500 per unit, 150,000
units authorized, issued and outstanding 34,098,000 34,598,000
General partner's equity 442,000 447,000
-----------------------------------
Total partners' equity 34,540,000 35,045,000
-----------------------------------
$34,669,000 $35,177,000
===================================
See accompanying notes.
2
PS PARTNERS VI, LTD.
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
REVENUE:
Rental income $157,000 $149,000 $457,000 $437,000
Equity in earnings of real estate entities 903,000 753,000 2,395,000 2,146,000
Interest income 53,000 26,000 131,000 68,000
----------------------------------------------------------------------
1,113,000 928,000 2,983,000 2,651,000
----------------------------------------------------------------------
COSTS AND EXPENSES:
Cost of operations 65,000 52,000 186,000 174,000
Management fees 9,000 9,000 27,000 26,000
Depreciation and amortization 39,000 37,000 115,000 109,000
Administrative 25,000 48,000 155,000 114,000
----------------------------------------------------------------------
138,000 146,000 483,000 423,000
----------------------------------------------------------------------
NET INCOME $975,000 $782,000 $2,500,000 $2,228,000
======================================================================
Limited partners' share of net income
($14.52 per unit in 2000 and
$11.67 per unit in 1999) $2,178,000 $1,750,000
General partner's share of net income 322,000 478,000
-----------------------------------
$2,500,000 $2,228,000
===================================
See accompanying notes.
3
PS PARTNERS VI, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
September 30,
-------------------------------------
2000 1999
-------------------------------------
Cash flows from operating activities:
Net income $2,500,000 $2,228,000
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 115,000 109,000
Increase in rent and other receivables (11,000) (3,000)
(Decrease) increase in other assets (2,000) 1,000
(Decrease) increase in accounts payable (9,000) 33,000
Increase in advance payments from renters 6,000 2,000
Equity in earnings of real estate entities (2,395,000) (2,146,000)
-------------------------------------
Total adjustments (2,296,000) (2,004,000)
-------------------------------------
Net cash provided by operating activities 204,000 224,000
-------------------------------------
Cash flows from investing activities:
Distributions from real estate entities 3,891,000 4,631,000
Additions to real estate facility (2,000) (11,000)
-------------------------------------
Net cash provided by investing activities 3,889,000 4,620,000
-------------------------------------
Cash flows from financing activities:
Distributions to partners (3,005,000) (4,605,000)
-------------------------------------
Net cash used in financing activities (3,005,000) (4,605,000)
-------------------------------------
Net increase in cash and cash equivalents 1,088,000 239,000
Cash and cash equivalents at the beginning of the period 2,092,000 2,388,000
-------------------------------------
Cash and cash equivalents at the end of the period $3,180,000 $2,627,000
=====================================
See accompanying notes.
4
PS PARTNERS VI, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(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, 1999.
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 September 30, 2000, the results of operations for the three and nine months ended September
30, 2000 and 1999 and cash flows for the nine months then ended.
3. The results of operations for the three and nine months ended September 30, 2000 are not necessarily
indicative of the results to be expected for the full year.
4. In January 1997, the Joint Venture, PSI, and other related partnerships transferred a total of 35
business parks to PS Business Parks, LP ("PSBPLP"), an operating partnership formed to own and operate
business parks in which PSI has a significant interest. Included among the properties transferred were
the Joint Venture's business parks in exchange for a partnership interest in PSBPLP. The general
partner of PSBPLP is PS Business Parks, Inc.
5. Summarized combined financial data with respect to the Real Estate Entities is as follows:
Nine Months Ended September 30,
------------------------------------
2000 1999
------------ ------------
Total revenues............................................... $122,327,000 $103,685,000
Minority interest in income.................................. $18,391,000 $10,769,000
Net income................................................... $37,890,000 $34,451,000
5
PS PARTNERS VI, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward Looking Statements
When used within this document, the words "expects," "believes," "anticipates," "should," "estimates,"
and similar expressions are intended to identify "forward-looking statements" within the meaning of that term in
Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities Exchange Act of 1934,
as amended. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors,
which may cause the actual results and performance of the Partnership to be materially different from those
expressed or implied in the forward-looking statements. Such factors include the impact of competition from new
and existing real estate facilities which could impact rents and occupancy levels at the real estate facilities
in which the Partnership has an interest; the Partnership's ability to effectively compete in the markets in
which it does business; the impact of the regulatory environment as well as national, state, and local laws and
regulations including, without limitation, those governing Partnerships; and the impact of general economic
conditions upon rental rates and occupancy levels at the real estate facilities in which the Partnership has an
interest.
