UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
Amendment No. 2
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 For the fiscal year ended December 31, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the transition period from to
------ ------
Commission File Number 1-10792
-------
PUBLIC STORAGE PROPERTIES XIV, INC.
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
California 95-4300884
- -------------------------------- -----------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
701 Western Avenue
Glendale, California 91201-2349
- ---------------------------------------- -----------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 244-8080
--------------
Securities registered pursuant to Section 12(b) of the Act
Common Stock Series A, $.01 par value American Stock Exchange
- ------------------------------------- ----------------------------------------
(Title of each class) (Name of each exchange on which registered)
Securities registered pursuant to Section 12(g) of the Act
None
--------------
(Title of class)
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
-- --
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the Company's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. X
---
<PAGE>
PUBLIC STORAGE PROPERTIES XIV, INC.
This Amendment No.2 to Form 10-K for the year ended December 31, 1995
restates Item 6 and 14a in their entirety.
Item 6. Selected financial data.
------------------------
The following selected historical financial information has been
derived from the audited financial statements of the Company and the predecessor
Partnership.
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------------
1995 1994 1993 1992 1991
------- ------- ------- ------- -------
(In thousands, except per share data)
Operating data:
- ---------------
REVENUES:
<S> <C> <C> <C> <C> <C>
Rental income $8,448 $8,206 $7,749 $7,573 $7,248
Interest and other income 52 25 15 39 98
------- ------- ------- ------- -------
8,500 8,231 7,764 7,612 7,346
------- ------- ------- ------- -------
EXPENSES:
Cost of operations 2,251 2,155 2,141 2,037 1,938
Management fees paid to affiliates 491 476 449 438 414
Depreciation and amortization 1,403 1,338 1,264 1,253 1,282
General and administrative 241 241 252 328 249
Environmental cost 244 - - - -
Interest expense paid to affiliate - 8 - - -
Reorganization costs (1) - - - - 368
------- ------- ------- ------- -------
4,630 4,218 4,106 4,056 4,251
------- ------- ------- ------- -------
NET INCOME $3,870 $4,013 $3,658 $3,556 $3,095
======= ======= ======= ======= =======
Net income per Series A share:
Primary $1.50 $1.52 $1.34 $1.27 $1.02
Fully diluted $1.19 $1.21 $1.08 $1.03 $0.87
Dividends declared per share:
Series A $1.36 $1.36 $1.36 $1.36 $1.71
Series B $1.36 $1.36 $1.36 $1.36 $1.71
Weighted average Common shares outstanding:
Primary- Series A 2,362 2,431 2,491 2,558 2,656
Fully diluted- Series A 3,254 3,323 3,383 3,450 3,548
Other data:
- -----------
Net cash provided
by operating activities $5,394 $5,200 $4,972 $4,708 $4,669
Net cash used in investing activities (370) (331) (433) (309) (250)
Net cash used in financing activities (5,615) (3,874) (4,948) (5,326) (4,605)
Funds from operations (2) 5,517 5,351 4,922 4,809 4,745
Capital expenditures to maintain
facilities (370) (331) (433) (309) (250)
Balance sheet data:
- -------------------
Total assets $38,794 $40,091 $40,097 $41,357 $43,215
Shareholders' equity 36,785 38,489 38,345 39,611 41,343
</TABLE>
2
<PAGE>
(1) Reorganization costs which primarily consisted of legal, accounting,
transfer taxes, registration and solicitation fees, represent costs
incurred to reorganize the Partnership into the Company.
(2) Funds from operations (FFO) is defined by the Company, consistent with the
definition of FFO by the National Association of Real Estate Investment
Trusts (NAREIT), as net income (loss) (computed in accordance with
generally accepted accounting principles) before depreciation and
extraordinary or non-recurring items. FFO is presented because the Company,
as well as many industry analysts, consider FFO to be one measure of the
performance of the Company, ie, one that generally reflects changes in the
Company's net operating income. FFO does not take into consideration
scheduled principal payments on debt and capital improvements. Accordingly,
FFO is not necessarily a substitute for the Company's cash flow or net
income as a measure of the Company's liquidity or operating performance or
ability to pay distributions. Furthermore, the NAREIT definition of FFO
does not address the treatment of certain items and all REITs do not treat
items the same way in computing FFO. Accordingly, comparisons of levels of
FFO among REITs may not necessarily be meaningful.
3
<PAGE>
PUBLIC STORAGE PROPERTIES XIV, INC.
