FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _________to _________
Commission file number 0-10260
SHELTER PROPERTIES III
(Exact name of small business issuer as specified in its charter)
South Carolina 57-0718508
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Beattie Place, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No____
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a)
SHELTER PROPERTIES III
CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands, except per unit data)
March 31, 2001
Assets
Cash and cash equivalents $ 590
Receivables and deposits 215
Restricted escrows 135
Other assets 486
Investment properties:
Land $ 1,281
Buildings and related personal property 27,075
28,356
Less accumulated depreciation (17,416) 10,940
$ 12,366
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 64
Tenant security deposit liabilities 104
Accrued property taxes 103
Other liabilities 467
Mortgage notes payable 15,234
Partners' Deficit
General partners $ (103)
Limited partners (55,000 units issued and
outstanding) (3,503) (3,606)
$ 12,366
See Accompanying Notes to Consolidated Financial Statements
b)
SHELTER PROPERTIES III
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended
March 31,
2001 2000
Revenues:
Rental income $1,314 $1,317
Other income 129 104
Total revenues 1,443 1,421
Expenses:
Operating 569 606
General and administrative 76 60
Depreciation 272 260
Interest 286 156
Property taxes 108 83
Total expenses 1,311 1,165
Net income $ 132 $ 256
Net income allocated to general partners (1%) $ 1 $ 3
Net income allocated to limited partners (99%) 131 253
$ 132 $ 256
Net income per limited partnership unit $ 2.38 $4.60
Distributions per limited partnership unit $17.28 $ --
See Accompanying Notes to Consolidated Financial Statements
c)
SHELTER PROPERTIES III
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
(Unaudited)
(in thousands, except unit data)
Limited
Partnership General Limited
Units Partners Partners Total
Original capital contributions 55,000 $ 2 $27,500 $27,502
Partners' deficit at
December 31, 2000 55,000 $ (94) $(2,684) $(2,778)
Distributions to partners (10) (950) (960)
Net income for the three months
ended March 31, 2001 -- 1 131 132
Partners' deficit at
March 31, 2001 55,000 $ (103) $(3,503) $(3,606)
See Accompanying Notes to Consolidated Financial Statements
d)
SHELTER PROPERTIES III
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Three Months Ended
March 31,
2001 2000
Cash flows from operating activities:
Net income $ 132 $ 256
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 272 260
Amortization of discounts and loan costs 8 26
Change in accounts:
Receivables and deposits 263 296
Other assets (89) (53)
Accounts payable (30) (19)
Tenant security deposit liabilities -- (1)
Accrued property taxes (167) (59)
Other liabilities 93 (57)
Net cash provided by operating activities 482 649
Cash flows from investing activities:
Property improvements and replacements (138) (202)
Net withdrawals from (deposits to) restricted escrows 599 (168)
Net cash provided by (used in) investing
activities 461 (370)
Cash flows from financing activities:
Distributions to partners (960) --
Payments on mortgage notes payable (58) (68)
Net cash used in financing activities (1,018) (68)
Net (decrease) increase in cash and cash equivalents (75) 211
Cash and cash equivalents at beginning of period 665 655
Cash and cash equivalents at end of period $ 590 $ 866
Supplemental disclosure of cash flow information:
Cash paid for interest $ 197 $ 154
See Accompanying Notes to Consolidated Financial Statements
e)
SHELTER PROPERTIES III
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited consolidated financial statements of Shelter
Properties III (the "Partnership" or "Registrant") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Item 310 (b) of
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. The general partner responsible for management of the
Partnership's business is Shelter Realty III Corporation, a South Carolina
corporation (the "Corporate General Partner"). The Corporate General Partner is
a subsidiary of Apartment Investment and Management Company ("AIMCO"), a
publicly traded real estate investment trust. In the opinion of the Corporate
General Partner, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three month period ended March 31, 2001, are not necessarily
indicative of the results that may be expected for the fiscal year ending
December 31, 2001. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Partnership's Annual Report on
Form 10-KSB for the year ended December 31, 2000.
