<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
SCHEDULE 13E-3/A
RULE 13E-3 TRANSACTION STATEMENT
(PURSUANT TO SECTION 13(E) OF THE SECURITIES EXCHANGE ACT OF 1934)
(AMENDMENT NO. 8)
---------
IDS/SHURGARD INCOME GROWTH PARTNERS, L.P. III
(NAME OF ISSUER)
SHURGARD STORAGE CENTERS, INC.
IDS/SHURGARD INCOME GROWTH PARTNERS L.P. III
SHURGARD ASSOCIATES L.P. III
SHURGARD GENERAL PARTNER, INC.
CHARLES K. BARBO
(NAME OF PERSON FILING STATEMENT)
UNITS OF LIMITED PARTNERSHIP INTEREST
(TITLE OF CLASS OF SECURITIES)
------------
448933-200
(CUSIP NUMBER OF CLASS OF SECURITIES)
KRISTIN H. STRED, ESQ.
SENIOR VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY
1201 THIRD AVENUE, SUITE 2200
SEATTLE, WASHINGTON 98101
(206) 624-8100
(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSONS AUTHORIZED TO RECEIVE NOTICES
AND COMMUNICATIONS ON BEHALF OF PERSON(S) FILING STATEMENT)
COPIES TO:
JEFFREY T. PERO, ESQ.
WILLIAM J. CERNIUS, ESQ.
LATHAM & WATKINS
650 TOWN CENTER DRIVE
TWENTIETH FLOOR
COSTA MESA, CALIFORNIA 92626
(714) 540-1235
This statement is filed in connection with (check the appropriate box):
a. / / The filing of solicitation materials or an information statement
subject to Regulation 14A, Regulation 14C or Rule 13e-3(c) under
the Securities Exchange Act of 1934.
b. / / The filing of a registration statement under the Securities Act of
1933.
c. /X/ A tender offer.
d. / / None of the above.
Check the following box if soliciting material or information statement
referred to in checking box (a) are preliminary copies: / /
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
Shurgard Storage Centers, Inc., a Delaware corporation (the "Company"),
IDS/Shurgard Income Growth Partners L.P. III, a Washington limited partnership
(the "Partnership"), Shurgard Associates L.P. III, a Washington limited
partnership, Shurgard General Partner, Inc., a Washington corporation, and
Charles K. Barbo hereby amend their Rule 13e-3 Transaction Statement on Schedule
13E-3, originally filed with the Securities and Exchange Commission on July 2,
1996 (the "Schedule 13E-3"), with respect to the Company's acquisition of the
entire limited partnership interest in the Partnership.
The Supplement to Offer to Purchase, dated August 26, 1996, (the "Supplement
to Offer to Purchase"), a copy of which is incorporated by reference to Exhibit
99.19 to Amendment No. 8 to the Company's Tender Offer Statement on Schedule
14D-1 filed with the Securities and Exchange Commission on August 26, 1996 (the
"Schedule 14D-1"), supplements the Offer to Purchase, dated July 2, 1996 (the
"Offer to Purchase"), which was filed as Exhibit 99.6 to the Schedule 13E-3, as
supplemented by the Company's letter to Unitholders dated July 16, 1996, a copy
of which was filed as Exhibit 99.16 to the Schedule 13E-3. The Supplement to
Offer to Purchase relates to a tender offer by the Company (the "Offer") to
purchase up to 52,000 units of limited partnership interest (the "Units") in the
Partnership at a price of $308 net per Unit in cash, without interest.
<PAGE>
1. ISSUER AND CLASS OF SECURITY SUBJECT TO THE TRANSACTION.
Item 1 is hereby amended to add the following as additional information:
(c) The information set forth in "MARKET PRICES OF UNITS" of the Supplement
to Offer to Purchase is incorporated herein by reference.
(d) The information set forth in SCHEDULE VIII of the Supplement to Offer
to Purchase is incorporated herein by reference.
2. IDENTITY AND BACKGROUND.
Item 2 is hereby amended to add the following as additional information:
(a)-(d), (g) This Statement is being filed by the Purchaser, the
Partnership, Shurgard Associates L.P. III, Charles K. Barbo and Shurgard General
Partner, Inc. The information set forth in "BACKGROUND AND PURPOSES OF THE
TRANSACTION -- The Partnership" and SCHEDULE I of the Supplement to Offer to
Purchase is incorporated herein by reference.
(e)-(f) None of the Purchaser, the Partnership, Shurgard Associates L.P.
III, Charles K. Barbo, Shurgard General Partner, Inc. or, to the best of their
knowledge, any of the persons listed in Schedule I of the Supplement to Offer to
Purchase has, during the last five years, (i) been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or (ii) been a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting activities
subject to, federal or state securities laws or finding any violation of such
laws.