INDEX TO
FINANCIAL STATEMENTS
AND
FINANCIAL STATEMENT SCHEDULE
(Item 14 (a))
Page
References
----------
Report of Independent Auditors F-1
Financial Statements and Schedule:
Balance Sheets as of December 31, 1995 and 1994 F-2
For each of the three years in the period ended December 31, 1995:
Statements of Income F-3
Statements of Shareholders' Equity F-4
Statements of Cash Flows F-5
Notes to Financial Statements F-6 - F-9
Schedule for the years ended December 31, 1995, 1994 and 1993:
III Real Estate and Accumulated Depreciation F-10 - F-11
All other schedules have been omitted since the required information is not
present or not present in amounts sufficient to require submission of the
schedule, or because the information required is included in the financial
statements or the notes thereto.
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Shareholders
Public Storage Properties XIV, Inc.
We have audited the accompanying balance sheets of Public Storage Properties
XIV, Inc. as of December 31, 1995 and 1994, and the related statements of
income, shareholders' equity and cash flows for each of the three years in the
period ended December 31, 1995. Our audits also included the schedule listed in
the index at item 14 (a). These financial statements and schedule are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Public Storage Properties XIV,
Inc. at December 31, 1995 and 1994, and the results of its operations and its
cash flows for each of the three years in the period ended December 31, 1995, in
conformity with generally accepted accounting principles. Also, in our opinion,
the related financial statement schedule, when considered in relation to the
basic financial statements taken as a whole, presents fairly in all material
respects the information set forth therein.
ERNST & YOUNG LLP
February 27, 1996
Los Angeles, California
F-1
<PAGE>
<TABLE>
<CAPTION>
PUBLIC STORAGE PROPERTIES XIV, INC.
BALANCE SHEETS
December 31, 1995 and 1994
1995 1994
------------ -----------
ASSETS
------
<S> <C> <C>
Cash and cash equivalents $ 949,000 $ 1,540,000
Rent and other receivables 98,000 20,000
Prepaid expenses 329,000 80,000
Real estate facilities at cost:
Building, land improvements and equipment 30,575,000 30,280,000
Land 18,712,000 18,712,000
------------ -----------
49,287,000 48,992,000
Less accumulated depreciation (11,869,000) (10,541,000)
------------ -----------
37,418,000 38,451,000
------------ -----------
Total assets $38,794,000 $40,091,000
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Accounts payable $ 824,000 $ 349,000
Dividends payable 863,000 904,000
Advance payments from renters 322,000 349,000
Shareholders' equity:
Series A common, $.01 par value,
3,569,024 shares authorized,
2,304,218 shares issued and
outstanding (2,423,618 shares
issued and outstanding in 1994) 23,000 24,000
Convertible Series B common, $.01 par
value, 232,762 shares authorized,
issued and outstanding 2,000 2,000
Convertible Series C common, $.01 par
value, 659,494 shares authorized,
issued and outstanding 7,000 7,000
Paid-in-capital 40,941,000 42,997,000
Cumulative income 27,859,000 23,989,000
Cumulative distributions (32,047,000) (28,530,000)
------------ -----------
Total shareholders' equity 36,785,000 38,489,000
------------ -----------
Total liabilities and shareholders' equity $38,794,000 $40,091,000
============ ===========
</TABLE>
See accompanying notes.
F-2
<PAGE>
<TABLE>
<CAPTION>
PUBLIC STORAGE PROPERTIES XIV, INC.
STATEMENTS OF INCOME
For each of the three years in the
period ended December 31, 1995
1995 1994 1993
------------ ------------ ------------
REVENUES:
<S> <C> <C> <C>
Rental income $8,448,000 $8,206,000 $7,749,000
Interest income 52,000 25,000 15,000
------------ ------------ ------------
8,500,000 8,231,000 7,764,000
------------ ------------ ------------
COSTS AND EXPENSES:
Cost of operations 2,251,000 2,155,000 2,141,000
Management fees paid to affiliates 491,000 476,000 449,000
Depreciation and amortization 1,403,000 1,338,000 1,264,000
Administrative 241,000 241,000 252,000
Environmental cost 244,000 - -
Interest expense paid to affiliate - 8,000 -
------------ ------------ ------------
4,630,000 4,218,000 4,106,000
------------ ------------ ------------
NET INCOME $3,870,000 $4,013,000 $3,658,000
============ ============ ============
Primary earnings per share-Series A $1.50 $1.52 $1.34
============ ============ ============
Fully diluted earnings per share-Series A $1.19 $1.21 $1.08
============ ============ ============
Dividends declared per share:
Series A $1.36 $1.36 $1.36
============ ============ ============
Series B $1.36 $1.36 $1.36
============ ============ ============
Weighted average Common shares outstanding:
Primary- Series A 2,361,951 2,430,935 2,491,093
============ ============ ============
Fully diluted- Series A 3,254,207 3,323,191 3,383,349
============ ============ ============
</TABLE>
See accompanying notes.
