UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the period ended March 31, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]
For the transition period from to
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Commission File Number 0-16876
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PSPARTNERS VIII, LTD., a California Limited Partnership
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 95-4029178
- ------------------------------- ------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
701 Western Avenue
Glendale, California 91201-2394
- ---------------------------------------- ------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 244-8080
---------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
-- --
<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
Condensed balance sheets at March 31, 1996
and December 31, 1995 2
Condensed statements of income for the three
months ended March 31, 1996 and 1995 3
Condensed statements of cash flows for the three
months ended March 31, 1996 and 1995 4
Notes to condensed financial statements 5
Management's discussion and analysis of financial condition
and results of operations 6-7
PART II. OTHER INFORMATION
(Items 1 through 5 are not applicable)
Item 6 - Exhibits and Reports on Form 8-K 8
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
CONDENSED BALANCE SHEETS
<TABLE>
March 31, December 31,
1996 1995
------------------- -------------------
(Unaudited)
ASSETS
------
<S> <C> <C>
Cash and cash equivalents $ 295,000 $ 217,000
Rent and other receivables 6,000 9,000
Real estate facilities, at cost:
Land 7,461,000 7,461,000
Buildings and equipment 16,220,000 16,213,000
------------------- -------------------
23,681,000 23,674,000
Less accumulated depreciation (5,700,000) (5,501,000)
------------------- -------------------
17,981,000 18,173,000
Other assets 28,000 27,000
------------------- -------------------
$ 18,310,000 $ 18,426,000
=================== ===================
LIABILITIES AND PARTNERS' EQUITY
--------------------------------
Accounts payable $ 353,000 $ 324,000
Advance payments from renters 123,000 112,000
Partners' equity:
Limited partners' equity,
$500 per unit, 150,000 units authorized,
52,751 issued and outstanding 17,621,000 17,776,000
General partners' equity 213,000 214,000
------------------- -------------------
Total partners' equity 17,834,000 17,990,000
------------------- -------------------
$ 18,310,000 $ 18,426,000
=================== ===================
</TABLE>
See accompanying notes.
2
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
------------------------------------
1996 1995
--------------- ----------------
REVENUE:
Rental income $ 697,000 $ 684,000
Interest income 3,000 15,000
--------------- ----------------
700,000 699,000
--------------- ----------------
COSTS AND EXPENSES:
Cost of operations 203,000 198,000
Management fees 41,000 40,000
Depreciation and amortization 199,000 184,000
Administrative 13,000 17,000
--------------- ----------------
456,000 439,000
--------------- ----------------
NET INCOME $ 244,000 $ 260,000
=============== ================
Limited partners' share of net income
($3.81 per unit in 1996 and $4.13
per unit in 1995) $ 201,000 $ 218,000
General partners' share of net income 43,000 42,000
--------------- ----------------
$ 244,000 $ 260,000
=============== ================
See accompanying notes.
3
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
Three Months Ended
March 31,
-----------------------------------------
1996 1995
---------------- ----------------
Cash flows from operating activities:
<S> <C> <C>
Net income $ 244,000 $ 260,000
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 199,000 184,000
Decrease in rent and other receivables 3,000 2,000
Increase in other assets (1,000) (3,000)
Increase (decrease) in accounts payable 29,000 (1,000)
Increase (decrease) in advance payments from renters 11,000 (5,000)
---------------- ----------------
Total adjustments 241,000 177,000
---------------- ----------------
Net cash provided by operating activities 485,000 437,000
---------------- ----------------
Cash flows from investing activities:
Additions to real estate facilities (7,000) (55,000)
---------------- ----------------
Net cash used in investing activities (7,000) (55,000)
---------------- ----------------
Cash flows from financing activities:
Distributions to partners (400,000) (400,000)
---------------- ----------------
Net cash used in financing activities (400,000) (400,000)
---------------- ----------------
Net increase (decrease) in cash and cash equivalents 78,000 (18,000)
Cash and cash equivalents at the beginning of the period 217,000 888,000
---------------- ----------------
Cash and cash equivalents at the end of the period $ 295,000 $ 870,000
================ ================
</TABLE>
See accompanying notes.
4
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1996
(UNAUDITED)
1. The accompanying unaudited condensed financial statements have been
prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although management believes
that the disclosures contained herein are adequate to make the
information presented not misleading. These unaudited condensed
financial statements should be read in conjunction with the financial
statements and related notes appearing in the Partnership's Form 10-K
for the year ended December 31, 1995.
