|
|
|
|
|
|
|
|
|
|
Previous: WINDSOR PARK PROPERTIES 7, SC 13E3, EX-99.(C)(1)(I), 2000-09-01 |
Next: WINDSOR PARK PROPERTIES 7, SC 13E3, EX-99.(C)(4), 2000-09-01 |
<PAGE>
EXHIBIT (c)(3)
August 29, 2000
Presentation to:
The Windsor Corporation
in its capacity as Managing General Partner of
Windsor Park Properties 5 & 7
Legg Mason Wood Walker
Incorporated
August 29, 2000
<PAGE>
Table of Contents August 29, 2000
=============================================================
<TABLE>
<S> <C>
I. Transaction Analysis
- Summary of Transaction
II. Summary of Analysis
- Summary Valuation
III. Windsor Park Properties 5 & 7 Historical & Projected Financial Statements & Analysis
- Repeated for WPP 5, WPP 7
- Historical & Projected Financial Statements
- Comparable Trading Multiples Analysis
- Discounted Cash Flow Analysis
- Liquidation Analysis
Addendum
A. Comparable Company Trading Analysis
B. Comparable Company Price Volume Graphs
C. Comparable Company Profiles
D. FFO Current / Forward Multiples Analysis
E. Sensitivity Analysis
</TABLE>
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
<PAGE>
August 29, 2000
The managing general partner (the "Managing General Partner") of Windsor
Park Properties 5, A California Limited Partnership, and Windsor Park Properties
7, A California Limited Partnership, (together the "Partnerships") has requested
Legg Mason Wood Walker, Incorporated ("Legg Mason") to provide a written opinion
as to the fairness to the Limited Partners of each Partnership from a financial
point of view, of the aggregate consideration to be paid by N'Tandem Trust in
the sale of the properties in which the Partnership holds an interest to
N'Tandem Trust for cash; on terms and conditions more fully set forth in
agreements among the Partnerships and N'Tandem Trust.
It is recognized that Legg Mason was retained to render financial advice
solely to the Managing General Partner, and that the engagement of Legg Mason is
not, and shall not be deemed to be, on behalf of, and is not intended to confer
rights or benefits upon the Partnerships' affiliates or upon any other person or
entity. Legg Mason's opinion was directed solely to the Managing General
Partner. Legg Mason's presentation is not to be quoted or referred to, in whole
or in part, in any registration statement, prospectus or proxy statement, or in
any other document used in connection with any offering or sale of securities,
nor shall this presentation be used for any other purposes, without the prior
written consent of Legg Mason, provided that this presentation may be made
available in its entirety to the Managing General Partner.
In connection with our review, we relied, without independent verification,
on the accuracy and completeness of all information that was publicly available,
supplied or otherwise communicated to Legg Mason by the Managing General Partner
and we have further relied upon the assurances of the Managing General Partner
and management of the Partnerships that they are unaware of any facts that would
make the information provided to us incomplete or misleading. Legg Mason assumed
that the financial forecasts (and the assumptions and bases thereof) examined by
it were reasonably prepared and reflected the best currently available estimates
and good faith judgments of the Managing General Partner's management as to the
future performance of the Partnerships. Legg Mason also assumed that the
appraisals that were provided were reasonably prepared by the appraiser and
reflected the good faith judgments of the appraiser and did not take any
responsibility for their accuracy or completeness. Legg Mason has relied upon
these forecasts and does not in any respect assume any responsibility for the
accuracy or completeness thereof. Legg Mason has not made an independent
evaluation or appraisal of the assets or liabilities (contingent or otherwise)
of the Partnerships, nor other than as described in our opinion, has Legg Mason
been furnished with any such evaluations or appraisals. Our opinion is
necessarily based upon financial, economic, market and other conditions and
circumstances existing and disclosed to us on the date hereof. It is understood
that subsequent developments may affect the conclusions reached in our opinion,
and that we do not have any obligation to update, revise or reaffirm our
opinion.
This summary of information does not constitute our opinion and is
provided for informational purposes only. Our opinion is limited to the terms of
our opinion letter to you with regard to the sale. We believe that our analysis
should be considered as a whole, and that selecting portions of our analyses and
the factors we considered, without considering all analyses and factors, could
be misleading. The preparation of an opinion is a complex process and is not
necessarily susceptible to partial analysis or summary description. In our
analysis we made numerous assumptions where necessary with respect to industry
performance, general business and economic conditions, and other matters, many
of which are beyond the control of the Partnerships.
[LOGO OF LEGG MASON]Investment
Banking Windsor Park Properties
<PAGE>
August 29, 2000
Section I.
Transaction Analysis
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
1
<PAGE>
August 29, 2000
Transaction Analysis
==========================================================
Summary of Transaction - Windsor Park Properties 5
Transaction Participants:
N'Tandem Trust ("N'Tandem") - Buyer
Windsor Park Properties 5 ("WPP 5") - Seller
Consideration Offered by N'Tandem to the Limited Partners of WPP 5:
Cash offer of $23.77 per unit
Windsor Park Properties to be Purchased:
WPP 5 established in 1987, with initial capital raised of $24,472,900
(244,729 limited partnership units at $100 per unit)
Seven communities located in three states
2000E FFO $456,333/(1)/
2001E FFO $502,359/(1)/
Debt outstanding as of June 30, 2000, $3,350,900
Appraisal Market Value $9,409,000/(2)/
Appraisal Equity Value, $6,058,100/(2)/
Notes:
(1) FFO projections were derived from financial projections provided by the
Managing General Partner.
(2) Appraisal values provided by Whitcomb Real Estate, Inc.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
2
<PAGE>
August 29, 2000
Transaction Analysis
=====================================================
Summary of Transaction - Windsor Park Properties 7
Transaction Participants:
N'Tandem Trust ("N'Tandem") - Buyer
Windsor Park Properties 7 ("WPP 7") - Seller
Consideration Offered by N'Tandem to the Limited Partners of WPP 7:
Cash offer of $100.72 per unit
Windsor Park Properties to be Purchased:
WPP 7 established in 1990, with initial capital raised of $25,000,000
(250,000 limited partnership units at $100 per unit)
Ten communities located in four states
2000E FFO $1,517,470 (1)
2001E FFO $1,636,598 (1)
Debt outstanding as of June 30, 2000, $14,829,700
Appraisal Market Value $32,823,000 (2)
Appraisal Equity Value, $17,993,300 (2)
Notes:
(1) FFO projections were derived from projections provided by the Managing
General Partner.
(2) Appraisal values provided by Whitcomb Real Estate, Inc.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
3
<PAGE>
August 29,2000
Section II.
Summary of Analysis
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
4
<PAGE>
August 29,2000
Summary of Analysis
================================================================================
Summary Valuation - Windsor Park Properties 5
<TABLE>
<CAPTION>
Comparable Trading Multiples Analysis - 2000 WPP 5 FFO /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- ----------------
<S> <C> <C> <C>
High 4,118,879 17.84 23.77
-------------------------------------------------------------------------------------------------------------------
Mean $ 3,777,113 $ 16.36 $ 23.77
===================================================================================================================
Low 3,073,214 13.31 23.77
Comparable Trading Multiples Analysis - 2001 WPP 5 FFO /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- ----------------
High 4,161,178 18.02 23.77
-------------------------------------------------------------------------------------------------------------------
Mean $ 3,810,562 $ 16.51 $ 23.77
===================================================================================================================
Low 3,075,372 13.32 23.77
Comparable Trading Multiples Analysis - WPP 5 TTM EBITDA /(1)(2)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- ----------------
High 2,535,117 10.98 23.77
-------------------------------------------------------------------------------------------------------------------
Mean $ 1,994,296 $ 8.64 $ 23.77
===================================================================================================================
Low 1,512,083 6.55 23.77
Discounted Cash Flow Analysis - WPP 5 /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- ----------------
High 4,144,658 17.95 23.77
-------------------------------------------------------------------------------------------------------------------
Mean $ 3,627,564 $ 15.71 $ 23.77
===================================================================================================================
Low 2,834,494 12.28 23.77
Liquidation Analysis - WPP 5 /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- ----------------
High 5,329,462 23.09 23.77
-------------------------------------------------------------------------------------------------------------------
Mean $ 5,329,462 $ 23.09 $ 23.77
===================================================================================================================
Low 5,329,462 23.09 23.77
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Comparable companies include CPJ, MHC, SUI, UMH & ANL. Assumes 230,861 LP
Units outstanding.
(2) Less $22,800 in interest income and less $3,350,900 in debt.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
5
<PAGE>
August 29, 2000
Summary of Analysis
================================================================================
Summary Valuation - Windsor Park Properties 7
<TABLE>
<CAPTION>
Comparable Trading Multiples Analysis - 2000 WPP 7 FFO /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- -------------------
<S> <C> <C> <C>
High 11,445,613 75.27 100.72
-----------------------------------------------------------------------------------------------------------------------------
Mean $ 10,359,840 $ 68.13 $ 100.72
=============================================================================================================================
Low 8,123,589 53.42 100.72
Comparable Trading Multiples Analysis - 2001 WPP 7 FFO /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- --------------
High 11,312,602 74.39 100.72
-----------------------------------------------------------------------------------------------------------------------------
Mean $ 10,222,472 $ 67.22 $ 100.72
=============================================================================================================================
Low 7,936,628 52.19 100.72
Comparable Trading Multiples Analysis - WPP 7 TTM EBITDA /(1)(2)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- --------------
High 6,341,863 41.70 100.72
-----------------------------------------------------------------------------------------------------------------------------
Mean $ 4,240,116 $ 27.88 $ 100.72
=============================================================================================================================
Low 2,366,134 15.56 100.72
Discounted Cash Flow Analysis - WPP 7 /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- --------------
High 13,738,745 90.35 100.72
-----------------------------------------------------------------------------------------------------------------------------
Mean $ 12,155,345 $ 79.93 $ 100.72
=============================================================================================================================
Low 9,718,252 63.91 100.72
Liquidation Analysis - WPP 7 /(1)/
LP Equity Per LP Unit Per LP Unit
Value Value Consideration
------------ ------------- --------------
High 15,036,063 98.88 100.72
-----------------------------------------------------------------------------------------------------------------------------
Mean $ 15,036,063 $ 98.88 $ 100.72
=============================================================================================================================
Low 15,036,063 98.88 100.72
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Comparable companies include CPJ, MHC, SUI, UMH & ANL. Assumes 152,068 LP
Units outstanding.
(2) Less $7,300 in interest income and less $14,829,700 in debt.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
6
<PAGE>
August 29, 2000
Section III.
Windsor Park Properties 5 Historical & Projected
Financial Statements
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
7
<PAGE>
August 29, 2000
Windsor Park Properties Historical & Projected Financial Statements
===================================================
Historical Income Statements - WPP 5
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
For the Years Ended December 31,
-------------------------------------------------------------------------------
% of Total % of Total % of Total % of Total
1996 Revenue 1997 Revenue 1998 Revenue 1999 Revenue
-------- ---------- -------- ---------- --------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $436,300 76.8% $470,700 82.3% $ 527,800 79.8% $544,900 74.0%
Equity in earnings (losses) of joint ventures 83,100 14.6 68,600 12.0 102,700 15.5 155,300 21.1
and limited partnerships
Interest 34,400 6.1 19,900 3.5 20,700 3.1 19,200 2.6
Other 14,200 2.5 12,400 2.2 10,200 1.5 16,800 2.3
-------- -------- -------- ------- --------- ------- -------- -------
Total revenues $568,000 100.0 $571,600 100.0 $ 661,400 100.0 $736,200 100.0
Operating costs and expenses:
Property operating $292,800 51.5 $266,000 46.5 $ 253,500 38.3 $246,000 33.4
Interest 102,100 18.0 104,600 18.3 103,100 15.6 112,000 15.2
Depreciation and amortization 106,800 18.8 108,100 18.9 114,000 17.2 99,800 13.6
General and administrative: -
Related parties 50,800 8.9 46,600 8.2 24,400 3.7 20,600 2.8
Other 39,100 6.9 37,100 6.5 68,100 10.3 92,400 12.6
-------- -------- -------- ------- --------- ------- -------- -------
Total operating costs and expenses $591,600 104.2 $562,400 98.4 $ 563,100 85.1 $570,800 77.5
EBT $(23,600) (4.2) $ 9,200 1.6 $ 98,300 14.9 $165,400 22.5
----------------------------------------------------------------------------------------------------------------------------------
EBT $(23,600) (4.2)% $ 9,200 1.6% $ 98,300 14.9% $165,400 22.5%
Add: depreciation and amortization from 119,550 21.0 138,714 24.3 143,241 21.7 145,096 19.7
joint ventures and limited partnerships
Add: interest expense from joint ventures 185,979 32.7 206,034 36.0 211,940 32.0 201,413 27.4
and limited partnerships
Add: depreciation and amortization expense 106,800 18.8 108,100 18.9 114,000 17.2 99,800 13.6
Add: interest expense 102,100 18.0 104,600 18.3 103,100 15.6 112,000 15.2
----------------------------------------------------------------------------------------------------------------------------------
EBITDA $490,829 86.4 $566,648 99.1 $ 670,581 101.4 $723,709 98.3
----------------------------------------------------------------------------------------------------------------------------------
Less: interest expense 102,100 18.0 104,600 18.3 103,100 15.6 112,000 15.2
Less: interest expense from joint ventures 185,979 32.7 206,034 36.0 211,940 32.0 201,413 27.4
and limited partnerships
----------------------------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $202,750 35.7% $256,014 44.8 $ 355,541 53.8% $410,296 55.7%
==================================================================================================================================
<CAPTION>
---------------------
June 30,
---------------------
TTM% % of Total
30-Jun-00 Revenue
----------- ---------
<S> <C> <C>
Revenues:
Rent and utilities $ 562,700 77.7%
Equity in earnings (losses) of joint ventures 132,400 18.3
and limited partnerships
Interest 22,800 3.1
Other 6,300 0.9
--------- -----
Total revenues $ 724,200 100.0
Operating costs and expenses:
Property operating $ 268,200 37.0
Interest 118,200 16.3
Depreciation and amortization 104,100 14.4
General and administrative: -
Related parties 27,100 3.7
Other 97,500 13.5
--------- -----
Total operating costs and expenses $ 615,100 84.9
EBT $ 109,100 15.1
---------------------------------------------------------------------------
EBT $ 109,100 15.1%
Add: depreciation and amortization from 145,582 20.1
joint ventures and limited partnerships
Add: interest expense from joint ventures 198,929 27.5
and limited partnerships
Add: depreciation and amortization expense 104,100 14.4
Add: interest expense 118,200 16.3
---------------------------------------------------------------------------
EBITDA $ 675,911 93.3
---------------------------------------------------------------------------
Less: interest expense 118,200 16.3
Less: interest expense from joint ventures 198,929 27.5
and limited partnerships
---------------------------------------------------------------------------
Funds from Operations (FFO) $ 358,782 49.5%
===========================================================================
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
8
<PAGE>
August 29, 2000
Windsor Park Properties Historical & Projected Financial Statements
===================================================
Projected Income Statements - WPP 5
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
For the Years Ending December 31,
--------------------------------------------------------------------------------
% of Total % of Total % of Total % of Total
2000P Revenue 2001P Revenue 2002P Revenue 2003P Revenue
-------- ---------- -------- ---------- -------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $561,247 72.2% $578,084 70.8% $595,427 69.4% $613,290 68.1%
Equity in earnings (losses) of joint ventures
and limited partnerships 179,554 23.1 200,316 24.5 223,273 26.0 246,112 27.3
Interest 19,776 2.5 20,369 2.5 20,980 2.4 21,610 2.4
Other 17,304 2.2 17,823 2.2 18,358 2.1 18,909 2.1
-------- ------- -------- ------- -------- ------- -------- -------
Total revenues $777,881 100.0 $816,592 100.0 $858,038 100.0 $899,921 100.0
Operating costs and expenses:
Property operating $253,380 32.6 $260,981 32.0 $268,811 31.3 $276,875 30.8
Interest 96,556 12.4 93,417 11.4 90,380 10.5 87,443 9.7
Depreciation and amortization 110,022 14.1 111,122 13.6 112,233 13.1 113,355 12.6
General and administrative:
Related parties 21,630 2.8 22,712 2.8 23,847 2.8 25,039 2.8
Other 97,020 12.5 101,871 12.5 106,965 12.5 112,313 12.5
-------- ------- -------- ------- -------- ------- -------- -------
Total operating costs and expenses $578,608 74.4 $590,103 72.3 $602,236 70.2 $615,025 68.3
EBT (before extraordinary items) $199,273 25.6 $226,489 27.7 $255,802 29.8 $284,896 31.7
EBT $199,273 205.4 $226,489 27.7 $255,802 29.8 $284,896 31.7
Capital expenditures $ 54,243 7.0 $ 55,823 6.8 $ 57,403 6.7 $ 58,983 6.6
----------------------------------------------------------------------------------------------------------------------------------
EBT $199,273 25.6% $226,489 27.7% $255,802 29.8% $284,896 31.7%
Add: depreciation and amortization from joint
ventures and limited partnerships 147,038 18.9 164,748 20.2 170,250 19.8 175,978 19.6
Add: interest expense from joint ventures
and limited partnerships 191,477 24.6 92,313 11.3 86,648 10.1 81,488 9.1
Add: depreciation and amortization expense 110,022 14.1 111,122 13.6 112,233 13.1 113,355 12.6
Add: interest expense 96,556 12.4 93,417 11.4 90,380 10.5 87,443 9.7
----------------------------------------------------------------------------------------------------------------------------------
EBITDA $744,366 95.7 $688,088 84.3 $715,313 83.4 $743,160 82.6
----------------------------------------------------------------------------------------------------------------------------------
Less: interest expense 96,556 12.4 93,417 11.4 90,380 10.5 87,443 9.7
Less: interest expense from joint ventures
and limited partnerships 191,477 24.6 92,313 11.3 86,648 10.1 81,488 9.1
----------------------------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $456,333 58.7% $502,359 61.5% $538,285 62.7% $574,229 63.8%
==================================================================================================================================
<CAPTION>
--------------------
% of Total
2004P Revenue
-------- ----------
<S> <C> <C>
Revenues:
Rent and utilities $631,688 67.0%
Equity in earnings (losses) of joint ventures 268,876 28.5
and limited partnerships
Interest 22,258 2.4
Other 19,476 2.1
-------- ------
Total revenues $942,298 100.0
Operating costs and expenses:
Property operating $285,181 30.3
Interest 84,600 9.0
Depreciation and amortization 114,489 12.1
General and administrative:
Related parties 26,291 2.8
Other 117,928 12.5
-------- ------
Total operating costs and expenses $628,489 66.7
EBT (before extraordinary items) $313,809 33.3
EBT $313,809 33.3
Capital expenditures $ 60,562 6.4
----------------------------------------------------------------------
EBT $313,809 33.3%
Add: depreciation and amortization from joint 181,941 19.3
ventures and limited partnerships
Add: interest expense from joint ventures 76,789 8.1
and limited partnerships
Add: depreciation and amortization expense 114,489 12.1
Add: interest expense 84,600 9.0
----------------------------------------------------------------------
EBITDA $771,628 81.9
----------------------------------------------------------------------
Less: interest expense 84,600 9.0
Less: interest expense from joint ventures 76,789 8.1
and limited partnerships
----------------------------------------------------------------------
Funds from Operations (FFO) $610,239 64.8%
======================================================================
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
9
<PAGE>
August 29, 2000
Windsor Park Properties Historical & Projected Financial Statements
===================================================================
Historical Balance Sheets - WPP 5
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1998 1999
---------- ---------- ----------
<S> <C> <C> <C>
Assets:
Property held for investment $2,643,900 $2,604,300 $2,524,600
Investments in joint ventures 2,324,500 2,162,800 2,052,500
Cash and cash equivalents 376,900 482,700 543,200
Deferred financing costs, net 42,800 33,800 24,700
Other assets 29,000 21,400 106,700
---------- ---------- ----------
Total assets $5,417,100 $5,305,000 $5,251,700
========== ========== ==========
Liabilities and Partners' Equity
Liabilities:
Mortgage notes payable $1,097,000 $1,097,000 $1,097,000
Accounts payable 4,900 900 --
Accrued expenses 19,400 71,200 66,900
Tenant deposits and other liabilities 34,900 28,600 33,100
Due to General Partner and affiliates 21,000 7,100 39,500
---------- ---------- ----------
Total liabilities $1,177,200 $1,204,800 $1,236,500
Partners' equity:
Limited partners $4,218,000 $4,079,300 $3,994,600
General partners 21,900 20,900 20,600
---------- ---------- ----------
Total partners' equity $4,239,900 $4,100,200 $4,015,200
Total liabilities and partners' equity $5,417,100 $5,305,000 $5,251,700
========== ========== ==========
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
[LOGO of LEGG MASON] Investment Windsor Park Properties
Banking
10
<PAGE>
August 29, 2000
Windsor Park Properties 5 Analysis
[LOGO of LEGG MASON] Investment Windsor Park Properties
Banking
11
<PAGE>
August 29, 2000
Windsor Park Properties 5 Analysis
==============================================================
Comparable Trading Multiples Analysis - Methodology Utilized
. Calculate trading multiples of 2000 and 2001 Funds from Operations
("FFO") and Trailing Twelve Months ("TTM") EBITDA for comparable
publicly traded REITs (comparable companies include CPJ, MHC, SUI, UMH
and ANL).
