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 June 30, 1998
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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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PS PARTNERS 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
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<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
Condensed balance sheets at June 30, 1998
and December 31, 1997 2
Condensed statements of income for the three
and six months ended June 30, 1998 and 1997 3
Condensed statements of cash flows for the
six months ended June 30, 1998 and 1997 4-5
Notes to condensed financial statements 6
Management's discussion and analysis of financial condition
and results of operations 7-8
PART II. OTHER INFORMATION
(Items 1 through 5 are not applicable)
Item 6 - Exhibits and Reports on Form 8-K 9
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
---------------------------------
(Unaudited)
ASSETS
<S> <C> <C>
Cash and cash equivalents $441,000 $249,000
Rent and other receivables 11,000 11,000
Real estate facilities, at cost:
Land 4,926,000 4,926,000
Buildings and equipment 12,382,000 12,320,000
---------------------------------
17,308,000 17,246,000
Less accumulated depreciation (5,368,000) (5,081,000)
---------------------------------
11,940,000 12,165,000
Investment in real estate entity 5,146,000 5,134,000
Other assets 34,000 31,000
---------------------------------
$17,572,000 $17,590,000
=================================
LIABILITIES AND PARTNERS' EQUITY
Accounts payable $288,000 $223,000
Advance payments from renters 121,000 121,000
Partners' equity:
Limited partners' equity,
$500 per unit, 150,000 units authorized,
52,751 issued and outstanding 16,957,000 17,039,000
General partners' equity 206,000 207,000
---------------------------------
Total partners' equity 17,163,000 17,246,000
---------------------------------
$17,572,000 $17,590,000
=================================
</TABLE>
See accompanying notes.
2
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------------------------------
1998 1997 1998 1997
-------------------------------------------------------------
REVENUE:
<S> <C> <C> <C> <C>
Rental income $693,000 $645,000 $1,364,000 $1,266,000
Equity in income of real estate entity 70,000 59,000 130,000 102,000
Interest income 6,000 3,000 10,000 6,000
-------------------------------------------------------------
769,000 707,000 1,504,000 1,374,000
-------------------------------------------------------------
COSTS AND EXPENSES:
Cost of operations 191,000 176,000 378,000 348,000
Management fees 42,000 39,000 82,000 76,000
Depreciation and amortization 144,000 139,000 287,000 278,000
Administrative 25,000 23,000 40,000 36,000
-------------------------------------------------------------
402,000 377,000 787,000 738,000
-------------------------------------------------------------
NET INCOME $367,000 $330,000 $717,000 $636,000
=============================================================
Limited partners' share of net income
($11.96 per unit in 1998 and
$10.43 per unit 1997) $631,000 $550,000
General partners' share of net income 86,000 86,000
-------------------------------
$717,000 $636,000
===============================
</TABLE>
See accompanying notes.
3
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
---------------------------------
1998 1997
---------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $717,000 $636,000
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 287,000 278,000
Increase in rent and other receivables - (1,000)
(Increase) decrease in other assets (3,000) 15,000
Increase (decrease) in accounts payable 65,000 (8,000)
Increase in advance payments from renters - 4,000
Equity in income of real estate entity (130,000) (102,000)
---------------------------------
Total adjustments 219,000 186,000
---------------------------------
Net cash provided by operating activities 936,000 822,000
---------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions from real estate entity 118,000 -
Investment in real estate entity - (2,000)
Additions to real estate facilities (62,000) (38,000)
---------------------------------
Net cash provided by (used in) investing activities 56,000 (40,000)
---------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to partners (800,000) (800,000)
---------------------------------
Net cash used in financing activities (800,000) (800,000)
---------------------------------
Net increase (decrease) in cash and cash equivalents 192,000 (18,000)
Cash and cash equivalents at the beginning of the period 249,000 209,000
---------------------------------
Cash and cash equivalents at the end of the period $441,000 $191,000
=================================
</TABLE>
See accompanying notes.
4
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Continued)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
------------------------------------
1998 1997
------------------------------------
Supplemental schedule of noncash investing and financing activities:
<S> <C> <C>
Investment in real estate entity $- $(5,015,000)
Transfer of real estate facilities for interest in real estate entity, - 5,015,000
</TABLE>
See accompanying notes.
5
<PAGE>
PS PARTNERS VIII, LTD.,
a California Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 1998
(UNAUDITED)
1. The accompanying unaudited condensed financial statements have been
prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to
such rules and regulations, although management believes that the
disclosures contained herein are adequate to make the information presented
not misleading. These unaudited condensed financial statements should be
read in conjunction with the financial statements and related notes
appearing in the Partnership's Form 10-K for the year ended December 31,
1997.
