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 0-19197
IDS/SHURGARD INCOME GROWTH PARTNERS, L.P. III
(Exact name of registrant as specified in its charter)
WASHINGTON 91-1435854
(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>
<TABLE>
BALANCE SHEETS
<CAPTION>
June 30, December 31,
Unaudited 1995 1994
------------- -------------
<S> <C> <C>
Assets:
Cash and cash equivalents $ 717,626 $ 602,285
Storage centers, net 34,596,936 35,121,146
Other assets 167,431 258,242
Amortizable asset 512,245 746,789
Land held for resale 201,835 201,835
------------- -------------
Total Assets $ 36,196,073 $36,930,297
============= =============
Liabilities and Partners' Equity (Deficit):
Liabilities
Accounts payable and other accrued expenses $ 526,131 $ 428,900
Notes payable 11,143,109 11,619,725
------------- -------------
Total Liabilities 11,669,240 12,048,625
------------- -------------
Partners' equity (deficit)
Limited partners 24,625,803 24,962,899
General partner (98,970) (81,227)
------------- -------------
Total Partners' Equity (Deficit) 24,526,833 24,881,672
------------- -------------
Total Liabilities and Partners'
Equity (Deficit) $ 36,196,073 $36,930,297
============= =============
</TABLE>
<TABLE>
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 $1,790,074 $1,648,732 $3,510,447 $3,142,600
Interest income 6,133 7,209 13,061 35,573
----------- ----------- ----------- -----------
Total Revenues 1,796,207 1,655,941 3,523,508 3,178,173
----------- ----------- ----------- -----------
Expenses:
Operating and administrative 481,839 440,447 979,833 826,449
Property management fees 107,396 98,894 210,619 185,684
Depreciation and amortization 396,345 315,073 795,788 640,560
Real estate taxes 129,649 132,284 255,982 251,944
Interest 245,624 177,568 459,663 338,352
----------- ----------- ----------- -----------
Total Expenses 1,360,853 1,164,266 2,701,885 2,242,989
----------- ----------- ----------- -----------
Earnings $ 435,354 $ 491,675 $ 821,623 $ 935,184
=========== =========== =========== ===========
Earnings per unit of limited
partnership interest $ 3.47 $ 3.92 $ 6.55 $ 7.45
=========== =========== =========== ===========
Distributions per unit of limited
partnership interest $ 4.69 $ 4.37 $ 9.37 $ 8.59
=========== =========== =========== ===========
</TABLE>
<TABLE>
STATEMENTS OF CASH FLOWS
<CAPTION>
Six Months Ended June 30,
-----------------------------
Unaudited 1995 1994
------------- ------------
<S> <C> <C>
Operating activities:
Earnings $ 821,623 $ 935,184
Adjustments to reconcile earnings to net cash
provided by operating activities:
Depreciation and amortization 795,788 640,560
Changes in operating accounts:
Other assets 90,811 14,051
Accounts payable and other accrued expenses 97,231 32,482
------------- -------------
Net cash provided by operating activities 1,805,453 1,622,277
------------- -------------
Investing activities:
Purchase of and improvements to storage centers (37,034) (516,437)
Consideration for amortizable assets (298,450)
------------- -------------
Net cash used in investing activities (37,034) (814,887)
------------- -------------
Financing activities:
Proceeds from notes payable 1,500,000
Payments on notes payable (476,616) (616,580)
Payments on loan costs (226,915)
Distributions to partners (1,176,462) (1,078,422)
------------- -------------
Net cash used in financing activities (1,653,078) (421,917)
------------- -------------
Increase in cash and cash equivalents 115,341 385,473
Cash and cash equivalents at beginning of year 602,285 723,114
------------- -------------
Cash and cash equivalents at end of period $ 717,626 $ 1,108,587
============= =============
Supplemental disclosures of cash flow information:
Cash paid during period for interest $ 423,278 $ 251,944
============= =============
</TABLE>
NOTES TO 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. Certain
amounts have been reclassified to conform to the current year
presentation.
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
(119,215 for the three and six months ended June 30, 1995 and 1994).
Note B -_ Note Payable:
During to the first quarter of 1995, the Partnership made payments
totaling $378,900 on the seller's notes pertaining to the Castro
Valley and Newark facilities. Additionally, the Partnership has made
payments totaling $97,716 on their mortgage note for the first six
months of 1995. These payments were funded out of operating cash
flow.
PART I ITEM 2 MANAGEMENTS' DISCUSSION AND ANALYSIS
Operating Results - The Partnership's rental revenues for the
quarter have increased $141,300 or 8.6% over the same quarter last
year. The increase resulted primarily from a 14% increase in the
average rental rate per square foot. San Leandro, Gilbert and San
Lorenzo storage centers contributed the largest revenue gains for the
quarter of $18,100, $17,300 and $17,200, respectively. Occupancies
declined slightly by 4%, from 94% at June 30, 1994 to 90% at June
30,1995.
Earnings for the quarter decreased 11% compared with the same
quarter last year, as expense increases offset revenue gains.
Although total expenses for the second quarter 1995 rose $197,000 over
second quarter 1994, $81,000 of this increase was due to higher
depreciation and amortization expense which does not effect the
Partnership's cashflow. Cashflow for 1995 has actually increased
$25,000 compared to 1994.
Interest expense rose due to the increase in the interest rate on
the Partnership's note from 7% at June 30, 1994 to 9.25% at June 30,
1995. Operating and administrative expenses rose 9% over the same
quarter last year primarily due to 1) increased personnel costs
resulting from additional hours worked by managers, 2) the timing of
investor service expenses and the increase in printing costs of the
Partnership's quarterly and annual reports and 3) higher repair and
maintenance expenses, including landscaping expense for the spring and
summer months at the Georgia storage centers, gutter replacement at
Forest Park, and air conditioning repair costs at Stone Mountain.
Investing Activities - Capital investments planned for the
remaining two quarters total approximately $123,000 including pavement
work at the Allen Boulevard, Rochester and Gilbert storage centers as
well as building improvements to Tracy, Windcrest and Allen Boulevard
storage centers. These improvements are important to maintaining the
value of your investment as well as its ability to generate revenue.
Financing Activities - During the first quarter, the Partnership
made payments totaling $378,900 on the seller's notes pertaining to
the Castro Valley and Newark centers. Additionally, the Partnership
has made payments totaling $97,716 on their mortgage note, for the
first six months of 1995. All payments were funded out of operating
cash flow.
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. III
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> 717,626
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 37,331,491
<DEPRECIATION> 2,734,555
<TOTAL-ASSETS> 36,196,073
<CURRENT-LIABILITIES> 0
<BONDS> 11,143,109
<COMMON> 0
0
0
<OTHER-SE> 24,526,833
<TOTAL-LIABILITY-AND-EQUITY> 36,196,073
<SALES> 0
<TOTAL-REVENUES> 3,523,508
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,242,222
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 459,663
<INCOME-PRETAX> 821,623
<INCOME-TAX> 0
<INCOME-CONTINUING> 821,623
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 821,623
<EPS-PRIMARY> 6.55
<EPS-DILUTED> 6.55
</TABLE>
