EXHIBIT 99.29
PORTFOLIO PROJECTIONS, VALUATIONS, FORECASTS AND
ASSUMPTIONS CONSIDERED BY ROBERT A. STANGER & CO., INC. IN PREPARING THE
PARTNERSHIP'S FAIRNESS OPINIONS AND SUMMARY PORTFOLIO APPRAISAL
In addition to the portfolio projections, valuations, forecasts and
assumptions described in the Partnership's fairness opinions and summary
portfolio appraisal report (the "Stanger Reports"), each prepared by Robert A.
Stanger & Co., Inc. ("Stanger") and included as Schedules II and III,
respectively, to Exhibit 99.6 of this Schedule 13E-3, Stanger also considered
the portfolio projections, valuations, forecasts, assumptions and other
information included herein in preparing the Stanger Reports:
The Partnership does not as a matter of course make public forecasts or
projections as to future performance or earnings. However, in analyzing the
value of the Partnerships under alternative methodologies, the General Partner
prepared the projections and forecasts included in this Exhibit 99.29. THE
PROJECTIONS AND FORECASTS WERE PREPARED SOLELY FOR INTERNAL USE AND NOT WITH A
VIEW TO PUBLIC DISCLOSURE OR COMPLIANCE WITH PUBLISHED GUIDELINES OF THE
COMMISSION REGARDING PROJECTIONS OR THE GUIDELINES ESTABLISHED BY THE AMERICAN
INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS REGARDING PROJECTIONS AND ARE INCLUDED
IN THIS SCHEDULE 13E-3 ONLY BECAUSE SUCH INFORMATION WAS MADE AVAILABLE TO
STANGER AND ALEX. BROWN & SONS INCORPORATED. In addition, because the estimates
and assumptions underlying these projections and forecasts are inherently
subject to significant economic and competitive uncertainties and contingencies,
which are beyond the Partnership's control, there can be no assurance that the
projections and forecasts will be realized. Actual results may be higher or
lower than those set forth herein. Deloitte & Touche LLP, the Partnership's
independent auditor, has not examined, compiled or otherwise applied procedures
to the financial projections and forecasts included in this Schedule 13E-3, and,
accordingly, does not express an opinion or any other form of assurance on the
financial projections and forecasts.
SUMMARY OF ALTERNATIVES
MARCH 31, 1996
ASSUMPTIONS:
- ---------------------------------------------------------------------------------------------
LIQUIDATION--
PURCHASE PRICE............................................................................. Appraised Value
SELLING COST (as a percentage of real estate value)........................................ 4.00%
MERGER--
CONSIDERATION.............................................................................. Net Asset Value
GOING CONCERN VALUE--
L.P. PREFERENCE RETURN..................... 9.00% 9.00%
GENERAL AND ADMINISTRATIVE COST INCREASE
PER ANNUM................................. 3.50% 3.50%
SELLING COST (as a percentage of real
estate value)............................. 4.00% 4.00%
NUMBER OF YEARS............................ 5 5
IDS1 IDS2 IDS3
---------------------- ---------------------- ----------------------
LOW HIGH LOW HIGH LOW HIGH
---------- ---------- ---------- ---------- ---------- ----------
DISCOUNT RATE.............................. 13.00% 12.00% 13.25% 12.25% 13.50% 12.50%
CAPITALIZATION RATE........................ 10.50% 10.00% 10.50% 10.00% 10.50% 10.00%
SUMMARY OF PARTNERSHIP VALUATION
UNDER ALTERNATIVE METHODOLOGIES
GOING CONCERN VALUE
------------------------------
IDS1 MERGER LIQUIDATION LOW HIGH NET BOOK VALUE
- --------------------------- -------------- -------------- -------------- -------------- ------------------
Partnership................ $ 40,066,700 $ 39,391,700 $ 36,608,307 $ 39,238,247 $ 25,930,707