3. PAST CONTACTS, OFFERS OR NEGOTIATIONS.
Item 3 is hereby amended to add the following as additional information:
(a)-(b) The information set forth on the Cover Page and in the SUMMARY,
"SPECIAL CONSIDERATIONS," "BACKGROUND AND PURPOSES OF THE TRANSACTION --
Background of the Transaction" and "INTERESTS OF CERTAIN PERSONS" of the
Supplement to Offer to Purchase is incorporated herein by reference.
4. TERMS OF THE TRANSACTION.
Item 4 is hereby amended to add the following as additional information:
(a) The information set forth on the Cover Page and in the INTRODUCTION and
"THE OFFER -- Section 7" of the Supplement to Offer to Purchase is incorporated
herein by reference.
(b) The information set forth in the SUMMARY, "SPECIAL CONSIDERATIONS" and
"Interests of Certain Persons" of the Supplement to Offer to Purchase is
incorporated herein by reference.
5. PLANS OR PROPOSALS OF THE ISSUER OR AFFILIATE.
Item 5 is hereby amended to add the following as additional information:
(a)-(g) The information set forth on the Cover Page and in "BACKGROUND AND
PURPOSES OF THE TRANSACTION" of the Supplement to Offer to Purchase is
incorporated herein by reference.
7. PURPOSE(S), ALTERNATIVES, REASONS AND EFFECTS.
Item 7 is hereby amended to add the following as additional information:
(b) The information set forth in "BACKGROUND AND PURPOSES OF THE
TRANSACTION" and "FAIRNESS OF THE TRANSACTION; POSITION OF THE GENERAL PARTNER"
of the Supplement to Offer to Purchase is incorporated herein by reference.
4
<PAGE>
8. FAIRNESS OF THE TRANSACTION.
Item 8 is hereby amended to add the following as additional information:
(a)-(f) The information set forth in "BACKGROUND AND PURPOSES OF THE
TRANSACTION," "FAIRNESS OF THE TRANSACTION; POSITION OF THE GENERAL PARTNER" and
"APPRAISAL; OPINIONS OF FINANCIAL ADVISORS" of the Supplement to Offer to
Purchase is incorporated herein by reference.
9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS.
Item 9 is hereby amended to add the following as additional information:
(a)-(c) The information set forth in "APPRAISAL; OPINIONS OF FINANCIAL
ADVISORS" of the Supplement to Offer to Purchase is incorporated herein by
reference.
11. CONTRACTS, ARRANGEMENTS OR UNDERSTANDINGS WITH RESPECT TO THE ISSUER'S
SECURITIES.
Item 11 is hereby amended to add the following as additional information:
The information set forth in "BACKGROUND AND PURPOSES OF THE TRANSACTION --
Background of the Transaction" of the Supplement to Offer to Purchase is
incorporated herein by reference.
12. PRESENT INTENTION AND RECOMMENDATION OF CERTAIN PERSONS WITH REGARD TO THE
TRANSACTIONS.
Item 12 is hereby amended to add the following as additional information:
(a)-(b) The information set forth on the Cover Page and in "BACKGROUND AND
PURPOSES OF THE TRANSACTION -- Background of the Transaction," "FAIRNESS OF THE
TRANSACTION; POSITION OF GENERAL PARTNER" and "APPRAISAL; OPINIONS OF FINANCIAL
ADVISORS" of the Supplement to Offer to Purchase is incorporated herein by
reference.
14. FINANCIAL INFORMATION.
Item 14 is hereby amended to add the following as additional information:
(a)-(b) The information set forth in "BACKGROUND AND PURPOSES OF THE
TRANSACTION -- The Partnership" and SCHEDULES V, VI and VIII of the Supplement
to Offer to Purchase is incorporated herein by reference.
16. ADDITIONAL INFORMATION.
Item 16 is hereby amended to add the following as additional information:
The additional information concerning the Transaction which is set forth in
the Supplement to Offer to Purchase is incorporated herein by reference to
Exhibit 99.19 to the Schedule 14D-1.
17. MATERIAL TO BE FILED AS EXHIBITS.
Item 17 is hereby amended to add the following as additional information:
<TABLE>
<S> <C>
99.26 Supplement to Offer to Purchase dated August 26, 1996. (incorporated by reference to
Exhibit 99.19 to the Purchaser's Tender Offer Statement on Form 14D-1 filed with
the Securities and Exchange Commission on August 26, 1996).