. Add 50.0% of G&A expense as a synergy in respective year, assuming
sale of WPP 5 to a REIT.
. Adjust the calculated trading multiples by 20.0% to arrive at Legg
Mason's selected multiples.
. Per unit valuation calculated by applying the selected multiples to
the WPP 5 forecasted FFO for 2000 and 2001 and TTM EBITDA, subtracting
the 1.0% General Partner share and then dividing by the number of
Limited Partner units outstanding./(1)/
. Total Limited Partner value calculated by applying the selected
multiples to the WPP 5's forecasted FFO for 2000 and 2001 and TTM
EBITDA and subtracting the 1.0% General Partner share.
Notes:
(1) 230,861 LP units outstanding.
[LOGO of LEGG MASON] Investment Windsor Park Properties
Banking
12
<PAGE>
August 29, 2000
Windsor Park Properties 5 Analysis
=================================================================
Comparable Trading Multiples Analysis
Comparable Trading Multiples Analysis - 2000 WPP 5 FFO/(1)/
<TABLE>
<CAPTION>
Add: Interest Selected Transaction Net Other Total
2000 FFO + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ + Assets/(1)/ = Equity Value -
---------- -------------- ----------- ------------- -------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
High 456,333 59,325 19,776 8.3 298,337 351,300 4,160,484
----------------------------------------------------------------------------------------------------------------------
Mean $ 456,333 $ 59,325 $ 19,776 7.6 $ 283,953 $ 351,300 $ 3,815,266
----------------------------------------------------------------------------------------------------------------------
Low 456,333 59,325 19,776 6.1 254,327 351,300 3,104,257
<CAPTION>
Less: LP Units Per LP Unit
1% GP share/(6)/ / Outstanding/(7)/ = Value
---------------- ---------------- -----------
<S> <C> <C> <C>
High 41,605 230,861 17.84
-----------------------------------------------------------------
Mean $ 38,153 230,861 $ 16.36
-----------------------------------------------------------------
Low 31,043 230,861 13.31
</TABLE>
Comparable Trading Multiples Analysis - 2001 WPP 5 FFO/(1)/
<TABLE>
<CAPTION>
Add: Interest Selected Transaction Net Other Total
2001 FFO + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ + Assets/(1)/ = Equity Value -
---------- -------------- ----------- ------------- -------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
High 502,359 62,292 20,369 7.6 300,117 351,300 4,203,210
---------------------------------------------------------------------------------------------------------------------
Mean $ 502,359 $ 62,292 $ 20,369 7.0 $ 285,361 $ 351,300 $ 3,849,053
---------------------------------------------------------------------------------------------------------------------
Low 502,359 62,292 20,369 5.5 254,418 351,300 3,106,437
<CAPTION>
Less: LP Units Per LP Unit
1% GP share/(6)/ / Outstanding/(7)/ = Value
---------------- ---------------- -----------
<S> <C> <C> <C>
High 42,032 230,861 18.02
-----------------------------------------------------------------
Mean $ 38,491 230,861 $ 16.51
-----------------------------------------------------------------
Low 31,064 230,861 13.32
</TABLE>
Comparable Trading Multiples Analysis - WPP 5 TTM EBITDA/(1)/
<TABLE>
<CAPTION>
Add: Interest Selected Transaction Debt Net Other Total
TTM EBITDA + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ - Outstanding + Assets/(1)/ = Equity Value
---------- -------------- ----------- ------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
High 675,911 62,300 22,800 8.1 231,680 3,350,900 351,300 2,560,724
----------------------------------------------------------------------------------------------------------------------------------
Mean $ 675,911 $ 62,300 $ 22,800 7.3 208,918 $ 3,350,900 $ 351,300 $ 2,014,440
----------------------------------------------------------------------------------------------------------------------------------
Low 675,911 62,300 22,800 6.6 188,623 3,350,900 351,300 1,527,357
<CAPTION>
Less: LP Units Per LP Unit
- 1% GP share/(6)/ / Outstanding/(7)/ = Value
---------------- ---------------- -----------
<S> <C> <C> <C>
High 25,607 230,861 10.98
-----------------------------------------------------------------
Mean $ 20,144 230,861 $ 8.64
-----------------------------------------------------------------
Low 15,274 230,861 6.55
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg
Financial Markets and First Call analysts' estimates.
(1) Derived from financial projections provided by the Managing General Partner.
Comparable Companies include CPJ, MHC, SUI, UMH and ANL.
(2) Added 50.0% G&A expense as a synergy assuming sale of partnership to a REIT.
(3) Interest income deducted due to cash distribution to the Limited Partners
upon completion of the transaction.
(4) Selected multiples calculated on pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(5) Transaction expenses calculated as 4.0% of equity value plus debt
outstanding in 2000 & 2001 FFO analyses and as 4.0% of equity value in TTM
EBITDA analysis.
(6) Less 1.0% in General Partner share, provided for by the Agreement of Limited
Partnership and confirmed by the Managing General Partner.
(7) Assumes 230,861 LP units outstanding.
[LOGO OF LEGG MASON] Investment
Banking Windsor Park Properties
13
<PAGE>
August 29, 2000
Windsor Park Properties 5 Analysis
================================================================
Discounted Cash Flow Analysis - Methodology Utilized
. Discount projected annual aggregate free cash flow available to
all equity interests to the present (January 1, 2000) at discount
rates of 14.6% to 19.2%, which represents Legg Mason's estimate of
the cost of equity. This discount rate was calculated by dividing
1 by the comparable trailing twelve trading month multiples
(discounted 20.0%) plus the growth rate of WPP 5.
. Calculate the aggregate terminal value in year 2004 available to
all equity interests by applying discounted terminal trading
multiples of 6.2x to 8.7x to projected year 2004 FFO.
. Discount the aggregate terminal value to the present (January 1,
2000) at discount rates of 14.6% to 19.2%.
. Add the present value of pro-rata cash flow and the present value
of pro-rata terminal value to arrive at the total equity value
available to present (January 1, 2000) equity interests.
. Subtract the 1.0% General Partner share and divide the remaining
equity value available by the Limited Partner units outstanding
(230,861) to arrive at the estimated value per Limited Partner
unit of WPP 5.
[LOGO OF LEGG MASON] Investment
Banking Windsor Park Properties
14
<PAGE>
August 29, 2000
Windsor Park Properties 5 Analysis
================================================================
Discounted Cash Flow Analysis
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
Year 1 Year 2 Year 3 Year 4 Year 5
2000/(1)/ 2001/(1)/ 2002/(1)/ 2003/(1)/ 2004/(1)/
---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
EBITDA $744,366 $688,088 $715,313 $743,160 $771,628
Less: interest expense 288,033 185,730 177,028 168,931 161,389
Less: principal amortization - - - - -
Less: CAPEX 54,243 55,823 57,403 58,983 60,562
------------------------------------------------------------------------------------------------
Equity Free Cash Flow $402,090 $446,536 $480,882 $515,246 $549,677
------------------------------------------------------------------------------------------------
Add: CAPEX 54,243 55,823 57,403 58,983 60,562
Add: principal amortization - - - - -
Add: 50% G&A expense 59,325 62,292 65,406 68,676 72,110
------------------------------------------------------------------------------------------------
FFO $515,658 $564,650 $603,691 $642,905 $682,348
------------------------------------------------------------------------------------------------
Shares issued June 30, 2000 230,861 230,861 230,861 230,861 230,861
------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Terminal Less: Equity
2004 Pre-Tax Terminal Selling Net Other Terminal Discount
FFO Value/(2)/ Value Expenses/(3)/ Assets Value Rate/(4)/
--------- ---------- ----------- ------------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
$ 682,348 8.7 $ 5,905,526 $ 277,693 $ 351,300 $ 5,276,534 14.6%
$ 682,348 7.7 $ 5,246,999 $ 257,937 $ 351,300 $ 4,637,762 14.6%
$ 682,348 6.2 $ 4,219,786 $ 227,121 $ 351,300 $ 3,641,365 14.6%
$ 682,348 8.7 $ 5,905,526 $ 277,693 $ 351,300 $ 5,276,534 16.0%
$ 682,348 7.7 $ 5,246,999 $ 257,937 $ 351,300 $ 4,637,762 16.0%
$ 682,348 6.2 $ 4,219,786 $ 227,121 $ 351,300 $ 3,641,365 16.0%
$ 682,348 8.7 $ 5,905,526 $ 277,693 $ 351,300 $ 5,276,534 19.2%
$ 682,348 7.7 $ 5,246,999 $ 257,937 $ 351,300 $ 4,637,762 19.2%
$ 682,348 6.2 $ 4,219,786 $ 227,121 $ 351,300 $ 3,641,365 19.2%
<CAPTION>
Present Value of:
----------------------------------------
Cash Terminal Equity Less: LP Units Equity Value /
Flows + Value = Value 1% GP share Outstanding = LP Unit
----------- ----------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
$ 1,700,729 $ 2,674,790 $ 4,375,519 $ 43,755 230,861 $ 18.76
$ 1,700,729 $ 2,350,983 $ 4,051,712 $ 40,517 230,861 $ 17.37
$ 1,700,729 $ 1,845,888 $ 3,546,617 $ 35,466 230,861 $ 15.21
$ 1,650,759 $ 2,511,734 $ 4,162,493 $ 41,625 230,861 $ 17.85
$ 1,650,759 $ 2,207,666 $ 3,858,425 $ 38,584 230,861 $ 16.55
$ 1,650,759 $ 1,733,362 $ 3,384,121 $ 33,841 230,861 $ 14.51
$ 1,550,310 $ 2,195,382 $ 3,745,692 $ 37,457 230,861 $ 16.06
$ 1,550,310 $ 1,929,611 $ 3,479,921 $ 34,799 230,861 $ 14.92
$ 1,550,310 $ 1,515,046 $ 3,065,355 $ 30,654 230,861 $ 13.15
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Derived from financial projections provided by the Managing General Partner.
Comparable Companies include CPJ, MHC, SUI, UMH and ANL.
(2) Selected multiples calculated on pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(3) Transaction expenses calculated as 5.0% of terminal equity value plus debt
outstanding.
(4) Discount rate calculated as 1 divided by terminal multiple plus the growth
rate.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
15
<PAGE>
August 29, 2000
Windsor Park Properties 5 Analysis
================================================================
Liquidation Analysis - Methodology Utilized
. Applied a 10.0% discount to the appraisal values of the five
properties in which WPP 5 holds a minority interest. Subtracted
debt outstanding and transaction expenses from the discounted
appraisal values for each property. Appraisal values were
determined and provided by Whitcomb Real Estate, Inc.
. Subtracted the 1.0% General Partner share from the net equity
value to arrive at the total Limited Partner value.
. Divided remaining equity value by the number of Limited Partner
units outstanding (230,861 units) to arrive at a per Limited
Partner unit value.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
16
<PAGE>
August 29, 2000
Windsor Park Properties 5 Analysis
================================================================
Liquidation Analysis
<TABLE>
<CAPTION>
Percent Appraised Less: Debt Equity Transaction Net
Property Ownership Value/(1)/ Discount/(3)/ Outstanding/(2)/ Value Expenses/(4)/ Other Assets/(2)/
-------------------- --------- ---------- ------------- ---------------- ---------- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Lakeside 100.0% $1,660,000 -- $ -- $1,660,000 $ -- $ --
Plantation 100.0 1,900,000 -- 1,097,000 803,000 -- --
T&C Estates 42.0 2,562,000 256,200 651,000 1,654,800 -- --
Rancho Margate 26.0 1,664,000 166,400 928,800 568,800 -- --
Apache East 9.0 193,800 19,380 97,000 77,420 -- --
Denali Park Estates 9.0 337,200 33,720 168,800 134,680 -- --
Winter Haven 26.0 1,092,000 109,200 408,300 574,500 -- --
------- ---------- ---------- ---------- ---------- ---------- ----------
Total -- $9,409,000 $ 584,900 $3,350,900 $5,473,200 $ 441,205 $ 351,300
<CAPTION>
Net Equity Less: LP Units Per LP Unit
Property Value 1% GP Share Outstanding/(2)/ Value
----------------------- ---------- ----------- ---------------- ---------
<S> <C> <C> <C> <C>
Lakeside $ -- $ -- -- $ --
Plantation -- -- -- --
T&C Estates -- -- -- --
Rancho Margate -- -- -- --
Apache East -- -- -- --
Denali Park Estates -- -- -- --
Winter Haven -- -- -- --
---------- ---------- --------- ---------
Total $5,383,295 $ 53,833 230,861 $ 23.09
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Appraisal values provided by Whitcomb Real Estate, Inc.
(2) Amount of debt outstanding and net other assets provided by the Managing
General Partner. Assumes 152,068 LP Units outstanding.
(3) Applied a 10.0% discount to the two properties in which WPP 7 holds a
minority interest and applied a 5.0% discount to the three properties in
which WPP 7 holds a majority interest.
