<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------------
SCHEDULE 13E-3
(Amendment No. 2)
RULE 13E-3 TRANSACTION STATEMENT
(PURSUANT TO SECTION 13(E) OF THE SECURITIES
EXCHANGE ACT OF 1934)
Windsor Park Properties 3,
A California Limited Partnership
(Name of Issuer)
N'Tandem Trust
Chateau Communities, Inc.
Windsor Park Properties 3,
A California Limited Partnership
(Name of Person(s) Filing Statement)
Units of Limited Partnership Interest
(Title of Class of Securities)
N/A
(CUSIP Number of Class of Securities)
Steven G. Waite
The Windsor Corporation
6160 South Syracuse Way
Greenwood Village, Colorado 80111
303-741-3707
(Name, Address and Telephone number of persons authorized to receive
notices and communications on behalf of person(s) filing statement)
With copies to:
Jay L. Bernstein, Esq.
Clifford Chance Rogers & Wells LLP
200 Park Avenue
New York, New York 10166-0153
(212) 878-8000
<PAGE>
subject to Regulation 14A, Regulation 14C or Rule 13e-3(C) under the
Securities Exchange Act of 1934.
b. [_] The filing of a registration statement under the Securities Act of
1933.
c. [_] A tender offer.
d. [_] None of the above.
Check the following box if the soliciting materials or information statement
referred to in checking box "a." above are preliminary copies: [X]
Calculation of Filing Fee
Transaction Valuation Amount of Filing Fee
- --------------------------------------------------------------------------------
$ $
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
[X] Check box if any part of the fee is offset
as provided by Rule 0-11(a)(2) and identify
the filing with which the offsetting fee was
previously paid. Identify the previous
filing by registration statement number, or
the form or schedule and the date of its
filing.
Amount previously paid: $2,111.00 Filing party: Windsor Park Properties 3, A
California Limited Partnership
Form or registration no.: Schedule 14A Date Filed: November 19, 1999
</TABLE>
2
<PAGE>
This Transaction Statement on Schedule 13E-3 relates to the proposed
sale of the assets of Windsor Park Properties 3, A California Limited
Partnership (the "Partnership"), pursuant to a plan of liquidation (the "Plan of
Liquidation") adopted by the general partners of the Partnership (the "General
Partners").
Pursuant to the Plan of Liquidation, the Partnership will sell its
four wholly-owned properties and its partial ownership interests in four other
properties (together, the "Properties") to N'Tandem Trust, an unincorporated
California business trust ("N'Tandem"), whose advisory company, The Windsor
Corporation, is also the managing general partner of the Partnership (the
"Managing General Partner"). Chateau Communities, Inc., which owns the Managing
General Partner, also holds 9.8% of the capital stock of N'Tandem.
In accordance with the Agreement of Limited Partnership of the
Partnership (the "Partnership Agreement"), the General Partners are seeking the
consent of the holders (the "Limited Partners") of units of limited partnership
interest (the "Units") in the Partnership to the sale of assets (the "Sales")
and the Plan of Liquidation.
The Cross Reference Sheet below is furnished pursuant to General
Instruction F to Schedule 13E-3 and shows the location of the information
required to be included in response to the items of this Schedule 13E-3 in the
Consent Solicitation Statement (the "Consent Solicitation Statement") included
in the Partnership's Schedule 14A filed on March 3, 2000, by the Partnership
with the Securities and Exchange Commission (the "Commission") pursuant to
Regulation 14A under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). The information in the Consent Solicitation Statement is
incorporated into this Schedule 13E-3 by reference. The Consent Solicitation
Statement is incorporated by reference as Exhibit (d) to this Schedule 13E-3.
Capitalized terms not defined herein have the meanings ascribed to them in the
Consent Solicitation Statement.
3
<PAGE>
CROSS REFERENCE SHEET
<TABLE>
Location in Consent Solicitation
Item in Schedule 13E-3 Statement by Caption
---------------------- --------------------------------
<S> <C>
Item 1. Issuer and Class of Security
Subject to the Transaction
(a) Cover Page. SUMMARY -- Purpose of the Consent
Solicitation; Proposals 1 and 2.
(b) SUMMARY -- Purpose of the Consent Solicitation;
Proposals 1 and 2. CONSENT PROCEDURES;
TRANSACTIONS AUTHORIZED BY CONSENTS -- Record Date;
Required Vote.
(c) SUMMARY -- No Established Trading Market For Units.
(d) SUMMARY -- Historical Distributions.
(e) Not applicable.
(f) DESCRIPTION OF THE PROPOSED TRANSACTIONS --
Background of the Proposed Transactions.
Item 2. Identity and Background
(a) - (d) MATERIAL RISK FACTORS AND OTHER CONSIDERATIONS --
Conflicts of Interest. DESCRIPTION OF THE
PROPOSED TRANSACTIONS -- Information Concerning
N'Tandem and Chateau. APPENDIX B -- Information
Concerning Officers and Directors of the Managing
General Partner, N'Tandem and Chateau.
(e) Not applicable.
</TABLE>
4
<PAGE>
<TABLE>
Location in Consent Solicitation
Item in Schedule 13E-3 Statement by Caption
---------------------- --------------------------------
<S> <C>
(f) Not applicable.
(g) APPENDIX B -- Information Concerning Officers and
Directors of the Managing General Partner,
N'Tandem and Chateau.
Item 3. Past Contacts, Transactions or
Negotiations
(a)(1) DESCRIPTION OF THE PROPOSED TRANSACTIONS --
Background of the Proposed Transactions.
(2) DESCRIPTION OF THE PROPOSED TRANSACTIONS --
Background of the Proposed Transactions, and -- The
Purchase and Sale Agreement.
(b) Description of the Proposed Transactions --
Background of the Proposed Transactions, and -- The
Purchase and Sale Agreement.
Item 4. Terms of the Transaction
(a) Description of the Proposed Transactions.
(b) Not applicable.
Item 5. Plans or Proposal of the Issuer or
Affiliate
(a) -- (g) Description of the Proposed Transactions.
</TABLE>
5
<PAGE>
<TABLE>
Location in Consent Solicitation
Item in Schedule 13E-3 Statement by Caption
---------------------- --------------------------------
<S> <C>
Item 6. Source and Amounts of Funds or Other
Consideration
(a) Description of the Proposed Transactions -- The
Purchase and Sale Agreement.
(b) Description of the Proposed Transactions -- The
Purchase and Sale Agreement, -- Solicitation
Expenses, and -- Estimate of Liquidating
Distributions Payable to Limited Partners.
CONSENT PROCEDURES; TRANSACTIONS AUTHORIZED BY
CONSENTS -- Solicitation of Consents.
(c) Description of the Proposed Transactions -- The
Purchase and Sale Agreemen -- Purchase Prices.
(d) Not applicable.
Item 7. Purposes, Alternatives, Reasons and
Effects
(a)-- (c) DESCRIPTION OF THE PROPOSED TRANSACTIONS -- Purpose
of the Consent Solicitation; Proposals 1 and 2,
and -- Background of the Proposed Transactions.
SPECIAL FACTORS -- Fairness of the Proposed
Transactions; Recommendation of the Proposed
General Partners, -- Alternatives Considered, and --
N'Tandem and Chateau's Belief as to the Fairness
of the Proposed Transactions; N'Tandem's and
Chateau's Reasons for Engaging in the Proposed
Transactions.
</TABLE>
6
<PAGE>
Location in Consent Solicitation
Item in Schedule 13E-3 Statement by Caption
- ---------------------- --------------------------------
(d) DESCRIPTION OF THE PROPOSED
TRANSACTIONS -- Purpose of the
Consent Solicitation; Proposals 1
and 2, -The Purchase and Sale
Agreement,-- Estimate of
Liquidating Distributions Payable
to Limited Partners, and --
Ownership of Properties by
N'Tandem Following Sales. SPECIAL
FACTORS -Fairness of the Proposed
Transactions; Recommendation of
the General Partners. FEDERAL
INCOME TAX CONSIDERATIONS.
Item 8. Fairness of the Transaction
(a) -- (b) DESCRIPTION OF THE PROPOSED
TRANSACTIONS -- Background of the
Proposed Transactions. SPECIAL
FACTORS -- Fairness of the
Proposed Transactions;
Recommendation of the General
Partners, and -- N'Tandem's and
Chateau's Belief as to the
Fairness of the Proposed
Transactions; N'Tandem's and
Chateau's Reasons for Engaging in
the Proposed Transactions.
(c) CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS -- Record
Date; Required Vote.
(d) SPECIAL FACTORS -- Fairness of
the Proposed Transactions;
Recommendation of the General
Partners, and - Fairness Opinion.
MATERIAL RISK FACTORS AND OTHER
CONSIDERATIONS -- No Appointment
of Independent Representative.
(e) Not applicable.
7
<PAGE>
Location in Consent Solicitation
Item in Schedule 13E-3 Statement by Caption
- ---------------------- --------------------------------
(f) SPECIAL FACTORS -- Fairness of the
Proposed Transactions;
Recommendation of the General
Partners.
Item 9. Reports, Opinions, Appraisals
and Certain Negotiations
(a) -- (c) SPECIAL FACTORS -- Fairness
Opinion -- and Appraisal.
Item 10. Interest in Securities of the
Issuer
(a) CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS -- Record
Date; Required Vote.
(b) Not applicable.
Item 11. Contracts, Arrangements or
Understandings with Respect
to the Issuer's Securities Not applicable.
Item 12. Present Intention and
Recommendation of
Certain Persons with
Regard to the Transaction
(a) CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS -- Record
Date; Required Vote.
8
<PAGE>
Location in Consent Solicitation
Item in Schedule 13E-3 Statement by Caption
- ---------------------- ----------------------------------
(b) SPECIAL FACTORS -- Fairness of the
Proposed Transactions;
Recommendation of the General
Partners.
Item 13. Other Provisions of the
Transaction
(a) CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS -- No
Appraisal or Dissenters' Rights.
(b) Not applicable.
(c) Not applicable.
Item 14. Financial Information
(a) FINANCIAL STATEMENTS. SUMMARY --
Historical Distributions. SUMMARY
HISTORICAL FINANCIAL DATA.
INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE.
(b) Not applicable.
Item 15. Persons and Assets Employed,
Retained or Utilized
(a) CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS --
Solicitation of Consents.
(b) CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS --
Solicitation of Consents.
9
<PAGE>
Location in Consent Solicitation
Item in Schedule 13E-3 Statement by Caption
- ---------------------- ----------------------------------
Item 16. Additional Information SUMMARY. SUMMARY HISTORICAL
FINANCIAL DATA. MATERIAL RISK
FACTORS AND OTHER CONSIDERATIONS.
DESCRIPTION OF THE PROPOSED
TRANSACTIONS. SPECIAL FACTORS.
SUMMARY OF SELECTED TERMS OF THE
PARTNERSHIP AGREEMENT. THE
PARTNERSHIP'S PROPERTIES. FEDERAL
INCOME TAX CONSIDERATIONS. CONSENT
PROCEDURES; TRANSACTIONS AUTHORIZED
BY CONSENTS. FINANCIAL STATEMENTS.
INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE.
Item 1. Issuer and Class of Security Subject to the Transaction.
(a) The name of the issuer of the class of equity securities which is the
subject of the Rule 13e-3 transaction is Windsor Park Properties 3, A California
Limited Partnership, and the address of its principal executive offices is 6160
South Syracuse Way, Greenwood Village, Colorado 80111. The information set forth
in the Consent Solicitation Statement on the cover page and under the caption
"SUMMARY -- Purpose of the Consent Solicitation; Proposals 1 and 2" is
incorporated herein by reference.
(b) The class of security which is the subject of the Rule 13e-3 transaction is
units of limited partner interest of the Partnership. The information set forth
under the caption "CONSENT PROCEDURES; TRANSACTIONS AUTHORIZED BY CONSENTS --
Record Date; Required Vote" in the Consent Solicitation Statement is
incorporated herein by reference.
(c) The information set forth under the caption "SUMMARY -- No Established
Trading Market For Units" in the Consent Solicitation Statement is incorporated
herein by reference.
(d) The information set forth under the caption "SUMMARY -- Historical
Distributions" in the Consent Solicitation Statement is incorporated herein by
reference.
(e) Not applicable.
(f) The information set forth in the Consent Solicitation Statement under the
caption "DESCRIPTION OF THE PROPOSED TRANSACTIONS -- Background of the Proposed
Transactions" is incorporated herein by reference.
Item 2. Identity and Background.
This Schedule 13E-3 is being filed jointly by N'Tandem Trust, an unincorporated
California business trust, which is an affiliate of the Partnership, Chateau
Communities, Inc., a Maryland corporation, an entity that controls N'Tandem and
the Managing General Partner of Partnership, and Windsor Park Properties 3, A
California Limited Partnership (the issuer of the class of equity securities
which is the subject of the Rule 13e-3 transaction). The information set forth
under the captions "DESCRIPTION
10
<PAGE>
OF THE PROPOSED TRANSACTIONS -- Information Concerning N'Tandem and Chateau" and
"MATERIAL RISK FACTORS AND OTHER CONSIDERATIONS -- Conflicts of Interest," in
the Consent Solicitation Statement is incorporated herein by reference.
(a)-(d) Information required by this item relating to directors and executive
officers of N'Tandem, Chateau and The Windsor Corporation is set forth in
APPENDIX B to the Consent Solicitation Statement, which is incorporated herein
by reference.
(e) To the knowledge of N'Tandem, Chateau and the General Partners of the
Partnership, none of the persons with respect to whom information is provided in
response to this Item 2 was, during the last five years, convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors).
(f) To the knowledge of N'Tandem, Chateau and the General Partners of the
Partnership, none of the persons with respect to whom information is provided in
response to this Item 2 was, during the last five years, a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding was or is subject to a judgment, decree or final
order enjoining further violations of, or prohibiting activities, subject to,
federal or state securities laws or finding any violation of such laws.
(g) Information required by this item relating to directors and executive
officers of N'Tandem, Chateau and The Windsor Corporation is set forth in
APPENDIX B to the Consent Solicitation Statement, which is incorporated herein
by reference.
Item 3. Past Contacts, Transactions or Negotiations.
(a) (1) The information set forth under the caption "DESCRIPTION OF THE
PROPOSED TRANSACTIONS -- Background of the Proposed Transactions" in
the Consent Solicitation Statement is incorporated herein by reference.
(2) The information set forth under the caption "DESCRIPTION OF THE
PROPOSED TRANSACTIONS -- Background of the Proposed Transactions" and
"- The Purchase and Sale Agreement" in the Consent Solicitation
Statement is incorporated herein by reference.
(b) The information set forth under the caption "DESCRIPTION OF THE PROPOSED
TRANSACTIONS -- Background of the Proposed Transactions" and "- The Purchase and
Sale Agreement" in the Consent Solicitation Statement is incorporated herein by
reference.
Item 4. Terms of the Transaction.
(a) The information set forth under the caption "DESCRIPTION OF THE PROPOSED
TRANSACTIONS" in the Consent Solicitation Statement is incorporated herein by
reference.
(b) Not applicable.
Item 5. Plans or Proposals of the Issuer or Affiliate.
(a)-(g) The Rule 13e-3 transaction provides for the sale of all of the
Partnership's assets, a dissolution and winding up of the Partnership and a
termination of registration of the Units under the Exchange Act. The information
set forth under the caption "DESCRIPTION OF THE PROPOSED TRANSACTIONS" in the
Consent Solicitation Statement is incorporated herein by reference.
11
<PAGE>
Item 6. Source and Amounts of Funds or Other Consideration.
(a) The information set forth under the caption "DESCRIPTION OF THE PROPOSED
TRANSACTIONS -- The Purchase and Sale Agreement -- Purchase Prices" in the
Consent Solicitation Statement is incorporated herein by reference.
(b) The information set forth in the Consent Solicitation Statement under the
captions "DESCRIPTION OF THE PROPOSED TRANSACTIONS -- The Purchase and Sale
Agreement," "- Solicitation Expenses" and "- Estimate of Liquidating
Distributions Payable to Limited Partners" and "CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS -- Solicitation of Consents" relating to the expenses
estimated to be incurred in the transactions, is incorporated herein by
reference.
(c) The information contained in the last paragraph under the caption
"DESCRIPTION OF THE PROPOSED TRANSACTIONS -- The Purchase and Sale Agreement --
Purchase Prices" in the Consent Solicitation Statement is incorporated herein by
reference.
(d) Not applicable.
Item 7. Purpose(s), Alternatives, Reasons and Effects.
(a)-(c) The information set forth under the captions "DESCRIPTION OF THE
PROPOSED TRANSACTIONS -- Purpose of the Consent Solicitation; Proposals 1 and
2," "- Background of the Proposed Transactions," "SPECIAL FACTORS -- Fairness of
the Proposed Transactions; Recommendation of the General Partners," "-
Alternatives Considered" and "- N'Tandem's and Chateau's Belief as to the
Fairness of the Proposed Transactions; N'Tandem's and Chateau's Reasons for
Engaging in the Proposed Transactions" in the Consent Solicitation Statement is
incorporated herein by reference.
(d) The information set forth under the captions "DESCRIPTION OF THE PROPOSED
TRANSACTIONS," "-Purpose of the Consent Solicitation; Proposals 1 and 2," "-
Estimate of Liquidating Distributions Payable to Limited Partners," "- Ownership
of Properties By N'Tandem Following Sales" and "SPECIAL FACTORS -- Fairness of
the Proposed Transactions; Recommendation of the General Partners" in the
Consent Solicitation Statement is incorporated herein by reference. The
information contained under the caption "FEDERAL INCOME TAX CONSIDERATIONS" in
the Consent Solicitation Statement is incorporated herein by reference.
Item 8. Fairness of the Transaction.
(a)-(b) N'Tandem, Chateau and the General Partners of the Partnership reasonably
believe that the transaction is fair to the unaffiliated Limited Partners. The
information set forth under the captions "DESCRIPTION OF THE PROPOSED
TRANSACTIONS -- Background of the Proposed Transactions," "SPECIAL FACTORS --
Fairness of the Proposed Transactions; Recommendation of the General Partners"
and "- N'Tandem's and Chateau's Belief as to the Fairness of the Proposed
Transactions; N'Tandem's and Chateau's Reasons for Engaging in the Proposed
Transactions," in the Consent Solicitation Statement is incorporated herein by
reference.
(c) The information contained under the caption "CONSENT PROCEDURES;
TRANSACTIONS AUTHORIZED BY CONSENTS -- Record Date; Required Vote" in the
Consent Solicitation Statement is incorporated herein by reference.
(d) The information set forth in the Consent Solicitation Statement under the
captions "SPECIAL FACTORS -- Fairness of the Proposed Transactions;
Recommendation of the General Partners," "- F under the caption "SPECIAL
FACTORS -- Fairness of the Proposed Transactions; Recommendation of the General
Partners" in the Consent Solicitation Statement is incorporated herein by
reference.
12
<PAGE>
Item 9. Reports, Opinions, Appraisals and Certain Negotiations.
(a)-(c) The information contained under the captions "SPECIAL FACTORS -Fairness
Opinion," and "- Appraisals" in the Consent Solicitation Statement is
incorporated herein by reference.
Item 10. Interest in Securities of the Issuer.
(a) The information contained under the caption "CONSENT PROCEDURES;
TRANSACTIONS AUTHORIZED BY CONSENTS -- Record Date; Required Vote" in the
Consent Solicitation Statement is incorporated herein by reference.
(b) Not applicable.
Item 11. Contracts, Arrangements or Understandings with Respect to the Issuer's
Securities.Not applicable.
Item 12. Present Intention and Recommendation of Certain Persons with Regard to
the Transaction.
(a) The information contained under the caption "CONSENT PROCEDURES;
TRANSACTIONS AUTHORIZED BY CONSENTS -- Record Date; Required Vote" in the
Consent Solicitation Statement is incorporated herein by reference.
(b) The information set forth under the caption "SPECIAL FACTORS -- Fairness of
the Proposed Transactions; Recommendation of the General Partners" in the
Consent Solicitation Statement is incorporated herein by reference. No other
person has made a recommendation required to be described herein.
Item 13. Other Provisions of the Transaction.
(a) The information set forth under the caption "CONSENT PROCEDURES;
TRANSACTIONS AUTHORIZED BY CONSENTS -- No Appraisal or Dissenters' Rights" in
the Consent Solicitation Statement is incorporated herein by reference.
(b) Not applicable.
(c) Not applicable.
Item 14. Financial Information.
(a) The information set forth under the captions "FINANCIAL STATEMENTS,"
"INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE," "SUMMARY --Historical
Distributions" and "SUMMARY HISTORICAL FINANCIAL DATA" in the Consent
Solicitation Statement is incorporated herein by reference.
13
<PAGE>
(b) Not applicable.
Item 15. Persons and Assets Employed, Retained or Utilized.
(a) The information set forth under the caption "CONSENT PROCEDURES;
TRANSACTIONS AUTHORIZED BY CONSENTS -- Solicitation of Consents" in the Consent
Solicitation Statement is incorporated herein by reference.
(b) The information set forth under the caption "CONSENT PROCEDURES;
TRANSACTIONS AUTHORIZED BY CONSENTS -- Solicitation of Consents" in the Consent
Solicitation Statement is incorporated herein by reference.
Item 16. Additional Information.
The information set forth in the Consent Solicitation Statement under each of
the following headings is incorporated herein by reference: "SUMMARY," "SUMMARY
HISTORICAL FINANCIAL DATA," "MATERIAL RISK FACTORS AND OTHER CONSIDERATIONS,"
"DESCRIPTION OF THE PROPOSED TRANSACTIONS," "SPECIAL FACTORS," "SUMMARY OF
SELECTED TERMS OF THE PARTNERSHIP AGREEMENT," "THE PARTNERSHIP'S PROPERTIES,"
"FEDERAL INCOME TAX CONSIDERATIONS," "CONSENT PROCEDURES; TRANSACTIONS
AUTHORIZED BY CONSENTS," "FINANCIAL STATEMENTS," and "INCORPORATION OF CERTAIN
DOCUMENTS BY REFERENCE."
