PS PARTNERS V, LTD.
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
REVENUE:
Rental income $79,000 $76,000 $219,000 $218,000
Equity in earnings of real estate entities 1,273,000 1,060,000 3,560,000 2,797,000
Interest income 59,000 26,000 149,000 72,000
----------------------------------------------------------------------
1,411,000 1,162,000 3,928,000 3,087,000
----------------------------------------------------------------------
COSTS AND EXPENSES:
Cost of operations 24,000 23,000 75,000 80,000
Management fees 5,000 4,000 13,000 13,000
Depreciation and amortization 13,000 14,000 39,000 41,000
Administrative 25,000 45,000 132,000 113,000
----------------------------------------------------------------------
67,000 86,000 259,000 247,000
----------------------------------------------------------------------
NET INCOME $1,344,000 $1,076,000 $3,669,000 $2,840,000
======================================================================
Limited partners' share of net income
($21.43 per unit in 2000 and
$15.66 per unit in 1999) $3,173,000 $2,318,000
General partner's share of net income 496,000 522,000
-----------------------------------
$3,669,000 $2,840,000
===================================
See accompanying notes.
3
PS PARTNERS V, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
September 30,
-------------------------------------
2000 1999
-------------------------------------
Cash flows from operating activities:
Net income $3,669,000 $2,840,000
Adjustments to reconcile net income to net cash
Provided by operating activities
Depreciation and amortization 39,000 41,000
Increase in other assets (1,000) (14,000)
Decrease in accounts payable (44,000) (5,000)
Increase in advance payments from renters 1,000 2,000
Equity in earnings of real estate entities (3,560,000) (2,797,000)
-------------------------------------
Total adjustments (3,565,000) (2,773,000)
-------------------------------------
Net cash provided by operating activities 104,000 67,000
-------------------------------------
Cash flows from investing activities:
Distributions from real estate entities 4,476,000 4,808,000
Additions to real estate facility (4,000) (5,000)
-------------------------------------
Net cash provided by investing activities 4,472,000 4,803,000
-------------------------------------
Cash flows from financing activities:
Distributions to partners (4,640,000) (4,990,000)
-------------------------------------
Net cash used in financing activities (4,640,000) (4,990,000)
-------------------------------------
Net decrease in cash and cash equivalents (64,000) (120,000)
Cash and cash equivalents at the beginning of the period 2,295,000 2,702,000
-------------------------------------
Cash and cash equivalents at the end of the period $2,231,000 $2,582,000
=====================================
See accompanying notes.
4
PS PARTNERS V, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
1. The accompanying unaudited condensed financial statements have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and regulations, although management
believes that the disclosures contained herein are adequate to make the information presented not
misleading. These unaudited condensed financial statements should be read in conjunction with the
financial statements and related notes appearing in the Partnership's Form 10-K for the year ended
December 31, 1999.
2. In the opinion of management, the accompanying unaudited condensed financial statements reflect all
adjustments, consisting of only normal accruals, necessary to present fairly the Partnership's financial
position at September 30, 2000, the results of operations for the three and nine months ended September
30, 2000 and 1999 and cash flows for the nine months then ended.
3. The results of operations for the three and nine months ended September 30, 2000 are not necessarily
indicative of the results to be expected for the full year.
4. In January 1997, the Joint Venture, PSI, and other related partnerships transferred a total of 35
business parks to PS Business Parks, LP ("PSBPLP"), an operating partnership formed to own and operate
business parks in which PSI has a significant interest. Included among the properties transferred were
the Joint Venture's business parks in exchange for a partnership interest in PSBPLP. The general
partner of PSBPLP is PS Business Parks, Inc.