(4) Calculated as 5.0% of discounted appraisal value. Does not include general &
administrative expenses of the Partnership during the liquidation period,
liquidation costs associated with a prolonged marketing period or the time
value of the proceeds from the sale of the properties.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
17
<PAGE>
Windsor Park Properties 7 Historical & Projected
Financial Statements
[LOGO OF LEGG MASON] Investment
Banking Windsor Park Properties
18
<PAGE>
August 29, 2000
Windsor Park Properties Historical & Projected Financial Statements
====================================================
Historical Income Statements - WPP 7
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
For the Years Ended December 31,
------------------------------------------------------------------------------------
% of Total % of Total % of Total
1996 Revenue 1997 Revenue 1998 Revenue 1999
---------- ---------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities 2,358,200 86.4% $2,475,500 91.5% $2,611,500 93.3% $2,759,800
Equity in earnings (losses) of joint ventures 264,400 9.7 156,300 5.8 145,300 5.2 182,800
and limited partnerships
Interest 81,700 3.0 40,400 1.5 14,300 0.5 4,000
Other 23,700 0.9 32,300 1.2 29,400 1.0 28,900
---------- ----- ---------- ----- ---------- ----- ----------
Total revenues $2,728,000 100.0 $2,704,500 100.0 $2,800,500 100.0 $2,975,500
Operating costs and expenses:
Property operating $1,024,100 37.5 $1,105,600 40.9 $1,111,000 39.7 $1,170,800
Interest 658,800 24.1 693,700 25.6 661,800 23.6 647,600
Depreciation and amortization 582,100 21.3 601,000 22.2 610,000 21.8 617,900
General and administrative:
Related parties 73,700 2.7 70,000 2.6 42,900 1.5 26,200
Other 35,900 1.3 36,400 1.3 65,300 2.3 91,900
---------- ----- ---------- ----- ---------- ----- ----------
Total operating costs and expenses $2,374,600 87.0 $2,506,700 92.7 $2,491,000 88.9 $2,554,400
EBT $ 353,400 13.0 $ 197,800 7.3 $ 309,500 11.1 $ 421,100
------------------------------------------------------------------------------------------------------------------------------------
EBT $ 353,400 13.0% $ 197,800 7.3% $ 309,500 11.1% $ 421,100
Add: depreciation and amortization from joint 329,555 12.1 382,246 14.1 408,419 14.6 412,131
ventures and limited partnerships
Add: interest expense from joint ventures 615,852 22.6 685,075 25.3 697,773 24.9 669,732
and limited partnerships
Add: depreciation and amortization expense 582,100 21.3 601,000 22.2 610,000 21.8 617,900
Add: interest expense 658,800 24.1 693,700 25.6 661,800 23.6 647,600
------------------------------------------------------------------------------------------------------------------------------------
EBITDA $2,539,707 93.1 $2,559,821 94.7 $2,687,492 96.0 $2,768,463
------------------------------------------------------------------------------------------------------------------------------------
Less: interest expense 658,800 24.1 693,700 25.6 661,800 23.6 647,600
Less: interest expense from joint ventures 615,852 22.6 685,075 25.3 697,773 24.9 669,732
and limited partnerships
------------------------------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $1,265,055 46.4% $1,181,046 43.7% $1,327,919 47.4% $1,451,131
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
---------------------------------- ----------------------------------
For the Years Ended December 31 June 30,
---------------------------------- ----------------------------------
% of Total TTM % of Total
Revenue 30-Jun-00 Revenue
----------- ----------- -----------
<S> <C> <C> <C>
Revenues:
Rent and utilities 92.8% $2,817,600 93.0%
Equity in earnings (losses) of joint ventures 6.1 174,800 5.8
and limited partnerships
Interest 0.1 7,300 0.2
Other 1.0 30,400 1.0
----- ---------- -----
Total revenues 100.0 $3,030,100 100.0
Operating costs and expenses:
Property operating 39.3 $1,237,500 40.8
Interest 21.8 680,000 22.4
Depreciation and amortization 20.8 614,800 20.3
General and administrative:
Related parties 0.9 27,100 0.9
Other 3.1 135,400 4.5
----- ---------- -----
Total operating costs and expenses 85.8 $2,694,800 88.9
EBT 14.2 $ 335,300 11.1
---------------------------------------------------------------------------------------------------------------------------
EBT 14.2% $ 335,300 11.1%
Add: depreciation and amortization from joint 13.9 413,125 13.6
ventures and limited partnerships
Add: interest expense from joint ventures 22.5 663,067 21.9
and limited partnerships
Add: depreciation and amortization expense 20.8 614,800 20.3
Add: interest expense 21.8 680,000 22.4
------------------------------------------------ --------- --------------------------------
EBITDA 93.0 $2,706,292 89.3
------------------------------------------------ --------- --------------------------------
Less: interest expense 21.8 680,000 22.4
Less: interest expense from joint ventures 22.5 663,067 21.9
and limited partnerships
------------------------------------------------ --------- --------------------------------
Funds from Operations (FFO) 48.8% $1,363,225 45.0%
================================================ ========= ================================
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
[LOGO OF LEGG MASON]Investment
Banking Windsor Park Properties
19
<PAGE>
August 29, 2000
Windsor Park Properties Historical & Projected Financial Statements
====================================================
Projected Income Statements - WPP 7
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
For the Years Ending December 31,
------------------------------------------------------------------------------
% of Total % of Total % of Total
2000P Revenue 2001P Revenue 2002P Revenue 2003P
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Rent and utilities $2,842,594 92.7% $2,927,872 91.4% $3,015,708 90.0% $3,106,179
Equity in earnings (losses) of joint ventures 188,834 6.2 241,243 7.5 300,045 9.0 358,531
and limited partnerships
Interest 4,080 0.1 4,202 0.1 4,328 0.1 4,458
Other 29,478 1.0 30,362 0.9 31,273 0.9 32,211
---------- ----- ---------- ----- ---------- ----- ----------
Total revenues $3,064,986 100.0 $3,203,679 100.0 $3,351,354 100.0 $3,501,379
Operating costs and expenses:
Property operating $1,205,924 39.3 $1,242,102 38.8 $1,279,365 38.2 $1,317,746
Interest 633,692 20.7 620,082 19.4 620,082 18.5 620,082
Depreciation and amortization 625,887 20.4 633,977 19.8 642,172 19.2 650,473
General and administrative:
Related parties 27,510 0.9 37,118 1.2 38,974 1.2 40,922
Other 96,495 3.1 82,636 2.6 86,768 2.6 91,107
---------- ----- ---------- ----- ---------- ----- ----------
Total operating costs and expenses $2,589,508 84.5 $2,615,915 81.7 $2,667,361 79.6 $2,720,330
EBT (before extraordinary items) $ 475,478 15.5 $ 587,764 18.3 $ 683,993 20.4 $ 781,049
EBT $ 475,478 15.5 $ 587,764 18.3 $ 683,993 20.4 $ 781,049
Capital expenditures $ 167,047 5.5 $ 171,913 5.4 $ 176,778 5.3 $ 181,644
--------------------------------------------------------------------------------------------------------------------------------
EBT $ 475,478 15.5% $ 587,764 18.3% $ 683,993 20.4% $ 781,049
Add: depreciation and amortization from joint 416,105 13.6 414,857 12.9 427,834 12.8 441,418
ventures and limited partnerships
Add: interest expense from joint ventures 643,071 21.0 560,974 17.5 554,275 16.5 547,664
and limited partnerships
Add: depreciation and amortization expense 625,887 20.4 633,977 19.8 642,172 19.2 650,473
Add: interest expense 633,692 20.7 620,082 19.4 620,082 18.5 620,082
--------------------------------------------------------------------------------------------------------------------------------
EBITDA $2,794,233 91.2 $2,817,654 88.0 $2,928,356 87.4 $3,040,685
--------------------------------------------------------------------------------------------------------------------------------
Less: interest expense 633,692 20.7 620,082 19.4 620,082 18.5 620,082
Less: interest expense from joint ventures 643,071 21.0 560,974 17.5 554,275 16.5 547,664
and limited partnerships
--------------------------------------------------------------------------------------------------------------------------------
Funds from Operations (FFO) $1,517,470 49.5% $1,636,598 51.1% $1,753,999 52.3% $1,872,940
================================================================================================================================
<CAPTION>
% of Total % of Total
Revenue 2004P Revenue
----------- ---------- -----------
<S> <C> <C> <C>
Revenues:
Rent and utilities 88.7% $3,199,365 86.0%
Equity in earnings (losses) of joint ventures 10.2 482,334 13.0
and limited partnerships
Interest 0.1 4,592 0.1
Other 0.9 33,178 0.9
----- ---------- -----
Total revenues 100.0 $3,719,469 100.0
Operating costs and expenses:
Property operating 37.6 $1,357,278 36.5
Interest 17.7 620,082 16.7
Depreciation and amortization 18.6 658,881 17.7
General and administrative:
Related parties 1.2 42,968 1.2
Other 2.6 95,662 2.6
----- ---------- -----
Total operating costs and expenses 77.7 $2,774,871 74.6
EBT (before extraordinary items) 22.3 $ 944,598 25.4
EBT 22.3 $ 944,598 25.4
Capital expenditures 5.2 $ 186,509 5.0
------------------------------------------------------- ------------------------------------
EBT 22.3% $ 944,598 25.4%
Add: depreciation and amortization from joint 12.6 455,636 12.3
ventures and limited partnerships
Add: interest expense from joint ventures 15.6 541,139 14.5
and limited partnerships
Add: depreciation and amortization expense 18.6 658,881 17.7
Add: interest expense 17.7 620,082 16.7
------------------------------------------------------- -------------------------------------
EBITDA 86.8 $3,220,337 86.6
------------------------------------------------------- -------------------------------------
Less: interest expense 17.7 620,082 16.7
Less: interest expense from joint ventures 15.6 541,139 14.5
and limited partnerships
------------------------------------------------------- --------------------------------------
Funds from Operations (FFO) 53.5% $2,059,115 55.4%
======================================================= ======================================
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
[LOGO OF LEGG MASON]Investment
Banking Windsor Park Properties
20
<PAGE>
August 29, 2000
Windsor Park Properties Historical & Projected Financial Statements
===================================================================
Historical Balance Sheets - WPP 7
--------------------------------------------
December 31,
--------------------------------------------
1997 1998 1999
------------ ------------ ------------
Assets:
Property held for investment $ 11,259,400 $ 10,807,400 $ 10,396,000
Investments in joint ventures 5,203,800 4,756,300 4,347,300
Cash and cash equivalents 478,700 183,600 195,200
Deferred financing costs, net 196,000 153,500 111,100
Other assets 59,200 42,800 130,800
------------ ------------ ------------
Total assets $ 17,197,100 $ 15,943,600 $ 15,180,400
============ ============ ============
Liabilities and Partners' Equity
Liabilities:
Mortgage notes payable $ 7,420,000 $ 7,220,000 $ 7,220,000
Accounts payable 24,700 1,600 --
Accrued expenses 60,000 221,400 226,800
Tenant deposits and other
liabilities 115,200 46,300 111,300
Due to General Partner
and affiliates 98,700 27,800 45,100
------------ ------------ ------------
Total liabilities $ 7,718,600 $ 7,517,100 $ 7,603,200
Partners' equity:
Limited partners $ 9,518,700 $ 8,475,500 $ 7,633,900
General partners (40,200) (49,000) (56,700)
------------ ------------ ------------
Total partners' equity $ 9,478,500 $ 8,426,500 $ 7,577,200
Total liabilities and
partners' equity $ 17,197,100 $ 15,943,600 $ 15,180,400
============ ============ ============
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
21
<PAGE>
August 29, 2000
Windsor Park Properties 7 Analysis
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
22
<PAGE>
August 29, 2000
Windsor Park Properties 7 Analysis
=============================================================
Comparable Trading Multiples Analysis - Methodology Utilized
. Calculate trading multiples of 2000 and 2001 Funds from Operations
("FFO") and Trailing Twelve Months ("TTM") EBITDA for comparable
publicly traded REITs (comparable companies include CPJ, MHC, SUI, UMH
and ANL).
. Add 50.0% of G&A expense as a synergy in respective year, assuming sale
of WPP 7 to a REIT.
. Adjust the calculated trading multiples by 20.0% to arrive at Legg
Mason's selected multiples.
. Per unit valuation calculated by applying the selected multiples to the
WPP 7 forecasted FFO for 2000 and 2001 and TTM EBITDA, subtracting the
1.0% General Partner share and then dividing by the number of Limited
Partner units outstanding./(1)/
. Total Limited Partner value calculated by applying the selected
multiples to the WPP 7's forecasted FFO for 2000 and 2001 and TTM EBITDA
and subtracting the 1.0% General Partner share.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
23
<PAGE>
August 29, 2000
Windsor Park Properties 7 Analysis
======================================
Comparable Trading Multiples Analysis
Comparable Trading Multiples Analysis - 2000 WPP 7 FFO/(1)/
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
Add: Interest Selected Transaction Net Other Total
2000 FFO/(1)/ + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ + Assets/(1)/ = Equity Value
------------- ------------- ----------- ------------ ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
High 1,517,470 62,003 4,080 8.3 1,115,164 (373,000) 11,561,225
-----------------------------------------------------------------------------------------------------------------------
Mean $ 1,517,470 $ 62,003 $ 4,080 7.6 $ 1,069,466 $ (373,000) $ 10,464,485
-----------------------------------------------------------------------------------------------------------------------
Low 1,517,470 62,003 4,080 6.1 975,348 (373,000) 8,205,645
Comparable Trading Multiples Analysis - 2001 WPP 7 FFO/(1)/
Add: Interest Selected Transaction Net Other Total
2000 FFO/(1)/ + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ + Assets/(1)/ = Equity Value
------------- ------------- ----------- ------------ ------------ ----------- -------------
High 1,636,598 59,877 4,202 7.6 1,109,565 (373,000) 11,426,871
-----------------------------------------------------------------------------------------------------------------------
Mean $ 1,636,598 $ 59,877 $ 4,202 7.0 $ 1,063,685 $ (373,000) $ 10,325,729
-----------------------------------------------------------------------------------------------------------------------
Low 1,636,598 59,877 4,202 5.5 967,479 (373,000) 8,016,796
Comparable Trading Multiples Analysis - WPP 7 TTM EBITDA/(1)//(2)/
Add: Interest Selected Transaction Debt Net Other
TTM EBITDA + Synergies/(2)/ - Income/(3)/ x Multiple/(4)/ - Expenses/(5)/ - Outstanding + Assets/(1)/
------------- ------------- ----------- ------------ ------------ ----------- -------------
High 2,706,292 81,250 7,300 8.1 900,359 14,829,700 (373,000)
-----------------------------------------------------------------------------------------------------------------------
Mean $ 2,706,292 $ 81,250 $ 7,300 7.3 $ 811,902 $ 14,829,700 $ (373,000)
-----------------------------------------------------------------------------------------------------------------------
Low 2,706,292 81,250 7,300 6.6 733,031 14,829,700 (373,000)
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
Less: LP Units Per LP Unit
- 1% GP share/(6)/ = Outstanding/(7)/ = Value
----------------- --------------- -----------
115,612 152,068 75.27
--------------------------------------------------
104,645 152,068 $ 68.13
--------------------------------------------------
82,056 152,068 53.42
Less: LP Units Per LP Unit
- 1% GP share/(6)/ = Outstanding/(7)/ = Value
----------------- --------------- -----------
114,269 152,068 74.39
--------------------------------------------------
103,257 152,068 $ 67.22
--------------------------------------------------
80,168 152,068 52.19
Total Less: LP Units Per LP Unit
Equity Value - 1% GP share/(6)/ = Outstanding/(7)/ = Value
------------ ----------------- --------------- -----------
6,405,922 64,059 152,068 41.70
---------------------------------------------------------------------
$ 4,282,945 $ 42,829 152,068 $ 27.88
---------------------------------------------------------------------
2,390,035 23,900 152,068 15.56
---------------------------------------------------------------------
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Derived from projections provided by the Managing General Partner.
Comparable Companies include CPJ, MHC, SUI, UMH and ANL.
(2) Added 50.0% G&A expense as a synergy assuming sale of partnership to a REIT.
(3) Interest income deducted due to cash distribution upon completion of the
transaction.
(4) Selected multiples calculated on pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(5) Transaction expenses calculated as 4.0% of equity value plus debt in 2000 &
2001 FFO analyses and as 4.0% of equity value in TTM EBITDA analysis.
(6) Less 1.0% in General Partner share, provided for by the Agreement of Limited
Partnership and confirmed by the Managing General Partner.
(7) Assumes 152,068 LP units outstanding.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
24
<PAGE>
August 29, 2000
Windsor Park Properties 7 Analysis
===================================
Discounted Cash Flow Analysis - Methodology Utilized
. Discount projected annual aggregate free cash flow available to all
equity interests to the present (January 1, 2000) at discount rates of
14.6% to 19.2%, which represents Legg Mason's estimate of the cost of
equity. This discount rate was calculated by dividing 1 by the
comparable trailing twelve month trading multiples (discounted 20.0%)
plus the growth rate of WPP 7.