Principles of Consolidation
The financial statements include all of the accounts of the Partnership and its
99.99% owned partnership. The Corporate General Partner of the consolidated
partnership is Shelter Realty III Corporation. Shelter Realty III Corporation
may be removed as the general partner of the consolidated partnership by the
Registrant; therefore, the consolidated partnership is controlled and
consolidated by the Registrant. All significant interpartnership balances have
been eliminated.
Segment Reporting
Statement of Financial Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
way that public business enterprises report information about operating segments
in annual financial statements and requires that those enterprises report
selected information about operating segments in interim financial reports. It
also establishes standards for related disclosures about products and services,
geographic areas, and major customers. As defined in SFAS No. 131, the
Partnership has only one reportable segment. The Corporate General Partner
believes that segment-based disclosures will not result in a more meaningful
presentation than the consolidated financial statements as currently presented.
Note B - Reconciliation of Cash Flows
The following is a reconciliation of the subtotal on the accompanying
consolidated statements of cash flows captioned "net cash provided by operating
activities" to "net cash used in operations", as defined in the Partnership
Agreement. However, "net cash used in operations" should not be considered an
alternative to net income as an indicator of the Partnership's operating
performance or to cash flows as a measure of liquidity.
For the Three Months Ended
March 31,
2001 2000
(in thousands)
Net cash provided by operating activities $ 482 $ 649
Payments on mortgage notes payable (58) (68)
Property improvements and replacements (138) (202)
Change in restricted escrows, net 599 (168)
Changes in reserves for net operating
assets (70) (107)
Additional reserves (391) (104)
Net cash provided by operations $ 424 $ --
The Corporate General Partner reserved approximately $391,000 and $104,000 at
March 31, 2001 and 2000, respectively, to fund capital improvements and repairs
at the Partnership's four investment properties.
Note C - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the Corporate General
Partner and its affiliates for the management and administration of all
partnership activities. The Partnership Agreement provides for (i) payments to
affiliates for services and (ii) reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership. The following amounts were paid or
accrued to the Corporate General Partner and affiliates during the three months
ended March 31, 2001 and 2000.
2001 2000
(in thousands)
Property management fees (included in
operating expenses) $ 73 $ 72
Reimbursement for services of affiliates
(included in operating and general and
administrative expenses and investment properties) 46 27
Due to general partners (included in other liabilities) 185 185
Due from general partners (included in receivables and
deposits) 11 11
During the three months ended March 31, 2001 and 2000, affiliates of the
Corporate General Partner were entitled to receive 5% of gross receipts from all
of the Registrant's properties for providing property management services. The
Registrant paid to such affiliates approximately $73,000 and $72,000 for the
three months ended March 31, 2001 and 2000, respectively.
An affiliate of the Corporate General Partner received reimbursement of
accountable administrative expenses amounting to approximately $46,000 and
$27,000 for the three months ended March 31, 2001 and 2000, respectively.
During 1986 a liability of approximately $185,000 was incurred to the general
partners for sales commissions earned. Pursuant to the Partnership Agreement,
this liability cannot be paid until certain levels of returns are received by
the limited partners. As of March 31, 2001, the level of return to the limited
partners has not been met.
In addition to its indirect ownership of the combined general partner interests
in the Partnership, AIMCO and its affiliates currently own 34,527 limited
partnership units in the Partnership representing 62.78% of the outstanding
units. A number of these units were acquired pursuant to tender offers made by
AIMCO or its affiliates. It is possible that AIMCO or its affiliates will make
one or more additional offers to acquire additional limited partnership
interests in the Partnership for cash or in exchange for units in the operating
partnership of AIMCO. Under the Partnership Agreement, unitholders holding a
majority of the Units are entitled to take action with respect to a variety of
matters, which would include without limitation, voting on certain amendments to
the Partnership Agreement and voting to remove the general partners. As a result
of its ownership of 62.78% of the outstanding units, AIMCO is in a position to
influence all voting decisions with respect to the Registrant. When voting on
matters, AIMCO would in all likelihood vote the Units it acquired in a manner
favorable to the interest of the Corporate General Partner because of their
affiliation with the Corporate General Partner.
