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 September 30, 2000
{ } 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 September 30, 2000 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
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-7
Item 3. Quantitative and Qualitative Disclosures
About Market Risk 8
Part II. Other Information
Item 1. through Item 6. 8
Signatures 9
<PAGE>
REALTY PARKING PROPERTIES L.P.
Balance Sheets
<TABLE>
<CAPTION>
September 30,
2000 December 31,
(Unaudited) 1999
------------------ -----------------
Assets
<S> <C> <C>
Investment in real estate $ 19,736,970 $ 20,200,296
Cash and cash equivalents 943,607 9,803,643
Accounts receivable and other assets 242,253 263,185
------------------ -----------------
$ 20,922,830 $ 30,267,124
================== =================
Liabilities and Partners' Capital
Liabilities
Accounts payable and accrued expenses $ 17,830 $ 32,777
Due to affiliates 31,076 215,861
Real estate taxes payable 192,000 233,500
------------------ -----------------
240,906 482,138
------------------ -----------------
Partners' Capital
General Partner - -
Assignee and Limited Partnership
Interests - $25 stated value per
unit, 1,909,127 units outstanding 20,681,824 29,784,886
Subordinated Limited Partner 100 100
------------------ -----------------
20,681,924 29,784,986
------------------ -----------------
$ 20,922,830 $ 30,267,124
================== =================
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
--------------------------------- ---------------------------------
Revenues
<S> <C> <C> <C> <C>
Parking lot rental $ 481,903 $ 802,065 $ 1,444,930 $ 2,042,272
Interest income 14,200 11,283 85,210 32,820
---------------- --------------- ---------------- ----------------
496,103 813,348 1,530,140 2,075,092
---------------- --------------- ---------------- ----------------
Expenses
Administrative, including amounts
to related party 26,925 26,427 95,749 85,785
Professional fees 5,000 4,500 15,000 15,822
Management fees to related party 6,946 8,863 23,056 31,034
Real estate tax 10,444 - 21,125 -
Depreciation 30,256 31,187 90,768 93,561
---------------- --------------- ---------------- ----------------
79,571 70,977 245,698 226,202
---------------- --------------- ---------------- ----------------
Earnings from operations 416,532 742,371 1,284,442 1,848,890
Gain on sale of property, net - - 767,622 -
---------------- --------------- ---------------- ----------------
Net earnings $ 416,532 $ 742,371 $ 2,052,064 $ 1,848,890
================ =============== ================ ================
Net earnings per unit of assignee and
limited partnership interest-basic $ 0.21 $ 0.38 $ 1.06 $ 0.95
================ =============== ================ ================
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Partners' Capital
For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
Assignee
and Limited Subordinated
Partnership Limited General
Interests Partner Partner Total
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at December 31, 1999 $ 29,784,886 $ 100 $ - $ 29,784,986
Net earnings 2,020,594 - 31,470 2,052,064
Distributions to partners -
Operations (1,542,032) - (31,470) (1,573,502)
Sales proceeds (9,581,624) - - (9,581,624)
-------------------------------------------------------------------------
Balance at September 30, 2000 $ 20,681,824 $ 100 $ - $ 20,681,924
=========================================================================
Balance at December 31, 1998 $ 34,066,407 $ 100 $ (55,969) $ 34,010,538
Net earnings 1,811,912 - 36,978 1,848,890
Distributions to partners-operations (1,817,811) - (37,098) (1,854,909)
-------------------------------------------------------------------------
Balance at September 30, 1999 $ 34,060,508 $ 100 $ (56,089) $ 34,004,519
=========================================================================
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
REALTY PARKING PROPERTIES L.P.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, September 30,
2000 1999
-----------------------------------
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 2,052,064 $ 1,848,890
Adjustments to reconcile net earnings to net cash
provided by operating activities
Gain on sale of property, net (767,622) -
Depreciation 90,768 93,561
Changes in assets and liabilities
(Increase) decrease in accounts receivable and
real estate taxes payable, net (20,568) 73,274
Decrease in accounts payable and accrued expenses (14,947) (6,407)
Decrease in due to affiliates (184,785) (1,833)
------------------ -----------------
Net cash provided by operating activities 1,154,910 2,007,485
------------------ -----------------
Cash flows from investing activities -
proceeds from sale of property, net 1,140,180 -
------------------ -----------------
Cash flows from financing activities -
distributions to partners (11,155,126) (1,854,909)
------------------ ----------------
Net increase (decrease) in cash and cash equivalents (8,860,036) 152,576
Cash and cash equivalents
Beginning of period 9,803,643 789,876
------------------ -----------------
End of period $ 943,607 $ 942,452
================== =================
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
September 30, 2000
(Unaudited)
Note 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 financial position, operating results and cash flows 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 1999 Annual Report.
Note 2 - Cash and Cash Equivalents
The Partnership considers all short-term investments with maturities of three
months or less at dates of purchase as cash equivalents. Cash and cash
equivalents consist entirely of cash and money market accounts and are stated at
cost, which approximates market value at September 30, 2000 and December 31,
1999.
Note 3 - Investment in Real Estate Investment in real estate is summarized as
follows:
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
<S> <C> <C>
Land $17,224,495 $17,596,092
Buildings 3,445,777 3,445,777
Land Improvements 188,654 190,804
20,858,926 21,232,673
Less accumulated depreciation 1,121,956 1,032,377
Total $19,736,970 $20,200,296
</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.
Note 4 - Sale of Property
On February 10, 2000, the Partnership sold its St. Paul-Tank, Minnesota property
for $1,335,586. The Partnership's investment in the property was $372,558, net
of accumulated depreciation of $1,189. The gain from the sale totaled $767,622,
net of expenses of $195,406.
