FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
(Mark One)
{ X } QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1996 Commission file number 0-17616
Realty Parking Properties L.P.
(Exact Name of Registrant as Specified in its Charter)
Delaware 52-1591575
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
225 East Redwood Street, Baltimore, Maryland 21202
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (410) 727-4083
N/A
(Former Name, Former Address, and Former Fiscal Year,
if Changed Since Last Report.)
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>
REALTY PARKING PROPERTIES L.P.
INDEX
Page No.
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets 1
Statements of Operations 2
Statements of Partners' Capital 3
Statements of Cash Flows 4
Notes to Financial Statements 5-6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II. Other Information
Item 1. through Item 6. 8
Signatures 9
<PAGE>
REALTY PARKING PROPERTIES L.P.
Balance Sheets
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
Assets
<S> <C> <C>
Investment in real estate $ 33,203,360 $ 33,133,018
Cash and cash equivalents 1,189,152 1,495,960
Accounts receivable 363,400 329,400
$ 34,755,912 $ 34,958,378
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 29,011 $ 26,802
Due to affiliates 26,298 28,834
Real estate taxes payable 329,400 329,400
384,709 385,036
Partners' Capital
General Partner (48,756) (44,713)
Assignor Limited Partner
Assignment of limited partnership interests-
$25 stated value per unit, 1,909,087 units outstanding 34,418,894 34,616,985
Limited partnership interests-
$25 stated value per unit, 40 units outstanding 965 970
Subordinated Limited Partner 100 100
34,371,203 34,573,342
$ 34,755,912 $ 34,958,378
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1996 1995 1996 1995
Revenues
<S> <C> <C> <C> <C>
Parking lot rental $ 617,968 $ 582,234 $1,812,436 $1,776,428
Interest income 16,304 21,062 51,116 65,929
634,272 603,296 1,863,552 1,842,357
Expenses
Administrative, including amounts
to related party 24,382 23,843 77,913 77,807
Professional fees 4,750 4,600 14,550 15,600
Management fees to related party 9,102 7,737 27,851 25,631
Depreciation of properties 30,156 29,260 90,468 87,780
68,390 65,440 210,782 206,818
Net earnings $ 565,882 $ 537,856 $1,652,770 $1,635,539
Net earnings per unit of assignee
limited partnership interest $ 0.29 $ 0.28 $ 0.85 $ 0.84
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Partners' Capital
For the Nine Months Ended September 30, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Assignor Limited Partner
Assignee Assignor Subordinated
Limited Limited Limited General
Partner Partner Partner Partner Total
<S> <C> <C> <C> <C> <C>
Balance at December 31, 1995 $ 34,616,985 $ 970 $ 100 $ (44,713) $ 34,573,342
Net earnings 1,619,681 34 - 33,055 1,652,770
Distributions to partners (1,817,772) (39) - (37,098) (1,854,909)
Balance at September 30, 1996$ 34,418,894 $ 965 $ 100 $ (48,756) $ 34,371,203
Balance at December 31, 1994 $ 34,891,301 $ 977 $ 100 $ (39,114) $ 34,853,264
Net earnings 1,602,795 34 - 32,710 1,635,539
Distributions to partners (1,817,772) (39) - (37,098) (1,854,909)
Balance at September 30, 1995$ 34,676,324 $ 972 $ 100 $ (43,502) $ 34,633,894
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
Sept. 30, 1996 Sept. 30, 1995
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 1,652,770 $ 1,635,539
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation of properties 90,468 87,780
Changes in assets and liabilities
Increase in accounts receivable (34,000) -
Increase in accounts payable and accrued expenses 2,209 10,935
Decrease in amounts due to affiliates (2,536) (4,221)
Net cash provided by operating activities 1,708,911 1,730,033
Cash flows from investing activities -
additions to investment in real estate (160,810) -
Cash flows from financing activities -
distributions to partners (1,854,909) (1,854,909)
Net decrease in cash and cash equivalents (306,808) (124,876)
Cash and cash equivalents
Beginning of period 1,495,960 1,649,792
End of period $ 1,189,152 $ 1,524,916
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
September 30, 1996
(Unaudited)
(1) The Partnership and Basis of Preparation
The accompanying financial statements of Realty Parking Properties L.P.
(the "Partnership") do not include all of the information and note
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles. The unaudited
interim financial statements reflect all adjustments which are, in the
opinion of management, necessary to a fair statement of the results for
the interim periods presented. All such adjustments are of a normal
recurring nature. The unaudited interim financial information should be
read in conjunction with the financial statements contained in the 1995
Annual Report.
(2) Cash and Cash Equivalents
The Partnership considers all highly liquid investments with original
maturities of three months or less to be cash equivalents. Cash and
cash equivalents consist entirely of cash and money market accounts and
are stated at cost, which approximates market value at September 30,
1996 and December 31, 1995.
(3) Investment in Real Estate
Investment in real estate is stated at the lower of net realizable
value or cost, net of accumulated depreciation, and includes the
purchase price and all costs of acquisition of parking sites acquired,
and is summarized as follows:
<TABLE>
<CAPTION>
September 30, 1996 December 31, 1995
<S> <C> <C>
Land $30,207,717 $30,207,717
Buildings 3,445,776 3,284,966
Land Improvements 190,804 190,804
33,844,297 33,683,487
Less: accumulated depreciation (640,937) (550,469)
Total $33,203,360 $33,133,018
</TABLE>
Depreciation of the garage structures is computed using the
straight-line method over 31.5 years for property placed in service
prior to January 1, 1994 and 39 years for property placed in service
after January 1, 1994.
