Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WELLS REAL ESTATE FUND IX LP | f9q12012investorletter_fac.htm |
| EX-99.1 - LETTER TO LIMITED PARTNERS - WELLS REAL ESTATE FUND IX LP | exh991q12012investorlettera.htm |
Exhibit 99.2
Wells Real Estate Fund IX, L.P. Fact Sheet | IX | |
DATA AS OF MARCH 31, 2012 | ||
PORTFOLIO SUMMARY | |||||||||||||||||||
PROPERTIES OWNED | % LEASED AS OF 3/31/2012 | PERCENT OWNED | ACQUISITION DATE | ACQUISITION PRICE* | DISPOSITION DATE | DISPOSITION PRICE | ALLOCATED NET SALE PROCEEDS | ||||||||||||
Alstom Power | SOLD | 39 | % | 12/10/1996 | $8,137,994 | 3/15/2005 | $12,000,000 | $4,545,538 | |||||||||||
14079 Senlac Drive | SOLD | 45 | % | 10/10/1996 | $4,474,700 | 11/29/2007 | $5,410,200 | $2,308,640 | |||||||||||
Avaya | SOLD | 39 | % | 6/24/1998 | $5,512,472 | 10/15/2010 | $5,300,000 | $1,993,551 | |||||||||||
305 Interlocken Parkway | 100% | 45 | % | 2/20/1997 | $7,087,770 | N/A | N/A | $361,626 | |||||||||||
360 Interlocken Boulevard | SOLD | 39 | % | 3/20/1998 | $8,567,344 | 6/2/2011 | $9,150,000 | $3,389,873 | |||||||||||
Iomega | SOLD | 39 | % | 4/1/1998 | $5,934,250 | 1/31/2007 | $4,867,000 | $1,828,642 | |||||||||||
1315 West Century Drive | SOLD | 39 | % | 2/13/1998 | $10,361,070 | 12/22/2006 | $8,325,000 | $3,145,720 | |||||||||||
15253 Bake Parkway | SOLD | 38 | % | 1/10/1997 | $8,459,425 | 12/2/2004 | $12,400,000 | $4,526,770 | |||||||||||
U.S. Cellular | 73% | 45 | % | 6/17/1996 | $10,485,786 | N/A | N/A | N/A | |||||||||||
WEIGHTED AVERAGE | 82% | ||||||||||||||||||
* | The Acquisition Price does not include the up-front sales charge or capital expenditures, depreciation/amortization, or impairments incurred over our ownership period, as applicable. |
FUND FEATURES
OFFERING DATES | January 1996 - December 1996 |
PRICE PER UNIT | $10 |
A/B STRUCTURE | A's - Cash available for distribution up to 10% Preferred B's - Net loss until capital account reaches zero + No Operating Distributions |
A/B RATIO AT CLOSE OF OFFERING | 84% to 16% |
AMOUNT RAISED | $35,000,000 |
Please note that the figures and dates in this fact sheet are subject to change as additional information becomes available related to a variety of factors, such as closing costs, prorations, and other adjustments.
The financial information presented is preliminary and subject to change, pending the filing of the Partnership's Form 10-Q for the period ended March 31, 2012. We do not make any representations or warranties (expressed or implied) about the accuracy of any such statements to the investors' realized results at the close of the Fund.
Readers of this fact sheet should be aware that there are various factors and uncertainties that could cause actual results to differ materially from any forward-looking statements made in this material. Past performance is no guarantee of future results.
Portfolio Overview
Wells Fund IX is in the positioning-for-sale phase of its life cycle, with seven assets having been sold. While our focus on the two remaining assets will be on leasing and marketing efforts that we believe will ultimately result in better disposition prices for our investors, we will also evaluate offers to purchase the properties as-is.
Flextronics, the sole tenant at 305 Interlocken Parkway, intends to vacate the building at lease expiration (June 30, 2012). We are actively marketing the building for both long-term lease and for sale to a potential user.
U.S. Cellular recently executed an early lease renewal for 73% of the building, extending its lease term from April 2013 to December 2017. We are marketing the remaining 27% vacancy for lease.
We have completed the distribution of net sale proceeds to the limited partners in May 2012 totaling $3,500,000 from the sales of 14079 Senlac Drive, Avaya and 360 Interlocken Boulevard properties.
First quarter 2012 operating distributions were reserved (see “Estimated Annualized Yield” table). We anticipate that operating distributions may remain reserved in the near-term, given the anticipated leasing capital for the two remaining properties.
The Cumulative Performance Summary, which provides a high-level overview of the Fund's overall performance to date, is on the reverse.
