EXHIBIT 13.1
AMERICAN STORAGE PROPERTIES, L.P.
1996 ANNUAL REPORT TO UNITHOLDERS
Message to Investors
Presented for your review is the 1996 Annual Report for American Storage
Properties, L.P. (the "Partnership"). Included in this report is an update on
the liquidation of the Partnership and timing of the final cash distribution to
Limited Partners. Also included are the Partnership's audited financial
statements for the year ended December 31, 1996.
Overview
As you are aware, on October 11, 1996 the Partnership completed the sale of its
nine self-storage facilities to Public Storage, Inc. for $27,500,000 in cash
(the "Sale"). The majority of the proceeds from the Sale were distributed to
Limited Partners during the fourth quarter of 1996, and the remaining proceeds
were set aside to provide for, along with the Partnership's cash reserves, all
liabilities and other obligations of the Partnership through liquidation. The
General Partners intend to utilize any cash after payment of these items to
make a final liquidating distribution to the Limited Partners. We currently
expect this distribution will approximate a minimum of $25 per Unit. As a
result of the Sale, the Partnership is expected to be dissolved during the
second quarter of 1997.
Cash Distributions
The Partnership paid total cash distributions of $567.90 per $465 Unit for the
year ended November 30, 1996, including a special distribution in the amount of
$540 per Unit paid to Limited Partners on November 25, 1996, representing the
majority of the net proceeds from the Sale and fourth quarter cash from
operations. Since inception, the Partnership has paid cumulative cash
distributions totaling $935.12 and $926.75 per original $500 Unit for first and
second close investors, respectively. These amounts include return of capital
payments totaling $575 per Unit. In view of the Sale of the Partnership's
assets, there will be no additional quarterly distributions to Limited
Partners.
Quarterly Cash Distributions Per Limited Partnership Unit
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
1995 $ 8.15 $ 8.15 $ 8.15 $ 9.30 $ 33.75
1996 $ 9.30 $ 9.30 $ 9.30 $ 540.00* $ 567.90
* Special distribution representing majority of the net
proceeds from the Sale of the Partnership's assets and
fourth quarter cash from operations.
Summary
We are pleased to have successfully completed the Sale of the Partnership's
assets. As a result of the Sale, the Partnership is expected to be dissolved
during the second quarter of 1997, at which time a final liquidating
distribution will be made to Limited Partners. In the interim, any questions
regarding the Partnership should be directed to your Financial Consultant or
First Data Investor Services Group. All requests for a change of address
should be submitted in writing to the Partnership's transfer agent, Service
Data Corporation, 2424 South 130th Circle, Omaha, NE 68144-2596. Both First
Data Investor Services Group and Service Data Corporation can be reached at
(800) 223-3464.
Very truly yours,
s/Paul L. Abbott/ s/Robert M. Stanton/
Paul L. Abbott Robert M. Stanton
President Chairman
Storage Services Inc. American Storage Properties, Inc.
General Partner of Goodman Segar Hogan/
American Storage Properties Associates
February 28, 1997
Consolidated Balance Sheets At November 30, At November 30,
1996 1995
Assets
Self-service storage facilities, at cost:
Land $ _ $ 3,756,319
Buildings and improvements _ 16,061,509
19,817,828
Less accumulated depreciation _ (6,010,342)
_ 13,807,486
Cash and cash equivalents 2,770,939 2,667,352
Rent receivable 77,344 108,596
Other assets 34,187 41,327
Total Assets $ 2,882,470 $16,624,761
Liabilities and Partners' Capital (Deficit)
Liabilities:
Accounts payable and accrued expenses $ 269,458 $ 120,589
Due to affiliates 50,197 53,522
Security deposits _ 13,050
Advance rent _ 115,194
Distribution payable 270,642 466,228
Minority interest payable 382,816 13,985
Total Liabilities 973,113 782,568
Partners' Capital (Deficit):
General Partners 3,188 (125,793)
Limited Partners 1,906,169 15,967,986
Total Partners' Capital 1,909,357 15,842,193
Total Liabilities and Partners' Capital $ 2,882,470 $16,624,761
Consolidated Statement of Partners' Capital (Deficit)
For the years ended November 30, 1996, 1995 and 1994
