Family Dollar Reports Record Third Quarter Sales and Earnings

August 22, 2011

Family Dollar

We are pleased to continue developing stores for Family Dollar and to have all of you as investment members.

Family Dollar Reports Record Third Quarter Sales and Earnings–MATTHEWS, N.C., June 29, 2011

Net Sales Increase 7.8%; Comparable Store Sales Increase 4.7% Net Income Per Diluted Share Increases 18.2% to $0.91 Management Forecasts FY11 Earnings Per Diluted Share to Increase Between 18% and 21% For more details on the quarterly earnings report, please go to http://www.familydollar.com/pages/investors

“We accomplished much this quarter to position us to capture greater market share and execute our longer-term vision for Family Dollar,” said Howard Levine, Chairman and CEO. “I remain confident that our strategy of providing customers with value and convenience, combined with the impactful investments we are making to improve the shopping experience in our stores and our profitability, will continue to deliver strong shareholder returns.”

New Offering

As you know, we had a new offering, Excell IV, LLC, with stores mostly located inColorado.  We have finalized the offering and plan to build 6-7 stores with the equity raised.  We have many more properties under contract for future construction, so we will likely start another equity requirement in a year or so.  If you are interested in continuing to own Family Dollar stores with an excellent preferred return, please let us know.

 

Philosophy

We are always seeking favorable financing for our stores, and although selling our properties appears to be more optimistic than the last two years, we still prepare to hold the stores as long as needed.  We feel the best strategy is to hold the assets and continue to refinance and cash flow as the market improves.  Our strategy is to build and hold for the near term, and continue to pay our members a high rate of return on investment, with an additional return when the stores sell for a reasonable CAP rate.  As many companies and individuals have struggled, we feel quite fortunate that we have the stability to continue to pay our members an excellent preferred rate of return on invested capital during these unusual economic times.                                                              

            Annual Luncheon

Our Annual Member Luncheon in May at Maggiano’s Southeast was well attended, better than any years past.  We hope you all enjoyed the food and the presentation and that even more of you will be available to attend next year.

Park Regency Thornton Assisted Living Investment Opportunity

We have completed the Subscription Booklets for the second assisted living for which we are raising equity.  We would be delighted to have you join us in developing this fine project.  Our first AssistedLivingCenterin Loveland, Coloradohas been a success, and thus, we were encouraged to build a second one.  We plan to purchase the land in September of 2011, the infrastructure will be done over the following six months, and the construction will begin in March 2012.  If all goes well, residents will be able to move in the spring of 2013.  Please ask Kathy for a package by email or snail mail if you are interested in reviewing it.

           

           

Managers:

Katherine L. Ellman                         Steven M. Cersonsky                     Virgil W. Shouse III

Kathy@excellfund.com steve@excellfund.com                 virgil@excellfund.com

303-513-2114 for investment information

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Park Regency, Assisted Living Update

Assisted Living Update

Park Regency Loveland, Colorado, parkregency@usa.net

The finest Assisted Living Apartments in Northern Colorado

Open since September 2008

 

Park Regency managers have done a calculation based on the appraised value that was used for the current HUD financing application, and another calculation based on what we believe the true value is of our investment if we were to accept a market offer for purchase.

 

Although we have considered unsolicited offers, we co not anticipate selling the property in the near future.  Our investment has done very well, and has grown in value and continues to do so.

 

If we sold the property at the lowest value, a 174% return would be realized, in addition to the amount already received.  The total return jumps significantly if we were to have an offer at a more aggressive price, for which the property is truly worth.

 

Park Regency pays an annual dividend plus our asset grows in value.  Assisted Living Centers are only becoming more and more in demand, as the hump in the demographic snake comes our way.  The fact that for the last year Park Regency stays approximately 97% full (way above the national and state averages, only makes it more valuable.

 

We are excited about building another Assisted Living complex in Thornton, Colorado, because we “see” the value in our current investment and therefore see the value in creating another one of equal or greater value.

 

Of you agree, please contact Kathy@excellfund.com

 

 

 

Thank you,

 

The Managers of Park Regency, Loveland