Item 17. Materials to be Filed as Exhibits.
(a) Form of Promissory Note of N'Tandem in favor of Chateau.**
(b)(1) Appraisals of Whitcomb Real Estate.**
(A) Ponderosa
(B) The Pines
(C) Shady Hills
(D) Trailmont
(E) Big Country Estates
(F) Apache East/Denali Park
(G) Harmony Ranch
(b)(2) Fairness Opinion of Legg Mason Wood Walker, Incorporated.
(b)(3) Valuation Report of Whitcomb Real Estate. **
(b)(4) Presentation materials of Legg Mason Wood Walker, Incorporated
relating to their Fairness Opinion.
(d) Preliminary Consent Solicitation Statement and related proxy
materials.*
4 Agreement of Limited Partnership of the Partnership.**
23.1 Consent of Whitcomb Real Estate relating to Appraisals.**
23.2 Consent of Legg Mason Wood Walker, Incorporated.
23.3 Consent of PricewaterhouseCoopers LLP.
23.4 Consent of Whitcomb Real Estate relating to Valuation Report.**
- --------------------
* Incorporated by reference to the Consent Solicitation Statement, including
the Appendices thereto, and related proxy materials included in the
Partnership's Schedule 14A filed with the Commission on March 3, 2000.
** Previously filed.
14
<PAGE>
Signature
After due inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Date: March 3, 2000
WINDSOR PARK PROPERTIES 6,
A California Limited Partnership
By: The Windsor Corporation,
general partner
By: /s/ Steven G. Waite
---------------------------
Name: Steven G. Waite
Title: President
15
<PAGE>
Signature
After due inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Date: March 3, 2000
N'TANDEM TRUST
By: /s/ Gary P. McDaniel
--------------------------
Name: Gary P. McDaniel
Title: Trustee
16
<PAGE>
Signature
After due inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Date: March 3, 2000
CHATEAU COMMUNITIES, INC.
By: /s/ Gary P. McDaniel
-----------------------------
Name: Gary P. McDaniel
Title: Chief Executive Officer
17
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
- ---------- -----------
(a) Form of Promissory Note of N'Tandem in favor of Chateau.**
(b)(1) Appraisals of Whitcomb Real Estate.**
(A) Ponderosa
(B) The Pines
(C) Shady Hills
(D) Trailmont
(E) Big Country Estates
(F) Apache East/Denali Park
(G) Harmony Ranch
(b)(2) Fairness Opinion of Legg Mason Wood Walker, Incorporated.
(b)(3) Valuation Report of Whitcomb Real Estate. **
(b)(4) Presentation materials of Legg Mason Wood Walker,Incorporated,
relating to their Fairness Opinion.
(d) Preliminary Consent Solicitation Statement and related proxy
materials.*
4 Agreement of Limited Partnership of the Partnership.**
23.1 Consent of Whitcomb Real Estate relating to Appraisals.**
23.2 Consent of Legg Mason Wood Walker, Incorporated.
23.3 Consent of PricewaterhouseCoopers LLP.
23.4 Consent of Whitcomb Real Estate relating to Valuation Report.**
_____________________
* Incorporated by reference to the Consent Solicitation Statement, including
the Appendices thereto, and related proxy materials included in the
Partnership's Schedule 14A filed with the Commission on March 3, 2000.
** Previously filed.
<PAGE>
Exhibit (b)(2)
LEGG MASON
Corporate Finance
Legg Mason Wood Walker, Incorporated
100 Light Street, 34th Floor, Baltimore, MD 21202
410-539-0000 Fax: 410-454-4508
Member New York Stock Exchange, Inc./Member SIPC
March 1, 2000
The General Partners of
Windsor Park Properties 3, A California Limited Partnership
c/o The Windsor Corporation
6160 South Syracuse Way
Greenwood Village, Colorado 80111
General Partners:
We have been advised by the managing general partner (the "Managing
General Partner") of Windsor Park Properties 3, A California Limited Partnership
(the "Partnership"), that the Partnership intends to sell its four wholly-owned
properties and its partial ownership interests in four other properties
(collectively, the "Properties") to N'Tandem Trust, a California business trust
("N'Tandem"), for an aggregate amount of $7,813,600 on terms and conditions more
fully described in the consent solicitation statement (the "Consent Solicitation
Statement") relating to the purchase and sale of the Properties (the transaction
is referred to herein as the "Sale").
You have requested our opinion, as investment bankers, as to the
fairness to the limited partners (the "Limited Partners") of the Partnership,
from a financial point of view, of the aggregate purchase price to be paid by
N'Tandem in the Sale.
In connection with our opinion, we have, among other things, reviewed:
(i) the management agreement between the Partnership and the Managing
General Partner and other agreements pertaining to the operation
and management of the Properties;
(ii) the partnership agreement of the Partnership;
(iii) the financial statements and the related filings of the
Partnership on Form 10-K for the year ended December 31, 1998 and
Form 10-Q for the nine months ended September 30, 1999;
<PAGE>
Page 2
(iv) the NAREIT Index, the Morgan Stanley REIT Index, capital flows to
public real estate investment trusts and other similar measures of
operating performance and trading data of real estate investment
trusts;
(v) an analysis of comparable publicly traded real estate investment
trusts;
(vi) the draft Consent Solicitation Statement;
(vii) financial and operating forecasts and projections relating to the
Partnership and schedules setting forth information relating to the
outstanding debt attributable to the Properties and the number of
outstanding units of limited partner interest in the Partnership
prepared by the Managing General Partner or its represenatives;
(viii) the appraisals of the Properties prepared by Whitcomb Real Estate,
Inc; and
(ix) conducted such other financial studies, analyses and investigations
and considered such other information as we deemed appropriate.
In connection with our review, we relied, without independent verification,
on the accuracy and completeness of all information that was publicly available,
supplied or otherwise communicated to Legg Mason on behalf of the Partnership
and we have further relied upon the assurances of the Managing General Partner
that it is unaware of any facts that would make the information provided to us
incomplete or misleading. In performing our analyses, we relied, with your
permission and without independent verification of their accuracy or fairness,
on the discounts which the Managing General Partner provided to us for
application to the appraised values of certain of the Properties to reflect the
fact that the partnership owns only a partial interest therein.
Legg Mason has also relied upon the Managing General Partner as to the
reasonableness and achievability of the financial forecasts and projections (and
the assumptions and bases therein) provided to us for the Partnership, and we
have assumed such forecasts and projections were reasonably prepared on bases
reflecting the best currently available estimates and judgments of management as
to the future operating performance of the Partnership. Neither the Managing
General Partner nor the Partnership publicly discloses internal management
forecasts and projections of the type provided to Legg Mason. Such forecasts and
projections were not prepared with the expectation of public disclosure. The
forecasts and projections were based on numerous variables and assumptions that
are inherently uncertain, including, without limitation, facts related to
general economic conditions. Accordingly, actual results could vary
significantly from those set forth in such forecasts and projections. Legg Mason
has relied on these forecasts and does not in any respect assume any
responsibility for the accuracy or completeness thereof.
Legg Mason has not been requested to make, and has not made, an
independent evaluation or appraisal of the assets, properties, facilities, or
liabilities (contingent or otherwise) of the Partnership and, with the exception
of the appraisal of the underlying properties of the Partnership referred to
above, we have not been furnished with any such appraisals or evaluations.
Estimates of value of the Partnership and its assets do not purport to be
appraisals or necessarily reflect the prices at which the Partnership and assets
may actually be sold. Because such estimates are inherently subject to
uncertainty, Legg Mason assumes no responsibility for
<PAGE>
Page 3
their accuracy. We note that the Managing General Partner and N'Tandem are under
common control of the parent of the Managing General Partner, and we have
assumed that this potential conflict of interest had no effect on the Sale. Our
opinion is necessarily based upon financial, economic, market and other
conditions and circumstances existing and disclosed to us on the date hereof. We
were not requested to, nor did we, solicit the interest of any other party in
acquiring interests in the Partnership or its assets. We have also assumed that
the Sale will be consummated on the terms and conditions described in the
Consent Solicitation Statement, without any waiver of material terms or
conditions by the Partnership.
It is understood that this letter is directed to the General Partners.
The opinion expressed herein is provided for the use of the General Partners in
their evaluation of the Sale and our opinion does not constitute a
recommendation to the General Partners or to any Limited Partner as to how such
partners should vote or otherwise respond on the Sale. In addition, this letter
does not constitute a recommendation of the Sale over any other alternative
transaction which may be available to the Partnership and does not address the
underlying business decision of the Managing General Partner to proceed with or
effect the Sale. This letter is not to be quoted or referred to, in whole or in
part, in any registration statement, prospectus, or in any other document used
in connection with the offering or sale of securities, nor shall this letter be
used for any other purposes, without the prior written consent of Legg Mason;
provided that this opinion may be included in its entirety in any filing made by
the Partnership or N'Tandem with the Securities and Exchange Commission with
respect to the Sale.
Legg Mason will receive a fee for providing this Opinion to the
General Partners.
Based upon and subject to the foregoing, we are of the opinion that,
as of the date hereof, the amount of consideration to be paid by N'Tandem in the
Sale is fair to the Limited Partners from a financial point of view.
Very truly yours,
/s/ Legg Mason Wood Walker, Incorporated
----------------------------------------
Legg Mason Wood Walker, Incorporated
<PAGE>
EXHIBIT 99(b)(4)
March 1, 2000
Presentation to:
The Windsor Corporation
in its capacity as Managing General Partner of
The Windsor Park Properties 3 & 6
Legg Mason Wood Walker
Incorporated
March 1, 2000
<PAGE>
March 1, 2000
The managing general partner (the "Managing General Partner") of Windsor
Park Properties 3, A California Limited Partnership, and Windsor Park Properties
6, A California Limited Partnership, (together the "Partnerships") has requested
Legg Mason Wood Walker, Incorporated ("Legg Mason") to provide a written opinion
as to the fairness to the Limited Partners of each Partnership from a financial
point of view, of the aggregate consideration to be paid by N'Tandem Trust in
the sale of the properties in which the Partnership holds an interest to
N'Tandem Trust for cash; on terms and conditions more fully set forth in
agreements among the Partnerships and N'Tandem Trust.
It is recognized that Legg Mason was retained to render financial advice
solely to the Managing General Partner, and that the engagement of Legg Mason is
not, and shall not be deemed to be, on behalf of, and is not intended to confer
rights or benefits upon the Partnerships' affiliates or upon any other person or
entity. Legg Mason's opinion was directed solely to the Managing General
Partner. Legg Mason's presentation is not to be quoted or referred to, in whole
or in part, in any registration statement, prospectus or proxy, statement, or in
any other document used in connection with any offering or sale of securities,
nor shall this presentation be used for any other purposes, without the prior
written consent of Legg Mason, provided that this presentation may be made
available in its entirety to the Managing General Partner.
In connection with our review, we relied, without independent verification,
on the accuracy and completeness of all information that was publicly available,
supplied or otherwise communicated to Legg Mason by the Managing General Partner
and we have further relied upon the assurances of the Managing General Partner
and management of the Partnerships that they are unaware of any facts that would
make the information provided to us incomplete or misleading. Legg Mason assumed
that the financial forecasts (and the assumptions and bases thereof) examined by
it were reasonably prepared and reflected the best currently available estimates
and good faith judgments of the Managing General Partner's management as to the
future performance of the Partnerships. Legg Mason also assumed that the
appraisals that were provided were reasonably prepared by the appraiser and
reflected the good faith judgments of the appraiser and did not take any
responsibility for their accuracy or completeness. Legg Mason has relied upon
these forecasts and does not in any respect assume any responsibility for the
accuracy of completeness thereof. Legg Mason has not made an independent
evaluation or appraisal of the assets or liabilities (contingent or otherwise)
of the Partnerships, nor other than as described in our opinion, has Legg Mason
been furnished with any such evaluations or appraisals. Our opinion is
necessarily based upon financial, economic, market and other conditions and
circumstances existing and disclosed to us on the date hereof. It is understood
that subsequent developments may affect the conclusions reached in our opinion,
and that we do not have any obligation to update, revise or reaffirm our
opinion.
This summary of information does not constitute our opinion and is provided
for informational purposes only. Our opinion is limited to the terms of our
opinion letter to you with regard to the sale. We believe that our analysis
should be considered as a whole, and that selecting portions of our analyses and
the factors we considered, without considering all analyses and factors, could
be misleading. The preparation of an opinion is a complex process and is not
necessarily susceptible to partial analysis or summary description. In our
analysis we made numerous assumptions where necessary with respect to industry
performance, general business and economic conditions, and other matters, many
of which are beyond the control of the Partnerships.
Windsor Park Properties
[LOGO]
<PAGE>
Table Of Contents
===============================================================
I. Transaction Analysis
- Summary of Transaction
II. Summary of Analysis
- Summary Valuation
III. Windsor Park Property 3 & 6 Historical & Projected Financial
Statements & Analysis
- Repeated for WPP 3, WPP 6
- Historical & Projected Financial Statements
- Comparable Trading Multiples Analysis
- Discounted Cash Flow Analysis
- Liquidation Analysis
Addendum
A. Comparable Company Trading Analysis
B. Comparable Company Price Volume Graphs
C. Comparable Company Profiles
D. FFO Current / Forward Multiples Analysis
E. Sensitivity Analysis
LEGG Investment
MASON Banking Windsor Park Properties
<PAGE>
March 1, 2000
Section I.
Transaction Analysis
LEGG Investment
MASON Banking Windsor Park Properties
1
<PAGE>
Transaction Analysis
================================================================================
Summary of Transaction - Windsor Park Property 3
Transaction Participants:
N'Tandem Trust ("N'Tandem") - Buyer
Windsor Park Properties 3 ("WPP 3") - Seller
Consideration Offered by N'Tandem to the Limited Partners of WPP 3:
Cash offer of $37.43 per unit /(1)/
Windsor Park Property to be Purchased:
WPP 3 established in 1985, with initial capital raised of $20,000,000
(200,000 limited partnership units at $100 per unit)
Seven communities located in six states
2000E FFO $719,062 /(2)/
2001E FFO $743,108 /(2)/
Debt outstanding as of September 30, 1999, $2,737,900
Appraisal Market Value $10,879,500 /(3)/
Appraisal Equity Value, $8,141,600 /(3)/
Notes
(1) Does not include additional consideration to be received as a result of the
proposed settlement.
(2) FFO projections were derived from financial projections provided by the
Managing General Partner.
(3) Appraisal values provided by Whitcomb Real Estate, Inc.
2
<PAGE>
Transaction Analysis
================================================================================
Summary of Transaction - Windsor Park Property 6
Transaction Participants:
N'Tandem Trust ("N'Tandem") - Buyer
Windsor Park Properties 6 ("WPP 6") - Seller
Consideration Offered by N'Tandem to the Limited Partners of WPP 6:
Cash offer of $30.30 per unit /(1)/
Windsor Park Property to be Purchased:
WPP 6 established in 1988, with initial capital raised of $30,000,000
(300,000 limited partnership units at $100 per unit)
Six communities located in three states
2000E FFO $965,933 /(2)/
2001E FFO $1,016,450 /(2)/
Debt outstanding as of September 30, 1999, $6,325,000
Appraisal Market Value $16,652,800 /(3)/
Appraisal Equity Value, $10,327,800 /(3)/
Notes:
(1) Does not include additional consideration to be received as a result of the
proposed settlement.
(2) FFO projection were derived from projections provided by the Managing
General Partner.
(3) Appraisal values provided by Whitcomb Real Estate, Inc.
3
<PAGE>
Section II.
Summary of Analysis
4
<PAGE>
Summary of Analysis
==============================================
Summary Valuation - Windsor Park Property 3
<TABLE>
<CAPTION>
Comparable Trading Multiples Analysis - 2000 WPP 3 FFO /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
---------------- ----------------- ------------------
<S> <C> <C> <C>
High 5,382,154 28.58 37.43
--------------------------------------------------------------------------------------------------------------------------
Mean $ 4,794,964 $ 25.47 $ 37.43
--------------------------------------------------------------------------------------------------------------------------
Low 3,900,599 20.72 37.43
Comparable Trading Multiples Analysis - 2001 WPP 3 FFO/(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
---------------- ----------------- ------------------
<S> <C> <C> <C>
High 5,115,560 27.17 37.43
--------------------------------------------------------------------------------------------------------------------------
Mean $ 4,532,623 $ 24.07 $ 37.43
--------------------------------------------------------------------------------------------------------------------------
Low 3,612,760 19.19 37.43
Comparable Trading Multiples Analysis - WPP 3 TTM EBITDA/(1)(2)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
---------------- ----------------- ------------------
<S> <C> <C> <C>
High 5,301,369 28.15 37.43
--------------------------------------------------------------------------------------------------------------------------
Mean $ 4,606,452 $ 24.46 $ 37.43
--------------------------------------------------------------------------------------------------------------------------
Low 3,995,244 21.22 37.43
Discounted Cash Flow Analysis - WPP 3/(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
---------------- ----------------- ------------------
<S> <C> <C> <C>
High 5,784,687 30.72 37.43
--------------------------------------------------------------------------------------------------------------------------
Mean $ 5,216,011 $ 27.70 $ 37.43
--------------------------------------------------------------------------------------------------------------------------
Low 4,372,100 23.22 37.43
Liquidation Analysis - WPP 3/(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
---------------- ----------------- ------------------
<S> <C> <C> <C>
High 6,967,890 37.00 37.43
--------------------------------------------------------------------------------------------------------------------------
Mean $ 6,967,890 $ 37.00 $ 37.43
--------------------------------------------------------------------------------------------------------------------------
Low 6,967,890 37.00 37.43
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Comparable companies include CPJ, MHC, SUI, UMH & AIC. Assumes 188,296 LP
Units Outstanding
(2) Less $13,200 in interest income and less $2,737,900 in debt.
(3) Does not include additional consideration to be received as a result of the
proposed settlement.
5
<PAGE>
Summary of Analysis
================================================
Summary Valuation - Windsor Park Property 6
Comparable Trading Multiples Analysis - 2000 WPP 6 FFO/(1)/
<TABLE>
<CAPTION>
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
------------------ ------------------ ------------------
<S> <C> <C> <C>
High 7,560,009 26.38 30.30
-------------------------------------------------------------------------------------------------------------------------------
Mean $ 6,783,579 $ 23.67 $ 30.30
-------------------------------------------------------------------------------------------------------------------------------
Low 5,600,978 19.54 30.30
Comparable Trading Multiples Analysis - 2001 WPP 6 FFO/(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
------------------ ------------------ ------------------
<S> <C> <C> <C>
High 7,330,791 25.58 30.30
-------------------------------------------------------------------------------------------------------------------------------
Mean $ 6,546,845 $ 22.84 $ 30.30
-------------------------------------------------------------------------------------------------------------------------------
Low 5,309,791 18.53 30.30
Comparable Trading Multiples Analysis - WPP 6 TTM EBITDA/(1)(2)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
------------------ ------------------ ------------------
<S> <C> <C> <C>
High 7,330,964 25.58 30.30
-------------------------------------------------------------------------------------------------------------------------------
Mean $ 6,206,039 $ 21.65 $ 30.30
-------------------------------------------------------------------------------------------------------------------------------
Low 5,216,621 18.20 30.30
Discounted Cash Flow Analysis - WPP 6/(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
------------------ ------------------ ------------------
<S> <C> <C> <C>
High 8,203,121 28.62 30.30
-------------------------------------------------------------------------------------------------------------------------------
Mean $ 7,415,418 $ 25.87 $ 30.30
-------------------------------------------------------------------------------------------------------------------------------
Low 6,241,634 21.78 30.30
Liquidation Analysis - WPP 6/(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration/(3)/
------------------ ------------------ ------------------
<S> <C> <C> <C>
High 8,483,871 29.60 30.30
-------------------------------------------------------------------------------------------------------------------------------
Mean $ 8,483,871 $ 29.60 $ 30.30
-------------------------------------------------------------------------------------------------------------------------------
Low 8,483,871 29.60 30.30
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Comparable companies include CPJ, MHC, SUI, UMH & AIC. Assumes 286,614 LP
Units outstanding.
(2) Less $7,500 in interest income and less $6,325,000 in debt.
(3) Does not include additional consideration to be received as a result of the
proposed settlement.
6
<PAGE>
Section III.