99.27 Letter to Unitholders dated August 26, 1996 (incorporated by reference to Exhibit
99.20 to the Purchaser's Tender Offer Statement on Form 14D-1 filed with the
Securities and Exchange Commission on August 26, 1996).
99.28 Text of Press Release dated August 26, 1996 (incorporated by reference to Exhibit
99.21 to the Purchaser's Tender Offer Statement on Form 14D-1 filed with the
Securities and Exchange Commission on August 26, 1996).
99.29 Portfolio Projections, Valuations, Forecasts and Assumptions used by Robert A.
Stanger & Co., Inc. to the Partnership's Fairness Opinions and Summary Portfolio
Approval.
</TABLE>
5
<PAGE>
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that
the information set forth in this statement is true, complete and correct.
Dated: August 26, 1996
SHURGARD STORAGE CENTERS, INC.
By: /s/ HARRELL L. BECK
----------------------------------
Name: Harrell L. Beck
Title: Senior Vice President,
Chief Financial Officer
and Treasurer
IDS/SHURGARD INCOME GROWTH
PARTNERSHIP L.P. III
BY: SHURGARD ASSOCIATES L.P. III
By: /s/ CHARLES K. BARBO
-------------------------------
Name: Charles K. Barbo
Title: General Partner
SHURGARD ASSOCIATES L.P. III
By: /s/ CHARLES K. BARBO
----------------------------------
Name: Charles K. Barbo
Title: General Partner
SHURGARD GENERAL PARTNER, INC.
By: /s/ HARRELL L. BECK
----------------------------------
Name: Harrell L. Beck
Title: Treasurer
By: /s/ CHARLES K. BARBO
----------------------------------
Name: Charles K. Barbo
6
<PAGE>
EXHIBIT 99.29
PORTFOLIO PROJECTIONS, VALUATIONS, FORECASTS AND
ASSUMPTIONS CONSIDERED BY ROBERT A. STANGER & CO., INC. IN PREPARING THE
PARTNERSHIP'S FAIRNESS OPINIONS AND SUMMARY PORTFOLIO APPRAISAL
<PAGE>
In addition to the portfolio projections, valuations, forecasts and
assumptions described in the Partnership's fairness opinions and summary
portfolio appraisal report (the "Stanger Reports"), each prepared by Robert A.
Stanger & Co., Inc. ("Stanger") and included as Schedules II and III,
respectively, to Exhibit 99.6 of this Schedule 13E-3, Stanger also considered
the portfolio projections, valuations, forecasts, assumptions and other
information included herein in preparing the Stanger Reports.
The Partnership does not as a matter of course make public forecasts or
projections as to future performance or earnings. However, in analyzing the
value of the Partnerships under alternative methodologies, the General Partner
prepared the projections and forecasts included in this Exhibit 99.29. THE
PROJECTIONS AND FORECASTS WERE PREPARED SOLELY FOR INTERNAL USE AND NOT WITH A
VIEW TO PUBLIC DISCLOSURE OR COMPLIANCE WITH PUBLISHED GUIDELINES OF THE
COMMISSION REGARDING PROJECTIONS OR THE GUIDELINES ESTABLISHED BY THE AMERICAN
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS REGARDING PROJECTIONS AND ARE INCLUDED
IN THIS SCHEDULE 13E-3 ONLY BECAUSE SUCH INFORMATION WAS MADE AVAILABLE TO
STANGER AND ALEX. BROWN & SONS INCORPORATED. In addition, because the estimates
and assumptions underlying these projections and forecasts are inherently
subject to significant economic and competitive uncertainties and contingencies,
which are beyond the Partnership's control, there can be no assurance that the
projections and forecasts will be realized. Actual results may be higher or
lower than those set forth herein. Deloitte & Touche LLP, the Partnership's
independent auditor, has not examined, compiled or otherwise applied procedures
to the financial projections and forecasts included in this Schedule 13E-3, and,
accordingly, does not express an opinion or any other form of assurance on the
financial projections and forecasts.