2. In the opinion of management, the accompanying unaudited condensed
financial statements reflect all adjustments, consisting of only normal
accruals, necessary to present fairly the Partnership's financial position
at June 30, 1998, the results of operations for the three and six months
ended June 30, 1998 and 1997 and cash flows for the six months then ended.
3. The results of operations for the three and six months ended June 30, 1998
are not necessarily indicative of the results to be expected for the full
year.
6
<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 JUNE 30, 1998 COMPARED TO THREE MONTHS ENDED JUNE 30, 1997:
The Partnership's net income for the three months ended June 30, 1998 was
$367,000 compared to $330,000 for the same period in 1997, representing an
increase of $37,000, or 11%. The increase is primarily attributable to an
increase in the Partnership's mini-warehouse operations.
Rental income for the Partnership's mini-warehouse operations was $693,000
compared to $645,000 for the three months ended June 30, 1998 and 1997,
respectively, representing an increase of $48,000, or 7%. The increase in rental
income was primarily attributable to increased rental rates at the Partnership's
mini-warehouse facilities. The monthly average realized rent per square foot for
the mini-warehouse facilities was $.86 compared to $.80 for the three months
ended June 30, 1998 and 1997, respectively. The weighted average occupancy
levels at the mini-warehouse facilities remained stable at 93% for the three
months ended June 30, 1997 and 1998. Cost of operations (including management
fees) increased $18,000, or 8%, to $233,000 from $215,000 for the three months
ended June 30, 1998 and 1997, respectively. This increase was primarily
attributable to increases in advertising and promotion (due primarily to the PSI
national telephone reservations center) and property tax expenses. Accordingly,
for the Partnership's mini-warehouse operations, property net operating income
increased $30,000, or 7%, from $430,000 to $460,000 for the three months ended
June 30, 1997 and 1998, respectively.
SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO SIX MONTHS ENDED JUNE 30, 1997:
The Partnership's net income for the six months ended June 30, 1998 was
$717,000 compared to $636,000 for the same period in 1997, representing an
increase of $81,000, or 13%. The increase is primarily attributable to an
increase in the Partnership's mini-warehouse operations.
Rental income for the Partnership's mini-warehouse operations was
$1,364,000 compared to $1,266,000 for the six months ended June 30, 1998 and
1997, respectively, representing an increase of $98,000, or 8%. The increase in
rental income was primarily attributable to increased rental rates at the
Partnership's mini-warehouse facilities, combined with increased occupancy
levels. The monthly average realized rent per square foot for the mini-warehouse
facilities was $.84 compared to $.79 for the six months ended June 30, 1998 and
1997, respectively. The weighted average occupancy levels at the mini-warehouse
facilities increased from 92% to 93% for the six months ended June 30, 1997 and
1998, respectively. Cost of operations (including management fees) increased
$36,000, or 8%, to $460,000 from $424,000 for the six months ended June 30, 1998
7
<PAGE>
and 1997, respectively. This increase was primarily attributable to increases in
advertising and promotion (due primarily to the PSI national telephone
reservations center) and property tax expenses. Accordingly, for the
Partnership's mini-warehouse operations, property net operating income increased
$62,000, or 7%, from $842,000 to $904,000 for the six months ended June 30, 1997
and 1998, respectively.
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
($936,000 for the six months ended June 30, 1998) has been sufficient to meet
all current obligations of the Partnership.
During 1998, the Partnership anticipates approximately $188,000 of capital
improvements. Total capital improvements were $62,000 for the six months ended
June 30, 1998.
The Partnership paid distributions to the limited and general partners
totaling $712,000 ($13.52 per unit) and $88,000, respectively, during the first
six months of 1998. Future distribution rates may be adjusted to levels which
are supported by operating cash flow after capital improvements and any other
necessary obligations.
8
<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: August 13, 1998
PS PARTNERS VIII, LTD.,
a California Limited Partnership
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)
9
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000793934
<NAME> PS PARTNERS VIII, LTD.
<MULTIPLIER> 1
<CURRENCY> U.S. $
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<CASH> 441,000
<SECURITIES> 0
<RECEIVABLES> 11,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 452,000
<PP&E> 17,308,000
<DEPRECIATION> (5,368,000)
<TOTAL-ASSETS> 17,572,000
<CURRENT-LIABILITIES> 409,000
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 17,163,000
<TOTAL-LIABILITY-AND-EQUITY> 17,572,000
<SALES> 0
<TOTAL-REVENUES> 1,504,000
<CGS> 0
<TOTAL-COSTS> 460,000
<OTHER-EXPENSES> 327,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 717,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 717,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 717,000
<EPS-PRIMARY> 11.96
<EPS-DILUTED> 11.96
</TABLE>