General Limited
Partners Partners Total
Balance at November 30, 1993 $(112,707) $16,089,847 $15,977,140
Net Income (Loss) (6,514) 1,559,612 1,553,098
Cash distributions - (1,634,304) (1,634,304)
Balance at November 30, 1994 $(119,221) $16,015,155 $15,895,934
Net Income (Loss) (6,572) 1,644,786 1,638,214
Cash distributions - (1,691,955) (1,691,955)
Balance at November 30, 1995 $(125,793) $15,967,986 $15,842,193
Net Income 399,623 14,408,146 14,807,769
Cash distributions (270,642) (28,469,963) (28,740,605)
Balance at November 30, 1996 $ 3,188 $ 1,906,169 $ 1,909,357
Consolidated Statements of Operations
For the years ended November 30, 1996 1995 1994
Income
Rental $ 3,066,939 $ 3,494,224 $ 3,363,560
Interest 299,858 126,270 56,620
Total Income 3,366,797 3,620,494 3,420,180
Expenses
Property operating 1,136,797 1,153,216 1,066,654
Depreciation 329,079 657,210 651,352
General and administrative 317,077 155,796 149,076
Total Expenses 1,782,953 1,966,222 1,867,082
Income before minority interest 1,583,844 1,654,272 1,553,098
Minority interest (382,816) (16,058) -
Income from operations 1,201,028 1,638,214 1,553,098
Gain on sale of properties 13,606,741 - -
Net Income $14,807,769 $1,638,214 $ 1,553,098
Net Income (Loss) Allocated:
To the General Partners $ 399,623 $ (6,572) $ (6,514)
To the Limited Partners 14,408,146 1,644,786 1,559,612
$14,807,769 $1,638,214 $ 1,553,098
Per limited partnership unit
(50,132 outstanding) $287.40 $ 32.81 $ 31.11
Consolidated Statements of Cash Flows
For the years ended November 30, 1996 1995 1994
Cash Flows From Operating Activities:
Net Income $14,807,769 $1,638,214 $1,553,098
Adjustments to reconcile net income to net cash
provided by operating activities:
Minority interest 382,816 16,058 -
Depreciation 329,079 657,210 651,352
Gain on sale of properties (13,606,741) - -
Increase (decrease) in cash arising from changes
in operating assets and liabilities:
Rent receivable 31,252 549 (23,607)
Other assets 7,140 (4,239) (18,160)
Accounts payable and accrued expenses 148,869 34,104 296
Due to affiliates (3,325) 18,365 16,603
Security deposits (13,050) (2,754) (5,149)
Advance rent (115,194) 670 (3,252)
Net cash provided by operating activities 1,968,615 2,358,177 2,171,181
Cash Flows From Investing Activities:
Net proceeds from sale of properties 27,085,148 - -
Additions to real estate - (55,984) (97,794)
Net cash provided by (used for)
investing activities 27,085,148 (55,984) (97,794)
Cash Flows From Financing Activities:
Distributions paid - Minority interest (13,985) (2,073) -
Distributions paid - Limited Partners (28,936,191) (1,634,303) (1,634,304)
Net cash used for financing activities (28,950,176) (1,636,376) (1,634,304)
Net increase in cash and cash equivalents 103,587 665,817 439,083
Cash and cash equivalents, beginning of year 2,667,352 2,001,535 1,562,452
Cash and cash equivalents, end of year $2,770,939 $2,667,352 $2,001,535
Notes to the Consolidated Financial Statements
November 30, 1996, 1995 and 1994
1. Organization
American Storage Properties, L.P. (the "Partnership") was organized as a
Limited Partnership under the laws of the Commonwealth of Virginia pursuant to
a Certificate and Agreement of Limited Partnership dated and filed May 15, 1985
(the "Partnership Agreement"). The Partnership was formed for the purpose of
acquiring and operating self-service storage facilities. The General Partners
of the Partnership are Storage Services Inc., an affiliate of Lehman Brothers
(see below), and Goodman Segar Hogan/American Storage Properties, a California
Limited Partnership ("ASP Associates"), an affiliate of Goodman Segar Hogan
Hoffler, L.P. (see below).
On July 31, 1993, Shearson Lehman Brothers Inc. ("Shearson") sold certain of
its domestic retail brokerage and asset management businesses to Smith Barney,
Harris Upham & Co. Incorporated ("Smith Barney"). Subsequent to the sale,
Shearson changed its name to Lehman Brothers Inc. ("Lehman Brothers"). The
transaction did not affect the ownership of the General Partner. However, 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." Additionally,
effective July 31, 1993, the Hutton Storage Services, Inc. general partner
changed its name to Storage Services Inc. to delete any references to "Hutton".