Windsor Park Property 3 Historical & Projected
Financial Statements
7
<PAGE>
Windsor Park Property Historical & Projected Financial Statements
==========================================================
Historical & Projected Income Statements - WPP 3
<TABLE>
<CAPTION>
------------------------------------------------------------ ------------------
For the Years Ended December 31, September 30, 1999
------------------------------------------------------------ ------------------
% of % of % of % of
Total Total Total TTM Total
1996 Revenue 1997 Revenue 1998 Revenue 30-Sep-99 Revenue
---------- ------- ---------- ------- ---------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $1,421,700 91.3% $1,610,600 94.6% $1,687,000 94.5% $1,623,700 76.7%
Equity in earnings (losses) of joint ventures 49,700 3.2 18,200 1.1 8,100 0.5 13,500 0.6
and limited partnerships
Interest 50,400 3.2 33,000 1.9 27,900 1.6 13,200 0.6
Other 36,000 2.3 40,300 2.4 61,600 3.5 467,000 22.1
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total revenues $1,557,800 100.0 $1,702,100 100.0 $1,784,600 100.0 $2,117,400 100.0
Operating costs and expenses:
Property operating $ 929,400 59.7 $1,039,200 61.1 $ 995,900 55.8 $ 947,900 44.8
Interest 256,600 16.5 279,900 16.4 279,800 15.7 221,700 10.5
Depreciation and amortization 204,400 13.1 207,400 12.2 227,100 12.7 232,200 11.0
General and administrative:
Related parties 69,700 4.5 63,700 3.7 36,200 2.0 26,800 1.3
Other 38,600 2.5 37,300 2.2 65,200 3.7 100,700 4.8
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total operating costs and expenses $1,498,700 96.2 $1,627,500 95.6 $1,604,200 89.9 $1,529,300 72.2
EBT (before extraordinary items) $ 59,100 3.8 $ 74,600 4.4 $ 180,400 10.1 $ 588,100 27.8
EBT $ 59,100 3.8 $ 74,600 4.4 $ 180,400 10.1 $ 163,500 7.7
- ---------------------------------------------------------------------------------------------------------------------------------
EBT $ 59,100 3.8% $ 74,600 4.4% $ 180,400 10.1% $ 163,500 7.7%
Add: depreciation and amortization from joint
ventures and limited partnerships 87,180 5.6 129,291 7.6 149,497 8.4 184,797 8.7
Add: interest expense from joint ventures
and limited partnerships 28,587 1.8 88,225 5.2 112,858 6.3 86,158 4.1
Add: depreciation and amortization expense 204,400 13.1 207,400 12.2 227,100 12.7 232,200 11.0
Add: interest expense 256,600 16.5 279,900 16.4 279,800 15.7 221,700 10.5
- ---------------------------------------------------------------------------------------------------------------------------------
EBITDA $ 635,867 40.8 $ 779,416 45.8 $ 949,656 53.2 $ 888,356 42.0
- ---------------------------------------------------------------------------------------------------------------------------------
Less: interest expense 256,600 16.5 279,900 16.4 279,800 15.7 221,700 10.5
Less: interest expense from joint ventures
and limited partnerships 28,587 1.8 88,225 5.2 112,858 6.3 86,158 4.1
- ---------------------------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $ 350,680 22.5% $ 411,291 24.2% $ 556,997 31.2% $ 580,497 27.4%
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------
For the Years Ended December 31,
------------------------------------------------------------
% of % of % of
Total Total Total
1999P (1) Revenue 2000P (1) Revenue 2001P Revenue
---------- ------- ---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $1,580,344 95.1% $1,627,754 94.7% $1,676,587 94.8%
Equity in earnings (losses) of joint ventures 46,023 2.8 54,648 3.2 54,902 3.1
and limited partnerships
Interest 6,060 0.4 6,242 0.4 6,429 0.4
Other 29,880 1.8 29,880 1.7 30,776 1.7
---------- ------- ---------- ------- ---------- -------
Total revenues $1,662,307 100.0 $1,718,524 100.0 $1,768,694 100.0
Operating costs and expenses:
Property operating $ 835,659 50.3 $ 860,729 50.1 $ 886,551 50.1
Interest 186,400 11.2 186,400 10.8 186,400 10.5
Depreciation and amortization 195,928 11.8 197,239 11.5 199,212 11.3
General and administrative:
Related parties 38,010 2.3 39,911 2.3 41,906 2.4
Other 68,460 4.1 71,883 4.2 75,477 4.3
---------- ------- ---------- ------- ---------- -------
Total operating costs and expenses $1,324,457 79.7 $1,356,162 78.9 $1,389,546 78.6
EBT (before extraordinary items) $ 337,850 20.3 $ 362,362 21.1 $ 379,148 21.4
EBT $ 337,850 20.3 $ 362,362 21.1 $ 379,148 21.4
- -------------------------------------------------------------------------------------------------------------
EBT $ 337,850 20.3% $ 362,362 21.1% $ 379,148 21.4%
Add: depreciation and amortization from joint
ventures and limited partnerships 154,381 9.3 159,461 9.3 164,748 9.3
Add: interest expense from joint ventures
and limited partnerships 105,361 6.3 98,532 5.7 92,313 5.2
Add: depreciation and amortization expense 195,928 11.8 197,239 11.5 199,212 11.3
Add: interest expense 186,400 11.2 186,400 10.8 186,400 10.5
- -------------------------------------------------------------------------------------------------------------
EBITDA $ 979,920 58.9 $1,003,994 58.4 $1,021,820 57.8
- -------------------------------------------------------------------------------------------------------------
Less: interest expense 186,400 11.2 186,400 10.8 186,400 10.5
Less: interest expense from joint ventures
and limited partnerships 105,361 6.3 98,532 5.7 92,313 5.2
- -------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $ 688,159 41.4% $ 719,062 41.8% $ 743,108 42.0%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Little Eagle excluded in 1999 and 2000 projections.
8
<PAGE>
Windsor Park Property Historical & Projected Financial Statements
=================================================================
Historical & Projected Income Statements - WPP 3
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
September 30, 1999 For the Years Ending December 31,
----------------------- ---------------------------------------------------
TTM % of Total % of Total % of Total
30-Sep-99 Revenue 1999P/(1)/ Revenue 2000P/(1)/ Revenue
----------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $ 1,623,700 76.7% $1,580,344 95.1% $ 1,627,754 94.7%
Equity in earnings (losses) of joint ventures 13,500 0.6 46,023 2.8 54,648 3.2
and limited partnerships
Interest 13,200 0.6 6,060 0.4 6,242 0.4
Other 467,000 22.1 29,880 1.8 29,880 1.7
----------- -------- ---------- -------- ----------- ---------
Total revenues $ 2,117,400 100.0 $1,662,307 100.00 $ 1,718,524 100.0
Operating costs and expenses:
Property operating $ 947,900 44.8 $ 835,659 50.3 $ 860,729 50.1
Interest 221,700 10.5 186,400 11.2 186,400 10.8
Depreciation and amortization 232,200 11.0 195,928 11.8 197,239 11.5
General and administrative:
Related parties 26,800 1.3 38,010 2.3 39,911 2.3
Other 100,700 4.8 68,460 4.1 71,883 4.2
----------- -------- ---------- -------- ----------- --------
Total operating costs and expenses $ 1,529,300 72.2 $1,324,457 79.7 $ 1,356,162 78.9
EBT (before extraordinary items) $ 588,100 27.8 $ 337,850 20.3 $ 362,362 21.1
EBT $ 163,500 7.7 $ 337,850 20.3 $ 362,362 504.1
Capital expenditures $ - - $ - - $ 99,385 5.8
- -----------------------------------------------------------------------------------------------------------------------------------
EBT $ 163,500 7.7% $ 337,850 20.3% $ 362,362 21.1%
Add: depreciation and amortization from 184,797 8.7 154,381 9.3 159,461 9.3
joint ventures and limited partnerships
Add: interest expense from joint ventures 86,158 4.1 105,361 6.3 98,532 5.7
and limited partnerships
Add: depreciation and amortization expense 232,200 11.0 195,928 11.8 197,239 11.5
Add: interest expense 221,700 10.5 186,400 11.2 186,400 10.8
- ----------------------------------------------------------------------------- --------------------------------------------------
EBITDA $ 888,356 42.0 $ 979,920 58.9 $ 1,003,994 58.4
- ----------------------------------------------------------------------------- --------------------------------------------------
Less: interest expense 221,700 10.5 186,400 11.2 186,400 10.8
Less: interest expense from joint ventures 86,158 4.1 105,361 6.3 98,532 5.7
and limited partnerships
- ----------------------------------------------------------------------------- --------------------------------------------------
Funds from Operations (FFO) $ 580,497 27.4% $ 688,159 41.4% $ 719,062 41.8%
- ----------------------------------------------------------------------------- --------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------------------
For the Years Ending December 31,
---------------------------------------------------------------------------------------
% of Total % of Total % of Total % of Total
2001P Revenue 2002P Revenue 2003P Revenue 2004P Revenue
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $1,676,587 94.8% $1,726,885 94.3% $1,778,691 94.0% $1,832,052 93.6%
Equity in earnings (losses) of joint 54,902 3.1 65,152 3.6 74,909 4.0 84,218 4.3
ventures and limited partnerships
Interest 6,429 0.4 6,622 0.4 6,821 0.4 7,025 0.4
Other 30,776 1.7 31,700 1.7 32,651 1.7 33,630 1.7
---------- ------- ---------- ----- ---------- ------- ---------- ---------
Total revenues $1,768,694 100.0 $1,830,359 100.0 $1,893,072 100.0 $1,956,925 100.0
Operating costs and expenses:
Property operating $ 886,551 50.1 $ 913,148 49.9 $ 940,542 49.7 $ 968,758 49.5
Interest 186,400 10.5 186,400 10.2 186,400 9.8 186,400 9.5
Depreciation and amortization 199,212 11.3 201,204 11.0 203,216 10.7 205,248 10.5
General and administrative:
Related parties 41,906 2.4 44,001 2.4 46,201 2.4 48,511 2.5
Other 75,477 4.3 79,251 4.3 83,214 4.4 87,374 4.5
---------- ------- ---------- -------- ---------- ------- ---------- ---------
Total operating costs and $1,389,546 78.6 $1,424,004 77.8 $1,459,573 77.1 $1,496,291 76.5
expenses
EBT (before extraordinary items) $ 379,148 21.4 $ 406,355 22.2 $ 433,499 22.9 $ 460,634 23.5
EBT $ 379,148 21.4 $ 406,355 22.2 $ 433,499 22.9 $ 460,634 23.5
Capital expenditures $ 102,279 5.8 $ 105,174 5.7 $ 108,069 5.7 $ 110,964 5.7
- ------------------------------------------------------------------------------------------------------------------------------------
EBT $ 379,148 21.4% $ 406,355 22.2% $ 433,499 22.9% $ 460,634 23.5%
Add: depreciation and amortization from
joint ventures and limited
partnerships 164,748 9.3 170,250 9.3 175,978 9.3 181,941 9.3
Add: interest expense from joint
ventures and limited partnerships 92,313 5.2 86,648 4.7 81,488 4.3 76,789 3.9
Add: depreciation and amortization
expense 199,212 11.3 201,204 11.0 203,216 10.7 205,248 10.5
Add: interest expense 186,400 10.5 186,400 10.2 186,400 9.8 186,400 9.5
- ---------------------------------------------------------------------------------------------------------------------------------
EBITDA $1,021,820 57.8 $1,050,857 57.4 $1,080,581 57.1 $1,111,012 56.8
- ---------------------------------------------------------------------------------------------------------------------------------
Less: interest expense 186,400 10.5 186,400 10.2 186,400 9.8 186,400 9.5
Less: interest expense from joint
ventures and limited partnerships 92,313 5.2 86,648 4.7 81,488 4.3 76,789 3.9
- ---------------------------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $ 743,108 42.0% $ 777,809 42.5% $ 812,693 42.9% $ 847,823 43.3%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Little Eagle excluded in 1999 and 2000 projections.
9
<PAGE>
Windsor Park Property Historical & Projected Financial Statements
=================================================================
Historical Balance Sheets - WPP 3
<TABLE>
<CAPTION>
----------------------------------------
December 31,
----------------------------------------
1996 1997 1998
----------- ----------- -----------
<S> <C> <C> <C>
Assets:
Property held for investment, net $ 3,940,700 $ 3,905,800 3,368,400
Property held for sale, net - - 444,200
Investments in joint ventures 858,000 1,423,400 1,256,000
Cash and cash equivalents 1,191,800 586,100 640,800
Note receivable from general partner - - -
Deferred financing costs, net 129,800 109,900 90,000
Other assets 183,500 70,900 101,600
----------- ----------- -----------
Total assets $ 6,303,800 $ 6,096,100 5,901,000
Liabilities and Partners' Equity
Liabilities:
Mortgage notes payable $ 2,970,400 $ 2,970,400 2,970,400
Accounts payable 33,800 35,100 5,200
Accrued expenses 110,200 99,000 214,100
Distributions payable - - -
Tenant deposits and other liabilities 63,200 62,500 42,400
Due to General Partner and affiliates - 70,300 24,200
----------- ----------- -----------
Total liabilities $ 3,177,600 $ 3,237,300 $ 3,256,300
Partners' equity:
Limited partners $ 3,151,400 $ 2,898,000 $ 2,696,800
General partners (25,200) (39,200) (52,100)
----------- ----------- -----------
Total partners' equity $ 3,126,200 $ 2,858,800 $ 2,644,700
Total liabilities and partners' equity $ 6,303,800 $ 6,096,100 $ 5,901,000
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
10
<PAGE>
Windsor Park Property 3 Analysis
11
<PAGE>
Windsor Park Property Analysis
- --------------------------------------------------------------
Comparable Trading Multiples Analysis - Methodology Utilized
. Calculate trading multiples of 2000 and 2001 Funds from Operations
("FFO") and Trailing Twelve Months ("TTM") EBITDA for comparable
publicly traded REITs (comparable companies include CPJ, MHC, SUI, UMH
and AIC).
. Add 50.0% of G&A expense as a synergy in respective year, assuming
sale of WPP 3 to a REIT.
. Adjust the calculated trading multiples by 20.0% to arrive at Legg
Mason's selected multiples.
. Per unit valuation calculated by applying the selected multiples to
the WPP 3 forecasted FFO for 2000 and 2001 and TTM EBITDA, subtracting
the 1.0% General Partner share and then dividing by the number of
Limited Partner units outstanding. /(1)/
. Total Limited Partner value calculated by applying the selected
multiples to the WPP 3's forecasted FFO for 2000 and 2001 and TTM
EBITDA and subtracting the 1.0% General Partner share.
Notes
(1) 188,296 LP units outstanding.
12
<PAGE>
Windsor Park Property Analysis
=============================================
Comparable Trading Multiples Analysis
Comparable Trading Multiples Analysis - 2000 WPP 3 FFO/(1)/
<TABLE>
<CAPTION>
Add: Interest Selected Transaction Net Other
2000 FFO + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses /(5)/ + Assets/(1)/
--------------- ----------------- ------------------ --------------------- ------------------ -------------- =
<S> <C> <C> <C> <C> <C> <C>
High 719,062 55,897 6,242 7.9 350,926 (247,800)
Mean $ 719,062 $ 55,897 $ 6,242 7.0 $ 326,212 $ (247,800)
Low 719,062 55,897 6,242 5.8 288,571 (247,800)
<CAPTION>
Total Less: divided LP Units Per LP Unit
Equity Value - 1% GP share/(6)/ by Outstanding/(7)/ = Value
--------------- ----------------- ------------------ -----------------
<S> <C> <C> <C> <C>
High 5,436,520 54,365 188,296 28.58
Mean $ 4,843,398 $ 48,434 188,296 $ 25.47
Low 3,939,999 39,400 188,296 20.72
</TABLE>
Comparable Trading Multiples Analysis - 2001 WPP 3 FFO/(1)/
<TABLE>
<CAPTION>
Add: Interest Selected Transaction Net Other
2001 FFO + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses /(5)/ + Assets/(1)/
--------------- ----------------- ------------------ --------------------- ------------------ -------------
<S> <C> <C> <C> <C> <C> <C>
High 743,108 58,692 6,429 7.2 339,705 (247,800)
Mean $ 743,108 $ 58,692 $ 6,429 6.5 $ 315,171 $ (247,800)
Low 743,108 58,692 6,429 5.2 276,456 (247,800)
<CAPTION>
Total Less: divided LP Units Per LP Unit
Equity Value - 1% GP share/(6)/ by Outstanding/(7)/ = Value
--------------- ----------------- ------------------ -----------------
<S> <C> <C> <C> <C>
High 5,167,232 51,672 188,296 27.17
Mean $ 4,578,407 $ 45,784 188,296 $ 24.07
Low 3,649,252 36,493 188,296 19.19
</TABLE>
Comparable Trading Multiples Analysis - WPP 3 TTM EBITDA/(1)/
<TABLE>
<CAPTION>
Add: Interest Selected Transaction Debt
TTM EBITDA + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ - Outstanding
-------------- ----------------- ---------------- -------------------- ------------------ ----------------- +
<S> <C> <C> <C> <C> <C> <C>
High 888,356 63,750 13,200 9.3 347,526 2,737,900
Mean $ 888,356 $ 63,750 $ 13,200 8.5 $ 318,278 $ 2,737,900
Low 888,356 63,750 13,200 7.8 292,554 2,737,900
<CAPTION>
Net Other Total Less: divided LP Units Per LP Unit
Assets/(1)/ = Equity Value - 1% GP share/(6)/ by Outstanding/(7)/ = Value
-------------- ----------------- ----------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C>
High (247,800) 5,354,918 53,549 188,296 28.15
Mean $ (247,800) $ 4,652,982 $ 46,530 188,296 $ 24.46
Low (247,800) 4,035,600 40,356 188,296 21.22
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Derived from financial projections provided by the Managing General Partner.
Comparable Companies include CPJ, MHC, SUI, UMH, and AIC.
(2) Added 50.0% G&A expense as a synergy assuming sale of partnership to a REIT.
(3) Interest Income deducted due to cash distribution to the Limited Partners
upon completion of the transaction.
(4) Selected multiples calculated in pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(5) Transaction expenses calculated as 4.0% of equity value plus debt
outstanding in 2000 & 2001 FFO analyses and as 4.0% of equity value in TTM
EBITDA analysis.
(6) Less 1.0% in General Partner share, provided for by the Agreement of Limited
Partnership and confirmed by the Managing General Partner.
(7) Assumes 188,296 LP units outstanding.
LEGG Investment
MASON Banking
13
<PAGE>
Windsor Park Property Analysis
- -----------------------------------------------------------------
Discounted Cash Flow Analysis - Methodology Utilized
. Discount projected annual aggregate free cash flow available to all
equity interests to the present (January 1, 2000) at discount rates of
14.9% to 18.6%, which represents Legg Mason's estimate of the cost of
equity. This discount rate was calculated by dividing 1 by the
comparable trailing twelve trading month multiples (discounted 20.0%)
plus the growth rate of WPP 3.
. Calculate the aggregate terminal value in year 2004 available to all
equity interests by applying discounted terminal trading multiples of
6.4x to 8.4x to projected year 2004 FFO.
. Discount the aggregate terminal value to the present (January 1, 2000)
at discount rates of 14.9% to 18.6%.
. Add the present value of pro-rata cash flow and the present value of
pro-rata terminal value to arrive at the total equity value available
to present (January 1, 2000) equity interests.
. Subtract the 1.0% General Partner share and divide the remaining
equity value available by the Limited Partner units outstanding
(188,296) to arrive at the estimated value per Limited Partner unit of
WPP 3.
14
<PAGE>
March 1, 2000
Windsor Park Property Analysis
===============================================
Discounted Cash Flow Analysis
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
Year 1 Year 2 Year 3 Year 4 Year 5
2000 2001 2002 2003 2004
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
EBITDA $ 1,003,994 $ 1,021,820 $ 1,050,857 $ 1,080,581 $ 1,111,012
Less: interest expense 284,932 278,713 273,048 267,888 263,189
Less: principal amortization 8,903 8,903 8,903 8,903 8,903
Less: CAPEX 99,385 102,279 105,174 108,069 110,964
-----------------------------------------------------------------------------------------------------------------
Equity Free Cash Flow $ 610,774 $ 631,926 $ 663,732 $ 695,721 $ 727,956
-----------------------------------------------------------------------------------------------------------------
Add: CAPEX 99,385 102,279 105,174 108,069 110,964
Add: principal amortization 8,903 8,903 8,903 8,903 8,903
Add: 50% G&A expense 55,897 58,692 61,626 64,708 67,943
-----------------------------------------------------------------------------------------------------------------
FFO (1) $ 774,959 $ 801,799 $ 839,435 $ 877,400 $ 915,765
-----------------------------------------------------------------------------------------------------------------
LP Units outstanding at January 1, 2000 188,296 188,296 188,296 188,296 188,296
-----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Terminal Less: Equity Present Value of:
---------------------------
2004 Pre-Tax Terminal Selling Net Other Terminal Discount Cash Terminal
FFO Value/(2)/ Value Expenses/(3)/ Assets Value Rate/(4)/ Flows + Value =
- --------- ---------- ----------- ------------- ----------- ----------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 915,765 8.4 $ 7,715,010 $ 522,645 $ (247,800) $ 6,944,564 14.9% $ 2,370,849 $ 3,472,270
$ 915,765 7.6 $ 6,976,836 $ 485,737 $ (247,800) $ 6,243,299 14.9% $ 2,370,849 $ 3,121,638
$ 915,765 6.4 $ 5,869,503 $ 430,370 $ (247,800) $ 5,191,333 14.9% $ 2,370,849 $ 2,595,657
$ 915,765 8.4 $ 7,715,010 $ 522,645 $ (247,800) $ 6,944,564 16.1% $ 2,312,247 $ 3,288,527
$ 915,765 7.6 $ 6,976,836 $ 485,737 $ (247,800) $ 6,243,299 16.1% $ 2,312,247 $ 2,956,450
$ 915,765 6.4 $ 5,869,503 $ 430,370 $ (247,800) $ 5,191,333 16.1% $ 2,312,247 $ 2,458,302
$ 915,765 8.4 $ 7,715,010 $ 522,645 $ (247,800) $ 6,944,564 18.6% $ 2,204,100 $ 2,959,261
$ 915,765 7.6 $ 6,976,836 $ 485,737 $ (247,800) $ 6,243,299 18.6% $ 2,204,100 $ 2,660,433
$ 915,765 6.4 $ 5,869,503 $ 430,370 $ (247,800) $ 5,191,333 18.6% $ 2,204,100 $ 2,212,163
<CAPTION>
Present Value of:
- -----------------
Equity Less: LP Units Equity Value /
Value 1% GP share Outstanding = LP Unit
- ---------------- ----------- ------------ --------------
<S> <C> <C> <C>
$ 5,843,119 $ 58,431 188,296 $ 30.72
$ 5,492,487 $ 54,925 188,296 $ 28.88
$ 4,966,506 $ 49,665 188,296 $ 26.11
$ 5,600,774 $ 56,008 188,296 $ 29.45
$ 5,268,698 $ 52,687 188,296 $ 27.70
$ 4,770,550 $ 47,705 188,296 $ 25.08
$ 5,163,360 $ 51,634 188,296 $ 27.15
$ 4,864,533 $ 48,645 188,296 $ 25.58
$ 4,416,263 $ 44,163 188,296 $ 23.22
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Derived from financial projections provided by the Managing General Partner.