--General Partner........ 2,003,335 1,969,585 1,830,415 2,109,786 0
--Limited Partners....... 38,063,365 37,422,115 34,777,892 37,128,461 25,930,707
Per Unit(1)................ $ 257 $ 253 $ 235 $ 251 $ 175
IDS2
- ---------------------------
Partnership................ $ 26,861,846 $ 26,271,146 $ 24,616,780 $ 26,448,456 $ 21,011,081
--General Partner........ 1,343,092 1,313,557 1,230,839 1,322,423 0
--Limited Partners....... 25,518,754 24,957,589 23,385,941 25,126,033 21,011,081
Per Unit(1)................ $ 222 $ 217 $ 203 $ 218 $ 183
IDS3
- ---------------------------
Partnership................ $ 39,649,643 $ 38,544,143 $ 37,986,797 $ 40,988,872 $ 22,851,497
--General Partner........ 2,960,762 2,905,487 4,237,281 4,746,198 0
--Limited Partners....... 36,688,881 35,638,656 33,749,516 36,242,674 22,851,497
Per Unit(1)................ $ 308 $ 299 $ 283 $ 304 $ 192
- ------------------------
(1) Based on the following number of outstanding Units for each Partnership:
IDS1 - 148,202
IDS2 - 115,110
IDS3 - 119,215
GOING CONCERN VALUE (LOW)(1)
DECEMBER 31, 2000
YEAR IDS1 IDS2 IDS3
- ----------------------------------------------------------------- -------------- -------------- --------------
1996 Net Cashflow................................................ $ 3,564,305 $ 2,290,348 $ 2,205,240
1997 Net Cashflow................................................ 3,627,619 1,986,945 3,721,101
1998 Net Cashflow................................................ 3,737,239 2,531,508 3,912,809
1999 Net Cashflow................................................ 3,849,455 2,633,187 4,077,711
2000 Net Cashflow(2)............................................. 43,908,261 30,683,399 44,800,036
-------------- -------------- --------------
Net Present Value at 12/31/95.................................... $ 34,777,892 $ 23,385,941 $ 33,749,516
-------------- -------------- --------------
-------------- -------------- --------------
GOING CONCERN VALUE (HIGH)(1)
DECEMBER 31, 2000
YEAR IDSI IDSII IDSIII
- ---------------------------------------------------------------- -------------- -------------- ---------------
1996 Net Cashflow............................................... $ 3,564,305 $ 2,290,348 $ 2,205,240
1997 Net Cashflow............................................... 3,627,619 1,986,945 3,721,101
1998 Net Cashflow............................................... 3,737,239 2,531,508 3,912,809
1999 Net Cashflow............................................... 3,849,455 2,633,187 4,077,711
2000 Net Cashflow(3)............................................ 45,728,605 32,185,159 46,940,326
-------------- -------------- ---------------
Net Present Value at 12/31/95................................... $ 37,128,461 $ 25,126,033 $ 36,242,674
-------------- -------------- ---------------
-------------- -------------- ---------------
NET BALANCE SHEET ADJUSTMENTS AT 12/31/95....................... $ 444,317 $ (3,115,712) $ (10,298,409)
PRINCIPAL AMORTIZATION (1996-2000).............................. 0 933,428 2,150,421
-------------- -------------- ---------------
NET BALANCE SHEET ADJUSTMENTS AT 12/31/00....................... $ 444,317 $ (2,182,284) $ (8,147,988)
-------------- -------------- ---------------
-------------- -------------- ---------------
- ------------------------
(1) Represents Limited Partners' portion of Partnership's going concern value.
(2) Comprised of property cash flow in 2000 plus the purchase price for the
Partnership's assets, based upon 2001 property cash flow capitalized at
10.5%.
(3) Comprised of property cash flow in 2000 plus the purchase price for the
Partnership's assets, based upon 2001 property cash flow capitalized at 10%.