On August 1, 1993, Goodman Segar Hogan Incorporated ("GSH") transferred all of
its leasing, management and sales operations to Goodman Segar Hogan Hoffler,
L.P., a Virginia limited partnership ("GSHH"). On that date, the leasing,
management and sales operations of a portfolio of properties owned by the
principals of Armada/Hoffler were also obtained by GSHH. The General Partner
of GSHH is Goodman Segar Hogan Hoffler, Inc., a Virginia corporation ("GSHH
Inc."), which has a one percent interest in GSHH. The stockholders of GSHH
Inc. are GSH with a 62% stock interest and H.K. Associates, L.P., an affiliate
of Armada/Hoffler ("HK"), with a 38% stock interest. The remaining 99%
interests in GSHH are limited partnership interests owned 50% by GSH and 49% by
HK. The transaction did not affect the ownership of the General Partner.
On March 1, 1996, Public Storage, Inc., a California corporation ("Public
Storage") commenced a tender offer to purchase up to 12,533 outstanding Units
at a net cash price of $419 per unit. On April 2, 1996, the tender offer
expired with Public Storage accepting for purchase 13,516 Units, or
approximately 26.97% of the outstanding Units.
On October 11, 1996, the Partnership sold its nine properties. It is
anticipated that the Partnership will liquidate and settle its remaining assets
and liabilities and consequently dissolve in 1997.
2. Significant Accounting Policies
Basis of Presentation The accompanying consolidated financial statements
include the accounts of the Partnership and its ventures, American Storage
Properties, (Fern Park) L.P. ("Fern Park") and American Storage Properties (Oak
Ridge) L.P. ("Oak Ridge"). Intercompany accounts and transactions between the
Partnership and the ventures have been eliminated in consolidation.
As discussed in Notes 1 and 5, it is anticipated that the Partnership will
liquidate in 1997. Accordingly, the carrying values of the remaining assets at
November 30, 1996, are presented at estimated realizable values and all
liabilities are presented at estimated settlement amounts. Additionally, the
statements of operations and cash flows represent the operations of the
Partnership for the year ended November 30, 1996, including the operations of
the nine properties through October 10, 1996. Operating activities of the
Partnership subsequent to the sale of the properties on October 11, 1996, were
limited.
Self-Service Storage Facilities Self-service storage facilities were recorded
at cost less accumulated depreciation, which included the initial purchase
price of the property plus closing costs, acquisition and legal fees and other
miscellaneous acquisition costs.
Depreciation Depreciation was computed using the straight-line method over the
estimated useful lives of 20 to 25 years for Buildings and Improvements and
five years for Furniture and Fixtures. Depreciation expense for 1996 was only
recorded through May 1996, which is when the Partnership entered into three
contracts of sale, pursuant to which the Partnership agreed to sell its nine
properties (see Note 5). Included in the cost basis of Buildings and
Improvements at November 30, 1995 was $156,995 of Furniture and Fixtures.
Leases Leases were generally on a month-to-month basis and were accounted for
as operating leases.
Cash and Cash Equivalents Cash and cash equivalents consist of short-term,
highly liquid investments that have original maturities of three months or
less. The carrying amount approximates fair value because of the short
maturity of these investments.
Income Taxes No provision for income taxes has been made in the financial
statements since such taxes are the responsibility of the individual partners
rather than that of the Partnership.
Use of Estimates The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Reclassifications Certain prior year amounts have been reclassified in order
to conform to the current year's presentation.
3. Partnership Agreement
The Partnership Agreement provides that the net cash from operations, as
defined, for each fiscal year will be distributed on a quarterly basis, first
to the Limited Partners until each Limited Partner has received an 8% annual
cumulative return based on contributed capital. The net cash from operations
will then be distributed to the General Partners until the General Partners
have received an amount equal to 4% of the net cash from operations distributed
to all partners. The balance of net cash from operations will then be
distributed 96% to the Limited Partners and 4% to the General Partners. As the
8% cumulative return has not been satisfied as of November 30, 1996,
substantially all of the income of the Partnership has been allocated to the
Limited Partners.