Note D - Distributions
During the three months ended March 31, 2001, the Partnership made distributions
of approximately $960,000 (approximately $950,000 to the limited partners or
$17.28 per limited partnership unit) from operations. Subsequent to March 31,
2001, the Partnership made a distribution of approximately $424,000
(approximately $420,000 to the limited partners or $7.63 per limited partnership
unit) from operations. There were no distributions during the three months ended
March 31, 2000.
Note E - Legal Proceedings
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, its Corporate General Partner and several of their affiliated
partnerships and corporate entities. The action purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging, among other things, the acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc. ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited partnership units; management of
the partnerships by the Insignia affiliates; and the Insignia Merger. The
plaintiffs seek monetary damages and equitable relief, including judicial
dissolution of the Partnership. On June 25, 1998, the Corporate General Partner
filed a motion seeking dismissal of the action. In lieu of responding to the
motion, the plaintiffs filed an amended complaint. The Corporate General Partner
filed demurrers to the amended complaint which were heard February 1999.
Pending the ruling on such demurrers, settlement negotiations commenced. On
November 2, 1999, the parties executed and filed a Stipulation of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the settlement was obtained on November 3, 1999 from the Court, at which time
the Court set a final approval hearing for December 10, 1999. Prior to the
December 10, 1999 hearing, the Court received various objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement. On
December 14, 1999, the Corporate General Partner and its affiliates terminated
the proposed settlement. In February 2000, counsel for some of the named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated the settlement. On June 27, 2000, the Court entered an order
disqualifying them from the case and an appeal was taken from the order on
October 5, 2000. On December 4, 2000, the Court appointed the law firm of Lieff
Cabraser Heimann & Bernstein LLP as new lead counsel for plaintiffs and the
putative class. Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001, the Corporate General Partner and its affiliates filed a
demurrer to the third amended complaint. The demurrer is scheduled to be heard
on May 14, 2001. The Court has also scheduled a hearing on a motion for class
certification for August 27, 2001. Plaintiffs must file their motion for class
certification no later than June 15, 2001. The Corporate General Partner does
not anticipate that costs associated with this case will be material to the
Partnership's overall operations.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature arising in the ordinary course of business.
Item 2. Management's Discussion and Analysis or Plan of Operation
The matters discussed in this Form 10-QSB contain certain forward-looking
statements and involve risks and uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the
disclosures contained in this Form 10-QSB and the other filings with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussions of the Registrant's business and results of operations, including
forward-looking statements pertaining to such matters, does not take into
account the effects of any changes to the Registrant's business and results of
operations. Accordingly, actual results could differ materially from those
projected in the forward-looking statements as a result of a number of factors,
including those identified herein.
The Partnership's investment properties consist of four apartment complexes. The
following table sets forth the average occupancy of the properties for each of
the three months ended March 31, 2001 and 2000:
Average
Occupancy
Property 2001 2000
Essex Park Apartments
Columbia, South Carolina 91% 91%
Colony House Apartments
Mufreesboro, Tennessee 88% 94%
North River Village Apartments
Atlanta, Georgia 88% 92%
Willowick Apartments
Greenville, South Carolina 93% 95%
The Corporate General Partner attributes the decrease in occupancy at Colony
House Apartments and North River Village Apartments to the competitive market of
the apartment industry in the Mufreesboro and Atlanta areas. The decrease is
also attributable to the purchase of new homes by tenants due to lower interest
rates.
Results of Operations
The Registrant's net income for the three months ended March 31, 2001 was
approximately $132,000 as compared to approximately $256,000 for the three
months ended March 31, 2000. The decrease in net income was due to an increase
in total expenses which were partially offset by an increase in total revenues.
The increase in total expenses was primarily due to an increase in interest
expense, property tax expense and general and administrative expenses which was
slightly offset by a decrease in operating expenses. Interest expense increased
due to the refinancings of the mortgages encumbering Colony House Apartments,
Essex Park Apartments, and Willowick Apartments during December 2000. Property
tax expense increased due to an increase in the assessed values and timing and
receipt of invoices from the taxing authorities at Essex Park Apartments and
Willowick Apartments which affected the recorded property tax accruals. General
and administrative expenses increased due to an increase in audit fees and
management reimbursements to the Corporate General Partner allowed under the
Partnership Agreement. Operating expense decreased due to a decrease in
maintenance expenses which was partially offset by an increase in property
expenses at the Partnership's investment properties. Maintenance expense
decreased largely because of the reduction in contract service providers that
were employed by the investment properties. Property expense increased due to an
increase in employee salaries and related benefits.