Comparable Companies include CPJ, MHC, SUI, UMH and AIC.
(2) Selected multiples calculated on pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(3) Transaction expenses calculated as 5.0% of terminal equity value plus debt
outstanding.
(4) Discount rate calculated as 1 divided by terminal multiple plus the growth
rate.
15
<PAGE>
Windsor Park Property Analysis
- ----------------------------------------------------------------
Liquidation Analysis - Methodology Utilized
. Applied a 10.0% discount to the appraisal values of the three
properties in which WPP 3 holds a minority interest. Subtracted debt
outstanding and transaction expenses from the discounted appraisal
values for each property. Appraisal values were determined and
provided by Whitcomb Real Estate, Inc.
. Subtracted the 1.0% General Partner share from the net equity value to
arrive at the total Limited Partner value.
. Divided remaining equity value by the number of Limited Partner units
outstanding (188,296 units) to arrive at a per Limited Partner unit
value.
16
<PAGE>
March 1, 2000
Windsor Park Property Analysis
========================================================
Liquidation Analysis
<TABLE>
<CAPTION>
Percent Appraised Less: Debt Equity Transaction Net
Property Ownership Value/(1)/ Discount/(2)/ Outstanding/(1)/ Value Expenses/(3)/ Other Assets/(1)/
- ------------------- ----------- ----------- -------------- ----------------- ----------- --------------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Ponderosa 100.0 % $ 2,200,000 $ - $ 400,000 $ 1,800,000 $ - $ -
The Pines 100.0 700,000 - - 700,000 - -
Shady Hills 100.0 2,400,000 - - 2,400,000 - -
Trailmont 100.0 2,300,000 - 1,170,400 1,129,600 - -
Big Country Estates 40.0 1,124,000 112,400 - 1,011,600 - -
Apache / Denali 29.0 1,580,500 158,050 867,500 554,950 - -
Harmony Ranch 25.0 575,000 57,500 300,000 217,500 - -
---------- ----------- ----------- -------------- ----------- ----------- --------------
Total - $10,879,500 $ 327,950 $ 2,737,900 $ 7,813,650 $ 527,578 $ (247,800)
<CAPTION>
Net Equity Less: LP Units Per LP Unit
Property Value 1% GP Share Outstanding/(1)/ Value
- ------------------- ------------ ------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Ponderosa $ - $ - - $ -
The Pines - - - -
Shady Hills - - - -
Trailmont - - - -
Big Country Estates - - - -
Apache / Denali - - - -
Harmony Ranch - - - -
------------ ------------- -------------- -------------
Total $ 7,038,273 $ 70,383 188,296 $ 37.00
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Amount of debt outstanding provided by the Managing General Partner.
(2) Applied a 10.0% discount to the three properties in which WPP 3 holds a
minority interest.
(3) Calculated as 5.0% of discounted appraisal value. Does not include general
and administrative expenses of the Partnership during the liquidation
period, liquidation costs associated with a prolonged marketing period or
the time value of the proceeds from the sale of the properties.
17
<PAGE>
Windsor Park Property 6 Historical & Projected
Financial Statements
18
<PAGE>
Windsor Park Property Historical & Projected Financial Statements
=================================================================
Historical & Projected Income Statements - WPP 6
<TABLE>
<CAPTION>
For the Years Ended December 31,
% of Total % of Total % of Total TTM
1996 Revenue 1997 Revenue 1998 Revenue 30-Sep-99
---------- ---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $ 571,200 64.6% 630,800 71.6% $ 651,600 48.6% $ 524,600
Equity in earnings (losses) of joint
ventures and limited partnerships 250,700 28.4 208,500 23.7 259,200 19.3 349,400
Interest 23,700 2.7 16,900 1.9 15,200 1.1 7,500
Other 38,000 4.3 25,200 2.9 415,900/(1)/ 31.0 415,900/(1)/
---------- ----- --------- ----- ---------- ----- ----------
Total revenues $ 883,600 100.0 881,400 100.0 $1,341,900 100.0 $1,297,400
Operating costs and expenses:
Property operating $ 276,600 31.3 329,200 37.3 $ 307,200 22.9 $ 237,900
Interest 124,100 14.0 127,200 14.4 147,900 11.0 52,600
Depreciation and amortization 174,700 19.8 179,500 20.4 173,700 12.9 138,800
General and administrative:
Related parties 77,500 8.8 67,900 7.7 32,000 2.4 21,800
Other 43,100 4.9 39,200 4.4 71,400 5.3 90,200
---------- ----- --------- ----- ---------- ----- ----------
Total operating costs and
expenses $ 696,000 78.8 743,000 84.3 $ 732,200 54.6 $ 541,300
EBT (before extraordinary items) $ 187,600 21.2 138,400 15.7 $ 609,700 45.4 $ 756,100
EBT $ 187,600 21.2 138,400 15.7 $ 212,700/(2)/ 15.9 $ 359,200/(2)/
- -------------------------------------------------------------------------------------------------------------------------------
EBT $ 187,600 21.2% 138,400 15.7% $ 212,700 15.9 $ 359,200
Add: depreciation and amortization
from joint ventures and limited
partnerships 357,523 40.5 368,456 41.8 379,282 28.3 408,582
Add: interest expense from joint
ventures and limited partnerships 578,739 65.5 588,672 66.8 581,610 43.3 512,210
Add: depreciation and amortization
expense 174,700 19.8 179,500 20.4 173,700 12.9 138,800
Add: interest expense 124,100 14.0 127,200 14.4 147,900 11.0 52,600
EBITDA $1,422,662 161.0 1,402,228 159.1 $1,495,192 111.4% $1,471,392
---------- ----- --------- ----- ---------- ----- ----------
Less: interest expense 124,100 14.0 127,200 14.4 147,900 11.0 52,600
Less: interest expense from joint
ventures and limited partnerships 578,739 65.5 588,672 66.8 581,610 43.3 512,210
Funds from Operations (FFO) $ 719,823 81.5% 686,356 77.9% $ 765,682 57.1 $ 906,582
<CAPTION>
September 30, 1999 For the Years Ended December 31,
% of Total % of Total % of Total % of Total
Revenue 1999P Revenue 2000P Revenue 2001P Revenue
---------- ---------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities 40.4% $ 515,966 59.2% $ 531,445 59.0% $ 547,388 57.5%
Equity in earnings (losses) of joint
ventures and limited partnerships 26.9 339,777 39.0 353,185 39.2 387,275 40.7
Interest 0.6 6,500 0.7 6,500 0.7 6,695 0.7
Other 32.1 10,020 1.1 10,020 1.1 10,321 1.1
----- ---------- ----- ---------- ----- ---------- -----
Total revenues 100.0 $ 872,263 100.0 $ 901,150 100.0 $ 951,679 100.0
Operating costs and expenses:
Property operating 18.3 $ 217,110 24.9 $ 223,623 24.8 $ 230,332 24.2
Interest 4.1 - - - - - -
Depreciation and amortization 10.7 130,148 14.9 131,450 14.6 132,764 14.0
General and administrative:
Related parties 1.7 33,667 3.9 35,350 3.9 37,118 3.9
Other 7.0 74,954 8.6 78,701 8.7 82,636 8.7
----- ---------- ----- ---------- ----- ---------- -----
Total operating costs and
expenses 41.7 $ 455,879 52.3 $ 469,124 52.1 $ 482,850 50.7
EBT (before extraordinary items) 58.3 $ 416,384 47.7 $ 432,026 47.9 $ 468,829 49.3
EBT 27.7 $ 416,384 47.7 $ 432,026 47.9 $ 468,829 49.3
- ---------------------------------------------------------------------------------------------------------------------------------
EBT 27.7% $ 416,384 47.7% $ 432,026 47.9% $ 468,829 49.3%
Add: depreciation and amortization
from joint ventures and limited
partnerships 31.5 390,608 44.8 402,457 44.7 414,857 43.6
Add: interest expense from joint
ventures and limited partnerships 39.5 574,640 65.9 567,762 63.0 560,974 58.9
Add: depreciation and amortization
expense 10.7 130,148 14.9 131,450 14.6 132,764 14.0
Add: interest expense 4.1 - - - - -
EBITDA 113.4 $1,511,780 173.3 $1,533,695 170.2 $1,577,424 165.8%
----- ---------- ----- ---------- ----- ---------- -----
Less: interest expense 4.1 - - - - - -
Less: interest expense from joint
ventures and limited partnerships 39.5 574,640 65.9 567,762 63.0 560,974 58.9
Funds from Operations (FFO) 69.9% $ 937,140 107.4% $ 965,933 107.2% $1,016,450 165.8%
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Includes $396,900 from gain on sale of Circle K in November 1998.
(2) Net of $396,900 from gain on sale of Circle K.
19
<PAGE>
Windsor Park Property Historical & Projected Financial Statements
================================================================================
Historical & Projected Income Statements - WPP 6
<TABLE>
<CAPTION>
September 30, 1999 For the Years Ending December 31,
------------------------- ----------------------------------------------------------------
% of % of % of % of
TTM Total Total Total Total
30-Sep-99 Revenue 1999P Revenue 2000P Revenue 2001P Revenue
----------- ------- ----------- ------- ---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $ 524,600 40.4% $ 515,966 59.2% $ 531,445 59.0% $ 547,388 57.5%
Equity in earnings (losses) of joint 349,400 26.9 339,777 39.0 353,185 39.2 387,275 40.7
ventures and limited partnerships
Interest 7,500 0.6 6,500 0.7 6,500 0.7 6,695 0.7
Other 415,900/(1)/ 32.1 10,020 1.1 10,020 1.1 10,321 1.1
----------- ------- ----------- ------- ---------- ------- ---------- -------
Total revenues $ 1,297,400 100.0 $ 872,263 100.0 $ 901,150 100.0 $ 951,679 100.0
Operating costs and expenses:
Property operating $ 237,900 18.3 $ 217,110 24.9 $ 223,623 24.8 $ 230,332 24.2
Interest 52,600 4.1 - - - - - -
Depreciation and amortization 138,800 10.7 130,148 14.9 131,450 14.6 132,764 14.0
General and administrative:
Related parties 21,800 1.7 33,667 3.9 35,350 3.9 37,118 3.9
Other 90,200 7.0 74,954 8.6 78,701 8.7 82,636 8.7
----------- ------- ----------- ------- ---------- ------- ---------- -------
Total operating costs and expenses $ 541,300 41.7 $ 455,879 52.3 $ 469,124 52.1 $ 482,850 50.7
EBT (before extraordinary items) $ 756,100 58.3 $ 416,384 47.7 $ 432,026 47.9 $ 468,829 49.3
EBT $ 359,200/(2)/ 27.7 $ 416,384 47.7 $ 432,026 47.9 $ 468,829 49.3
Capital expenditures $ - - $ - - $ 99,221 11.0 $ 102,111 10.7
- ------------------------------------------------------------------------------------------------------------------------------------
EBT $ 359,200 27.7% $ 416,384 47.7% $ 432,026 47.9% $ 468,829 49.3%
Add: depreciation and amortization
from joint ventures and limited
partnerships 408,582 31.5 390,608 44.8 402,457 44.7 414,857 43.6
Add: interest expense from joint 512,210 39.5 574,640 65.9 567,762 63.0 560,974 58.9
ventures and limited partnerships
Add: depreciation and amortization
expense 138,800 10.7 130,148 14.9 131,450 14.6 132,764 14.0
Add: interest expense 52,600 4.1 - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
EBITDA $ 1,471,392 113.4 $ 1,511,780 173.3 $ 1,533,695 170.2 $ 1,577,424 165.8
- -----------------------------------------------------------------------------------------------------------------------------------
Less: interest expense 52,600 4.1 - - - - - -
Less: interest expense from joint
ventures and limited partnerships 512,210 39.5 574,640 65.9 567,762 63.0 560,974 58.9
- -----------------------------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $ 906,582 69.9% $ 937,140 107.4% $ 965,933 107.2% $ 1,016,450 106.8
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
For the Years Ending December 31,
--------------------------------------------------------------------
% of % of % of
Total Total Total
2002P Revenue 2003P Revenue 2004P Revenue
----------- ------- ----------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $ 563,810 56.2% $ 580,724 55.0% $ 598,146 53.9%
Equity in earnings (losses) of joint 421,891 42.1 457,039 43.3 492,727 44.4
ventures and limited partnerships
Interest 6,896 0.7 7,103 0.7 7,316 0.7
Other 10,630 1.1 10,949 1.0 11,278 1.0
----------- ------- ----------- ------- ----------- -------
Total revenues $ 1,003,227 100.0 $ 1,055,815 100.0 $ 1,109,467 100.0
Operating costs and expenses:
Property operating $ 237,242 23.6 $ 244,359 23.1 $ 251,690 22.7
Interest - - - - - -
Depreciation and amortization 134,092 13.4 135,433 12.8 136,787 12.3
General and administrative:
Related parties 38,974 3.9 40,922 3.9 42,968 3.9
Other 86,768 8.6 91,107 8.6 95,662 8.6
----------- ------- ----------- ------- ----------- -------
Total operating costs and expenses $ 497,076 49.5 $ 511,821 48.5 $ 527,107 47.5
EBT (before extraordinary items) $ 506,151 50.5 $ 543,994 51.5 $ 582,360 52.5
EBT $ 506,151 50.5 $ 543,994 51.5 $ 582,360 52.5
Capital expenditures $ 105,001 10.5 $ 107,891 10.2 $ 110,781 10.0
- -----------------------------------------------------------------------------------------------------------------------------------
EBT $ 506,151 50.5% $ 543,994 51.5% $ 582,360 52.5%
Add: depreciation and amortization
from joint ventures and limited
partnerships 427,834 42.6 441,418 41.8 455,636 41.1
Add: interest expense from joint
ventures and limited partnerships 554,275 55.2 547,664 51.9 541,139 48.8
Add: depreciation and amortization
expense 134,092 13.4 135,433 12.8 136,787 12.3
Add: interest expense - - - - - -
- ------------------------------------------------------------------------------------------------------------
EBITDA $ 1,622,352 161.7 $ 1,668,508 158.0 $ 1,715,923 154.7
- ------------------------------------------------------------------------------------------------------------
Less: interest expense - - - - - -
Less: interest expense from joint 554,275 55.2 547,664 51.9 541,139 48.8
ventures and limited partnerships
- ------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $ 1,068,077 106.5% $ 1,120,845 106.2% $ 1,174,783 105.9%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Includes $396,900 from gain on sale of Circle K in November 1998.
(2) Net of $396,900 from gain on sale of Circle K.
20
<PAGE>
Windsor Park Property Historical & Projected Financial Statements
=================================================================
Historical Balance Sheets - WPP 6
<TABLE>
<CAPTION>
--------------------------------------------
December 31,
--------------------------------------------
1996 1997 1998
------------ ------------ ------------
<S> <C> <C> <C>
Assets:
Property held for investment $ 2,669,000 $ 2,527,800 $ 1,659,600
Investments in joint ventures 5,543,300 5,364,900 4,966,400
Cash and cash equivalents 530,200 359,300 265,900
Note receivable from general partners - - -
Deferred financing costs, net 59,800 49,400 -
Other assets 41,000 33,300 6,100
------------ ------------ ------------
Total assets $ 8,843,300 $ 8,334,700 $ 6,898,000
Liabilities and Partners' Equity
Liabilities:
Mortgage notes payable $ 1,340,000 $ 1,340,000 $ -
Accounts payable 6,100 5,400 -
Accrued expenses 46,800 37,700 84,900
Distributions payable - - -
Tenant deposits and other liabilities 48,000 35,600 11,300
Due to General Partner and affiliates - 29,700 10,200
------------ ------------ ------------
Total liabilities $ 1,440,900 $ 1,448,400 $ 106,400
Partners' equity:
Limited partners $ 7,390,400 $ 6,879,000 $ 6,784,300
General partners 12,000 7,300 7,300
------------ ------------ ------------
Total partners' equity $ 7,402,400 $ 6,886,300 $ 6,791,600
Total liabilities and partners' equity $ 8,843,300 $ 8,334,700 $ 6,898,000
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
21
<PAGE>
Windsor Park Property 6 Analysis
22
<PAGE>
Windsor Park Property Analysis
================================================================================
Comparable Trading Multiples Analysis - Methodology Utilized
. Calculate trading multiples of 2000 and 2001 Funds from Operations
("FFO") and Trailing Twelve Months ("TTM") EBITDA for comparable publicly
traded REITs (comparable companies include CPJ, MHC, SUI, UMH and AIC).
. Add 50.0% of G&A expense as a synergy in respective year, assuming sale
of WPP 6 to a REIT.
. Adjust the calculated trading multiples by 20.0% to arrive at Legg
Mason's selected multiples.
. Per unit valuation calculated by applying the selected multiples to the
WPP 6 forecasted FFO for 2000 and 2001 and TTM EBITDA, subtracting the
1.0% General Partner share and then dividing by the number of Limited
Partner units outstanding. /(1)/
. Total Limited Partner value calculated by applying the selected multiples
to the WPP 6's forecasted FFO for 2000 and 2001 and TTM EBITDA and
subtracting the 1.0% General Partner share.
Notes:
(1) 286,614 LP units outstanding.
23
<PAGE>
Windsor Park Property Analysis
================================================================================
Comparable Trading Multiples Analysis
<TABLE>
<CAPTION>
Comparable Trading Multiples Analysis - 2000 WPP 6 FFO /(1)/
Add: Interest Selected Transaction Net Other
2000 FFO/(1)/ + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ + Assets/(1)/
------------- -------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
High 965,933 57,026 6,500 7.9 572,211 228,300
Mean $ 965,933 $ 57,026 $ 6,500 7.0 $ 539,533 $ 228,300
Low 965,933 57,026 6,500 5.8 489,761 228,300
<CAPTION>
Total Less: LP Units Per LP Unit
= Equity Value - 1% GP share/(6)/ + Outstanding/(7)/ = Value
-------------- ---------------- ----------------- -------------
<S> <C> <C> <C> <C>
High 7,636,373 76,364 286,614 26.38
Mean $ 6,852,100 $ 68,521 286,614 $ 23.67
Low 5,657,553 56,576 286,614 19.54
Comparable Trading Multiples Analysis - 2001 WPP 6 FFO /(1)/
<CAPTION>
Add: Interest Selected Transaction Net Other
2001 FFO/(1)/ + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ + Assets/(1)/
------------- -------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
High 1,016,450 59,877 6,695 7.2 562,564 228,300
Mean $ 1,016,450 $ 59,877 $ 6,695 6.5 $ 529,570 $ 228,300
Low 1,016,450 59,877 6,695 5.2 477,505 228,300
<CAPTION>
Total Less: LP Units Per LP Unit
= Equity Value - 1% GP share/(6)/ + Outstanding/(7)/ = Value
-------------- ---------------- ----------------- -------------
<S> <C> <C> <C> <C>
High 7,404,840 74,048 286,614 25.58
Mean $ 6,612,975 $ 66,130 286,614 $ 22.84
Low 5,363,425 53,634 286,614 18.53
Comparable Trading Multiples Analysis - WPP 6 TTM EBITDA /(1)/ /(2)/
<CAPTION>
Add: Interest Selected Transaction Debt Net Other
TTM EBITDA + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/- Expenses/(5)/ - Outstanding + Assets/(1)/
------------- ------------- -------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
High 1,471,392 56,000 7,500 9.3 562,571 6,325,000 228,300
Mean $ 1,471,392 $ 56,000 $ 7,500 8.5 $ 515,226 $ 6,325,000 $ 228,300
Low 1,471,392 56,000 7,500 7.8 473,584 6,325,000 228,300
<CAPTION>
Total Less: LP Units Per LP Unit
= Equity Value - 1% GP share/(6)/ + Outstanding/(7)/ = Value
-------------- ---------------- ----------------- -------------
<S> <C> <C> <C> <C>
High 7,405,014 74,050 286,614 25.58
Mean $ 6,268,726 $ 62,687 286,614 $ 21.65
Low 5,269,314 52,693 286,614 18.20
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Derived from projections provided by the Managing General Partner.
Comparable Companies include CPJ, MHC, SUI, UMH and AIC.
(2) Added 50.0% G&A expenses as a synergy assuming sale of partnership to a
REIT.
(3) Interest income deducted due to cash distribution upon completion of the
transaction.
(4) Selected multiples calculated on pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(5) Transaction expenses calculated as 4.0% of equity value plus debt in 2000 &
2001 FFO analyses and as 4.0% of equity value in TTM EBITDA analysis.
(6) Less 1.0% in General Partner share, provided for by the Agreement of
Limited Partnership and confirmed by the Managing General Partner.
(7) Assumes 286,614 LP units outstanding.
24
<PAGE>
Windsor Park Property Analysis
================================================================================
Discounted Cash Flow Analysis - Methodology Utilized
. Discount projected annual aggregate free cash flow available to all
equity interests to the present (January 1, 2000) at discount rates of
14.9% to 18.6%, which represents Legg Mason's estimate of the cost of
equity. This discount rate was calculated by dividing 1 by the comparable
trailing twelve month trading multiples (discounted 20.0%) plus the
growth rate of WPP 6.
. Calculate the aggregate terminal value in year 2004 available to all
equity interests by applying discounted terminal trading multiples of
6.4x to 8.4x to projected year 2004 FFO.
. Discount the aggregate terminal value to the present (January 1, 2000) at
discount rates of 14.9% to 18.6%.
. Add the present value of pro-rata cash flow and the present value of pro-
rata terminal value to arrive at the total equity value available to
present (January 1, 2000) equity interests.
. Subtract the 1.0% General Partner share and divide the remaining equity
value available by the Limited Partner units outstanding (286,614) to
arrive at the estimated value per Limited Partner unit of WPP 6.