Net proceeds from sales or refinancings will generally be distributed 99% to
the Limited Partners and 1% to the General Partners until each Limited Partner
has received an amount equal to his adjusted capital investment, as defined,
and an 11% cumulative annual return thereon. The balance of the net proceeds
will then be distributed 85% to the Limited Partners and 15% to the General
Partners.
Income before depreciation and amortization for any fiscal year will be
allocated in substantially the same manner as net cash from operations. Losses
and depreciation and amortization for any fiscal year will be allocated 99% to
the Limited Partners and 1% to the General Partners.
4. Transactions with Related Parties
The following is a summary of the amounts paid or accrued to the General
Partners and their affiliates during the years ended November 30, 1996, 1995
and 1994:
Unpaid at
November 30, Earned
----------- --------------------------------
1996 1996 1995 1994
Reimbursement of:
Out-of-pocket expenses $ - $ 5,383 $ 3,088 $ 5,420
Administrative salaries
and expenses 50,197 117,442 75,627 57,572
Total $50,197 $122,825 $78,715 $62,992
The above amounts have been paid and/or accrued to the General
Partners and affiliates as follows:
Unpaid at
November 30, Earned
----------- ------------------------------
1996 1996 1995 1994
Storage Services, Inc. and affiliates $35,210 $ 74,763 $45,914 $29,292
ASP Associates and affiliates 14,987 48,062 32,801 33,700
Total $50,197 $122,825 $78,715 $62,992
5. Self-service Storage Facilities
The self-service storage facilities consisted of nine properties
acquired either directly or, in two cases, through investments in
other limited partnerships. On October 11, 1996, the Partnership
sold all nine self-service storage facilities. A description of
each property is as follows:
Number of
Date of Number of Rentable Rentable Purchase
Property Location Purchase Buildings Sq. Ft. Spaces Price
- ----------------- ----------- --------- ------ ------ ----------
880 Widgeon Road May 6, 1986 11 70,430 518 $2,465,000
Norfolk, VA
5728 Southern Blvd. May 6, 1986 5 25,749 228 $ 800,000
Virginia Beach, VA
1205 W. Pembroke Ave. May 6, 1986 7 59,680 657 $2,640,000
Hampton, VA
1430 S. Military Hwy. May 6, 1986 5 75,015 439 $2,200,000
Chesapeake, VA
1717 Bloom Lane May 6, 1986 6 61,603 604 $2,250,000
Richmond, VA
8226 South Hwy 17-92 Dec. 9, 1986 8 69,280 761 $2,129,829
Fern Park, FL
235 East Oak Ridge Rd. Dec. 9, 1986 5 56,410 589 $1,658,250
Orlando, FL
5440 Midlothian Trnpk. Dec. 29, 1986 10 65,600 651 $1,843,150
Richmond, VA
2918 Peter's Creek Rd. Dec. 29, 1986 5 56,524 449 $2,000,000
Roanoke, VA
Sale of Properties On May 17, 1996, the Partnership, entered into three
Contracts of Sale (together, the "Contracts of Sale") dated as of May 17, 1996,
one for the Virginia properties and two as general partner of Fern Park and Oak
Ridge, with Public Storage, pursuant to which the Partnership agreed to sell
substantially all its assets to Public Storage for an aggregate price of
$27,500,000, subject to adjustment, in cash (the "Sale").
The Sale was conditioned upon, among other things, the simultaneous closing of
all three Contracts of Sale, except under certain circumstances, and the
approval of the Sale by holders of a majority of the outstanding units of
limited partnership interests of the Partnership.
To obtain approval for the Sale, a proxy solicitation describing the terms of
the Sale was mailed to Limited Partners on September 10, 1996. Limited
Partners were required to submit executed ballots by October 10, 1996. On
October 10, 1996, the Partnership announced the approval by Limited Partners
holding a majority of the outstanding Units. In accordance with Sections
16.a.(iii) and (iv) of the Partnership Agreement, approval of the Sale will
result in the dissolution of the Partnership.
The Sale of the Partnership's nine properties (the "Properties") was
consummated on October 11, 1996. The Properties were sold for $27,500,000. The
Partnership received net sales proceeds of $27,085,148 and the transaction
resulted in a gain on sale of $13,606,741.