. Calculate the aggregate terminal value in year 2004 available to all
equity interests by applying discounted terminal trading multiples of
6.2x to 8.7x to projected year 2004 FFO.
. Discount the aggregate terminal value to the present (January 1, 2000)
at discount rates of 14.6% to 19.2%.
. Add the present value of pro-rata cash flow and the present value of
pro-rata terminal value to arrive at the total equity value available to
present (January 1, 2000) equity interests.
. Subtract the 1.0% General Partner share and divide the remaining equity
value available by the Limited Partner units outstanding (152,068) to
arrive at the estimated value per Limited Partner unit of WPP 7.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
25
<PAGE>
August 29, 2000
Windsor Park Properties 7 Analysis
===================================
Discounted Cash Flow Analysis
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
Year 1 Year 2 Year 3 Year 4 Year 5
2000/(1)/ 2001/(1)/ 2002/(1)/ 2003/(1)/ 2004/(1)/
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
EBITDA $2,794,233 $2,817,654 $2,928,356 $3,040,685 $3,220,337
Less: interest expense 1,276,763 1,181,056 1,174,357 1,167,746 1,161,221
Less: principal amortization 20,705 20,705 20,705 20,705 20,705
Less: CAPEX 167,047 171,913 176,778 181,644 186,509
----------------------------------------------------------------------------------------------
Equity Free Cash Flow $1,329,718 $1,443,980 $1,556,516 $1,670,591 $1,851,901
----------------------------------------------------------------------------------------------
Add: CAPEX 167,047 171,913 176,778 181,644 186,509
Add: principal amortization 20,705 20,705 20,705 20,705 20,705
Add: 50% G&A expense 62,003 59,877 62,871 66,015 69,315
----------------------------------------------------------------------------------------------
FFO/(1)/ $1,579,473 $1,696,475 $1,816,870 $1,938,954 $2,128,430
----------------------------------------------------------------------------------------------
LP Units outstanding at
June 30, 2000 152,068 152,068 152,068 152,068 152,068
----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Present Value of:
Terminal Less: Equity ---------------------------------------
2004 Pre-Tax Terminal Selling Net Other Terminal Discount Cash Terminal Equity
FFO Value/(2)/ Value Expenses/(3)/ Assets Value Rate/(4)/ Flows + Value = Value
----------- ---------- ------------ ------------ ----------- ------------ --------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 2,128,430 8.7 $ 18,420,944 $ 1,662,532 $ (373,000) $ 16,385,412 14.6% $ 5,571,397 $ 8,306,124 $ 13,877,521
$ 2,128,430 7.7 $ 16,366,817 $ 1,559,826 $ (373,000) $ 14,433,992 14.6% $ 5,571,397 $ 7,316,906 $ 12,888,303
$ 2,128,430 6.2 $ 13,162,661 $ 1,399,618 $ (373,000) $ 11,390,043 14.6% $ 5,571,397 $ 5,773,862 $ 11,345,259
$ 2,128,430 8.7 $ 18,420,944 $ 1,662,532 $ (373,000) $ 16,385,412 16.0% $ 5,407,262 $ 7,799,779 $ 13,207,041
$ 2,128,430 7.7 $ 16,366,817 $ 1,559,826 $ (373,000) $ 14,433,992 16.0% $ 5,407,262 $ 6,870,865 $ 12,278,127
$ 2,128,430 6.2 $ 13,162,661 $ 1,399,618 $ (373,000) $ 11,390,043 16.0% $ 5,407,262 $ 5,421,885 $ 10,829,147
$ 2,128,430 8.7 $ 18,420,944 $ 1,662,532 $ (373,000) $ 16,385,412 19.2% $ 5,077,416 $ 6,817,400 $ 11,894,816
$ 2,128,430 7.7 $ 16,366,817 $ 1,559,826 $ (373,000) $ 14,433,992 19.2% $ 5,077,416 $ 6,005,482 $ 11,082,898
$ 2,128,430 6.2 $ 13,162,661 $ 1,399,618 $ (373,000) $ 11,390,043 19.2% $ 5,077,416 $ 4,739,001 $ 9,816,416
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
-----------------------------------
Less: LP Units Equity/
1% GP share Outstanding = LP Unit
----------- ----------- -------
$ 138,775 152,068 $ 90.35
$ 128,883 152,068 $ 83.91
$ 113,453 152,068 $ 73.86
$ 132,070 152,068 $ 85.98
$ 122,781 152,068 $ 79.93
$ 108,291 152,068 $ 70.50
$ 118,948 152,068 $ 77.44
$ 110,829 152,068 $ 72.15
$ 98,164 152,068 $ 63.91
-----------------------------------
Notes:
Sources include: Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Projections provided by the Managing General Partner. Comparable Companies
include CPJ, MHC, SUL, UMH and ANL.
(2) Selected multiples calculated on pages 30 & 31 in Addendum Section titled
"Comparable Company Trading Analysis".
(3) Transaction expenses calculated as 5.0% of terminal equity value plus debt
outstanding.
(4) Discount rate calculated as 1 divided by terminal multiple plus the growth
rate.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
26
<PAGE>
August 29, 2000
Windsor Park Properties 7 Analysis
============================================
Liquidation Analysis - Methodology Utilized
. Applied a 10.0% discount to the appraisal values of the two properties
in which WWP 7 holds a minority interest. Applied a %5.0% discount to
the three properties in which WWP 7 holds a minority interest.
Subtracted debt outstanding and transaction expenses from the discounted
appraisal values for each property. Appraisal values were determined and
provided by Whitcomb Real Estate, Inc.
. Subtracted the 1.0% General Partner share from the net equity value to
arrive at the total Limited Partner value.
. Divided remaining equity value by the number of Limited Partner units
outstanding (152,068 units) to arrive at a per Limited Partner unit
value.
[LOGO OF LEGG MASON] Investment Windsor Park properties
Banking
27
<PAGE>
August 29, 2000
Windsor Park Properties 7 Analysis
==============================================================
Liquidation Analysis
<TABLE>
<CAPTION>
Percent Appraised Less: Debt Equity Transaction Net
Property Ownership Value/(1)/ Discount/(3)/ Outstanding/(2)/ Value Expenses/(4)/ Other Assets/(2)/
-------- --------- ---------- ------------- ---------------- ----- ------------- -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Carefree 56.0% $ 3,416,000 $ 170,800 $ 1,948,700 $ 1,296,500 $ - $ -
North Glen 100.0 6,100,000 - 4,620,000 1,480,000 - -
King & Queens 100.0 1,900,000 - - 1,900,000 - -
The Hills 100.0 4,100,000 - - 4,100,000 - -
Lucerne 100.0 2,600,000 - 1,100,000 1,500,000 - -
Long Lake 60.0 2,100,000 105,000 960,000 1,035,000 - -
Garden Walk 69.0 8,073,000 403,650 3,933,000 3,736,350 - -
Apach East 26.0 559,900 55,990 280,300 223,610 - -
Denali Park Estates 26.0 974,100 97,410 487,700 388,990 - -
Village Glen 100.0 3,000,000 - 1,500,000 1,500,000 - -
--------- ----------- ------------ ------------- ------------ ------------ -------------
Total - $32,823,000 $ 832,850 $ 14,829,700 $ 17,160,450 $ 1,599,508 $ (373,000)
<CAPTION>
Net Equity Less: LP Units Per LP Unit
Property Value 1% GP Share Outstanding/(2)/ Value
-------- ----- ----------- ---------------- -----
<S> <C> <C> <C> <C>
Carefree $ - $ - - $ -
North Glen - - - -
King & Queens - - - -
The Hills - - - -
Lucerne - - - -
Long Lake - - - -
Garden Walk - - - -
Apach East - - - -
Denali Park Estates - - - -
Village Glen - - - -
------------- ----------- -------------- ---------
Total $ 15,187,943 $ 151,879 152,068 $ 98.88
</TABLE>
Notes:
Sources include Source Documents, FactSet Research Systems, Bloomberg Financial
Markets and First Call analysts' estimates.
(1) Appraisal values provided by Whitcomb Real Estate, Inc.
(2) Amount of debt outstanding and net other assets provided by the Managing
General Partner. Assumes 152,068 LP Units outstanding.
(3) Applied a 10.0% discount to the two properties in which WPP 7 holds a
minority interest and applied a 5.0% discount to the three properties in
which WPP 7 holds a majority interest.
(4) Calculated as 5.0% of discounted appraisal value. Does not include general &
administrative expenses of the Partnership during the liquidation period,
liquidation costs associated with a prolonged marketing period or the time
value of the proceeds from the sale of the properties.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
28
<PAGE>
August 29, 2000
Addendum
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
29
<PAGE>
August 29, 2000
Addendum
==========================================================
Comparable Company Trading Analysis
<TABLE>
<CAPTION>
8/28/00 52 Week Indicated Indicated
----------- ---------------------- -----------------------
Closing Annual Dividend FFO Estimates FFO Multiples
---------------------- -----------------------
Ticker Company Name Price High Low Dividend Yield TTM 2000E 2001E TTM 2000E 2001E
------ ------------ ----- ---- --- -------- ----- --- ----- ----- --- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CPJ Chateau Communities, Inc. $26.88 $29.31 $23.25 $2.06 7.7% $2.56 $2.66 $2.88 10.5 x 10.1 x 9.3 x
MHC Manufactured Home 24.13 25.75 22.25 1.66 6.9 2.23 2.33 2.53 10.8 10.4 9.5
Communities, Inc.
SUI Sun Communities, Inc. 31.50 35.88 26.88 2.12 6.7 3.11 3.23 3.51 10.1 9.8 9.0
UMH United Mobile Homes, Inc. 9.06 9.38 5.63 0.75 8.3 1.02 N/A N/A 8.9 N/A N/A
ANL American Land Lease, Inc. 11.75 13.75 10.69 1.00 8.5 1.52 1.55 1.70 7.7 7.6 6.9
---------------------- ------------------------
UNADJUSTED
-----------------------------------------------------------------------------------------------------------------------------------
Median: 7.7% 10.1 x 9.9 x 9.2 x
Maximum: 8.5 10.8 10.4 9.5
Mean: 7.6 9.6 9.4 8.7
Minimum: 6.7 7.7 7.6 6.9
------------------------------------------------------------------------------------------------------------------------------------
ADJUSTED for PARTNERSHIPS (20% Discount)
------------------------------------------------------------------------------------------------------------------------------------
Median:/(1)/ 6.1% 8.1 x 7.9 x 7.3 x
Maximum:/(1)/ 6.8 8.7 8.3 7.6
Mean:/(1)/ 6.1 7.7 7.6 7.0
Minimum:/(1)/ 5.4 6.2 6.1 5.5
------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Debt/
2000 2000 Equity Long Total Total
FFO FFO Share Market Term Market Market
Ticker Company Name Yield Payout Out. Cap Debt Cap Cap
------ ------------ ----- ------ --- --- ---- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CPJ Chateau Communities, Inc. 9.9% 77.4% 28.5 $765.9 $486.9 $1,252.8 38.9%
MHC Manufactured Home 9.7 71.2 22.1 533.2 662.6 1,195.7 55.4
Communities, Inc.
SUI Sun Communities, Inc. 10.3 65.6 17.3 544.9 353.5 898.4 39.3
UMH United Mobile Homes, Inc. N/A N/A 7.3 66.4 36.7 103.1 35.6
ANL American Land Lease, Inc. 13.2 64.5 5.6 65.6 52.0 117.6 44.2
UNADJUSTED
-------------------------------------------------------------------------------------------------------------------
Median: 10.1% 39.3%
Maximum: 13.2 55.4
Mean: 10.8 42.7
Minimum: 9.7 35.6
-------------------------------------------------------------------------------------------------------------------
ADJUSTED for PARTNERSHIPS (20% Discount)
-------------------------------------------------------------------------------------------------------------------
Median:/(1)/ 31.5%
Maximum:/(1)/ 28.5
Mean:/(1)/ 34.2
Minimum:/(1)/ 44.3
-------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
N/A - Information not available, TTM - Trailing Twelve Months.
(1) Adjusted for Partnerships with a discount of 20.0%.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
30
<PAGE>
August 29,2000
Addendum
================================================================================
Comparable Company Trading Analysis
<TABLE>
<CAPTION>
Long-Term
TTM Net TTM Total Debt /
TTM TTM SG&A/ Net Profit TTM EBITDA Market Cap/ Total Total
Ticker Company Name Revenue SG&A Revenue Income Margin EBITDA Margin EBITDA Assets Assets
------ -------------------------- -------- ------- ------- -------- -------- ------ --------- ----------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CPJ Chateau Communities, Inc. $ 196.6 $ 10.7 5.4% $ 35.1 17.9% $134.6 68.5% 9.3x $ 997.5 48.8x
MHC Manufactured Home 219.6 6.6 3.0 32.8 14.9 145.1 66.1 8.2 1,112.9 59.5
Communities, Inc.
SUI Sun Communities, Inc. 140.8 3.9 2.8 29.7 21.1 106.2 75.4 8.5 947.5 37.3
UMH United Mobile Homes, Inc. 19.9 1.7 8.8 5.1 25.7 10.2 51.3 10.1 61.8 59.4
ANL American Land Lease, Inc. 26.7 1.6 6.1 2.1 7.8 12.4 46.4 9.5 174.2 29.8
-------------------------------------------------------------------------------------------------------------------------------
Median: 5.4% 17.9% 66.1 9.3x 54.1x
Maximum: 8.8 25.7 75.4 10.1 59.5
Mean: 5.2 17.5 61.5 9.1 51.3
Minimum: 2.8 7.8 46.4 8.2 37.3
-------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Trailing Trailing
12 Months 3 Months
Total Total
Ticker Company Name Return Return
------ -------------------------- ----------- -----------
<S> <C> <C> <C>
CPJ Chateau Communities, Inc. (1.05)% 2.65%
MHC Manufactured Home 6.87 1.48
Communities, Inc.
SUI Sun Communities, Inc. (5.39) (2.00)
UMH United Mobile Homes, Inc. 7.05 16.60
ANL American Land Lease, Inc. (5.35) 1.06
-----------------------------------------------------------
Median: (1.05)% 1.48%
Maximum: 7.05 16.60
Mean: 0.43 3.96
Minimum: (5.39) (2.00)
-----------------------------------------------------------
ADJUSTED for PARTNERSHIPS (20% Discount)
------------------------------------------------------------------------------------------------------------------------------------
Median: /(1)/ 7.4x
Maximum: /(1)/ 8.1
Mean: /(1)/ 7.3
Minimum: /(1)/ 6.6
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
N/A - Information not available, TTM - Trailing Twelve Months.
(1) Adjusted for Partnerships with a discount of 20.0%.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
31
<PAGE>
August 29,2000
Addendum
================================================================================
Comparable Company Price Volume Graphs
Chateau Communities, Inc.
