<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
FOR QUARTER ENDED JUNE 30, 1995
COMMISSION FILE NUMBER 2-77645
REAL ESTATE ASSOCIATES LIMITED V
A CALIFORNIA LIMITED PARTNERSHIP
I.R.S. EMPLOYER IDENTIFICATION NO. 95-3768810
9090 Wilshire Blvd., Suite 201
Beverly Hills, Calif. 90211
Registrant's Telephone Number,
Including Area Code (310) 278-2191
Securities Registered Pursuant to
Section 12(b) or 12(g) of the Act
NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed with the Commission by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve 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
--- ---
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REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
INDEX TO FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1995
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets, June 30, 1995 and December 31, 1994 . . . . . . . . . . . . . . . . . . . . 1
Statements of Operations,
Six and Three Months Ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . 2
Statement of Partners' Equity,
Six Months Ended June 30, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statements of Cash Flows,
Six Months Ended June 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Item 2. Management's Analysis and Discussion of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
</TABLE>
<PAGE> 3
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
JUNE 30, 1995 AND DECEMBER 31, 1994
ASSETS
<TABLE>
<CAPTION>
1995 1994
(Unaudited) (Audited)
----------- -----------
<S> <C> <C>
INVESTMENTS IN LIMITED PARTNERSHIPS $1,002,307 $ 884,383
CASH AND CASH EQUIVALENTS 1,888,445 1,708,014
---------- ----------
TOTAL ASSETS $2,890,752 $2,592,397
========== ==========
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
ACCOUNTS PAYABLE $ 28,535 $ 32,150
PARTNERS' EQUITY 2,862,217 2,560,247
---------- ----------
TOTAL LIABILITIES AND PARTNERS' EQUITY $2,890,752 $2,592,397
========== ==========
</TABLE>
The accompanying notes are an integral part of these balance sheets.
1
<PAGE> 4
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
SIX AND THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
Six months Three months Six months Three months
ended ended ended ended
June 30, 1995 June 30, 1995 June 30, 1994 June 30, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INTEREST INCOME $ 27,597 $ 14,776 $ 18,761 $ 10,225
--------- -------- --------- --------
OPERATING EXPENSES
Management fees-general partner 127,224 63,612 127,224 63,612
General and administrative 56,408 20,384 62,375 20,418
--------- -------- --------- --------
Total operating expenses 183,632 83,996 189,599 84,030
--------- -------- --------- --------
LOSS FROM OPERATIONS (156,035) (69,220) (170,838) (73,805)
DISTRIBUTIONS RECOGNIZED
AS INCOME 208,005 124,588 190,651 163,795
EQUITY IN INCOME OF LIMITED
PARTNERSHIPS AND AMORTI-
ZATION OF ACQUISITION COSTS 250,000 125,000 130,800 65,400
--------- -------- --------- --------
NET INCOME $ 301,970 $180,368 $ 150,613 $155,390
========= ======== ========= ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 5
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENT OF PARTNERS' EQUITY (DEFICIENCY)
SIX MONTHS ENDED JUNE 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
PARTNERSHIP INTERESTS
June 30, 1995 7,808
==========
EQUITY (DEFICIENCY),
at January 1, 1995 $(131,744) $2,691,991 $2,560,247
Net income for six months
ended June 30, 1995 3,020 298,950 301,970
--------- ---------- ----------
EQUITY (DEFICIENCY),
at June 30, 1995 $(128,724) $2,990,941 $2,862,217
========= ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 6
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 301,970 $ 150,613
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Equity in income of limited partnerships (253,800) (134,600)
Amortization of acquisition costs 3,800 3,800
Decrease in accounts payable (3,615) (518)
---------- ----------
Net cash provided by (used in) operating activities 48,355 19,295
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions from limited partnerships
recognized as a return of capital 132,076 79,079
---------- ----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 180,431 98,374
CASH AND CASH EQUIVALENTS,
beginning of period 1,708,014 1,596,174
---------- ----------
CASH AND CASH EQUIVALENTS,
end of period $1,888,445 $1,694,548
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 7
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE 1 - SUMMARY OF SIGNIIFICANT ACCOUNTING POLICIES
GENERAL
The information contained in the following notes to the financial
statements is condensed from that which would appear in the annual audited
financial statements; accordingly, the financial statements included herein
should be reviewed in conjunction with the financial statements and related
notes thereto contained in the annual report for the year ended December
31, 1994 prepared by Real Estate Associates Limited V (the "Partnership").
National Partnership Investments Corp. ("NAPICO") is the corporate general
partner of the Partnership. Accounting measurements at interim dates
inherently involve greater reliance on estimates than at year end. The
results of operations for the interim period presented are not necessarily
indicative of the results for the entire year.
In the opinion of the Partnership, the accompanying unaudited financial
statements contain all adjustments (consisting primarily of normal
recurring accruals) necessary to present fairly the financial position as
of June 30, 1995, and the results of operations and changes in cash flows
for the six months then ended.
METHOD OF ACCCOUNTING FOR INVESTMENT IN LIMITED PARTNERSHIPS
The investment in limited partnerships is accounted for on the equity
method. Acquisition, selection and other costs related to the acquisition
of the projects are capitalized as part of the investment balance.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash and bank certificates of deposit
with an original maturity of three months or less.
INCOME TAXES
No provision has been made for income taxes in the accompanying financial
statements since such taxes, if any, are the liability of the individual
partners.
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS
The Partnership had acquired limited partnership interests in 20 limited
partnerships and has limited partnership interests in 19 limited
partnerships at June 30, 1995. The partnerships own residential rental
projects consisting of 1,319 apartment units. The mortgage loans of these
projects are insured by various governmental agencies.