A special cash distribution of $27,071,280, or $540 per Unit, representing the
majority of the net proceeds from the Sale and fourth quarter net cash from
operations, was distributed to the Limited Partners on November 25, 1996. On
January 2, 1997, $270,642 was distributed to the General Partners representing
their portion of the net proceeds from the Sale. As of November 30, 1996, this
amount was reflected as "Distribution Payable" on the Partnership's
consolidated balance sheet. The remaining proceeds from the Sale and cash
reserves will be first used to pay the Partnership's remaining obligations and
costs of liquidation. Any remaining balance will be distributed to the
Partners in accordance with the Partnership Agreement. The General Partners
intend to wind up the affairs of the Partnership and subsequently liquidate the
Partnership in accordance with the terms of the Partnership Agreement in 1997.
Investment in Limited Partnership On December 9, 1986, the Partnership
executed a purchase agreement to acquire an interest in two self-service
storage facilities located in Fern Park, Florida, and Orlando, Florida, through
two Limited Partnerships, Fern Park and Oak Ridge, with affiliates of the
seller of the facilities. The two facilities were acquired for initial
purchase prices of $2,026,750 and $1,658,250, respectively, and future
additional contingent amounts of up to $173,250 and $141,750, respectively,
based upon the achievement of certain cash flow levels. These amounts were
placed in an escrow account. In 1988, upon the expiration of the contingency
period, the cash flow level required for a partial payment was achieved by the
Fern Park property, and as a result, $103,079 was released as an addition to
the original purchase price of the property. The remaining amounts of $70,171
and $141,750 for Fern Park and Oak Ridge, respectively, were returned to the
Partnership. The initial purchase price of each property was disbursed by the
Partnership to the respective Limited Partnerships as a capital contribution.
The Limited Partnership agreements substantially provide that:
i. Net cash from operations will be distributed each
quarter 100% to the Partnership until the Partnership has
received an amount equal to a cumulative annual 12% return
("Preferred Return") on its capital contribution, as
adjusted. The balance of any net cash from operations will
be distributed 85% to the Partnership and 15% to the Limited
Partner. The Preferred Return for Fern Park was satisfied
during 1996 and 1995. The balance of net cash from
operations was distributed according to the guidelines stated
above. The minority share of $10,744 and $16,058 is recorded
within minority interest expense for the years ended November
30, 1996 and 1995, respectively in the financial statements.
As of November 30, 1996 and 1995, $10,744 and $13,985 of the
minority share of net cash from operations were payable to
the Limited Partner respectively. As the Preferred Return
for Oak Ridge has not been satisfied as of November 30, 1996
and 1995, substantially all of the income of the Limited
Partnership has been allocated to the Partnership.
ii. Cash proceeds from interim capital transactions will be
distributed 100% to the Partnership until the Partnership has
received any shortfalls in its preferred return as well as
125% of its aggregate cash investment. The remaining cash
will be distributed 85% to the Partnership and 15% to the
Limited Partner.
iii. Cash proceeds from a terminating capital transaction
will be distributed to the Partners, pro-rata in accordance
with each Partner's capital account balance, to the extent
thereof, after allocation of gain from sale in connection
with such terminating capital transaction. Any remaining
proceeds will be distributed 85% to the Partnership and 15%
to the Limited Partners. As of November 30, 1996, $208,214
and $163,858 for Fern Park and Oak Ridge, respectively were
payable to the Limited Partner in connection with the
terminating capital transaction.
iv. Taxable income will be allocated in substantially the
same manner as net cash from operations. Tax losses will
generally be allocated 85% to the Partnership and 15% to the
Limited Partner.
6. Reconciliation of Net Income to Taxable Income
For the year ended November 30, 1996, taxable income exceeded net income
reported in the consolidated financial statements by $313,836. For the years
ending November 30, 1995 and 1994, net income reported in the consolidated
financial statements exceeded taxable income by $54,705 and $43,260
respectively. As of November 30, 1996, the tax basis of total assets and
liabilities is $11,910,410 and $7,364,636, respectively. These differences are
a result of differences between the tax basis and financial statement reporting
requirements. Different methods of depreciating real estate are used for tax
purposes as compared to those used for financial statement purposes.
Report of Independent Public Accountants
To the Partners of
American Storage Properties, L.P.:
We have audited the accompanying consolidated balance sheets of American
Storage Properties, L.P. (a Virginia limited partnership), and consolidated
ventures, as of November 30, 1996 and 1995, and the related consolidated
statements of operations, partners' capital and cash flows for each of the
three years in the period ended November 30, 1996. These financial
statements are the responsibility of the Partnership'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.
