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 June 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 June 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>
June 30, December 31,
1996 1995
Assets
<S> <C> <C>
Investment in real estate $33,182,706 $ 33,133,018
Cash and cash equivalents 1,369,662 1,495,960
Accounts receivable 359,400 329,400
$34,911,768 $ 34,958,378
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 20,056 $ 26,802
Due to affiliates 138,688 28,834
Real estate taxes payable 329,400 329,400
488,144 385,036
Partners' Capital
General Partner (47,707) (44,713)
Assignor Limited Partner
Assignment of limited partnership interests-
$25 stated value per unit, 1,909,087 units outstanding 34,470,265 34,616,985
Limited partnership interests-
$25 stated value per unit, 40 units outstanding 966 970
Subordinated Limited Partner 100 100
34,423,624 34,573,342
$34,911,768 $ 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 Six Months Ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
Revenues
<S> <C> <C> <C> <C>
Parking lot rental $612,234 $613,937 $1,194,468 $1,194,195
Interest income 16,943 22,727 34,812 44,867
629,177 636,664 1,229,280 1,239,062
Expenses
Administrative, including amounts
to related party 24,693 27,104 53,530 53,964
Professional fees 4,750 4,600 9,800 11,000
Management fees to related party 9,456 8,641 18,750 17,894
Depreciation of properties 30,156 29,260 60,312 58,520
69,055 69,605 142,392 141,378
Net earnings $560,122 $567,059 $1,086,888 $1,097,684
Net earnings per unit of assignee
limited partnership interest $ 0.29 $ 0.29 $ 0.56 $ 0.56
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Partners' Capital
For the Six Months Ended June 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 1,065,128 22 - 21,738 1,086,888
Distribution to partners (1,211,848) (26) - (24,732) (1,236,606)
Balance at June 30, 1996 $ 34,470,265 $ 966 $ 100 $ (47,707) $ 34,423,624
Balance at December 31, 1994$ 34,891,301 $ 977 $ 100 $ (39,114) $ 34,853,264
Net earnings 1,075,708 22 - 21,954 1,097,684
Distribution to partners (1,211,848) (26) - (24,732) (1,236,606)
Balance at June 30, 1995 $ 34,755,161 $ 973 $ 100 $ (41,892) $ 34,714,342
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1996 June 30, 1995
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 1,086,888 $ 1,097,684
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation of properties 60,312 58,520
Changes in assets and liabilities
Increase in accounts receivable (30,000) -
Increase (decrease) in accounts payable and accrued expenses (6,746) 216
Increase (decrease) in amounts due to affiliates (146) 10,154
Net cash provided by operating activities 1,110,308 1,166,574
Cash flows from financing activities -
distributions to partners (1,236,606) (1,236,606)
Net decrease in cash and cash equivalents (126,298) (70,032)
Cash and cash equivalents
Beginning of period 1,495,960 1,649,792
End of period $ 1,369,662 $ 1,579,760
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
June 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 June 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>
June 30, 1996 December 31, 1995
<S> <C> <C>
Land $30,207,717 $30,207,717
Buildings 3,394,966 3,284,966
Land Improvements 190,804 190,804
33,793,487 33,683,487
Less: accumulated depreciation (610,781) (550,469)
Total $33,182,706 $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.
(4) Related Party Transactions
The Partnership's general partner earned a property management fee of
$9,456 and $18,750 (1% of gross revenues of the properties and other
sources of income) during the three and six months ended June 30, 1996,
respectively, and $8,641 and $17,894 during the three and six months
ended June 30, 1995, respectively. The general partner is reimbursed
for certain costs incurred relating to administrative and professional
services of the Partnership totaling $19,232 and $46,327 for the three
and six months ended June 30, 1996, respectively, and $27,530 and
$52,080 for the three and six months ended June 30, 1995, respectively.
(5) 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.
-5-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
June 30, 1996
(Unaudited)
(6) Subsequent Event
On August 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 June 30, 1996 of $590,278, and a return of capital of
$28,025. 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 $2,307,512 of these reserves as part of its
quarterly cash distributions from inception through June, 1996. It is
anticipated that remaining reserves will be sufficient to satisfy the
Partnership's liquidity requirements. At June 30, 1996, the Partnership had cash
and cash equivalents of $1,369,662 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 95% complete, will result in the addition of 42 parking
spaces. It is projected that the initial budget of $125,000 will increase to
$157,000, due to changes required by the City of Birmingham. With the exception
of 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 August 13, 1996. This distribution comprised $590,278 of funds from
operations during the quarter ended June 30, 1996, and a return of capital of
$28,025 deemed available for distribution by the General Partner.
Results of Operations
Total parking lot rents of $612,234 (97% of total revenues) were earned
in the second quarter of 1996, a slight decrease over the period in 1995. For
the first six months of 1996, parking lot rents were $1,194,468, consistent with
the same period in 1995. With the exception of Birmingham, which earned
approximately $30,000 in percentage rents during both 1996 and 1995, all other
parking lot rents earned in the second quarter 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 $5,784 in the first quarter, 1996,
compared to first quarter in 1995. For the first six months in 1996, interest
income totaled $34,812, this is a $10,055 decrease over the same period in 1995.
These decreases were primarily the result of lower average cash balances in
1996.
Expenses in the first quarter, 1996, net of amortization and
depreciation, decreased by 3.6% when compared to the same period in 1995. The
decrease was largely due to lower administrative costs. In the first six months
in 1996, expenses net of amortization and depreciation, totaled $82,080, a
slight decrease over the same period of 1995. 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: 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-1-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 1,369,662
<SECURITIES> 0
<RECEIVABLES> 359,400
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,729,062
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,911,768
<CURRENT-LIABILITIES> 488,144
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 34,911,768
<SALES> 0
<TOTAL-REVENUES> 1,229,280
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 142,392
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,086,888
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,086,888
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,086,888
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
