Storage Properties Inc. announces financial results.

GLENDALE, Calif.--(BUSINESS WIRE)--Feb. 22, 1995--Harvey Lenkin, president of Storage Properties Inc. (ASE:PSA), Wednesday announced that the company's total revenues were $3,557,000 for the year ended Dec. 31, 1994, compared with $3,447,000 for 1993.

Net income for 1994 equaled $1,765,000, or 53 cents per share, vs. $2,373,000, or 71 cents per share, for 1993.

For the three months ended Dec. 31, 1994, total revenues were $951,000, compared with $813,000 for the same period one year earlier. Net income for the three months ended Dec. 31, 1994, equaled $463,000, or 14 cents per share, vs. $391,000, or 12 cents per share, for the same period one year earlier.

Effective June 30, 1993, the company converted the majority of its asset base from first mortgage convertible loans (FMCLs) to fee interest in the properties. As a result, income for 1994 includes the net operating income of these properties vs. the interest income on the mortgage notes secured by these properties for the first two quarters of 1993 and net operating income for the second two quarters.

Brooklyn, N.Y., FMCL

Through 1994, the company had one FMCL secured by a mini-warehouse property in Brooklyn, N.Y., which was owned by the company's adviser, PS Properties Advisors Inc. (PSPA). In accordance with an existing agreement, PSPA has paid down the FMCL in an amount such that annualized cash flow from the Brooklyn property for the six months ended Dec. 31, 1994, provided a 4 percent yield on the FMCL.

The paydown amount was approximately $1.9 million (in addition to a paydown on the FMCL made in June 1994 through the transfer by PSPA to the company of land with an appraised value of $1,155,000). The company has exercised its purchase option with respect to the Brooklyn property effective as of Dec. 31, 1994, thereby converting the FMCL to equity ownership. The company now has a fee interest in seven properties.

Distribution

The company announced that its board of directors has declared an 8-cent-per-share distribution for the first quarter of 1995. The distribution is payable on April 14, 1995, to shareholders of record on March 31, 1995. -0-

                       STORAGE PROPERTIES INC.
                        Summary of Operations
                             (Unaudited)

                                       1994        1993        1992
Revenues:
 Interest income -- affiliate    $  841,000  $1,997,000  $3,084,000
 Interest income -- others           52,000      17,000       7,000
 Rental income                    2,664,000   1,433,000     543,000
                                  3,557,000   3,447,000   3,634,000
Costs and expenses:
 Cost of operations                 864,000     472,000     219,000
 Management fees paid to
  affiliate                         160,000      86,000      14,000
 Depreciation and amortization      612,000     341,000     108,000
 General and administrative         156,000     175,000     196,000
                                  1,792,000   1,074,000     537,000
Net income                       $1,765,000  $2,373,000  $3,097,000
Net income per share               53 cents    71 cents    92 cents
Dividends declared per share       61 cents    69 cents  $     1.00
Weighted average common shares    3,348,167   3,348,167   3,348,167

CONTACT: Storage Properties Inc., Glendale

Harvey Lenkin, 818/244-8080