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
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
For the quarter Ended March 31, 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 jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
1201-3rd AVENUE, SUITE 2200, SEATTLE, WASHINGTON 98101
(Adress 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: Managements Discussion & Analysis
FINANCIAL HIGHLIGHTS
Quarter Ended March 31,
1995 1994
------------ ---------
Average Occupancy 89% 91%
Revenues $ 1,727,301 $ 1,522,232
Earnings $ 386,269 $ 443,509
Distribution Rate (per $250 unit) 7.5% / $4.69 7% / $4.38
TO OUR PARTNERS
We are pleased to provide you with the
financial reports for IDS/Shurgard Income
Growth Partners L.P. III for the quarter
ended March 31, 1995.
Operating Results. The Partnership's
revenues for the quarter have increased
$205,000 or 13% over the same quarter last
year. Approximately $90,000 of this increase
is due to the inclusion of a full three
months of operations for Sacramento and San
Lorenzo in 1995 (in the first quarter of the
last year, only a month and a half were
included as the storage centers were
purchased in February 1994). Windcrest,
Newark, and Delray Beach storage centers
contributed the largest revenue gains for the
quarter. The average rental rate per square
foot also rose over the same quarter of last
year by 11%. Occupancies declined slightly
by 2%, from 91% at March 31, 1994 to 89% at
March 31, 1995.
The increase in revenues was offset by an
increase in expenses. Operating and
administrative expenses rose 29% over the
same quarter last year. Approximately half
of this increase is due to the inclusion of a
full three months of Sacramento and San
Lorenzo in 1995. Repair and maintenance
increased $29,000 over the same quarter last
year mainly due to 1) a maintenance contract
which was setup at the Gilbert center for
termite control, 2) the additional expense of
snow removal at the Rochester center
resulting from an extreme winter in Michigan,
and 3) an increase in expenses at the Tracy
facility due to additional work to replace
insufficient wiring. Additionally, interest
expense increased due to the increase in the
interest rate on the Partnership's note from
7% at March 31, 1994 to 9.25% at March 31,
1995.
Financing Activities. During the quarter,
the Partnership made payments totaling
$378,900 on the seller's notes pertaining to
the Castro Valley and Newark centers. These
payments were funded out of operating cash
flow.
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. III
Services Corporation
<PAGE>
Part I, Item 1: Balance Sheets (unaudited)
BALANCE SHEETS
Mar. 31, Dec. 31,
Unaudited 1995 1994
------------- -----------
Assets:
Cash and cash equivalents $ 315,732 $ 602,285
Storage centers, net 34,848,183 35,121,146
Other assets 262,656 258,242
Amortizable asset, net 627,968 746,789
Land held for resale 201,835 201,835
------------- ------------
Total Assets $ 36,256,374 $ 36,930,297
============= ============
Liabilities and Partners' Equity (Deficit):
Liabilities
Accounts payable and other accrued expenses $ 386,272 $ 428,900
Notes payable 11,190,392 11,619,725
------------- ------------
Total Liabilities 11,576,664 12,048,625
------------- ------------
Partners' equity (deficit)
Limited partners 24,771,036 24,962,899
General partner (91,326) (81,227)
------------- ------------
Total Partner's Equity (Deficit) 24,679,710 24,881,672
------------- ------------
Total Liabilities and Partners'
Equity (Deficit) $ 36,256,374 $ 36,930,297
============= ============
<PAGE>
Part I, Item 1: Statements of Earnings (unaudited)
STATEMENTS OF EARNINGS
Three Months Ended Mar.31,
Unaudited 1995 1994
------------- -----------
Revenues:
Rental $ 1,720,373 $ 1,493,868
Interest income and other revenue 6,928 28,364
----------- -----------
Total Revenues 1,727,301 1,522,232
----------- -----------
Expenses:
Operating and administrative 497,994 386,002
Property management fees 103,223 86,790
Depreciation 280,622 231,615
Real estate taxes 126,333 119,660
Interest 214,039 160,784
Amortization 118,821 93,872
----------- -----------
Total Expenses 1,341,032 1,078,723
----------- -----------
Earnings $ 386,269 $ 443,509
============== ============
Earnings per unit of limited partnership interest $ 3.08 $ 3.53
============== ==========
Distributions per unit of limited
partnership interest $ 4.69 $ 4.22
============== ===========
<PAGE>
Part I, Item 1: Statements of Cash Flows (unaudited)
STATEMENTS OF CASH FLOWS
Three Months Ended Mar. 31,
Unaudited 1995 1994
____________ ___________
Operating activities:
Earnings $ 386,269 $ 443,509
Adjustments to reconcile earnings to net
cash provided by operating activities:
Depreciation and amortization 399,443 325,487
Changes in operating accounts:
Other assets (4,414) (49,535)
Accounts payable and other accrued expenses (42,628) 7,557
------------ -----------
Net cash provided by operating activities 738,670 727,018
------------- -----------
Investing activities:
Purchase of and improvements to storage centers (7,659) (11,213)
Consideration for amortizable assets (524,761)
------------- -----------
Net cash used in investing activities (7,659) (535,974)
------------- -----------
Financing activities:
Proceeds from notes payable 1,500,000
Payments on notes payable (429,333) (580,000)
Distributions to partners (588,231) (529,407)
------------- -----------
Net (cash used in) provided by
financing activities (1,017,564) 390,593
------------- -----------
Decrease (increase) in cash and cash equivalents (286,553) 581,637
Cash and cash equivalents at beginning of year 602,285 723,114
------------- -----------
Cash and cash equivalents at end of period $ 315,732 $ 1,304,751
============= ===========
Supplemental disclosures of cash flow information:
Cash paid during period for interest $ 214,039 $ 132,351
============= ===========
<PAGE>
Part I, Item 1: Notes to Financial Staements
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 months ended March 31, 1995 and
1994).
Note B -- Note Payable:
During to the quarter, the Partnership
made payments totaling $378,900 on the
seller's notes pertaining to the Castro
Valley and Newark facilities. These 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: May 15, 1995 By: HARRELL BECK
Harrell Beck
Chief Financial Officer and Authorized Signatory
General Partner
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<CIK> 0000843024
<NAME> IDS SHURGARD INCOME GROWTH PARTNERS LPIII
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 315,732
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 37,302,116
<DEPRECIATION> 2,453,933
<TOTAL-ASSETS> 36,256,374
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0
0
<OTHER-SE> 24,679,710
<TOTAL-LIABILITY-AND-EQUITY> 36,256,374
<SALES> 0
<TOTAL-REVENUES> 1,727,301
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,126,993
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 214,039
<INCOME-PRETAX> 386,269
<INCOME-TAX> 0
<INCOME-CONTINUING> 386,269
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<EPS-PRIMARY> 3.08
<EPS-DILUTED> 3.08
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