Included in general and administrative expenses for the three months ended March
31, 2001 and 2000 are costs associated with the quarterly and annual
communications with investors and regulatory agencies and the annual audit and
appraisals required by the Partnership Agreement.
Total revenues increased as a result of an increase in other income. Other
income increased as a result of an increase in interest income as a result of
higher average cash balances being maintained in interest bearing accounts.
As part of the ongoing business plan of the Registrant, the Corporate General
Partner monitors the rental market environments of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the Corporate General Partner attempts to protect the Partnership
from the burden of inflation-related increases in expenses by increasing rents
and maintaining a high overall occupancy level. However, due to changing market
conditions which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
Corporate General Partner will be able to sustain such a plan.
Liquidity and Capital Resources
At March 31, 2001, the Registrant had cash and cash equivalents of approximately
$590,000 as compared to approximately $866,000 at March 31, 2000. Cash and cash
equivalents decreased approximately $75,000 for the three months ended March 31,
2001 from the Registrant's year end, primarily due to approximately $1,018,000
of cash used in financing activities, which was partially offset by
approximately $482,000 of cash provided by operating activities and
approximately $461,000 of cash provided by investing activities. Cash provided
by investing activities consisted of net withdrawals from restricted escrow
accounts maintained by the mortgage lender which was partially offset by cash
used for property improvements and replacements at all four of the Partnership's
properties. Cash used in financing activities consisted of payments of principal
made on the mortgages encumbering the Registrant's properties and distributions
to partners. The Registrant invests its working capital reserves in interest
bearing accounts.
The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the investment properties to adequately maintain the
physical assets and other operating needs of the Registrant and to comply with
Federal, state, local, legal, and regulatory requirements. Capital improvements
completed at each of the Registrant's properties are detailed below.
Essex Park Apartments
The Partnership has completed approximately $28,000 in capital expenditures as
of March 31, 2001, consisting primarily of floor covering replacement, painting,
and appliance replacements and exterior painting. These improvements were funded
primarily from Partnership operations. The Partnership has budgeted, but is not
limited to, approximately $151,000 for capital improvements during 2001 at Essex
Park Apartments, consisting primarily of appliance and floor covering
replacements and air conditioning replacements.
Colony House Apartments
The Partnership has completed approximately $36,000 in capital expenditures as
of March 31, 2001, consisting primarily of floor covering and appliance
replacements, structural improvements, and air conditioning replacements. These
improvements were funded primarily from Partnership operations. The Partnership
has budgeted, but is not limited to, approximately $76,000 for capital
improvements during 2001 at Colony House Apartments consisting primarily of
appliance and floor covering replacements and other building improvements.
North River Village Apartments
The Partnership has completed approximately $63,000 in capital expenditures as
of March 31, 2001, consisting primarily of floor covering and appliance
replacements and structural improvements. These improvements were funded
primarily from Partnership operations. The Partnership has budgeted, but is not
limited to, approximately $37,000 for capital improvements during 2001 at North
River Village Apartments, consisting primarily of appliance and floor covering
replacements and structural improvements. The Partnership is currently reviewing
the proposed budget.
Willowick Apartments
The Partnership has completed approximately $11,000 in capital expenditures as
of March 31, 2001, consisting primarily of floor covering and appliance
replacements. These improvements were funded primarily from Partnership
operations. The Partnership has budgeted, but is not limited to, approximately
$66,000 for capital improvements during 2001 at Willowick Apartments, consisting
primarily of appliance and floor covering replacements, air conditioning
improvements, and landscaping.
The additional capital expenditures will be incurred only if cash is available
from operations and Partnership reserves. To the extent that such budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.
The Registrant's current assets are thought to be sufficient for any near term
needs (exclusive of capital improvements) of the Registrant. The mortgage
indebtedness of approximately $15,234,000, net of discount, is amortized over
varying periods with balloon payments due from October 2003 to January 2021. The
Corporate General Partner will attempt to refinance such indebtedness and/or
sell the properties prior to such maturity date. If the properties cannot be
refinanced or sold for a sufficient amount, the Registrant will risk losing such
properties through foreclosure.
