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, 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 September 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>
Sept. 30, December 31,
Unaudited 1995 1994
------------- -------------
<S> <C> <C>
Assets:
Cash and cash equivalents $ 942,993 $ 602,285
Storage centers, net 34,389,838 35,121,146
Other assets 246,559 258,242
Amortizable asset 429,842 746,789
Land held for resale 201,835 201,835
------------- -------------
Total Assets $ 36,211,067 $36,930,297
============= =============
Liabilities and Partners' Equity (Deficit):
Liabilities
Accounts payable and other accrued expenses $ 615,851 $ 428,900
Notes payable 11,096,923 11,619,725
------------- -------------
Total Liabilities 11,712,774 12,048,625
------------- -------------
Partners' equity (deficit)
Limited partners 24,598,691 24,962,899
General partner (100,398) (81,227)
------------- -------------
Total Partners' Equity (Deficit) 24,498,293 24,881,672
------------- -------------
Total Liabilities and Partners'
Equity (Deficit) $ 36,211,067 $36,930,297
============= =============
</TABLE>
<TABLE>
STATEMENTS OF EARNINGS
<CAPTION>
Three Months Ended Sept 30,Nine Months Ended Sept 30,
---------------------------------------------------
Unaudited 1995 1994 1995 1994
---------------------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues:
Rental $1,884,223 $1,755,673 $5,394,670 $4,898,273
Interest income 10,598 11,442 23,659 47,015
----------- ----------- ----------- -----------
Total Revenues 1,894,821 1,767,115 5,418,329 4,945,288
----------- ----------- ----------- -----------
Expenses:
Operating and administrative 469,458 465,911 1,449,291 1,292,360
Property management fees 113,050 108,213 323,669 293,897
Depreciation and amortization 362,445 313,981 1,158,233 954,541
Real estate taxes 123,676 114,128 379,658 366,072
Interest 266,501 239,281 726,164 577,633
----------- ----------- ----------- -----------
Total Expenses 1,335,130 1,241.514 4,037,015 3,484,503
----------- ----------- ----------- -----------
Earnings $ 559,691 $ 525,601 $1,381,314 $ 1,460,785
=========== =========== =========== ===========
Earnings per unit of limited
partnership interest $ 4.46 $ 4.19 $ 11.01 $ 11.64
=========== =========== =========== ===========
Distributions per unit of limited
partnership interest $ 4.69 $ 4.53 $ 14.06 $ 13.12
=========== =========== =========== ===========
</TABLE>
<TABLE>
STATEMENTS OF CASH FLOWS
<CAPTION>
Nine Months Ended Sept 30,
----------------------------
Unaudited 1995 1994
------------- ------------
<S> <C> <C>
Operating activities:
Earnings $ 1,381,314 $ 1,460,785
Adjustments to reconcile earnings to net cash
provided by operating activities:
Depreciation and amortization 1,158,233 954,541
Changes in operating accounts:
Other assets 11,683 (23,141)
Accounts payable and other accrued expenses 186,951 120,193
------------- ------------
Net cash provided by operating activities 2,738,181 2,512,378
------------- ------------
Investing activities:
Purchase of and improvements to storage centers (109,978) (531,947)
Consideration for amortizable assets (300,498)
------------- ------------
Net cash used in investing activities (109,978) (832,445)
------------- ------------
Financing activities:
Proceeds from notes payable 1,500,000
Payments on notes payable (522,802) (672,254)
Payments on loan costs (226,915)
Distributions to partners (1,764,693) (1,647,045)
------------- ------------
Net cash used in financing activities (2,287,495) (1,046,214)
------------- ------------
Increase in cash and cash equivalents 340,708 633,719
Cash and cash equivalents at beginning of year 602,285 723,114
------------- ------------
Cash and cash equivalents at end of period $ 942,993 $ 1,356,833
============= ============
Supplemental disclosures of cash flow information:
Cash paid during period for interest $ 673,400 $ 338,352
============= ============
</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 nine months ended September 30, 1995 and 1994).
Note B -_ Note Payable:
During 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 $143,902 on their mortgage note for the first nine
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 and earnings for the
quarter have increased $129,000 and $34,000 respectively over the same quarter
last year resulting primarily from a 9% increase in the average rental rate
per square foot. Stone Mountain, Norcross and Castro Valley contributed the
largest revenue gains for the quarter of $21,200, $19,500 and $18,500,
respectively. Rate increases were partially offset by a slight decline in
occupancies from 94% at September 30, 1994 to 91% at September 30, 1995.
Third quarter expenses rose 7.5% or $94,000 compared to the same quarter
last year. Although total expenses for the third quarter of 1995 rose over
the third quarter of 1994, $47,000 of this increase was due to higher
depreciation and amortization expense which does not effect the Partnership's
cashflow. Additionally, interest expense rose due to the increase in the
interest rate on the Partnership's mortgage note from 8.125% at
September 30, 1994 to 9.25% at September 30, 1995.
Investing Activities - Capital improvements for the quarter totaled
approximately $73,000 which included pavement work at the Gilbert and Allen
Boulevard storage centers, as well as a new perimeter fence at the Windcrest
storage center. Additionally, the septic system at the Delray Beach storage
center was replaced. Capital improvements planned for the fourth quarter
total approximatley $23,000. 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 $143,902 on their mortgage note, for the
first nine 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: November 13, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 942,993
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 38,365,074
<DEPRECIATION> 3,097,000
<TOTAL-ASSETS> 36,211,067
<CURRENT-LIABILITIES> 615,851
<BONDS> 11,096,923
<COMMON> 0
0
0
<OTHER-SE> 24,498,293
<TOTAL-LIABILITY-AND-EQUITY> 36,211,067
<SALES> 0
<TOTAL-REVENUES> 5,418,329
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,310,851
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 726,164
<INCOME-PRETAX> 1,381,314
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,381,314
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,381,314
<EPS-PRIMARY> 11.01
<EPS-DILUTED> 11.01
</TABLE>