LIMITED PARTNER PREFERRED RETURN ANALYSIS
GOING CONCERN VALUE -- LOW
DECEMBER 31, 2000
IDS1 IDS2 IDS3
--------------- --------------- ---------------
REQUIRED DISTRIBUTIONS........................................ $ (76,235,679) $ (56,619,629) $ (53,274,069)
ACTUAL DISTRIBUTIONS.......................................... 75,297,390 50,580,825 69,680,675
--------------- --------------- ---------------
TOTAL......................................................... $ (938,289) $ (6,038,804) $ 16,406,606
--------------- --------------- ---------------
--------------- --------------- ---------------
GENERAL PARTNER SHARE......................................... $ 0 $ 0 $ 123,050
IDS SHARE..................................................... 0 0 1,230,495
SSCI SHARE.................................................... 0 0 1,107,446
ACTUAL DISTRIBUTIONS TO LIMITED PARTNERS
YEAR IDS1 IDS2 IDS3
- -------------------------------------------------------------- --------------- --------------- ---------------
1988 Actual distribution...................................... $ 318,756 -- --
1989 Actual distribution...................................... 2,004,136 -- --
1990 Actual distribution...................................... 2,223,033 $ 1,372,551 $ 77,686
1991 Actual distribution...................................... 2,223,033 1,798,591 685,323
1992 Actual distribution...................................... 2,223,033 1,798,591 1,555,516
1993 Actual distribution...................................... 2,246,190 1,798,591 1,825,475
1994 Actual distribution...................................... 2,524,069 1,816,578 2,123,512
1995 Actual distribution...................................... 2,848,260 1,870,536 2,235,276
1996 Net cashflow............................................. 3,564,305 2,290,348 2,205,240
1997 Net cashflow............................................. 3,627,619 1,986,945 3,721,101
1998 Net cashflow............................................. 3,737,239 2,531,508 3,912,809
1999 Net cashflow............................................. 3,849,455 2,633,187 4,077,711
2000 Net cashflow............................................. 43,908,261 30,683,399 47,261,027
--------------- --------------- ---------------
TOTAL DISTRIBUTIONS........................................... $ 75,297,390 $ 50,580,825 $ 69,680,675
--------------- --------------- ---------------
--------------- --------------- ---------------
ACTUAL DISTRIBUTIONS THROUGH 3/31/96.......................... $ 17,328,364 $ 10,923,072 $ 9,061,607
REQUIRED DISTRIBUTIONS TO LIMITED PARTNERS TO ACHIEVE PREFERRED RETURN
YEAR IDS1 IDS2 IDS3
- -------------------------------------------------------------- --------------- --------------- ---------------
1988.......................................................... -- -- --
1989.......................................................... $ 2,501,049 -- --
1990.......................................................... 3,334,732 $ 1,942,478 --
1991.......................................................... 3,334,732 2,589,970 --
1992.......................................................... 3,334,732 2,589,970 $ 2,011,748
1993.......................................................... 3,334,732 2,589,970 2,682,331
1994.......................................................... 3,334,732 2,589,970 2,682,331
1995.......................................................... 3,334,732 2,589,970 2,682,331
1996.......................................................... 3,334,732 2,589,970 2,682,331
1997.......................................................... 3,334,732 2,589,970 2,682,331
1998.......................................................... 3,334,732 2,589,970 2,682,331
1999.......................................................... 3,334,732 2,589,970 2,682,331
2000.......................................................... 40,387,310 31,367,418 32,486,006
--------------- --------------- ---------------
