UNITES STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 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
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1994 1993
Multi-family apartment complexes, net of
accumulated depreciation of $33,178,750
<S> <C> <C>
and $31,569,120, respectively $38,185,253 $38,739,695
Cash and cash equivalents 702,978 713,196
Cash restricted for tenant security deposits 526,046 566,626
Cash restricted for capital improvements 1,883,331 2,280,342
Prepaid expenses and other assets 1,699,606 1,610,737
Deferred expenses, net of accumulated
amortization of $420,997 and $378,371,
respectively (Note 2) 624,634 655,122
Total assets $43,621,848 $44,565,718
LIABILITIES AND PARTNERS' DEFICIT
Mortgage notes payable $47,667,426 $47,933,327
Accounts payable 129,375 147,975
Accrued expenses and other liabilities 3,473,850 3,186,523
Due to affiliates 1,310,185 1,385,328
Total liabilities 52,580,836 52,653,153
Partners' deficit (Note 3) (8,958,988) (8,087,435)
Total liabilities and partners' deficit $43,621,848 $44,565,718
</TABLE>
The accompanying notes are an integral
part of the financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP-V
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1994 1993 1994 1993
Revenue:
<S> <C> <C> <C> <C>
Rental $3,351,793 $3,397,390 $6,681,456 $ 6,653,869
Interest income 22,452 54,070 39,808 95,812
Total revenue 3,374,245 3,451,460 6,721,264 6,749,681
Expenses:
Operating (including reim-
bursements to affiliates
of $89,858, $89,859, $179,717
and $179,718, respectively) 1,038,321 1,127,350 2,092,318 2,188,844
Maintenance 290,424 222,445 409,399 359,288
General and administrative
(including reimbursements
to affiliates of $20,566,
$20,286, $42,188 and $40,628,
respectively) 35,890 32,209 65,003 63,561
Real estate taxes 551,664 556,004 1,109,390 1,128,966
Management fees to an affiliate 123,316 103,330 266,456 238,124
Depreciation and amortization 837,830 797,863 1,652,256 1,595,038
Interest 1,040,019 1,322,359 1,997,995 2,651,569
Total expenses 3,917,464 4,161,560 7,592,817 8,225,390
Net loss $ (543,219) $ (710,100) $ (871,553) $(1,475,709)
Allocation of net loss (Note 3):
Per Unit of Investor Limited
Partner Interest (35,200 Units
outstanding) $ (15.28) $ (19.97) $ (24.51) $ (41.50)
General Partners $ (5,432) $ (7,101) $ (8,715) $ (14,757)
</TABLE>
The accompanying notes are an integral
part of the financial statements.
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KRUPP REALTY LIMITED PARTNERSHIP-V
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six Months
Ended June 30,
1994 1993
Operating activities:
<S> <C> <C>
Net loss $ (871,553) $(1,475,709)
Adjustments to reconcile net loss to net cash provided
by operating activities:
Depreciation and amortization 1,652,256 1,595,038
Amortization of mortgage premium - (105)
Decrease in cash restricted for tenant
security deposits 40,580 8,771
Decrease (increase) in prepaid expenses and other
assets (88,869) 244,649
Increase (decrease) in accounts payable (18,600) 164,490
Increase in accrued expenses and other liabilities 287,327 890,353
Increase (decrease) in due to affiliates (75,143) 227,446
Net cash provided by operating activities 925,998 1,654,933
Investing activities:
Additions to fixed assets (1,055,188) (351,576)
Decrease (increase) in cash restricted for capital
improvements 397,011 (13,327)
Net cash used for investing activities (658,177) (364,903)
Financing activities:
Principal payments on mortgage notes payable (265,901) (129,113)
Deferred expenses (12,138) -
Net cash used for investing activities (278,039) (129,113)
Net increase (decrease) in cash and cash equivalents (10,218) 1,160,917
Cash and cash equivalents, beginning of period 713,196 4,118,300
Cash and cash equivalents, end of period $ 702,978 $ 5,279,217
</TABLE>
The accompanying notes are an integral
part of the financial statements.
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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 June 30, 1994, its results of operations for the
three and six months ended June 30, 1994 and 1993 and its cash
flows for the six months ended June 30, 1994 and 1993. Certain
prior year balances have been reclassified to conform with the
current period consolidated financial statement presentation.
The results of operations for the three and six months ended
June 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
Amounts paid to affiliates of the General Partners during the
six months ended June 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 six months
ended June 30, 1994 is as follows:
<TABLE>
<CAPTION>
Investor Original Total
Limited Limited General Partners'
Partners Partner Partners Deficit
Balance at
<S> <C> <C> <C> <C>
December 31, 1993 $(7,467,998) $(234,539) $(384,898) $(8,087,435)
Net loss (862,838) - (8,715) (871,553)
Balance at
June 30, 1994 $(8,330,836) $(234,539) $(393,613) $(8,958,988)
</TABLE>
Continued
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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 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 51% complete as
of June 30, 1994. The Partnership anticipates that the restoration
project will be completed on schedule in the fourth quarter of
1994, 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 June 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 is the calculation of Cash Flow for the six months
ended June 30, 1994.
<TABLE>
<CAPTION>
Rounded to $1,000
<S> <C>
Net loss for tax purposes $ (848,000)
Items not requiring (requiring or not providing)
the use of operating funds:
Tax basis depreciation and amortization 1,629,000
Expenditures for capital improvements (1,055,000)
Principal payments on mortgage notes payable (266,000)
Cash Flow Deficit $ (540,000)
</TABLE>
Continued
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KRUPP REALTY LIMITED PARTNERSHIP-V
Operations
Rental revenue increased by $28,000 during the six months ended
June 30, 1994 as compared to June 30, 1993. The increase in
rental revenue is primarily due to an increase in rental rates at
Park Place and Marine Terrace. Interest income for the three and
six months ended June 30, 1994 and 1993 decreased due to the
reduced earnings of short term investments.
Operating expenses for the three and six months ended June 30,
1994 and 1993 remained relatively stable with the exception of
depreciation and interest expenses. Depreciation expense has
increased as a result of the capital improvement program at Park
Place. Interest expense has decreased by approximately $645,000
for the six months ended June 30, 1994 as a result of the
refinancing of Park Place's first mortgage during the third quarter
of 1993.
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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
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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 of The Krupp
Corporation, a General
Partner.
DATE: August 1, 1994
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