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, 1997
{ } 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, 1997 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,
1997 1996
Assets
<S> <C> <C>
Investment in real estate $33,109,455 $ 33,171,829
Cash and cash equivalents 1,021,768 1,134,392
Accounts receivable 350,588 351,858
$34,481,811 $ 34,658,079
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 21,977 $ 31,469
Due to affiliates 44,450 41,402
Real estate taxes payable 315,588 315,588
382,015 388,459
Partners' Capital
General Partner (54,184) (50,788)
Assignee and Limited Partnership
Interests - $25 stated value per
unit, 1,909,127 units outstanding 34,153,880 34,320,308
Subordinated Limited Partner 100 100
34,099,796 34,269,620
$34,481,811 $ 34,658,079
</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,
1997 1996 1997 1996
Revenues
<S> <C> <C> <C> <C>
Parking lot rental $620,103 $612,234 $1,205,206 $1,194,468
Interest income 13,589 16,943 26,820 34,812
633,692 629,177 1,232,026 1,229,280
Expenses
Administrative, including amounts
to related party 37,110 24,693 73,632 53,530
Professional fees 4,500 4,750 8,790 9,800
Management fees to related party 9,795 9,456 20,448 18,750
Depreciation of properties 31,187 30,156 62,374 60,312
82,592 69,055 165,244 142,392
Net earnings $551,100 $560,122 $1,066,782 $1,086,888
Net earnings per unit of assignee
and limited partnership interest $ 0.28 $ 0.29 $ 0.55 $ 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, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
Assignee
and Limited Subordinated
Partnership Limited General
Interests Partner Partner Total
<S> <C> <C> <C> <C>
Balance at December 31, 1996 $ 34,320,308 $ 100 $ (50,788) $ 34,269,620
Net earnings 1,045,446 - 21,336 1,066,782
Distributions to partners (1,211,874) - (24,732) (1,236,606)
Balance at June 30, 1997 $ 34,153,880 $ 100 $ (54,184) $ 34,099,796
Balance at December 31, 1995 $ 34,617,955 $ 100 $ (44,713) $ 34,573,342
Net earnings 1,065,150 - 21,738 1,086,888
Distributions to partners (1,211,874) - (24,732) (1,236,606)
Balance at June 30, 1996 $ 34,471,231 $ 100 $ (47,707) $ 34,423,624
</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, 1997 June 30, 1996
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 1,066,782 $ 1,086,888
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation of properties 62,374 60,312
Changes in assets and liabilities
(Increase) decrease in accounts receivable 1,270 (30,000)
Decrease in accounts payable and accrued expenses (9,492) (6,746)
Increase (decrease) in amounts due to affiliates 3,048 (146)
Net cash provided by operating activities 1,123,982 1,110,308
Cash flows from financing activities -
distributions to partners (1,236,606) (1,236,606)
Net decrease in cash and cash equivalents (112,624) (126,298)
Cash and cash equivalents
Beginning of period 1,134,392 1,495,960
End of period $ 1,021,768 $ 1,369,662
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
June 30, 1997
(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 1996
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, 1997
and December 31, 1996.
(3) Investment in Real Estate
Investment in real estate is stated at the lower of fair value or cost,
net of accumulated depreciation, and includes all related acquisition
costs of the properties, and is summarized as follows:
<TABLE>
<CAPTION>
June 30, 1997 December 31, 1996
<S> <C> <C>
Land $30,207,717 $30,207,717
Buildings 3,445,777 3,445,777
Land Improvements 190,804 190,804
33,844,298 33,844,298
Less: accumulated depreciation (734,843) (672,469)
Total $33,109,455 $33,171,829
</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
$9,795 and $9,456 (1% of gross revenues of the properties and other
sources of income) during the three months ended June 30, 1997 and
1996, respectively, and $20,448 and $18,750 during the six months ended
June 30, 1997 and 1996, respectively. The general partner is reimbursed
for certain costs incurred relating to administrative and professional
services of the Partnership totaling $34,654 and $19,232 for the three
months ended June 30, 1997 and 1996, respectively, and $69,719 and
$46,327 for the six months ended June 30, 1997 and 1996, respectively.
(5) Net Earnings Per Unit of Assignee and Limited Partnership Interests
Net earnings per unit of assignee and limited partnership interests is
disclosed on the Statements of Operations and is based upon 1,909,127
units outstanding.
-5-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
June 30, 1997
(Unaudited)
(6) Subsequent Event
On August 13, 1997, 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, 1997 of $582,287, and a return of capital of
$36,016. 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 June 30, 1997, the Partnership had a working capital position that
includes cash and cash equivalents of $1,021,768 and accounts payable of
$66,427. Cash and cash equivalents decreased $80,173 during the second quarter
of 1997. This decrease represents the net effect of $538,130 in cash provided by
operating activities 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 all of these reserves. At June 30, 1997, the
Partnership had $1,021,768 of cash and cash equivalents invested in money market
instruments. It is anticipated that remaining cash and cash equivalents will be
sufficient to satisfy the Partnership's liquidity requirements.
On August 13, 1997, the Partnership will make a distribution to
investors of $618,303. This distribution is comprised of $582,287 of funds
provided by operations during the quarter ended June 30, 1997, and a return of
capital of $36,016 deemed available for distribution by the General Partner.
The Partnership currently has no plans to use 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 obligated to pay percentage rent,
calculated as a percentage of gross parking revenues.
Total parking lot rents of $620,103 and $1,205,206 were earned in the
three and six months ended June 30, 1997, respectively, representing slight
increases over the same periods in 1996. During the first six months of 1997,
the Partnership earned percentage rent at the Birmingham facility of $35,000, an
increase of 16% from the same period in 1996.
Interest earnings decreased by 20% and 23% during the three and six
months ended June 30, 1997, respectively, when compared to the same periods in
1996. This decrease was primarily the result of lower average cash balances.
During the three and six months ended June 30, 1997, expenses (net of
depreciation) totaled $51,405 and $102,870, respectively, representing increases
of 32% and 25% over the same periods in 1996, respectively. The increases are
due to higher administrative costs, including printing, postage, labor and
travel. Recent site visits to certain properties led to additional labor and
travel expenses.
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: 8/8/97 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 8/8/97 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
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 1,021,768
<SECURITIES> 0
<RECEIVABLES> 350,588
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,372,356
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,481,811
<CURRENT-LIABILITIES> 382,015
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 34,481,811
<SALES> 0
<TOTAL-REVENUES> 1,232,026
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 165,244
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,066,782
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,066,782
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,066,782
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