25
<PAGE>
Windsor Park Property Analysis
================================================================================
Discounted Cash Flow Analysis
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Year 1 Year 2 Year 3 Year 4 Year 5
2000 2001 2002 2003 2004
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
EBITDA $ 1,533,695 $ 1,577,424 $ 1,622,352 $ 1,668,508 $ 1,715,923
Less: interest expense 567,762 560,974 554,275 547,664 541,139
Less: principal amortization 20,705 20,705 20,705 20,705 20,705
Less: CAPEX 99,221 102,111 105,001 107,891 110,781
-----------------------------------------------------------------------------------------------------------
Equity Free Cash Flow $ 846,007 $ 893,634 $ 942,371 $ 992,249 $ 1,043,297
-----------------------------------------------------------------------------------------------------------
Add: CAPEX 99,221 102,111 105,001 107,891 110,781
Add: principal amortization 20,705 20,705 20,705 20,705 20,705
Add: 50% G&A expense 57,026 59,877 62,871 66,015 69,315
-----------------------------------------------------------------------------------------------------------
FFO/(1)/ $ 1,022,959 $ 1,076,327 $ 1,130,948 $ 1,186,859 $ 1,244,098
-----------------------------------------------------------------------------------------------------------
LP Units outstanding at January 1, 2000 286,614 286,614 286,614 286,614 286,614
-----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Terminal Less: Equity Present Value of:
--------------------------------------
2004 Pre-Tax Terminal Selling Net Other Terminal Discount Cash Terminal Equity
FFO Value/(2)/ Value Expenses/(3)/ Assets Value Rate/(4)/ Flows + Value = Value
- ----------- ---------- ------------ ------------- ------------ ----------- --------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1,244,098 8.4 $ 10,481,102 $ 840,305 $ 228,300 $ 9,869,097 14.9% $ 3,351,451 $4,934,531 $ 8,285,981
$ 1,244,098 7.6 $ 9,478,268 $ 790,163 $ 228,300 $ 8,916,405 14.9% $ 3,351,451 $4,458,186 $ 7,809,637
$ 1,244,098 6.4 $ 7,973,919 $ 714,946 $ 228,300 $ 7,487,273 14.9% $ 3,351,451 $3,743,623 $ 7,095,073
$ 1,244,098 8.4 $ 10,481,102 $ 840,305 $ 228,300 $ 9,869,097 16.1% $ 3,268,049 $4,673,410 $ 7,941,459
$ 1,244,098 7.6 $ 9,478,268 $ 790,163 $ 228,300 $ 8,916,405 16.1% $ 3,268,049 $4,222,272 $ 7,490,322
$ 1,244,098 6.4 $ 7,973,919 $ 714,946 $ 228,300 $ 7,487,273 16.1% $ 3,268,049 $3,545,521 $ 6,813,571
$ 1,244,098 8.4 $ 10,481,102 $ 840,305 $ 228,300 $ 9,869,097 18.6% $ 3,114,158 $4,205,481 $ 7,319,639
$ 1,244,098 7.6 $ 9,478,268 $ 790,163 $ 228,300 $ 8,916,405 18.6% $ 3,114,158 $3,799,513 $ 6,913,672
$ 1,244,098 6.4 $ 7,973,919 $ 714,946 $ 228,300 $ 7,487,273 18.6% $ 3,114,158 $3,190,523 $ 6,304,681
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------
Less: LP Units Equity Value /
1% GP share Outstanding = LP Unit
- ----------- ------------- ----------------
<S> <C> <C>
$ 82,860 286,614 $ 28.62
$ 78,096 286,614 $ 26.98
$ 70,951 286,614 $ 24.51
$ 79,415 286,614 $ 27.43
$ 74,903 286,614 $ 25.87
$ 68,136 286,614 $ 23.53
$ 73,196 286,614 $ 25.28
$ 69,137 286,614 $ 23.88
$ 63,047 286,614 $ 21.78
- -------------------------------------------------
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Projections provided by the Managing General Partner. Comparable Companies
include CPJ, MHC, SUI, UMH and AIC.
(2) Selected multiples calculated on pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(3) Transaction expenses calculated as 5.0% of terminal equity value plus debt
outstanding.
(4) Discount rate calculated as 1 divided by terminal multiple plus the growth
rate.
26
<PAGE>
Windsor Park Property Analysis
================================================================================
Liquidation Analysis - Methodology Utilized
. Applied a 10.0% discount to the appraisal values of the four properties
in which WPP 6 holds a minority interest. Applied a 5.0% discount to the
property in which WPP 6 holds a majority interest. Subtracted debt
outstanding and transaction expenses from the discounted appraisal values
for each property. Appraisal values were determined and provided by
Whitcomb Real Estate, Inc.
. Subtracted the 1.0% General Partner share from the net equity value to
arrive at the total Limited Partner value.
. Divided remaining equity value by the number of Limited Partner units
outstanding (286,614 units) to arrive at a per Limited Partner unit
value.
27
<PAGE>
Windsor Park Property Analysis
================================================================================
Liquidation Analysis
<TABLE>
<CAPTION>
Percent Appraised Less: Debt Equity Transaction
Property Ownership Value /(1)/ Discount/(2)/ Outstanding/(1)/ Value Expenses/(3)/
- ---------------- ------------ -------------- -------------- ---------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
T&C Estates 58.0% $ 3,132,000 $ 156,600 $ 899,000 $ 2,076,400 $ -
Chisholm Creek 100.0 2,940,000 - - 2,940,000 -
Carefree 44.0 2,917,200 291,720 1,531,112 1,094,368 -
Rancho Margate 41.0 2,624,000 262,400 1,468,357 893,243 -
Winter Haven 41.0 1,521,100 152,110 659,478 709,512 -
Garden Walk 31.0 3,518,500 351,850 1,767,000 1,399,650 -
------------ -------------- -------------- ---------------- ------------- -------------
Total - $ 16,652,800 $1,214,680 $ 6,324,948 $ 9,113,172 $ 771,906
<CAPTION>
Net Net Equity Less: LP Units Per LP Unit
Property Other Assets/(1)/ Value 1% GP Share Outstanding/(1)/ Value
- ------------------ ------------------ ------------- -------------- ----------------- -------------
<S> <C> <C> <C>
T&C Estates $ - $ - $ - $ - $ -
Chisholm Creek - - - - -
Carefree - - - - -
Rancho Margate - - - - -
Winter Haven - - - - -
Garden Walk - - - - -
------------------ ------------- -------------- ----------------- --------------
Total $ 228,300 $8,569,566 $ 85,696 286,614 $ 29.60
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Debt outstanding provided by the Managing General Partner.
(2) Applied a 10.0% discount to the four properties in which WPP 6 holds a
minority interest and applied a 5.0% discount to the property in which WPP
6 holds a majority interest.
(3) Calculated as 5.0% of discounted appraisal value. Does not include general &
administrative expenses of the Partnership during the liquidation period,
liquidation costs associated with a prolonged marketing period or the time
value of the proceeds from the sale of the properties.
28
<PAGE>
Addendum
29
<PAGE>
Addendum
================================================================================
Comparable Company Trading Analysis
<TABLE>
<CAPTION>
02/28/2000 Indicated Indicated ----------------------------
Closing 52 Week Annual Dividend FFO Estimates
------------------ ----------------------------
Ticker Company Name Price High Low Dividend Yield TTM 2000E 2001E
- ------ ----------------------------------- ---------- -------- --------- ---------- --------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CPJ Chateau Communities, Inc. $24.06 $31.00 $23.94 $1.94 8.1 % $2.45 $2.66 $2.87
MHC Manufactured Home Communities, Inc. 23.06 27.00 21.81 1.55 6.7 2.19 2.35 2.55
SUI Sun Communities, Inc. 29.75 37.13 29.50 2.04 6.9 2.99 3.27 3.57
UMH United Mobile Homes, Inc. 8.00 10.13 7.88 0.75 9.4 0.86 N/A N/A
AIC Asset Investors Corporation 11.94 15.50 10.69 1.00 8.4 1.49 1.64 1.82
</TABLE>
<TABLE>
<CAPTION>
UNADJUSTED
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Median: 8.1 %
Minimum: 6.7
Mean: 7.9
Maximum: 9.4
- ------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED for PARTNERSHIPS (20% Discount)
- ------------------------------------------------------------------------------------------------------------------------------------
Median: /(1)/ 6.4 %
Minimum: /(1)/ 5.4
Mean: /(1)/ 6.3
Maximum: /(1)/ 7.5
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Debt/
1999 1999 Equity Long Total Total
FFO Multiples FFO FFO Shares Market Term Market Market
-------------------------
Ticker Company Name TTM 2000E 2001E Yield Payout Out. Cap Debt Cap Cap
- ------ ----------------------------------- ------- ------ -------- ------- --------- ------- ------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CPJ Chateau Communities, Inc. 9.8 x 9.0 x 8.4 x 11.1 % 72.9 % 28.4 $683.1 $461.7 $1,144.8 40.3%
MHC Manufactured Home Communities, Inc. 10.5 9.8 9.0 10.2 66.0 24.1 554.9 658.5 1,213.5 54.3
SUI Sun Communities, Inc. 9.9 9.1 8.3 11.0 62.4 17.4 518.6 388.2 906.8 42.8
UMH United Mobile Homes, Inc. 9.3 N/A N/A N/A N/A 7.3 58.2 30.6 88.8 34.5
AIC Asset Investors Corporation 8.0 7.3 6.6 13.7 N/A 5.6 67.2 54.5 121.7 44.7
</TABLE>
<TABLE>
<CAPTION>
UNADJUSTED
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Median: 9.8 x 9.1 x 8.4 x 11.0 % 42.8 %
Minimum: 8.0 7.3 6.6 10.2 34.5
Mean: 9.5 8.8 8.1 11.5 43.3
Maximum: 10.5 9.8 9.0 13.7 54.3
- ------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED for PARTNERSHIPS (20% Discount)
- ------------------------------------------------------------------------------------------------------------------------------------
Median: /(1)/ 7.9 x 7.3 x 6.7 x 34.2 %
Minimum: /(1)/ 6.4 5.8 5.2 27.6
Mean: /(1)/ 7.6 7.0 6.5 34.7
Maximum: /(1)/ 8.4 7.9 7.2 43.4
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
N/A - Information not available, TTM - Trailing Twelve Months.
(1) Adjusted for Partnerships with a discount of 20.0%.
30
<PAGE>
Addendum
================================================================================
Comparable Company Trading Analysis
<TABLE>
<CAPTION>
TTM Net
TTM TTM SG&A / Net Profit EBITDA
Ticker Company Name Revenue SG&A Revenue Income Margin EBITDA Margin
- -------- ------------------------------------ --------- ------ --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CPJ Chateau Communities, Inc. $ 185.7 $ 9.8 5.3% $ 33.5 18.1% $ 114.0 61.4%
MHC Manufactured Home Communities, Inc. 211.6 13.7 6.5 29.1 13.7 124.6 58.9
SUI Sun Communities, Inc. 130.5 6.2 4.8 25.0 19.1 88.4 67.8
UMH United Mobile Homes, Inc. 26.9 1.5 5.6 4.4 16.4 7.8 29.1
AIC Asset Investors Corporation 18.8 1.5 7.7 2.2 11.8 10.5 55.8
- ------------------------------------------------------------------------------------------------------------------------------------
Median: 5.6% 16.4% 58.9%
Minimum: 4.8 11.8 29.1
Mean: 6.0 15.8 54.6
Maximum: 7.7 19.1 67.8
- ------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED for PARTNERSHIPS (20% Discount)
- ------------------------------------------------------------------------------------------------------------------------------------
Median: /(1)/
Minimum: /(1)/
Mean: /(1)/
Maximum: /(1)/
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Long-Term Trailing Trailing
Total Debt / 12 Months 3 Months
Market Cap / Total Total Total Total
Ticker EBITDA Assets Assets Return Return
- -------- -------------- -------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
CPJ 10.0x $ 984.0 46.9x (10.10)% (5.95)%
MHC 9.7 1,192.9 55.2 2.95 (1.38)
SUI 10.3 897.6 43.2 (3.85) (2.22)
UMH 11.4 55.8 54.9 (9.62) (1.60)
AIC 11.6 159.6 34.1* (1.62) (5.85)
- ------------------------------------------------------------------------------------------------------------------------------------
Median: 10.3x 50.9x (3.85)% (2.22)%
Minimum: 9.7 43.2 (10.10) (5.95)
Mean: 10.6 50.1 (4.45) (3.40)
Maximum: 11.6 55.2 2.95 (1.38)
- ------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED for PARTNERSHIPS (20% Discount)
- ------------------------------------------------------------------------------------------------------------------------------------
Median: /(1)/ 8.2x
Minimum: /(1)/ 7.8
Mean: /(1)/ 8.5
Maximum: /(1)/ 9.3
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
N/A - Information not available, TTM - Trailing Twelve Months.
(1) Adjusted for Partnerships with a discount of 20.0%
31
<PAGE>
Addendum
================================================================================
Comparable Company Price Volume Graphs
Chateau Communities, Inc.
LTM Stock Price & Volume Analysis
[Graph Appears Here]
Date Stock Price Volume
---- ----------- ------
CPJ
2/23/99 $27.63 34.10
2/24/99 27.44 17.60
2/25/99 27.50 14.20
2/26/99 28.19 20.40
3/1/99 28.50 29.40
3/2/99 28.50 64.80
3/3/99 28.50 40.30
3/4/99 27.94 20.80
3/5/99 28.63 28.80
3/8/99 28.88 27.40
3/9/99 29.00 49.00
3/10/99 28.56 48.60
3/11/99 28.50 40.30
3/12/99 28.94 11.10
3/15/99 28.88 20.60
3/16/99 28.50 20.70
3/17/99 28.50 17.90
3/18/99 28.31 19.20
3/19/99 28.19 27.30
3/22/99 28.00 48.50
3/23/99 28.25 40.10
3/24/99 27.94 23.50
3/25/99 28.13 25.80
3/26/99 27.88 64.70
3/29/99 27.81 38.80
3/30/99 27.50 22.60
3/31/99 27.50 38.30
4/1/99 26.63 80.10
4/5/99 27.06 49.00
4/6/99 26.63 18.90
4/7/99 26.69 18.00
4/8/99 27.19 24.70
4/9/99 27.38 21.70
4/12/99 27.88 42.10
4/13/99 27.06 41.50
4/14/99 26.88 101.30
4/15/99 27.44 13.40
4/16/99 28.13 40.20
4/19/99 28.88 87.10
4/20/99 28.81 40.60
4/21/99 28.88 10.00
4/22/99 29.00 15.00
4/23/99 28.88 13.60
4/26/99 28.88 28.00
4/27/99 28.88 51.60
4/28/99 28.94 106.20
4/29/99 28.63 88.40
4/30/99 29.06 26.10
5/3/99 28.81 37.60
5/4/99 28.94 24.00
5/5/99 29.25 58.80
5/6/99 29.13 47.40
5/7/99 29.19 60.60
5/10/99 29.50 63.40
5/11/99 29.63 73.10
5/12/99 29.44 29.00
5/13/99 29.94 25.80
5/14/99 29.75 29.00
5/17/99 29.63 17.80
5/18/99 29.63 20.10
5/19/99 29.88 22.30
5/20/99 29.88 45.50
5/21/99 30.31 29.00
5/24/99 30.25 32.80
5/25/99 30.19 33.50
5/26/99 30.00 22.50
5/27/99 29.81 12.80
5/28/99 30.19 29.50
6/1/99 30.13 15.70
6/2/99 29.81 44.70
6/3/99 29.81 11.70
6/4/99 29.81 13.60
6/7/99 29.88 15.70
6/8/99 29.84 25.70
6/9/99 30.00 28.50
6/10/99 30.13 15.30
6/11/99 30.13 11.00
6/14/99 30.06 24.90
6/15/99 29.94 15.80
6/16/99 30.38 57.90
Date Stock Price Volume
---- ----------- ------
6/17/99 $30.50 26.00
6/18/99 30.56 93.10
6/21/99 30.88 40.80
6/22/99 30.69 10.30
6/23/99 30.50 22.80
6/24/99 30.44 14.40
6/25/99 30.00 31.90
6/28/99 29.81 32.70
6/29/99 29.88 16.30
6/30/99 29.94 48.00
7/1/99 30.19 19.60
7/2/99 30.00 30.80
7/6/99 29.94 22.10
7/7/99 29.88 27.50
7/8/99 29.81 55.70
7/9/99 30.19 61.50
7/12/99 29.25 15.80
7/13/99 29.31 17.30
7/14/99 29.50 15.00
7/15/99 29.25 44.70
7/16/99 29.13 35.40
7/19/99 29.25 11.30
7/20/99 29.13 25.20
7/21/99 29.38 12.20
7/22/99 29.19 17.10
7/23/99 28.75 27.30
7/26/99 28.38 14.40
7/27/99 28.81 11.50
7/28/99 28.81 9.90
7/29/99 28.31 15.80
7/30/99 28.13 16.40
8/2/99 29.06 21.90
8/3/99 29.13 31.10
8/4/99 28.88 58.00
8/5/99 28.19 19.30
8/6/99 27.75 32.90
8/9/99 28.06 14.60
8/10/99 28.19 30.80
8/11/99 27.94 26.20
8/12/99 28.13 15.80
8/13/99 28.38 14.90
8/16/99 28.38 15.70
8/17/99 28.63 18.00
8/18/99 28.88 22.30
8/19/99 28.88 17.40
8/20/99 28.94 14.90
8/23/99 29.06 17.20
8/24/99 29.06 19.00
8/25/99 29.00 26.10
8/26/99 29.00 12.60
8/27/99 29.25 14.20
8/30/99 29.06 24.40
8/31/99 29.13 37.40
9/1/99 29.00 11.50
9/2/99 28.88 17.30
9/3/99 29.25 10.80
9/7/99 29.19 21.30
9/8/99 28.94 22.40
9/9/99 28.69 7.10
9/10/99 28.75 20.00
9/13/99 28.50 11.70
9/14/99 28.25 7.00
9/15/99 28.00 18.40
9/16/99 27.56 15.80
9/17/99 28.00 64.70
9/20/99 27.63 29.40
9/21/99 27.50 16.50
9/22/99 27.19 16.20
9/23/99 27.44 47.90
9/24/99 27.38 19.70
9/27/99 27.25 68.70
9/28/99 26.63 66.70
9/29/99 26.63 11.00
9/30/99 26.00 43.50
10/1/99 26.19 16.90
10/4/99 26.38 26.90
10/5/99 26.38 13.00
10/6/99 25.94 36.20
10/7/99 25.88 14.10
10/8/99 25.69 17.00
10/11/99 26.13 16.10
10/12/99 26.00 12.80
10/13/99 25.75 16.90
10/14/99 25.19 39.40
10/15/99 25.25 21.70
10/18/99 25.63 17.70
10/19/99 25.38 26.40
10/20/99 25.19 18.60
10/21/99 25.13 19.60
10/22/99 25.38 34.90
10/25/99 25.44 38.50
10/26/99 25.44 52.40
10/27/99 25.31 14.70
Date Stock Price Volume
---- ----------- ------
10/28/99 $25.19 25.50
10/29/99 25.50 44.80
11/1/99 25.94 60.00
11/2/99 26.31 54.00
11/3/99 26.44 21.70
11/4/99 26.44 26.10
11/5/99 26.31 20.20
11/8/99 26.25 43.40
11/9/99 26.31 63.70
11/10/99 26.31 25.70
11/11/99 26.00 11.20
11/12/99 26.00 14.50
11/15/99 25.88 32.10
11/16/99 26.19 22.00
11/17/99 26.13 23.80
11/18/99 26.06 18.10
11/19/99 26.31 45.90
11/22/99 26.31 13.00
11/23/99 26.31 29.30
11/24/99 25.94 21.10
11/25/99 25.94 21.10
11/26/99 26.00 5.70
11/29/99 25.88 23.70
11/30/99 26.00 23.50
12/1/99 25.94 67.50
12/2/99 26.38 18.80
12/3/99 26.25 31.10
12/6/99 26.19 18.70
12/7/99 26.13 18.00
12/8/99 26.06 19.60
12/9/99 25.94 66.90
12/10/99 25.88 17.20
12/13/99 25.56 47.60
12/14/99 25.50 28.20
12/15/99 25.44 27.90
12/16/99 25.44 80.00
12/17/99 26.25 71.80
12/20/99 26.50 52.10
12/21/99 25.50 94.50
12/22/99 25.13 29.90
12/23/99 25.38 43.10
12/24/99 25.38 43.10
12/27/99 25.31 22.10
12/28/99 25.38 39.30
12/29/99 25.63 22.20
12/30/99 25.88 18.40
12/31/99 25.94 31.20
1/3/00 25.25 30.70
1/4/00 25.38 19.80
1/5/00 25.19 16.10
1/6/00 25.69 46.10
1/7/00 26.25 50.00
1/10/00 26.56 43.40
1/11/00 26.50 33.00
1/12/00 26.31 17.30
1/13/00 26.69 30.10
1/14/00 26.25 77.30
1/17/00 26.25 77.30
1/18/00 27.06 31.10
1/19/00 26.81 37.20
1/20/00 26.88 23.90
1/21/00 26.75 32.70
1/24/00 26.56 29.10
1/25/00 25.81 28.10
1/26/00 26.25 49.80
1/27/00 26.31 96.60
1/28/00 26.25 29.30
1/31/00 26.25 67.10
2/01/00 26.56 29.30
2/02/00 26.44 48.20
2/03/00 26.31 44.30
2/04/00 26.38 23.30
2/07/00 26.31 25.70
2/08/00 26.38 29.70
2/09/00 26.00 47.50
2/10/00 25.38 38.30
2/11/00 24.75 37.70
2/14/00 24.38 46.80
2/15/00 24.56 20.50
2/16/00 24.81 38.80
2/17/00 24.75 23.80
2/18/00 24.38 79.30
2/22/00 24.69 25.90
2/23/00 24.19 58.20
2/24/00 24.19 46.40
2/25/00 24.13 44.90
2/28/00 24.06 25.40
Notes:
Sources include Bloomberg Financial Markets and FactSet Research Systems.