Results of Operations
Three months ended September 30, 2000 compared to three months ended September 30, 1999:
Our net income for the three months ended September 30, 2000 was $975,000 compared to $782,000 for the
three months ended September 30, 1999, representing an increase of $193,000, or 24.7%. The increase was
primarily due to a decrease in depreciation expense allocated to us with respect to the Joint Venture, increased
interest income, decreased administrative expense, and our share of increased earnings of PSBPLP.
Property Operations
Rental income for our wholly-owned mini-warehouse property was $157,000 compared to $149,000 for the
three months ended September 30, 2000 and 1999, respectively, representing an increase of $8,000, or 5.4%. Cost
of operations (including management fees) increased $13,000, or 21.3%, to $74,000 from $61,000 for the three
months ended September 30, 2000 and 1999, respectively. Accordingly, for our wholly-owned mini-warehouse
property, property net operating income decreased by $5,000, or 5.7%, from $88,000 to $83,000 for the three
months ended September 30, 1999 and 2000, respectively.
6
Equity in Earnings of Real Estate Entities
Equity in earnings of real estate entities was $903,000 in the three months ended September 30, 2000 as
compared to $753,000 during the three months ended September 30, 1999, representing an increase of $150,000, or
19.9%. This was due primarily to a decrease in depreciation expense allocated to us with respect to the Joint
Venture and our share of increased earnings from PSBPLP.
Interest Income
Interest income increased by $27,000 from $26,000 for the three months ended September 30, 1999 to
$53,000 for the three months ended September 30, 2000, due to higher invested cash balances and interest rates.
Depreciation and Amortization
Depreciation and amortization increased $2,000, or 5.4%, from $37,000 to $39,000 for the three months
ended September 30, 1999 and 2000, respectively.
Administrative
Administrative expense decreased from $48,000 for the three months ended September 30, 1999 to $25,000
for the three months ended September 30, 2000, due primarily to lower professional fees.
Nine months ended September 30, 2000 compared to nine months ended September 30, 1999:
Our net income for the nine months ended September 30, 2000 was $2,500,000 compared to $2,228,000 for
the nine months ended September 30, 1999, representing an increase of $272,000, or 12.2%. The increase was
primarily due to a decrease in depreciation expense allocated to us with respect to the Joint Venture, increased
interest income, and our share of improved earnings of PSBPLP, offset partially by our share of decreased
property operations at the Mini-Warehouse Properties.
Property Operations
Rental income for our wholly-owned mini-warehouse property was $457,000 compared to $437,000 for the
nine months ended September 30, 2000 and 1999, respectively, representing an increase of $20,000, or 4.6%. Cost
of operations (including management fees) increased $13,000, or 6.5%, to $213,000 from $200,000 for the nine
months ended September 30, 2000 and 1999, respectively. Accordingly, for our wholly-owned mini-warehouse
7
property, property net operating income increased by $7,000, or 3.0%, from $237,000 to $244,000 for the nine
months ended September 30, 1999 and 2000, respectively.
Equity in Earnings of Real Estate Entities
Equity in earnings of real estate entities was $2,395,000 in the nine months ended September 30, 2000 as
compared to $2,146,000 during the nine months ended September 30, 1999, representing an increase of $249,000, or
11.6%. This was due primarily to a decrease in depreciation expense allocated to us with respect to the Joint
Venture and our share of improved earnings of PSBPLP offset partially by lower operating results at the Joint
Venture's mini-warehouse properties.
Interest Income
Interest income increased by $63,000, or 92.7%, from $68,000 for the nine months ended September 30,
1999 to $131,000 for the nine months ended September 30, 2000, due to higher invested cash balances and interest
rates.