F-3
<PAGE>
<TABLE>
PUBLIC STORAGE PROPERTIES XIV, INC.
STATEMENTS OF SHAREHOLDERS' EQUITY
For each of the three years in the period ended
December 31, 1995
<CAPTION>
Convertible Convertible
Series A Series B Series C
Shares Amount Shares Amount Shares Amount
---------- --------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Balances at December 31, 1992 2,509,568 $25,000 232,762 $2,000 659,494 $7,000
Net income
Repurchase of shares (70,700) (1,000)
Cash distributions declared:
$1.36 per share - Series A
$1.36 per share - Series B
---------- --------- -------- ------- ------- --------
Balances at December 31, 1993 2,438,868 24,000 232,762 2,000 659,494 7,000
Net income
Repurchase of shares (15,250) -
Cash distributions declared:
$1.36 per share - Series A
$1.36 per share - Series B
---------- --------- -------- ------- ------- --------
Balances at December 31, 1994 2,423,618 24,000 232,762 2,000 659,494 7,000
Net income
Repurchase of shares (119,400) (1,000)
Cash distributions declared:
$1.36 per share - Series A
$1.36 per share - Series B
---------- --------- -------- ------- ------- --------
Balances at December 31, 1995 2,304,218 $23,000 232,762 $2,000 659,494 $7,000
========== ========= ======== ======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
Cumulative Total
Paid-in Net Cumulative Shareholders'
Capital Income Distributions Equity
----------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
Balances at December 31, 1992 $44,469,000 $16,318,000 ($21,210,000) $39,611,000
Net income 3,658,000 3,658,000
Repurchase of shares (1,225,000) (1,226,000)
Cash distributions declared:
$1.36 per share - Series A (3,381,000) (3,381,000)
$1.36 per share - Series B (317,000) (317,000)
----------- ----------- ------------- -------------
Balances at December 31, 1993 43,244,000 19,976,000 (24,908,000) 38,345,000
Net income 4,013,000 4,013,000
Repurchase of shares (247,000) (247,000)
Cash distributions declared:
$1.36 per share - Series A (3,305,000) (3,305,000)
$1.36 per share - Series B (317,000) (317,000)
----------- ----------- ------------- -------------
Balances at December 31, 1994 42,997,000 23,989,000 (28,530,000) 38,489,000
Net income 3,870,000 3,870,000
Repurchase of shares (2,056,000) (2,057,000)
Cash distributions declared:
$1.36 per share - Series A (3,201,000) (3,201,000)
$1.36 per share - Series B (316,000) (316,000)
----------- ----------- ------------- -------------
Balances at December 31, 1995 $40,941,000 $27,859,000 ($32,047,000) $36,785,000
=========== =========== ============= =============
</TABLE>
See accompanying notes.
F-4
<PAGE>
<TABLE>
PUBLIC STORAGE PROPERTIES XIV, INC.
STATEMENTS OF CASH FLOWS
For each of the three years in the
period ended December 31, 1995
<CAPTION>
1995 1994 1993
------------ ----------- -----------
Cash flows from operating activities:
<S> <C> <C> <C>
Net income $3,870,000 $4,013,000 $3,658,000
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 1,403,000 1,338,000 1,264,000
(Increase) decrease in rent and
other receivables (78,000) (6,000) 57,000
Increase in prepaid expenses (249,000) - (37,000)
Increase (decrease) in accounts payable 475,000 (78,000) 6,000
(Decrease) increase in advance
payments from renters (27,000) (67,000) 24,000
------------ ----------- -----------
Total adjustments 1,524,000 1,187,000 1,314,000
---------- ---------- ----------
Net cash provided by operating activities 5,394,000 5,200,000 4,972,000
---------- ---------- ----------
Cash flows from investing activities:
Additions to real estate facilities (370,000) (331,000) (433,000)
----------- ----------- -----------
Net cash used in investing activities (370,000) (331,000) (433,000)
----------- ----------- ------------
Cash flows from financing activities:
Distributions paid to shareholders (3,558,000) (3,627,000) (3,722,000)
Advances from affiliate - 750,000 -
Repayment of advances from affiliate - (750,000) -
Purchase of Company Series A common stock (2,057,000) (247,000) (1,226,000)
------------ ----------- -----------
Net cash used in financing activities (5,615,000) (3,874,000) (4,948,000)
------------ ----------- -----------
Net (decrease) increase in
cash and cash equivalents (591,000) 995,000 (409,000)
Cash and cash equivalents at
the beginning of the year 1,540,000 545,000 954,000
------------ ----------- -----------
Cash and cash equivalents at
the end of the year $ 949,000 $1,540,000 $ 545,000
============ =========== ===========
</TABLE>
See accompanying notes.