32
<PAGE>
Addendum
================================================================================
Comparable Company Price Volume Graphs
Manufactured Home Communities, Inc.
LTM Stock Price & Volume Analysis
[Graph Appears Here]
MHC
Date Stock Price Volume
---- ----------- ------
2/23/99 $24.06 21.20
2/24/99 23.94 16.50
2/25/99 23.50 25.60
2/26/99 23.25 15.80
3/1/99 23.56 31.80
3/2/99 23.81 34.00
3/3/99 24.13 43.20
3/4/99 23.88 36.00
3/5/99 23.88 29.60
3/8/99 23.63 225.70
3/9/99 23.88 18.50
3/10/99 23.75 22.00
3/11/99 23.63 150.40
3/12/99 23.56 43.90
3/15/99 23.56 67.00
3/16/99 23.44 62.20
3/17/99 23.44 30.40
3/18/99 23.44 159.20
3/19/99 23.44 54.40
3/22/99 22.69 36.60
3/23/99 22.31 40.50
3/24/99 22.56 31.00
3/25/99 22.69 30.00
3/26/99 23.13 102.80
3/29/99 23.31 41.50
3/30/99 23.94 49.20
3/31/99 24.00 155.70
4/1/99 23.63 39.40
4/5/99 23.56 18.40
4/6/99 23.13 30.30
4/7/99 22.81 18.30
4/8/99 22.63 28.50
4/9/99 22.81 46.60
4/12/99 22.69 44.60
4/13/99 22.63 37.30
4/14/99 23.00 154.80
4/15/99 22.94 36.20
4/16/99 24.06 58.50
4/19/99 24.19 49.60
4/20/99 24.00 32.00
4/21/99 24.44 11.80
4/22/99 25.25 60.80
4/23/99 25.56 46.10
4/26/99 25.38 18.40
4/27/99 25.06 18.20
4/28/99 25.75 39.90
4/29/99 25.31 69.90
4/30/99 25.31 11.20
5/3/99 25.50 14.70
5/4/99 26.13 64.70
5/5/99 26.63 23.80
5/6/99 25.94 55.90
5/7/99 25.88 21.60
5/10/99 25.88 119.70
5/11/99 26.19 27.40
5/12/99 26.44 35.00
5/13/99 26.06 60.50
5/14/99 25.63 22.30
5/17/99 25.75 20.10
5/18/99 25.38 26.70
5/19/99 25.69 23.30
5/20/99 26.31 35.90
5/21/99 26.88 29.90
5/24/99 26.50 9.20
5/25/99 26.13 16.80
5/26/99 25.94 16.80
5/27/99 26.00 7.70
5/28/99 25.88 18.60
6/1/99 26.13 23.40
6/2/99 26.13 13.00
6/3/99 25.75 10.00
6/4/99 25.81 7.50
6/7/99 26.13 57.10
6/8/99 26.25 6.90
6/9/99 26.31 9.30
6/10/99 26.13 18.30
6/11/99 25.94 13.60
6/14/99 26.00 34.10
6/15/99 26.19 23.80
6/16/99 26.06 21.80
6/17/99 $26.19 61.20
6/18/99 26.31 47.20
6/21/99 26.25 154.80
6/22/99 26.25 44.30
6/23/99 26.00 21.40
6/24/99 26.06 45.80
6/25/99 25.81 8.90
6/28/99 25.94 59.20
6/29/99 25.88 20.50
6/30/99 26.00 59.00
7/1/99 25.94 26.90
7/2/99 25.88 27.60
7/6/99 25.94 33.70
7/7/99 25.44 14.70
7/8/99 25.38 34.80
7/9/99 25.44 30.20
7/12/99 25.63 4.80
7/13/99 25.69 34.20
7/14/99 25.38 26.20
7/15/99 25.25 97.00
7/16/99 25.00 16.30
7/19/99 25.06 24.10
7/20/99 24.88 16.90
7/21/99 24.50 39.90
7/22/99 23.94 74.90
7/23/99 23.63 100.70
7/26/99 24.13 106.80
7/27/99 24.31 26.60
7/28/99 24.06 22.50
7/29/99 23.88 37.90
7/30/99 24.25 83.10
8/2/99 24.38 33.40
8/3/99 24.75 47.20
8/4/99 24.56 41.80
8/5/99 24.38 218.00
8/6/99 24.06 40.50
8/9/99 23.69 44.20
8/10/99 23.88 93.40
8/11/99 23.94 10.20
8/12/99 23.63 41.20
8/13/99 24.13 48.20
8/16/99 24.06 8.90
8/17/99 24.13 7.50
8/18/99 24.25 10.30
8/19/99 24.38 12.00
8/20/99 24.38 36.90
8/23/99 24.56 64.10
8/24/99 24.38 13.50
8/25/99 24.38 31.00
8/26/99 24.19 88.70
8/27/99 24.13 253.60
8/30/99 24.00 32.30
8/31/99 24.38 84.90
9/1/99 24.00 6.10
9/2/99 23.81 10.70
9/3/99 24.44 11.40
9/7/99 24.25 17.40
9/8/99 24.13 23.50
9/9/99 24.06 5.20
9/10/99 24.06 4.40
9/13/99 24.06 16.50
9/14/99 24.00 2.80
9/15/99 24.00 9.80
9/16/99 24.00 22.20
9/17/99 24.00 18.40
9/20/99 24.00 12.60
9/21/99 23.88 89.10
9/22/99 23.25 32.20
9/23/99 23.25 24.00
9/24/99 23.25 20.60
9/27/99 23.13 10.70
9/28/99 23.13 44.10
9/29/99 23.31 29.60
9/30/99 23.38 650.80
10/1/99 22.88 1,236.20
10/4/99 23.00 28.00
10/5/99 23.00 35.00
10/6/99 23.25 45.00
10/7/99 23.63 37.10
10/8/99 23.25 183.50
10/11/99 23.31 12.20
10/12/99 22.81 67.00
10/13/99 22.75 8.80
10/14/99 22.75 11.20
10/15/99 22.81 18.30
10/18/99 22.75 29.10
10/19/99 22.75 41.30
10/20/99 22.69 7.20
10/21/99 22.88 21.70
10/22/99 23.13 26.60
10/25/99 23.25 46.00
10/26/99 23.13 69.40
10/27/99 23.06 16.70
10/28/99 23.31 22.40
10/29/99 23.31 20.80
11/1/99 23.75 109.20
11/2/99 23.88 132.70
11/3/99 $23.56 254.60
11/4/99 23.75 13.70
11/5/99 23.81 19.30
11/8/99 24.13 18.60
11/9/99 24.00 115.60
11/10/99 24.06 24.00
11/11/99 24.00 9.50
11/12/99 24.19 38.40
11/15/99 24.06 85.10
11/16/99 24.38 23.20
11/17/99 24.13 117.80
11/18/99 24.00 48.60
11/19/99 24.19 25.50
11/22/99 23.94 88.00
11/23/99 23.88 91.10
11/24/99 23.56 161.20
11/25/99 23.56 161.20
11/26/99 23.63 6.80
11/29/99 23.44 66.80
11/30/99 23.69 117.60
12/1/99 23.69 41.10
12/2/99 23.88 48.60
12/3/99 24.13 75.60
12/6/99 24.00 128.60
12/7/99 24.06 296.60
12/8/99 24.06 15.20
12/9/99 24.00 104.50
12/10/99 24.00 66.70
12/13/99 24.00 57.30
12/14/99 23.94 109.10
12/15/99 23.88 128.60
12/16/99 23.75 138.60
12/17/99 24.13 60.30
12/20/99 24.00 48.30
12/21/99 24.13 84.90
12/22/99 24.00 21.50
12/23/99 24.06 8.80
12/24/99 24.06 8.80
12/27/99 24.13 52.10
12/28/99 24.19 22.00
12/29/99 24.25 46.20
12/30/99 24.38 35.50
12/31/99 24.31 23.80
01/3/00 24.13 22.10
01/4/00 24.06 15.50
01/5/00 24.13 14.30
01/6/00 24.38 25.70
01/7/00 24.63 27.30
01/10/00 25.31 35.80
01/11/00 25.38 125.90
01/12/00 25.31 11.10
01/13/00 25.50 20.80
01/14/00 25.50 14.50
01/17/00 25.50 14.50
01/18/00 25.50 20.70
01/19/00 25.63 35.70
01/20/00 25.63 52.70
01/21/00 25.06 70.80
01/24/00 24.63 20.50
01/25/00 24.19 36.80
01/26/00 24.19 28.80
01/27/00 24.06 11.00
01/28/00 24.00 146.80
01/31/00 24.00 188.90
02/1/00 24.13 68.80
02/2/00 24.00 27.50
02/3/00 24.25 152.00
02/4/00 24.19 48.00
02/7/00 24.00 50.30
02/8/00 24.13 20.60
02/9/00 24.00 38.50
02/10/00 24.00 29.10
02/11/00 24.00 56.90
02/14/00 24.19 55.30
02/15/00 24.13 79.10
02/16/00 24.19 70.20
02/17/00 24.13 45.10
02/18/00 23.94 80.40
02/22/00 23.75 52.50
02/23/00 23.44 47.00
02/24/00 23.00 66.10
02/25/00 23.00 65.50
02/28/00 23.06 22.80
Notes:
Sources include Bloomberg Financial Markets and FactSet Research Systems.
33
<PAGE>
Addendum
================================================================================
Comparable Company Price Volume Graphs
Sun Communities, Inc.
LTM Stock Price & Volume Analysis
[Graph Appears Here]
<TABLE>
<CAPTION>
SUI
Date Stock Price Volume
---- ----------- ------
<S> <C> <C>
2/23/99 $32.25 26.20
2/24/99 31.94 13.20
2/25/99 31.56 25.10
2/26/99 31.44 18.50
3/1/99 32.50 18.60
3/2/99 32.56 39.70
3/3/99 32.50 51.30
3/4/99 32.50 30.20
3/5/99 32.25 14.30
3/8/99 32.00 14.50
3/9/99 31.63 22.00
3/10/99 31.81 9.70
3/11/99 31.38 48.80
3/12/99 31.56 25.60
3/15/99 31.50 27.40
3/16/99 31.69 18.60
3/17/99 31.44 70.90
3/18/99 31.38 8.30
3/19/99 31.25 7.40
3/22/99 31.13 8.30
3/23/99 31.06 19.40
3/24/99 31.13 18.60
3/25/99 30.50 31.40
3/26/99 30.63 19.40
3/29/99 31.00 40.50
3/30/99 31.00 21.00
3/31/99 31.75 38.90
4/1/99 31.38 8.90
4/5/99 32.00 23.60
4/6/99 31.63 37.60
4/7/99 31.44 16.80
4/8/99 31.38 37.60
4/9/99 31.56 22.80
4/12/99 31.88 27.20
4/13/99 32.13 19.50
4/14/99 33.38 21.30
4/15/99 32.38 42.00
4/16/99 33.00 40.50
4/19/99 34.13 45.10
4/20/99 34.81 42.70
4/21/99 34.69 13.90
4/22/99 34.75 34.90
4/23/99 35.00 40.90
4/26/99 35.38 24.50
4/27/99 35.50 31.40
4/28/99 35.75 13.50
4/29/99 34.94 52.40
4/30/99 35.00 9.20
5/3/99 35.13 29.60
5/4/99 34.75 76.80
5/5/99 34.44 16.50
5/6/99 34.63 32.00
5/7/99 35.00 21.40
5/10/99 36.25 25.80
5/11/99 36.44 43.20
5/12/99 36.19 24.50
5/13/99 36.25 9.10
5/14/99 35.81 7.50
5/17/99 35.56 5.20
5/18/99 35.69 3.20
5/19/99 35.94 26.00
5/20/99 36.88 22.80
5/21/99 37.00 20.70
5/24/99 36.56 14.40
5/25/99 36.25 17.00
5/26/99 36.13 18.70
5/27/99 36.63 16.60
5/28/99 36.56 19.70
6/1/99 36.50 21.10
6/2/99 36.38 29.80
6/3/99 36.50 18.40
6/4/99 36.69 3.80
6/7/99 36.44 13.30
6/8/99 36.69 13.60
6/9/99 36.88 9.50
6/10/99 36.75 17.30
6/11/99 36.75 22.70
6/14/99 36.44 27.50
6/15/99 $36.50 33.20
6/16/99 36.69 11.90
6/17/99 36.81 20.50
6/18/99 36.06 64.30
6/21/99 35.25 25.20
6/22/99 35.06 11.20
6/23/99 34.69 97.60
6/24/99 35.06 29.10
6/25/99 34.88 7.20
6/28/99 35.06 28.90
6/29/99 35.38 77.70
6/30/99 35.50 21.20
7/1/99 35.94 24.30
7/2/99 35.38 25.30
7/6/99 35.50 39.10
7/7/99 35.69 18.80
7/8/99 35.13 72.80
7/9/99 35.25 51.90
7/12/99 35.50 34.80
7/13/99 35.69 8.60
7/14/99 35.88 18.30
7/15/99 36.25 56.10
7/16/99 35.75 25.10
7/19/99 35.56 16.70
7/20/99 35.69 35.30
7/21/99 35.94 7.00
7/22/99 35.50 167.00
7/23/99 35.06 40.80
7/26/99 35.19 13.10
7/27/99 34.50 107.00
7/28/99 34.63 41.60
7/29/99 33.94 78.10
7/30/99 34.13 39.50
8/2/99 34.06 19.40
8/3/99 34.25 37.10
8/4/99 34.06 24.70
8/5/99 33.94 25.80
8/6/99 34.50 74.60
8/9/99 34.50 21.50
8/10/99 33.75 42.40
8/11/99 33.75 90.80
8/12/99 33.75 34.80
8/13/99 34.13 44.80
8/16/99 34.38 5.10
8/17/99 34.94 20.70
8/18/99 35.00 38.10
8/19/99 35.13 29.00
8/20/99 35.63 31.60
8/23/99 34.94 13.90
8/24/99 34.88 14.90
8/25/99 35.19 9.90
8/26/99 35.31 8.50
8/27/99 35.56 19.70
8/30/99 35.44 19.50
8/31/99 35.75 46.10
9/1/99 35.63 45.00
9/2/99 35.06 29.20
9/3/99 35.44 17.90
9/7/99 35.56 35.30
9/8/99 35.44 19.70
9/9/99 35.56 20.10
9/10/99 35.38 48.40
9/13/99 35.50 12.40
9/14/99 35.00 16.50
9/15/99 34.94 15.00
9/16/99 34.25 8.70
9/17/99 34.56 15.70
9/20/99 34.56 5.20
9/21/99 34.31 6.10
9/22/99 33.50 20.80
9/23/99 33.44 13.20
9/24/99 33.50 4.60
9/27/99 33.38 76.60
9/28/99 33.31 26.90
9/29/99 33.19 4.60
9/30/99 33.06 23.10
10/1/99 32.56 39.30
10/4/99 32.63 17.10
10/5/99 32.75 9.70
10/6/99 32.19 9.50
10/7/99 32.25 34.40
10/8/99 31.94 10.70
10/11/99 32.13 7.60
10/12/99 32.00 11.10
10/13/99 32.00 20.70
10/14/99 32.00 32.60
10/15/99 31.75 6.00
10/18/99 31.69 23.50
10/19/99 31.69 85.90
10/20/99 31.75 63.70
10/21/99 32.25 27.50
10/22/99 31.81 16.30
10/25/99 31.81 26.40
10/26/99 31.75 25.30
10/27/99 31.94 18.30
10/28/99 31.88 55.00
10/29/99 31.88 25.10
11/1/99 $32.44 23.20
11/2/99 32.88 20.00
11/3/99 33.38 72.70
11/4/99 33.06 10.80
11/5/99 33.06 24.20
11/8/99 33.00 20.20
11/9/99 32.94 15.10
11/10/99 32.88 9.00
11/11/99 32.50 9.20
11/12/99 32.19 41.80
11/15/99 31.81 8.10
11/16/99 31.63 13.70
11/17/99 31.63 18.40
11/18/99 31.56 12.00
11/19/99 31.31 24.90
11/22/99 31.00 37.70
11/23/99 30.81 31.90
11/24/99 30.50 33.40
11/25/99 30.50 33.40
11/26/99 30.56 8.30
11/29/99 30.50 18.60
11/30/99 30.38 30.70
12/1/99 30.19 24.80
12/2/99 30.25 20.30
12/3/99 30.25 39.00
12/6/99 30.00 24.90
12/7/99 30.13 85.10
12/8/99 29.88 8.90
12/9/99 30.00 20.90
12/10/99 29.94 39.60
12/13/99 30.06 27.40
12/14/99 30.13 55.20
12/15/99 30.31 81.90
12/16/99 30.00 40.30
12/17/99 31.19 58.40
12/20/99 31.00 23.60
12/21/99 31.19 69.40
12/22/99 31.13 13.60
12/23/99 31.06 13.00
12/24/99 31.06 13.00
12/27/99 31.44 13.60
12/28/99 31.69 62.50
12/29/99 31.94 12.20
12/30/99 32.19 22.00
12/31/99 32.19 23.50
1/3/00 31.81 36.10
1/4/00 31.88 51.30
1/5/00 31.88 19.80
1/6/00 32.25 26.10
1/7/00 32.88 30.50
1/10/00 34.63 65.70
1/11/00 34.13 57.40
1/12/00 33.50 29.20
1/13/00 33.38 27.30
1/14/00 33.63 10.20
1/17/00 33.63 10.20
1/18/00 34.19 26.80
1/19/00 34.94 55.00
1/20/00 34.50 19.30
1/21/00 34.38 25.50
1/24/00 33.38 29.40
1/25/00 32.75 25.80
1/26/00 32.88 15.90
1/27/00 32.25 131.00
1/28/00 31.13 87.90
1/31/00 31.00 130.20
2/1/00 31.31 96.30
2/2/00 31.50 53.90
2/3/00 31.06 338.40
2/4/00 30.88 28.60
2/7/00 30.94 35.00
2/8/00 31.38 47.30
2/9/00 31.13 19.50
2/10/00 30.81 15.80
2/11/00 30.69 23.60
2/14/00 30.25 50.40
2/15/00 30.50 24.40
2/16/00 30.50 12.60
2/17/00 30.56 41.50
2/18/00 30.31 10.70
2/22/00 30.38 68.40
2/23/00 30.00 70.90
2/24/00 29.81 57.40
2/25/00 29.75 15.70
2/28/00 29.75 83.50
</TABLE>
Notes:
Sources include Bloomberg Financial Markets and Factset Research Systems.
34
<PAGE>
Addendum
================================================================================
Comparable Company Price Volume Graphs
United Mobile Homes, Inc.