(4) Related Party Transactions
The Partnership's general partner earned a property management fee of
$9,102 and $27,851 (1% of gross revenues of the properties and other
sources of income) during the three and nine months ended September 30,
1996, respectively, and $7,737 and $25,631 during the three and nine
months ended September 30, 1995, respectively. The general partner is
reimbursed for certain costs incurred relating to administrative and
professional services of the Partnership totaling $17,196 and $63,523
for the three and nine months ended September 30, 1996, respectively,
and $27,531 and $79,611 for the three and nine months ended September
30, 1995, respectively.
(5) Net Earnings Per Unit of Assigned Limited Partnership Interest
Net earnings per unit of assignee limited partnership interest is
disclosed on the Statements of Operations and is based upon 1,909,087
units outstanding.
-5-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
September 30, 1996
(Unaudited)
(6) Subsequent Event
On November 12, 1996, the Partnership will make a cash distribution
totaling $618,303 of which 98% is allocated to Unitholders. This
distribution is derived from funds provided by operations during the
quarter ended September 30, 1996 of $596,038, and a return of capital
of $22,265. Holders of Units will receive a cash distribution of $.317
per $25 unit.
-6-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At September 30, 1996, the Partnership had a working capital position
that includes cash and cash equivalents of $1,189,152 and accounts payable of
$29,011. Cash and cash equivalents decreased $180,510 during the third quarter
of 1996. This decrease represents the net effect of $598,603 in cash provided by
operating activities, capital expenditures of $160,810 and distributions to
investors of $618,303.
In connection with its initial public offering, the Partnership
allocated approximately $2,386,000 (5% of gross offering proceeds) as working
capital reserves and has released $2,335,537 of these reserves as part of its
quarterly cash distributions from inception through September, 1996. It is
anticipated that remaining reserves will be sufficient to satisfy the
Partnership's liquidity requirements.
On November 12, 1996, the Partnership will make a distribution to
investors of $618,303. This distribution is comprised $596,038 of funds provided
by operations during the quarter ended September 30, 1996, and a return of
capital of $22,265 deemed available for distribution by the General Partner.
In August, the Partnership completed the conversion of certain
first-floor retail space in its Birmingham garage to additional parking. This
conversion resulted in the addition of 42 parking spaces. The total cost for
this work was $160,810, slightly greater than the originally estimated amount.
The additional costs were attributed to certain additional work that was
required by the City of Birmingham. The Partnership currently has no additional
plans to use any working capital to perform major repairs or improvements to any
of its properties. No acquisitions of additional properties are anticipated in
the foreseeable future.
Results of Operations
The Partnership leases its facilities to parking operators under terms
that typically include a minimum rent calculated as a percentage of certain
acquisition costs. In addition, lessees are typically obligated to pay
percentage rent, calculated as a percentage of gross parking revenues.
Total parking lot rents of $617,968 (97% of total revenues) were earned
in the third quarter of 1996, a 6% increase over the same period in 1995. For
the first nine months of 1996, parking lot rents were $1,812,436, up slightly
over the same period in 1995. During the first nine months of 1996, the
Partnership earned the following percentage rents: Little Rock $417, Birmingham
$30,360 and Milwaukee $34,000. In comparison, the Partnership earned the
following percentage rents during the same period in 1995: Birmingham $29,727
and Milwaukee $17,775. With the exception of Little Rock, Birmingham and
Milwaukee, all of the Partnership's other parking lot rents earned, during the
first nine months of 1996, represented minimum rents under the applicable lease
agreements. All of the properties in the Partnership's portfolio have leases
that have been in effect for at least three years. Accordingly, the minimum rent
expected in 1996, measured as a percentage of the Partnership's basis in each
lease, is 7%.
Interest earnings decreased by $4,758 in the third quarter of 1996,
compared to the same period in 1995. For the first nine months of 1996, interest
income totaled $51,116, a $14,813 decrease over the same period in 1995. These
decreases were primarily the result of lower average cash balances in 1996.
Expenses in the third quarter of 1996, net of depreciation, increased
by 5.6% when compared to the same period in 1995. The increase was largely due
to higher administrative costs. In the first nine months of 1996 expenses, net
of amortization and depreciation, totaled $120,314, a slight increase over the
same period in 1995. It is expected that 1996 expenses should remain near 1995
levels.
The Partnership, in accordance with its original investment strategy,
continues to examine opportunities for disposition of its facilities. It is
anticipated that the highest level returns will be obtained from property sales
to buyers who desire the site for a near term development project.
-7-
<PAGE>
REALTY PARKING PROPERTIES L.P.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Inapplicable
Item 2. Changes in Securities
Inapplicable
Item 3. Defaults upon Senior Securities
Inapplicable
Item 4. Submission of Matters to a Vote of Security Holders
Inapplicable
Item 5. Other Information
Inapplicable
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits: None
b) Reports on Form 8-K: None
-8-
<PAGE>
REALTY PARKING PROPERTIES L.P.
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
REALTY PARKING PROPERTIES L.P.
DATE: 8/6/96 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 8/6/96 By: /s/ Timothy M. Gisriel
Timothy M. Gisriel
Treasurer
Realty Parking Company, Inc.
General Partner
-9-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with legend, if applicable)
</LEGEND>
<CIK> 841127
<NAME> Realty Parking Properties L.P.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<CASH> 1,189,152
<SECURITIES> 0
<RECEIVABLES> 363,400
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,552,552
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,755,912
<CURRENT-LIABILITIES> 384,709
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 34,755,912
<SALES> 0
<TOTAL-REVENUES> 1,863,552
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 210,782
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,652,770
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,652,770
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,652,770
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