F-5
<PAGE>
PUBLIC STORAGE PROPERTIES XIV, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
1. DESCRIPTION OF BUSINESS
Public Storage Properties XIV, Inc. (the "Company") is a California
corporation which has elected to qualify as a real estate investment trust
("REIT") for Federal income tax purposes. The Company succeeded to the
business of Public Storage Properties XIV, Ltd. (the "Partnership") in a
reorganization transaction which was effective June 3, 1991 (the
"Reorganization").
The Company owns and operates primarily self-storage facilities and,
to a lesser extent, business park facilities containing commercial or
industrial spaces.
The term of the Company is until all properties have been sold and, in
any event, not later than December 31, 2038. The bylaws of the Company
provide that, during 1997, unless shareholders have previously approved
such a proposal, the shareholders will be presented with a proposal to
approve or disapprove (a) the sale or financing of all or substantially all
of the properties and (b) the distribution of the proceeds from such
transaction and, in the case of a sale, the liquidation of the Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Income Taxes:
The Company has and intends to continue to qualify as a REIT, as
defined in Section 856 of the Internal Revenue Code (the Code). As a REIT,
the Company is not taxed on that portion of its taxable income which is
distributed to its shareholders provided that the Company meets the
requirements of the Code. The Company believes it is in compliance with
these requirements and, accordingly, no provision for income taxes has been
made.
Statements of Cash Flows:
For purposes of financial statement presentation, the Company
considers all highly liquid debt instruments purchased with a maturity of
three months or less to be cash equivalents.
Real Estate Facilities:
Cost of land includes appraisal and legal fees related to acquisition
and closing costs. Buildings, land improvements and equipment reflect costs
incurred through December 31, 1995 and 1994 to develop primarily
mini-warehouse facilities and to a lesser extent, business park facilities.
The mini-warehouse facilities provide self-service storage spaces for
lease, usually on a month-to-month basis, to the general public. The
buildings and equipment are depreciated on the straight-line basis over
estimated useful lives of 25 and 5 years, respectively. Included in
depreciation and amortization is amortization of tenant improvements on the
Company's business park facilities of $117,000, $85,000 and $36,000 in
1995, 1994, and 1993, respectively.
In 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 121 ("Statement 121"), "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of." Statement 121 requires impairment losses to be recorded on
long-lived assets used in operations when indicators of impairment are
present and the undiscounted cash flows estimated to be generated by those
assets are less than the assets' carrying amount. Statement 121 also
addresses the accounting for long-lived assets that are expected to be
disposed of. The Company will adopt Statement 121 in 1996 and, based on
current circumstances, does not believe the effect of adoption will be
material.
F-6
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Real Estate Facilities (Continued):
At December 31, 1995, the basis of real estate facilities (excluding
land) for Federal income tax purposes (after adjustment for accumulated
depreciation of $14,576,000) is $14,757,000.
Revenue Recognition:
Property rents are recognized as earned.
Net Income Per Share:
Net income per share is based on net income attributable to each
series of common shares and the weighted average number of such shares
outstanding during the periods presented.
Net income per share is presented on a primary and fully diluted
basis. Primary earnings per share represents the Series A shareholders'
rights to distributions out of the respective period's net income, which is
calculated by dividing net income after reduction for distributions to the
Convertible Series B shareholders (Series C shareholders are not entitled
to cash distributions) by the weighted average number of outstanding Series
A shares (Note 4). Fully diluted earnings per share assumes conversion of
the Convertible Series B and Series C shares into Series A shares.
