UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the period ended March 31, 1997
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from to
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Commission File Number 0-8667
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PUBLIC STORAGE PROPERTIES, LTD.
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(Exact name of registrant as specified in its charter)
California 95-3196921
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
701 Western Ave.
Glendale, California 91201-2349
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (818) 244-8080
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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
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INDEX
Page
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PART I. FINANCIAL INFORMATION
Condensed balance sheets at March 31, 1997
and December 31, 1996 2
Condensed statements of income for the three
months ended March 31, 1997 and 1996 3
Condensed statement of partners' deficit for the
three months ended March 31, 1997 4
Condensed statements of cash flows for the
three months ended March 31, 1997 and 1996 5
Notes to condensed financial statements 6
Management's discussion and analysis of
financial condition and results of operations 7-8
PART II. OTHER INFORMATION 9
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED BALANCE SHEETS
March 31, December 31,
1997 1996
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ASSETS
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Cash and cash equivalents $ 254,000 $ 69,000
Rent and other receivables 47,000 48,000
Real estate facilities:
Building, land improvements and equipment 7,755,000 7,721,000
Land 2,511,000 2,511,000
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10,266,000 10,232,000
Less accumulated depreciation (5,153,000) (5,046,000)
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5,113,000 5,186,000
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Other assets 179,000 200,000
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Total assets $ 5,593,000 $ 5,503,000
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LIABILITIES AND PARTNERS' DEFICIT
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Accounts payable $ 62,000 $ 5,000
Deferred revenue 122,000 118,000
Notes payable 14,940,000 15,217,000
Partners' deficit:
Limited partners' deficit, $500 per unit, 20,000 units
authorized, issued and outstanding (7,077,000) (7,304,000)
General partners' deficit (2,454,000) (2,533,000)
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Total partners' deficit (9,531,000) (9,837,000)
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Total liabilities and partners' deficit $ 5,593,000 $ 5,503,000
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See accompanying notes.
2
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
March 31,
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1997 1996
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REVENUES:
Rental income $ 1,050,000 $ 964,000
Other income 2,000 -
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1,052,000 964,000
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COSTS AND EXPENSES:
Cost of operations 256,000 231,000
Management fees paid to affiliate 63,000 52,000
Depreciation expense 107,000 97,000
Administrative 10,000 9,000
Interest expense 310,000 315,000
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746,000 704,000
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NET INCOME $ 306,000 $ 260,000
=============== ===============
Limited partners' share of net income ($15.15 per unit in 1997
and $12.85 per unit in 1996) $ 303,000 $ 257,000
General partners' share of net income 3,000 3,000
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$ 306,000 $ 260,000
=============== ===============
See accompanying notes.
3
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED STATEMENT OF PARTNERS' DEFICIT
(UNAUDITED)
Total
Limited General Partners'
Partners Partners Deficit
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Balance at December 31, 1996 $(7,304,000) $(2,533,000) $(9,837,000)
Net Income 303,000 3,000 306,000
Equity transfer (76,000) 76,000 -
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Balance at March 31, 1997 $(7,077,000) $(2,454,000) $(9,531,000)
============= ============= =============
See accompanying notes.
4
PUBLIC STORAGE PROPERTIES, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31,
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1997 1996
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Cash flows from operating activities:
Net income $ 306,000 $ 260,000
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 107,000 97,000
Decrease in rent and other receivables 1,000 8,000
Amortization of prepaid management fees - 52,000
Amortization of prepaid loan fees 8,000 8,000
Decrease (increase) in other assets 13,000 (9,000)
Increase (decrease) in accounts payable 57,000 (6,000)
Increase (decrease) in deferred revenue 4,000 (18,000)
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Total adjustments 190,000 132,000
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Net cash provided by operating activities 496,000 392,000
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Cash flows from investing activities:
Additions to real estate facilities (34,000) (3,000)
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Net cash used in investing activities (34,000) (3,000)
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Cash flows from financing activities:
Principal payments on note payable (277,000) (157,000)
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Net cash used in financing activities (277,000) (157,000)
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Net increase in cash and cash equivalents 185,000 232,000
Cash and cash equivalents at the beginning of the period 69,000 89,000
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Cash and cash equivalents at the end of the period $ 254,000 $ 321,000
=============== ===============
See accompanying notes.
5
PUBLIC STORAGE PROPERTIES, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(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,
1996.
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 March 31, 1997, the results of its operations for the three months ended
March 31, 1997 and its cash flows for the three months then ended.
3. The results of operations for the three months ended March 31, 1997 are not
necessarily indicative of the results expected for the full year.
6
PUBLIC STORAGE PROPERTIES, LTD.,
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
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THREE MONTHS ENDED MARCH 31, 1997 COMPARED TO THREE MONTHS ENDED MARCH 31,
1996:
The Partnership's net income for the three months ended March 31, 1997 was
$306,000 compared to $260,000 for the three months ended March 31, 1996,
representing an increase of $46,000 or 18%. This increase is primarily a result
of increased operating results at the Partnership's real estate facilities and a
decrease in interest expense resulting from a lower note payable balance in 1997
compared to 1996.
Rental income for the three months ended March 31, 1997 was $1,050,000
compared to $964,000 for the three months ended March 31, 1996, representing an
increase of $86,000 or 9%. This increase is primarily attributable to increased
occupancy levels and rental rates. The weighted average occupancy levels at the
mini-warehouse facilities were 92% and 89% for the three months ended March 31,
1997 and 1996, respectively. Realized rent for the three months ended March 31,
1997 increased to $.75 per occupied square foot from $.71 per occupied square
foot for the three months ended March 31, 1996.
Cost of operations (including management fees paid to an affiliate) for the
three months ended March 31, 1997 was $319,000 compared to $283,000 for the
three months ended March 31, 1996, representing an increase of $36,000 or 13%.
This increase is mainly attributable to increases in management fees and
property tax expenses. Property taxes increased due to an increase in property
tax rates at some of the Partnership's mini-warehouse facilities.
In 1995, the Partnership prepaid eight months of 1996 management fees on
its mini-warehouse operations, discounted at the rate of 14% effective rate to
compensate for early payment. As a result, management fee expense for the three
months ended March 31, 1996 was $6,000 lower than it would have been under the
customary undiscounted fee structure.
Interest expense decreased $5,000 to $310,000 in the three months ended
March 31, 1997 from $315,000 in the same period in 1996. This decrease is mainly
attributable to lower outstanding principal balances on the Partnership's notes
payable.
7
LIQUIDITY AND CAPITAL RESOURCES
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Cash generated from operations ($496,000 for the three months ended March
31, 1997) has been sufficient to meet all current obligations of the
Partnership.
In the fourth quarter of 1990, quarterly distributions were discontinued to
enable the Partnership to increase its cash available for principal payments
that commenced in 1993.
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PART II. OTHER INFORMATION
ITEMS 1 through 5 are inapplicable.
ITEM 6 Exhibits and Reports on Form 8-K
(a) The following Exhibit is included herein:
(27) Financial Data Schedule
(b) 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: May 13, 1997
PUBLIC STORAGE PROPERTIES, LTD.
BY: Public Storage, Inc.
General Partner
BY: /s/ John Reyes
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John Reyes
Senior Vice President and
Chief Financial Officer
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