During the three months ended March 31, 2001, the Partnership made distributions
of approximately $960,000 (approximately $950,000 to the limited partners or
$17.28 per limited partnership unit) from operations. Subsequent to the three
months ended March 31, 2001, the Partnership made a distribution of
approximately $424,000 (approximately $420,000 to the limited partners or $7.63
per limited partnership unit) from operations. Future cash distributions will
depend on the levels of net cash generated from operations, the availability of
cash reserves, and the timing of debt maturities, refinancings, and/or property
sales. The Partnership's distribution policy is reviewed on a monthly basis.
There can be no assurance, however, that the Partnership will generate
sufficient funds from operations, after planned capital improvement
expenditures, to permit any additional distributions to its partners in 2001 or
subsequent periods. In addition, the Partnership may be restricted from making
distributions if the amount in the reserve account for North River Village
Apartments maintained by the mortgage lender is less than $200 per apartment
unit. As of March 31, 2001 the reserve account was fully funded with
approximately $54,000 on deposit with the mortgage lender.
In addition to its indirect ownership of the combined general partner interests
in the Partnership, AIMCO and its affiliates currently own 34,527 limited
partnership units in the Partnership representing 62.78% of the outstanding
units. A number of these units were acquired pursuant to tender offers made by
AIMCO or its affiliates. It is possible that AIMCO or its affiliates will make
one or more additional offers to acquire additional limited partnership
interests in the Partnership for cash or in exchange for units in the operating
partnership of AIMCO. Under the Partnership Agreement, unitholders holding a
majority of the Units are entitled to take action with respect to a variety of
matters, which would include without limitation, voting on certain amendments to
the Partnership Agreement and voting to remove the general partners. As a result
of its ownership of 62.78% of the outstanding units, AIMCO is in a position to
influence all voting decisions with respect to the Registrant. When voting on
matters, AIMCO would in all likelihood vote the Units it acquired in a manner
favorable to the interest of the Corporate General Partner because of their
affiliation with the Corporate General Partner.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, its Corporate General Partner and several of their affiliated
partnerships and corporate entities. The action purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging, among other things, the acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc. ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited partnership units; management of
the partnerships by the Insignia affiliates; and the Insignia Merger. The
plaintiffs seek monetary damages and equitable relief, including judicial
dissolution of the Partnership. On June 25, 1998, the Corporate General Partner
filed a motion seeking dismissal of the action. In lieu of responding to the
motion, the plaintiffs filed an amended complaint. The Corporate General Partner
filed demurrers to the amended complaint which were heard February 1999.
Pending the ruling on such demurrers, settlement negotiations commenced. On
November 2, 1999, the parties executed and filed a Stipulation of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the settlement was obtained on November 3, 1999 from the Court, at which time
the Court set a final approval hearing for December 10, 1999. Prior to the
December 10, 1999 hearing, the Court received various objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement. On
December 14, 1999, the Corporate General Partner and its affiliates terminated
the proposed settlement. In February 2000, counsel for some of the named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated the settlement. On June 27, 2000, the Court entered an order
disqualifying them from the case and an appeal was taken from the order on
October 5, 2000. On December 4, 2000, the Court appointed the law firm of Lieff
Cabraser Heimann & Bernstein LLP as new lead counsel for plaintiffs and the
putative class. Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001, the Corporate General Partner and its affiliates filed a
demurrer to the third amended complaint. The demurrer is scheduled to be heard
on May 14, 2001. The Court has also scheduled a hearing on a motion for class
certification for August 27, 2001. Plaintiffs must file their motion for class
certification no later than June 15, 2001. The Corporate General Partner does
not anticipate that costs associated with this case will be material to the
Partnership's overall operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
None.
b) Reports on Form 8-K filed during the quarter ended March 31,
2001:
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SHELTER PROPERTIES III
By: Shelter Realty III Corporation
Corporate General Partner
By: /s/Patrick J. Foye
Patrick J. Foye
Executive Vice President
By: /s/Martha L. Long
Martha L. Long
Senior Vice President and
Controller
Date: May 10, 2001