Environmental Cost:
Substantially all of the Company's facilities were acquired prior to
the time that it was customary to conduct environmental investigations in
connection with property acquisitions. During the fourth quarter of 1995,
the Company completed environmental assessments of its properties to
evaluate the environmental condition of, and potential environmental
liabilities of such properties. These assessments were performed by an
independent environmental consulting firm. Based on the assessments, the
Company has expensed, as of December 31, 1995, an estimated $244,000 for
known environmental remediation requirements. Although there can be no
assurance, the Company is not aware of any environmental contamination of
any of its property sites which individually or in the aggregate would be
material to the Company's overall business, financial condition, or results
of operations.
3. RELATED PARTY TRANSACTIONS
In 1995, there were a series of mergers among Pubic Storage
Management, Inc. (which was the Company's mini-warehouse operator), Public
Storage, Inc. and their affiliates (collectively, PSMI), culminating in the
November 16, 1995 merger (the "PSMI merger") of PSMI into Storage Equities,
Inc. (SEI). In the PSMI merger, Storage Equities, Inc.'s name was changed
to Public Storage, Inc. (PSI). B. Wayne Hughes and members of his family
(the Hughes Family) are the major shareholders of PSI. PSI has a 95%
economic interest and the Hughes family has a 5% economic interest in
Public Storage Commercial Properties Group, Inc. (PSCPG).
The Company has Management Agreements with PSI (as
successor-in-interest to PSMI) and PSCPG. Under the terms of the
agreements, PSI operates the mini-warehouse facilities and PSCPG operates
the business park facilities for fees equal to 6% and 5%, respectively, of
the facilities' monthly gross revenue (as defined).
Each Management Agreement provides that the agreement will expire in
February 2002 provided that in February of each year, commencing February
21, 1996, it shall be automatically extended for one year (thereby
F-7
<PAGE>
3. RELATED PARTY TRANSACTIONS (CONTINUED)
maintaining a seven-year term) unless either party notifies the other that
the Management Agreement is not being extended, in which case it expires,
on the first anniversary of its then scheduled expiration date. Each
Management Agreement may also be terminated by either party for cause, but
if terminated for cause by the Company, the Company retains the rights to
use the service marks and related designs until the then scheduled
expiration date, if applicable, or otherwise a date seven years after such
termination.
In August 1995, the Management Agreement with PSMI was amended to
provide that upon demand from PSI or PSMI made prior to December 15, 1995,
the Company agreed to prepay (within 15 days after such demand) up to 12
months of management fees (based on the management fees for the comparable
period during the calendar year immediately preceding such prepayment)
discounted at the rate of 14% per year to compensate for early payment. In
November 1995, the Company prepaid, to PSI, 8 months of 1996 management
fees at a cost of $248,000. The amount is included in prepaid expenses in
the Balance Sheet at December 31, 1995 and will be amortized as management
fee expense in 1996.
In January 1994, the Company borrowed $750,000 from an affiliate for
working capital purposes. The advance, which was repaid in June 1994, bore
interest at the prime rate plus .25%. Interest expense of $8,000 was
charged to income in 1994 with respect to this advance.
4. SHAREHOLDERS' EQUITY
Series A shares are entitled to all distributions of cash from sale or
refinancing and participate ratably with the Convertible Series B shares in
distributions of cash flow from operations. The Convertible Series C shares
(prior to conversion into Series A shares) will not participate in any
distributions.
The Convertible Series B shares and Convertible Series C shares will
convert automatically into Series A shares on a share-for-share basis (the
"Conversion") when (A) the sum of (1) all cumulative dividends and other
distributions from all sources paid with respect to the Series A shares
(including liquidating distributions, but not including payments made to
redeem such stock other than in liquidation) and (2) the cumulative
Partnership distributions from all sources with respect to all units equals
(B) the product of $20 multiplied by the number of the then outstanding
"Original Series A shares". The term "Original Series A shares" means the
Series A shares issued in the Reorganization. Through December 31, 1995,
the Company has made and declared cumulative cash distributions of
approximately $29,382,000 with respect to the Series A shares. Accordingly,
assuming no repurchases or redemptions of Series A shares, Conversion will
occur when $16,703,000 in additional distributions with respect to the
Series A shares have been made.