TOTAL REQUIRED DISTRIBUTIONS.................................. $ 76,235,679 $ 56,619,629 $ 53,274,069
--------------- --------------- ---------------
--------------- --------------- ---------------
TOTAL REQUIRED DISTRIBUTIONS THROUGH 3/31/96.................. $ 60,395,702 $ 44,317,270 $ 40,532,998
LIMITED PARTNER CAPITAL CONTRIBUTIONS......................... $ 37,052,578 $ 28,777,448 $ 29,803,675
PREFERRED RETURN ANALYSIS
GOING CONCERN VALUE -- HIGH
DECEMBER 31, 2000
IDS1 IDS2 IDS3
--------------- --------------- ---------------
REQUIRED DISTRIBUTIONS........................................ $ (76,235,679) $ (56,619,629) $ (53,274,069)
ACTUAL DISTRIBUTIONS.......................................... 77,273,390 52,082,585 72,198,664
--------------- --------------- ---------------
TOTAL......................................................... $ 1,037,711 $ (4,537,044) $ 18,924,595
--------------- --------------- ---------------
--------------- --------------- ---------------
GENERAL PARTNER SHARE......................................... $ 7,783 $ 0 $ 141,934
IDS SHARE..................................................... 77,828 0 1,419,345
SSCI SHARE.................................................... 70,045 0 1,277,410
ACTUAL DISTRIBUTIONS TO LIMITED PARTNERS
YEAR IDS1 IDS2 IDS3
- ----------------------------------------------------------------- -------------- -------------- --------------
1988 Actual distribution......................................... $ 318,756 -- --
1989 Actual distribution......................................... 2,004,136 -- --
1990 Actual distribution......................................... 2,223,033 $ 1,372,551 $ 77,686
1991 Actual distribution......................................... 2,223,033 1,798,591 685,323
1992 Actual distribution......................................... 2,223,033 1,798,591 1,555,516
1993 Actual distribution......................................... 2,246,190 1,798,591 1,825,475
1994 Actual distribution......................................... 2,524,069 1,816,578 2,123,512
1995 Actual distribution......................................... 2,848,260 1,870,536 2,235,276
1996 Net cashflow................................................ 3,564,305 2,290,348 2,205,240
1997 Net cashflow................................................ 3,627,619 1,986,945 3,721,101
1998 Net cashflow................................................ 3,737,239 2,531,508 3,912,809
1999 Net cashflow................................................ 3,849,455 2,633,187 4,077,711
2000 Net cashflow................................................ 45,884,261 32,185,159 49,779,016
-------------- -------------- --------------
TOTAL DISTRIBUTIONS.............................................. $ 77,273,390 $ 52,082,585 $ 72,198,664
-------------- -------------- --------------
-------------- -------------- --------------
ACTUAL DISTRIBUTIONS THROUGH 3/31/96............................. $ 17,328,364 $ 10,923,072 $ 9,061,607
REQUIRED DISTRIBUTIONS TO LIMITED PARTNERS TO ACHIEVE PREFERRED RETURN
YEAR IDS1 IDS2 IDS3
- ----------------------------------------------------------------- -------------- -------------- --------------
1988............................................................. -- -- --
1989............................................................. $ 2,501,049 -- --
1990............................................................. 3,334,732 $ 1,942,478 --
1991............................................................. 3,334,732 2,589,970 --
1992............................................................. 3,334,732 2,589,970 $ 2,011,748
1993............................................................. 3,334,732 2,589,970 2,682,331
1994............................................................. 3,334,732 2,589,970 2,682,331
1995............................................................. 3,334,732 2,589,970 2,682,331
1996............................................................. 3,334,732 2,589,970 2,682,331