LTM Stock Price & Volume Analysis
[GRAPH APPEARS HERE]
CPJ
Date Stock Price Volume
---- ----------- ------
8/23/99 29.0625 17.2
8/24/99 29.0625 19
8/25/99 29 26.1
8/26/99 29 12.6
8/27/99 29.25 14.2
8/30/99 29.0625 24.4
8/31/99 29.125 37.4
9/1/99 29 11.5
9/2/99 28.875 17.3
9/3/99 29.25 10.8
9/7/99 29.1875 21.3
9/8/99 28.9375 22.4
9/9/99 28.6875 7.1
9/10/99 28.75 20
9/13/99 28.5 11.7
9/14/99 28.25 7
9/15/99 28 18.4
9/16/99 27.5625 15.8
9/17/99 28 64.7
9/20/99 27.625 29.4
9/21/99 27.5 16.5
9/22/99 27.1875 16.2
9/23/99 27.4375 47.9
9/24/99 27.375 19.7
9/27/99 27.25 68.7
9/28/99 26.625 66.7
9/29/99 26.625 11
9/30/99 26 43.5
10/1/99 26.1875 16.9
10/4/99 26.375 26.9
10/5/99 26.375 13
10/6/99 25.9375 36.2
10/7/99 25.875 14.1
10/8/99 25.6875 17
10/11/99 26.125 16.1
10/12/99 26 12.8
10/13/99 25.75 16.9
10/14/99 25.1875 39.4
10/15/99 25.25 21.7
10/18/99 25.625 17.7
10/19/99 25.375 26.4
10/20/99 25.1875 18.6
10/21/99 25.125 19.6
10/22/99 25.375 34.9
10/25/99 25.4375 38.5
10/26/99 25.4375 52.4
10/27/99 25.3125 14.7
10/28/99 25.1875 25.5
10/29/99 25.5 44.8
11/1/99 25.9375 60
11/2/99 26.3125 54
11/3/99 26.4375 21.7
11/4/99 26.4375 26.1
11/5/99 26.3125 20.2
11/8/99 26.25 43.4
11/9/99 26.3125 63.7
11/10/99 26.3125 25.7
11/11/99 26 11.2
11/12/99 26 14.5
11/15/99 25.875 32.1
11/16/99 26.1875 22
11/17/99 26.125 23.8
11/18/99 26.0625 18.1
11/19/99 26.3125 45.9
11/22/99 26.1875 13
11/23/99 26.1875 29.3
11/24/99 25.9375 21.1
11/26/99 26 5.7
11/29/99 25.875 23.7
11/30/99 26 23.5
12/1/99 25.9375 67.5
12/2/99 26.375 18.8
12/3/99 26.25 31.1
12/6/99 26.1875 18.7
12/7/99 26.125 18
12/8/99 26.0625 19.6
12/9/99 25.9375 66.9
12/10/99 25.875 17.2
12/13/99 25.5625 47.6
12/14/99 25.5 28.2
12/15/99 25.4375 27.9
12/16/99 25.4375 80
12/17/99 26.25 71.8
12/20/99 26.5 52.1
12/21/99 25.5 94.5
12/22/99 25.125 29.9
12/23/99 25.375 43.1
12/27/99 25.3125 22.1
12/28/99 25.375 39.3
12/29/99 25.625 22.2
12/30/99 25.875 18.4
12/31/99 25.9375 31.2
1/3/00 25.25 30.7
1/4/00 25.375 19.8
1/5/00 25.1875 16.1
1/6/00 25.6875 46.1
1/7/00 26.25 50
1/10/00 26.5625 43.4
1/11/00 26.5 33
1/12/00 26.3125 17.3
1/13/00 26.6875 30.1
1/14/00 26.25 77.3
1/18/00 27.0625 31.1
1/19/00 26.8125 37.2
1/20/00 26.875 23.9
1/21/00 26.75 32.7
1/24/00 26.5625 29.1
1/25/00 25.8125 28.1
1/26/00 26.25 49.8
1/27/00 26.3125 96.6
1/28/00 26.25 29.3
1/31/00 26.25 67.1
2/1/00 26.5625 29.3
2/2/00 26.4375 48.2
2/3/00 26.3125 44.3
2/4/00 26.375 23.3
2/7/00 26.3125 25.7
2/8/00 26.375 29.7
2/9/00 26 47.5
2/10/00 25.375 38.3
2/11/00 24.75 37.7
2/14/00 24.375 46.8
2/15/00 24.5625 20.5
2/16/00 24.8125 38.8
2/17/00 24.75 23.8
2/18/00 24.375 79.3
2/22/00 24.6875 25.9
2/23/00 24.1875 58.2
2/24/00 24.1875 46.4
2/25/00 24.125 44.9
2/28/00 24.0625 25.4
2/29/00 24.75 51.5
3/1/00 23.5 88.1
3/2/00 24.6875 68
3/3/00 25 36.7
3/6/00 25.125 33.9
3/7/00 24.875 43
3/8/00 25 100.9
3/9/00 25.25 33.3
3/10/00 24.6875 305.2
3/13/00 24.0625 21.7
3/14/00 24.75 34.5
3/15/00 24.125 33.9
3/16/00 24.75 33
3/17/00 24.8125 30.4
3/20/00 24.25 29.1
3/21/00 24.9375 26.4
3/22/00 25.6875 159.2
3/23/00 25.75 66.1
3/24/00 25.6875 66.5
3/27/00 25.5 30.6
3/28/00 25 41.8
3/29/00 25.0625 29.3
3/30/00 24.9375 19.9
3/31/00 25.5 45.6
4/3/00 25.3125 47.1
4/4/00 25.375 56.8
4/5/00 25.125 90.4
4/6/00 25.3125 50.5
4/7/00 25.0625 72.1
4/10/00 25 51.7
4/11/00 24.6875 120
4/12/00 24.3125 181
4/13/00 24.4375 48.1
4/14/00 24.375 80.4
4/17/00 24.6875 53
4/18/00 24.875 29.1
4/19/00 25.125 42.3
4/20/00 25.0625 292.6
4/24/00 25.0625 59.6
4/25/00 25.4375 49.1
4/26/00 25.625 120.6
4/27/00 25.5 63.5
4/28/00 26 74.6
5/1/00 26.625 62.5
5/2/00 27.875 58
5/3/00 27.9375 119.6
5/4/00 27.4375 54.7
5/5/00 27.375 22.5
5/8/00 27 38.6
5/9/00 26.8125 51.7
5/10/00 26.4375 33.1
5/11/00 26.1875 25
5/12/00 26.0625 20.4
5/15/00 26.5 50.5
5/16/00 26.6875 41
5/17/00 26.5 21.8
5/18/00 26.5 28
5/19/00 26.5625 24.7
5/22/00 27.125 19.1
5/23/00 26.5625 8.8
5/24/00 27 14.5
5/25/00 26.6875 17.7
5/26/00 26.6875 6.7
5/30/00 27 40.9
5/31/00 27.125 22.5
6/1/00 27.5 93.9
6/2/00 27.5 123.3
6/5/00 27.375 42.1
6/6/00 27.375 9
6/7/00 27.375 57.1
6/8/00 27 25.9
6/9/00 26.9375 57.8
6/12/00 26.8125 18.4
6/13/00 27.25 13.3
6/14/00 28 49.3
6/15/00 27.5625 21.8
6/16/00 27.5625 26.6
6/19/00 27.9375 23.1
6/20/00 27.625 13.9
6/21/00 27.75 16.2
6/22/00 27.625 29.1
6/23/00 27.625 14.6
6/26/00 27.25 16.8
6/27/00 27.75 16.6
6/28/00 27.75 23.9
6/29/00 28.1875 24.5
6/30/00 28.25 118.8
7/3/00 28.0625 8.4
7/5/00 28.0625 31.8
7/6/00 28.875 21.4
7/7/00 28.3125 31.5
7/10/00 28.3125 26.8
7/11/00 28 27.1
7/12/00 28.1875 23.6
7/13/00 28.125 26
7/14/00 28 12.1
7/17/00 27.9375 57.6
7/18/00 27.8125 36.4
7/19/00 27 144.3
7/20/00 27.4375 34.3
7/21/00 27.25 12
7/24/00 27 17.2
7/25/00 26.9375 24.8
7/26/00 26.9375 28.6
7/27/00 27.125 56.5
7/28/00 27.5 23.9
7/31/00 28.1875 38.8
8/1/00 28 178
8/2/00 28.3125 24.9
8/3/00 27.625 32.4
8/4/00 27.4375 18.5
8/7/00 27.625 13.8
8/8/00 28 30.9
8/9/00 27.8125 16.1
8/10/00 27.6875 13.7
8/11/00 28.3125 44
8/14/00 28 37.6
8/15/00 27.8125 28.2
8/16/00 27.875 16.8
8/17/00 27.69 15.8
8/18/00 27.38 38.8
8/21/00 27.38 13.90
8/22/00 27.50 6.00
8/23/00 27.06 21.70
8/24/00 26.88 38.40
8/25/00 27.13 17.80
8/28/00 26.88 7.80
Notes:
Sources include Bloomberg Financial Markets and FactSet Research Systems.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
32
<PAGE>
August 29,2000
Addendum
================================================================================
Comparable Company Price Volume Graphs
Manufactured Home Communities, Inc.
LTM Stock Price & Volume Analysis
[GRAPH APPEARS HERE]
MHC
Date Stock Price Volume
---- ----------- ------
8/23/99 24.5625 64.1
8/24/99 24.375 13.5
8/25/99 24.375 31
8/26/99 24.1875 88.7
8/27/99 24.125 253.6
8/30/99 24 32.3
8/31/99 24.375 84.9
9/1/99 24 6.1
9/2/99 23.8125 10.7
9/3/99 24.4375 11.4
9/7/99 24.25 17.4
9/8/99 24.125 23.5
9/9/99 24.0625 5.2
9/10/99 24.0625 4.4
9/13/99 24.0625 16.5
9/14/99 24 2.8
9/15/99 24 9.8
9/16/99 24 22.2
9/17/99 24 18.4
9/20/99 24 12.6
9/21/99 23.875 89.1
9/22/99 23.25 32.2
9/23/99 23.25 24
9/24/99 23.25 20.6
9/27/99 23.125 10.7
9/28/99 23.125 44.1
9/29/99 23.3125 29.6
9/30/99 23.375 650.8
10/1/99 22.875 1236.2
10/4/99 23 28
10/5/99 23 35
10/6/99 23.25 45
10/7/99 23.625 37.1
10/8/99 23.25 183.5
10/11/99 23.3125 12.2
10/12/99 22.8125 67
10/13/99 22.75 8.8
10/14/99 22.75 11.2
10/15/99 22.8125 18.3
10/18/99 22.75 29.1
10/19/99 22.75 41.3
10/20/99 22.6875 7.2
10/21/99 22.875 21.7
10/22/99 23.125 26.6
10/25/99 23.25 46
10/26/99 23.125 69.4
10/27/99 23.0625 16.7
10/28/99 23.3125 22.4
10/29/99 23.3125 20.8
11/1/99 23.75 109.2
11/2/99 23.875 132.7
11/3/99 23.5625 254.6
11/4/99 23.75 13.7
11/5/99 23.8125 19.3
11/8/99 24.125 18.6
11/9/99 24 115.6
11/10/99 24.0625 24
11/11/99 24 9.5
11/12/99 24.1875 38.4
11/15/99 24.0625 85.1
11/16/99 24.375 23.2
11/17/99 24.125 117.8
11/18/99 24 48.6
11/19/99 24.1875 25.5
11/22/99 23.9375 88
11/23/99 23.875 91.1
11/24/99 23.5625 161.2
11/26/99 23.625 6.8
11/29/99 23.4375 66.8
11/30/99 23.6875 117.6
12/1/99 23.6875 41.1
12/2/99 23.875 48.6
12/3/99 24.125 75.6
12/6/99 24 128.6
12/7/99 24.0625 296.6
12/8/99 24.0625 15.2
12/9/99 24 104.5
12/10/99 24 66.7
12/13/99 24 57.3
12/14/99 23.9375 109.1
12/15/99 23.875 128.6
12/16/99 23.75 138.6
12/17/99 24.125 60.3
12/20/99 24 48.3
12/21/99 24.125 84.9
12/22/99 24 21.5
12/23/99 24.0625 8.8
12/27/99 24.125 52.1
12/28/99 24.1875 22
12/29/99 24.25 46.2
12/30/99 24.375 35.5
12/31/99 24.3125 23.8
1/3/00 24.125 22.1
1/4/00 24.0625 15.5
1/5/00 24.125 14.3
1/6/00 24.375 25.7
1/7/00 24.625 27.3
1/10/00 25.3125 35.8
1/11/00 25.375 125.9
1/12/00 25.3125 11.1
1/13/00 25.5 20.8
1/14/00 25.5 14.5
1/18/00 25.5 20.7
1/19/00 25.625 35.7
1/20/00 25.625 52.7
1/21/00 25.0625 70.8
1/24/00 24.625 20.5
1/25/00 24.1875 36.8
1/26/00 24.1875 28.8
1/27/00 24.0625 11
1/28/00 24 146.8
1/31/00 24 188.9
2/1/00 24.125 68.8
2/2/00 24 27.5
2/3/00 24.25 152
2/4/00 24.1875 48
2/7/00 24 50.3
2/8/00 24.125 20.6
2/9/00 24 38.5
2/10/00 24 29.1
2/11/00 24 56.9
2/14/00 24.1875 55.3
2/15/00 24.125 79.1
2/16/00 24.1875 70.2
2/17/00 24.125 45.1
2/18/00 23.9375 80.4
2/22/00 23.75 52.5
2/23/00 23.4375 47
2/24/00 23 66.1
2/25/00 23 65.5
2/28/00 23.0625 22.8
2/29/00 22.875 114.9
3/1/00 22.8125 65.3
3/2/00 22.4375 136.2
3/3/00 22.75 40.1
3/6/00 23 37.4
3/7/00 23 58
3/8/00 22.9375 40.7
3/9/00 22.9375 44.6
3/10/00 22.9375 63.2
3/13/00 23 72.3
3/14/00 23.375 109.3
3/15/00 23.0625 42.9
3/16/00 23.6875 56.6
3/17/00 23.6875 52.5
3/20/00 23.5 15.8
3/21/00 23.75 83.4
3/22/00 24 59.8
3/23/00 24.125 46.8
3/24/00 24 29.6
3/27/00 23.875 36.2
3/28/00 23.8125 50.3
3/29/00 23.5625 26.2
3/30/00 23.5 124.1
3/31/00 23.125 69.7
4/3/00 23.75 88.8
4/4/00 23.875 88.2
4/5/00 23.5 30
4/6/00 23.625 77.3
4/7/00 23.9375 17.6
4/10/00 23.75 21.1
4/11/00 24.125 46.7
4/12/00 23.75 18.6
4/13/00 24 12.5
4/14/00 24.375 24
4/17/00 23.875 13.4
4/18/00 24.25 16.1
4/19/00 24.25 10.6
4/20/00 24.4375 18.1
4/24/00 24.4375 22.2
4/25/00 24.6875 16.7
4/26/00 25 5.6
4/27/00 24.9375 82
4/28/00 25 17.5
5/1/00 25 30.2
5/2/00 25.5625 84.5
5/3/00 25.6875 66.3
5/4/00 25.6875 26.4
5/5/00 25.375 19.9
5/8/00 24.9375 8.6
5/9/00 25.0625 16.5
5/10/00 24.9375 9.7
5/11/00 25 70.5
5/12/00 24.75 22.9
5/15/00 25 24.1
5/16/00 24.9375 38.7
5/17/00 24.5 26.2
5/18/00 24.0625 28.7
5/19/00 24.0625 32.4
5/22/00 24.125 51.3
5/23/00 24.3125 77.9
5/24/00 24.375 20.8
5/25/00 24.125 177
5/26/00 24.1875 8.4
5/30/00 24.125 10.3
5/31/00 24.125 28.7
6/1/00 23.9375 80.5
6/2/00 23.875 34
6/5/00 23.8125 12.2
6/6/00 23.9375 5.5
6/7/00 24.25 141.8
6/8/00 24.4375 18.9
6/9/00 24.8125 34.5
6/12/00 24.625 26.4
6/13/00 24.6875 7.9
6/14/00 24.625 43.9
6/15/00 24.3125 71.8
6/16/00 24.3125 19.1
6/19/00 24.25 26.6
6/20/00 24.3125 34.2
6/21/00 24.25 34.7
6/22/00 24.125 18.5
6/23/00 24 21.7
6/26/00 23.875 43
6/27/00 24.1875 36.8
6/28/00 24 40.4
6/29/00 24.3125 26.6
6/30/00 23.9375 78.2
7/3/00 24 9.6
7/5/00 24.375 58.2
7/6/00 24.4375 259.5
7/7/00 24.5 37.3
7/10/00 24.5625 40.5
7/11/00 24.4375 236.9
7/12/00 24.5625 34.4
7/13/00 24.1875 65.3
7/14/00 23.75 629.5
7/17/00 23.8125 45.4
7/18/00 24.0625 54.5
7/19/00 23.875 13.8
7/20/00 24 407.2
7/21/00 23.75 37.5
7/24/00 24 33.6
7/25/00 23.875 172.5
7/26/00 24.0625 28.1
7/27/00 24.0625 33.1
7/28/00 23.8125 10.8
7/31/00 24 32.5
8/1/00 24 26.9
8/2/00 23.8125 213
8/3/00 24 55
8/4/00 23.875 34
8/7/00 23.625 153.3
8/8/00 23.75 16.4
8/9/00 23.625 47.2
8/10/00 23.9375 66.2
8/11/00 24.0625 123.3
8/14/00 24.3125 40.4
8/15/00 24.0625 726.4
8/16/00 24.125 34.1
8/17/00 24.375 26.7
8/18/00 24.3125 33.4
8/21/00 24.3125 29.8
8/22/00 24.1875 38.4
8/23/00 23.875 26.7
8/24/00 24.06 67.60
8/25/00 24.06 6.40
8/28/00 24.13 22.50
Notes:
Sources include Bloomberg Financial Markets and FactSet Research Systems.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
33
<PAGE>
August 29,2000
Addendum
================================================================================
Comparable Company Price Volume Graphs
Sun Communities, Inc.