LTM Stock Price & Volume Analysis
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
UMH
Date Stock Price Volume
---- ----------- ------
<S> <C> <C>
2/23/99 $9.69 6.40
2/24/99 0.00 2.60
2/25/99 9.75 10.20
2/26/99 9.88 2.10
3/1/99 9.63 11.70
3/2/99 9.69 0.30
3/3/99 9.75 4.50
3/4/99 9.81 1.70
3/5/99 9.75 2.20
3/8/99 9.88 4.00
3/9/99 9.56 20.30
3/10/99 9.63 3.40
3/11/99 9.69 9.10
3/12/99 9.56 3.60
3/15/99 9.69 7.00
3/16/99 9.75 9.30
3/17/99 9.50 3.80
3/18/99 9.44 10.20
3/19/99 9.63 2.90
3/22/99 9.44 5.10
3/23/99 9.44 2.00
3/24/99 9.38 1.20
3/25/99 9.44 4.70
3/26/99 9.38 3.00
3/29/99 9.31 1.30
3/30/99 9.25 2.70
3/31/99 9.19 1.50
4/1/99 9.19 4.10
4/5/99 9.06 22.70
4/6/99 9.00 16.40
4/7/99 8.69 10.30
4/8/99 8.69 6.50
4/9/99 8.56 5.20
4/12/99 8.25 22.30
4/13/99 8.69 7.60
4/14/99 9.00 15.10
4/15/99 9.13 15.70
4/16/99 9.00 33.70
4/19/99 9.00 30.20
4/20/99 9.50 12.50
4/21/99 9.56 1.50
4/22/99 9.19 4.30
4/23/99 9.38 8.00
4/26/99 9.63 16.40
4/27/99 9.38 6.50
4/28/99 9.38 6.60
4/29/99 9.44 12.80
4/30/99 9.50 1.10
5/3/99 9.25 4.80
5/4/99 9.25 1.20
5/5/99 9.19 5.40
5/6/99 9.25 2.00
5/7/99 9.63 8.90
5/10/99 9.88 16.20
5/11/99 9.75 6.40
5/12/99 9.69 2.60
5/13/99 9.69 5.50
5/14/99 9.56 12.10
5/17/99 9.69 0.10
5/18/99 9.38 5.10
5/19/99 9.44 4.20
5/20/99 9.50 13.00
5/21/99 9.38 0.50
5/24/99 9.25 1.80
5/25/99 9.25 2.00
5/26/99 9.50 0.70
5/27/99 9.25 1.80
5/28/99 9.38 0.40
6/1/99 9.50 3.90
6/2/99 9.38 0.60
6/3/99 9.31 2.20
6/4/99 9.50 4.40
6/7/99 9.44 4.70
6/8/99 9.50 1.50
6/9/99 9.50 -
6/10/99 9.38 5.50
6/11/99 9.63 1.10
6/14/99 9.63 0.90
6/15/99 9.63 1.40
6/16/99 9.75 5.00
6/17/99 9.94 5.00
6/18/99 9.88 0.30
6/21/99 9.75 10.50
6/22/99 9.88 0.40
6/23/99 9.44 8.40
6/24/99 9.50 13.60
6/25/99 9.50 9.60
6/28/99 9.38 17.80
6/29/99 9.31 2.20
6/30/99 9.44 0.10
7/1/99 9.38 0.30
7/2/99 9.44 -
7/6/99 9.38 1.10
7/7/99 9.50 10.30
7/8/99 9.31 1.80
7/9/99 9.25 8.00
7/12/99 9.25 5.50
7/13/99 9.25 10.70
7/14/99 9.38 1.00
7/15/99 9.31 -
7/16/99 9.38 4.10
7/19/99 9.25 1.80
7/20/99 9.38 1.00
7/21/99 9.25 4.10
7/22/99 9.25 4.20
7/23/99 9.13 -
7/26/99 9.00 5.90
7/27/99 8.88 11.10
7/28/99 9.00 1.30
7/29/99 8.88 3.90
7/30/99 9.19 1.60
8/2/99 8.88 7.50
8/3/99 9.00 0.20
8/4/99 9.13 8.40
8/5/99 9.06 0.40
8/6/99 9.13 0.70
8/9/99 8.88 5.00
8/10/99 8.63 11.80
8/11/99 9.00 12.30
8/12/99 8.88 0.20
8/13/99 8.94 2.00
8/16/99 9.19 9.30
8/17/99 9.00 3.80
8/18/99 8.88 2.30
8/19/99 9.13 17.20
8/20/99 9.00 20.00
8/23/99 9.25 6.30
8/24/99 9.38 7.50
8/25/99 9.31 1.40
8/26/99 9.13 2.70
8/27/99 9.19 0.80
8/30/99 9.13 0.10
8/31/99 9.13 1.60
9/1/99 9.06 2.00
9/2/99 9.06 8.40
9/3/99 9.19 -
9/7/99 9.00 11.00
9/8/99 8.94 15.10
9/9/99 8.94 -
9/10/99 9.38 3.40
9/13/99 9.13 5.90
9/14/99 9.13 3.80
9/15/99 9.25 1.70
9/16/99 9.00 7.40
9/17/99 9.13 7.90
9/20/99 9.13 5.40
9/21/99 8.94 4.40
9/22/99 8.88 1.40
9/23/99 9.00 2.50
9/24/99 9.00 1.60
9/27/99 8.81 3.40
9/28/99 8.81 4.70
9/29/99 8.94 6.40
9/30/99 8.94 5.60
10/1/99 8.94 11.80
10/4/99 9.00 0.50
10/5/99 9.00 5.80
10/6/99 8.88 1.00
10/7/99 8.88 0.20
10/8/99 8.94 7.80
10/11/99 9.00 -
10/12/99 8.88 3.70
10/13/99 8.88 2.40
10/14/99 8.75 8.10
10/15/99 8.75 3.50
10/18/99 8.63 9.00
10/19/99 8.88 15.30
10/20/99 8.88 2.50
10/21/99 8.88 3.50
10/22/99 8.75 0.40
10/25/99 8.63 1.30
10/26/99 8.69 0.60
10/27/99 8.94 18.60
10/28/99 8.88 -
10/29/99 8.88 2.70
11/1/99 8.88 11.20
11/02/1999 8.75 1.00
11/03/1999 8.88 4.50
11/04/1999 9.00 0.30
11/05/1999 8.88 0.40
11/08/1999 8.94 2.20
11/09/1999 9.00 1.90
11/10/1999 8.63 16.50
11/11/1999 8.63 3.90
11/12/1999 8.63 1.30
11/15/1999 8.50 2.10
11/16/1999 8.38 13.50
11/17/1999 8.38 2.70
11/18/1999 8.69 3.20
11/19/1999 8.56 1.10
11/22/1999 8.38 4.80
11/23/1999 8.44 12.50
11/24/1999 8.31 2.70
11/25/1999 8.31 2.70
11/26/1999 8.38 2.50
11/29/1999 8.31 24.30
11/30/1999 8.38 12.20
12/01/1999 8.13 2.60
12/02/1999 8.06 20.60
12/03/1999 8.13 4.00
12/06/1999 8.25 1.80
12/07/1999 8.31 12.20
12/08/1999 8.31 2.10
12/09/1999 8.50 1.00
12/10/1999 8.19 11.10
12/13/1999 8.13 7.90
12/14/1999 8.25 15.40
12/15/1999 8.13 11.10
12/16/1999 8.00 12.70
12/17/1999 8.13 10.90
12/20/1999 8.13 2.40
12/21/1999 8.00 8.70
12/22/1999 8.19 5.00
12/23/1999 8.06 1.00
12/24/1999 8.06 1.00
12/27/1999 8.00 44.50
12/28/1999 8.00 0.20
12/29/1999 8.13 8.90
12/30/1999 8.06 5.00
12/31/1999 8.25 6.70
01/03/2000 8.31 3.20
01/04/2000 8.19 1.10
01/05/2000 8.19 1.20
01/06/2000 8.38 5.20
01/07/2000 8.31 5.20
01/10/2000 8.44 4.70
01/11/2000 8.88 12.10
01/12/2000 8.88 0.70
01/13/2000 8.88 0.20
01/14/2000 8.69 1.60
01/17/2000 8.69 1.60
01/18/2000 8.56 4.40
01/19/2000 8.75 4.00
01/20/2000 8.88 2.90
01/21/2000 8.75 5.60
01/24/2000 8.75 4.00
01/25/2000 8.63 2.50
01/26/2000 8.81 2.40
01/27/2000 8.56 4.20
01/28/2000 8.50 1.20
01/31/2000 8.38 1.00
02/01/2000 8.38 1.20
02/02/2000 8.25 0.50
02/03/2000 8.50 0.60
02/04/2000 8.56 2.50
02/07/2000 8.50 2.00
02/08/2000 8.56 2.70
02/09/2000 8.63 1.70
02/10/2000 8.69 3.70
02/11/2000 8.38 1.70
02/14/2000 8.50 0.30
02/15/2000 8.38 1.00
02/16/2000 8.38 0.70
02/17/2000 8.38 1.20
02/18/2000 8.44 1.20
02/22/2000 8.38 0.20
02/23/2000 8.31 0.70
02/24/2000 8.31 1.00
02/25/2000 8.00 11.20
02/28/2000 8.00 1.10
</TABLE>
35
<PAGE>
Addendum
================================================================================
Comparable Company Price Volume Graphs
Asset Investors Corporation, Inc.
LTM Stock Price & Volume Analysis
[Graph Appears Here]
<TABLE>
<CAPTION>
AIC
Date Stock Price Volume
---- ----------- ------
<S> <C> <C>
2/23/99 $13.19 3.30
2/24/99 13.00 12.50
2/25/99 13.00 64.30
2/26/99 13.00 8.30
3/1/99 13.00 12.80
3/2/99 12.88 7.70
3/3/99 13.38 30.20
3/4/99 13.25 19.40
3/5/99 13.38 17.30
3/8/99 13.31 8.70
3/9/99 13.38 12.60
3/10/99 13.31 4.80
3/11/99 13.31 10.80
3/12/99 13.19 7.80
3/15/99 13.25 9.10
3/16/99 13.13 10.70
3/17/99 13.06 6.50
3/18/99 13.13 7.70
3/19/99 12.88 3.60
3/22/99 12.94 7.10
3/23/99 12.75 13.10
3/24/99 12.44 8.20
3/25/99 12.44 15.30
3/26/99 12.44 11.60
3/29/99 12.19 20.00
3/30/99 12.13 9.90
3/31/99 12.00 39.20
4/1/99 12.06 7.00
4/5/99 12.38 46.70
4/6/99 12.06 10.20
4/7/99 12.25 11.70
4/8/99 12.50 24.70
4/9/99 12.63 13.90
4/12/99 12.63 33.30
4/13/99 12.63 6.30
4/14/99 12.94 17.50
4/15/99 12.88 19.40
4/16/99 12.94 14.50
4/19/99 13.13 30.00
4/20/99 13.06 17.80
4/21/99 13.63 27.60
4/22/99 14.25 64.40
4/23/99 14.69 41.10
4/26/99 15.00 65.70
4/27/99 15.00 26.10
4/28/99 15.00 46.30
4/29/99 14.50 24.00
4/30/99 14.44 8.60
5/3/99 14.50 11.30
5/4/99 14.75 14.40
5/5/99 14.69 5.10
5/6/99 14.81 14.30
5/7/99 14.81 16.50
5/10/99 14.81 7.90
5/11/99 15.31 26.40
5/12/99 15.31 12.80
5/13/99 15.13 9.10
5/14/99 15.00 8.90
5/17/99 15.00 8.30
5/18/99 15.00 5.20
5/19/99 14.88 58.80
5/20/99 14.94 17.60
5/21/99 14.81 7.40
5/24/99 14.75 7.80
5/25/99 14.63 7.60
5/26/99 14.69 6.90
5/27/99 14.88 7.60
5/28/99 14.88 7.20
6/1/99 14.69 15.80
6/2/99 14.63 11.80
6/3/99 14.44 8.10
6/4/99 14.44 4.70
6/7/99 14.75 11.40
6/8/99 14.69 8.30
6/9/99 14.75 7.80
6/10/99 14.50 10.50
6/11/99 14.50 8.20
6/14/99 14.25 3.30
6/15/99 14.38 4.60
6/16/99 14.63 3.40
6/17/99 14.94 11.00
6/18/99 14.81 5.20
6/21/99 14.94 9.70
6/22/99 14.94 2.50
6/23/99 15.13 14.60
6/24/99 15.06 10.90
6/25/99 14.88 5.10
6/28/99 15.00 41.30
6/29/99 15.00 34.80
6/30/99 14.94 4.90
7/1/99 14.69 3.10
7/2/99 14.94 3.20
7/6/99 14.63 1.50
7/7/99 14.38 7.00
7/8/99 14.31 1.30
7/9/99 14.50 1.70
7/12/99 14.38 14.70
7/13/99 14.06 38.50
7/14/99 14.06 22.70
7/15/99 14.44 8.30
7/16/99 14.38 3.90
7/19/99 14.25 10.60
7/20/99 14.13 3.10
7/21/99 14.00 12.90
7/22/99 14.06 4.10
7/23/99 14.06 2.40
7/26/99 14.13 3.00
7/27/99 14.44 22.90
7/28/99 14.00 11.00
7/29/99 14.06 1.40
7/30/99 14.06 6.60
8/2/99 14.13 0.90
8/3/99 14.13 3.60
8/4/99 14.19 8.30
8/5/99 14.06 12.80
8/6/99 14.00 11.00
8/9/99 13.81 3.20
8/10/99 13.75 23.20
8/11/99 13.69 8.70
8/12/99 13.69 3.30
8/13/99 13.63 1.20
8/16/99 13.63 2.20
8/17/99 13.69 2.30
8/18/99 13.69 4.10
8/19/99 13.56 2.60
8/20/99 13.75 16.90
8/23/99 13.69 2.00
8/24/99 13.75 7.90
8/25/99 13.69 7.90
8/26/99 13.63 11.30
8/27/99 13.50 20.10
8/30/99 13.50 13.90
8/31/99 13.63 5.10
9/1/99 13.44 4.70
9/2/99 13.69 20.20
9/3/99 13.63 1.40
9/7/99 13.63 11.10
9/8/99 13.63 13.70
9/9/99 13.63 2.60
9/10/99 13.56 25.90
9/13/99 13.44 5.70
9/14/99 13.25 7.30
9/15/99 13.00 3.60
9/16/99 13.00 5.00
9/17/99 13.00 6.30
9/20/99 12.88 4.50
9/21/99 12.94 10.70
9/22/99 12.94 4.90
9/23/99 12.88 13.60
9/24/99 12.81 2.60
9/27/99 12.50 3.90
9/28/99 12.75 44.40
9/29/99 12.88 5.40
9/30/99 13.31 11.60
10/1/99 13.13 5.50
10/4/99 13.31 3.60
10/5/99 13.06 1.90
10/6/99 13.00 2.60
10/7/99 12.88 6.80
10/8/99 12.75 3.50
10/11/99 12.88 2.90
10/12/99 12.94 2.80
10/13/99 12.69 3.30
10/14/99 12.75 2.90
10/15/99 12.81 12.80
10/18/99 12.81 4.30
10/19/99 12.88 13.00
10/20/99 13.00 15.60
10/21/99 13.00 14.80
10/22/99 12.81 5.30
10/25/99 12.75 11.10
10/26/99 12.69 1.20
10/27/99 12.75 16.20
10/28/99 12.84 -
10/29/99 12.63 17.90
11/1/99 12.81 0.80
11/2/99 12.88 16.30
11/3/99 12.63 1.50
11/4/99 12.63 2.30
11/5/09 12.44 0.50
11/8/99 12.44 3.10
11/9/99 12.44 7.70
11/10/99 12.50 16.20
11/11/99 12.56 5.90
11/12/99 12.63 6.10
11/15/99 12.75 11.40
11/16/99 12.75 4.30
11/17/99 12.75 9.00
11/18/99 12.75 15.00
11/19/99 12.88 19.40
11/22/99 12.81 5.50
11/23/99 12.81 6.80
11/24/99 12.81 21.30
11/25/99 12.81 21.30
11/26/99 12.81 10.60
11/29/99 12.88 3.20
11/30/99 13.06 20.10
12/1/99 12.94 7.20
12/2/99 12.75 2.40
12/3/99 12.69 3.40
12/6/99 12.56 3.70
12/7/99 12.56 24.60
12/8/99 12.50 19.50
12/9/99 12.63 46.70
12/10/99 12.50 10.70
12/13/99 12.19 22.70
12/14/99 12.19 3.70
12/15/99 12.25 9.10
12/16/99 12.00 4.10
12/17/99 11.88 6.10
12/20/99 11.50 24.00
12/21/99 11.44 33.10
12/22/99 11.50 19.60
12/23/99 11.44 16.50
12/24/99 11.44 16.50
12/27/99 11.06 9.70
12/28/99 11.13 64.90
12/29/99 11.13 16.00
12/30/99 11.13 20.60
12/31/99 11.13 14.70
1/3/00 11.13 7.60
1//00 11.13 2.70
1/5/00 11.25 6.20
1/6/00 11.38 4.90
1/7/00 11.38 6.00
1/10/00 11.63 8.70
1/11/00 11.75 6.30
1/12/00 11.63 5.30
1/13/00 11.75 5.30
1/14/00 11.88 10.40
1/17/00 11.88 10.40
1/18/00 11.75 8.30
1/19/00 11.88 10.90
1/20/00 12.00 34.70
1/21/00 12.00 23.80
1/24/00 12.06 4.70
1/25/00 11.94 5.10
1/26/00 11.81 15.00
1/27/00 11.94 9.70
1/28/00 11.94 3.30
1/31/00 12.00 1.50
2/1/00 12.00 5.80
2/2/00 11.88 8.70
2/3/00 11.94 5.20
2/4/00 11.88 6.00
2/7/00 12.00 12.00
2/8/00 12.06 12.40
2/9/00 12.00 10.80
2/10/00 11.94 4.80
2/11/00 11.88 14.40
2/14/00 11.69 6.50
2/15/00 11.69 1.10
2/16/00 12.00 3.50
2/17/00 12.00 11.00
2/18/00 11.94 2.20
2/22/00 11.88 6.70
2/23/00 11.81 2.20
2/24/00 11.75 77.20
2/25/00 11.88 5.00
2/28/00 11.94 7.20
</TABLE>
36
<PAGE>
Addendum
================================================================================
Comparable Company Profiles
Chateau Communities, Inc.
- --------------------------------------------------------------------------------
Company Description
- --------------------------------------------------------------------------------
Chateau Communities is a self-administered and self-managed real estate
investment trust (REIT) that owns and operates more than 160 manufactured-home
communities with more than 50,000 homesites; it also owns 1,359 sites for
recreational vehicles and for other uses. More than 90% of its sites are
occupied. Additionally, Chateau Communities owns three retail home sales centers
and fee-manages more than 35 manufactured-home communities with about 8,500
homesites. Chateau Communities, which has properties in more than 30 states, is
one of the largest owner / managers of manufactured home communities in the
United States based both on the number of communities and the number of
residential homesites owned.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Trading Data (000's)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ticker CPJ Percentage over 12 Month Low 0.5%
Stock Price (2/28/00) $ 24.06 Indicated Annual Dividend $ 1.94
12 Month High $ 31.00 Payout Ratio 82.9%
12 Month Low $ 23.94 Common Yield 8.1%
Trail. 12 month return (10.1)% Equity Market Cap. $ 683,065
Shares Outstanding 28,387 Total Long-Term Debt 461,726
OP Units Outstanding 3,521 Total Market Cap. $1,144,791
2000 Proj. FFO Per Share $ 2.66 Total Debt / Tot. Mkt. Cap. 40.3%
2001 Proj. FFO Per Share $ 2.87 Debt Ratings N/A
1999 Price/FFO 9.0 x IPO Date Nov-93
FFO Yield 11.1 %
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Executive Officers and Directors
- --------------------------------------------------------------------------------
Name Age Position
---- --- --------
Gary P. McDaniel 53 Chief Executive Officer
C.G. Kellogg 55 President
Tamara D. Fischer 43 Chief Financial Officer, Exec. V.P.
Rees F. Davis, Jr. 40 Executive Vice President - Acquisitions
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Lease Rollover and Debt Maturities
- ------------------------------------------------------------------------------------------------------------------------------------
1999 2000 2001 2002 2003 Thereafter
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $21M $164M $0M $1M $70M $118M
Size Outstanding Interest Rate
----------------- ----------- -------------
Line of Credit $100M $37M Libor + 80 basis points
Maturity Date 2001
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Financial Summary (000's)
- --------------------------------------------------------------------------------
As of As of
Balance Sheet: September 30, 1999 Dec. 31, 1998
------------------ -------------
Net Real Estate $ 855,644 $ 875,249
Total Assets 983,981 959,194
Total Long-Term Debt 461,726 427,778
Total Stockholders' Equity 357,508 367,935
TTM 12 Mos. Ended
Income Statement: September 30, 1999 Dec. 31, 1998
------------------ -------------
Total Revenue $ 185,662 $ 173,130
Interest Expense 31,768 31,287
G&A Expense 9,762 8,354
Net Income 33,532 26,801
FFO 75,967 69,767
FFO Per Share 2.34 2.25
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Recent News
- --------------------------------------------------------------------------------
2/00 CPJ sold $100 million, 5-yr, 8.5% notes as $75 million of its
outstanding notes come due.
10/99 CPJ announces FFO / share increases in third quarter of 10.7% over 1998.
Total revenues were $48.1 million.
1/99 CPJ announces 1999 management changes; James B. Grange, Chief Operating
Officer decided not to extend his employment agreement.
3/98 CPJ acquired a six-community portfolio, including 1,521 existing
homesites and 536 expansion homesites.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Insider Ownership (000's)
- --------------------------------------------------------------------------------
Name Number of Shares % of Total
- ---- ---------------- ----------
John A. Boll 3,577 12.7%
Gary P. McDaniel 480 1.7
C.G. Kellogg 355 1.3
Tamara D. Fischer 158 0.6
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
Analyst Recommendations
- ---------------------------------------------------------------------------------------
Firm Name: Analyst: Recommendation: Date:
- ------------------------ -------------------- ----------------- ---------------
<S> <C> <C> <C>
Salomon Smith Barney Jonathan Litt Outperform 02/17/00
Raymond James Financial Paul D. Puryear Buy 02/11/00
CIBC World Markets Inc. Jeffrey Olson Buy 02/09/00
Southwest Securities R. Christopher Case Accumulate 01/12/00
Merrill Lynch & Co. Eric Hemel Near-term Accum. 10/27/99
A.G. Edwards & Sons Arthur L. Havener Buy 10/18/99
- -----------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
37
<PAGE>
Addendum
================================================================================
Comparable Company Profiles
Manufactured Home Communities, Inc.
Manufactured Home Communities is a real estate investment trust (REIT) that owns
and operates manufactured housing communities with 53,391 residential sites. The
REIT leases developed sites to owners of manufactured homes, which are produced
off-site and then transported to more than 120 communities in 24 states. Florida
properties account for about one-third of revenues. Its leases are generally
annual or month-to-month. Manufactured Home Communities' properties are similar
to residential subdivisions, with centralized entrances, gutters, curbs, and
paved streets. In addition, they offer such amenities as pools, spas,
clubhouses, golf courses, exercise rooms, and tennis courts.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Trading Data (000's)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ticker MHC Percentage over 12 Month Low 5.7%
Stock Price (2/28/00) $ 23.06 Indicated Annual Dividend $ 1.55
12 Month High $ 27.00 Payout Ratio 73.1%
12 Month Low $ 21.81 Common Yield 6.7%
Trail. 12 month return 3.0% Equity Market Cap. $554,933
Shares Outstanding 24,062 Total Long-Term Debt 658,537
OP Units Outstanding 5,765 Total Market Cap. $1,213,470
2000 Proj. FFO Per Share $ 2.35 Total Debt / Tot. Mkt. Cap. 54.3%
2001 Proj. FFO Per Share $ 2.55 Debt Ratings N/A
1999 Price/FFO 9.8x IPO Date Feb-93
FFO Yield 10.2%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Executive Officers and Directors
- --------------------------------------------------------------------------------
Name Age Position
---- --- --------
Samuel Zell 57 Chairman of the Board
Howard Walker 59 President, CEO and Director
Ellen Kelleher 38 Executive Vice President
Thomas P. Henegan 35 Executive Vice President, CFO, Treasurer
Gary W. Powell 58 Executive Vice President - Operations
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Lease Rollover and Debt Maturities
- --------------------------------------------------------------------------------
1999 2000 2001 2002 2003 Thereafter
--------------------------------------------------------------
Lease Rollover 27% 10% 11% 11% 11% 30%
Debt Maturities $11M $4M $82M $253M $20M $381M
Size Outstanding Interest Rate
-------------- ----------------- -------------------
Line of Credit $175M $145M LIBOR + 1.125%
Maturity Date 2000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Summary (000's)
- --------------------------------------------------------------------------------
As of As of
Balance Sheet: September 30, 1999 Dec. 31, 1998
---------------------- -----------------
Net Real Estate $ 1,131,152 $ 1,119,410
Total Assets 1,192,878 1,176,841
Total Long-Term Debt 658,537 750,849
Total Stockholders' Equity 282,003 310,441
TTM 12 Mos. Ended
Income Statement: September 30, 1999 Dec. 31, 1998
---------------------- ------------------
Total Revenue $ 211,628 $ 194.830
Interest Expense 54,345 49,693
G&A Expense 13,747 12,519
Net Income 29,061 28,930
FFO 60,017 56,084
FFO Per Share 2.12 2.01
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Recent News
- --------------------------------------------------------------------------------
10/99 MHC announced that its board of directors has increased its current
stock repurchase program by an additional one million shares.