1997............................................................. 3,334,732 2,589,970 2,682,331
1998............................................................. 3,334,732 2,589,970 2,682,331
1999............................................................. 3,334,732 2,589,970 2,682,331
2000............................................................. 40,387,310 31,367,418 32,486,006
-------------- -------------- --------------
TOTAL REQUIRED DISTRIBUTIONS..................................... $ 76,235,679 $ 56,619,629 $ 53,274,069
-------------- -------------- --------------
-------------- -------------- --------------
TOTAL REQUIRED DISTRIBUTIONS THROUGH 3/31/96..................... $ 60,395,702 $ 44,317,270 $ 40,532,998
LIMITED PARTNER CAPITAL CONTRIBUTIONS............................ $ 37,052,578 $ 28,777,448 $ 29,803,675
NET CASHFLOW
GOING CONCERN VALUE
DECEMBER 31, 2000
GENERAL AND
PROPERTY ADMINISTRATIVE DEBT PRINCIPAL LIMITED PARTNERS'
IDS1 CASHFLOW EXPENSES SERVICE AMORTIZATION 95% SHARE OF CASHFLOW
- -------------- ----------- ------------- ----------- ------------ ---------------------------
1996.......... $ 3,962,000 $ (210,100) 0 0 $ 3,564,305
1997.......... 4,036,000 (217,454) 0 0 3,627,619
1998.......... 4,159,000 (225,064) 0 0 3,737,239
1999.......... 4,285,000 (232,942) 0 0 3,849,455
2000.......... 4,416,000 (241,095) 0 0 3,966,160
----------- ------------- ----------- ------------ ------------
TOTAL......... $20,858,000 $(1,126,654) $ 0 $ 0 $ 18,744,779
----------- ------------- ----------- ------------ ------------
----------- ------------- ----------- ------------ ------------
GENERAL AND
PROPERTY ADMINISTRATIVE DEBT PRINCIPAL LIMITED PARTNERS'
IDS2 CASHFLOW EXPENSES SERVICE(1) AMORTIZATION 95% SHARE OF CASHFLOW
- -------------- ----------- ------------- ----------- ------------ ---------------------------
1996.......... $ 2,923,000 $ (159,200) $ (274,700) $ (78,207) $ 2,290,348
1997.......... 3,051,000 (164,772) (239,851) (554,856) 1,986,945
1998.......... 3,146,000 (170,539) (218,645) (92,071) 2,531,508
1999.......... 3,259,000 (176,508) (210,817) (99,899) 2,633,187
2000.......... 3,358,000 (182,686) (202,321) (108,395) 2,721,368
----------- ------------- ----------- ------------ ------------
TOTAL......... $15,737,000 $ (853,705) $(1,146,334) $ (933,428) $ 12,163,357
----------- ------------- ----------- ------------ ------------
----------- ------------- ----------- ------------ ------------
GENERAL AND
PROPERTY ADMINISTRATIVE DEBT BUILDOUT PRINCIPAL LIMITED PARTNERS'
IDS3 CASHFLOW EXPENSES SERVICE(2) IN PROGRESS AMORTIZATION 95% SHARE OF CASHFLOW
- -------------- ----------- ------------- ----------- ----------- ------------ ---------------------------
1996.......... $ 4,790,000 $ (171,200) $ (857,813) $ 257,000 $(1,182,536) $ 2,205,240
1997.......... 5,074,000 (177,192) (765,066) (214,794) 3,721,101
1998.......... 5,282,000 (183,394) (747,882) (231,978) 3,912,809
1999.......... 5,462,000 (189,813) (729,325) (250,535) 4,077,711
2000.......... 5,634,000 (196,456) (709,282) (270,578) 4,234,800
----------- ------------- ----------- ------------ ------------
TOTAL......... $26,242,000 $ (918,054) $(3,809,368) $(2,150,421) $ 18,151,660
----------- ------------- ----------- ------------ ------------
----------- ------------- ----------- ------------ ------------
(1) Debt service and principal amortization are derived from IDS2's 12/31/95
audited financial statements (footnote D) and assumes the $470,000 line of
credit is repaid in May 1997.
(2) Debt service and principal amortization are based on IDS 3's 12/31/95
audited financial statements (footnote C, adjusted to reflect an increase of
$600,000 on the Partnership's line of credit to fund repayment in February
1996 of one of the Grupe notes) with 20-year amortization and an 8% interest
rate. Additionally, the remaining notes payable to Grupe totalling $674,000
are assumed to be paid off with excess Partnership cashflow at their
maturity (12/31/96) and accrue interest at their current rate of 11.4%.