<PAGE>
SUMMARY OF ALTERNATIVES
MARCH 31, 1996
<TABLE>
<CAPTION>
ASSUMPTIONS:
- ---------------------------------------------------------------------------------------------
<S> <C>
LIQUIDATION--
PURCHASE PRICE............................................................................. Appraised Value
SELLING COST (as a percentage of real estate value)........................................ 4.00%
MERGER--
CONSIDERATION.............................................................................. Net Asset Value
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
GOING CONCERN VALUE--
L.P. PREFERENCE RETURN..................... 9.00%
GENERAL AND ADMINISTRATIVE COST INCREASE
PER ANNUM................................. 3.50%
SELLING COST (as a percentage of real
estate value)............................. 4.00%
NUMBER OF YEARS............................ 5
<CAPTION>
IDS1 IDS2 IDS3
---------------------- ---------------------- ----------------------
LOW HIGH LOW HIGH LOW HIGH
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
DISCOUNT RATE.............................. 13.00% 12.00% 13.25% 12.25% 13.50% 12.50%
CAPITALIZATION RATE........................ 10.50% 10.00% 10.50% 10.00% 10.50% 10.00%
</TABLE>
SUMMARY OF PARTNERSHIP VALUATION
UNDER ALTERNATIVE METHODOLOGIES
<TABLE>
<CAPTION>
GOING CONCERN VALUE
------------------------------
IDS1 MERGER LIQUIDATION LOW HIGH NET BOOK VALUE
- --------------------------- -------------- -------------- -------------- -------------- ------------------
<S> <C> <C> <C> <C> <C>
Partnership................ $ 40,066,700 $ 39,391,700 $ 36,608,307 $ 39,238,247 $ 25,930,707
--General Partner........ 2,003,335 1,969,585 1,830,415 2,109,786 0
--Limited Partners....... 38,063,365 37,422,115 34,777,892 37,128,461 25,930,707
Per Unit(1)................ $ 257 $ 253 $ 235 $ 251 $ 175
<CAPTION>
IDS2
- ---------------------------
<S> <C> <C> <C> <C> <C>
Partnership................ $ 26,861,846 $ 26,271,146 $ 24,616,780 $ 26,448,456 $ 21,011,081
--General Partner........ 1,343,092 1,313,557 1,230,839 1,322,423 0
--Limited Partners....... 25,518,754 24,957,589 23,385,941 25,126,033 21,011,081
Per Unit(1)................ $ 222 $ 217 $ 203 $ 218 $ 183
<CAPTION>
IDS3
- ---------------------------
<S> <C> <C> <C> <C> <C>
Partnership................ $ 39,649,643 $ 38,544,143 $ 37,986,797 $ 40,988,872 $ 22,851,497
--General Partner........ 2,960,762 2,905,487 4,237,281 4,746,198 0
--Limited Partners....... 36,688,881 35,638,656 33,749,516 36,242,674 22,851,497
Per Unit(1)................ $ 308 $ 299 $ 283 $ 304 $ 192
</TABLE>
- ------------------------
(1) Based on the following number of outstanding Units for each Partnership:
IDS1 - 148,202
IDS2 - 115,110
IDS3 - 119,215
<PAGE>
GOING CONCERN VALUE (LOW)(1)
DECEMBER 31, 2000
<TABLE>
<CAPTION>
YEAR IDS1 IDS2 IDS3
- ----------------------------------------------------------------- -------------- -------------- --------------
<S> <C> <C> <C>
1996 Net Cashflow................................................ $ 3,564,305 $ 2,290,348 $ 2,205,240
1997 Net Cashflow................................................ 3,627,619 1,986,945 3,721,101
1998 Net Cashflow................................................ 3,737,239 2,531,508 3,912,809
1999 Net Cashflow................................................ 3,849,455 2,633,187 4,077,711
2000 Net Cashflow(2)............................................. 43,908,261 30,683,399 44,800,036
-------------- -------------- --------------
Net Present Value at 12/31/95.................................... $ 34,777,892 $ 23,385,941 $ 33,749,516
-------------- -------------- --------------
-------------- -------------- --------------
</TABLE>
GOING CONCERN VALUE (HIGH)(1)
DECEMBER 31, 2000
<TABLE>
<CAPTION>
YEAR IDSI IDSII IDSIII
- ---------------------------------------------------------------- -------------- -------------- ---------------
<S> <C> <C> <C>
1996 Net Cashflow............................................... $ 3,564,305 $ 2,290,348 $ 2,205,240
1997 Net Cashflow............................................... 3,627,619 1,986,945 3,721,101
1998 Net Cashflow............................................... 3,737,239 2,531,508 3,912,809
1999 Net Cashflow............................................... 3,849,455 2,633,187 4,077,711
2000 Net Cashflow(3)............................................ 45,728,605 32,185,159 46,940,326
-------------- -------------- ---------------
Net Present Value at 12/31/95................................... $ 37,128,461 $ 25,126,033 $ 36,242,674
-------------- -------------- ---------------
-------------- -------------- ---------------
NET BALANCE SHEET ADJUSTMENTS AT 12/31/95....................... $ 444,317 $ (3,115,712) $ (10,298,409)
PRINCIPAL AMORTIZATION (1996-2000).............................. 0 933,428 2,150,421
-------------- -------------- ---------------
NET BALANCE SHEET ADJUSTMENTS AT 12/31/00....................... $ 444,317 $ (2,182,284) $ (8,147,988)
-------------- -------------- ---------------
-------------- -------------- ---------------
</TABLE>
- ------------------------
(1) Represents Limited Partners' portion of Partnership's going concern value.
