UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended August 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: 0-15550
AMERICAN STORAGE PROPERTIES, L.P.
(formerly Hutton/GSH American Storage Properties, L.P.)
(Exact name of registrant as specified in its charter)
Virginia 11-2741889
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 World Financial Center, 29th Floor,
New York, NY Attn: Andre Anderson 10285
(Address of principal executive offices) (Zip Code)
(212) 526-3237
(Registrant's telephone number, including area code)
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
Consolidated Balance Sheets
August 31, November 30,
Assets 1995 1994
Self-service storage facilities, at cost:
Land $ 3,756,319 $ 3,756,319
Buildings and improvements 16,045,130 16,005,525
19,801,449 19,761,844
Less accumulated depreciation (5,845,738) (5,353,132)
13,955,711 14,408,712
Cash and cash equivalents 2,505,060 2,001,535
Other assets 150,847 146,233
Total Assets $ 16,611,618 $ 16,556,480
Liabilities and Partners' Capital
Liabilities:
Accounts payable and accrued expenses $ 141,080 $ 86,485
Due to affiliates 26,610 35,157
Security deposits 13,412 15,804
Advance rent 122,421 114,524
Distribution payable 408,576 408,576
Total Liabilities 712,099 660,546
Partners' Capital (Deficit):
General Partners (124,147) (119,221)
Limited Partners 16,023,666 16,015,155
Total Partners' Capital 15,899,519 15,895,934
Total Liabilities and Partners' Capital $ 16,611,618 $ 16,556,480
Consolidated Statement of Partners' Capital (Deficit)
For the nine months ended August 31, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ (119,221) $ 16,015,155 $ 15,895,934
Net income (loss) (4,926) 1,236,313 1,231,387
Cash distributions 0 (1,227,802) (1,227,802)
Balance at August 31, 1995 $ (124,147) $ 16,023,666 $ 15,899,519
Consolidated Statements of Operations
Three months ended Nine months ended
August 31, August 31,
Income 1995 1994 1995 1994
Rent $ 899,280 $ 858,615 $ 2,600,452 $ 2,504,546
Interest 33,035 14,851 91,013 34,872
Total Income 932,315 873,466 2,691,465 2,539,418
Expenses
Property operating 297,904 249,262 853,898 794,517
Depreciation 164,286 162,658 492,606 487,114
General and administrative 37,829 37,222 113,574 107,887
Total Expenses 500,019 449,142 1,460,078 1,389,518
Net Income $ 432,296 $ 424,324 $ 1,231,387 $ 1,149,900
Net Income (Loss) Allocated:
To the General Partners $ (1,643) $ (1,626) $ (4,926) $ (4,871)
To the Limited Partners 433,939 425,950 1,236,313 1,154,771
$ 432,296 $ 424,324 $ 1,231,387 $ 1,149,900
Per limited partnership
unit (50,132 outstanding) $ 8.65 $ 8.49 $ 24.66 $ 23.03
Consolidated Statements of Cash Flows
For the nine months ended August 31, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 1,231,387 $ 1,149,900
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 492,606 487,114
Increase (decrease) in cash arising from
changes in operating assets and liabilities:
Other assets (4,614) (23,973)
Accounts payable and accrued expenses 54,595 29,030
Due to affiliates (8,547) 1,256
Security deposits (2,392) (3,988)
Advance rent 7,897 12,196
Net cash provided by operating activities 1,770,932 1,651,535
Cash Flows from Investing Activities:
Additions to real estate (39,605) (84,646)
Net cash used for investing activities (39,605) (84,646)
Cash Flows from Financing Activities:
Distributions paid (1,227,802) (1,225,727)
Net cash used for financing activities (1,227,802) (1,225,727)
Net increase in cash and cash equivalents 503,525 341,162
Cash and cash equivalents at beginning of period 2,001,535 1,562,452
Cash and cash equivalents at end of period $ 2,505,060 $ 1,903,614
Notes to the Consolidated Financial Statements
The unaudited interim consolidated financial statements should be read in
conjunction with the Partnership's annual 1994 audited consolidated financial
statements within Form 10-K.