DISTRIBUTION COMPARISON
(REIT SHARES ROUNDED
TO THE NEAREST WHOLE SHARE)
MARCH 31, 1996
IDS1 IDS2 IDS3
--------- --------- ---------
Current partnership distributions per unit............................................. $ 4.84 $ 4.06 $ 4.69
REIT distributions at current price ($25.00)........................................... $ 4.70 $ 4.23 $ 5.64
REIT distributions at $22.25 per share................................................. $ 5.64 $ 4.70 $ 6.58
REIT distributions at $27.75 per share................................................. $ 4.23 $ 3.76 $ 5.17
NET ASSET VALUE AND ALLOCATION RATIO
MARCH 31, 1996
IDS1 IDS2 IDS3 TOTAL
-------------- -------------- -------------- ----------------
Appraised value of properties.................. $ 40,370,000 $ 30,520,000 $ 50,890,000 $ 121,780,000
BALANCE SHEET ADJUSTMENTS:
Cash and cash equivalents.................... 625,600 367,914 395,166 1,388,680
Other partnership assets..................... 342,800 193,561 358,552 894,913
Mortgages and Lines of credit................ 0 (3,319,503) (10,384,296) (13,703,799)
Other liabilities/trans. cost................ (1,271,700) (900,126) (1,609,779) (3,781,605)
-------------- -------------- -------------- ----------------
Total Balance Sheet Adjustments................ (303,300) (3,658,154) (11,240,357) (15,201,811)
-------------- -------------- -------------- ----------------
NET ASSET VALUE OF PARTNERSHIP................. $ 40,066,700 $ 26,861,846 $ 39,649,643 $ 106,578,189
-------------- -------------- -------------- ----------------
-------------- -------------- -------------- ----------------
Percentage of aggregate net asset
value......................................... 37.59% 25.20% 37.20% 100.00%
Net asset value per Unit....................... $ 257 $ 222 $ 308 $ 262
Number of shares potentially allocable to
Partnership at $25.00 per share............... 1,602,668 1,074,474 1,585,986 4,263,128
Allocation of shares to General Partner........ 80,133 53,724 118,430 252,288
Amount potentially allocable to Limited
Partners:
Shares....................................... 1,522,535 1,020,750 1,467,555 4,010,840
Cash......................................... $ 38,063,365 $ 25,518,754 $ 36,688,881 100,271,000
Allocation per $250 of original investment by
Limited Partners
Shares....................................... 10 9 12 10
Cash......................................... $ 257 $ 222 $ 308 $ 262
NET ASSET VALUE AND ALLOCATION RATIO
MARCH 31, 1996
ASSETS
IDS1 IDS2 IDS3 TOTAL SJPII
-------------- -------------- -------------- -------------- -------------
Cash and short-term investments......... $ 625,600 $ 367,914 $ 395,166 $ 1,388,680 $ 254,761
Real estate held for resale............ 0 0 201,835 201,835 0
Storage centers, net................... 26,120,200 24,748,826 33,903,059 84,772,085 7,935,077
Other assets........................... 342,800 193,561 358,552 894,913 144,904
General Partner contribution........... 0 0 0 0 0
Amortizable assets..................... 13,900 91,253 305,533 410,686 0
-------------- -------------- -------------- -------------- -------------
TOTAL ASSETS......................... $ 27,102,500 $ 25,401,554 $ 35,164,145 $ 87,668,199 $ 8,334,742
-------------- -------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------- -------------
LIABILITIES AND PARTNERS' EQUITY
Liabilities:
Accounts payable and accrued
expenses............................ $ 178,800 $ 136,525 $ 242,042 $ 557,367 $ 43,947
Unearned rent and tenant deposits.... 153,100 133,501 180,491 467,092 50,585
Construction cost payable............ 0 0 257,146 257,146 0
Line of credit....................... 0 470,000 0 470,000 0
Notes payable........................ 0 2,849,503 10,384,296 13,233,799 0
Transaction cost and partnership
reserves............................ 939,800 630,100 930,100 2,500,000 0
-------------- -------------- -------------- -------------- -------------
TOTAL LIABILITIES........................ 1,271,700 4,219,629 11,994,075 17,485,404 94,532
-------------- -------------- -------------- -------------- -------------
Partners' equity (deficit):
Limited Partners..................... 24,539,260 20,122,829 22,011,567 66,673,655 8,157,808
General Partner...................... 1,291,540 1,059,096 1,158,504 3,509,140 82,402
-------------- -------------- -------------- -------------- -------------
TOTAL PARTNERS' EQUITY................... 25,830,800 21,181,925 23,170,070 70,182,795 8,240,210
-------------- -------------- -------------- -------------- -------------
TOTAL LIABILITIES & PARTNERS' EQUITY..... $ 27,102,500 $ 25,401,554 $ 35,164,145 $ 87,668,199 8,334,742
-------------- -------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------- -------------
NUMBER OF OUTSTANDING UNITS (based on
$250 per unit).......................... 148,202 115,110 119,215 382,527 --
-------------- -------------- -------------- -------------- -------------
-------------- -------------- -------------- -------------- -------------
L.P. Equity Contributions................ $ 37,052,578 $ 28,777,448 $ 29,803,675