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, 1998
{ } 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, 1998 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
<TABLE>
<CAPTION>
Unaudited
March 31, December 31,
1998 1997
Assets
<S> <C> <C>
Investment in real estate $33,015,894 $ 33,047,081
Cash and cash equivalents 992,616 1,057,674
Accounts receivable 294,290 294,290
$34,302,800 $ 34,399,045
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 21,275 $ 26,253
Due to affiliate 40,805 30,998
Real estate taxes payable 294,290 294,290
356,370 351,541
Partners' Capital
General Partner (57,251) (55,230)
Assignee and Limited Partnership
Interests - $25 stated value per
unit, 1,909,127 units outstanding 34,003,581 34,102,634
Subordinated Limited Partner 100 100
33,946,430 34,047,504
$34,302,800 $ 34,399,045
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, March 31,
1998 1997
Revenues
<S> <C> <C>
Parking lot rental $ 585,103 $ 585,103
Interest income 12,628 13,231
597,731 598,334
Expenses
Administrative, including amounts
to related party 30,705 36,520
Professional fees 6,646 4,290
Management fees to related party 11,964 10,653
Depreciation of properties 31,187 31,187
80,502 82,650
Net earnings $ 517,229 $ 515,684
Net earnings per unit of assignee and
limited partnership interests-basic $ 0.27 $ 0.26
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Partners' Capital
For the Three Months Ended March 31, 1998 and 1997
(Unaudited)
<TABLE>
<CAPTION>
Assignee
and Limited Subordinated
Partnership Limited General
Interests Partner Partner Total
<S> <C> <C> <C> <C>
Balance at December 31, 1997 $34,102,634 $ 100 $ (55,230) $34,047,504
Net earnings 506,884 - 10,345 517,229
Distribution to partners (605,937) - (12,366) (618,303)
Balance at March 31, 1998 $34,003,581 $ 100 $ (57,251) $33,946,430
Balance at December 31, 1996 $34,320,308 $ 100 $ (50,788) $34,269,620
Net earnings 505,370 - 10,314 515,684
Distribution to partners (605,937) - (12,366) (618,303)
Balance at March 31, 1997 $34,219,741 $ 100 $ (52,840) $34,167,001
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, 1998 March 31,1997
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 515,684 $ 526,766
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation of properties 31,187 30,156
Changes in assets and liabilities
Decrease in accounts receivable 35,370 -
Decrease in accounts payable and accrued expenses (705) (6,964)
Increase in amounts due to affiliates 4,316 7,554
Net cash provided by operating activities 585,852 557,512
Cash flows from financing activities -
distribution to partners (618,303) (618,303)
Net decrease in cash and cash equivalents (32,451) (60,791)
Cash and cash equivalents
Beginning of period 1,134,392 1,495,960
End of period $1,101,941 $1,435,169
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
March 31, 1998
(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 1997
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 March 31, 1998
and December 31, 1997.
(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>
March 31, 1998 December 31, 1997
<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 (828,404) (797,217)
Total $33,015,894 $33,047,081
</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 management fee of $11,964
and $10,653 (1% of gross revenues of the properties and other sources
of income) during the three months ended March 31, 1998 and 1997,
respectively. The general partner is reimbursed for certain costs
incurred relating to administrative and professional services of the
Partnership totaling $28,841 and $35,065 for the three months ended
March 31, 1998 and 1997, 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
March 31, 1998
(Unaudited)
(6) Subsequent Event
On May 14, 1998, the Partnership made 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, 1998 and a return of capital of $69,887. Holders of Units
will receive a cash distribution of $.317 per original $25 unit.
-6-
<PAGE>
<PAGE>
REALTY PARKING PROPERTIES L.P.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At March 31, 1998, the Partnership had a working capital position that
includes cash and cash equivalents of $992,616 and accounts payable of $62,080.
Cash and cash equivalents decreased $65,058 during the first quarter of 1998.
This decrease represents the net effect of $553,245 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 March 31, 1998, the
Partnership had $992,616 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 May 14, 1998, the Partnership made a distribution to investors of
$618,303. This distribution is comprised $548,416 of funds provided by
operations during the quarter ended March 31, 1998, and a return of capital of
$69,887 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 typically obligated to pay
percentage rent, calculated as a percentage of gross parking revenues.
Total parking lot rents of $585,103 (98% of total revenues) were earned
in the first quarter of 1998, consistent with the same period in 1997. No
percentage rents were earned during the first quarter of 1998 or 1997.
Interest earnings decreased by $603 in the first quarter of 1998,
compared to the same period in 1997. This decrease was primarily the result of
lower average cash balances in the first quarter of 1998.
Expenses in the first quarter of 1998, net of depreciation, decreased
by 4% when compared to the same period in 1997. This decrease was due to lower
administrative costs, including printing, postage and travel related expenses.
The Partnership, in accordance with its original investment strategy,
continues to examine opportunities for disposition of its facilities. While it
was originally anticipated that the highest returns would be obtained from
property sales to buyers who desired sites for near-term development potential,
management now believes that certain properties could be sold at substantial
gains based on their parking economics.
-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: 5/15/98 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 5/15/98 By: /s/ Timothy M. Gisriel
Timothy M. Gisriel
Treasurer
Realty Parking Company, Inc.
General Partner
-9-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with legend, if applicable)
</LEGEND>
<CIK> 0000841127
<NAME> Realty Parking Properties L.P.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 992,616
<SECURITIES> 0
<RECEIVABLES> 294,290
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,286,906
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,302,800
<CURRENT-LIABILITIES> 356,370
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 34,302,800
<SALES> 0
<TOTAL-REVENUES> 597,731
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 80,502
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 517,229
<INCOME-TAX> 0
<INCOME-CONTINUING> 517,229
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 517,229
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