9/99 MHC announced that its affiliated operating partnership, MHC Operating
Limited Partnership, has completed $125 million private placement of
9.0% Series D Cumulative Redeemable Perpetual Preferred Units to two
institutional investors.
7/99 MHC announced the acquisition of Coquina Crossing, a 748-site in
Florida for $10.3 million. The community has 269 developed sites and
479 expansion sites.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Insider Ownership (000's)
- --------------------------------------------------------------------------------
Name Number of Shares % of Total
- ---- ---------------- ----------
Samuel Zell 2,630 10.9%
Gary W. Powell 286 1.2
Thomas P. Henegan 169 0.7
Howard Walker 158 0.7
David A. Helfand 138 0.6
- --------------------------------------------------------------------------------
Analyst Recommendations
- --------------------------------------------------------------------------------
Firm Name: Analyst: Recommendation: Date:
- ----------------------- ---------------- --------------- --------
Salomon Smith Barney Jonathan Litt Neutral 02/17/00
CIBC World Markets inc. Jeffrey Olson Buy 02/14/00
ING Barings Jamie Handwerker Strong Buy 02/07/00
Robertson Stephens Jay P. Leupp Long-Term Attrac. 01/26/00
Lehman Brothers David Shulman Outperform 01/05/00
Merrill Lynch & Co. Eric Hemel Near-Term Accum. 10/26/99
- --------------------------------------------------------------------------------
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
38
<PAGE>
Addendum
================================================================================
Comparable Company Profiles
Sun Communities, Inc.
- --------------------------------------------------------------------------------
Company Description
- --------------------------------------------------------------------------------
Sun Communities, a self-administered and self-managed real estate investment
trust (REIT), owns, operates, and finances manufactured-housing and RV
communities. Its more than 100 properties have an aggregate of more than 36,300
developed mobile-home sites and about 5,200 RV sites located in 12 Midwestern
and Southeastern states, primarily in Michigan, Florida, and Indiana. All its
communities have on-site property managers and maintenance personnel. Sun
Communities caters to families and retirees by providing a variety of amenities,
including clubhouses, pools, and cable. Its Home Services subsidiary sells new
and used mobile homes to current and prospective residents.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Trading Data (000's)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ticker SUI Percentage over 12 Month Low 0.8%
Stock Price (2/28/00) $29.75 Indicated Annual Dividend $2.04
12 Month High $37.13 Payout Ratio 71.3%
12 Month Low $29.50 Common Yield 6.9%
Trail. 12 month return (3.9)% Equity Market Cap. $518,639
Shares Outstanding 17,433 Total Long-Term Debt 388,192
OP Units Outstanding 4,129 Total Market Cap. $906,831
2000 Proj. FFO Per Share $3.27 Total Debt / Tot. Mkt. Cap. 42.8%
2001 Proj. FFO Per Share $3.57 Debt Ratings BBB/Baa3
1999 Price/FFO 9.1x IPO Date Dec-93
FFO Yield 11.0%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Executive Officers and Directors
- ------------------------------------------------------------------------------------------------------------------------------------
Name Age Position
---- --- --------
<S> <C> <C>
Milton M. Shiffman 70 Chairman of the Board
Gary A. Shiffman 44 Chief Executive Officer, President
Jeffrey P. Jorissen 54 Senior Vice President, Treasurer, CFO
Brian W. Fannon 50 Senior Vice President, COO
Jonathon M. Coleman 43 Senior Vice President - Acquisitions
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Lease Rollover and Debt Maturities
- ------------------------------------------------------------------------------------------------------------------------------------
1999 2000 2001 2002 2003 Thereafter
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $2M $2M $76M $17M $86M $156M
Size Outstanding Interest Rate
----------------- ----------- -------------
Line of Credit $100M $26M LIBOR + .90%
Maturity Date 1999
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Summary (000's)
- ------------------------------------------------------------------------------------------------------------------------------------
As of As of
Balance Sheet: September 30, 1999 Dec. 31, 1998
------------------ -------------
<S> <C> <C>
Net Real Estate $ 770,848 $ 732,212
Total Assets 897,556 821,439
Total Long-Term Debt 388,192 365,164
Total Stockholders' Equity 336,746 340,364
12 Mos. Ended 12 Mos. Ended
Income Statement: September 30, 1999 Dec. 31, 1998
------------------ -------------
<S> <C> <C>
Total Revenue $ 130,451 $ 120,588
Interest Expense 26,465 24,245
G&A Expense 6,204 5,608
Net Income 24,966 26,096
FFO 59,204 53,687
FFO Per Share 2.86 2.74
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Recent News
- --------------------------------------------------------------------------------
1/00 SUI opened two beautiful manufactured home communities in the Austin area.
10/99 SUI reported strong third quarter results; revenue increased to $34
million for the third quarter and $99.5 million for the 9 months ended
September 30, 1999.
10/99 SUI reported two strategic development alliances to broaden and
accelerate the company's program of new community development.
10/99 SUI reported raising $50 million through the issuance of Preferred Stock
and also declared the third quarter dividend.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Insider Ownership (000's)
- ------------------------------------------------------------------------------------------------------------------------------------
Name Number of Shares % of Total
- ---- ---------------- ----------
<S> <C> <C>
Gary A. Shiffman 1,238 7.1%
Milton M. Shiffman 782 4.5
Jeffrey P. Jorissen 275 1.6
Brain W. Fannon 123 less than 1.0
Jonathon M. Coleman 65 less than 1.0
Ted J. Simon 7 less than 1.0
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Analyst Recommendations
- ------------------------------------------------------------------------------------------------------------------------------------
Firm Name: Analyst: Recommendation: Date:
- ---------------------------- ------------------- ----------------------- ---------------
<S> <C> <C> <C>
CIBC World Markets Inc. Jeffrey Olson Buy 02/23/00
Friedman, Billings & Ramsay Matthew Dembski Accumulate 02/23/00
Lehman Brothers David Shulman Neutral 02/23/00
Salomon Smith Barney Jonathan Litt Outperform 02/17/00
A.G. Edwards & Sons Inc. Arthur L. Havener Buy 01/14/00
Merrill Lynch & Co. Eric Hemel Near-Term Accum. 10/21/99
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
Addendum
================================================================================
Comparable Company Profiles
United Mobile Homes, Inc.
- --------------------------------------------------------------------------------
Company Description
- --------------------------------------------------------------------------------
United Mobile Homes is a real estate investment trust (REIT) that owns and
manages nearly 25 mobile-home communities with more than 5,600 spaces. Its
communities are located in New Jersey, New York, Ohio, Pennsylvania, and
Tennessee. The company leases manufactured-home spaces to homeowners on a
monthly basis; it leases homes to other residents. Some of its communities offer
swimming pools, tennis courts, and playgrounds. Municipal water and sewer
services are available at some locations; other locations provide services
on-site. Occupancy typically remains around 90% once a community is filled. Most
of the company's homes are sold on-site to new owners, rather than moved.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Trading Data (000's)
- --------------------------------------------------------------------------------
Ticker UMH Percentage over 12 Month Low 1.6%
Stock Price (2/28/00) $ 8.00 Indicated Annual Dividend $ 0.75
12 Month High $10.13 Payout Ratio 89.3%
12 Month Low $ 7.88 Common Yield 9.4%
Trail. 12 month return (9.6)% Equity Market Cap. $58,167
Shares Outstanding 7,271 Total Long-Term Debt 30,649
OP Units Outstanding - Total Market Cap. $88,816
2000 Proj. FFO Per Share N/A Total Debt / Tot. Mkt. Cap. 34.5%
2001 Proj. FFO Per Share N/A Debt Ratings N/A
1999 Price/FFO N/A x IPO Date Jan-85
FFO Yield N/A %
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Executive Officers and Directors
- --------------------------------------------------------------------------------
Name Age Position
---- --- --------
Eugene W. Landy 65 Chairman of the Board
Samuel A. Landy 38 President
Richard H. Molke 72 Director, Vice President
Robert G. Sampson 73 Director
Anna T. Chew 40 Vice President
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Lease Rollover and Debt Maturities
- --------------------------------------------------------------------------------
1999 2000 2001 2002 2003 Thereafter
--------------------------------------------------------
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $1M $15M $0M $0M $6M N/A
Size Outstanding Interest Rate
------------ ----------- -------------
Line of Credit $1M $0M prime + .5%
Maturity Date 2000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Summary (000's)
- --------------------------------------------------------------------------------
As of As of
Balance Sheet: September 30, 1999 Dec. 31, 1998
------------------ -------------
Net Real Estate $ 39,864 $ 38,896
Total Assets 55,780 50,047
Total Long-Term Debt 30,649 24,780
Total Stockholders' Equity 22,338 23,213
12 Mos. Ended 12 Mos. Ended
Income Statement: September 30, 1999 Dec. 31, 1998
------------------ -------------
Total Revenue $ 26,898 $ 25,964
Interest Expense 1,710 1,506
G&A Expense 1,497 1,387
Net Income 4,402 4,202
FFO 6,831 6,592
FFO Per Share 0.84 0.94
- --------------------------------------------------------------------------------
Recent News
- --------------------------------------------------------------------------------
8/99 UMH reported net income of $2,155,000 for the six months ended June 30,
1999 as compared to $2,118,000 for the six months ended June 30, 1998. FFO
increased from $3,310,000 to $3,376,000 for the same time periods.
3/99 UMH announced that its Board of Directors has authorized the expenditure of
up to $3.5 million to repurchase up to 5% of the company's common stock
over a period of a year.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Insider Ownership (000's)
- --------------------------------------------------------------------------------
Name Number of Shares % of Total
- ---- ---------------- ----------
Eugene W. Landy 875 12.0%
Richard H. Molke 372 5.1
Samuel A. Landy 245 3.4
Robert G. Sampson 131 1.8
- --------------------------------------------------------------------------------
Analyst Recommedations
- --------------------------------------------------------------------------------
Firm Name: Analyst: Recommendation: Date:
- --------- ------- -------------- ----
NONE
- --------------------------------------------------------------------------------
Notes:
Source include Company Source Documents, Bloomberg Financial Markets and FactSet
Research Systems.
40
<PAGE>
Addendum
================================================================================
Comparable Company Profiles
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Asset Investors Corporation
- --------------------------------------------------------------------------------
Company Description
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Asset Investors Corporation (AIC) is a real estate investment trust (REIT) that
owns or has investments in 20 manufactured housing communities and manages five
others in Arizona, Florida, New Jersey, and Pennsylvania. It also owns a
recreational vehicle (RV) park in California and a golf course next to one of
the communities. AIC's manufactured home communities and RV parks contain 6,000
developed and undeveloped home and vehicle sites. The trust owns 27% of
Commercial Assets, a specialized real estate investment trust that owns and
manages debt instruments secured by loans on multifamily housing properties.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Trading Data (000's)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Ticker AIC Percentage over 12 Month Low 11.7 %
Stock Price (2/28/00) $11.94 Indicated Annual Dividend $1.00
12 Month High $15.50 Payout Ratio 73.5 %
12 Month Low $10.69 Common Yield 8.4 %
Trail. 12 month return (1.6)% Equity Market Cap. $67,239
Shares Outstanding 5,633 Total Long-Term Debt 54,456
OP Units Outstanding 1,000 Total Market Cap. $121,695
2000 Proj. FFO Per Share $1.64 Total Debt / Tot. Mkt. Cap. 44.7 %
2001 Proj. FFO Per Share $1.82 Debt Ratings N/A
1999 Price/FFO 7.3 x IPO Date Dec-86
FFO Yield 13.7 %
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Executive Officers and Directors
- --------------------------------------------------------------------------------
<TABLE>
Name Age Position
<S> <C> <C>
Terry Considine 51 Chairman of the Board and CEO
Thomas L. Rhodes 59 Vice Chairman of the Board
Bruce E. Moore 56 President and COO
Bruce Benson 60 Chairman of the Compensation Committee
Elliot H. Kline 58 Chairman of the Audit Committee
David M. Becker 39 CFO, Secretary & Treasurer
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Lease Rollover and Debt Maturities
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 2000 2001 2002 2003 Thereafter
<S> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $1M $11M $1M $1M $1M $26M
Size Outstanding Interest Rate
--------- ------------- ---------------
Line of Credit $4M $2M LIBOR + 1.75%
Maturity Date 2000
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Summary (000's)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
As of As of
Balance Sheet: September 30, 1999 Dec. 31, 1998
----------------------- -----------------
<S> <C> <C>
Net Real Estate $ 109,543 $ 98,563
Total Assets 159,578 158,226
Total Long-Term Debt 54,456 40,506
Total Stockholders' Equity 84,676 78,636
12 Mos. Ended 12 Mos. Ended
Income Statement: September 30, 1999 Dec. 31, 1998
----------------------- -----------------
Total Revenue $ 18,841 $ 14,989
Interest Expense 3,948 2,485
G&A Expense 1,460 1,393
Net Income 2,230 212
FFO 9,415 8,155
FFO Per Share 1.36 1.22
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Recent News
- --------------------------------------------------------------------------------
1/00 AIC announced an increase in year-end per share results; adjusted FFO
equaled $1.45 per share for 1999 as compared to $1.22 for 1998.
8/99 AIC announced that it has entered into a definitive agreement to merge
with Commercial Assets, Inc. (CAX). AIC will issue 0.4075 shares of its
common stock for each outstanding share of CAX common stock. AIC will
change its name to American Land Lease, Inc.
4/99 AIC announced it will terminate its stock repurchase program. Under the
program, the company has purchased 121,250 shares of its common stock
for $1,708,000.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Insider Ownership (000's)
- --------------------------------------------------------------------------------
<TABLE>
Name Number of Shares % of Total
- ----- ---------------- ----------
<S> <C> <C>
Terry Considine 506 9.1 %
Thomas L. Rhodes 214 3.8
Bruce E. Moore 146 2.6
Bruce D. Benson 131 2.3
Elliot H. Kline 47 less than 1.0
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Analyst Recommendations
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Firm Name: Analyst: Recommendation: Date:
- --------------------------- ------------------ --------------------- ------------
<S> <C> <C> <C>
Raymond James Financial Paul D. Puryear Buy 01/21/00
Robertson Stephens Jay P. Leupp Long-term Attractive 01/14/00
First Union Securities Eric Lohmeier Strong buy 10/31/99
Jeffries & Co. James F. Wilson Buy 10/26/99
Sutro & Co. Craig M. Silvers Buy 10/25/99
</TABLE>
- --------------------------------------------------------------------------------
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
[LOGO LEGG MASON]
Investment Banking
41
<PAGE>
Current Year Multiples
<TABLE>
<CAPTION>
Multiple x
February 28, 1996 February 28, 1997 February 28, 1998 February 28, 1999 February 28, 2000
<S> <C> <C> <C> <C> <C>
CPJ 13.5 13.9 13.4 11.4 9.0
MHC 13.4 13.7 13.1 10.6 9.8
SUI 12.1 13.0 12.6 10.5 9.1
UMH
AIC 8.1 7.3
</TABLE>
[Graph Appears here]
Forward Year Multiples
<TABLE>
<CAPTION>
Multiple x
February 28, 1996 February 28, 1997 February 28, 1998 February 28, 1999 February 28, 2000
<S> <C> <C> <C> <C> <C>
CPJ 14.3 13.6 11.3 9.0
MHC 13.4 14.4 14.3 10.7 9.6
SUI 13.5 12.7 10.5 9.2
UMH
AIC 6.4
</TABLE>
[Graph Appears here]
42
<PAGE>
Addendum
================================================================================
Sensitivity Analysis
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
WPP3
----------------------------------------------- ------------------------------------------------
DCF 2000
Valuation Multiples Valuation
----------------------------------------------- ------------------------------------------------
High Mean Low High Mean Low
----------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
0% dis $ 38.70 $ 34.87 $ 29.17 $ 36.20 $ 32.30 $ 26.36
5% dis 36.70 33.07 27.67 34.30 30.59 24.95
10% dis 34.70 31.27 26.18 32.39 28.88 23.54
15% dis 32.71 29.48 24.70 30.49 27.17 22.13
20% dis 30.72 27.70 23.22 28.58 25.47 20.72
25% dis 28.75 25.93 21.75 26.68 23.76 19.30
30% dis 26.78 24.17 20.29 24.78 22.05 17.89
35% dis 24.83 22.41 18.84 22.87 20.34 16.48
40% dis 22.89 20.68 17.41 20.97 18.63 15.07
45% dis 20.96 18.95 15.98 19.06 16.92 13.65
50% dis 19.05 17.24 14.57 17.16 15.21 12.24
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
WPP3
------------------------------------------------ ------------------------------------------------
2001 EBITDA
Multiples Valuation Valuation
------------------------------------------------ ------------------------------------------------ Consideration
High Mean Low High Mean Low Paid
------------------------------------------------- ------------------------------------------------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
0% dis $ 34.43 30.56 $ 24.45 39.12 $ 34.50 30.45 $ 37.43
5% dis 32.61 28.94 23.14 36.38 31.99 28.14
10% dis 30.80 27.32 21.82 33.64 29.48 25.83
15% dis 28.98 25.69 20.50 30.90 26.97 23.53
20% dis 27.17 24.07 19.19 28.15 24.46 21.22
25% dis 25.35 22.45 17.87 25.41 21.95 18.91
30% dis 23.54 20.83 16.55 22.67 19.44 16.60
35% dis 21.72 19.21 15.24 19.93 16.93 14.30
40% dis 19.91 17.58 13.92 17.19 14.42 11.99
45% dis 18.09 15.96 12.60 14.45 11.91 9.68
50% dis 16.28 14.34 11.29 11.71 9.40 7.37
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
WPP 6
----------------------------------------------- ------------------------------------------------
DCF 2000
Valuation Multiples Valuation
----------------------------------------------- ------------------------------------------------
High Mean Low High Mean Low
----------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
0% dis $ 35.85 $ 32.38 $ 27.21 $ 32.99 $ 29.61 $ 24.45
5% dis 34.04 30.75 25.85 31.34 28.12 23.22
10% dis 32.23 29.12 24.49 29.68 26.64 22.00
15% dis 30.42 27.49 23.13 28.03 25.15 20.77
20% dis 28.62 25.87 21.78 26.38 23.67 19.54
25% dis 26.82 24.26 20.43 24.72 22.18 18.32
30% dis 25.03 22.64 19.09 23.07 20.70 17.09
35% dis 23.25 21.04 17.75 21.42 19.21 15.86
40% dis 21.47 19.44 16.42 19.76 17.73 14.64
45% dis 19.70 17.85 15.10 18.11 16.25 13.41
50% dis 17.94 16.27 13.78 16.45 14.76 12.18
- --------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
WPP 6
------------------------------------------------ ------------------------------------------------
2001 EBITDA
Multiples Valuation Valuation
------------------------------------------------ ------------------------------------------------ Consideration
High Mean Low High Mean Low Paid
------------------------------------------------ ------------------------------------------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
0% dis $ 31.99 $ 28.57 $ 23.18 $ 37.24 $ 32.33 $ 28.02 $ 30.30
5% dis 30.39 27.14 22.02 34.32 29.66 25.56
10% dis 28.79 25.71 20.85 31.41 26.99 23.11
15% dis 27.18 24.27 19.69 28.49 24.32 20.65
20% dis 25.58 22.84 18.53 25.58 21.65 18.20
25% dis 23.97 21.41 17.36 22.66 18.98 15.75
30% dis 22.37 19.98 16.20 19.75 16.31 13.29
35% dis 20.77 18.54 15.04 16.83 13.64 10.84
40% dis 19.16 17.11 13.87 13.92 10.98 8.39
45% dis 17.56 15.68 12.71 11.00 8.31 5.93
50% dis 15.95 14.24 11.55 8.09 5.64 3.48
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
43
<PAGE>
EXHIBIT 23.2
The General Partners of
Windsor Park Properties 3, A California Limited Partnership
c/o The Windsor Corporation
6160 South Syracuse Way
Greenwood Village, Colorado 80111
We hereby consent to the use of our name and to the description of our opinion
letter, dated March 1, 2000, under the caption "Fairness Opinion" in, and to the
inclusion of such opinion letter as Appendix A to, the Consent Solicitation
Statement filed as part of the Proxy Statement on Schedule 14A of Windsor Park
Properties 3, A California Limited Partnership ("WPP 3"). In addition we hereby
consent to the inclusion of our opinion letter and presentation materials as
exhibits to WPP 3's Transaction Statement on Schedule 13E-3 and the
incorporation by reference of information relating to us into such Transaction
Statement from WPP 3's Proxy Statement.
LEGG MASON WOOD WALKER, INCORPORATED
By: /s/ Thomas E. Robinson
----------------------
Thomas E. Robinson
Managing Director
<PAGE>
Exhibit 23.3
CONSENT OF INDEPENDENT ACCOUNTANT
We hereby consent to the incorporation by reference in this Information Required
in Proxy Statement on Schedule 14A Information of our report dated March 19,
1999 relating to the consolidated financial statements, which appears in Windsor
Park Properties 3 Annual Report on Form 10-KSB for the year ended December 31,
1998, as amended by the Partnership's Annual Report on form 10-KSB/A.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
Denver, Colorado
March 3, 2000