5. Summarized combined financial data with respect to the Real Estate Entities is as follows:
Nine Months Ended September 30,
------------------------------------
2000 1999
------------ ------------
Total revenues............................................... $124,198,000 $105,284,000
Minority interest in income.................................. $18,391,000 $10,769,000
Net income................................................... $39,348,000 $35,748,000
5
PS PARTNERS V, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward Looking Statements
When used within this document, the words "expects," "believes," "anticipates," "should," "estimates,"
and similar expressions are intended to identify "forward-looking statements" within the meaning of that term in
Section 27A of the Securities Act of 1933, as amended, and in Section 21F of the Securities Exchange Act of 1934,
as amended. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors,
which may cause the actual results and performance of the Partnership to be materially different from those
expressed or implied in the forward-looking statements. Such factors include the impact of competition from new
and existing real estate facilities which could impact rents and occupancy levels at the real estate facilities
in which the Partnership has an interest; the Partnership's ability to effectively compete in the markets in
which it does business; the impact of the regulatory environment as well as national, state, and local laws and
regulations including, without limitation, those governing Partnerships; and the impact of general economic
conditions upon rental rates and occupancy levels at the real estate facilities in which the Partnership has an
interest.
Results of Operations
Three months ended September 30, 2000 compared to three months ended September 30, 1999:
Our net income for the three months ended September 30, 2000 was $1,344,000 compared to $1,076,000 for
the three months ended September 30, 1999, representing an increase of $268,000, or 24.9%. The increase was
primarily due to a decrease in depreciation expense allocated to us with respect to the Joint Venture, our share
of improved earnings of PSBPLP, increased interest income and lower administrative expense.
Property Operations
Rental income for our wholly-owned mini-warehouse property was $79,000 compared to $76,000 for the three
months ended September 30, 2000 and 1999, respectively, representing an increase of $3,000, or 4.0%. Cost of
operations (including management fees) increased $2,000, or 7.4%, to $29,000 from $27,000 for the three months
ended September 30, 2000 and 1999, respectively. Accordingly, for our wholly-owned mini-warehouse property,
property net operating income increased $1,000, or 2.0%, to $50,000 from $49,000 for the three months ended
September 30, 2000 and 1999, respectively.
6
Equity in Earnings of Real Estate Entities
Equity in earnings of real estate entities was $1,273,000 in the three months ended September 30, 2000
as compared to $1,060,000 during the three months ended September 30, 1999, representing an increase of $213,000,
or 20.1%. This was due primarily a decrease in depreciation expense allocated to us with respect to the Joint
Venture and our share of improved earnings of PSBPLP.
Depreciation and Amortization
Depreciation and amortization decreased by $1,000, or 7.1% from $14,000 to $13,000 for the three months
ended September 30, 1999 and 2000, respectively.
Administrative
Administrative expense decreased $20,000, to $25,000 in the three months ended September 30, 2000 as
compared to $45,000 in the same period in 1999, due primarily to decreased professional fees.
Nine months ended September 30, 2000 compared to nine months ended September 30, 1999:
Our net income for the nine months ended September 30, 2000 was $3,669,000 compared to $2,840,000 for
the nine months ended September 30, 1999, representing an increase of $829,000, or 29.2%. The increase was
primarily due to a decrease in depreciation expense allocated to us with respect to the Joint Venture, our share
of improved operating results at the Mini-Warehouse Properties and increased interest income.
Property Operations
Rental income for our wholly-owned mini-warehouse property was $219,000 compared to $218,000 for the
nine months ended September 30, 2000 and 1999, respectively, representing an increase of $1,000, or 0.5%. Cost
of operations (including management fees) decreased $5,000, or 5.4%, to $88,000 from $93,000 for the nine months
ended September 30, 2000 and 1999, respectively. Accordingly, for our wholly-owned mini-warehouse property,
property net operating income increased $6,000, or 4.8%, to $131,000 from $125,000 for the nine months ended
September 30, 2000 and 1999, respectively.
7
Equity in Earnings of Real Estate Entities
Equity in earnings of real estate entities was $3,560,000 in the nine months ended September 30, 2000 as
compared to $2,797,000 during the nine months ended September 30, 1999, representing an increase of $763,000, or
27.3%. This was due primarily to a decrease in depreciation expense allocated to us with respect to the Joint
Venture and our share of improved operating results at the Joint Venture's mini-warehouses.
Depreciation and Amortization
Depreciation and amortization decreased $2,000, or 4.9%, from $41,000 to $39,000 for the nine months
ended September 30, 1999 and 2000, respectively.