(2) Comprised of property cash flow in 2000 plus the purchase price for the
Partnership's assets, based upon 2001 property cash flow capitalized at
10.5% net of selling costs of 4% of real estate value plus or minus the net
balance sheet adjustments at 12/31/00 and a sales price of approximately
$446,000 for the excess land held by IDS3.
(3) Comprised of property cash flow in 2000 plus the purchase price for the
Partnership's assets, based upon 2001 property cash flow capitalized at 10%
net of selling costs of 4% of real estate value plus or minus the net
balance sheet adjustments at 12/31/00 and a sales price of approximately
$446,000 for the excess land held by IDS3.
<PAGE>
LIMITED PARTNER PREFERRED RETURN ANALYSIS
GOING CONCERN VALUE -- LOW
DECEMBER 31, 2000
<TABLE>
<CAPTION>
IDS1 IDS2 IDS3
--------------- --------------- ---------------
<S> <C> <C> <C>
REQUIRED DISTRIBUTIONS........................................ $ (76,235,679) $ (56,619,629) $ (53,274,069)
ACTUAL DISTRIBUTIONS.......................................... 75,297,390 50,580,825 69,680,675
--------------- --------------- ---------------
TOTAL......................................................... $ (938,289) $ (6,038,804) $ 16,406,606
--------------- --------------- ---------------
--------------- --------------- ---------------
GENERAL PARTNER SHARE......................................... $ 0 $ 0 $ 123,050
IDS SHARE..................................................... 0 0 1,230,495
SSCI SHARE.................................................... 0 0 1,107,446
</TABLE>
ACTUAL DISTRIBUTIONS TO LIMITED PARTNERS
<TABLE>
<CAPTION>
YEAR IDS1 IDS2 IDS3
- -------------------------------------------------------------- --------------- --------------- ---------------
<S> <C> <C> <C>
1988 Actual distribution...................................... $ 318,756 -- --
1989 Actual distribution...................................... 2,004,136 -- --
1990 Actual distribution...................................... 2,223,033 $ 1,372,551 $ 77,686
1991 Actual distribution...................................... 2,223,033 1,798,591 685,323
1992 Actual distribution...................................... 2,223,033 1,798,591 1,555,516
1993 Actual distribution...................................... 2,246,190 1,798,591 1,825,475
1994 Actual distribution...................................... 2,524,069 1,816,578 2,123,512
1995 Actual distribution...................................... 2,848,260 1,870,536 2,235,276
1996 Net cashflow............................................. 3,564,305 2,290,348 2,205,240
1997 Net cashflow............................................. 3,627,619 1,986,945 3,721,101
1998 Net cashflow............................................. 3,737,239 2,531,508 3,912,809
1999 Net cashflow............................................. 3,849,455 2,633,187 4,077,711
2000 Net cashflow............................................. 43,908,261 30,683,399 47,261,027
--------------- --------------- ---------------
TOTAL DISTRIBUTIONS........................................... $ 75,297,390 $ 50,580,825 $ 69,680,675
--------------- --------------- ---------------
--------------- --------------- ---------------
ACTUAL DISTRIBUTIONS THROUGH 3/31/96.......................... $ 17,328,364 $ 10,923,072 $ 9,061,607
</TABLE>
REQUIRED DISTRIBUTIONS TO LIMITED PARTNERS TO ACHIEVE PREFERRED RETURN
<TABLE>
<CAPTION>
YEAR IDS1 IDS2 IDS3
- -------------------------------------------------------------- --------------- --------------- ---------------
<S> <C> <C> <C>
1988.......................................................... -- -- --
1989.......................................................... $ 2,501,049 -- --
1990.......................................................... 3,334,732 $ 1,942,478 --
1991.......................................................... 3,334,732 2,589,970 --
1992.......................................................... 3,334,732 2,589,970 $ 2,011,748
1993.......................................................... 3,334,732 2,589,970 2,682,331
1994.......................................................... 3,334,732 2,589,970 2,682,331
1995.......................................................... 3,334,732 2,589,970 2,682,331
1996.......................................................... 3,334,732 2,589,970 2,682,331