Depreciation and Amortization
Depreciation and amortization increased $6,000, or 5.5%, from $109,000 to $115,000 for the nine months
ended September 30, 1999 and 2000, respectively.
Administrative
Administrative expense increased from $114,000 for the nine months ended September 30, 1999 to $155,000
for the nine months ended September 30, 2000, due primarily to higher state tax expense and the timing of
investor relations expense.
Supplemental Property Data
Most of our net income is from our share of the operating results of the Mini-Warehouse Properties.
Therefore, in order to evaluate our operating results, the General Partners analyze the operating performance of
the Mini-Warehouse Properties.
8
Three months ended September 30, 2000 compared to three months ended September 30, 1999:
Rental income for the Mini-Warehouse Properties was $3,281,000 compared to $3,227,000 for the three
months ended September 30, 2000 and 1999, respectively, representing an increase of $54,000, or 1.7%. The
increase in rental income was primarily attributable to higher rental rates at the Mini-Warehouse Properties.
The annual average realized rent per square foot for the Mini-Warehouse Properties was $8.51 compared to $8.31
for the three months ended September 30, 2000 and 1999, respectively. The weighted average occupancy levels at
the Mini-Warehouse Properties remained stable at 92% for the three months ended September 30, 1999 and 2000,
respectively. Cost of operations (including management fees) increased $53,000, or 4.3%, to $1,282,000 from
$1,229,000 for the three months ended September 30, 2000 and 1999, respectively. This increase is primarily
attributable to higher advertising and repairs and maintenance expenses. Accordingly, for the Mini-Warehouse
Properties, property net operating income remained stable at $1,999,000 for the three months ended September 30,
1999 and 2000, respectively.
Nine months ended September 30, 2000 compared to nine months ended September 30, 1999:
Rental income for the Mini-Warehouse Properties was $9,532,000 compared to $9,495,000 for the nine
months ended September 30, 2000 and 1999, respectively, representing an increase of $37,000, or 0.4%. The
increase in rental income was primarily attributable to increased rental rates at the Mini-Warehouse Properties,
offset partially by decreased average occupancies. The annual average realized rent per square foot for the
Mini-Warehouse Properties was $8.27 compared to $8.16 for the nine months ended September 30, 2000 and 1999,
respectively. The weighted average occupancy levels at the Mini-Warehouse Properties decreased from 92% to 91%
for the nine months ended September 30, 1999 and 2000, respectively. Cost of operations (including management
fees) increased $101,000, or 2.7%, to $3,797,000 from $3,696,000 for the nine months ended September 30, 2000 and
1999, respectively. This increase is primarily attributable to higher repairs and maintenance, advertising,
payroll and office expenses. Accordingly, for the Mini-Warehouse Properties, property net operating income
decreased by $64,000, or 1.1%, from $5,799,000 to $5,735,000 for the nine months ended September 30, 1999 and
2000, respectively.
Liquidity and Capital Resources
We have adequate sources of cash to finance operations, both on a short-term and long-term basis,
primarily from internally generated cash from property operations and cash reserves. Cash generated from
9
operations and distributions from real estate entities ($4,095,000 for the nine months ended September 30, 2000)
has been sufficient to meet all our current obligations.
Total capital improvements for the nine months ended September 30, 2000 with respect to our wholly-owned
property was $2,000. During the remainder of fiscal 2000, we do not anticipate incurring additional significant
costs for capital improvements with respect to this property
We paid distributions to the limited and general partners totaling $2,678,000 ($17.85 per unit) and
$327,000, respectively, during the first nine months of 2000. Future distribution rates may be adjusted to
levels which are supported by operating cash flow after capital improvements and any other necessary obligations.
10
PART II. OTHER INFORMATION
ITEMS 1 through 5 are not applicable.
Item 6 Exhibits and Reports on Form 8-K
(a) The following Exhibits are included herein:
(27) Financial Data Schedule
(b) Reports on 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: November 13, 2000
PS PARTNERS VI, LTD.
BY: Public Storage, Inc.
General Partner
BY: /s/ John Reyes
John Reyes
Senior Vice President and Chief Financial
Officer of Public Storage, Inc.
(principal financial and accounting officer)
11
