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, 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 June 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
<TABLE>
<CAPTION>
Page No.
Part I. Financial Information
Item 1. Financial Statements
<S> <C>
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 7-8
Item 3. Quantitative and Qualitative Disclosures
About Market Risk 9
Part II. Other Information
Item 1. through Item 6. 9
Signatures 10
</TABLE>
<PAGE>
REALTY PARKING PROPERTIES L.P.
Balance Sheets
<TABLE>
<CAPTION>
June 30,
2000 December 31,
(Unaudited) 1999
------------------ -----------------
Assets
<S> <C> <C>
Investment in real estate $ 19,767,226 $ 20,200,296
Cash and cash equivalents 1,044,256 9,803,643
Accounts receivable and other assets 225,530 263,185
------------------ -----------------
$ 21,037,012 $ 30,267,124
================== =================
Liabilities and Partners' Capital
Accounts payable and accrued expenses $ 29,049 $ 32,777
Due to affiliates 69,693 215,861
Real estate taxes payable 213,466 233,500
------------------ -----------------
312,208 482,138
------------------ -----------------
Partners' Capital
General Partner - -
Assignee and Limited Partnership
Interests - $25 stated value per
unit, 1,909,127 units outstanding 20,724,704 29,784,886
Subordinated Limited Partner 100 100
------------------ -----------------
20,724,804 29,784,986
------------------ -----------------
$ 21,037,012 $ 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 Six Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
--------------------------------- ---------------------------------
Revenues
<S> <C> <C> <C> <C>
Parking lot rental $ 484,444 $ 655,103 $ 963,027 $ 1,240,206
Interest income 15,761 11,435 71,011 21,537
---------------- --------------- ---------------- ----------------
500,205 666,538 1,034,038 1,261,743
---------------- --------------- ---------------- ----------------
Expenses
Administrative, including amounts
to related party 32,080 30,268 68,823 59,359
Professional fees 5,000 6,822 10,000 11,322
Management fees to related party 8,000 10,134 16,110 22,171
Real estate tax 5,341 - 10,682 -
Depreciation 30,256 31,187 60,512 62,373
---------------- --------------- ---------------- ----------------
80,677 78,411 166,127 155,225
---------------- --------------- ---------------- ----------------
Earnings from operations 419,528 588,127 867,911 1,106,518
Gain on sale of property, net - - 767,622 -
---------------- --------------- ---------------- ----------------
Net earnings $ 419,528 $ 588,127 $ 1,635,533 $ 1,106,518
================ =============== ================ ================
Net earnings per unit of assignee and
limited partnership interest-basic $ 0.22 $ 0.30 $ 0.85 $ 0.57
================ =============== ================ ================
</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, 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 1,613,251 - 22,282 1,635,533
Distributions to partners -
Operations (1,091,809) - (22,282) (1,114,091)
Sales proceeds (9,581,624) - - (9,581,624)
---------------------------------------------------------------------------
Balance at June 30, 2000 $ 20,724,704 $ 100 $ - $ 20,724,804
===========================================================================
Balance at December 31, 1998 $ 34,066,407 $ 100 $ (55,969) $ 34,010,538
Net earnings 1,084,388 - 22,130 1,106,518
Distributions to partners-operations (1,211,874) - (24,732) (1,236,606)
---------------------------------------------------------------------------
Balance at June 30, 1999 $ 33,938,921 $ 100 $ (58,571) $ 33,880,450
===========================================================================
</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, June 30,
2000 1999
-----------------------------------
Cash flows from operating activities
<S> <C> <C>
Net earnings $ 1,635,533 $ 1,106,518
Adjustments to reconcile net earnings to net cash
provided by operating activities
Gain on sale of property, net (767,622) -
Depreciation 60,512 62,373
Changes in assets and liabilities:
Decrease in accounts receivable and
real estate taxes payable, net 17,621 292,260
Decrease in accounts payable and accrued expenses (3,728) (15,522)
Increase (decrease) in due to affiliates (146,168) 5,783
------------------ -----------------
Net cash provided by operating activities 796,148 1,451,412
------------------ -----------------
Cash flows from investing activities -
proceeds from sale of property, net 1,140,180 -
------------------ -----------------
Cash flows from financing activities -
distributions to partners (10,695,715) (1,236,606)
------------------ ----------------
Net increase (decrease) in cash and cash equivalents (8,759,387) 214,806
Cash and cash equivalents
Beginning of period 9,803,643 789,876
------------------ -----------------
End of period $ 1,044,256 $ 1,004,682
================== =================
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
June 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 June 30, 2000 and December 31, 1999.