LTM Stock Price & Volume Analysis
[GRAPH APPEARS HERE]
SUI
Date Stock Price Volume
---- ----------- ------
8/23/99 34.9375 13.9
8/24/99 34.875 14.9
8/25/99 35.1875 9.9
8/26/99 35.3125 8.5
8/27/99 35.5625 19.7
8/30/99 35.4375 19.5
8/31/99 35.75 46.1
9/1/99 35.625 45
9/2/99 35.0625 29.2
9/3/99 35.4375 17.9
9/7/99 35.5625 35.3
9/8/99 35.4375 19.7
9/9/99 35.5625 20.1
9/10/99 35.375 48.4
9/13/99 35.5 12.4
9/14/99 35 16.5
9/15/99 34.9375 15
9/16/99 34.25 8.7
9/17/99 34.5625 15.7
9/20/99 34.5625 5.2
9/21/99 34.3125 6.1
9/22/99 33.5 20.8
9/23/99 33.4375 13.2
9/24/99 33.5 4.6
9/27/99 33.375 76.6
9/28/99 33.3125 26.9
9/29/99 33.1875 4.6
9/30/99 33.0625 23.1
10/1/99 32.5625 39.3
10/4/99 32.625 17.1
10/5/99 32.75 9.7
10/6/99 32.1875 9.5
10/7/99 32.25 34.4
10/8/99 31.9375 10.7
10/11/99 32.125 7.6
10/12/99 32 11.1
10/13/99 32 20.7
10/14/99 32 32.6
10/15/99 31.75 6
10/18/99 31.6875 23.5
10/19/99 31.6875 85.9
10/20/99 31.75 63.7
10/21/99 32.25 27.5
10/22/99 31.8125 16.3
10/25/99 31.8125 26.4
10/26/99 31.75 25.3
10/27/99 31.9375 18.3
10/28/99 31.875 55
10/29/99 31.875 25.1
11/1/99 32.4375 23.2
11/2/99 32.875 20
11/3/99 33.375 72.7
11/4/99 33.0625 10.8
11/5/99 33.0625 24.2
11/8/99 33 20.2
11/9/99 32.9375 15.1
11/10/99 32.875 9
11/11/99 32.5 9.2
11/12/99 32.1875 41.8
11/15/99 31.8125 8.1
11/16/99 31.625 13.7
11/17/99 31.625 18.4
11/18/99 31.5625 12
11/19/99 31.3125 24.9
11/22/99 31 37.7
11/23/99 30.8125 31.9
11/24/99 30.5 33.4
11/26/99 30.5625 8.3
11/29/99 30.5 18.6
11/30/99 30.375 30.7
12/1/99 30.1875 24.8
12/2/99 30.25 20.3
12/3/99 30.25 39
12/6/99 30 24.9
12/7/99 30.125 85.1
12/8/99 29.875 8.9
12/9/99 30 20.9
12/10/99 29.9375 39.6
12/13/99 30.0625 27.4
12/14/99 30.125 55.2
12/15/99 30.3125 81.9
12/16/99 30 40.3
12/17/99 31.1875 58.4
12/20/99 31 23.6
12/21/99 31.1875 69.4
12/22/99 31.125 13.6
12/23/99 31.0625 13
12/27/99 31.4375 13.6
12/28/99 31.6875 62.5
12/29/99 31.9375 12.2
12/30/99 32.1875 22
12/31/99 32.1875 23.5
1/3/00 31.8125 36.1
1/4/00 31.875 51.3
1/5/00 31.875 19.8
1/6/00 32.25 26.1
1/7/00 32.875 30.5
1/10/00 34.625 65.7
1/11/00 34.125 57.4
1/12/00 33.5 29.2
1/13/00 33.375 27.3
1/14/00 33.625 10.2
1/18/00 34.1875 26.8
1/19/00 34.9375 55
1/20/00 34.5 18.8
1/21/00 34.375 25.5
1/24/00 33.375 29.4
1/25/00 32.75 25.8
1/26/00 32.875 15.9
1/27/00 32.25 131
1/28/00 31.125 87.9
1/31/00 31 130.2
2/1/00 31.3125 96.3
2/2/00 31.5 53.9
2/3/00 31.0625 338.4
2/4/00 30.875 28.6
2/7/00 30.9375 35
2/8/00 31.375 47.3
2/9/00 31.125 19.5
2/10/00 30.8125 15.8
2/11/00 30.6875 23.6
2/14/00 30.25 50.4
2/15/00 30.5 24.4
2/16/00 30.5 12.6
2/17/00 30.5625 41.5
2/18/00 30.3125 10.7
2/22/00 30.375 68.4
2/23/00 30 70.9
2/24/00 29.8125 57.4
2/25/00 29.75 15.7
2/28/00 29.75 83.5
2/29/00 29.5 51.7
3/1/00 29.5 43.9
3/2/00 29.25 21
3/3/00 29.5 43.8
3/6/00 29 58
3/7/00 28.8125 23.2
3/8/00 28.875 40.2
3/9/00 29.125 31.9
3/10/00 29 31.5
3/13/00 29 43
3/14/00 28.875 96
3/15/00 28.75 123
3/16/00 28 88.6
3/17/00 27.875 51.3
3/20/00 27.5625 23.2
3/21/00 27.375 103.2
3/22/00 28.25 223.4
3/23/00 28.625 168.5
3/24/00 28.75 44.8
3/27/00 28.5 65.5
3/28/00 28.8125 78.2
3/29/00 28.875 37.9
3/30/00 29.0625 89.5
3/31/00 28.875 98.4
4/3/00 29.4375 8.2
4/4/00 29.375 47.2
4/5/00 30.0625 41.2
4/6/00 30.75 33.5
4/7/00 30.9375 34.8
4/10/00 30.875 51.8
4/11/00 31 6.5
4/12/00 31.375 36
4/13/00 31.5625 9.4
4/14/00 32.5 49.3
4/17/00 31.875 9.8
4/18/00 31.75 35.7
4/19/00 32.375 54.7
4/20/00 32.375 64.8
4/24/00 32.625 11.7
4/25/00 32.8125 109.9
4/26/00 32.75 29.2
4/27/00 32.9375 27.2
4/28/00 33.125 43.8
5/1/00 33.1875 46.2
5/2/00 33 42.4
5/3/00 32.75 45.6
5/4/00 32.6875 29.5
5/5/00 32.6875 17.9
5/8/00 32.3125 28.2
5/9/00 32.4375 34.3
5/10/00 32.375 31.8
5/11/00 32.4375 28.4
5/12/00 32.75 32
5/15/00 32.8125 34
5/16/00 32.75 13.2
5/17/00 32.75 59.5
5/18/00 32.8125 58.6
5/19/00 32.6875 25.1
5/22/00 32.6875 27.2
5/23/00 32.4375 7.7
5/24/00 32.75 39.8
5/25/00 32.75 30.5
5/26/00 32.6875 13.4
5/30/00 32.375 21.1
5/31/00 32.375 9.6
6/1/00 32.5 5.3
6/2/00 32.5 13.5
6/5/00 32.5 31.2
6/6/00 32.625 25.2
6/7/00 32.875 5.3
6/8/00 33 4.3
6/9/00 33.25 3.3
6/12/00 32.75 12.5
6/13/00 32.9375 37.6
6/14/00 32.875 38
6/15/00 32.625 19.9
6/16/00 32.1875 21.6
6/19/00 32.4375 11.3
6/20/00 32.4375 20.6
6/21/00 32.6875 74.5
6/22/00 32.6875 33.9
6/23/00 31.9375 36.9
6/26/00 32.3125 34.2
6/27/00 33 26.2
6/28/00 33.5 43.6
6/29/00 33.625 31.4
6/30/00 33.4375 82.5
7/3/00 33.375 3.3
7/5/00 33.4375 20.5
7/6/00 33.75 104.9
7/7/00 33.75 40.2
7/10/00 33.6875 32.4
7/11/00 32.625 23.9
7/12/00 32.875 15.1
7/13/00 32.625 50.1
7/14/00 32.3125 32.3
7/17/00 32.625 5.7
7/18/00 32.625 16.2
7/19/00 32.3125 16.2
7/20/00 31.8125 90.2
7/21/00 31.5625 236.8
7/24/00 31.75 52.8
7/25/00 31.75 92.9
7/26/00 31.75 204
7/27/00 31.5 44.4
7/28/00 31.5 23.4
7/31/00 31.625 24.1
8/1/00 31.625 36.8
8/2/00 31.625 65.9
8/3/00 31.8125 44.7
8/4/00 31.625 84.1
8/7/00 31.4375 132.6
8/8/00 31.125 73.4
8/9/00 31.375 8.8
8/10/00 31.5 88.5
8/11/00 31.875 41.7
8/14/00 31.9375 14.3
8/15/00 31.625 34.1
8/16/00 31.5 16.8
8/17/00 31.5 26.8
8/18/00 31 31.5
8/21/00 31.25 160.5
8/22/00 31.69 41.2
8/23/00 31.25 34.30
8/24/00 31.00 30.50
8/25/00 31.19 7.80
8/28/00 31.50 49.90
Notes:
Sources include Bloomberg Financial Markets and FactSet Research Systems.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
34
<PAGE>
August 29,2000
Addendum
================================================================================
Comparable Company Price Volume Graphs
United Mobile Homes, Inc.
LTM Stock Price & Volume Analysis
[GRAPH APPEARS HERE]
UMH
Date Stock Price Volume
---- ----------- ------
8/23/99 9.25 6.3
8/24/99 9.375 7.5
8/25/99 9.3125 1.4
8/26/99 9.125 2.7
8/27/99 9.1875 0.8
8/30/99 9.125 0.1
8/31/99 9.125 1.6
9/1/99 9.0625 2
9/2/99 9.0625 8.4
9/3/99 9.1875 0
9/7/99 9 11
9/8/99 8.9375 15.1
9/9/99 8.9375 0
9/10/99 9.375 3.4
9/13/99 9.125 5.9
9/14/99 9.125 3.8
9/15/99 9.25 1.7
9/16/99 9 7.4
9/17/99 9.125 7.9
9/20/99 9.125 5.4
9/21/99 8.9375 4.4
9/22/99 8.875 1.4
9/23/99 9 2.5
9/24/99 9 1.6
9/27/99 8.8125 3.4
9/28/99 8.8125 4.7
9/29/99 8.9375 6.4
9/30/99 8.9375 5.6
10/1/99 8.9375 11.8
10/4/99 9 0.5
10/5/99 9 5.8
10/6/99 8.875 1
10/7/99 8.875 0.2
10/8/99 8.9375 7.8
10/11/99 9 0
10/12/99 8.875 3.7
10/13/99 8.875 2.4
10/14/99 8.75 8.1
10/15/99 8.75 3.5
10/18/99 8.625 9
10/19/99 8.875 15.3
10/20/99 8.875 2.5
10/21/99 8.875 3.5
10/22/99 8.75 0.4
10/25/99 8.625 1.3
10/26/99 8.6875 0.6
10/27/99 8.9375 18.6
10/28/99 8.875 0
10/29/99 8.875 2.7
11/1/99 8.875 11.2
11/2/99 8.75 1
11/3/99 8.875 4.5
11/4/99 9 0.3
11/5/99 8.875 0.4
11/8/99 8.9375 2.2
11/9/99 9 1.9
11/10/99 8.625 16.5
11/11/99 8.625 3.9
11/12/99 8.625 1.3
11/15/99 8.5 2.1
11/16/99 8.375 13.5
11/17/99 8.375 2.7
11/18/99 8.6875 3.2
11/19/99 8.5625 1.1
11/22/99 8.375 4.8
11/23/99 8.4375 12.5
11/24/99 8.3125 2.7
11/26/99 8.375 2.5
11/29/99 8.3125 24.3
11/30/99 8.375 12.2
12/1/99 8.125 2.6
12/2/99 8.0625 20.6
12/3/99 8.125 4
12/6/99 8.25 1.8
12/7/99 8.3125 12.2
12/8/99 8.3125 2.1
12/9/99 8.5 1
12/10/99 8.1875 11.1
12/13/99 8.125 7.9
12/14/99 8.25 15.4
12/15/99 8.125 11.1
12/16/99 8 12.7
12/17/99 8.125 10.9
12/20/99 8.125 2.4
12/21/99 8 8.7
12/22/99 8.1875 5
12/23/99 8.0625 1
12/27/99 8 44.5
12/28/99 8 0.2
12/29/99 8.125 8.9
12/30/99 8.0625 5
12/31/99 8.25 6.7
1/3/00 8.3125 3.2
1/4/00 8.1875 1.1
1/5/00 8.1875 1.2
1/6/00 8.375 5.2
1/7/00 8.3125 5.2
1/10/00 8.4375 4.7
1/11/00 8.875 12.1
1/12/00 8.875 0.7
1/13/00 8.875 0.2
1/14/00 8.6875 1.6
1/18/00 8.5625 4.4
1/19/00 8.75 4
1/20/00 8.875 2.6
1/21/00 8.75 5.6
1/24/00 8.75 4
1/25/00 8.625 2.5
1/26/00 8.8125 2.4
1/27/00 8.5625 4.2
1/28/00 8.5 1.2
1/31/00 8.375 1
2/1/00 8.375 1.2
2/2/00 8.25 0.5
2/3/00 8.5 0.6
2/4/00 8.5625 2.5
2/7/00 8.5 2
2/8/00 8.5625 2.7
2/9/00 8.625 1.7
2/10/00 8.6875 3.7
2/11/00 8.375 1.7
2/14/00 8.5 0.3
2/15/00 8.375 1
2/16/00 8.375 0.7
2/17/00 8.375 1.2
2/18/00 8.4375 1.2
2/22/00 8.375 0.2
2/23/00 8.3125 0.7
2/24/00 8.3125 1
2/25/00 8 11.2
2/28/00 8 1.1
2/29/00 8 0.8
3/1/00 8.0625 5.1
3/2/00 8.0625 0.3
3/3/00 8.5 4
3/6/00 8 7.1
3/7/00 8.0625 0.8
3/8/00 8.0625 1.7
3/9/00 8 4
3/10/00 7.875 6.9
3/13/00 8 3.7
3/14/00 7.875 0
3/15/00 7.8125 3.9
3/16/00 7.875 6.4
3/17/00 8 3.5
3/20/00 8.0625 2
3/21/00 8.125 2.1
3/22/00 8 9.2
3/23/00 8 3.4
3/24/00 8 8.1
3/27/00 7.875 4.1
3/28/00 7.5 19.5
3/29/00 7.4375 36.3
3/30/00 7.5 21.3
3/31/00 7 101.2
4/3/00 7.375 10.6
4/4/00 7.25 4.2
4/5/00 7.5 9.5
4/6/00 7.375 0.4
4/7/00 7.625 5
4/10/00 7.75 1.6
4/11/00 7.8125 4.4
4/12/00 7.625 2.1
4/13/00 7.6875 0.6
4/14/00 7.75 4.6
4/17/00 7.6875 11.5
4/18/00 7.75 11.1
4/19/00 7.625 4.7
4/20/00 7.6875 0.6
4/24/00 7.75 0.2
4/25/00 7.75 7
4/26/00 7.75 17.9
4/27/00 8 13.8
4/28/00 8.125 0
5/1/00 8.125 0
5/2/00 8.125 9.8
5/3/00 8.125 12.6
5/4/00 8.4375 8.8
5/5/00 8.5 11.5
5/8/00 8.3125 8
5/9/00 8.375 11.4
5/10/00 8.5 0.2
5/11/00 8.34375 7
5/12/00 8.25 10.2
5/15/00 8.0625 6.3
5/16/00 8.1875 1.9
5/17/00 8.375 8.5
5/18/00 8.125 14.7
5/19/00 7.875 7.3
5/22/00 7.75 6.1
5/23/00 7.625 11.4
5/24/00 7.625 1.9
5/25/00 7.875 0.6
5/26/00 7.875 0
5/30/00 7.9375 3.5
5/31/00 8 1
6/1/00 8 4.5
6/2/00 8.25 12
6/5/00 8.25 0.2
6/6/00 8.5 13.7
6/7/00 8.375 11.2
6/8/00 8.125 23.9
6/9/00 8 1.9
6/12/00 8 9.8
6/13/00 8.375 2.8
6/14/00 8.375 2.3
6/15/00 8.4375 15.9
6/16/00 8.25 10.2
6/19/00 8.125 1.3
6/20/00 8.0625 5.4
6/21/00 8.09375 0
6/22/00 8.0625 1.9
6/23/00 8.125 1.1
6/26/00 8.3125 10.8
6/27/00 8.3125 9
6/28/00 8.3125 4.3
6/29/00 8.3125 6.2
6/30/00 8.25 2.1
7/3/00 8.3125 1.1
7/5/00 8.25 12.7
7/6/00 8.375 0
7/7/00 8.25 0.5
7/10/00 8.375 0
7/11/00 8.3125 4.1
7/12/00 8.5 6.5
7/13/00 8.5 1.4
7/14/00 8.5 7.5
7/17/00 8.5 1.4
7/18/00 8.5 1.4
7/19/00 8.5 6.1
7/20/00 8.5 0
7/21/00 8.625 5.4
7/24/00 8.625 2.9
7/25/00 8.71875 0
7/26/00 8.6875 0
7/27/00 8.625 1.8
7/28/00 8.6875 3.5
7/31/00 8.8125 2.5
8/1/00 8.8125 3.1
8/2/00 8.75 3.2
8/3/00 8.8125 0
8/4/00 8.875 19.7
8/7/00 8.75 13.1
8/8/00 8.8125 1
8/9/00 8.875 3.6
8/10/00 8.75 7.5
8/11/00 8.9375 2.7
8/14/00 9.125 3
8/15/00 9 1.1
8/16/00 9.125 1.1
8/17/00 9.1875 2.8
8/18/00 9.25 10.7
8/21/00 9 5.3
8/22/00 9 0.2
8/23/00 9 3.7
8/24/00 8.88 5.7
8/25/00 9.25 6.70
8/28/00 9.06 1.1
Notes:
Sources include Bloomberg Financial Markets and FactSet Research Systems.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
35
<PAGE>
August 29,2000
Addendum
================================================================================
Comparable Company Price Volume Graphs
American Land Lease, Inc.
