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, 1997
[ ] 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, 1997 AND 1996
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, 1997 and 1996, and the related
statements of changes in net assets available for plan benefits for the years
ended December 31, 1997 and 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 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, 1997 and 1996, and the changes in net assets
available for the years ended December 31, 1997 and 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 14, 1998
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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, 1997 AND 1996
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1997 1996
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Assets:
Assets held by Trustee:
Investments, at market value:
Mutual funds $117,856 $ 36,855
Money market funds 32,135 32,964
Common shares of Storage Trust Realty 51,837 33,426
Cash - 31
Total assets held by Trustee 201,828 103,276
Contributions receivable:
Participants 3,672 5,935
Employer 6,828 2,651
Total contributions receivable 10,500 8,586
Interest and dividends receivable 658 722
Total assets 212,986 112,584
Liabilities - -
Net Assets Available for Plan Benefits $212,986 $112,584
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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
YEARS ENDED DECEMBER 31, 1997 AND 1996 AND
PERIOD FROM JULY 1, 1995 (INCEPTION OF PLAN) TO DECEMBER 31, 1995
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1997 1996 1995
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Additions to Net Assets:
Contributions:
Participants $ 86,655 $ 66,425 $ 13,588
Employers 29,561 22,999 5,437
Total contributions 116,216 89,424 19,025
Investment income:
Unrealized appreciation in fair value
of investments 3,566 6,690 805
Realized gains on sales of investments 3,152 265 -
Interest and dividends 12,636 3,839 174
Total investment income 19,354 10,794 979
Total additions 135,570 100,218 20,004
Deductions from Net Assets:
Distributions to participants 35,168 7,638 -
Net Increase 100,402 92,580 20,004
Net Assets Available for Plan Benefits:
Beginning of period 112,584 20,004 -
End of period $212,986 $112,584 $ 20,004
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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
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 three
months of employment (one year for those hired before the effective date of
the First Amendment). Participants will be eligible to receive Matching
Contributions (as defined below) after completing 1,000 hours of service.
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
eligible Elective 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
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
additional20% 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 (by having at least 1000 hours of service)
in the Plan. For 1996, forfeitures totaled $1,241 and were allocated to
the other participants and those employees who are eligible to participate
in the Plan. For 1997, forfeitures totaled $4,038 and have not yet been
allocated.
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
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.
Therefore, no provisions for income taxes have been included in the Plan's
financial statements.
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
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.
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.
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STORAGE TRUST PROPERTIES, L.P. INTEGRATED
401(K) PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
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, 1997 and 1996 include the following:
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1997 1996
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Mutual Funds:
Fidelity Advisor Growth Opportunity Fund
(2,099 and 735 units) $ 89,100 $ 25,933
Fidelity Advisor Long-Term Bond Fund
(1,675 and 813 units) 17,760 8,535
Fidelity Advisor Overseas Stock Fund
(688 and 155 units) 10,996 2,387
Total 117,856 36,855
Money Market Funds:
Fidelity Daily Money Market Fund
(25,731 and 32,811 units) 25,731 32,811
SEI Daily Income Treasury Fund
(6,404 and 153 units) 6,404 153
Total 32,135 32,964
Common shares of Storage Trust Realty
(1,970 and 1,238 shares) 51,837 33,426
Total $201,828 $103,245
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During 1997, 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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1997 1996 1995
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Fidelity Advisor Growth Opportunity Fund $ 5,924 $ 1,118 $ 56
Fidelity Advisor Long-Term Bond Fund 208 (65) 13
Fidelity Advisor Overseas Stock Fund (544) 50 8
Common shares of Storage Trust Realty (2,022) 5,587 728
Total $ 3,566 $ 6,690 $ 805
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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 14, 1998 /s/ Stephen M. Dulle
Stephen M. Dulle
Plan Administrator
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