The Partnership, as a limited partner, is entitled to 75 percent to 99
percent of the profits and losses in these limited partnerships.
5
<PAGE> 8
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS (CONTINUED)
Equity in losses of limited partnerships is recognized in the financial
statements until the limited partnership investment account is reduced to a
zero balance. Losses incurred after the limited partnership investment
account is reduced to zero are not recognized.
Distributions from the limited partnerships are accounted for as a return
of capital until the investment balance is reduced to zero or to a negative
amount equal to further capital contributions required. Subsequent
distributions received are recognized as income.
The following is a summary of the investment in limited partnerships:
<TABLE>
<S> <C>
Balance, beginning of period $ 884,383
Cash distributions recognized as a return of capital (132,076)
Amortization of acquisition costs (3,800)
Equity in income of limited partnerships 253,800
----------
Balance, end of period $1,002,307
==========
</TABLE>
The following are unaudited combined estimated statements of operations
for the limited partnerships in which the Partnership has investments:
<TABLE>
<CAPTION>
Six months Three months Six months Three months
ended ended ended ended
June 30, 1995 June 30, 1995 June 30, 1994 June 30, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES
Rental income $6,400,000 $3,200,000 $6,094,000 $3,047,000
EXPENSES
Depreciation 1,060,000 530,000 974,000 487,000
Interest 2,796,000 1,398,000 2,930,000 1,465,000
Operating 2,620,000 1,310,000 2,448,000 1,224,000
---------- ---------- ---------- ----------
6,476,000 3,238,000 6,352,000 3,176,000
---------- ---------- ---------- ----------
Net loss $ (76,000) $ (38,000) $ (258,000) $ (129,000)
========== ========== ========== ==========
</TABLE>
NAPICO, or one of its affiliates, is the general partner and property
management agent for certain of the limited partnerships included above.
6
<PAGE> 9
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE 3 - MANAGEMENT FEES AND EXPENSES DUE TO GENERAL PARTNER
Under the terms of the Restated Certificate and Agreement of Limited
Partners, the Partnership is obligated to the general partner for an
annual management fee equal to 0.4 percent of the invested assets of the
limited partnerships. Invested assets are defined as the costs of
acquiring project interests, including the proportionate amount of the
mortgage loans related to the Partnership's interests in the capital
accounts of the respective partnerships. The fee was approximately
$127,224 for the six months ended June 30, 1995 and 1994.
The Partnership reimburses NAPICO for certain expenses. In 1995, the
reimbursement to NAPICO of $8,910 has been paid and included in the
Partnership's operating expenses.
NOTE 4 - CONTINGENCIES
The corporate general partner of the Partnership is a plaintiff in
various lawsuits and has also been a defendant in other lawsuits arising
from transactions in the ordinary course of business. In the opinion of
management and the corporate general partners, the claims will not result
in any material liability to the Partnership.
7
<PAGE> 10
REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
JUNE 30, 1995
ITEM 2. MANAGEMENT'S ANALYSIS AND DISCUSSION OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Partnership's primary sources of funds include interest income earned
from investing available cash and distributions from limited partnerships
in which the Partnership has invested. It is not expected that any of the
local limited partnerships in which the Partnership has invested will
generate cash flow sufficient to provide for distributions to limited
partners in any material amount.
RESULTS OF OPERATIONS
Partnership revenues consist primarily of interest income earned on
certificates of deposit and other temporary investment of funds not
required for investment in local partnerships.
Operating expenses consist primarily of recurring general and
administrative expenses and professional fees for services rendered to the
Partnership. In addition, an annual Partnership management fee in an
amount equal to .4 percent of invested assets is payable to the corporate
general partner.
The Partnership accounts for its investments in the local limited
partnerships on the equity method, thereby adjusting its investment balance
by its proportionate share of the income or loss of the local limited
partnerships. At June 30, 1995, the Partnership has investments in 19
limited partnerships, all of which had operations. The increase in equity
in income for 1995 over 1994 is because the investment balances for certain
of the local limited partnerships were reduced to zero and the related
losses were not recognized in accordance with the equity method of
accounting.
Distributions received from limited partnerships are recognized as return
of capital until the investment balance has been reduced to zero or to a
negative amount equal to future capital contributions required. Subsequent
distributions received are recognized as income.
Except for certificates of deposit and money market funds, the
Partnership's investments are entirely interests in other limited
partnerships primarily owning government assisted projects. Available cash
is invested in these funds earning interest income as reflected in the
statement of operations. These funds can be converted to cash to meet
obligations as they arise. The Partnership intends to continue investing
available funds in this manner.
8
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REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
JUNE 30, 1995
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The corporate general partner is a plaintiff or defendant in several lawsuits.
None of these are related to REAL V.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No exhibits are required per the provision of item 7 of regulation
S-K.
9
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REAL ESTATE ASSOCIATES LIMITED V
(A CALIFORNIA LIMITED PARTNERSHIP)
JUNE 30, 1995
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
REAL ESTATE ASSOCIATES LIMITED V
(a California limited partnership)
By: National Partnership Investments Corp.
General Partner
Date:
-------------------------------------
By:
-------------------------------------
Bruce Nelson
President
Date:
-------------------------------------
By:
-------------------------------------
Shawn Horwitz
Executive Vice President and
Chief Financial Officer
10
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
PARTNERSHIP'S STATEMENTS OF EARNINGS AND BALANCE SHEETS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,888,445
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,888,445
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,890,752
<CURRENT-LIABILITIES> 28,535
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 2,862,217
<TOTAL-LIABILITY-AND-EQUITY> 2,890,752
<SALES> 0
<TOTAL-REVENUES> 485,602
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 183,632
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 301,970
<INCOME-TAX> 0
<INCOME-CONTINUING> 301,970
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 301,970
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
