FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1994 Commission file number 0-17682
IDS/SHURGARD INCOME GROWTH PARTNERS, L.P.
(Exact name of registrant as specified in its charter)
WASHINGTON 91-1393767
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1201-3RD AVENUE, SUITE 2200, SEATTLE, WASHINGTON 98101
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code)206-624-8100
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
Part I, Item 1: Combined Balance Sheets (unaudited)
Sept. 30, Dec. 31,
1994 1993
----------- -----------
Assets:
Cash and short-term investments $ 1,772,083 $ 1,281,683
Storage centers, net 29,999,998 30,755,670
Other assets 282,857 240,818
----------- -----------
Total assets $32,054,938 $32,278,171
=========== ===========
Liabilities and Partners' Equity (Deficit):
Liabilities
Accounts payable and other accrued
expenses $ 238,629 $ 119,468
Unearned rent and tenant deposits 171,758 166,836
Note payable 1,459,526 1,495,986
----------- -----------
Total liabilities $ 1,869,913 $ 1,782,290
----------- -----------
Minority interest in joint partnership 2,729,294 2,674,831
Partners' equity (deficit)
Limited partners 27,721,609 28,068,666
General partner (265,878) (247,616)
----------- -----------
Total Partners' Equity (Deficit) 27,455,731 27,821,050
----------- -----------
Total Liabilities and Partners'
Equity (Deficit) $32,054,938 $32,278,171
=========== ===========
Part I, Item 1: Combined Statements of Earnings (unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
--------------------- ---------------------
1994 1993 1994 1993
---------- ---------- ---------- ----------
Revenues
Rental $1,542,148 $1,420,516 $4,398,846 $4,072,977
Interest Income 16,288 7,944 36,458 21,007
---------- ---------- ---------- ----------
Total Revenues $1,558,436 $1,428,460 $4,435,304 $4,093,984
---------- ---------- ---------- ----------
Expenses
Operating and
administrative 403,296 411,500 1,148,123 1,124,983
Property management fees 92,376 85,111 263,696 244,379
Depreciation and
amortization 280,608 279,291 842,041 838,747
Real estate taxes 128,117 123,662 388,077 370,344
Interest 25,441 23,690 67,006 72,456
---------- ---------- ---------- ----------
Total Expenses $ 929,838 $ 923,254 $2,708,943 $2,650,909
---------- ---------- ---------- ----------
Minority interest in joint
partnership earnings 50,030 36,172 129,463 95,852
Earnings $ 578,568 $ 469,034 $1,596,898 $1,347,223
========== ========== ========== ==========
Earnings per unit of limited
partnership interest $ 3.71 $ 3.01 $ 10.24 $ 8.64
========== ========== ========== ==========
Distributions per unit
of limited partnership
interest $ 4.38 $ 3.75 $ 12.58 $ 11.25
========== ========== ========== ==========
Part I, Item 1: Combined Statements of Cash Flows (unaudited)
Nine Months Ended Sept. 30,
---------------------------
1994 1993
------------- ------------
Operating activities:
Earnings $ 1,596,898 $ 1,347,223
Adjustments to reconcile earnings to net
cash provided by operating activities:
Minority interest in joint
partnership earnings 129,463 95,852
Depreciation and amortization 842,041 838,747
Changes in operating accounts:
Other assets (45,170) 24,732
Accounts payable and other
accrued expenses 119,161 66,270
Unearned rent and tenant deposits 4,922 16,275
----------- -----------
Net cash provided by operating activities 2,647,315 2,389,099
----------- -----------
Investing activities:
Improvements to storage centers (83,238) (76,988)
----------- -----------
Financing activities:
Payments on note payable (36,460) (30,203)
Distributions to minority partner
in joint partnership (75,000) (195,000)
Distributions to partners (1,962,217) (1,755,024)
----------- -----------
Net cash used in financing activities (2,073,677) (1,980,227)
----------- -----------
Increase in cash and short-term investments 490,400 331,884
Cash and short-term investments at
beginning of year 1,281,683 853,401
----------- -----------
Cash and short-term investments at
end of period $ 1,722,083 $ 1,185,285
=========== ===========
Supplemental disclosures of cash flow information
Cash paid during period for interest $ 67,006 $ 72,456
=========== ===========
Part I, Item 1: Notes to Combined Financial Statements
Note A -- Financial Statements Preparation:
The interim financial statements are unaudited but reflect all
adjustments that are, in the opinion of management, necessary to a fair
statement of the results for the interim periods presented. These
adjustments consist primarily of normal recurring accruals. The interim
financial statements should be read in conjunction with the audited
financial statements contained in the 1993 Annual Report. The results of
operations for interim periods will not necessarily be indicative of the
operating results for the fiscal year. The combined financial statements
include the accounts of the Partnership and Shurgard Joint Partners II
(SJP II) in which the Partnership has a 70 percent interest. All
minority partners' interest in the joint partnership are shown separately
on the accompanying financial statements.
Distributions and earnings per unit of limited partnership interest
are based on the total amounts distributed and allocated to limited
partners divided by the number of units outstanding during the period
(148,200 for the three and nine months ended September 30, 1994 and
1993).
Part I, Item 1: Management's Discussion & Analysis
Operating Results: Revenues have increased 9% for the third quarter
of 1994 to $1,558,436 from $1,428,460 for the corresponding quarter of
1993. The increase resulted primarily from rate increases and continued
stable occupancies. Margate and Morgan Falls contributed $37,000 in
increased revenues, while remaining stores also had significant gains.
The joint partnership, in which your Partnership owns a 70% interest, had
$62,000 in additional rental revenues compared to last year. Annualized
rental rates increased to $8.76 per square foot for the third quarter of
1994 compared to $8.16 per square foot for the same quarter of 1993,
while occupancies remained stable at an average of 91% at September 30,
1994 compared to 92% one year earlier.
Total expenses for the quarter, $929,838, were in-line with 1993
expenses of $923,254. Management fees (based on revenues) and real
estate taxes increased but were offset by lower administrative expense.
Investing and Financing Activities: The Partnership invested
$73,000 in storage centers for security improvements at South Military,
pavement work at Canton and Warren and roof work at Walnut. Capital
investments planned for the remaining quarter of 1994 total $12,000 for
security work at Ontario. These improvements are important to
maintaining the value of your investment as well as its ability to
generate revenue.
Cash Distributions: Earnings continue to improve and the
Partnership has maintained a healthy cash position. This has enabled us
to raise cash distributions for the third quarter of 1994 to a 7.125%
annualized rate of return compared to 7.00% last quarter.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
IDS/SHURGARD INCOME GROWTH PARTNERS, L.P.
Date: November 14, 1994 By: HARRELL BECK
Harrell Beck
Chief Financial Officer and Authorized Signatory
Shurgard General Partner, Inc.
General Partner
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<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
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<PP&E> 33,836,029
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<BONDS> 1,459,526
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<OTHER-SE> 27,455,731
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<INCOME-PRETAX> 1,596,898
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