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 March 31, 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 March 31, 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>
March 31, December 31,
1996 1995
Assets
<S> <C> <C>
Investment in real estate $33,102,862 $ 33,133,018
Cash and cash equivalents 1,435,169 1,495,960
Accounts receivable 329,400 329,400
$34,867,431 $ 34,958,378
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 19,838 $ 26,802
Due to affiliates 36,388 28,834
Real estate taxes payable 329,400 329,400
385,626 385,036
Partners' Capital
General Partner (46,544) (44,713)
Assignor Limited Partner
Assignment of limited partnership interests-
$25 stated value per unit, 1,909,087 units outstanding 34,527,281 34,616,985
Limited partnership interests-
$25 stated value per unit, 40 units outstanding 968 970
Subordinated Limited Partner 100 100
34,481,805 34,573,342
$34,867,431 $ 34,958,378
See accompanying notes to financial statements
1
</TABLE>
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, March 31,
1996 1995
Revenues
<S> <C> <C>
Parking lot rental $ 582,234 $ 580,258
Interest income 17,869 22,141
600,103 602,399
Expenses
Administrative, including amounts
to related party 28,838 26,860
Professional fees 5,050 6,400
Management fees to related party 9,293 9,253
Depreciation of properties 30,156 29,260
73,337 71,773
Net earnings $ 526,766 $ 530,626
Net earnings per unit of assignee
limited partnership interest $ 0.27 $ 0.27
See accompanying notes to financial statements
2
</TABLE>
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Partners' Capital
For the Three Months Ended March 31, 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 516,220 11 - 10,535 526,766
Distribution to partners (605,924) (13) - (12,366) (618,303)
Balance at March 31, 1996 $ 34,527,281 $ 968 $ 100 $ (46,544) $34,481,805
Balance at December 31, 1994$ 34,891,301 $ 977 $ 100 $ (39,114) $34,853,264
Net earnings 520,002 11 - 10,613 530,626
Distribution to partners (605,924) (13) - (12,366) (618,303)
Balance at March 31, 1995 $ 34,805,379 $ 975 $ 100 $ (40,867) $34,765,587
See accompanying notes to financial statements
3
</TABLE>
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1996 March 31, 1995
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 526,766 $ 530,626
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation of properties 30,156 29,260
Changes in assets and liabilities
Decrease in accounts payable and accrued expenses (6,964) (2,837)
Increase in amounts due to affiliates 7,554 6,482
Net cash provided by operating activities 557,512 563,531
Cash flows from financing activities -
distribution to partners (618,303) (618,303)
Net decrease in cash and cash equivalents (60,791) (54,772)
Cash and cash equivalents
Beginning of period 1,495,960 1,649,792
End of period $ 1,435,169 $ 1,595,020
See accompanying notes to financial statements
4
</TABLE>
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
March 31, 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) New Accounting Pronouncement
In March 1995, The Financial Accounting Standards Boards (FASB) issued
Statement of Financial Accounting Standards No. 121 "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of" (Statement 121). Statement 121 provides guidance for
recognition and measurement of impairment of long-lived assets, certain
identifiable intangibles and goodwill related both to assets to be held
and used and assets to be disposed of. The Fund adopted Statement 121
during the first quarter of 1996 and the adoption did not have any
impact on its consolidated financial statements.
(3) 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 March 31, 1996
and December 31, 1995.
(4) 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>
March 31, 1996 December 31, 1995
<S> <C> <C>
Land $30,207,717 $30,207,717
Buildings 3,284,966 3,284,966
Land Improvements 190,804 190,804
33,683,487 33,683,487
Less: accumulated depreciation (580,625) (550,469)
Total $33,102,862 $33,133,018
</TABLE>
Depreciation of the garage buildings and land improvements is computed
using the straight-line method over 31.5 and 15 years, respectively.
(5) Related Party Transactions
The Partnership's general partner earned a property management fee of
$9,293 and $9,253 (1% of gross revenues of the properties and other
sources of income) during the three months ended March 31, 1996 and
1995, respectively. The general partner is reimbursed for certain costs
incurred relating to administrative and professional services of the
Partnership totaling $27,095 and $24,550 for the three months ended
March 31, 1996 and 1995, respectively.
-5-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
March 31, 1996
(Unaudited)
(6) Net Earnings Per Unit of Assigned Limited Partnership Interest
Net earnings per unit of assigned limited partnership interest is
disclosed on the Statements of Operations and is based upon 1,909,087
units outstanding.
(7) Subsequent Event
On May 13, 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
March 31, 1996 of $556,922, and a return of capital of $61,381. 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
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 approximately $2,246,131 of these reserves as
part of its quarterly cash distributions from inception through March, 1996. It
is anticipated that remaining reserves will be sufficient to satisfy the
Partnership's liquidity requirements. At March 31, 1996, the Partnership had
cash and cash equivalents of $1,435,169 available for improvements,
distributions and working capital reserves. The Partnership invests these funds
in money market instruments.
At present, the Partnership is completing the conversion of certain
first-floor retail space in its Birmingham garage to additional parking. This
project, which is expected to be completed during May, 1996, will result in the
addition of 42 parking spaces to the Birmingham facility at a budgeted cost of
$125,000. Other than the Birmingham project, the Partnership has no 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.
The Partnership will make a cash distribution of $618,303 to partners
on May 13,1996. This distribution comprised $556,922 of funds from operations
during the quarter ended March 31, 1996, and a return of capital of $61,381
deemed available for distribution by the General Partner.
Results of Operations
Total parking lot rents of $582,234 (97% of total revenues) were earned
in the first quarter of 1996, virtually unchanged from the $580,258 of parking
lot rents recorded for the first quarter of 1995. All parking lot rents earned
in the first quarter of 1995 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 1995, measured as a percentage of the Partnership's
basis in each lease, is 7%.
Interest earnings decreased by $4,272 in the first quarter, 1996,
compared to first quarter, 1995. The decrease was substantially the result of
lower average cash balances in 1996.
Expenses in the first quarter, 1996, net of amortization and
depreciation, increased by 1.6% when compared to the same period in 1995. The
increase results from somewhat higher administration costs, filing fees and
management fees which equal 1% of the gross revenues of th parking facilities.
In general, it is expected that 1996 expenses should remain near 1995 levels.
-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: 5/9/96 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 5/9/96 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 1,435,169
<SECURITIES> 0
<RECEIVABLES> 329,400
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,764,569
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,867,431
<CURRENT-LIABILITIES> 385,626
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 34,867,431
<SALES> 0
<TOTAL-REVENUES> 600,103
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 73,337
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 526,766
<INCOME-TAX> 0
<INCOME-CONTINUING> 526,766
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 526,766
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