The unaudited consolidated financial statements include all adjustments which
are, in the opinion of management, necessary to present a fair statement of
financial position as of August 31, 1995 and the results of operations and cash
flows for the nine months ended August 31, 1995 and 1994 and the statement of
partners' capital (deficit) for the nine months ended August 31, 1995. Results
of operations for the periods are not necessarily indicative of the results to
be expected for the full year.
No significant events have occurred subsequent to fiscal year 1994, and no
material contingencies exist which would require disclosure in this interim
report per Regulation S-X, Rule 10-01, Paragraph (a)(5).
Part I, Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
As of August 31, 1995, the Partnership had cash and short-term investments of
$2,505,060 which were invested in unaffiliated money market accounts. The
increase of $503,525 from November 30, 1994 is attributable to net cash
provided by operating activities exceeding cash distributions to the Limited
Partners and additions to real estate.
Accounts payable and accrued expenses increased from $86,485 at November 30,
1994 to $141,080 at August 31, 1995. The increase is primarily attributable to
the timing of payments for property appraisals, legal fees and real estate
taxes.
The Partnership expects sufficient cash flow to be generated from operations to
meet its current operating requirements. Net cash flow from operations is
distributed to the Limited Partners on a quarterly basis in proportion to the
number of units held by each Limited Partner. On or about October 23, 1995,
the Partnership will pay a distribution of net cash flow from operations of
$8.15 per unit for the quarter ended August 31, 1995.
Certain age-related repairs and capital improvements which are required at the
properties are being funded from the Partnership's cash reserves and cash flow
from operations. Future cash distributions will depend on the adequacy of cash
flow from operations following capital improvements and could be reduced should
market conditions negatively impact occupancy. The amount of future cash
distributions to the Limited Partners will be determined quarterly following
a review of the Partnership's operations and cash requirements.
Results of Operations
Partnership operations resulted in net income of $432,296 and $1,231,387 for
the three and nine months ended August 31, 1995, respectively, compared with
$424,324 and $1,149,900 for the corresponding periods in fiscal 1994. The
improvement in operating results for 1995 is primarily attributable to an
increase in rental income and interest income, partially offset by higher
property operating expenses.
Rental income totaled $899,280 and $2,600,452 for the three and nine months
ended August 31, 1995, respectively, compared with $858,615 and $2,504,546 for
the corresponding periods in fiscal 1994. The increase in rental income can be
attributed in part to increased rental rates at several of the Partnership's
properties, as well as higher occupancy levels at certain properties,
particularly the Mechanicsville facility. Interest income totaled $33,035 and
$91,013 for the three and nine months ended August 31, 1995, respectively,
compared with $14,851 and $34,872 for the corresponding periods in fiscal 1994.
The increases for the 1995 periods are primarily due to higher interest rates
through 1995 as well as higher cash balances maintained by the Partnership in
1995 compared to 1994.
Property operating expenses totaled $297,904 and $853,898 for the three and
nine months ended August 31, 1995, respectively, compared with $249,262 and
$794,517 for the corresponding periods in fiscal 1994. The increase is
primarily due to higher costs for routine repairs and maintenance. General and
administrative expenses totaled $37,829 and $113,574 for the three and nine
months ended August 31, 1995, respectively, largely unchanged from $37,222 and
$107,887 for the corresponding periods in fiscal 1994.
The average weighted occupancy at the Partnership's properties was 92% at
August 31, 1995, compared with 93% at August 31, 1994.
PART II OTHER INFORMATION
Items 1-4 Not applicable
Item 5 Shearson Lehman Brothers Inc. sold certain of its domestic
retail brokerage and asset management businesses to Smith Barney,
Harris Upham & Co. Incorporated ("Smith Barney"). The assets
acquired by Smith Barney included the name "Hutton." Consequently,
effective August 3, 1995, the name of the Partnership was changed
to American Storage Properties, L.P. to delete any reference to
"Hutton."
Item 6 Exhibits and reports on Form 8-K.
(a) Exhibits
(27) Financial Data Schedule
(b) Reports on Form 8-K - No reports on Form 8-K were
filed during the three month period covered by this report.
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.
AMERICAN STORAGE PROPERTIES, L.P.
BY: STORAGE SERVICES INC.
General Partner
Date: October 16, 1995 BY: s/Paul L. Abbott/
Name: Paul L. Abbott
Title: Director, President, Chief
Executive Officer and Chief
Financial Officer