U-Haul 2016 Annual Report Download - page 91

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AMERCO AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)
F-35
SAC Holdings was established in order to acquire and develop self-storage properties. These
properties are being managed by us pursuant to management agreements. In the past, we sold real
estate and various self-storage properties to SAC Holdings, and such sales provided significant cash
flows to us.
Related Party Revenues
Years Ended March 31,
2016
2015
2014
(In thousands)
U-Haul interest income revenue from SAC Holdings
$
4,960
$
5,914
$
7,071
U-Haul interest income revenue from Private Mini
1,126
4,918
5,348
U-Haul management fee revenue from SAC Holdings
18,657
18,472
18,007
U-Haul management fee revenue from Private Mini
3,330
2,614
2,437
U-Haul management fee revenue from Mercury
4,546
4,255
4,049
$
32,619
$
36,173
$
36,912
During fiscal 2016, a subsidiary of ours held a junior unsecured note of SAC Holdings. Substantially all
of the equity interest of SAC Holdings is controlled by Blackwater Investments, Inc. (“Blackwater”).
Blackwater is wholly-owned by Willow Grove Holdings LP, which is owned by Mark V. Shoen (a
significant shareholder), and various trusts associated with Edward J.Shoen (our Chairman of the Board,
President and a significant shareholder) and Mark V. Shoen. We do not have an equity ownership
interest in SAC Holdings. We received cash interest payments of $4.6 million, $5.7 million and $17.2
million, from SAC Holdings during fiscal 2016, 2015 and 2014, respectively. The largest aggregate
amount of notes receivable outstanding during fiscal 2016 was $50.4 million and the aggregate notes
receivable balance at March 31, 2016 was $49.3 million. In accordance with the terms of these notes,
SAC Holdings may prepay the notes without penalty or premium at any time. The scheduled maturity of
this note is 2017.
During fiscal 2016, AMERCO held a junior note issued by Private Mini Storage Realty, L.P. (“Private
Mini”). The equity interests of Private Mini are ultimately controlled by Blackwater. We received cash
interest payments of $1.5 million, $5.1 million and $5.4 million from Private Mini during fiscal years 2016,
2015 and 2014, respectively. The largest aggregate amount outstanding during fiscal 2016 was $56.5
million. In July 2015, Private Mini repaid its note and all outstanding interest due AMERCO totaling $56.8
million.
We currently manage the self-storage properties owned or leased by SAC Holdings, Mercury Partners,
L.P. (“Mercury”), Four SAC Self-Storage Corporation (“4 SAC”), Five SAC Self-Storage Corporation (“5
SAC”), Galaxy Investments, L.P. (“Galaxy”) and Private Mini pursuant to a standard form of management
agreement, under which we receive a management fee of between 4% and 10% of the gross receipts
plus reimbursement for certain expenses. We received management fees, exclusive of reimbursed
expenses, of $27.1 million, $25.8 million and $25.8 million from the above mentioned entities during fiscal
2016, 2015 and 2014, respectively. This management fee is consistent with the fee received for other
properties we previously managed for third parties. SAC Holdings, 4 SAC, 5 SAC, Galaxy and Private
Mini are substantially controlled by Blackwater. Mark V. Shoen controls the general partner of Mercury.
The limited partner interests of Mercury are indirectly owned by James P. Shoen (a significant
shareholder), Mark V. Shoen and a trust benefitting the children and grandchild of Edward J. Shoen.