1997.......................................................... 3,334,732 2,589,970 2,682,331
1998.......................................................... 3,334,732 2,589,970 2,682,331
1999.......................................................... 3,334,732 2,589,970 2,682,331
2000.......................................................... 40,387,310 31,367,418 32,486,006
--------------- --------------- ---------------
TOTAL REQUIRED DISTRIBUTIONS.................................. $ 76,235,679 $ 56,619,629 $ 53,274,069
--------------- --------------- ---------------
--------------- --------------- ---------------
LIMITED PARTNER CAPITAL CONTRIBUTIONS......................... $ 37,052,578 $ 28,777,448 $ 29,803,675
</TABLE>
<PAGE>
PREFERRED RETURN ANALYSIS
GOING CONCERN VALUE -- HIGH
DECEMBER 31, 2000
<TABLE>
<CAPTION>
IDS1 IDS2 IDS3
--------------- --------------- ---------------
<S> <C> <C> <C>
REQUIRED DISTRIBUTIONS........................................ $ (76,235,679) $ (56,619,629) $ (53,274,069)
ACTUAL DISTRIBUTIONS.......................................... 77,273,390 52,082,585 72,198,664
--------------- --------------- ---------------
TOTAL......................................................... $ 1,037,711 $ (4,537,044) $ 18,924,595
--------------- --------------- ---------------
--------------- --------------- ---------------
GENERAL PARTNER SHARE......................................... $ 7,783 $ 0 $ 141,934
IDS SHARE..................................................... 77,828 0 1,419,345
SSCI SHARE.................................................... 70,045 0 1,277,410
</TABLE>
ACTUAL DISTRIBUTIONS TO LIMITED PARTNERS
<TABLE>
<CAPTION>
YEAR IDS1 IDS2 IDS3
- ----------------------------------------------------------------- -------------- -------------- --------------
<S> <C> <C> <C>
1988 Actual distribution......................................... $ 318,756 -- --
1989 Actual distribution......................................... 2,004,136 -- --
1990 Actual distribution......................................... 2,223,033 $ 1,372,551 $ 77,686
1991 Actual distribution......................................... 2,223,033 1,798,591 685,323
1992 Actual distribution......................................... 2,223,033 1,798,591 1,555,516
1993 Actual distribution......................................... 2,246,190 1,798,591 1,825,475
1994 Actual distribution......................................... 2,524,069 1,816,578 2,123,512
1995 Actual distribution......................................... 2,848,260 1,870,536 2,235,276
1996 Net cashflow................................................ 3,564,305 2,290,348 2,205,240
1997 Net cashflow................................................ 3,627,619 1,986,945 3,721,101
1998 Net cashflow................................................ 3,737,239 2,531,508 3,912,809
1999 Net cashflow................................................ 3,849,455 2,633,187 4,077,711
2000 Net cashflow................................................ 45,884,261 32,185,159 49,779,016
-------------- -------------- --------------
TOTAL DISTRIBUTIONS.............................................. $ 77,273,390 $ 52,082,585 $ 72,198,664
-------------- -------------- --------------
-------------- -------------- --------------
ACTUAL DISTRIBUTIONS THROUGH 3/31/96............................. $ 17,328,364 $ 10,923,072 $ 9,061,607
</TABLE>
REQUIRED DISTRIBUTIONS TO LIMITED PARTNERS TO ACHIEVE PREFERRED RETURN
<TABLE>
<CAPTION>
YEAR IDS1 IDS2 IDS3
- ----------------------------------------------------------------- -------------- -------------- --------------
<S> <C> <C> <C>
1988............................................................. -- -- --
1989............................................................. $ 2,501,049 -- --
1990............................................................. 3,334,732 $ 1,942,478 --
1991............................................................. 3,334,732 2,589,970 --
1992............................................................. 3,334,732 2,589,970 $ 2,011,748
1993............................................................. 3,334,732 2,589,970 2,682,331
1994............................................................. 3,334,732 2,589,970 2,682,331
