UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-11985
Krupp Realty Limited Partnership-V
Massachusetts 04-2796207
(State or other jurisdiction of (IRS employer
incorporation or organization) identification no.)
470 Atlantic Avenue, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip Code)
(617) 423-2233
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 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
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KRUPP REALTY LIMITED PARTNERSHIP-V
<TABLE>
<CAPTION>
BALANCE SHEETS
ASSETS
September 30, December 31,
1994 1993
<S> <C> <C>
Multi-family apartment complexes, net of
accumulated depreciation of $34,041,323
and $31,569,120, respectively $38,359,156 $38,739,695
Cash and cash equivalents 668,709 713,196
Cash restricted for tenant security deposits 529,234 566,626
Cash restricted for capital improvements 1,278,133 2,280,342
Prepaid expenses and other assets 1,247,030 1,610,737
Deferred expenses, net of accumulated
amortization of $442,310 and $378,371,
respectively (Note 2) 603,321 655,122
Total assets $42,685,583 $44,565,718
LIABILITIES AND PARTNERS' DEFICIT
Mortgage notes payable $47,530,366 $47,933,327
Accounts payable 365,059 259,149
Accrued real estate taxes 1,425,920 1,926,353
Accrued expenses and other liabilities 1,312,843 1,148,996
Due to affiliates 1,386,407 1,385,328
Total liabilities 52,020,595 52,653,153
Partners' deficit (Note 3) (9,335,012) (8,087,435)
Total liabilities and partners' deficit $42,685,583 $44,565,718
</TABLE>
The accompanying notes are an integral
part of the financial statements.
-2-<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenue:
Rental $3,423,538 $ 3,383,683 $10,104,994 $10,037,552
Interest income 21,410 36,316 61,218 132,128
Total Revenue 3,444,948 3,419,999 10,166,212 10,169,680
Expenses:
Operating (including
reimbursements to
affiliates of $89,859,
$89,859, $269,576
and $269,577, respectively) 1,045,441 1,124,062 3,137,759 3,309,028
Maintenance 298,232 178,018 707,633 537,306
General and administrative
(including reimbursements
to affiliates of $20,843,
$21,740, $63,031 and
$62,367, respectively) 49,023 35,505 114,026 102,944
Real estate taxes 446,572 485,792 1,555,962 1,614,758
Management fees to an
affiliate 104,565 114,935 371,021 353,059
Depreciation and
amortization 883,886 1,678,959 2,536,142 3,273,997
Interest 993,251 1,677,314 2,991,246 4,328,883
Total expenses 3,820,970 5,294,585 11,413,789 13,519,975
Net loss $ (376,022) $(1,874,586) $(1,247,577) $(3,350,295)
Allocation of net loss (Note 3):
Per Unit of Investor
Limited Partner
Interest (35,200 Units
Outstanding) $ (10.58) $ (52.72) $ (35.09) $ (94.22)
General Partners $ (3,761) $ (18,746) $ (12,476) $ (33,503)
</TABLE>
The accompanying notes are an integral
part of the financial statements.
-3-<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS
For the Nine Months Ended
September 30,
1994 1993
<S> <C> <C>
Operating activities:
Net loss $(1,247,577) $(3,350,295)
Adjustments to reconcile net loss to net
cash provided by (used for) operating activities:
Depreciation and amortization 2,536,142 3,273,997
Amortization of mortgage premium - 326,164
Decrease (increase) in cash restricted for tenant
security deposits 37,392 (15,598)
Decrease (increase) in prepaid expenses
and other assets 363,707 (23,876)
Decrease in accounts payable (51,897) (116,229)
Decrease in accrued real estate taxes (500,433) (428,077)
Increase (decrease) in accrued expenses and other
liabilities 163,847 (1,274,818)
Increase in due to affiliates 1,079 345,499
Net cash provided by (used for) operating activities 1,302,260 (1,263,233)
Investing activities:
Additions to fixed assets (2,091,664) (804,462)
Increase in accounts payable related to fixed asset
additions 157,807 -
Decrease (increase) in cash restricted for capital
improvements 1,002,209 (1,420,194)
Net cash used for investing activities (931,648) (2,224,656)
Financing activities:
Proceeds from refinancing mortgage note payable - 33,000,000
Payoff of mortgage note payable - (32,626,898)
Deferred expenses (12,138) (304,663)
Principal payments on mortgage notes payable (402,961) (174,914)
Net cash used for financing activities (415,099) (106,475)
Net decrease in cash and cash equivalents (44,487) (3,594,364)
Cash and cash equivalents, beginning of the period 713,196 4,118,300
Cash and cash equivalents, end of the period $ 668,709 $ 523,936
</TABLE>
The accompanying notes are an integral
part of the financial statements.