Assuming liquidation of the Company at its net book value at December
31, 1995 and 1994, each Series of common shares would receive the following
as a liquidating distribution:
1995 1994
------------ ------------
Series A $31,178,000 $34,130,000
Convertible Series B 1,463,000 1,137,000
Convertible Series C 4,144,000 3,222,000
------------ ------------
Total $36,785,000 $38,489,000
=========== ===========
The Series A shares, Convertible Series B shares and Convertible
Series C shares have equal voting rights. The holders of the Convertible
Series B and Convertible Series C shares have agreed to vote along with the
majority of the unaffiliated Series A shareholders on matters other than
control of the Company and its business.
F-8
<PAGE>
4. SHAREHOLDERS' EQUITY (CONTINUED)
The Company's Board of Directors has authorized the Company to
purchase up to 600,000 shares of the Company's Series A common stock. As of
December 31, 1995, the Company had purchased and retired 372,550 shares of
Series A common stock, of which 119,400 and 15,250 were purchased and
retired in 1995 and 1994, respectively.
For Federal income tax purposes, all distributions declared by the
Board of Directors in 1995, 1994 and 1993 were ordinary income.
5. LEASE AGREEMENTS
The Company has invested primarily in mini-warehouses which are
operated as self-storage facilities. Leases for such space are generally on
a month-to-month basis.
The Company has also invested in office and industrial properties
which are operated as business parks. Leases for such space are generally
long-term non-cancelable operating leases. At December 31, 1995, the
minimum amounts receivable under these non-cancelable leases were as
follows:
Year Amount
------- -------------
1996 $ 973,000
1997 404,000
1998 191,000
1999 105,000
2000 32,000
-------------
Total $1,705,000
=============
6. QUARTERLY RESULTS (UNAUDITED)
The following is a summary of unaudited quarterly results of
operations:
<TABLE>
<CAPTION>
Three months ended
----------------------------------------------------------------
March 1995 June 1995 Sept 1995 Dec. 1995
----------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues $2,074,000 $2,136,000 $2,167,000 $2,123,000
----------- --------- --------- ---------
Expenses 1,086,000 1,103,000 1,037,000 1,404,000
----------- --------- --------- ---------
Net income $ 988,000 $ 1,033,000 $ 1,130,000 $ 719,000
=========== ========== ========== ==========
Primary earnings per share- Series A $0.38 $0.40 $0.45 $0.27
=========== ========== ========== ==========
Fully diluted earnings per share- Series A $0.30 $0.32 $0.34 $0.23
=========== ========== ========== ==========
Three months ended
----------------------------------------------------------------
March 1994 June 1994 Sept 1994 Dec. 1994
----------- --------- --------- ---------
Revenues $1,970,000 $2,080,000 $2,108,000 $2,073,000
---------- ---------- ---------- ----------
Expenses 1,067,000 1,047,000 1,048,000 1,056,000
----------- ---------- ---------- ----------
Net income $ 903,000 $ 1,033,000 $ 1,060,000 $ 1,017,000
=========== ========== ========== ==========
Primary earnings per share- Series A $0.34 $0.39 $0.40 $0.39
=========== ========== ========== ==========
Fully diluted earnings per share- Series A $0.27 $0.31 $0.32 $0.31
=========== ========== ========== ==========
</TABLE>
F-9
<PAGE>
<TABLE>
PUBLIC STORAGE PROPERTIES XIV, INC.
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION
<CAPTION>
Initial Cost
-----------------------
Costs
Bldg, Land subsequent to
Date Imp & construction
Completed Description Encumbrances Land Equipment (Improvements)
- ------------ ---------------------- ------------- ---------- ------------- --------------
Mini-warehouses:
<S> <C> <C> <C> <C>
9/85 Annandale / Backlick - $1,109,000 $1,305,000 $54,000
7/85 Ft Worth / West Freeway - 436,000 1,117,000 68,000
8/85 Campbell / S Curtner - 1,923,000 2,062,000 57,000
9/85 Aurora / S Idalia - 1,237,000 1,849,000 216,000
11/85 Santa Cruz / Soquel Ave - 762,000 1,296,000 49,000
9/85 Indianapolis / Lafayette Road - 306,000 1,195,000 29,000
9/85 Indianapolis / Route 31 - 388,000 1,087,000 67,000
4/86 Farmingdale/ Broad Hollow - 636,000 1,953,000 168,000
11/86 Tyson's Corner / Springhill - 3,777,000 4,248,000 76,000
2/86 Fountain Valley / Newhope - 1,329,000 1,850,000 67,000
2/86 Dallas / Winsted - 993,000 1,828,000 48,000
7/85 Columbia / Broad River Rd - 53,000 324,000 25,000
Business parks:
1/86 Torrance II - 4,212,000 5,660,000 844,000
12/86 S San Francisco / Airport - 1,551,000 2,642,000 351,000
------------- ---------- ------------- --------------
- $18,712,000 $28,416,000 $2,159,000
============= ========== =========== ==============
</TABLE>
<TABLE>
PUBLIC STORAGE PROPERTIES XIV, INC.