1995............................................................. 3,334,732 2,589,970 2,682,331
1996............................................................. 3,334,732 2,589,970 2,682,331
1997............................................................. 3,334,732 2,589,970 2,682,331
1998............................................................. 3,334,732 2,589,970 2,682,331
1999............................................................. 3,334,732 2,589,970 2,682,331
2000............................................................. 40,387,310 31,367,418 32,486,006
-------------- -------------- --------------
TOTAL REQUIRED DISTRIBUTIONS..................................... $ 76,235,679 $ 56,619,629 $ 53,274,069
-------------- -------------- --------------
-------------- -------------- --------------
LIMITED PARTNER CAPITAL CONTRIBUTIONS............................ $ 37,052,578 $ 28,777,448 $ 29,803,675
</TABLE>
<PAGE>
NET CASHFLOW
GOING CONCERN VALUE
DECEMBER 31, 2000
<TABLE>
<CAPTION>
GENERAL AND
PROPERTY ADMINISTRATIVE DEBT PRINCIPAL LIMITED PARTNERS'
IDS1 CASHFLOW EXPENSES SERVICE AMORTIZATION 95% SHARE OF CASHFLOW
- -------------- ----------- ------------- ----------- ------------ ---------------------------
<S> <C> <C> <C> <C> <C> <C>
1996.......... $ 3,962,000 $ (210,100) 0 0 $ 3,564,305
1997.......... 4,036,000 (217,454) 0 0 3,627,619
1998.......... 4,159,000 (225,064) 0 0 3,737,239
1999.......... 4,285,000 (232,942) 0 0 3,849,455
2000.......... 4,416,000 (241,095) 0 0 3,966,160
----------- ------------- ----------- ------------ ------------
TOTAL......... $20,858,000 $(1,126,654) $ 0 $ 0 $ 18,744,779
----------- ------------- ----------- ------------ ------------
----------- ------------- ----------- ------------ ------------
<CAPTION>
GENERAL AND
PROPERTY ADMINISTRATIVE DEBT PRINCIPAL LIMITED PARTNERS'
IDS2 CASHFLOW EXPENSES SERVICE(1) AMORTIZATION 95% SHARE OF CASHFLOW
- -------------- ----------- ------------- ----------- ------------ ---------------------------
<S> <C> <C> <C> <C> <C> <C>
1996.......... $ 2,923,000 $ (159,200) $ (274,700) $ (78,207) $ 2,290,348
1997.......... 3,051,000 (164,772) (239,851) (554,856) 1,986,945
1998.......... 3,146,000 (170,539) (218,645) (92,071) 2,531,508
1999.......... 3,259,000 (176,508) (210,817) (99,899) 2,633,187
2000.......... 3,358,000 (182,686) (202,321) (108,395) 2,721,368
----------- ------------- ----------- ------------ ------------
TOTAL......... $15,737,000 $ (853,705) $(1,146,334) $ (933,428) $ 12,163,357
----------- ------------- ----------- ------------ ------------
----------- ------------- ----------- ------------ ------------
<CAPTION>
GENERAL AND
PROPERTY ADMINISTRATIVE DEBT BUILDOUT PRINCIPAL LIMITED PARTNERS'
IDS3 CASHFLOW EXPENSES SERVICE(2) IN PROGRESS AMORTIZATION 95% SHARE OF CASHFLOW
- -------------- ----------- ------------- ----------- ----------- ------------ ---------------------------
<S> <C> <C> <C> <C> <C> <C>
1996.......... $ 4,790,000 $ (171,200) $ (857,813) $ 257,146 $(1,182,536) $ 2,205,240
1997.......... 5,074,000 (177,192) (765,066) (214,794) 3,721,101
1998.......... 5,282,000 (183,394) (747,882) (231,978) 3,912,809
1999.......... 5,462,000 (189,813) (729,325) (250,535) 4,077,711
2000.......... 5,634,000 (196,456) (709,282) (270,578) 4,234,800
----------- ------------- ----------- ----------- ------------ ------------
TOTAL......... $26,242,000 $ (918,054) $(3,809,368) $ 257,146 $(2,150,421) $ 18,151,660
----------- ------------- ----------- ----------- ------------ ------------
----------- ------------- ----------- ----------- ------------ ------------
</TABLE>
(1) Debt service and principal amortization are derived from IDS2's 12/31/95
audited financial statements (footnote D) and assumes the $470,000 line of
credit is repaid in May 1997.
(2) Debt service and principal amortization are based on IDS 3's 12/31/95
audited financial statements (footnote C, adjusted to reflect an increase of
$600,000 on the Partnership's line of credit to fund repayment in February
1996 of one of the seller notes) with 20-year amortization and an 8%
interest rate. Additionally, the remaining notes payable to sellers
totalling $674,000 are assumed to be paid off with excess Partnership
cashflow at their maturity (12/31/96) and accrue interest at their current
rate of 11.4%.