-4-<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
NOTES TO FINANCIAL STATEMENTS
(1) Accounting Policies
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted in this report
on Form 10-Q pursuant to the Rules and Regulations of the
Securities and Exchange Commission. In the opinion of the General
Partners of Krupp Realty Limited Partnership-V (the "Partnership"),
the disclosures contained in this report are adequate to make the
information presented not misleading. See Notes to Financial
Statements included in the Partnership's Annual Report on Form 10-K
for the year ended December 31, 1993 for additional information
relevant to significant accounting policies followed by the
Partnership.
In the opinion of the General Partners of the Partnership, the
accompanying unaudited financial statements reflect all adjustments
(consisting of only normal recurring accruals) necessary to present
fairly the Partnership's financial position as of September 30,
1994, its results of operations for the three and nine months ended
September 30, 1994 and 1993 and its cash flows for the nine months
ended September 30, 1994 and 1993. Certain prior year balances
have been reclassified to conform with the current period financial
statement presentation.
The results of operations for the three and nine months ended
September 30, 1994 are not necessarily indicative of the results
which may be expected for the full year. See Management's
Discussion and Analysis of Financial Condition and Results of
Operations included in this report.
(2) Related Party Transactions
In addition to the amounts presented on the face of the statement
of operations, capitalized amounts paid to affiliates of the
General Partners during the nine months ended September 30, 1994
and for the year ended December 31, 1993 for costs related to
refinancing activities of the Partnership's mortgage notes were
$11,444 and $27,658, respectively.
(3) Changes in Partners' Deficit
A summary of changes in Partners' Deficit for the nine months ended
September 30, 1994 is as follows:
<TABLE>
<CAPTION>
Investor Original Total
Limited Limited General Partners'
Partners Partner Partners Deficit
<S> <C> <C> <C> <C>
Balance at
December 31, 1993 $(7,467,998) $(234,539) $(384,898) $(8,087,435)
Net Loss (1,235,101) - (12,476) (1,247,577)
Balance at
September 30, 1994 $(8,703,099) $(234,539) $(397,374) $(9,335,012)
</TABLE>
-5-<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership's ability to generate cash adequate to meet its
needs is dependent primarily upon the successful operations of its real
estate investments. Such ability is also dependent upon the future
availability of bank borrowings, the potential refinancing and sale of
the Partnership's remaining real estate investments. These sources of
liquidity will be first used by the Partnership for payment of expenses
related to real estate operations, debt service, capital improvements
and expenses. Cash flow, if any, as calculated under Section 8.2(a)
of the Partnership Agreement ("Cash Flow"), will then be available for
distribution to the Partners. The General Partners discontinued
distributions during 1990 due to insufficient operating cash flow. The
Partnership will resume distributions when the properties generate
sustainable cash flow in excess of operating and capital improvement
needs to provide for such distributions.
The Partnership's major capital improvement project, the repair of
Park Place's building facade, is approximately 85% complete as of
September 30, 1994. The Partnership anticipates that the restoration
project will be completed in early 1995, and will greatly enhance the
appearance of the property. This improvement, along with extensive
interior improvements, is being funded from established reserves and
is expected to result in both increased rents and increased occupancy.
Prior to Park Place's refinancing, management suspended payment of
property management fees and expense reimbursements to an affiliate.
At September 30, 1994, past due fees and reimbursements totalled
approximately $1,300,000. Subsequent to the refinancing, the
Partnership resumed regular payment of property management fees and
expense reimbursements and expects to generate sufficient cash flow to
begin to repay the accrued obligation.