SCHEDULE III - REAL ESTATE
AND ACCUMULATED DEPRECIATION
<CAPTION>
Gross Carrying Amount
At December 31, 1995
-------------------------------------- Life on Which
Depreciation in
Bldg, Land Latest Income
Date Imp & Accumulated Statements is
Completed Description Land Equipment Total Depreciation Computed
- ------------ ---------------------- --------- ----------- ---------- ------------- ----------------
Mini-warehouses:
<S> <C> <C> <C> <C> <C>
9/85 Annandale / Backlick $1,109,000 $1,359,000 $2,468,000 ($551,000) 5-25 Years
7/85 Ft Worth / West Freeway 436,000 1,185,000 1,621,000 (498,000) 5-25 Years
8/85 Campbell / S Curtner 1,923,000 2,119,000 4,042,000 (876,000) 5-25 Years
9/85 Aurora / S Idalia 1,237,000 2,065,000 3,302,000 (900,000) 5-25 Years
11/85 Santa Cruz / Soquel Ave 762,000 1,345,000 2,107,000 (532,000) 5-25 Years
9/85 Indianapolis / Lafayette R 306,000 1,224,000 1,530,000 (489,000) 5-25 Years
9/85 Indianapolis / Route 31 388,000 1,154,000 1,542,000 (465,000) 5-25 Years
4/86 Farmingdale/ Broad Hollow 636,000 2,121,000 2,757,000 (804,000) 5-25 Years
11/86 Tyson's Corner / Springhil 3,777,000 4,324,000 8,101,000 (1,524,000) 5-25 Years
2/86 Fountain Valley / Newhope 1,329,000 1,917,000 3,246,000 (743,000) 5-25 Years
2/86 Dallas / Winsted 993,000 1,876,000 2,869,000 (730,000) 5-25 Years
7/85 Columbia / Broad River Rd 53,000 349,000 402,000 (155,000) 5-25 Years
Business parks:
1/86 Torrance II 4,212,000 6,544,000 10,756,000 (2,439,000) 5-25 Years
12/86 S San Francisco / Airport 1,551,000 2,993,000 4,544,000 (1,163,000) 5-25 Years
--------- ----------- ---------- -------------
$18,712,000 $30,575,000 $49,287,000 ($11,869,000)
========== =========== ========== =============
</TABLE>
F-10
<PAGE>
<TABLE>
<CAPTION>
PUBLIC STORAGE PROPERTIES XIV, INC.
REAL ESTATE RECONCILIATION
SCHEDULE III (CONTINUED)
(a) The following is a reconciliation of costs and related accumulated
depreciation.
COSTS RECONCILIATION
Years Ended December 31,
---------------------------------------------------------------
1995 1994 1993
---------------------------------------------------------------
<S> <C> <C> <C>
Balance at the beginning of the period $48,992,000 $48,724,000 $48,425,000
Additions during the period:
Improvements 370,000 331,000 433,000
Deductions during the period: (75,000) (63,000) (134,000)
---------------------------------------------------------------
Balance at the close of the period $49,287,000 $48,992,000 $48,724,000
===============================================================
ACCUMULATED DEPRECIATION RECONCILIATION
Years Ended December 31,
---------------------------------------------------------------
1995 1994 1993
---------------------------------------------------------------
Balance at the beginning of the period $10,541,000 $9,266,000 $8,151,000
Additions during the period:
Depreciation 1,403,000 1,338,000 1,249,000
Deductions during the period: (75,000) (63,000) (134,000)
---------------------------------------------------------------
Balance at the close of the period $11,869,000 $10,541,000 $9,266,000
===============================================================
</TABLE>
(b) The aggregate cost of real estate for Federal income tax purposes
is $29,333,000.
F-11
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
Public Storage Properties XIV, Inc.
Dated: February 27, 1997 By:/s/David P. Singelyn
-----------------------------
David P. Singelyn
Vice President and
Chief Finanical Officer