<PAGE>
DISTRIBUTION COMPARISON
(REIT SHARES ROUNDED
TO THE NEAREST WHOLE SHARE)
MARCH 31, 1996
<TABLE>
<CAPTION>
IDS1 IDS2 IDS3
--------- --------- ---------
<S> <C> <C> <C>
Current partnership distributions per unit............................................. $ 4.84 $ 4.06 $ 4.69
REIT distributions at current price ($25.00)........................................... $ 4.70 $ 4.23 $ 5.64
REIT distributions at $22.25 per share................................................. $ 5.64 $ 4.70 $ 6.58
REIT distributions at $27.75 per share................................................. $ 4.23 $ 3.76 $ 5.17
</TABLE>
<PAGE>
NET ASSET VALUE AND ALLOCATION RATIO
MARCH 31, 1996
<TABLE>
<CAPTION>
IDS1 IDS2 IDS3 TOTAL
-------------- -------------- -------------- ----------------
<S> <C> <C> <C> <C>
Appraised value of properties.................. $ 40,370,000 $ 30,520,000 $ 50,890,000 $ 121,780,000
BALANCE SHEET ADJUSTMENTS:
Cash and cash equivalents.................... 625,600 367,914 395,166 1,388,680
Other partnership assets..................... 342,800 193,561 358,552 894,913
Mortgages and Lines of credit................ 0 (3,319,503) (10,384,296) (13,703,799)
Other liabilities/trans. cost................ (1,271,700) (900,126) (1,609,779) (3,781,605)
-------------- -------------- -------------- ----------------
Total Balance Sheet Adjustments................ (303,300) (3,658,154) (11,240,357) (15,201,811)
-------------- -------------- -------------- ----------------
NET ASSET VALUE OF PARTNERSHIP................. $ 40,066,700 $ 26,861,846 $ 39,649,643 $ 106,578,189
-------------- -------------- -------------- ----------------
-------------- -------------- -------------- ----------------
Percentage of aggregate net asset
value......................................... 37.59% 25.20% 37.20% 100.00%
Net asset value per Unit....................... $ 257 $ 222 $ 308 $ 262
Number of shares potentially allocable to
Partnership at $25.00 per share............... 1,602,668 1,074,474 1,585,986 4,263,128
Allocation of shares to General Partner........ 80,133 53,724 118,430 252,288
Amount potentially allocable to Limited
Partners:
Shares....................................... 1,522,535 1,020,750 1,467,555 4,010,840
Cash......................................... $ 38,063,365 $ 25,518,754 $ 36,688,881 100,271,000
Allocation per $250 of original investment by
Limited Partners
Shares....................................... 10 9 12 10
Cash......................................... $ 257 $ 222 $ 308 $ 262
</TABLE>
<PAGE>
NET ASSET VALUE AND ALLOCATION RATIO
MARCH 31, 1996
ASSETS
<TABLE>
<CAPTION>
IDS1 IDS2 IDS3 TOTAL SJPII
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Cash and short-term investments......... $ 625,600 $ 367,914 $ 395,166 $ 1,388,680 $ 254,761
Real estate held for resale............ 0 0 201,835 201,835 0
Storage centers, net................... 26,120,200 24,748,826 33,903,059 84,772,085 7,935,077
Other assets........................... 342,800 193,561 358,552 894,913 144,904
General Partner contribution........... 0 0 0 0 0
Amortizable assets..................... 13,900 91,253 305,533 410,686 0
-------------- -------------- -------------- -------------- -------------
TOTAL ASSETS......................... $ 27,102,500 $ 25,401,554 $ 35,164,145 $ 87,668,199 $ 8,334,742
-------------- -------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------- -------------
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts payable and accrued
expenses............................ $ 178,800 $ 136,525 $ 242,042 $ 557,367 $ 43,947
Unearned rent and tenant deposits.... 153,100 133,501 180,491 467,092 50,585
Construction cost payable............ 0 0 257,146 257,146 0
Line of credit....................... 0 470,000 0 470,000 0
Notes payable........................ 0 2,849,503 10,384,296 13,233,799 0
Transaction cost and partnership
reserves............................ 939,800 630,100 930,100 2,500,000 0
-------------- -------------- -------------- -------------- -------------
TOTAL LIABILITIES........................ 1,271,700 4,219,629 11,994,075 17,485,404 94,532
-------------- -------------- -------------- -------------- -------------
Partners' equity (deficit):
Limited Partners..................... 24,539,260 20,122,829 22,011,567 66,673,655 8,157,808
General Partner...................... 1,291,540 1,059,096 1,158,504 3,509,140 82,402
-------------- -------------- -------------- -------------- -------------
TOTAL PARTNERS' EQUITY................... 25,830,800 21,181,925 23,170,070 70,182,795 8,240,210
-------------- -------------- -------------- -------------- -------------
TOTAL LIABILITIES & PARTNERS' EQUITY..... $ 27,102,500 $ 25,401,554 $ 35,164,145 $ 87,668,199 8,334,742
-------------- -------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------- -------------
NUMBER OF OUTSTANDING UNITS (based on
$250 per unit).......................... 148,202 115,110 119,215 382,527 --
-------------- -------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------- -------------
L.P. Equity Contributions................ $ 37,052,578 $ 28,777,448 $ 29,803,675
</TABLE>