Note 5 - Related Party Transactions
The Partnership's general partner earned a management fee of $6,946 and $8,863
during the three months ended September 30, 2000 and 1999, respectively, and
$23,056 and $31,034 during the nine months ended September 30, 2000 and 1999,
respectively. The general partner was reimbursed for certain costs incurred
relating to administrative and professional services of the Partnership totaling
$26,520 and $21,994 for the three months ended September 30, 2000 and 1999,
respectively, and $100,684 and $74,983 for the nine months ended September 30,
2000 and 1999, respectively.
Note 6 - Subsequent Event
On November 15, 2000 the Partnership will make a cash distribution totaling
$459,412 of which 98% will be allocated to Assignee and Limited Partners. The
distribution includes $446,788 in funds provided by operations during the
quarter ended September 30, 2000 and a return of capital of $12,624. Assignee
and Limited Partners will receive a cash distribution of approximately $0.24 per
unit.
-5-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
The Partnership was fully invested in parking properties as it entered
2000 and currently has no plans to use working capital to perform major repairs
or improvements to any of its properties. The Partnership has sufficient cash
and cash equivalents to satisfy its liquidity requirements.
At September 30, 2000, the Partnership had a working capital position
that included cash and cash equivalents of $943,607, accounts receivable (net of
real estate taxes payable) of $50,253 and accounts payable of $17,830. Cash and
cash equivalents decreased $100,649 during the third quarter of 2000. This
decrease represents the net effect of $358,762 in cash provided by operating
activities and the quarterly distribution to investors totaling $459,411.
On November 15, 2000 the Partnership will make a cash distribution
totaling $459,412 of which 98% will be allocated to Assignee and Limited
Partners. The distribution includes $446,788 in funds provided by operations
during the quarter ended September 30, 2000 and a return of capital of $12,624.
Assignee and Limited Partners will receive a cash distribution of approximately
$0.24 per unit.
Results of Operations
Parking lot revenue includes base and percentage rents earned pursuant
to the lease agreements with Central Parking System (the "Advisor") and the net
operating revenues of the three properties operated under management agreements.
The Partnership leases nine of its facilities to the Advisor under terms that
include a minimum rent calculated as a percentage of certain acquisition costs.
In addition, the Advisor is obligated to pay percentage rent, calculated as a
percentage of gross parking revenues in excess of a base amount. The
Partnership's remaining three properties are being managed by parking operators
under separate management agreements with the Partnership. Under the terms of
the typical management agreement, the operator forwards the property's net
operating revenues to the Partnership. The operator's management fee is
generally fixed, but may include an annual incentive fee if operations exceed
budget. The Partnership is responsible for the payment of real estate taxes for
all properties that are operated under management agreements.
Total parking lot rents of $481,903 were earned during the third
quarter of 2000, reflecting a decrease of $320,162 from the same period in 1999.
Total parking lot rents of $1,444,930 were earned during the nine months ended
September 30, 2000, reflecting a decrease of $597,342 from the same period in
1999. The decreases are primarily due to the sales of the Denver property in
1999 and the St. Paul-Tank property in early 2000. The Denver property produced
rental income of $374,261 during the nine months ended September 30, 1999, that
was not earned in 2000. The decreases are also due to a decline in revenues from
three of the properties as a result of lease expirations. Additionally,
percentage rents totaling $177,850 earned at certain facilities during the nine
months ended September 30, 2000, reflected a decrease of $109,112 from the same
period in 1999. The reduction in percentage rents is primarily attributable to
the Milwaukee and Denver facilities. Operations at the Milwaukee garage have
been hampered by structural problems that have led to lower parking revenues,
and in turn lower percentage rents.
Expenses incurred during the three and nine months ended September 30,
2000, net of depreciation, totaled $49,315 and $154,930, respectively,
reflecting increases of $9,525 and $22,289 over the same periods in 1999. The
increases are primarily due to higher administrative costs and real estate
taxes, net of a decrease in the management fees due to sales of two of the
Partnership's properties.
-6-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Outlook
The Advisor has notified the Partnership that it will not extend leases
on the Kansas City and Reno facilities, which expire in 2000. The Kansas City
facility will be leased to the Advisor under a new lease which will provide for
a fixed annual rent, the Partnership, however, will be responsible for paying
real estate taxes. The rent the Partnership receives under this scenario will be
approximately $35,000 less per year, than it received under the previous lease.
The Partnership continues to review operating alternatives for the Reno facility
pending its sale. It appears, however, that a resolution may not occur before
the lease expires on November 30, or the consumation of a sale. Annual rental
revenue received by the Partnership will decrease due to the expiration of the
leases. It is not expected that the operations will negatively impact the
Partnership's operating liquidity needs in 2000; however, the Partnership may
need to adjust its distribution rate to investors in the future to reflect the
actual operations of the properties and/or terms of the lease renewals.
The Partnership has signed contracts for the sale of the Dayton and
Reno facilities and is negotiating contracts for the Rochester and St.
Paul-Jackson facilities. There are, however, no assurances that these facilities
will be sold.
-7-
<PAGE>
REALTY PARKING PROPERTIES L.P.
PART I. FINANCIAL INFORMATION
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Inapplicable
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Inapplicable
Item 2. Changes in Securities and Use of Proceeds
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: Financial Data Schedule
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: 11/10/00 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 11/10/00 By: /s/ Timothy M. Gisriel
Timothy M. Gisriel
Treasurer
Realty Parking Company, Inc.
General Partner
-9-