LTM Stock Price & Volume Analysis
[GRAPH APPEARS HERE]
ANL
Date Stock Price Volume
---- ----------- ------
8/23/99 13.6875 2
8/24/99 13.75 7.9
8/25/99 13.6875 7.9
8/26/99 13.625 11.3
8/27/99 13.5 20.1
8/30/99 13.5 13.9
8/31/99 13.625 5.1
9/1/99 13.4375 4.7
9/2/99 13.6875 20.2
9/3/99 13.625 1.4
9/7/99 13.625 11.1
9/8/99 13.625 13.7
9/9/99 13.625 2.6
9/10/99 13.5625 25.9
9/13/99 13.4375 5.7
9/14/99 13.25 7.3
9/15/99 13 3.6
9/16/99 13 5
9/17/99 13 6.3
9/20/99 12.875 4.5
9/21/99 12.9375 10.7
9/22/99 12.9375 4.9
9/23/99 12.875 13.6
9/24/99 12.8125 2.6
9/27/99 12.5 3.9
9/28/99 12.75 44.4
9/29/99 12.875 5.4
9/30/99 13.3125 11.6
10/1/99 13.125 5.5
10/4/99 13.3125 3.6
10/5/99 13.0625 1.9
10/6/99 13 2.6
10/7/99 12.875 6.8
10/8/99 12.75 3.5
10/11/99 12.875 2.9
10/12/99 12.9375 2.8
10/13/99 12.6875 3.3
10/14/99 12.75 2.9
10/15/99 12.8125 12.8
10/18/99 12.8125 4.3
10/19/99 12.875 13
10/20/99 13 15.6
10/21/99 13 14.8
10/22/99 12.8125 5.3
10/25/99 12.75 11.1
10/26/99 12.6875 1.2
10/27/99 12.75 16.2
10/28/99 12.84375 0
10/29/99 12.625 17.9
11/1/99 12.8125 0.8
11/2/99 12.875 16.3
11/3/99 12.625 1.5
11/4/99 12.625 2.3
11/5/99 12.4375 0.5
11/8/99 12.4375 3.1
11/9/99 12.4375 7.7
11/10/99 12.5 16.2
11/11/99 12.5625 5.9
11/12/99 12.625 6.1
11/15/99 12.75 11.4
11/16/99 12.75 4.3
11/17/99 12.75 9
11/18/99 12.75 15
11/19/99 12.875 19.4
11/22/99 12.8125 5.5
11/23/99 12.8125 6.8
11/24/99 12.8125 21.3
11/26/99 12.8125 10.6
11/29/99 12.875 3.2
11/30/99 13.0625 20.1
12/1/99 12.9375 7.2
12/2/99 12.75 2.4
12/3/99 12.6875 3.4
12/6/99 12.5625 3.7
12/7/99 12.5625 24.6
12/8/99 12.5 19.5
12/9/99 12.625 46.7
12/10/99 12.5 10.7
12/13/99 12.1875 22.7
12/14/99 12.1875 3.7
12/15/99 12.25 9.1
12/16/99 12 4.1
12/17/99 11.875 6.1
12/20/99 11.5 24
12/21/99 11.4375 33.1
12/22/99 11.5 19.6
12/23/99 11.4375 16.5
12/27/99 11.0625 9.7
12/28/99 11.125 64.9
12/29/99 11.125 16
12/30/99 11.125 20.6
12/31/99 11.125 14.7
1/3/00 11.125 7.6
1/4/00 11.125 2.7
1/5/00 11.25 6.2
1/6/00 11.375 4.9
1/7/00 11.375 6
1/10/00 11.625 8.7
1/11/00 11.75 6.3
1/12/00 11.625 5.3
1/13/00 11.75 5.3
1/14/00 11.875 10.4
1/18/00 11.75 8.3
1/19/00 11.875 10.9
1/20/00 12 34.7
1/21/00 12 23.8
1/24/00 12.0625 4.7
1/25/00 11.9375 5.1
1/26/00 11.8125 15
1/27/00 11.9375 9.7
1/28/00 11.9375 3.3
1/31/00 12 1.5
2/1/00 12 5.8
2/2/00 11.875 8.7
2/3/00 11.9375 5.2
2/4/00 11.875 6
2/7/00 12 12
2/8/00 12.0625 12.4
2/9/00 12 10.8
2/10/00 11.9375 4.8
2/11/00 11.875 14.4
2/14/00 11.8125 6.5
2/15/00 11.8125 1.1
2/16/00 12 3.5
2/17/00 12 11
2/18/00 11.9375 2.2
2/22/00 11.875 6.7
2/23/00 11.8125 2.2
2/24/00 11.75 77.2
2/25/00 11.875 5
2/28/00 11.9375 7.2
2/29/00 11.875 21.3
3/1/00 12 2.7
3/2/00 11.875 1.3
3/3/00 12 7.9
3/6/00 12.0625 7
3/7/00 12.0625 58.8
3/8/00 12 7
3/9/00 12.0625 27.7
3/10/00 12.0625 10.7
3/13/00 12.0625 15.6
3/14/00 12 39.1
3/15/00 12.0625 3.9
3/16/00 11.875 26.1
3/17/00 11.8125 23.2
3/20/00 11.75 15.6
3/21/00 11.75 3.1
3/22/00 11.5 24.5
3/23/00 11.4375 39.1
3/24/00 11.375 18.4
3/27/00 11.4375 28.1
3/28/00 11.375 18.5
3/29/00 11.375 11.7
3/30/00 11 35.9
3/31/00 10.75 58.3
4/3/00 11 7.1
4/4/00 10.9375 2.9
4/5/00 10.875 7.7
4/6/00 10.9375 1
4/7/00 11.0625 12.7
4/10/00 11.0625 12.4
4/11/00 11.0625 5.9
4/12/00 11.1875 6.5
4/13/00 11.1875 3.9
4/14/00 11.0625 11.6
4/17/00 10.9375 28.9
4/18/00 11 7.8
4/19/00 11.125 1.9
4/20/00 11.1875 8.6
4/24/00 11.625 11
4/25/00 11.75 2.5
4/26/00 11.5625 0.9
4/27/00 11.8125 1.2
4/28/00 11.75 5.6
5/1/00 11.875 2.2
5/2/00 11.625 5
5/3/00 11.6875 1.6
5/4/00 11.625 3.3
5/5/00 11.625 1.8
5/8/00 11.75 18.9
5/9/00 11.9375 5.5
5/10/00 11.875 1
5/11/00 11.875 5
5/12/00 11.75 2.6
5/15/00 11.9375 3.1
5/16/00 11.8125 2.9
5/17/00 11.75 7.8
5/18/00 11.5625 9
5/19/00 11.9375 3.3
5/22/00 11.78125 0
5/23/00 11.8125 3.8
5/24/00 11.9375 2.8
5/25/00 11.8125 3.6
5/26/00 11.875 1.3
5/30/00 11.75 7.6
5/31/00 11.6875 5
6/1/00 11.625 2.8
6/2/00 11.625 11.2
6/5/00 11.5625 3.2
6/6/00 11.5 5.6
6/7/00 11.5 13.4
6/8/00 11.4375 2
6/9/00 11.75 7.7
6/12/00 11.5625 1.5
6/13/00 11.5 19.7
6/14/00 11.5625 1.1
6/15/00 11.5625 3.7
6/16/00 11.5625 0.2
6/19/00 11.6875 5.1
6/20/00 11.8125 1.7
6/21/00 11.8125 4.7
6/22/00 11.8125 3.2
6/23/00 11.75 0.8
6/26/00 11.8125 7
6/27/00 11.8125 2.1
6/28/00 11.75 17.5
6/29/00 11.8125 5.9
6/30/00 11.8125 1.3
7/3/00 11.8125 3.8
7/5/00 11.75 7.9
7/6/00 11.8125 1.6
7/7/00 11.875 0.6
7/10/00 11.875 7.2
7/11/00 11.9375 14.6
7/12/00 11.9375 2
7/13/00 12.0625 4.8
7/14/00 11.9375 19.1
7/17/00 11.8125 2
7/18/00 11.8125 3.1
7/19/00 11.875 10.1
7/20/00 11.875 6.3
7/21/00 11.875 6.3
7/24/00 11.9375 6.4
7/25/00 11.9375 15.6
7/26/00 11.9375 10
7/27/00 11.6875 10.3
7/28/00 11.5 19.5
7/31/00 11.5 4.7
8/1/00 11.5 4.9
8/2/00 11.5625 3
8/3/00 11.625 28.8
8/4/00 11.9375 14.8
8/7/00 11.875 0.8
8/8/00 11.8125 14.8
8/9/00 11.8125 4.1
8/10/00 11.8125 0
8/11/00 11.875 7
8/14/00 11.875 31
8/15/00 11.9375 2.5
8/16/00 12 25.7
8/17/00 11.9375 41.2
8/18/00 12 2.2
8/21/00 12 8.5
8/22/00 11.88 22.10
8/23/00 11.81 22.80
8/24/00 11.88 5.00
8/25/00 11.69 29.80
8/28/00 11.75 10.40
Notes:
Sources include Bloomberg Financial Markets and FactSet Research Systems.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
36
<PAGE>
August 29, 2000
Addendum
==================================================================
Comparable Company Profiles
Chateau Communities, Inc.
Company Description
Chateau Communities is a self-administered and self-managed real estate
investment trust (REIT) that owns and operates more than 160 manufactured-home
communities with more than 50,000 homesites; it also owns 1,359 sites for
recreational vehicles and for other uses. More than 90% of its sites are
occupied. Additionally, Chateau Communities owns three retail home sales centers
and fee-manages more than 35 manufactured-home communities with about 8,500
homesites. Chateau Communities, which has properties in more than 30 states, is
one of the largest owner / managers of manufactured home communities in the
United States based both on the number of communities and the number of
residential homesites owned.
Trading Data (000'S)
Ticker CPJ Percentage over 12 Month Low 15.6%
Stock Price (8/28/00) $ 26.88 Indicated Annual Dividend $ 1.94
12 Month High $ 29.31 Payout Ratio 75.8%
12 Month Low $ 23.25 Common Yield 7.2
Trail. 12 month return (1.1)% Equity Market Cap. $ 765,462
Shares Outstanding 28,477 Total Long-Term Debt 486,900
OP Units Outstanding 3,671 Total Market Cap. $1,252,362
2000 Proj. FFO Per Share $ 2.66 Total Debt / Tot. Mkt. Cap. 38.9%
2001 Proj. FFO Per Share $ 2.88 Debt Ratings N/A
1999 Price/FFO 10.1 x IPO Date Nov-93
FFO Yield 9.9%
Executive Officers and Directors
Name Age Position
---- --- --------
Gary P. McDaniel 53 Chief Executive Officer
C.G. Kellogg 55 President
Tamara D. Fischer 43 Chief Financial Officer, Exec. V.P.
Rees F. Davis, Jr. 40 Executive Vice President -
Acquisitions
Lease Rollover and Debt Maturities
1999 2000 2001 2002 2003 Thereafter
-----------------------------------------------
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $21M $164M $0M $1M $70M $118M
Size Outstanding Interest Rate
---- ----------- -------------
Line of Credit $100M $37M Libor + 80 basis points
Maturity Date 2001
Financial Summary (000's)
At At
Balance Sheet: June 30, 2000 Dec. 31, 1999
------------- -------------
Net Real Estate $ 861,859 $ 863,435
Total Assets 997,465 981,673
Total Long-Term Debt 486,900 452,556
Total Stockholders' Equity 344,676 361,820
TTM 12 Mos. Ended
Income Statement: June 30, 2000 Dec. 31, 1999
------------- -------------
Total Revenue $ 196,541 $ 189,363
Interest Expense 33,477 32,318
G&A Expense 10,670 9,881
Net Income 35,157 34,626
FFO 81,763 77,629
FFO Per Share 2.56 2.45
Recent News
7/00 CPJ announces FFO / share increases in second quarter of 9.8% over 1999.
Total revenues were $50.8 million.
6/00 CPJ files to raise as much as $200 million from debt sales.
3/00 CPJ announces plan to buyback up to 1 million of its common shares.
2/00 CPJ sold $100 million, 5-yr, 8.5% notes as $75 million of its outstanding
notes come due.
1/99 CPJ announces 1999 management changes; James B. Grange, Chief Operating
Officer decided not to extend his employment agreement.
Insider Ownership (000's)
Name Number of Shares % of Total
---- ---------------- ----------
John A. Boll 3,578 12.3%
Gary P. McDaniel 510 1.8
C.G. Kellogg 388 1.4
Tamara D. Fischer 179 0.6
Analyst Recommendations
Firm Name: Analyst: Recommendation: Date:
--------- ------- -------------- ----
Raymond James Financial Paul D. Puryear Buy 7/28/00
Merrill Lynch & Co. Eric Hemel Near-term Accum. 7/27/00
Southwest Securities R. Christopher Case Accumulate 7/10/00
Paine Webber Inc. Jefferey Olson Attractive 6/2/00
Salomon Smith Barney Jonathan Litt Outperform 6/1/00
Robertson Stephens Jay P Leupp Long-term attractive 3/31/00
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
[LOGO OF LEGG MASON] Investment
Banking Windsor Park Properties
37
<PAGE>
August 29, 2000
Addendum
============================================================
Comparable Company Profiles
Manufactured Home Communities, Inc.
Company Description
Manufactured Home Communities is a real estate investment trust (REIT) that owns
and operates manufactured housing communities with 53,391 residential sites. The
REIT leases developed sites to owners of manufactured homes, which are produced
off-site and then transported to more than 120 communities in 24 states. Florida
properties account for about one-third of revenues. Its leases are generally
annual or month-to-month. Manufactured Home Communities' properties are similar
to residential subdivisions, with centralized entrances, gutters, curbs, and
paved streets. In addition, they offer such amenities as pools, spas,
clubhouses, golf courses, exercise rooms, and tennis courts.
Trading Data (000's)
Ticker MHC Percentage over 12 Month Low 8.4%
Stock Price (8/28/00) $ 24.13 Indicated Annual Dividend $1.55
12 Month High $ 25.75 Payout Ratio 69.5%
12 Month Low $ 22.25 Common Yield 6.4%
Trail. 12 month return 6.9% Equity Market Cap. $ 676,219
Shares Outstanding 28,024 Total Long-Term Debt 662,572
OP Units Outstanding 5,618 Total Market Cap. $1,338,791
2000 Proj. FFO Per Share $ 2.33 Total Debt / Tot. Mkt. Cap. 49.5%
2001 Proj. FFO Per Share $ 2.53 Debt Ratings N/A
1999 Price/FFO 10.4 x IPO Date Feb-93
FFO Yield 9.7%
Executive Officers and Directors
Name Age Position
---- --- --------
Samuel Zell 58 Chairman of the Board
Howard Walker 60 President, CEO and Director
Ellen Kelleher 39 Executive Vice President
Thomas P. Henegan 36 Executive Vice President, CFO, Treasurer
Gary W. Powell 59 Executive Vice President - Operations
Lease Rollover and Debt Maturities
1999 2000 2001 2002 2003 Thereafter
---- ---- ---- ---- ---- ----------
Lease Rollover 27% 10% 11% 11% 11% 30%
Debt Maturities $11M $4M $82M $253M $20M $381M
Size Outstanding Interest Rate
---- ----------- -------------
Line of Credit $175M $145M libor + 1.125%
Maturity Date 2000
Financial Summary (000's)
Balance Sheet: June 30, 2000 Dec. 31, 1999
------------- -------------
Net Real Estate $ 1,043,136 $ 1,113,586
Total Assets 1,112,900 1,160,338
Total Long-Term Debt 662,572 617,364
Total Stockholders' Equity 198,214 211,401
TTM 12 Mos. Ended
Income Statement: June 30, 2000 Dec. 31, 1999
------------- -------------
Total Revenue $ 219,610 $ 215,028
Interest Expense 53,394 53,775
G&A Expense 6,594 6,092
Net Income 32,825 27,772
FFO 65,416 68,477
FFO Per Share 2.23 2.19
Recent News
8/00 MHC announces that its board of directors has increased its current stock
repurchase program by an additional one million shares.
7/00 MHC announces FFO of 55 cents per share for Q2 2000 compared with 53 cents
per share for Q2 1999.
7/00 MHC announces the completion of a $110 million debt financing secured by
mortgages on seven communities. The 10-year notes were funded by Wells
Fargo and carry an interest rate of 7.84 percent.
Insider Ownership (000's)
Name Number of Shares % of Total
---- ---------------- ----------
Samuel Zell 2,663 9.5%
Gary W. Powell 286 1.0
Thomas P. Henegan 201 0.7
Howard Walker 192 0.7
David A. Helfand 140 0.5
Analyst Recommendations
Firm Name: Analyst: Recommendation: Date:
--------- ------- -------------- ----
Lehman Brothers David Shulman Neutral 7/26/00
Prudential Securities Louis W. Taylor Accumulate 7/26/00
Merrill Lynch & Co. Eric Hemel Near-term Accum. 7/25/00
Paine Webber Inc. Jeffrey Olson Attractive 6/2/00
ING Barings Jamie Handwerker Strong Buy 4/12/00
Robertson Stephens Jay P. Leupp Long-Term Attrac. 3/31/00
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
[LOGO OF LEGG MASON] Investment
Banking Windsor Park Properties
38
<PAGE>
August 29, 2000
Addendum
================================================================================
Comparable Company Profiles
Sun Communities, Inc.
