SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _____________ to ________________
Commission file number: 1-13462
Full title of the plan and the address of the plan, if different from that of
the issuer named below:
STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
Name of issuer of securities held pursuant to the plan and the address of its
principal executive office:
STORAGE TRUST REALTY
2407 RANGELINE STREET
COLUMBIA, MO 65202
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
INDEX
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Page
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Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4-8
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INDEPENDENT AUDITORS' REPORT
The Administrative Committee
Storage Trust Properties, L.P. Integrated 401(k)
Profit Sharing Plan and Trust
We have audited the accompanying statements of net assets available for plan
benefits of Storage Trust Properties, L.P. Integrated 401(k) Profit Sharing
Plan and Trust (the "Plan") as of December 31, 1996 and 1995, and the related
statements of changes in net assets available for plan benefits for the year
ended December 31, 1996 and for the period from July 1, 1995 (inception of the
Plan) to December 31, 1995. These financial statements are the responsibility
of the Plan's management. Our responsibility is to express an opinion on
these financial statements 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 statement referred to above present fairly, in
all material respects, the net assets available for plan benefits of Storage
Trust Properties, L.P. Integrated 401(k) Profit Sharing Plan and Trust as of
December 31, 1996 and 1995, and the changes in net assets available for the
year ended December 31, 1996 and for the period from July 1, 1995 (inception
of the Plan) to December 31, 1995, in conformity with generally accepted
auditing principles.
DON L. LANDERS AND CO.
Columbia, Missouri
July 11, 1997
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
1996 1997
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Assets:
Assets held by Trustee:
Investments, at market value:
Mutual funds $ 36,855 $ 6,161
Money market funds 32,964 1,688
Common shares of Storage Trust Realty 33,426 6,461
Cash 31 -
Total assets held by Trustee 103,276 14,310
Contributions receivable:
Participants 5,935 2,450
Employer 2,651 3,140
Total contributions receivable 8,586 5,590
Interest and dividends receivable 722 104
Total assets 112,584 20,004
Liabilities - -
Net Assets Available for Plan Benefits $112,584 $ 20,004
</TABLE>
The accompanying notes are an integral part of these statements.
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
YEAR ENDED DECEMBER 31, 1996 AND
PERIOD FROM JULY 1, 1995 (INCEPTION OF PLAN) TO DECEMBER 31, 1995
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1996 1995
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Additions to Net Assets:
Contributions:
Participants $ 66,425 $ 13,588
Employers 22,999 5,437
Total contributions 89,424 19,025
Investment income:
Unrealized appreciation in fair value
of investments 6,690 805
Realized gains on sales of investments 265 -
Interest and dividends 3,839 174
Total investment income 10,794 979
Total additions 100,218 20,004
Deductions from Net Assets:
Distributions to participants 7,638 -
Net Increase 92,580 20,004
Net Assets Available for Plan Benefits:
Beginning of period 20,004 -
End of period $112,584 $ 20,004
</TABLE>
The accompanying notes are an integral part of these statements.
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following description of the Storage Trust Properties, L.P.
Integrated 401(k) Profit Sharing Plan and Trust (the "Plan") provides
only general information. Participants should refer to the Plan
Agreement, effective as of July 1, 1995, and the First Amendment to the
Plan Agreement, effective as of November 1, 1996, for a more complete
description of the Plan's provisions.
General
The Plan is a defined contribution plan sponsored by Storage Trust
Properties, L.P., with adopting employers Storage Realty Management Co.
and Storage Trust Realty (the "Employer"). The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974
("ERISA").
Those who are eligible to participate in the Plan are full-time
employees who have attained the age of 20 years, 6 months and have
completed one year of employment (three months for those hired after the
effective date of the First Amendment).
Contributions
Eligible participants may elect to contribute a portion of their pretax
earnings to the Plan ("Elective Contributions"), subject to limitations
imposed by the Internal Revenue Service. The Employer matches 50% of
the participant's contributions to the Plan, up to 2% of the
participant's compensation ("Matching Contributions").
The Employer may voluntarily contribute additional amounts, subject to
limitations imposed by the Internal Revenue Service ("Voluntary
Contributions").
Participant's Accounts
Each participant's account is credited with (a) the participant's
Elective Contributions, (b) the Employer's Matching Contributions, (c)
the Employer's Voluntary Contributions, (d) allocations of Plan earnings
and (e) forfeitures of terminated participants' non-vested accounts upon
distribution of the vested portion of their accounts. Participants are
entitled to the benefit that can be provided from the vested portion of
the participant's account.