Continued on reverse
Wells Real Estate Fund IX, L.P. Fact Sheet | IX | |
DATA AS OF MARCH 31, 2012 | ||
Property Summary
• | The Alstom Power building was sold on March 15, 2005, following the lease renewal and extension with Alstom Power. Net sale proceeds of $4,545,538 were allocated to the Fund. The November 2005 distribution included $3,449,511 of these proceeds. The remaining $1,096,027 was distributed in August 2007. |
• | 14079 Senlac Drive was sold on November 29, 2007, and net sale proceeds of $2,308,640 were allocated to the Fund. Of that amount, $1,529,615 was distributed in May 2008, and the remaining proceeds were distributed in May 2012. |
• | The Avaya building was sold on October 15, 2010, and $1,993,551 in net sale proceeds was allocated to the Fund. These proceeds were distributed in May 2012. |
• | The 305 Interlocken Parkway property is located in Broomfield, Colorado, a suburb of Denver. The entire building is leased to Flextronics USA, Inc. through June 2012. Flextronics intends to vacate the building at lease expiration. We are actively marketing the building for both long-term lease and for sale to a potential user. |
• | The 360 Interlocken Boulevard property was sold on June 2, 2011, and $3,389,873 in net sale proceeds was allocated to the Fund. Of that amount, $727,424 was distributed in May 2012, and the balance is being reserved at this time to cover anticipated capital at the remaining assets. |
• | The Iomega building was sold on January 31, 2007, and net sale proceeds of $1,828,642 were allocated to the Fund. Of the proceeds, $858,255 was distributed in August 2007. The remaining $970,387 was distributed in May 2008. |
• | The 1315 West Century Drive building was sold on December 22, 2006. Net sale proceeds allocated to the Fund totaled $3,145,720 and were distributed in August 2007. |
• | The 15253 Bake Parkway building was sold on December 2, 2004, following the signing of a new 10-year lease with Gambro Healthcare. Of the net sale proceeds, $4,526,770 was allocated to the Fund, and $237,910 was used to fund the Partnership's pro-rata share of the Gambro re-leasing costs. We distributed $2,488,372 of these proceeds to the limited partners in May 2005. The remaining proceeds were included in the November 2005 distribution. |
• | The U.S. Cellular building is located in Madison, Wisconsin. Approximately 73% of the space is leased to U.S. Cellular through December 2017, and we are actively marketing the remaining vacant space for long-term lease. |
For a more detailed annual financial report, please refer to Fund IX’s most recent 10-K filing, which can be found on the Wells website at www.WellsREF.com.
CUMULATIVE PERFORMANCE SUMMARY
Par Value | Cumulative Operating Cash Flow Distributed(1) | Cumulative Passive Losses(1 & 2) | Cumulative Net Sale Proceeds Distributed(1) | Estimated Unit Value as of 12/31/11(3) | |||||
PER "A" UNIT | $10 | $7.46 | N/A | $3.70 | $4.00 | ||||
PER "B" UNIT | $10 | $0.00 | -$0.70 | $10.74 | $3.93 | ||||
(1) | These per-unit amounts represent estimates of the amounts attributable to the limited partners who have purchased their units directly from the Partnership in its initial public offering of units and have not made any conversion elections from Class A units to Class B units, or vice versa, under the Partnership agreement. |
(2) | This estimated per-unit amount is calculated as the sum of the annual per-unit cumulative passive loss allocated to a Pure Class B Unit, reduced for Gain on Sale per unit allocated to a Pure Class B Unit. |
(3) | Please refer to the disclosure related to the estimated unit valuations contained in the 1/31/2012 Form 8-K for this partnership. |
ESTIMATED ANNUALIZED YIELD* | ||||||||||
Q1 | Q2 | Q3 | Q4 | AVG YTD | ||||||
2012 | Reserved | 0.00% | ||||||||
2011 | Reserved | Reserved | Reserved | Reserved | 0.00% | |||||
2010 | Reserved | Reserved | Reserved | Reserved | 0.00% | |||||
2009 | Reserved | Reserved | Reserved | Reserved | 0.00% | |||||
2008 | 3.75% | 2.50% | 2.50% | Reserved | 2.19% | |||||
2007 | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | |||||
2006 | 4.50% | 4.50% | 4.50% | Reserved | 3.38% | |||||
2005 | 5.00% | 4.00% | Reserved | 4.00% | 3.25% | |||||
2004 | 8.25% | Reserved | 8.25% | Reserved | 4.13% | |||||
2003 | 8.25% | 8.00% | 9.00% | 9.00% | 8.56% | |||||
2002 | 9.00% | 8.75% | 9.00% | 9.00% | 8.94% | |||||
2001 | 9.00% | 9.50% | 9.50% | 9.50% | 9.38% | |||||
2000 | 8.75% | 9.00% | 9.25% | 9.25% | 9.06% | |||||
1999 | 9.15% | 9.16% | 9.00% | 8.12% | 8.86% | |||||
TAX PASSIVE LOSSES — CLASS “B” PARTNERS
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||
0.00% | 0.00% | 0.00% | -9.05%** | -16.97%** | 0.01% | |||||
* | The calculation is reflective of the $10 offering price, adjusted for NSP paid-to-date to Class “A” unit holders. |
** | Negative percentage due to income allocation. |
6200 The Corners Parkway Ÿ Norcross, GA 30092-3365 Ÿ www.WellsREF.com Ÿ 800-557-4830
LPMPFSI1204-0218-9
© 2012 Wells Real Estate Funds