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 March 31, 1995
OR
[ ] Transaction Report pursuant to section 13 or 15(d) of the securities
excahnge act of 1934
For the transaction period from to
For the Quarter Ended March 31, 1995 Commission file # 0-17682
ISD/SHURGARD INCOME GROWTH PARTNERS, L.P.
(exact name of reqistrant as specified in its charter)
Washington 91-1393767
(state or other jurisdiction of (I.R.S. Employer Identification #)
Incorporation or Organization)
1201-3rd Avenue, Suite 2200 Seattle, Washington 98101
(Address of principal executive offices) (zip code)
(registrants telephone number, including area code) 206-624-8100
Indicate by check mark whether the reqistant (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 teh past 90 days
Yes X No
<PAGE>
Part 1, Item 1: Management's Discussion & Analysis
FINANCIAL HIGHLIGHTS
Quarter Ended March 31,
1995 1994
----------- ---------
Average Occupancy 88% 87%
Revenues $ 1,562,883 $ 1,396,548
Earnings $ 534,845 $ 445,080
Distribution Rate (per $250 unit) 7.75% / $4.84 6.63% / $4.14
TO OUR PARTNERS
We are pleased to provide you with
the financial reports for IDS/Shurgard
Income Growth Partners L.P. for the
quarter ended March 31, 1995.
Operating Results. The
Partnership's performance continues to
improve with earnings up 20% over the
same quarter last year. Revenues have
increased $166,300 due to an 11%
increase in the average rental rate per
square foot and stable occupancies
throughout the Partnership. Margate,
Morgan Falls and Factoria Square
contributed the largest revenue gains
for the quarter, while the remaining
stores also had significant gains. The
joint partnership, in which your
Partnership owns a 70% interest, had
$63,500 in additional rental revenues
compared to last year. Fraser and
Livona storage centers had the largest
revenue contributions for the joint
partnership. Occupancies remained
stable at an average of 88% at March 31,
1995 compared to 87% one year ago.
First quarter expenses rose 6%
compared to the same quarter last year.
Operating and administrative costs
increased 10% due to 1) timing of
investor relation expenses 2) higher
utility usage resulting from a colder
than normal winter in the south, and 3)
increased personnel costs in the
Michigan district due to additional
hours worked by managers as well as an
increase in performance bonuses.
Additionally, interest rates rose from
6.375% at March 31, 1994 to 9.25% at
March 31, 1995 causing a $10,600
increase in interest expense.
Investing and Financing Activities.
Capital investments planned for the
remaining three quarters total
approximately $90,000 including pavement
work at the Canton and Warren storage
centers as well as building improvements
to Ontario, Midlothian Turnpike and
Canton. 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 first quarter of
1995 to a 7.75% annualized rate of
return compared to 7.5% last quarter.
If you have any questions regarding
your investment, please contact your
American Express Financial Advisor or
call Shurgard Investor Relations at 800-
955-2235.
Sincerely,
Janis E. Miller Charles K. Barbo
President General Partner
IDS Partnership Shurgard Associates L.P.
Services Corporation
<PAGE>
Part I, Item 1: Combined Balance Sheets (unaudited)
COMBINED BALANCE SHEETS
Mar. 31, Dec. 31,
Unaudited 1995 1994
----------- -----------
Assets:
Cash and cash equivalents $ 1,895,091 $ 1,877,311
Storage centers, net 29,485,819 29,770,641
Other assets 282,728 299,628
------------- -------------
Total Assets $ 31,663,638 $ 31,947,580
============= =============
Liabilities and Partners' Equity (Deficit):
Liabilities
Accounts payable and other accrued expenses $ 155,411 $ 140,494
Unearned rent and tenant deposits 181,545 172,231
Note payable 1,445,314 1,451,399
------------- -------------
Total Liabilities 1,782,270 1,764,124
------------- -------------
Minority interest in joint partnership 2,689,940 2,795,612
------------- -------------
Partners' equity (deficit)
Limited partners 27,470,521 27,657,121
General partner (279,093) (269,277)
------------- -------------
Total Partners' Equity (Deficit) 27,191,428 27,387,844
------------- -------------
Total Liabilities and Partners'
Equity (Deficit) $ 31,663,638 $ 31,947,580
============= =============
<PAGE>
Part I, Item 1: Combined Statements of Earnings (unaudited)
COMBINED STATEMENTS OF EARNINGS
Three Months Ended Mar. 31,
Unaudited 1995 1994
----------- -----------
Revenues:
Rental $1,540,861 $1,387,701
Interest income 22,022 8,847
----------- -----------
Total Revenues 1,562,883 1,396,548
----------- -----------
Expenses:
Operating and administrative 441,921 400,700
Property management fees 92,396 83,026
Depreciation and amortization 285,866 280,717
Real estate taxes 119,936 131,930
Interest 33,091 22,403
----------- -----------
Total Expenses 973,210 918,776
----------- -----------
Minority interest in joint partnership earnings 54,828 32,692
----------- -----------
Earnings $ 534,845 $ 445,080
=========== ===========
Earnings per unit of limited partnership interest $ 3.43 $ 2.85
=========== ===========
Distributions per unit of limited
partnership interest $ 4.69 $ 4.06
=========== ===========
<PAGE>
Part I, Item 1: Combined Statements of Cash Flows (unaudited)
COMBINED STATEMENTS OF CASH FLOWS
Three Months Ended Mar.31,
Unaudited 1995 1994
------------- ----------
Operating activities:
Earnings $ 534,845 $ 445,080
Adjustments to reconcile earnings to net
cash provided by operating activities:
Minority interest in joint partnership
earnings 54,828 32,692
Depreciation and amortization 285,866 280,717
Changes in operating accounts:
Other assets 15,856 (73,727)
Accounts payable and other accrued expenses 14,917 46,945
Unearned rent and tenant deposits 9,314 (829)
----------- ---------
Net cash provided by operating activities 915,626 730,878
----------- ---------
Investing activities:
Improvements to storage centers _ (2,754)
----------- ---------
Financing activities:
Payments on note payable (6,085) (10,949)
Distributions to minority partner in joint partnership (160,500)
Distributions to partners (731,261) (633,759)
Net cash used in financing activities (897,846) (644,708)
---------- ---------
Increase in cash and cash equivalents 17,780 83,416
Cash and cash equivalents at beginning of year 1,877,311 1,281,683
----------- ---------
Cash and cash equivalents at end of period $ 1,895,091 $ 1,365,099
============= ===========
Supplemental disclosures of cash flow information:
Cash paid during period for interest $ 33,091 $ 22,403
============ ===========
<PAGE>
Item I, Part 1: Notes to Combined Financial Statements
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
1994 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 months ended March 31, 1995 and
1994).
Certain items in the 1994 financial
statements have been reclassified to conform
with the current year presentation.
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: May 15, 1995 By: HARRELL BECK
Harrell Beck
Chief Financial Officer and Authorized Signatory
General Partner
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<ARTICLE> 5
<CIK> 0000822816
<NAME> IDS SHURGARD INCOME GROWTH PARTNERS LP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 1,895,091
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 35,994,016
<DEPRECIATION> 6,508,197
<TOTAL-ASSETS> 31,663,638
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 27,191,428
<TOTAL-LIABILITY-AND-EQUITY> 31,663,638
<SALES> 0
<TOTAL-REVENUES> 1,562,883
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 940,119
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 33,091
<INCOME-PRETAX> 534,845
<INCOME-TAX> 0
<INCOME-CONTINUING> 534,845
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 534,845
<EPS-PRIMARY> 3.43
<EPS-DILUTED> 3.43
</TABLE>