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN (continued)
Vesting
Participants are immediately vested on their Elective Contributions and
the actual earnings thereon. Vesting for (a) the Employer's Matching
Contributions, (b) the Employer's Voluntary Contributions, (c) the
allocation of forfeitures and (d) the earnings thereon are based upon
the years of service of the participant. A "year of service" is defined
as a plan year in which the participant completes at least 1,000 hours
of service. A participant becomes 20% vested after two years of service
and vests an additional 20% for each year of service thereafter and is
100% vested after six years of service.
Forfeitures
Participants who terminate employment and receive distribution of the
vested portion of their account forfeit any non-vested portion of their
account. These forfeitures are allocated to all other participants and
those employees who are eligible to participate in the Plan.
Payment of Benefits
On termination of service due to death, disability or retirement, a
participant may elect to receive an amount equal to the value of the
participant's vested interest in their account in either a lump-sum
amount or in periodic installments. For termination of service due to
other reasons, a participant may receive an amount equal to the
participant's vested interest in their account as a lump-sum
distribution.
Administrative Expenses
Trustee fees and other expenses of the Plan are paid directly by the
Employer.
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The financial statements of the Plan are prepared using the accrual
method of accounting.
Investment Valuation and Income Recognition
Mutual fund, money market fund and common stock investments are stated
at fair market determined by quoted market prices. Purchases and sales
of securities are recorded on a trade-date basis.
Interest income is recorded on an accrual basis. Dividends are recorded
on the ex-dividend date.
Distributions to Participants
Distributions are recorded when paid.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan administrator to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results may differ from those
estimates.
3. TAX STATUS
The Plan has received a favorable determination letter, dated February
22, 1996, from the Internal Revenue Service that the Plan qualifies
under Section 401(a) of the Internal Revenue Code and is exempt from
federal income taxes under the provisions of Section 501(a).
The Plan has been amended since receiving the determination letter.
However, the Plan administrator and the Plan's tax counsel believe that
the Plan is designed and is currently being operated in compliance with
the applicable requirements of the Internal Revenue Code.
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
4. PLAN TERMINATION
Although it has not expressed any intent to do so, the Employer has the
right under the Plan to discontinue its Matching Contributions at any
time and to terminate the Plan, subject to the provisions of ERISA. In
the event of Plan termination, participants will become 100% vested in
their accounts.
5. EXCESS CONTRIBUTIONS
Elective Contributions received from participants during 1996 include
$4,491 in excess of amounts allowed by the Internal Revenue Code. These
Elective Contributions will be returned to participants in 1997 to
satisfy the requirements of the Internal Revenue Code.
<PAGE>
STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
6. INVESTMENTS
The Plan's investments are held in a bank-administrated trust fund.
Investments at fair value, as determined by quoted market price, at
December 31, 1996 and 1995 include the following:
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<CAPTION>
1996 1995
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Mutual Funds:
Fidelity Advisor Growth Opportunity Fund
(735 and 123 units) $ 25,933 $ 3,891
Fidelity Advisor Long-Term Bond Fund
(813 and 168 units) 8,535 1,820
Fidelity Advisor Overseas Stock Fund
(155 and 31 units) 2,387 450
Total 36,855 6,161
Money Market Funds:
Fidelity Daily Money Market Fund
(32,811 and 1,604 units) 32,811 1,604
SEI Daily Income Treasury Fund
(153 and 84 units) 153 84
Total 32,964 1,688
Common shares of Storage Trust Realty
(1,238 and 284 shares) 33,426 6,461
Total $103,245 $ 14,310
</TABLE>
During 1996 and 1995, the Plan's investments (including investments
bought, sold and held during the periods) appreciated (depreciated) in
value as follows:
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<CAPTION>
1996 1995
<S> <C> <C>
Fidelity Advisor Growth Opportunity Fund $ 1,118 $ 56
Fidelity Advisor Long-Term Bond Fund (65) 13
Fidelity Advisor Overseas Stock Fund 50 8
Common shares of Storage Trust Realty 5,587 728
Total $ 6,690 $ 805
</TABLE>
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefits) have duly
caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
Date: July 11, 1997 /s/ Stephen M. Dulle
Stephen M. Dulle
Plan Administrator