Note 3 - Investment in Real Estate
Investment in real estate is summarized as follows:
<TABLE>
<CAPTION>
June 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 (1,091,700) (1,032,377)
---------- ----------
Total $19,767,226 $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 capital 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 $8,000 and $10,134
during the three months ended June 30, 2000 and 1999, respectively, and $16,110
and $22,171 during the six months ended June 30, 2000 and 1999, respectively.
The general partner was reimbursed for certain costs incurred relating to
administrative and professional services of the Partnership totaling $28,057 and
$28,339 for the three months ended June 30, 2000 and 1999, respectively, and
$74,164 and $52,989 for the six months ended June 30, 2000 and 1999,
respectively.
-5-
<PAGE>
REALTY PARKING PROPERTIES L.P.
Notes to Financial Statements
June 30, 2000
(Unaudited)
Note 6 - Net Earnings Per Unit of Assignee and Limited Partnership Interest
Net earnings per unit of assignee and limited partnership interest is disclosed
on the Statements of Operations and is based upon 1,909,127 units outstanding.
-6-
<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 June 30, 2000, the Partnership had a working capital position that
included cash and cash equivalents of $1,044,256, accounts receivable (net of
real estate taxes payable) of $12,064 and accounts payable of $98,742. Cash and
cash equivalents decreased $84,903 during the second quarter of 2000. This
decrease represents the net effect of $410,885 in cash provided by operating
activities and the quarterly distribution to investors totaling $495,788.
On August 10, 2000, the Partnership made a cash distribution totaling
$459,412 of which 98% is allocable to Assignee and Limited Partners. The
distribution includes $449,784 in funds provided by operations during the
quarter ended June 30, 2000 and a return of capital of $9,628. Assignee and
Limited Partners will receive a cash distribution of approximately $.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.
Total parking lot rents of $484,444 were earned during the second
quarter of 2000, reflecting a decrease of $170,659 from the same period in 1999.
Total parking lot rents of $963,027 were earned during the six months ended June
30, 2000, reflecting a decrease of $277,179 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 2000. This property produced rental income of $209,507
during the six months ended June 30, 1999, that was not earned in 2000. The
decreases are also due to a decline in revenues from three of the property's as
a result of lease expirations. The decreases were partly offset by the
percentage rents totaling $90,093 earned at certain facilities during the six
months ended June 30, 2000, reflecting an increase of $20,093 over the same
period in 1999.
Expenses incurred during the three and six months ended June 30, 2000,
net of depreciation, totaled $50,421 and $105,615, respectively, reflecting
increases of $3,197 and $12,763 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.
-7-
<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 the
leases on the Kansas City and Reno facilities which expire in 2000. The Kansas
City facility will be operated under the terms of a management agreement with a
parking operator, similar to terms associated with the Dayton, Rochester and Los
Angeles properties. The Reno facility may be sold or leased to a casino. 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 received interest from potential buyers of its
Dayton, Reno and St. Paul-Jackson facilities. Management is currently working
with the potential buyers to negotiate sale contracts. There are, however, no
assurances that these facilities will be sold.
-8-
<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
-9-
<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: 8/14/00 By: /s/ John M. Prugh
John M. Prugh
President and Director
Realty Parking Company, Inc.
General Partner
DATE: 8/14/00 By: /s/ Timothy M. Gisriel
Timothy M. Gisriel
Treasurer
Realty Parking Company, Inc.
General Partner
-10-