Administrative
Administrative expense increased $19,000, to $132,000 in the nine months ended September 30, 2000 as
compared to $113,000 in the same period in 1999, due primarily to the timing of investor services related
expenses.
Supplemental Property Data
Most of the Partnership's net income is from our share of the operating results of the Mini-Warehouse
Properties. Therefore, in order to evaluate our operating results, the General Partners analyze the operating
performance of the Mini-Warehouse Properties.
Three months ended September 30, 2000 compared to three months ended September 30, 1999:
Rental income for the Mini-Warehouse Properties was $3,859,000 compared to $3,774,000 for the three
months ended September 30, 2000 and 1999, respectively, representing an increase of $85,000, or 2.3%. The
increase in rental income was primarily attributable to increased rental rates at the Mini-Warehouse Properties,
offset partially by decreased average occupancy rates. The annual average realized rent per square foot for the
Mini-Warehouse Properties was $9.30 compared to $9.09 for the three months ended September 30, 2000 and 1999,
respectively. The weighted average occupancy levels at the Mini-Warehouse Properties decreased from 93% to 91%
for the three months ended September 30, 1999 and 2000, respectively. Cost of operations (including management
fees) increased $98,000, or 7.4%, to $1,423,000 from $1,325,000 for the three months ended September 30, 2000 and
1999, respectively. This increase is primarily attributable to higher repairs and maintenance, advertising and
8
payroll expenses, offset partially by lower property tax expense. Accordingly, for the Mini-Warehouse
Properties, property net operating income decreased by $13,000, or 0.5%, from $2,449,000 to $2,436,000 for the
three months ended September 30, 1999 and 2000, respectively.
Nine months ended September 30, 2000 compared to nine months ended September 30, 1999:
Rental income for the Mini-Warehouse Properties was $11,267,000 compared to $10,969,000 for the nine
months ended September 30, 2000 and 1999, respectively, representing an increase of $298,000, or 2.7%. The
increase in rental income was primarily attributable to increased rental rates at the Mini-Warehouse Properties.
The annual average realized rent per square foot for the Mini-Warehouse Properties was $9.08 compared to $8.88
for the nine months ended September 30, 2000 and 1999, respectively. The weighted average occupancy levels at
the Mini-Warehouse Properties remained stable at 92% for the nine months ended September 30, 1999 and 2000,
respectively. Cost of operations (including management fees) increased $142,000, or 3.5%, to $4,207,000 from
$4,065,000 for the nine months ended September 30, 2000 and 1999, respectively. This increase is primarily
attributable to higher advertising, repairs and maintenance and payroll expenses, offset partially by lower
property tax expense. Accordingly, for the Mini-Warehouse Properties, property net operating income increased by
$156,000, or 2.3%, from $6,904,000 to $7,060,000 for the nine months ended September 30, 1999 and 2000,
respectively.
Liquidity and Capital Resources
We have adequate sources of cash to finance our operations, both on a short-term and long-term basis,
primarily from internally generated cash from property operations and cash reserves. Cash generated from
operations and distributions from real estate entities ($4,580,000 for the nine months ended September 30, 2000)
has been sufficient to meet all our current obligations.
Total capital improvements for the nine months ended September 30, 2000 with respect to our wholly-owned
property was $4,000. During the remainder of fiscal 2000, we do not anticipate incurring significant costs for
capital improvements for this property.
We paid distributions to the limited and general partners totaling $4,134,000 ($27.93 per unit) and
$506,000, respectively, during the first nine months of 2000. Included in these distributions is $1,440,000
($9.63 per unit) and $160,000, respectively, paid to the limited and general partners, respectively, in special
distributions. Future distribution rates may be adjusted to levels which are supported by operating cash flow
after capital improvements and any other necessary obligations.
9
PART II. OTHER INFORMATION
ITEMS 1 through 5 are not applicable.
Item 6 Exhibits and Reports on Form 8-K
(a) The following Exhibits are included herein:
(27) Financial Data Schedule
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
DATED: November 13, 2000
PS PARTNERS V, LTD.
BY: Public Storage, Inc.
General Partner
BY: /s/ John Reyes
John Reyes
Senior Vice President and Chief Financial
Officer of Public Storage, Inc.
(principal financial and accounting officer)
10