As described in Note 5 to the financial statements, the Partnership
sold all of its properties on October 11, 1996. The Partnership anticipates
settling and liquidating its remaining assets and liabilities and
consequently will dissolve the Partnership in 1997. The balance sheet
presented herein represents the general partners' estimated net realizable
value of all assets and liabilities as of November 30, 1996 and the
statements of operations and cash flows represent the operations of the
Partnership for the year ended November 30, 1996, including the
operations of the properties through October 11, 1996.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of American
Storage Properties, L.P. and consolidated ventures as of November 30, 1996
and 1995, and the results of their operations and their cash flows for each
of the three years in the period ended November 30, 1996, in conformity
with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
January 8, 1997
AMERICAN STORAGE PROPERTIES, L.P.
Schedule III - Real Estate and Accumulated Depreciation
November 30, 1996
Cost Capitalized
Subsequent
Initial Cost to
Partnership To Acquisition
Land,
Buildings and Buildings and
Description Encumbrances Land Improvements Improvements
Self service storage
facilities:
Virginia Beach $ - $ 151,165 $ 722,441 $ 125,706
Hampton - 306,343 2,553,577 36,738
Chesapeake - 327,656 2,076,833 82,779
Richmond - Bloom Ln. - 340,017 2,113,107 12,211
Norfolk - 302,270 2,371,404 74,584
Richmond - Midlothian - 553,763 1,453,322 68,779
Roanoke - 640,485 1,481,025 2,179
- 2,621,699 12,771,709 402,976
Consolidated Ventures:
Oak Ridge - 488,836 1,269,919 14,593
Fern Park - 645,784 1,499,232 103,079
$ - $3,756,319 $15,540,860 $ 520,648
F-1
AMERICAN STORAGE PROPERTIES, L.P.
Schedule III - Real Estate and Accumulated Depreciation
(continued)
November 30, 1996
Gross Amount at Which Carried at Close of Period
Land,
Buildings and Accumulated
Description Improvements Disposals Total Depreciation
Self service storage
facilities:
Virginia Beach $ 999,312 $ (999,312) - -
Hampton 2,896,658 (2,896,658) - -
Chesapeake 2,487,268 (2,487,268) - -
Richmond - Bloom Ln. 2,465,335 (2,465,335) - -
Norfolk 2,748,258 (2,748,258) - -
Richmond - Midlothian 2,075,864 (2,075,864) - -
Roanoke 2,123,690 (2,123,690) - -
15,796,385 (15,796,385) - -
Consolidated Ventures:
Oak Ridge 1,773,348 (1,773,348) - -
Fern Park 2,248,095 (2,248,095) - -
$ 19,817,828 $ (19,817,828) - -
A reconciliation of the carrying amount of real estate and accumulated
depreciation for the years ended November 30, 1996, 1995 and 1994:
Real Estate investments:
1996 1995 1994
Beginning of year $ 19,817,828 $ 19,761,844 $ 19,664,050
Additions - 55,984 97,794
Disposals (19,817,828) - -
End of year $ - $ 19,817,828 $ 19,761,844
Accumulated Depreciation:
Beginning of year $ 6,010,342 $ 5,353,132 $ 4,701,780
Depreciation expense 329,079 657,210 651,352
Disposals (6,339,421) - -
End of year $ - $ 6,010,342 $ 5,353,132
F-2
Report of Independent Public Accountants On Schedule
To Consolidated Financial Statements
To the Partners of
American Storage Properties, L.P.:
We have audited, in accordance with generally accepted auditing standards, the
consolidated financial statements included in American Storage Properties,
L.P.'s annual report to unitholders, incorporated by reference in this Form
10-K, and have issued our report theron dated January 8, 1997. Our audit was
made for the purpose of forming an opinion on those consolidated financial
statements taken as a whole. Schedule III is the responsibility of the
Partnership's management and is presented for purposes of complying with the
Securities and Exchange Commission's rules and is not part of the basic
consolidated financial statements. This schedule has been subjected to the
auditing procedures applied in the audit of the basic consolidated financial
statements and, in our opinion, fairly states, in all material respects, the
financial data required to be set forth therein in relation to the basic
consolidated financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Boston, Massachusetts
January 8, 1997
F-3