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 June 30, 1995
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 June 30, 1995 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
<PAGE>
PART I, ITEM 1 FINANCIAL STATEMENTS
<TABLE>
COMBINED BALANCE SHEETS
<CAPTION>
June 30, December 31,
Unaudited 1995 1994
------------- ------------
<S> <C> <C>
Assets:
Cash and cash equivalents $ 1,995,407 $ 1,877,311
Storage centers, net 29,181,155 29,739,936
Other assets 261,313 330,333
------------- -------------
Total Assets $ 31,437,875 $ 31,947,580
============= =============
Liabilities and Partners' Equity (Deficit):
Liabilities
Accounts payable and other accrued expenses $ 192,485 $ 140,494
Unearned rent and tenant deposits 168,509 172,231
Notes payable 1,436,846 1,451,399
------------- -------------
Total Liabilities 1,797,840 1,764,124
------------- -------------
Minority interest in joint partnership 2,596,660 2,795,612
------------- -------------
Partners' equity (deficit)
Limited partners 27,329,871 27,657,121
General partner (286,496) (269,277)
------------- -------------
Total Partner's Equity (Deficit) 27,043,375 27,387,844
------------- -------------
Total Liabilities and Partners'
Equity (Deficit) $ 31,437,875 $ 31,947,580
============= =============
</TABLE>
<TABLE>
COMBINED STATEMENTS OF EARNINGS
<CAPTION>
Three Months Ended June 30,Six Months Ended June 30,
--------------------------------------------------
Unaudited 1995 1994 1995 1994
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues:
Rental $1,602,212 $1,468,997 $3,143,073 $2,856,698
Interest income 27,907 11,323 49,929 20,170
----------- ----------- ----------- -----------
Total Revenues 1,630,119 1,480,320 3,193,002 2,876,868
----------- ----------- ----------- -----------
Expenses:
Operating and administrative 439,710 344,127 881,631 744,827
Property management fees 96,302 88,294 188,698 171,320
Depreciation and amortization 284,999 280,716 570,865 561,433
Real estate taxes 103,947 128,030 223,883 259,960
Interest 33,358 19,162 66,449 41,565
----------- ----------- ----------- -----------
Total Expenses 958,316 860,329 1,931,526 1,779,105
----------- ----------- ----------- -----------
Minority interest in joint
partnership earnings 64,220 46,741 119,048 79,433
----------- ----------- ----------- -----------
Earnings $ 607,583 $ 573,250 $ 1,142,428$
1,018,330
=========== =========== =========== ===========
Earnings per unit of limited
partnership interest $ 3.89 $ 3.67 $ 7.32 $ 6.53
=========== =========== =========== ===========
Distributions per unit of limited
partnership interest $ 4.84 $ 4.14 $ 9.53 $ 8.20
=========== =========== =========== ===========
</TABLE>
<TABLE>
COMBINED STATEMENTS OF CASH FLOWS
<CAPTION>
Six Months Ended June 30,
------------------------------
Unaudited 1995 1994
-------------- -------------
<S> <C> <C>
Operating activities:
Earnings $ 1,142,428 $ 1,018,330
Adjustments to reconcile earnings to net cash
provided by operating activities:
Minority interest in joint partnership earnings 119,048
79,433
Depreciation and amortization 570,865 561,433
Changes in operating accounts:
Other assets 66,933 (30,192)
Accounts payable and other accrued expenses 51,991 128,112
Unearned rent and tenant deposits (3,722) 1,150
------------- -------------
Net cash provided by operating activities 1,947,543 1,758,266
------------- -------------
Investing activities:
Improvements to storage centers (9,997) (10,720)
------------- -------------
Financing activities:
Payments on notes payable (14,553) (26,095)
Distributions to minority partner in joint partnership (318,000)
Distributions to partners (1,486,897) (1,279,706)
------------- -------------
Net cash used in financing activities (1,819,450) (1,305,801)
------------- -------------
Increase in cash and cash equivalents 118,096 441,745
Cash and cash equivalents at beginning of year 1,877,311 1,281,683
------------- -------------
Cash and cash equivalents at end of period $ 1,995,407 $ 1,723,428
============= =============
Supplemental disclosures of cash flow information:
Cash paid during period for interest $ 66,449 $ 41,565
============= =============
</TABLE>
NOTE TO COMBINED FINANCIAL STATEMENTS
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 and six months ended June 30, 1995 and
1994).
Certain items in the 1994 financial statements have been
reclassified to conform with the current year presentation.
PART I, ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS
Operating Results - The Partnership's revenues for the quarter
increased $150,000 and earnings increased $34,000 compared to the
second quarter of 1994. These increases are primarily due to a 9%
increase in the average rental rate per square foot and stable
occupancies throughout the Partnership. Factoria Square, Morgan Falls
and Ontario contributed the largest revenue gains for the quarter.
The Livonia and Warren storage centers had the largest revenue
increases for the Joint Partnership, in which your Partnership owns a
70% interest. Additionally, the Joint Partnership contributed a total
of $49,000 in additional rental revenues compared to last quarter at
this same time. Occupancies remained stable at an average of 92% at
June 30, 1995 and 1994.
Second quarter expenses rose 11% or $98,000 compared to the same
quarter last year. Operating and administrative costs increased
$96,000 due to 1) increased personnel costs resulting from additional
hours worked by managers, 2) the timing of certain investor service
expenses and higher printing costs of the Partnership's quarterly and
annual reports and 3) higher repair and maintenance expenses,
resulting from an increase in landscaping expense for the spring and
summer months at the Canton, Fraser and Warren storage centers, and
repairs made to the air conditioning units at Margate. Additionally,
interest rates rose from 6.375% at June 30, 1994 to 9.25% at June 30,
1995 causing a $14,000 increase in interest expense. Real estate
taxes decreased 24% or $24,000 this quarter compared to last quarter
at this time due to levy decreases in the Michigan districts as well
as a tax refund received as a result of a successful real estate tax
appeal for the Fraser facility.
Investing Activities - Capital investments planned for the
remaining two quarters total approximately $73,000 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.
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: August 31, 1995 By: HARRELL BECK
------------------------------------
Harrell Beck
Treasurer and Authorized Signatory
Shurgard General Partner, Inc.
General Partner
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,995,407
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 35,973,308
<DEPRECIATION> 6,792,153
<TOTAL-ASSETS> 31,437,875
<CURRENT-LIABILITIES> 0
<BONDS> 1,436,846
<COMMON> 0
0
0
<OTHER-SE> 27,043,375
<TOTAL-LIABILITY-AND-EQUITY> 31,437,875
<SALES> 0
<TOTAL-REVENUES> 3,193,002
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,865,077
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 66,449
<INCOME-PRETAX> 1,142,428
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,142,428
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,142,428
<EPS-PRIMARY> 7.32
<EPS-DILUTED> 7.32
</TABLE>