2. In the opinion of management, the accompanying unaudited condensed
financial statements reflect all adjustments, consisting of only normal
accruals, necessary to present fairly the Partnership's financial
position at March 31, 1996, the results of operations for the three
months ended March 31, 1996 and 1995 and cash flows for the three
months then ended.
3. The results of operations for the three months ended March 31, 1996
are not necessarily indicative of the results to be expected for the
full year.
5
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
- ----------------------
Three months ended March 31, 1996 compared to three months ended March 31, 1995:
The Partnership's net income for the three months ended March 31, 1996 was
$244,000 compared to $260,000 for the same period in 1995, representing a
decrease of $16,000 or 6%. This decrease was primarily due to increased
depreciation expense combined with a decrease in interest income, partially
offset by increased property operating results at the Partnership's facilities
combined with a decrease in administrative expenses.
Net operating income (rental income less cost of operations and management
fees and excluding depreciation expense) increased by $7,000 or 2%, as rental
income increased by $13,000 or 2%, and cost of operations (including management
fees and excluding depreciation expense) increased by $6,000 or 3%.
Rental income for the Partnership's mini-warehouse operations was $568,000
compared to $556,000 for the three months ended March 31, 1996 and 1995,
respectively, representing an increase of $12,000 or 2%. 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 $.74 compared to $.71 for the three months
ended March 31, 1996 and 1995, respectively. The weighted average occupancy
levels at the mini-warehouse facilities decreased from 90% to 88% for the three
months ended March 31, 1995 and 1996, respectively. Costs of operations
(including management fees) increased $12,000 or 7% to $192,000 from $180,000
for the three months ended March 31, 1996 and 1995, respectively. Accordingly,
for the Partnership's mini-warehouse operations, property net operating income
remained stable at $376,000 for both three month periods ended March 31, 1995
and 1996.
Rental income for the Partnership's business park operations was $129,000
compared to $128,000 for the three months ended March 31, 1996 and 1995,
respectively, representing an increase of $1,000. This increase was primarily
attributable to an increase in the weighted average occupancy level at the
Partnership's business park, most of which was offset by a decrease in rental
rates. The weighted average occupancy level at the business park facilities
increased from 93% to 97% for the three months ended March 31, 1995 and 1996,
respectively. The monthly average realized rent per square foot for the business
park facilities was $.59 compared to $.64 for the three months ended March 31,
1996 and 1995, respectively. Cost of operations (including management fees)
decreased $6,000 or 10% to $52,000 from $58,000 for the three months ended March
31, 1996 and 1995, respectively. Accordingly, for the Partnership's business
park facilities, property net operating income increased by $7,000 or 10% from
$70,000 to $77,000 for the three months ended March 31, 1995 and 1996,
respectively.
6
<PAGE>
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 from internally generated
cash from property operations and cash reserves. Cash generated from operations
($485,000 for the three months ended March 31, 1996) has been sufficient to meet
all current obligations of the Partnership.
During 1996, the Partnership anticipates approximately $249,000 of capital
improvements. Total capital improvements were $7,000 for the three months ended
March 31, 1996.
The Partnership paid distributions to the limited and general partners
totaling $356,000 ($6.76 per unit) and $44,000, respectively, during the first
three months of 1996. Future distribution rates may be adjusted to levels which
are supported by operating cash flow after capital improvements and any other
necessary obligations.
7
<PAGE>
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) Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DATED: May 14, 1996
PS PARTNERS VIII, LTD.,
a California limited Partnership
BY: Public Storage, Inc.
General Partner
BY: /s/ Ronald L. Havner Jr.
------------------------------
Ronald L. Havner, Jr.
Senior Vice President and Chief Financial
Officer of Public Storage, Inc.
(principal financial officer)
BY: /s/ John Reyes
------------------------------
John Reyes
Vice President and Controller
of Public Storage, Inc.
(principal accounting officer)
8
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000793934
<NAME> PS Partner VIII
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> Jan-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 295,000
<SECURITIES> 0
<RECEIVABLES> 6,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 301,000
<PP&E> 23,681,000
<DEPRECIATION> (5,700,000)
<TOTAL-ASSETS> 18,310,000
<CURRENT-LIABILITIES> 476,000
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 17,834,000
<TOTAL-LIABILITY-AND-EQUITY> 18,310,000
<SALES> 697,000
<TOTAL-REVENUES> 700,000
<CGS> 244,000
<TOTAL-COSTS> 244,000
<OTHER-EXPENSES> 212,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 244,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 244,000
<EPS-PRIMARY> 3.81
<EPS-DILUTED> 0.000
</TABLE>