Cash Flow
Shown below, as required by the Partnership Agreement, is the
calculation of Cash Flow for the nine months ended September 30, 1994.
<TABLE>
<CAPTION>
Rounded to $1,000
<S> <C>
Net loss for tax purposes $(1,155,000)
Items not requiring (requiring) the use of operating
funds:
Tax basis depreciation and amortization 2,444,000
Expenditures for capital improvements (2,092,000)
Principal payments on mortgage notes payable (403,000)
Cash Flow Deficit $(1,206,000)
</TABLE>
Continued
-6-<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
Operations
Rental revenue increased by $67,000 during the nine months ended
September 30, 1994, as compared to the same period in 1993. The
increase in rental revenue is primarily due to an increase in rental
rates at Park Place and Marine Terrace, and increased occupancy at
Century II. Interest income for the three and nine months ended
September 30, 1994, as compared to the same period in 1993 decreased
due to funds previously invested in short term investments being used
for the refinancing of Park Place's mortgage during the third quarter
of 1993.
Operating expenses for the three and nine months ended September
30, 1994, as compared to the same period in 1993 decreased due to
savings in parking garage expenses as a result of management
subcontracting the parking garage operations at Park Place. These
savings were partially offset by an increase in maintenance expense,
primarily for the painting of the interior units and the installation
of window dressings at Park Place. Real Estate taxes decreased for the
three and nine months ended September 30, 1994, as compared to the same
period in 1993 at Park Place due to a prior year revaluation by the
taxing authority.
As a result of the refinancing of Park Place's first mortgage from
an interest rate of 10.75% to 6.75% per annum during the third quarter
of 1993, interest expense decreased by $684,000 and $1,338,000 for the
three and nine months ended September 30, 1994, as compared to the same
period in 1993. Depreciation and amortization decreased by
approximately $738,000 for the nine months ended September 30, 1994 as
compared to the same period in 1993. The decrease in depreciation and
amortization is primarily due to fully amortized deferred mortgage
costs as a result of Park Place's refinanced mortgage. The decrease
was slightly offset by an increase in depreciation expense related to
Park Place's capital improvement program.
-7-<PAGE>
KRUPP REALTY LIMITED PARTNERSHIP-V
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Response: None
Item 2. Changes in Securities
Response: None
Item 3. Defaults upon Senior Securities
Response: None
Item 4. Submission of Matters to a Vote of Security Holders
Response: None
Item 5. Other Information
Response: None
Item 6. Exhibits and Reports on Form 8-K
Response: None
-8-<PAGE>
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.
Krupp Realty Limited Partnership-V
(Registrant)
BY: /s/Marianne Pritchard
Marianne Pritchard
Treasurer and Chief Accounting Officer
The Krupp Corporation, a General Partner
DATE: November 3, 1994
-9-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR THE QUARTER ENDED SEPTEMBER 30, 1994 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 1,197,943
<SECURITIES> 0
<RECEIVABLES> 72,935
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,452,228
<PP&E> 73,446,110<F1>
<DEPRECIATION> (34,483,633)<F2>
<TOTAL-ASSETS> 42,685,583
<CURRENT-LIABILITIES> 4,490,229
<BONDS> 47,530,366<F3>
<COMMON> (9,335,012)<F4>
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 42,685,583
<SALES> 10,166,212
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 8,422,543<F5>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,991,246
<INCOME-PRETAX> (1,249,577)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,247,577)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,247,577)
<EPS-PRIMARY> 0<F6>
<EPS-DILUTED> 0<F6>
<FN>
<F1>Includes apartment complexes of $72,400,479 & deferred expenses of $1,045,631.
<F2>Includes depreciation of 434,041,323 & amortization of $442,310.
<F3>Represents mortgage notes payable.
<F4>Represents total equity of general partners and limited partner of $(397,374)
and $(8,937,638), respectively.
<F5>Includes operating expenses $4,330,439, real estate tax expense $1,555,962, &
depreciation and amortization of $2,536,142.
<F6>Net loss allocated $(12,476) to the G.P.'s and $(1,245,101) to the L.P.'s for
the 9 months ended 9/30/94. Average net income per unit of L.P. interest is
$(35.09) on 35,200 units outstanding.
</FN>
</TABLE>
