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, 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 June 30, 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>
June 30,
1998 December 31,
Unaudited 1997
Assets
<S> <C> <C>
Investment in real estate $32,984,707 $ 33,047,081
Cash and cash equivalents 921,349 1,057,674
Accounts receivable 349,290 294,290
$34,255,346 $ 34,399,045
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 19,543 $ 26,253
Due to affiliate 36,353 30,998
Real estate taxes payable 294,290 294,290
350,186 351,541
Partners' Capital
General Partner (58,077) (55,230)
Assignee and Limited Partnership
Interests - $25 stated value per
unit, 1,909,127 units outstanding 33,963,137 34,102,634
Subordinated Limited Partner 100 100
33,905,160 34,047,504
$34,255,346 $ 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 Six Months Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
Revenues
<S> <C> <C> <C> <C>
Parking lot rental $640,103 $620,103 $1,225,206 $1,205,206
Interest income 12,653 13,589 25,281 26,820
652,756 633,692 1,250,487 1,232,026
Expenses
Administrative, including amounts
to related party 27,019 37,110 57,723 73,632
Professional fees 6,836 4,500 13,482 8,790
Management fees to related party 10,682 9,795 22,646 20,448
Depreciation 31,187 31,187 62,374 62,374
75,724 82,592 156,225 165,244
Net earnings $577,032 $551,100 $1,094,262 $1,066,782
Net earnings per unit of assignee
and limited partnership interest-basic $ 0.30 $ 0.28 $ 0.56 $ 0.55
</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, 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 1,072,377 - 21,885 1,094,262
Distributions to partners (1,211,874) - (24,732) (1,236,606)
Balance at June 30, 1998 $ 33,963,137 $ 100 $ (58,077) $ 33,905,160
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
</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, 1998 June 30, 1997
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 1,094,262 $ 1,066,782
Adjustments to reconcile net earnings to net cash
provided by operating activities
Depreciation of properties 62,374 62,374
Changes in assets and liabilities
(Increase) decrease in accounts receivable (55,000) 1,270
Decrease in accounts payable and accrued expenses (6,710) (9,492)
Increase in due to affiliates 5,355 3,048
Net cash provided by operating activities 1,100,281 1,123,982
Cash flows from financing activities -
distributions to partners (1,236,606) (1,236,606)
Net decrease in cash and cash equivalents (136,325) (112,624)
Cash and cash equivalents
Beginning of period 1,057,674 1,134,392
End of period $ 921,349 $ 1,021,768
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
June 30, 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 June 30, 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>
June 30, 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 (859,591) (797,217)
Total $32,984,707 $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 $10,682
and $9,795 (1% of gross revenues of the properties and other sources of
income) during the three months ended June 30, 1998 and 1997,
respectively, and $22,646 and $20,448 during the six months ended June
30, 1998 and 1997, respectively. The general partner is reimbursed for
certain costs incurred relating to administrative and professional
services of the Partnership totaling $25,671 and $34,654 for the three
months ended June 30, 1998 and 1997, respectively, and $54,512 and
$69,719 for the six months ended June 30, 1998, 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, 1998
(Unaudited)
(6) Subsequent Event
On August 13, 1998, the Partnership made a cash distribution totaling
$618,303 of which 98% is allocated to assignee and limited partners.
This distribution was derived from funds provided by operations during
the quarter ended June 30, 1998 and a return of capital of $10,084.
Assignee and limited partners received a cash distribution of $.317 per
original $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, 1998, the Partnership had a working capital position that
includes cash and cash equivalents of $921,349 and accounts payable of $55,896.
Cash and cash equivalents decreased $71,267 during the second quarter of 1998.
This decrease represents the net effect of $547,036 in cash provided by
operating activities and distributions to investors of $618,303. It is
anticipated that remaining cash and cash equivalents will be sufficient to
satisfy the Partnership's liquidity requirements.
On August 13, 1998, the Partnership made a distribution to investors of
$618,303 of which 98% was allocated to holders of assignee and limited
partnership units in accordance with the Partnership Agreement. The distribution
consisted of funds provided by operations during the quarter ended June 30,
1998, and a return of capital of $10,084 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 and no
acquisitions of additional properties are anticipated.
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 $640,103 and $1,225,206 were earned in the
three and six months ended June 30, 1998, respectively, and were consistent with
the same periods in 1997. During the first six months of 1998, the Partnership
earned percentage rent at the Birmingham facility totaling $55,000, representing
a $20,000 increase over the same period in 1997.
Expenses in the three and six months ended June 30, 1998, net of
depreciation, decreased by 13% and 9%, respectively, when compared to the same
periods in 1997. This decrease was due to lower administrative costs, including
labor and travel related expenses.
As the Partnership approaches its tenth year, certain leases will
commence expiring in mid-1999. In anticipation, management is closely reviewing
the operating plans for each property. If the Partnership continues to own its
properties after the expiration of their initial lease terms, it is likely that
most leases would be renewed on terms that are similar or improved over current
terms. At least a couple of leases, however, would include terms less favorable
than contained in the current arrangements.
Capital market interest in the parking industry is intense and we
expect the next year to include significant activity, either on a property by
property or portfolio basis.
-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: 8/10/98 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 8/10/98 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-1-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<CASH> 921,349
<SECURITIES> 0
<RECEIVABLES> 349,290
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,270,639
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 34,255,346
<CURRENT-LIABILITIES> 350,186
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 34,255,346
<SALES> 0
<TOTAL-REVENUES> 1,250,487
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 156,225
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,094,262
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,094,262
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,094,262
<EPS-PRIMARY> 0.000
<EPS-DILUTED> 0.000
</TABLE>