Company Description
Sun Communities, Inc. a self-administered and self-managed real estate
investment trust (REIT), owns, operates, and finances manufactured-housing and
RV communities. Its more than 100 properties have an aggregate of more than
36,300 developed mobile-home sites and about 5,200 RV sites located in 12
Midwestern and Southeastern states, primarily in Michigan, Florida, and Indiana.
All its communities have on-site property managers and maintenance personnel.
Sun Communities caters to families and retirees by providing a variety of
amenities, including clubhouses, pools, and cable. Its Home Services subsidiary
sells new and used mobile homes to current and prospective residents.
Trading Data (000's)
<TABLE>
<S> <C> <C> <C>
Ticker SUI Percentage over 12 Month Low 17.2%
Stock Price (8/28/00) $31.50 Indicated Annual Dividend $2.04
12 Month High $35.88 Payout Ratio 65.6%
12 Month Low $26.88 Common Yield 6.5%
Trail. 12 month return (5.4)% Equity Market Cap. $544,887
Shares Outstanding 17,298 Total Long-Term Debt 353,501
OP Units Outstanding 2,705 Total Market Cap $898,388
2000 Proj. FFO Per Share $3.23 Total Debt / Tot. Mkt.Cap. 39.3%
2001 Proj. FFO Per Share $3.51 Debt Ratings BBB/Baa3
1999 Price/FFO 9.8 x IPO Date Dec-93
FFO Yield 10.3%
</TABLE>
Executive Officers and Directors
Name Age Position
---- --- --------
Milton M. Shiffman 70 Chairman of the Board
Gary A. Shiffman 45 Chief Executive Officer, President
Jeffrey P. Jorissen 55 Senior Vice President, Treasurer, CFO
Brian W. Fannon 51 Senior Vice President, COO
Jonathon M. Coleman 44 Senior Vice President - Acquisitions
Lease Rollover and Debt Maturities
1999 2000 2001 2002 2003 Thereafter
----------------------------------------------------------
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $2M $2M $76M $17M $86M $156M
Size Outstanding Interest Rate
-------- ------------- ---------------
Line of Credit $100M $26M libor + .90%
Maturity Date 1999
Financial Summary (000's)
At At
Balance Sheet: June 30, 2000 Dec. 31, 1999
----------------- -----------------
Net Real Estate $ 781,133 $ 773,633
Total Assets 947,470 911,083
Total Long-Term Debt 353,501 358,473
Total Stockholders' Equity 335,477 338,358
TTM 12 Mos. Ended
Income Statement: June 30, 2000 Dec. 31, 1999
----------------- -----------------
Total Revenue $ 140,734 $ 134,416
Interest Expense 27,644 26,751
G&A Expense 3,872 3,682
Net Income 29,661 29,098
FFO 62,992 61,253
FFO Per Share 3.11 2.87
Recent News
8/00 SUI announces the issuance of $100 million 8.2% senior unsecured notes, due
2008.
7/00 SUI reported strong second quarter results; revenue increased to $36.1
million for the first quarter and FFO of $16.1 million over $15.2 million
for the second quarter of 1999.
4/00 SUI reported strong first quarter results; revenue increased to $35.9
million for the first quarter and FFO of $16.0 million over $15.1 million
for the first quarter 1999.
3/00 SUI Board of Directors announces plans to repurchase up to one million
shares of common stock.
Insider Ownership (000's)
Name Number of Shares % of Total
---- ---------------- ----------
Gary A. Shiffman 1,324 7.7 %
Milton M. Shiffman 782 4.5
Jeffrey P. Jorissen 284 1.6
Brain W. Fannon 104 less than 1.0
Jonathon M. Coleman 68 less than 1.0
Ted J. Simon 10 less than 1.0
Analyst Recommendations
Firm Name: Analyst: Recommendation: Date:
--------------------------- ------------------ -------------------- ----------
Lehman Brothers David Shulman Neutral 7/25/00
Prudential Securities Louis W. Taylor Accumulate 7/21/00
Merrill Lynch & Co. Eric Hemel Near-term accum. 7/20/00
PaineWebber Inc. Jeffrey Olson Attractive 6/2/00
Friedman, Billings & Ramsey Matthew Dembski Accumulate 5/30/00
Robertson Stephens Jay P. Leupp Long-term attractive 3/31/00
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
[LOGO] Investment Windsor Park Properties
Bank
39
<PAGE>
Addendum
================================================================================
Comparable Company Profiles
United Mobile Homes, Inc.
Company Description
United Mobile Homes is a real estate investment trust (REIT) that owns and
manages nearly 25 mobile-home communities with more than 5,600 spaces. Its
communities are located in New Jersey, New York, Ohio, Pennsylvania, and
Tennessee. The company leases manufactured-home spaces to homeowners on a
monthly basis; it leases homes to other residents. Some of its communities offer
swimming pools, tennis courts, and playgrounds. Municipal water and sewer
services are available at some locations; other locations provide services
on-site. Occupancy typically remains around 90% once a community is filled. Most
of the company's homes are sold on-site to new owners, rather than moved.
Trading Data (000's)
Ticker UMH Percentage over 12 Month Low 60.9 %
Stock Price (8/28/00) $9.06 Indicated Annual Dividend $0.75
12 Month High $9.38 Payout Ratio 73.5 %
12 Month Low $5.63 Common Yield 8.3 %
Trail. 12 month return 7.1 % Equity Market Cap. $66,410
Shares Outstanding 7,330 Total Long-Term Debt 36,705
OP Units Outstanding - Total Market Cap. $103,115
2000 Proj. FFO Per Share N/A Total Debt / Tot. Mkt. Cap. 35.6 %
2001 Proj. FFO Per Share N/A Debt Ratings N/A
1999 Price/FFO N/A x IPO Date Jan-85
FFO Yield N/A %
Executive Officers and Directors
Name Age Position
---- --- --------
Eugene W. Landy 66 Chairman of the Board
Samuel A. Landy 39 President
Richard H. Molke 73 Director, Vice President
Robert G. Sampson 74 Director
Anna T. Chew 41 Vice President
Lease Rollover and Debt Maturities
1999 2000 2001 2002 2003 Thereafter
------------------------------------------------------
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $1M $15M $0M $0M $6M N/A
Size Outstanding Interest Rate
-------- ----------- -------------
Line of Credit $1M $0M prime + .5%
Maturity Date 2000
Financial Summary (000's)
At At
Balance Sheet: June 30, 2000 Dec. 31, 1999
------------------- -------------------
Net Real Estate $ 41,568 $ 42,162
Total Assets 61,793 58,575
Total Long-Term Debt 36,705 35,093
Total Stockholders' 22,667 21,391
Equity
TTM 12 Mos. Ended
Income Statement: June 30, 2000 Dec. 31, 1999
------------------- -------------------
Total Revenue $ 19,801 $ 18,807
Interest Expense 2,556 2,106
G&A Expense 1,745 1,621
Net Income 5,106 4,556
FFO 7,555 7,010
FFO Per Share 1.02 0.97
Recent News
8/00 UMH reported net income of $2,705,000 and FFO of $3,921,000 for the six
months ended June 30, 2000.
6/00 UMH declared its regular quarterly dividend of $.19 per share. 6/00 UMH
announces that its Board of Directors has authorized the expenditure of
up to $3.5 million to repurchase up to 5% of the Company's common stock.
5/00 UMH reported net income of $1,484,000 and FFO of $2,073,000 for the quarter
ended March 31, 2000.
Insider Ownership (000's)
Name Number of Shares % of Total
---- ---------------- ----------
Eugene W. Landy 908 12.4 %
Richard H. Molke 381 5.2
Samuel A. Landy 273 3.7
Robert G. Sampson 131 1.8
Analyst Recommendations
Firm Name: Analyst: Recommendation: Date:
---------------------- ------------------- ------------------- ---------
NONE
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
[LOGO] Investment Windsor Park Properties
Banking
40
<PAGE>
August 29, 2000
Addendum
================================================================================
Comparable Company Profiles
American Land Lease, Inc.
Company Description
American Land Lease, Inc. (ANL) is a real estate investment trust (REIT) that
owns or has investments in 20 manufactured housing communities and manages five
others in Arizona, Florida, New Jersey, and Pennsylvania. It also owns a
recreational vehicle (RV) park in California and a golf course next to one of
the communities. ANL's manufactured home communities and RV parks contain 6,000
developed and undeveloped home and vehicle sites. The trust owns 27% of
Commercial Assets, a specialized real estate investment trust that owns and
manages debt instruments secured by loans on multifamily housing properties.
Trading Data (000's)
Ticker AIC Percentage over 12 Month Low 9.9%
Stock Price (8/28/00) $11.75 Indicated Annual Dividend $1.00
12 Month High $13.75 Payout Ratio 65.8%
12 Month Low $10.69 Common Yield 8.5%
Trail. 12 month return (5.4)% Equity Market Cap. $65,553
Shares Outstanding 5,579 Total Long-Term Debt 51,997
OP Units Outstanding 1,045 Total Market Cap. $117,550
2000 Proj. FFO Per Share $1.55 Total Debt / Tot. Mkt. Cap. 44.2%
2001 Proj. FFO Per Share $1.70 Debt Ratings N/A
1999 Price/FFO 7.6 x IPO Date Dec-86
FFO Yield 13.2 %
Executive Officers and Directors
Name Age Position
---- --- --------
Terry Considine 52 Chairman of the Board and CEO
Thomas L. Rhodes 60 Vice Chairman of the Board
Bruce E. Moore 57 President and COO
Bruce Benson 61 Chairman of the Compensation Committee
Elliot H. Kline 59 Chairman of the Audit Committee
David M. Becker 40 CFO, Secretary & Treasurer
Lease Rollover and Debt Maturities
1999 2000 2001 2002 2003 Thereafter
---------------------------------------------------------
Lease Rollover N/A N/A N/A N/A N/A N/A
Debt Maturities $1M $11M $1M $1M $1M $26M
Size Outstanding Interest Rate
------------ ----------- -------------
Line of Credit $4M $2M libor + 1.75%
Maturity Date 2000
Financial Summary (000's)
At At
Balance Sheet: June 30, 2000 Dec. 31, 1999
------------------- -------------------
Net Real Estate $ 138,655 $ 108,754
Total Assets 174,214 159,093
Total Long-Term Debt 51,997 53,994
Total Stockholders' Equity 82,048 83,852
TTM 12 Mos. Ended
Income Statement: June 30, 2000 Dec. 31, 1999
------------------- -------------------
Total Revenue $ 26,681 $ 20,312
Interest Expense 3,546 3,846
G&A Expense 1,628 1,530
Net Income 2,081 2,406
FFO 9,547 9,756
FFO Per Share 1.52 1.49
Recent News
8/00 Asset Investors Corporation (AIC) announces that its merger with Commercial
Assets, Inc. closed on August 11. In addition, AIC has changed its name to
American Land Lease, Inc.
7/00 AIC announces FFO per share of $0.31 per share for the second quarter of
2000 compared to $0.37 per share for the second quarter of 1999.
7/00 Commercial Assets, Inc. settles a lawsuit with stock owners who said they'd
be in a $41.7 million buyout by partner and former parent Asset Investors
Corporation.
Insider Ownership (000's)
Name Number of Shares % of Total
---- ---------------- ----------
Terry Considine 754 12.3 %
Thomas L. Rhodes 289 4.9
Bruce E. Moore 230 3.9
Bruce D. Benson 150 2.6
Elliot H. Kline 52 less than 1.0
Analyst Recommendations
Firm Name: Analyst: Recommendation: Date:
------------------------- ------------------- ----------------- ----------
Raymond James Financial Paul D. Puryear Buy 4/26/00
Robertson Stephens Jay P. Leupp Long-term Attractive 3/31/00
Notes:
Sources include Company Source Documents, Bloomberg Financial Markets and
FactSet Research Systems.
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
41
<PAGE>
August 29, 2000
Addendum
================================================================================
FFO Current / Forward Multiples Analysis
Current Year Multiples
[GRAPH APPEARS HERE]
Multiple X
August 28, August 28, August 28, August 28, August 28,
1996 1997 1998 1999 2000
---------- ---------- ---------- ---------- ----------
CPJ 14.4 14.8 12.2 11.9 10.1
MHC 12.3 13.6 12.0 10.9 10.4
SUI 12.5 13.8 12.0 11.8 9.8
ANL 12.1 8.6 7.5
Forward Year Multiples
[GRAPH APPEARS HERE]
Multiple X
August 28, August 28, August 28, August 28, August 28,
1996 1997 1998 1999 2000
---------- ---------- ---------- ---------- ----------
CPJ 14.4 16.6 12.5 11.7 10.1
MHC 13.1 14.5 12.7 11.0 10.1
SUI 12.3 13.9 12.1 11.8 9.6
ANL 7.9 6.4
[LOGO OF LEGG MASON] Investment Windsor Park Properties
Banking
42
<PAGE>
August 29, 2000
Addendum
=============================================================
Sensitivity Analysis
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
WPP 5
------------------------- ------------------------- ------------------------- -------------------------
DCF 2000 2001 EBITDA
Valuation Multiples Valuation Multiples Valuation Valuation Consideration
------------------------- ------------------------- ------------------------- -------------------------
High Mean Low High Mean Low High Mean Low High Mean Low Paid
------------------------- ------------------------- ------------------------- ------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0% dis $ 23.05 $ 20.20 $ 15.81 $ 22.07 $ 20.22 $ 16.41 $ 22.30 $ 20.40 $ 16.42 $ 16.94 $ 14.01 $ 11.40 $ 23.77
5% dis 21.77 19.07 14.92 21.01 19.25 15.63 21.23 19.43 15.64 15.45 12.67 10.19
10% dis 20.49 17.94 14.03 19.96 18.29 14.86 20.16 18.45 14.87 13.96 11.33 8.98
15% dis 19.22 16.83 13.15 18.90 17.33 14.09 19.09 17.48 14.10 12.47 9.98 7.76
20% dis 17.95 15.71 12.28 17.84 16.36 13.31 18.02 16.51 13.32 10.98 8.64 6.55
25% dis 16.69 14.61 11.41 16.78 15.40 12.54 16.96 15.53 12.55 9.49 7.29 5.34
30% dis 15.44 13.51 10.55 15.73 14.43 11.76 15.89 14.56 11.77 8.00 5.95 4.12
35% dis 14.20 12.42 9.70 14.67 13.47 10.99 14.82 13.59 11.00 6.51 4.61 2.91
40% dis 12.97 11.34 8.86 13.61 12.50 10.22 13.75 12.61 10.22 5.02 3.26 1.70
45% dis 11.75 10.28 8.03 12.56 11.54 9.44 12.68 11.64 9.45 3.53 1.92 0.48
50% dis 10.55 9.22 7.21 11.50 10.57 8.67 11.61 10.67 8.68 2.04 0.58 (0.73)
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
WPP 7
------------------------- ------------------------- ------------------------- --------------------------
DCF 2000 2001 EBITDA
Valuation Multiples Valuation Multiples Valuation Valuation Consideration
------------------------- ------------------------- ------------------------- --------------------------
High Mean Low High Mean Low High Mean Low High Mean Low Paid
------------------------- ------------------------- ------------------------- -------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0% dis $ 113.96 $ 100.75 $ 80.37 $ 95.66 $ 86.73 $ 68.35 $ 94.56 $ 85.60 $ 66.81 $ 76.87 $ 59.60 $ 44.19 $ 100.72
5% dis 108.03 95.52 76.23 90.56 82.08 64.62 89.52 81.01 63.16 68.08 51.67 37.03
10% dis 102.11 90.30 72.10 85.46 77.43 60.88 84.48 76.41 59.50 59.29 43.74 29.88
15% dis 96.22 85.11 67.99 80.36 72.78 57.15 79.43 71.82 55.85 50.50 35.81 22.72
20% dis 90.35 79.93 63.91 75.27 68.13 53.42 74.39 67.22 52.19 41.70 27.88 15.56
25% dis 84.50 74.79 59.85 70.17 63.48 49.69 69.35 62.63 48.54 32.91 19.95 8.40
30% dis 78.68 69.67 55.81 65.07 58.82 45.96 64.31 58.03 44.88 24.12 12.03 1.24
35% dis 72.90 64.58 51.81 59.97 54.17 42.22 59.26 53.44 41.23 15.33 4.10 (5.92)
40% dis 67.15 59.53 47.84 54.88 49.52 38.49 54.22 48.84 37.57 6.53 (3.83) (13.07)
45% dis 61.44 54.52 43.91 49.78 44.87 34.76 49.18 44.25 33.92 (2.26) (11.76) (20.23)
50% dis 55.79 49.56 40.02 44.68 40.22 31.03 44.14 39.66 30.26 (11.05) (19.69) (27.39)
=====================================================================================================================
</TABLE>
[LOGO OF LEGG MASON] Investment
Banking Windsor Park Properties
43
|
|